Finding 1159768 (2022-009)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2025-10-02

Audit: 370331

Organization: Program of Academic Exchange (NY)

Auditor: Rln US LLP

AI Summary

Issue: PAX did not provide adequate records to confirm compliance with the matching fund requirement.
Trend: This lack of documentation could indicate ongoing issues with financial record-keeping.
Follow-up: Review and improve PAX's record-keeping practices to ensure compliance with 2 CFR 200.306.

Finding Text

Per the terms of the award, PAX agreed to expend a share of the total program cost financed by PAX and/or others from non-federal funds in accordance with 2 CFR 200.306. PAX’s books and records did not contain the necessary information to verify whether this matching requirement was met.

Corrective Action Plan

PAX implemented a dedicated cost center in the books and records specifically for tracking cost shared expenses midyear during FY23 rather than the previous practice of recognition of cost share at year end closing. Full implementation of contemporaneous tracking of cost share was implemented in FY24. Additionally, PAX now reconciles against this cost center to ensure that the expenses reported to the grantor and budgetary allocations align with the actual expenditures.

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
1159767 2022-008

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