FAC Explorer

Finding 1019534 (2022-007)

- Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 312755
Organization: Plan International Inc. (NY)
Auditor: Pricewaterhousecoopers LLP

AI Summary

  • Core Issue: Lack of documentation showing that journals were reviewed before payments, repeating a previous finding.
  • Impacted Requirements: Control procedures require journal approval prior to payment, which was not consistently followed in 29 of 60 samples, affecting $114,954.
  • Recommended Follow-Up: Plan Ethiopia must adhere to approval processes and maintain clear records to ensure proper segregation of duties in transaction recording.

Finding Text

Ref 2022-007: Insufficient documentation to show journals had been reviewed ahead of the payment being made (repeat of prior year finding 2021-009) (deficiency)Federal Agency: United States Department of StateProgram: Ethiopia: South Sudanese Refugee Assistance V (PRM5) and Ethiopia: South Sudanese Refugee Assistance IV Y2 (PRM4)Assistance Listing: 19.517 (Ethiopia)Award #: SPRMCO21CA3181 and S-PRMCO-20-CA-0047 respectively for EthiopiaAward year: FY22Pass-through: From Plan International USA, Inc.Criteria:Plan?s control procedures require that a journal is signed off and approved ahead of the payment being made.Condition:Plan Ethiopia were unable to provide evidence of journal review within SAP where the transaction is recorded. This is the case for 29 out of 60 of the samples tested across grants PRM4 and PRM5 and the total dollar value impacted is $114,954.This is a control finding relating to segregation of duties not followed when recording transactions in SAP, however, we noted no questioned costs in any of the items above.Cause:Plan Ethiopia is inconsistent with evidencing a reviewer sign off in SAP as they do not have any set guidelines to do this at the country office. The country office should follow the control framework set out in the control matrix by USNO which is for journals to be approved appropriately before being paid. This is unless the country office has their own journal approval process which they follow. These transactions highlighted were approved on payment request form before payment was made to employees/suppliers, however per the policy, the journal should be reviewed before it is posted. Plan Ethiopia explained that due to the nature of the grant being an emergency grant, this is what has caused this control not to be followed on a few occasions.Effect:The control weaknesses could lead to future questioned costs or inaccurate reporting.Recommendation:Plan Ethiopia should ensure that their processes are followed at all times ahead of payments being made, and that a clear audit trail is retained to evidence segregation of duties when recording transactions in their system.Views of Responsible Officials and Management?s Corrective Action Plan:Views of responsible officials and management?s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 443070 2022-004
    Significant Deficiency Repeat
  • 443071 2022-004
    Significant Deficiency Repeat
  • 443072 2022-004
    Significant Deficiency Repeat
  • 443073 2022-004
    Significant Deficiency Repeat
  • 443074 2022-004
    Significant Deficiency Repeat
  • 443075 2022-004
    Significant Deficiency Repeat
  • 443076 2022-004
    Significant Deficiency Repeat
  • 443077 2022-004
    Significant Deficiency Repeat
  • 443078 2022-004
    Significant Deficiency Repeat
  • 443079 2022-004
    Significant Deficiency Repeat
  • 443080 2022-004
    Significant Deficiency Repeat
  • 443081 2022-004
    Significant Deficiency Repeat
  • 443082 2022-004
    Significant Deficiency Repeat
  • 443083 2022-004
    Significant Deficiency Repeat
  • 443084 2022-004
    Significant Deficiency Repeat
  • 443085 2022-004
    Significant Deficiency Repeat
  • 443086 2022-004
    Significant Deficiency Repeat
  • 443087 2022-004
    Significant Deficiency Repeat
  • 443088 2022-004
    Significant Deficiency Repeat
  • 443089 2022-004
    Significant Deficiency Repeat
  • 443090 2022-004
    Significant Deficiency Repeat
  • 443091 2022-004
    Significant Deficiency Repeat
  • 443092 2022-007
    - Repeat
  • 443093 2022-004
    Significant Deficiency Repeat
  • 443094 2022-007
    - Repeat
  • 443095 2022-004
    Significant Deficiency Repeat
  • 443096 2022-004
    Significant Deficiency Repeat
  • 443097 2022-004
    Significant Deficiency Repeat
  • 443098 2022-004
    Significant Deficiency Repeat
  • 443099 2022-004
    Significant Deficiency Repeat
  • 1019512 2022-004
    Significant Deficiency Repeat
  • 1019513 2022-004
    Significant Deficiency Repeat
  • 1019514 2022-004
    Significant Deficiency Repeat
  • 1019515 2022-004
    Significant Deficiency Repeat
  • 1019516 2022-004
    Significant Deficiency Repeat
  • 1019517 2022-004
    Significant Deficiency Repeat
  • 1019518 2022-004
    Significant Deficiency Repeat
  • 1019519 2022-004
    Significant Deficiency Repeat
  • 1019520 2022-004
    Significant Deficiency Repeat
  • 1019521 2022-004
    Significant Deficiency Repeat
  • 1019522 2022-004
    Significant Deficiency Repeat
  • 1019523 2022-004
    Significant Deficiency Repeat
  • 1019524 2022-004
    Significant Deficiency Repeat
  • 1019525 2022-004
    Significant Deficiency Repeat
  • 1019526 2022-004
    Significant Deficiency Repeat
  • 1019527 2022-004
    Significant Deficiency Repeat
  • 1019528 2022-004
    Significant Deficiency Repeat
  • 1019529 2022-004
    Significant Deficiency Repeat
  • 1019530 2022-004
    Significant Deficiency Repeat
  • 1019531 2022-004
    Significant Deficiency Repeat
  • 1019532 2022-004
    Significant Deficiency Repeat
  • 1019533 2022-004
    Significant Deficiency Repeat
  • 1019535 2022-004
    Significant Deficiency Repeat
  • 1019536 2022-007
    - Repeat
  • 1019537 2022-004
    Significant Deficiency Repeat
  • 1019538 2022-004
    Significant Deficiency Repeat
  • 1019539 2022-004
    Significant Deficiency Repeat
  • 1019540 2022-004
    Significant Deficiency Repeat
  • 1019541 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.608 Food for Education $735,856
17.401 International Labor Programs $296,414
98.001 Usaid Foreign Assistance for Programs Overseas $292,881
19.019 International Programs to Combat Human Trafficking $287,783
19.345 International Programs to Support Democracy, Human Rights and Labor $209,886
19.517 Overseas Refugee Assistance Programs for Africa $184,816