Finding 1162184 (2024-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-11-11
Audit: 371993
Organization: Invisible Children, Inc. (DC)

AI Summary

  • Core Issue: Timesheet codes do not match allocation spreadsheet codes, leading to potential inaccuracies in payroll records.
  • Impacted Requirements: Compliance with Title 2 U.S. CFR Part 200, which mandates accurate and supported payroll records.
  • Recommended Follow-Up: Implement a thorough review process for payroll to catch and correct errors before finalizing entries.

Finding Text

Finding 2024-003: Payroll Federal Program: All Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation – personal services” requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: We noted two instances where the timesheet itself identified a code which did not match that used for the allocation spreadsheet. Cause: The Organization's review process for payroll did not identify the errors. Effect: In certain instances, the Organization cannot provide a clear trail from the supporting documentation including timesheets to the entry within the general ledger. Questioned Costs: None noted Context: It is our understanding per discussions with management that the amount allocated within the general ledger is ultimately correct. Identification as a Repeat Finding, if Applicable: Finding 2023-003 Recommendation: We recommend the Organization ensure there is a review of the payroll process to detect errors.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Invisible Children will revise the payroll review process to increase internal controls and reviews so that allocation spreadsheets and GL entries match timesheets and other supporting documentation. Timesheet approvers will be instructed to more closely review at time of approval to ensure proper coding. Finance managers will also review timesheets to ensure proper allocation coding.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1162180 2024-003
    Material Weakness Repeat
  • 1162181 2024-002
    Material Weakness Repeat
  • 1162182 2024-003
    Material Weakness Repeat
  • 1162183 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
98.001 USAID FOREIGN ASSISTANCE FOR PROGRAMS OVERSEAS $1.56M
19.345 INTERNATIONAL PROGRAMS TO SUPPORT DEMOCRACY, HUMAN RIGHTS AND LABOR $1.05M