Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Federal Agency: Department of Treasury Assistance Listing Number and Title: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Funding Year(s): 2023-2026 Criteria: Per 2 CFR §200, Subpart E, charges to Federal awards must be adequately documented and incurred during the approved budget period, amongst other factors. Per 2 CFR §200.430(i), Compensation - personal services, Standards for Documentation of Personnel Expenses, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Among other requirements, these records must: • Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; • Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; • Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis; and • Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that the award recipient’s system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates, and that all necessary adjustments be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition: For this program, there was no evidence that actual employee time was tracked, reviewed and approved, or that the actual time spent was used as a basis for allocating personnel charges to the grant. In addition, there was no evidence that actual incurred expenditures were used as a basis for allocating indirect costs to the grant using the negotiated indirect cost rate. Questioned Costs: $132,823 (total employee salaries, wages and benefits charged to the program) and $40,427 (total indirect costs charged to the program in excess of actual incurred expenditures to the program) Context: For our direct labor and indirect costs allowable costs samples, Army management indicated that all 7 direct labor expenditure selections totaling $13,819 and indirect costs of $79,252 were allocated to the program based on budgeted percentages. Army management also indicated that there was no evidence that a subsequent review of budget estimates was performed for all of the selections. Cause: Current policies and procedures do not require documented timekeeping by employees working on the grant program, which is appropriately reviewed, approved and used as a basis for charges to the grant. Effect: Personnel and indirect costs charged to federal awards without appropriate documentation may be subject to disallowance. Repeat Finding: Yes – Finding 2022-02. Recommendation: Policies and procedures should be implemented to ensure that employee timekeeping, the salary and wage allocations to the grant, and allocation of indirect costs are charged to the grant using an appropriate base, are appropriately documented and accurately reflect the work performed. Views of Responsible Officials: Management notes the details of this finding and the resulting material weakness. Management will enact processes outlined in our Corrective Action Plan to correct this deficiency in the future.
Federal Agency: Department of Treasury Assistance Listing Number and Title: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Funding Year(s): 2023-2026 Criteria: Per 2 CFR §200, Subpart E, charges to Federal awards must be adequately documented and incurred during the approved budget period, amongst other factors. Per 2 CFR §200.430(i), Compensation - personal services, Standards for Documentation of Personnel Expenses, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Among other requirements, these records must: • Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; • Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; • Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis; and • Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that the award recipient’s system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates, and that all necessary adjustments be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition: For this program, there was no evidence that actual employee time was tracked, reviewed and approved, or that the actual time spent was used as a basis for allocating personnel charges to the grant. In addition, there was no evidence that actual incurred expenditures were used as a basis for allocating indirect costs to the grant using the negotiated indirect cost rate. Questioned Costs: $132,823 (total employee salaries, wages and benefits charged to the program) and $40,427 (total indirect costs charged to the program in excess of actual incurred expenditures to the program) Context: For our direct labor and indirect costs allowable costs samples, Army management indicated that all 7 direct labor expenditure selections totaling $13,819 and indirect costs of $79,252 were allocated to the program based on budgeted percentages. Army management also indicated that there was no evidence that a subsequent review of budget estimates was performed for all of the selections. Cause: Current policies and procedures do not require documented timekeeping by employees working on the grant program, which is appropriately reviewed, approved and used as a basis for charges to the grant. Effect: Personnel and indirect costs charged to federal awards without appropriate documentation may be subject to disallowance. Repeat Finding: Yes – Finding 2022-02. Recommendation: Policies and procedures should be implemented to ensure that employee timekeeping, the salary and wage allocations to the grant, and allocation of indirect costs are charged to the grant using an appropriate base, are appropriately documented and accurately reflect the work performed. Views of Responsible Officials: Management notes the details of this finding and the resulting material weakness. Management will enact processes outlined in our Corrective Action Plan to correct this deficiency in the future.
