FAC Explorer

Finding 387621 (2023-004)

Significant Deficiency Repeat Finding
Requirement
ABCEFGHIJLMN
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299718
Organization: Plan International Inc. (NY)
Auditor: Pricewaterhousecoopers LLP

AI Summary

  • Core Issue: The foreign exchange translation methodology remains unchanged, using a spot rate from the second to last working day of the prior month, which does not comply with accounting standards.
  • Impacted Requirements: Accurate financial records are essential for reporting and operational needs, and the current method has led to immaterial misstatements in financial statements.
  • Recommended Follow-Up: Management should ensure the new ERP system allows for daily input of foreign exchange rates to align with accounting standards and internal policies.

Finding Text

Ref 2023-004: Foreign exchange translation methodology (repeat of prior year finding 2022-004, 2021-005, 2020-006, 2019-006) (significant deficiency) Federal Agency: All Program: All Assistance Listing: All Award #: All Award year: FY23, FY22, FY21, FY20 and FY19 Pass-through: All applicable Criteria: Accurate and reliable financial records of many kinds are necessary to meet ongoing financial reporting and operational needs and requirements. The rate of exchange used throughout any given month is the spot rate from the second to last working day of the prior month. This is not therefore the ‘the rate of exchange ruling at the date of the transaction’ in accordance with the Plan Inc. accounting policies as stated in the financial statements. Condition: For all transactions, the impact of exchange rates takes place in the following stages: At a transaction level 1. Translation from document currency (i.e. currency of income/expense per invoice) to local currency at the time of initial recognition 2. Local currency to functional currency (Euro) 3. Translation to actual rate at date of settlement 4. Translation of outstanding amounts within the balance sheet at the period end rate At the consolidation level 5. Functional currency to reporting currency (USD) We note the following: The monthly rate used for consolidation purposes is also the spot rate from the second to last day of the previous month and not an appropriate average rate as required and we have noted an immaterial misstatement relating to the translation of I&E into the reporting currency (USD). As the foreign exchange methodology is unchanged from the prior year, the matter therefore still remains open in FY23. In FY23 management performed a retrospective analysis to assess the misstatement caused by using the incorrect foreign exchange rate. We have assessed this analysis and confirmed the completeness, inputs and mathematical accuracy thereof. We have confirmed there is an immaterial misstatement arising as a result of the effect of using the incorrect foreign exchange rates for income and expenditure. Cause: The rates used, as noted above, are a spot rate from the second to last day of the prior month, not a transaction date rate or suitable weighted average, or another alternative. The current system does not allow for the correct rate to be used. Effect: Foreign exchange translation methodology is currently not in accordance with accounting standards. There are differences within the Plan Inc. financial statements that have been identified but not corrected as a result of the foreign exchange translation methodology issues noted. Recommendation: As management plan, design and configure the new ERP system consideration should be given to the need to input foreign exchange rates into the system on a daily basis to ensure compliance with the accounting standards and Plan’s accounting policies. Views of Responsible Officials and Management’s Corrective Action Plan: Views of responsible officials and management’s corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 387600 2023-003
    Significant Deficiency
  • 387601 2023-004
    Significant Deficiency Repeat
  • 387602 2023-003
    Significant Deficiency
  • 387603 2023-004
    Significant Deficiency Repeat
  • 387604 2023-003
    Significant Deficiency
  • 387605 2023-004
    Significant Deficiency Repeat
  • 387606 2023-006
    -
  • 387607 2023-003
    Significant Deficiency
  • 387608 2023-004
    Significant Deficiency Repeat
  • 387609 2023-003
    Significant Deficiency
  • 387610 2023-004
    Significant Deficiency Repeat
  • 387611 2023-007
    -
  • 387612 2023-003
    Significant Deficiency
  • 387613 2023-004
    Significant Deficiency Repeat
  • 387614 2023-003
    Significant Deficiency
  • 387615 2023-004
    Significant Deficiency Repeat
  • 387616 2023-003
    Significant Deficiency
  • 387617 2023-004
    Significant Deficiency Repeat
  • 387618 2023-003
