FAC Explorer

Audit 358064

FY End
2023-12-31
Total Expended
$2.22M
Findings
14
Programs
4
Organization: Global Fund to End Modern Slavery (DC)
Year: 2023 Accepted: 2025-06-04
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
563840 2023-002 Significant Deficiency Yes L
563841 2023-004 Significant Deficiency - B
563842 2023-002 Significant Deficiency Yes L
563843 2023-004 Significant Deficiency - B
563844 2023-002 Significant Deficiency Yes L
563845 2023-003 Significant Deficiency - L
563846 2023-004 Significant Deficiency - B
1140282 2023-002 Significant Deficiency Yes L
1140283 2023-004 Significant Deficiency - B
1140284 2023-002 Significant Deficiency Yes L
1140285 2023-004 Significant Deficiency - B
1140286 2023-002 Significant Deficiency Yes L
1140287 2023-003 Significant Deficiency - L
1140288 2023-004 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
19.019 Program to End Modern Slavery (pems5) $2.01M Yes 2
19.019 Combat Trafficking in Person $152,021 Yes 3
17.041 Supply Chains Tracing Project $30,363 - 0
19.019 Program to End Modern Slavery (pems2) $26,247 Yes 2

Contacts

Name Title Type
RJNBPL8T6HK3 Randy Willard Auditee
4107339113 John Griffin Auditor
No contacts on file

Notes to SEFA

Title: Basis of Preparation Accounting Policies: The accompanying Schedule of Expenditures of federal awards (the Schedule) includes the federal grant activity of the Global Fund to End Modern Slavery (the Fund) 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 (CFR) 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 operation of the Fund, it is not intended to and does not present the financial position, change in net assets or cash flows of the Fund. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: Y Rate Explanation: The Fund has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of federal awards (the Schedule) includes the federal grant activity of the Global Fund to End Modern Slavery (the Fund) 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 (CFR) 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 operation of the Fund, it is not intended to and does not present the financial position, change in net assets or cash flows of the Fund. The Fund receives funding from the Department of State through cooperative agreements. The Fund receives advances under these agreements through the Payment Management System, which is a financial management service for the Department of Health and Human Services.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of federal awards (the Schedule) includes the federal grant activity of the Global Fund to End Modern Slavery (the Fund) 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 (CFR) 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 operation of the Fund, it is not intended to and does not present the financial position, change in net assets or cash flows of the Fund. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: Y Rate Explanation: The Fund has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Finding Details