Finding 2023-003: Time Tracking and Reporting Information on the Federal Programs: 19.517 and 98.001 Criteria or Specific Requirement: According to 2 CFR Section 200.430(i) charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; VI. [Reserved] VII. Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. VIII.Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.”Condition: During our testwork, we determined that CVT did not adequately document employee time spent on each Federal program when multiple Federal programs were in process in one location. Cause: Federal awards that are run concurrently within the same location are generally for the same over-all program objective. Employees are not able to consistently record time spent on each particular Federal award within their timesheets. As a result, allocations of time made in the general ledger do not always reflect what is recorded on the timesheet. Effect or Potential Effect: CVT could inadvertently charge time to the Federal award that was not truly spent working on the Federal award. This could result in the Federal Government over-paying for salaries associated with the award. Questioned Costs: None noted. Context: We noted that employees selected for testing did not always have completed and detailed timesheets outlining hours spent working on various awards that are run in the same location. Additionally, we noted instances in which completed timesheets did not agree to final allocation in the accounting system. Identification as a Repeat Finding: 2022-002 and 2022-003 Recommendation: We recommend that management should develop appropriate documentation to support when an employee charges a program that is funded by various donors. A consistent and reasonably methodology which may be based on awards budgets should be the basis of the ending allocation.
Finding 2023-003: Time Tracking and Reporting Information on the Federal Programs: 19.517 and 98.001 Criteria or Specific Requirement: According to 2 CFR Section 200.430(i) charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; VI. [Reserved] VII. Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. VIII.Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.”Condition: During our testwork, we determined that CVT did not adequately document employee time spent on each Federal program when multiple Federal programs were in process in one location. Cause: Federal awards that are run concurrently within the same location are generally for the same over-all program objective. Employees are not able to consistently record time spent on each particular Federal award within their timesheets. As a result, allocations of time made in the general ledger do not always reflect what is recorded on the timesheet. Effect or Potential Effect: CVT could inadvertently charge time to the Federal award that was not truly spent working on the Federal award. This could result in the Federal Government over-paying for salaries associated with the award. Questioned Costs: None noted. Context: We noted that employees selected for testing did not always have completed and detailed timesheets outlining hours spent working on various awards that are run in the same location. Additionally, we noted instances in which completed timesheets did not agree to final allocation in the accounting system. Identification as a Repeat Finding: 2022-002 and 2022-003 Recommendation: We recommend that management should develop appropriate documentation to support when an employee charges a program that is funded by various donors. A consistent and reasonably methodology which may be based on awards budgets should be the basis of the ending allocation.
Finding 2023-003: Time Tracking and Reporting Information on the Federal Programs: 19.517 and 98.001 Criteria or Specific Requirement: According to 2 CFR Section 200.430(i) charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; VI. [Reserved] VII. Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. VIII.Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.”Condition: During our testwork, we determined that CVT did not adequately document employee time spent on each Federal program when multiple Federal programs were in process in one location. Cause: Federal awards that are run concurrently within the same location are generally for the same over-all program objective. Employees are not able to consistently record time spent on each particular Federal award within their timesheets. As a result, allocations of time made in the general ledger do not always reflect what is recorded on the timesheet. Effect or Potential Effect: CVT could inadvertently charge time to the Federal award that was not truly spent working on the Federal award. This could result in the Federal Government over-paying for salaries associated with the award. Questioned Costs: None noted. Context: We noted that employees selected for testing did not always have completed and detailed timesheets outlining hours spent working on various awards that are run in the same location. Additionally, we noted instances in which completed timesheets did not agree to final allocation in the accounting system. Identification as a Repeat Finding: 2022-002 and 2022-003 Recommendation: We recommend that management should develop appropriate documentation to support when an employee charges a program that is funded by various donors. A consistent and reasonably methodology which may be based on awards budgets should be the basis of the ending allocation.
