Audit 44660

FY End
2022-03-31
Total Expended
$27.96M
Findings
8
Programs
3
Organization: Alight (MN)
Year: 2022 Accepted: 2022-10-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
44881 2022-001 Significant Deficiency - P
44882 2022-001 Significant Deficiency - P
44883 2022-001 Significant Deficiency - P
44884 2022-001 Significant Deficiency - P
621323 2022-001 Significant Deficiency - P
621324 2022-001 Significant Deficiency - P
621325 2022-001 Significant Deficiency - P
621326 2022-001 Significant Deficiency - P

Programs

Contacts

Name Title Type
MNH6LYJ3DH97 Mark White Auditee
6126076491 Amy Boland Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001: Reporting of Known Embezzlement in Uganda Information on the Federal Program: CFDA 19.517 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Alight was notified of an instance of embezzlement that occurred in Kampala, Uganda. The employees involved in the aforementioned embezzlement were taking bribes from refugees and extorting money. Management of Alight took appropriate action by conducting an investigation and terminating all employees involved in the incident. Cause: Alight did not adequately safeguard its assets. However, Alight's monitoring procedures did detect the embezzlement and they have subsequently enhanced procedures related to petty cash and local payroll control systems. Effect or Potential Effect: After investigation, Alight did not find any evidence that a federal award was affected, but Alight notified USDOS. Questioned Costs: None. Context: Alight failed to properly safeguard all assets. Alight must continue to monitor and ensure that the systems of internal controls throughout its field offices are functioning as designed. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Alight review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of embezzlement.
Finding 2022-001: Reporting of Known Embezzlement in Uganda Information on the Federal Program: CFDA 19.517 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Alight was notified of an instance of embezzlement that occurred in Kampala, Uganda. The employees involved in the aforementioned embezzlement were taking bribes from refugees and extorting money. Management of Alight took appropriate action by conducting an investigation and terminating all employees involved in the incident. Cause: Alight did not adequately safeguard its assets. However, Alight's monitoring procedures did detect the embezzlement and they have subsequently enhanced procedures related to petty cash and local payroll control systems. Effect or Potential Effect: After investigation, Alight did not find any evidence that a federal award was affected, but Alight notified USDOS. Questioned Costs: None. Context: Alight failed to properly safeguard all assets. Alight must continue to monitor and ensure that the systems of internal controls throughout its field offices are functioning as designed. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Alight review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of embezzlement.
Finding 2022-001: Reporting of Known Embezzlement in Uganda Information on the Federal Program: CFDA 19.517 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Alight was notified of an instance of embezzlement that occurred in Kampala, Uganda. The employees involved in the aforementioned embezzlement were taking bribes from refugees and extorting money. Management of Alight took appropriate action by conducting an investigation and terminating all employees involved in the incident. Cause: Alight did not adequately safeguard its assets. However, Alight's monitoring procedures did detect the embezzlement and they have subsequently enhanced procedures related to petty cash and local payroll control systems. Effect or Potential Effect: After investigation, Alight did not find any evidence that a federal award was affected, but Alight notified USDOS. Questioned Costs: None. Context: Alight failed to properly safeguard all assets. Alight must continue to monitor and ensure that the systems of internal controls throughout its field offices are functioning as designed. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Alight review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of embezzlement.
Finding 2022-001: Reporting of Known Embezzlement in Uganda Information on the Federal Program: CFDA 19.517 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Alight was notified of an instance of embezzlement that occurred in Kampala, Uganda. The employees involved in the aforementioned embezzlement were taking bribes from refugees and extorting money. Management of Alight took appropriate action by conducting an investigation and terminating all employees involved in the incident. Cause: Alight did not adequately safeguard its assets. However, Alight's monitoring procedures did detect the embezzlement and they have subsequently enhanced procedures related to petty cash and local payroll control systems. Effect or Potential Effect: After investigation, Alight did not find any evidence that a federal award was affected, but Alight notified USDOS. Questioned Costs: None. Context: Alight failed to properly safeguard all assets. Alight must continue to monitor and ensure that the systems of internal controls throughout its field offices are functioning as designed. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Alight review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of embezzlement.
Finding 2022-001: Reporting of Known Embezzlement in Uganda Information on the Federal Program: CFDA 19.517 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Alight was notified of an instance of embezzlement that occurred in Kampala, Uganda. The employees involved in the aforementioned embezzlement were taking bribes from refugees and extorting money. Management of Alight took appropriate action by conducting an investigation and terminating all employees involved in the incident. Cause: Alight did not adequately safeguard its assets. However, Alight's monitoring procedures did detect the embezzlement and they have subsequently enhanced procedures related to petty cash and local payroll control systems. Effect or Potential Effect: After investigation, Alight did not find any evidence that a federal award was affected, but Alight notified USDOS. Questioned Costs: None. Context: Alight failed to properly safeguard all assets. Alight must continue to monitor and ensure that the systems of internal controls throughout its field offices are functioning as designed. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Alight review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of embezzlement.
Finding 2022-001: Reporting of Known Embezzlement in Uganda Information on the Federal Program: CFDA 19.517 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Alight was notified of an instance of embezzlement that occurred in Kampala, Uganda. The employees involved in the aforementioned embezzlement were taking bribes from refugees and extorting money. Management of Alight took appropriate action by conducting an investigation and terminating all employees involved in the incident. Cause: Alight did not adequately safeguard its assets. However, Alight's monitoring procedures did detect the embezzlement and they have subsequently enhanced procedures related to petty cash and local payroll control systems. Effect or Potential Effect: After investigation, Alight did not find any evidence that a federal award was affected, but Alight notified USDOS. Questioned Costs: None. Context: Alight failed to properly safeguard all assets. Alight must continue to monitor and ensure that the systems of internal controls throughout its field offices are functioning as designed. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Alight review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of embezzlement.
Finding 2022-001: Reporting of Known Embezzlement in Uganda Information on the Federal Program: CFDA 19.517 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Alight was notified of an instance of embezzlement that occurred in Kampala, Uganda. The employees involved in the aforementioned embezzlement were taking bribes from refugees and extorting money. Management of Alight took appropriate action by conducting an investigation and terminating all employees involved in the incident. Cause: Alight did not adequately safeguard its assets. However, Alight's monitoring procedures did detect the embezzlement and they have subsequently enhanced procedures related to petty cash and local payroll control systems. Effect or Potential Effect: After investigation, Alight did not find any evidence that a federal award was affected, but Alight notified USDOS. Questioned Costs: None. Context: Alight failed to properly safeguard all assets. Alight must continue to monitor and ensure that the systems of internal controls throughout its field offices are functioning as designed. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Alight review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of embezzlement.
Finding 2022-001: Reporting of Known Embezzlement in Uganda Information on the Federal Program: CFDA 19.517 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Alight was notified of an instance of embezzlement that occurred in Kampala, Uganda. The employees involved in the aforementioned embezzlement were taking bribes from refugees and extorting money. Management of Alight took appropriate action by conducting an investigation and terminating all employees involved in the incident. Cause: Alight did not adequately safeguard its assets. However, Alight's monitoring procedures did detect the embezzlement and they have subsequently enhanced procedures related to petty cash and local payroll control systems. Effect or Potential Effect: After investigation, Alight did not find any evidence that a federal award was affected, but Alight notified USDOS. Questioned Costs: None. Context: Alight failed to properly safeguard all assets. Alight must continue to monitor and ensure that the systems of internal controls throughout its field offices are functioning as designed. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Alight review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of embezzlement.