Finding 2023-002
2023-002 Submission of Data Collection Form Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.512(a) Report Submission - General, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended December 31, 2023, was not filed by the deadline of September 30, 2024 to the Federal Audit Clearinghouse. Cause: Due to turnover and reduction in staff, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect or Potential Effect: The reporting package and data collection form for the year ended December 31, 2023, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None Context: The reporting package and data collection form for the year ended December 31, 2023 will be submitted to the Federal Audit Clearinghouse after the due date of September 30, 2024. Repeat Finding: This is a repeat finding. Recommendation: We recommend the Fund continue refining policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-004
2023-004 – Allowable Costs Relating to Time and Effort and Internal Controls Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.430.8(i), charges to federal awards for salaries and wages must be based on records that reflect the actual work performed. The charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and must be incorporated into the official records of the non-Federal entity. Condition: For four salary transactions tested, the Fund could not provide supporting salary allocation schedules for charges made to the Federal awards. Cause: While the Fund has procedures and controls in place over payroll processing, the Fund was unable to provide the payroll cost allocation spreadsheet for two months during 2023. Effect or Potential Effect: Charges to Federal awards for salaries and wages may not reflect accurate time worked. Questioned Costs: None Context: We selected 10 salary transactions charged to the federal programs to test controls over allowable costs. For four out of 10 transactions tested, the cost allocation spreadsheet was not available for review. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Fund consistently enforce its internal controls over payroll processing and ensure that salary allocation schedules are completed and saved. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-002
2023-002 Submission of Data Collection Form Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.512(a) Report Submission - General, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended December 31, 2023, was not filed by the deadline of September 30, 2024 to the Federal Audit Clearinghouse. Cause: Due to turnover and reduction in staff, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect or Potential Effect: The reporting package and data collection form for the year ended December 31, 2023, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None Context: The reporting package and data collection form for the year ended December 31, 2023 will be submitted to the Federal Audit Clearinghouse after the due date of September 30, 2024. Repeat Finding: This is a repeat finding. Recommendation: We recommend the Fund continue refining policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-004
2023-004 – Allowable Costs Relating to Time and Effort and Internal Controls Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.430.8(i), charges to federal awards for salaries and wages must be based on records that reflect the actual work performed. The charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and must be incorporated into the official records of the non-Federal entity. Condition: For four salary transactions tested, the Fund could not provide supporting salary allocation schedules for charges made to the Federal awards. Cause: While the Fund has procedures and controls in place over payroll processing, the Fund was unable to provide the payroll cost allocation spreadsheet for two months during 2023. Effect or Potential Effect: Charges to Federal awards for salaries and wages may not reflect accurate time worked. Questioned Costs: None Context: We selected 10 salary transactions charged to the federal programs to test controls over allowable costs. For four out of 10 transactions tested, the cost allocation spreadsheet was not available for review. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Fund consistently enforce its internal controls over payroll processing and ensure that salary allocation schedules are completed and saved. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-002
2023-002 Submission of Data Collection Form Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.512(a) Report Submission - General, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended December 31, 2023, was not filed by the deadline of September 30, 2024 to the Federal Audit Clearinghouse. Cause: Due to turnover and reduction in staff, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect or Potential Effect: The reporting package and data collection form for the year ended December 31, 2023, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None Context: The reporting package and data collection form for the year ended December 31, 2023 will be submitted to the Federal Audit Clearinghouse after the due date of September 30, 2024. Repeat Finding: This is a repeat finding. Recommendation: We recommend the Fund continue refining policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-003
2023-003 - Reporting Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-20-CA-0026 Grant Award Period: July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (the Schedule) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502, Basis for determining Federal awards expended”. The schedule must provide total Federal awards expended for each individual Federal program. Condition: During our review of grant agreements, we noted one Federal subaward that was improperly excluded from the original Schedule. This resulted in an understatement of total Federal awards expended as presented on the Schedule. Cause: The Fund experienced staffing constraints during the year-end closing and financial reporting time period, which limited management’s ability to prepare a complete Schedule. Effect or Potential Effect: The original Schedule provided excluded federal expenditures totaling $152,021 and as a result, the Schedule was not properly stated. Adjustments were recorded and approved by the Fund’s management for presentation in this report. Questioned Costs: None Context: Per review of the Fund’s grant agreements, we identified one grant that was improperly excluded from the Schedule. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Fund strengthen policies and procedures to ensure that all Federal awards and related expenses are reported accurately on the schedule of expenditures of federal awards. We recommend that individuals responsible for administering Federal programs within the Fund obtain training related to Federal grant requirements. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-004
2023-004 – Allowable Costs Relating to Time and Effort and Internal Controls Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.430.8(i), charges to federal awards for salaries and wages must be based on records that reflect the actual work performed. The charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and must be incorporated into the official records of the non-Federal entity. Condition: For four salary transactions tested, the Fund could not provide supporting salary allocation schedules for charges made to the Federal awards. Cause: While the Fund has procedures and controls in place over payroll processing, the Fund was unable to provide the payroll cost allocation spreadsheet for two months during 2023. Effect or Potential Effect: Charges to Federal awards for salaries and wages may not reflect accurate time worked. Questioned Costs: None Context: We selected 10 salary transactions charged to the federal programs to test controls over allowable costs. For four out of 10 transactions tested, the cost allocation spreadsheet was not available for review. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Fund consistently enforce its internal controls over payroll processing and ensure that salary allocation schedules are completed and saved. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-002