Finding 2023-003: Time Tracking and Reporting Information on the Federal Programs: 19.517 and 98.001 Criteria or Specific Requirement: According to 2 CFR Section 200.430(i) charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; VI. [Reserved] VII. Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. VIII.Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.”Condition: During our testwork, we determined that CVT did not adequately document employee time spent on each Federal program when multiple Federal programs were in process in one location. Cause: Federal awards that are run concurrently within the same location are generally for the same over-all program objective. Employees are not able to consistently record time spent on each particular Federal award within their timesheets. As a result, allocations of time made in the general ledger do not always reflect what is recorded on the timesheet. Effect or Potential Effect: CVT could inadvertently charge time to the Federal award that was not truly spent working on the Federal award. This could result in the Federal Government over-paying for salaries associated with the award. Questioned Costs: None noted. Context: We noted that employees selected for testing did not always have completed and detailed timesheets outlining hours spent working on various awards that are run in the same location. Additionally, we noted instances in which completed timesheets did not agree to final allocation in the accounting system. Identification as a Repeat Finding: 2022-002 and 2022-003 Recommendation: We recommend that management should develop appropriate documentation to support when an employee charges a program that is funded by various donors. A consistent and reasonably methodology which may be based on awards budgets should be the basis of the ending allocation.
Finding 2023-003: Time Tracking and Reporting Information on the Federal Programs: 19.517 and 98.001 Criteria or Specific Requirement: According to 2 CFR Section 200.430(i) charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; VI. [Reserved] VII. Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. VIII.Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.”Condition: During our testwork, we determined that CVT did not adequately document employee time spent on each Federal program when multiple Federal programs were in process in one location. Cause: Federal awards that are run concurrently within the same location are generally for the same over-all program objective. Employees are not able to consistently record time spent on each particular Federal award within their timesheets. As a result, allocations of time made in the general ledger do not always reflect what is recorded on the timesheet. Effect or Potential Effect: CVT could inadvertently charge time to the Federal award that was not truly spent working on the Federal award. This could result in the Federal Government over-paying for salaries associated with the award. Questioned Costs: None noted. Context: We noted that employees selected for testing did not always have completed and detailed timesheets outlining hours spent working on various awards that are run in the same location. Additionally, we noted instances in which completed timesheets did not agree to final allocation in the accounting system. Identification as a Repeat Finding: 2022-002 and 2022-003 Recommendation: We recommend that management should develop appropriate documentation to support when an employee charges a program that is funded by various donors. A consistent and reasonably methodology which may be based on awards budgets should be the basis of the ending allocation.
Finding 2023-003: Time Tracking and Reporting Information on the Federal Programs: 19.517 and 98.001 Criteria or Specific Requirement: According to 2 CFR Section 200.430(i) charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; VI. [Reserved] VII. Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. VIII.Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.”Condition: During our testwork, we determined that CVT did not adequately document employee time spent on each Federal program when multiple Federal programs were in process in one location. Cause: Federal awards that are run concurrently within the same location are generally for the same over-all program objective. Employees are not able to consistently record time spent on each particular Federal award within their timesheets. As a result, allocations of time made in the general ledger do not always reflect what is recorded on the timesheet. Effect or Potential Effect: CVT could inadvertently charge time to the Federal award that was not truly spent working on the Federal award. This could result in the Federal Government over-paying for salaries associated with the award. Questioned Costs: None noted. Context: We noted that employees selected for testing did not always have completed and detailed timesheets outlining hours spent working on various awards that are run in the same location. Additionally, we noted instances in which completed timesheets did not agree to final allocation in the accounting system. Identification as a Repeat Finding: 2022-002 and 2022-003 Recommendation: We recommend that management should develop appropriate documentation to support when an employee charges a program that is funded by various donors. A consistent and reasonably methodology which may be based on awards budgets should be the basis of the ending allocation.
Finding 2023-003: Time Tracking and Reporting Information on the Federal Programs: 19.517 and 98.001 Criteria or Specific Requirement: According to 2 CFR Section 200.430(i) charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; VI. [Reserved] VII. Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. VIII.Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.”Condition: During our testwork, we determined that CVT did not adequately document employee time spent on each Federal program when multiple Federal programs were in process in one location. Cause: Federal awards that are run concurrently within the same location are generally for the same over-all program objective. Employees are not able to consistently record time spent on each particular Federal award within their timesheets. As a result, allocations of time made in the general ledger do not always reflect what is recorded on the timesheet. Effect or Potential Effect: CVT could inadvertently charge time to the Federal award that was not truly spent working on the Federal award. This could result in the Federal Government over-paying for salaries associated with the award. Questioned Costs: None noted. Context: We noted that employees selected for testing did not always have completed and detailed timesheets outlining hours spent working on various awards that are run in the same location. Additionally, we noted instances in which completed timesheets did not agree to final allocation in the accounting system. Identification as a Repeat Finding: 2022-002 and 2022-003 Recommendation: We recommend that management should develop appropriate documentation to support when an employee charges a program that is funded by various donors. A consistent and reasonably methodology which may be based on awards budgets should be the basis of the ending allocation.
