FAC Explorer

Audit 322128

FY End
2023-12-31
Total Expended
$3.80M
Findings
2
Programs
1
Organization: International Journalism Defense, Inc. (DC)
Year: 2023 Accepted: 2024-09-30
Auditor: Gelman Rosenberg & Freedman

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499301 2023-001 Significant Deficiency - C
1075743 2023-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
98.001 Usaid Foreign Assistance for Programs Overseas $3.80M Yes 1

Contacts

Name Title Type
QBX4KS79SK55 Deniz Sarkinovic Auditee
3873356004 James Larson Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) wherein certain types of expenditures are not allowable or are limited as to reimbursement. IJD has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of the International Journalism Defense, Inc. (IJD) under programs of the Federal Government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the operations of IJD; accordingly, it is not intended to and does not present the financial position, changes in net assets or cash flows of IJD.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) wherein certain types of expenditures are not allowable or are limited as to reimbursement. IJD has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) wherein certain types of expenditures are not allowable or are limited as to reimbursement. IJD has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001 - Cash Management Information on the Federal Programs: 98.001 Criteria or Specific Requirement: In accordance with §200.305, Federal Payment, for non- Federal entities other than states, payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Specifically, §200.305(b)(1), Federal Payment, indicates: Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. In accordance with the 2023 OMB Compliance Supplement, when the reimbursement payment method is used, program costs must be incurred before submitting a payment request to the Federal awarding agency. Condition: During our testing of advance payments received for major program AL# 98.001, management did not minimize the amount of time between the Federal advance payments and the actual disbursements for direct program expenditures and related indirect costs. Cause: IJD's programmatic and finance teams did not comply with 200.305 in order to establish funds necessary to establish programmatic activities in the first year of operations. Effect or Potential Effect: Failure to perform timely cash management procedures could result in obtaining funds from the U.S. Government in advance of actual expenditures incurred thus resulting in non-compliance with contractual agreements. Questioned Costs: None noted Context: Federal funds were drawn down in excess of actual, immediate cash requirements of the non-Federal entity. Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: We recommend that management be more mindful of the U.S. Government regulations with respect to drawing down Federal funds. Procedures should be developed and implemented to insure that adequate controls are in place around cash management.
Finding 2023-001
Finding 2023-001 - Cash Management Information on the Federal Programs: 98.001 Criteria or Specific Requirement: In accordance with §200.305, Federal Payment, for non- Federal entities other than states, payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Specifically, §200.305(b)(1), Federal Payment, indicates: Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. In accordance with the 2023 OMB Compliance Supplement, when the reimbursement payment method is used, program costs must be incurred before submitting a payment request to the Federal awarding agency. Condition: During our testing of advance payments received for major program AL# 98.001, management did not minimize the amount of time between the Federal advance payments and the actual disbursements for direct program expenditures and related indirect costs. Cause: IJD's programmatic and finance teams did not comply with 200.305 in order to establish funds necessary to establish programmatic activities in the first year of operations. Effect or Potential Effect: Failure to perform timely cash management procedures could result in obtaining funds from the U.S. Government in advance of actual expenditures incurred thus resulting in non-compliance with contractual agreements. Questioned Costs: None noted Context: Federal funds were drawn down in excess of actual, immediate cash requirements of the non-Federal entity. Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: We recommend that management be more mindful of the U.S. Government regulations with respect to drawing down Federal funds. Procedures should be developed and implemented to insure that adequate controls are in place around cash management.