Finding 1155246 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-25
Audit: 367468
Organization: Givedirectly, INC (NY)
Auditor: Cbiz CPAS PC

AI Summary

  • Core Issue: GiveDirectly failed to include two federal awards on the Schedule of Expenditures of Federal Awards (SEFA), leading to an understatement of $2,707,604.
  • Impacted Requirements: Federal awards must accurately reflect expenditures in the SEFA for compliance with U.S. Department of Health and Human Services guidelines.
  • Recommended Follow-Up: Enhance internal controls to ensure thorough review and completeness of the SEFA moving forward.

Finding Text

Finding No. 2024-002: Improper Preparation of the Schedule of Expenditures of Federal Awards – Material Weakness in Internal Control over Compliance Agency U.S. Department of Health and Human Services ALN 93.558 Federal Award Identification Number RC116558 – GD and RC117294 - GD Criteria Federal awards that identify an Assistance Listing Number (ALN) must record expenditures related to the awards and included on the Schedule of Expenditures of Federal Awards (SEFA) in the year that GiveDirectly incurred the eligible expenditures. Condition The organization did not properly identify two awards that should have been included on the SEFA. Cause Internal controls were not designed effectively to ensure that the SEFA was complete. Effect The SEFA was understated by $2,707,604 which could impact major program determinations and required coverage to be tested. Recommendation We recommend that GiveDirectly enhance its internal controls related to the review of completeness to ensure that the SEFA is complete. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Corrective Action Plan

Recommendation We recommend that GiveDirectly enhance its internal controls related to the review of completeness to ensure that the SEFA is complete. Views of Responsible Officials and Planned Corrective Actions 4. SEFA Preparation Procedures Action: Establish a standardized checklist and reconciliation process tying SEFA to the general ledger and grant subledgers to ensure completeness. Responsibility: Ruth Sterk, Senior Manager of Accounting Timeline: 3 months, to be implemented and tested during the 2025 SEFA preparation process. 5. Cross-Departmental Coordination Action: Conduct quarterly coordination meetings between the finance and grants management teams to verify completeness of federal award listings. Responsibility: Daniel Obus, Chief Financial Offi cer Timeline: 3 months 6. Year-End Review Action: Implement a comprehensive year-end review with the fi nance and grants management teams of all federal awards and expenditures prior to SEFA submission, including a full reconciliation of SEFA balances to the general ledger and independent review by senior finance leadership. Responsibility: Ruth Sterk, Senior Manager of Accounting, with oversight from Daniel Obus, Chief Financial Officer Timeline: 6 months

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 1155245 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $624,280
21.027 Coronavirus State and Local Fiscal Recovery Funds $606,381
98.001 Usaid Foreign Assistance for Programs Overseas $387,710