Finding 1159767 (2022-008)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2025-10-02
Audit: 370331
Organization: Program of Academic Exchange (NY)
Auditor: Rln US LLP

AI Summary

  • Answer: PAX lacked a compliant time and effort reporting system during the audit year.
  • Trend: This issue indicates a recurring problem with meeting federal cost principles.
  • List: Follow up by implementing a compliant reporting system and reviewing federal requirements regularly.

Finding Text

During the year under audit, PAX did not have a time and effort reporting system that met the requirements of the federal cost principles.

Corrective Action Plan

In a previous period and by previous auditors, PAX was told that because we were using a percentage of effort calculation in budgeting that time sheets were no longer needed for this purpose. At that time, we abandoned the time sheet process (which was arduous). Based upon current auditor’s advice, PAX established an effort verification reporting system. This system was launched in FY23 and enhanced in FY24. It will accurately capture the effort spent by each employee on specific grants, ensuring proper documentation of allocation of wages and salaries to the respective federal awards.

Categories

Questioned Costs Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 1159761 2022-008
    Material Weakness Repeat
  • 1159762 2022-009
    Material Weakness Repeat
  • 1159763 2022-010
    Material Weakness Repeat
  • 1159764 2022-008
    Material Weakness Repeat
  • 1159765 2022-009
    Material Weakness Repeat
  • 1159766 2022-010
    Material Weakness Repeat
  • 1159768 2022-009
    Material Weakness Repeat
  • 1159769 2022-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
19.415 Professional and Cultural Exchange Programs - Citizen Exchanges $573,442