Finding 1225296 (2024-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2026-07-31

AI Summary

  • Core Issue: Salary allocations for federal awards were not accurately reflected in the general ledger, leading to discrepancies with timesheets.
  • Impacted Requirements: Compliance with Title 2 U.S. CFR Part 200, which mandates accurate records and internal controls for salary charges.
  • Recommended Follow-Up: ICFJ should review and improve its payroll process to ensure that general ledger entries match timesheet allocations.

Finding Text

Finding 2024-002 Salary Allocations Federal Agencies: U.S. Agency for International Development Federal Programs: Foreign Assistance for Programs Overseas Assistance Listing Numbers: 98.001 Pass-through Entity: None Award Identification Number and Year: 720-523-18-CA-00006, 720-486-23-LA-00001 Criteria or Specific Requirement: 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 3 instances where the allocation per the timesheet did not match the program and supporting service allocation within the general ledger. Cause: There were errors in the posting to the general ledger. Effect or Potential Effect: Allocation errors could result in inadvertently mischarging salaries and wages to its various programs. Questioned Costs: $614 Context: Our audit work in this area consisted of a random sample selection of payroll periods and employees. We consider our sample to be representative of the population, and thus, is a statistically valid sample. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that ICFJ review its payroll process to ensure that the allocations ultimately entered within the general ledger agree to the time charged per timesheets.

Corrective Action Plan

Views of Responsible Officials: Management acknowledges the three instances noted where timesheet allocations did not agree to the general ledger postings. The errors have been reviewed and corrected. ICFJ will implement a secondary review procedure whereby payroll postings are compared against approved timesheets prior to finalization each pay period. Any discrepancies will be resolved before entries are posted to the general ledger.  Anticipated completion date: 9/30/26  Responsible position: Chief Financial Officer

Categories

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

Other Findings in this Audit

  • 1225275 2024-001
    Material Weakness Repeat
  • 1225276 2024-003
    Material Weakness Repeat
  • 1225277 2024-004
    Material Weakness Repeat
  • 1225278 2024-005
    Material Weakness Repeat
  • 1225279 2024-001
    Material Weakness Repeat
  • 1225280 2024-003
    Material Weakness Repeat
  • 1225281 2024-004
    Material Weakness Repeat
  • 1225282 2024-005
    Material Weakness Repeat
  • 1225283 2024-001
    Material Weakness Repeat
  • 1225284 2024-003
    Material Weakness Repeat
  • 1225285 2024-004
    Material Weakness Repeat
  • 1225286 2024-005
    Material Weakness Repeat
  • 1225287 2024-001
    Material Weakness Repeat
  • 1225288 2024-003
    Material Weakness Repeat
  • 1225289 2024-004
    Material Weakness Repeat
  • 1225290 2024-005
    Material Weakness Repeat
  • 1225291 2024-001
    Material Weakness Repeat
  • 1225292 2024-002
    Material Weakness Repeat
  • 1225293 2024-003
    Material Weakness Repeat
  • 1225294 2024-004
    Material Weakness Repeat
  • 1225295 2024-001
    Material Weakness Repeat
  • 1225297 2024-003
    Material Weakness Repeat
  • 1225298 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
98.001 USAID FOREIGN ASSISTANCE FOR PROGRAMS OVERSEAS $496,531
19.221 REGIONAL DEMOCRACY PROGRAM $302,000
19.900 AEECA/ESF PD PROGRAMS $212,749
19.345 INTERNATIONAL PROGRAMS TO SUPPORT DEMOCRACY, HUMAN RIGHTS AND LABOR $143,345
19.415 PROFESSIONAL AND CULTURAL EXCHANGE PROGRAMS - CITIZEN EXCHANGES $113,853
19.021 INVESTING IN PEOPLE IN THE MIDDLE EAST AND NORTH AFRICA $97,032
19.022 EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS APPROPRIATION OVERSEAS GRANTS $48,765
19.750 BUREAU OF WESTERN HEMISPHERE AFFAIRS ASSISTANCE COORDINATION (WHA/AC) GRANT PROGRAMS $39,764
19.040 PUBLIC DIPLOMACY PROGRAMS $19,514
19.108 BUREAU OF SOUTH AND CENTRAL ASIAN AFFAIRS $7,713
19.989 STATE/AFRICAN REGIONAL - OTHER ECONOMIC SUPPORT FUNDS (ESF) PROJECTS/PROGRAMS $6,054
19.501 PUBLIC DIPLOMACY PROGRAMS FOR AFGHANISTAN AND PAKISTAN $3,690
19.979 REGIONAL PEACE AND SECURITY $711