Finding Text
Federal Agency: U.S. Department of State
Federal Program Name: International Programs to Support Democracy, Human Rights and Labor Assistance Listing Number: 19.345
Federal Award Identification Number and Year: S-LMAQM21GR3222 - 2021
Award Period: August 21, 2021 through December 31, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable cost. New America should have internal controls designed to ensure compliance with those provisions.
Condition: During our testing, we noted New America did not have adequate internal controls designed to ensure that payroll related allocations were based on the effort and applied consistently each period.
Questioned costs: None
Context: During our testing, it was noted that New America did not apply consistent allocation of paid time off costs to the grant based on the employee’s effort. 1 of the 18 selected allocations had excess cost allocated to the grant. 1 of the 18 selection allocations was missing some of the allocated cost.
Cause: New America employee responsible for review of the paid time off allocations to the grant did not apply the allocation methodology based on effort.
Effect: The auditor noted the lack of internal controls over these compliance requirements provides an opportunity for noncompliance.
Repeat Finding: This is not a repeat finding.
Recommendation: CLA recommends New America implements procedures to ensure payroll related costs are allocated based on time & effort spent/worked in program.
Views of responsible officials: There is no disagreement with the audit finding.