Finding Text
Federal Agency: U.S. Department of State Federal Program Name: Professional and Cultural Exchange Programs - Citizen Exchanges Assistance Listing Number: 19.415 Award Period: July 26, 2022- September 30, 2025; September 14, 2022- September 30, 2026 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs. American Institute For Foreign Study Foundation, Inc. should have internal controls designed to ensure compliance with those provisions. Condition: During our testing of payroll expenditures, we noted American Institute For Foreign Study Foundation, Inc. did not have adequate internal controls designed to ensure only allowable costs were charged to the award. Questioned costs: Unknown Context: American Institute For Foreign Study Foundation, Inc. is charging to the award based on the budgeted payroll expenses which does not correspond with the actual salary expense that should have been allocated to the award. As a whole, payroll charged to the award is not in excess of the budgeted amount. Cause: Management believed that they should charge the award based on budget. Effect: The effect is that salaries charged may not represent the award's allocable share. Repeat Finding: Yes, 2023-001 Recommendation: American Institute For Foreign Study Foundation, Inc. should formalize review over allocations to the award to ensure that allocations are based on actual time and effort. Views of Responsible Officials: Management is not in agreement with the finding. See separate corrective action plan.