FAC Explorer

Audit 344596

FY End
2024-08-31
Total Expended
$1.20M
Findings
4
Programs
2
Organization: Greenheart International (IL)
Year: 2024 Accepted: 2025-03-04
Auditor: Cherry Bekaert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
525518 2024-002 - Yes AB
525519 2024-002 - Yes AB
1101960 2024-002 - Yes AB
1101961 2024-002 - Yes AB

Programs

ALN Program Spent Major Findings
19.415 Professional and Cultural Exchange Programs - Citizen Exchanges $366,330 Yes 1
19.451 Special International Exchange Grant Programs $119,021 - 0

Contacts

Name Title Type
D6DMXJD67LJ5 Matt Roy Auditee
8022245473 John Fedus Auditor
No contacts on file

Notes to SEFA

Title: Note 1—Basis of presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Greenheart International (the “Organization”) for the eight months ended August 31, 2024. 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”). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 3—Sub-recipients Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization provided no federal awards to sub-recipients during the eight months ended August 31, 2024.
Title: Note 4—Nonmonetary assistance Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization neither received nor disbursed federal awards in the form of nonmonetary assistance for the eight months ended August 31, 2024.
Title: Note 5—Insurance and loans or loan guarantees Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. During the eight months ended August 31, 2024, the Organization received no loans, loan guarantees, or other federal assistance for the purpose of administering federal programs.

Finding Details

Finding 2024-002
U.S. Department of State Professional & Cultural Exchange Programs Assistance Listing #19.415 Finding 2024-002 (Repeated 2023-003) Nonmaterial Noncompliance – Allowable Costs/Activities Criteria: The A-102 Common Rule requires that non-Federal entities receiving Federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Adequate segregation of duties provided between performance, review, and recordkeeping of a task is a control activity which will reasonably ensure compliance with Federal laws, regulations, and program requirements. Condition: Management approval could not be readily substantiated for the allocation percentages applied to one employee out of 14 selected for testing. Questioned Costs: None. Effect: By not maintaining adequate and consistent documentation of review and approval of the allocation of employee payroll expense, the Organization may not be able to readily prevent, detect, and correct potential errors in allowable costs/activities. Therefore, the Organization may be incorrectly reimbursed for expenditures under the program requirements. Cause: Current processes do not include maintaining adequate documentation to support review and approval of all personnel expenses charged to the federal program. Recommendation: The Organization should improve policies and procedures to ensure personnel expenses are adequately supported by documentation evidencing the review and approval of personnel expenses charged to the federal program. Management’s Response: See Corrective Action Plan.
Finding 2024-002
U.S. Department of State Professional & Cultural Exchange Programs Assistance Listing #19.415 Finding 2024-002 (Repeated 2023-003) Nonmaterial Noncompliance – Allowable Costs/Activities Criteria: The A-102 Common Rule requires that non-Federal entities receiving Federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Adequate segregation of duties provided between performance, review, and recordkeeping of a task is a control activity which will reasonably ensure compliance with Federal laws, regulations, and program requirements. Condition: Management approval could not be readily substantiated for the allocation percentages applied to one employee out of 14 selected for testing. Questioned Costs: None. Effect: By not maintaining adequate and consistent documentation of review and approval of the allocation of employee payroll expense, the Organization may not be able to readily prevent, detect, and correct potential errors in allowable costs/activities. Therefore, the Organization may be incorrectly reimbursed for expenditures under the program requirements. Cause: Current processes do not include maintaining adequate documentation to support review and approval of all personnel expenses charged to the federal program. Recommendation: The Organization should improve policies and procedures to ensure personnel expenses are adequately supported by documentation evidencing the review and approval of personnel expenses charged to the federal program. Management’s Response: See Corrective Action Plan.
Finding 2024-002
U.S. Department of State Professional & Cultural Exchange Programs Assistance Listing #19.415 Finding 2024-002 (Repeated 2023-003) Nonmaterial Noncompliance – Allowable Costs/Activities Criteria: The A-102 Common Rule requires that non-Federal entities receiving Federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Adequate segregation of duties provided between performance, review, and recordkeeping of a task is a control activity which will reasonably ensure compliance with Federal laws, regulations, and program requirements. Condition: Management approval could not be readily substantiated for the allocation percentages applied to one employee out of 14 selected for testing. Questioned Costs: None. Effect: By not maintaining adequate and consistent documentation of review and approval of the allocation of employee payroll expense, the Organization may not be able to readily prevent, detect, and correct potential errors in allowable costs/activities. Therefore, the Organization may be incorrectly reimbursed for expenditures under the program requirements. Cause: Current processes do not include maintaining adequate documentation to support review and approval of all personnel expenses charged to the federal program. Recommendation: The Organization should improve policies and procedures to ensure personnel expenses are adequately supported by documentation evidencing the review and approval of personnel expenses charged to the federal program. Management’s Response: See Corrective Action Plan.
Finding 2024-002
U.S. Department of State Professional & Cultural Exchange Programs Assistance Listing #19.415 Finding 2024-002 (Repeated 2023-003) Nonmaterial Noncompliance – Allowable Costs/Activities Criteria: The A-102 Common Rule requires that non-Federal entities receiving Federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Adequate segregation of duties provided between performance, review, and recordkeeping of a task is a control activity which will reasonably ensure compliance with Federal laws, regulations, and program requirements. Condition: Management approval could not be readily substantiated for the allocation percentages applied to one employee out of 14 selected for testing. Questioned Costs: None. Effect: By not maintaining adequate and consistent documentation of review and approval of the allocation of employee payroll expense, the Organization may not be able to readily prevent, detect, and correct potential errors in allowable costs/activities. Therefore, the Organization may be incorrectly reimbursed for expenditures under the program requirements. Cause: Current processes do not include maintaining adequate documentation to support review and approval of all personnel expenses charged to the federal program. Recommendation: The Organization should improve policies and procedures to ensure personnel expenses are adequately supported by documentation evidencing the review and approval of personnel expenses charged to the federal program. Management’s Response: See Corrective Action Plan.