    Significant Deficiency
  • 387619 2023-004
    Significant Deficiency Repeat
  • 387620 2023-003
    Significant Deficiency
  • 387622 2023-003
    Significant Deficiency
  • 387623 2023-004
    Significant Deficiency Repeat
  • 387624 2023-003
    Significant Deficiency
  • 387625 2023-004
    Significant Deficiency Repeat
  • 387626 2023-003
    Significant Deficiency
  • 387627 2023-004
    Significant Deficiency Repeat
  • 387628 2023-003
    Significant Deficiency
  • 387629 2023-004
    Significant Deficiency Repeat
  • 387630 2023-003
    Significant Deficiency
  • 387631 2023-004
    Significant Deficiency Repeat
  • 387632 2023-003
    Significant Deficiency
  • 387633 2023-004
    Significant Deficiency Repeat
  • 387634 2023-003
    Significant Deficiency
  • 387635 2023-004
    Significant Deficiency Repeat
  • 387636 2023-003
    Significant Deficiency
  • 387637 2023-004
    Significant Deficiency Repeat
  • 387638 2023-003
    Significant Deficiency
  • 387639 2023-004
    Significant Deficiency Repeat
  • 387640 2023-003
    Significant Deficiency
  • 387641 2023-004
    Significant Deficiency Repeat
  • 387642 2023-007
    -
  • 387643 2023-003
    Significant Deficiency
  • 387644 2023-004
    Significant Deficiency Repeat
  • 387645 2023-007
    -
  • 387646 2023-003
    Significant Deficiency
  • 387647 2023-004
    Significant Deficiency Repeat
  • 387648 2023-003
    Significant Deficiency
  • 387649 2023-004
    Significant Deficiency Repeat
  • 387650 2023-003
    Significant Deficiency
  • 387651 2023-004
    Significant Deficiency Repeat
  • 387652 2023-003
    Significant Deficiency
  • 387653 2023-004
    Significant Deficiency Repeat
  • 387654 2023-003
    Significant Deficiency
  • 387655 2023-004
    Significant Deficiency Repeat
  • 964042 2023-003
    Significant Deficiency
  • 964043 2023-004
    Significant Deficiency Repeat
  • 964044 2023-003
    Significant Deficiency
  • 964045 2023-004
    Significant Deficiency Repeat
  • 964046 2023-003
    Significant Deficiency
  • 964047 2023-004
    Significant Deficiency Repeat
  • 964048 2023-006
    -
  • 964049 2023-003
    Significant Deficiency
  • 964050 2023-004
    Significant Deficiency Repeat
  • 964051 2023-003
    Significant Deficiency
  • 964052 2023-004
    Significant Deficiency Repeat
  • 964053 2023-007
    -
  • 964054 2023-003
    Significant Deficiency
  • 964055 2023-004
    Significant Deficiency Repeat
  • 964056 2023-003
    Significant Deficiency
  • 964057 2023-004
    Significant Deficiency Repeat
  • 964058 2023-003
    Significant Deficiency
  • 964059 2023-004
    Significant Deficiency Repeat
  • 964060 2023-003
    Significant Deficiency
  • 964061 2023-004
    Significant Deficiency Repeat
  • 964062 2023-003
    Significant Deficiency
  • 964063 2023-004
    Significant Deficiency Repeat
  • 964064 2023-003
    Significant Deficiency
  • 964065 2023-004
    Significant Deficiency Repeat
  • 964066 2023-003
    Significant Deficiency
  • 964067 2023-004
    Significant Deficiency Repeat
  • 964068 2023-003
    Significant Deficiency
  • 964069 2023-004
    Significant Deficiency Repeat
  • 964070 2023-003
    Significant Deficiency
  • 964071 2023-004
    Significant Deficiency Repeat
  • 964072 2023-003
    Significant Deficiency
  • 964073 2023-004
    Significant Deficiency Repeat
  • 964074 2023-003
    Significant Deficiency
  • 964075 2023-004
    Significant Deficiency Repeat
  • 964076 2023-003
    Significant Deficiency
  • 964077 2023-004
    Significant Deficiency Repeat
  • 964078 2023-003
    Significant Deficiency
  • 964079 2023-004
    Significant Deficiency Repeat
  • 964080 2023-003
    Significant Deficiency
  • 964081 2023-004
    Significant Deficiency Repeat
  • 964082 2023-003
    Significant Deficiency
  • 964083 2023-004
    Significant Deficiency Repeat
  • 964084 2023-007
    -
  • 964085 2023-003
    Significant Deficiency
  • 964086 2023-004
    Significant Deficiency Repeat
  • 964087 2023-007
    -
  • 964088 2023-003
    Significant Deficiency
  • 964089 2023-004
    Significant Deficiency Repeat
  • 964090 2023-003
    Significant Deficiency
  • 964091 2023-004
    Significant Deficiency Repeat
  • 964092 2023-003
    Significant Deficiency
  • 964093 2023-004
    Significant Deficiency Repeat
  • 964094 2023-003
    Significant Deficiency
  • 964095 2023-004
    Significant Deficiency Repeat
  • 964096 2023-003
    Significant Deficiency
  • 964097 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.608 Food for Education $1.08M
19.019 International Programs to Combat Human Trafficking $298,150
19.517 Overseas Refugee Assistance Programs for Africa $210,755
17.401 International Labor Programs $183,493
98.001 Usaid Foreign Assistance for Programs Overseas $319