Finding 2023-003: Time Tracking and Reporting Information on the Federal Programs: 19.517 and 98.001 Criteria or Specific Requirement: According to 2 CFR Section 200.430(i) charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; VI. [Reserved] VII. Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. VIII.Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards.”Condition: During our testwork, we determined that CVT did not adequately document employee time spent on each Federal program when multiple Federal programs were in process in one location. Cause: Federal awards that are run concurrently within the same location are generally for the same over-all program objective. Employees are not able to consistently record time spent on each particular Federal award within their timesheets. As a result, allocations of time made in the general ledger do not always reflect what is recorded on the timesheet. Effect or Potential Effect: CVT could inadvertently charge time to the Federal award that was not truly spent working on the Federal award. This could result in the Federal Government over-paying for salaries associated with the award. Questioned Costs: None noted. Context: We noted that employees selected for testing did not always have completed and detailed timesheets outlining hours spent working on various awards that are run in the same location. Additionally, we noted instances in which completed timesheets did not agree to final allocation in the accounting system. Identification as a Repeat Finding: 2022-002 and 2022-003 Recommendation: We recommend that management should develop appropriate documentation to support when an employee charges a program that is funded by various donors. A consistent and reasonably methodology which may be based on awards budgets should be the basis of the ending allocation.
Budgeted personnel costs charged to program instead actual costs (significant deficiency) Cluster: Not applicable Sponsoring Agency : U.S. Department of Housing and Urban Development Award Name: Community Development Block Grants/State's Program and Non-entitlement Grants in Hawaii Award Number: B-20-DW-25-0001 Assistance Listing Number: 14.228 Award Year: FY 2021 Pass-through entity: Massachusetts Department of Housing and Community Development Criteria: "According to 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities (for IHE, this per the IHE's definition of IBS); (iv) Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; (v) Comply with the established accounting policies and practices of the non-Federal entity; and (vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity." Condition: The Organization allocates payroll to grants based on budgeted time and effort. During our testing, we noted that 100% of the Director of Grants Management & Compliance's salary was allocated to the program without a timesheet or other equivalent documentation that support this allocation. Cause: The Organization does not have updated polices/procedures and sufficient internal controls in place over compliance of time and effort. Effect: Payroll charges allocated to grants based on budgeted time and effort can result in federal reimbursements that are not reflective of actual time and effort working on a grant. Payroll costs may be overcharged to the grant. Questioned Cost: Undetermined Recommendation: We recommend that policies and procedures be implemented to ensure payroll costs are charged to grants based on actual costs. We recommend the Organization start using timesheets or other equivalent documentation to ensure payroll costs charged to federal programs are based on records of actual work performed. Such records should be reviewed and certified by the employee and supervisor prior allocation of payroll costs. Management's Views and Corrective Action Plan: Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Finding 2023-002 Material weakness in internal controls over compliance and instances of noncompliance related to allowable costs. Federal Agency: Department of Health and Human Services Program Title: National Organizations of State and Local Officials; Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement Assistance Listing Number: 93.011; 93.912 Award Numbers: 1 G32HS42592-01-00; 4 GA1RH39546-01-07 Award Period: July 31, 2021 - July 31, 2023; September 1, 2020 - August 31, 2024 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Subpart E section 2 CFR 200.430(i)(1)(iii) (as codified by the Department of Health and Human Services [DHHS] in 45 CFR 75) requires direct costs be allocated based on the proportional benefit received by each award. Condition/Context for Evaluation In a population of 25 payroll costs, we noted 17 instances in which the amount allocated to the award was adjusted up or down based on a standard 86.67-hour period instead of the true calculated percentage. The adjustment was not applied equitably to all hours during the period, but only to the program with the largest total hours for the period. This resulted in five instances of overcharge to the award and 12 instances of undercharge to the award. Questioned Costs $265 Cause Due to a systematic error in the payroll system, the adjustments to employee hours were not adjusted equitably to all payroll hours, but instead applied to the program with the largest amount of hours. This resulted in systematic errors in the allocation of payroll compared the true proportional benefit received by each award with an undercharge in some instances and an overcharge in other instances compared to what the actual allocation percentage would have charged. Effect or Potential Effect The Organization did not have sufficient internal controls in place to ensure proper payroll system design and to review allocated costs for accuracy. Repeat Finding Yes. 2022-04 Recommendation We recommend that the Organization implement internal controls over payroll costs charged to awards to ensure they are properly calculated and allocated in accordance with 2 CFR 200.430(i)(1)(iii). Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying corrective action plan.
