Finding Text
Finding 2024-001 Audit Delays Federal Agencies: U.S. Department of State and U.S. Agency for International Development Federal Programs: International Programs to Support Democracy, Human Rights and Labor and Foreign Assistance for Programs Overseas Assistance Listing Numbers: 19.345 and 98.001 Pass-through Entity: None Award Identification Number and Year: S-LMAQM-20-GR-2099, S-LMAQM-20-GR-2100, SAQMIP- 22-GR-0005, S-AQMIP-23-GR-0343, 720-523-18-CA-00006, 720-486-23-LA-00001 Criteria or Specific Requirement: As noted in 2 CFR §200.303 "The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)". As noted in 2 CFR §200.512 the audit report should be submitted nine months after the end of the audit period. Condition: There were delays in performing the audit, resulting in a late filing of the Uniform Guidance audit. In addition, we noted that certain accounts had not been reconciled throughout the year, but instead as part of audit preparation only. We noted that reconciliation of the indirect rate had also been delayed due to late receipt of a final rate and that further analysis is pending to determine any adjustments that may be required from the final rate determination. Cause: The above conditions arose due to numerous factors, including transition and turnover within the accounting department. Effect or Potential Effect: Timely year-end closure is important to avoid increased potential for fraud, misstatements, and failures to adhere to donor and other regulations. Effective filing of documents decreases the potential for non-compliance with donor requirements, questioned costs or findings. Questioned Costs: None Context: ICFJ has been impacted by funding changes as well as transition in staff within the acconting department. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that ICFJ ensure that a monthly close process is followed to ensure timely and accurate financial reporting, transparent documentation of review and approval of transactions, and compliance with applicable donor requirements. Financial and compliance documents should be filed to permit prompt retrieval.