Finding Text
Repeat of Prior Audit Finding 2021-003 Federal Program: Trans-National Crime Federal Agencies: United States Department of State- United States Bureau of International Narcotics and Law Enforcement Affairs Federal Assistance Listing Number: 19.705 Federal Award Year: December 31, 2022 Criteria: 2 CFR Part 200.303(a) of the Uniform Guidance requires all non-Federal entities to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that a non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. 2 CFR Part 200.306 of the Uniform Guidance requires shared costs or matching funds be accepted as part of the non-Federal entity's cost sharing or matching when they are verifiable, necessary and reasonable and are allowable. Condition/Context: Panthera Corporation prepares and reviews a quarterly expenditure file to track and compile quarterly costs and calculate the cost-sharing component to be submitted for reimbursement to the funding agency. For the selection of 2 quarterly expenditure files, we were unable to verify that the file was formally reviewed. This was not a statistically valid sample. Questioned Costs: None Cause: Panthera Corporation developed written matching procedures, however, did not follow such procedures by including formal, written review of quarterly expenditure files. Effect: Panthera Corporation's control design and operation does not provide reasonable assurance that Panthera Corporation is managing the matching compliance requirement of the Uniform Guidance. Recommendation: We recommend that Panthera Corporation implement documented approval on their quarterly expenditure files. Views of Responsible Officials: Management acknowledges the finding and has implemented an approval process within Chrome River.