2023-002 Submission of Data Collection Form Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.512(a) Report Submission - General, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended December 31, 2023, was not filed by the deadline of September 30, 2024 to the Federal Audit Clearinghouse. Cause: Due to turnover and reduction in staff, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect or Potential Effect: The reporting package and data collection form for the year ended December 31, 2023, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None Context: The reporting package and data collection form for the year ended December 31, 2023 will be submitted to the Federal Audit Clearinghouse after the due date of September 30, 2024. Repeat Finding: This is a repeat finding. Recommendation: We recommend the Fund continue refining policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-004
2023-004 – Allowable Costs Relating to Time and Effort and Internal Controls Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.430.8(i), charges to federal awards for salaries and wages must be based on records that reflect the actual work performed. The charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and must be incorporated into the official records of the non-Federal entity. Condition: For four salary transactions tested, the Fund could not provide supporting salary allocation schedules for charges made to the Federal awards. Cause: While the Fund has procedures and controls in place over payroll processing, the Fund was unable to provide the payroll cost allocation spreadsheet for two months during 2023. Effect or Potential Effect: Charges to Federal awards for salaries and wages may not reflect accurate time worked. Questioned Costs: None Context: We selected 10 salary transactions charged to the federal programs to test controls over allowable costs. For four out of 10 transactions tested, the cost allocation spreadsheet was not available for review. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Fund consistently enforce its internal controls over payroll processing and ensure that salary allocation schedules are completed and saved. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-002
2023-002 Submission of Data Collection Form Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.512(a) Report Submission - General, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended December 31, 2023, was not filed by the deadline of September 30, 2024 to the Federal Audit Clearinghouse. Cause: Due to turnover and reduction in staff, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect or Potential Effect: The reporting package and data collection form for the year ended December 31, 2023, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None Context: The reporting package and data collection form for the year ended December 31, 2023 will be submitted to the Federal Audit Clearinghouse after the due date of September 30, 2024. Repeat Finding: This is a repeat finding. Recommendation: We recommend the Fund continue refining policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-004
2023-004 – Allowable Costs Relating to Time and Effort and Internal Controls Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.430.8(i), charges to federal awards for salaries and wages must be based on records that reflect the actual work performed. The charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and must be incorporated into the official records of the non-Federal entity. Condition: For four salary transactions tested, the Fund could not provide supporting salary allocation schedules for charges made to the Federal awards. Cause: While the Fund has procedures and controls in place over payroll processing, the Fund was unable to provide the payroll cost allocation spreadsheet for two months during 2023. Effect or Potential Effect: Charges to Federal awards for salaries and wages may not reflect accurate time worked. Questioned Costs: None Context: We selected 10 salary transactions charged to the federal programs to test controls over allowable costs. For four out of 10 transactions tested, the cost allocation spreadsheet was not available for review. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Fund consistently enforce its internal controls over payroll processing and ensure that salary allocation schedules are completed and saved. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-002
2023-002 Submission of Data Collection Form Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.512(a) Report Submission - General, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended December 31, 2023, was not filed by the deadline of September 30, 2024 to the Federal Audit Clearinghouse. Cause: Due to turnover and reduction in staff, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect or Potential Effect: The reporting package and data collection form for the year ended December 31, 2023, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None Context: The reporting package and data collection form for the year ended December 31, 2023 will be submitted to the Federal Audit Clearinghouse after the due date of September 30, 2024. Repeat Finding: This is a repeat finding. Recommendation: We recommend the Fund continue refining policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-003
2023-003 - Reporting Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-20-CA-0026 Grant Award Period: July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (the Schedule) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502, Basis for determining Federal awards expended”. The schedule must provide total Federal awards expended for each individual Federal program. Condition: During our review of grant agreements, we noted one Federal subaward that was improperly excluded from the original Schedule. This resulted in an understatement of total Federal awards expended as presented on the Schedule. Cause: The Fund experienced staffing constraints during the year-end closing and financial reporting time period, which limited management’s ability to prepare a complete Schedule. Effect or Potential Effect: The original Schedule provided excluded federal expenditures totaling $152,021 and as a result, the Schedule was not properly stated. Adjustments were recorded and approved by the Fund’s management for presentation in this report. Questioned Costs: None Context: Per review of the Fund’s grant agreements, we identified one grant that was improperly excluded from the Schedule. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Fund strengthen policies and procedures to ensure that all Federal awards and related expenses are reported accurately on the schedule of expenditures of federal awards. We recommend that individuals responsible for administering Federal programs within the Fund obtain training related to Federal grant requirements. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2023-004
2023-004 – Allowable Costs Relating to Time and Effort and Internal Controls Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026 Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023 Criteria or Specific Requirement: In accordance with 2 CFR Section 200.430.8(i), charges to federal awards for salaries and wages must be based on records that reflect the actual work performed. The charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and must be incorporated into the official records of the non-Federal entity. Condition: For four salary transactions tested, the Fund could not provide supporting salary allocation schedules for charges made to the Federal awards. Cause: While the Fund has procedures and controls in place over payroll processing, the Fund was unable to provide the payroll cost allocation spreadsheet for two months during 2023. Effect or Potential Effect: Charges to Federal awards for salaries and wages may not reflect accurate time worked. Questioned Costs: None Context: We selected 10 salary transactions charged to the federal programs to test controls over allowable costs. For four out of 10 transactions tested, the cost allocation spreadsheet was not available for review. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Fund consistently enforce its internal controls over payroll processing and ensure that salary allocation schedules are completed and saved. View of Responsible Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.