Finding 29709 (2022-002)

Material Weakness
Requirement
H
Questioned Costs
-
Year
2022
Accepted
2023-09-26

AI Summary

  • Core Issue: The American Institute For Foreign Study Foundation, Inc. lacks adequate internal controls to ensure costs are charged correctly within the award's period of performance.
  • Impacted Requirements: Compliance with 2 CFR Part 200 is necessary to avoid material weaknesses and noncompliance in federal awards.
  • Recommended Follow-Up: Implement a robust review process to ensure costs are accurately tracked and charged within the appropriate time frame.

Finding Text

2022-002 Federal Agency: U.S. Department of State Federal Program Name: Professional and Cultural Exchange Programs - Citizen Exchanges Assistance Listing Number: 19.415 Award Period: July 26, 2022 ? September 30, 2025 Type of Finding: * Material Weakness in Internal Control over Compliance *Material Noncompliance (Modified Opinion) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. American Institute For Foreign Study Foundation, Inc. should have internal controls designed to ensure compliance with those provisions. Condition: During our testing over period of performance, we noted American Institute For Foreign Study Foundation, Inc. did not have adequate internal controls designed to ensure costs were properly charged to awards within the period of performance. Cause: Exception was caused due to inadequate review over period of performance compliance. Effect: Expenditures for the award were overstated for prior period expenditures. Repeat Finding: No Recommendation: We recommend American Institute For Foreign Study Foundation, Inc. design controls to ensure an adequate review process is in place to review the period of costs incurred to ensure costs are charged to grants in the proper period. Views of Responsible Officials: Management concurs with the finding. See separate corrective action plan.

Corrective Action Plan

Finding 2022-002 U.S Department of State Professional and Cultural Exchange Programs - Citizen Exchanges ? Assistance Listing No. 19.415 Recommendation: We recommend American Institute For Foreign Study Foundation, Inc. design controls to ensure an adequate review process is in place to review the period of costs incurred to ensure costs are charged to awards in the proper period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review more closely to ensure costs are charged to awards within the period of performance. They note that all costs being charged to awards are grant related regardless of the period and that they consistently do not use all approved grant awards. Name of the contact person responsible for corrective action: James Mahoney, CFO Planned completion date for corrective action plan: September 15, 2023 If the U.S. Department of State has questions regarding this plan, please call James Mahoney at 203-399-5143.

Categories

Allowable Costs / Cost Principles Material Weakness Period of Performance Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 29708 2022-001
    Material Weakness
  • 606150 2022-001
    Material Weakness
  • 606151 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
19.415 Professional and Cultural Exchange Programs - Citizen Exchanges $951,907