Finding 1210841 (2025-004)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-04-29

AI Summary

  • Core Issue: The agency paid $83,010 in employee bonuses after work started, violating 2 CFR, Section 230, which requires a policy in place beforehand.
  • Impacted Requirements: Incentive payments must have an established organization-wide policy before the work begins to be compliant.
  • Recommended Follow-Up: The agency should confirm approval for these costs from the relevant funding programs to address the questioned expenses.

Finding Text

Condition: Quetionable Employee Bonus/Incentive Pay. Criteria: 2 CFR, Section 230, allows incentive payments to employee if the paying agency has an organization-wide policy in place prior to work beginning. Cause: The agency established an incentive program during the fiscal year after work had begun. Effect: The agency is charging $83,010 in incentive pay to employees across four federal programs. ContextDuring the fiscal year, the federal admininistration drasitically increased the level of immigration into the United States. This massive increase in resettlement services forced the agency to require their staff to work longer hours in stressful situations. In an attempt to reward their efficiency and retain employees, the agency granted incentive payments. Management believes that their actions were retro-actively approve by their primary funding source (ALN: 19.510). The total amount of questioned costs by program is as follows: ALN: 19-510 equals $59,990: ALN: 93.576 equals $16,940; ALN: 93.567 equals $2,600; and ALN: 93.566 equals $3,480 totaling $83,010. Recommendation: The agency should seek confirmation of approval from the various programs for the costs in question.

Corrective Action Plan

View of Responsible Officials and Planned Corrective Actions: The agency will request documentation from its primary federal funding agency of retro-active approval.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1210834 2025-001
    Material Weakness Repeat
  • 1210835 2025-004
    Material Weakness Repeat
  • 1210836 2025-004
    Material Weakness Repeat
  • 1210837 2025-004
    Material Weakness Repeat
  • 1210838 2025-004
    Material Weakness Repeat
  • 1210839 2025-004
    Material Weakness Repeat
  • 1210840 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $3.89M
93.567 REFUGEE AND ENTRANT ASSISTANCE VOLUNTARY AGENCY PROGRAMS $1.14M
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $208,173
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $180,186
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $42,413
21.009 VOLUNTEER INCOME TAX ASSISTANCE (VITA) MATCHING GRANT PROGRAM $7,002
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1,231