Finding 2023-002 Material weakness in internal controls over compliance and instances of noncompliance related to allowable costs. Federal Agency: Department of Health and Human Services Program Title: National Organizations of State and Local Officials; Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement Assistance Listing Number: 93.011; 93.912 Award Numbers: 1 G32HS42592-01-00; 4 GA1RH39546-01-07 Award Period: July 31, 2021 - July 31, 2023; September 1, 2020 - August 31, 2024 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Subpart E section 2 CFR 200.430(i)(1)(iii) (as codified by the Department of Health and Human Services [DHHS] in 45 CFR 75) requires direct costs be allocated based on the proportional benefit received by each award. Condition/Context for Evaluation In a population of 25 payroll costs, we noted 17 instances in which the amount allocated to the award was adjusted up or down based on a standard 86.67-hour period instead of the true calculated percentage. The adjustment was not applied equitably to all hours during the period, but only to the program with the largest total hours for the period. This resulted in five instances of overcharge to the award and 12 instances of undercharge to the award. Questioned Costs $265 Cause Due to a systematic error in the payroll system, the adjustments to employee hours were not adjusted equitably to all payroll hours, but instead applied to the program with the largest amount of hours. This resulted in systematic errors in the allocation of payroll compared the true proportional benefit received by each award with an undercharge in some instances and an overcharge in other instances compared to what the actual allocation percentage would have charged. Effect or Potential Effect The Organization did not have sufficient internal controls in place to ensure proper payroll system design and to review allocated costs for accuracy. Repeat Finding Yes. 2022-04 Recommendation We recommend that the Organization implement internal controls over payroll costs charged to awards to ensure they are properly calculated and allocated in accordance with 2 CFR 200.430(i)(1)(iii). Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying corrective action plan.
Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), 2 CFR 200.430(i) outlines the standards for documenting personnel expenses. The current standards require that the distribution of an employee's salary or wages among specific activities or cost objectives must be supported by adequate documentation if the employee works on more than one federal award or a federal award and a non-federal award. While testing payroll expenditures coded to the Education Stabilization Fund, four instances were noted in which an employee's salary was allocated to the Education Stabilization Fund and to other programs, but no time and effort reports or other documentation were provided to document the time the employee spent working on a specific program. Controls were not in place to ensure that the Board maintained time and effort reports or other adequate documentation that supported the distribution of employees' salaries to the Education Stabilization Fund. As a result, the Board is not in compliance with Uniform Guidance as it pertains to the documentation required for personnel expenses charged to the Education Stabilization Fund.
Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), 2 CFR 200.430(i) outlines the standards for documenting personnel expenses. The current standards require that the distribution of an employee's salary or wages among specific activities or cost objectives must be supported by adequate documentation if the employee works on more than one federal award or a federal award and a non-federal award. While testing payroll expenditures coded to the Education Stabilization Fund, four instances were noted in which an employee's salary was allocated to the Education Stabilization Fund and to other programs, but no time and effort reports or other documentation were provided to document the time the employee spent working on a specific program. Controls were not in place to ensure that the Board maintained time and effort reports or other adequate documentation that supported the distribution of employees' salaries to the Education Stabilization Fund. As a result, the Board is not in compliance with Uniform Guidance as it pertains to the documentation required for personnel expenses charged to the Education Stabilization Fund.