Finding Text
2022-003 Department of State - Federal Financial Assistance Listing #98.001, USAID Foreign Assistance for Programs OverseasAllowable Activities, Allowable CostsType of Finding: Significant Deficiency in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #98.001 on the Schedule.Criteria: CVT?s internal control structure should be designed to properly follow the allocation of international employees pay to each location served in accordance with the policy established by CVT. This includes documentation of approval of employee timecards.Condition: CVT has an internal control system designed to detect or prevent improper allocation of international employees to locations served in a timely manner in accordance with their established policy, but the controls did not operate as designed for two months tested.Cause: The controls in place did not operate as designed.Effect: Risk of unallowable costs being submitted for reimbursement.Questioned Costs: None reportedContext/Sampling: A nonstatistical sample of four months out of 12 total months of payroll was selected for testing which accounted for $393,481 of $1,924,291 federal program expenditures. Six instances were identified where the timecards were not signed by the supervisor and eight instances where the allocation of payroll did not match the timecards for the calculation of the allocation of wages to the program.Repeat Finding from Prior Year: NoRecommendation: We recommend management complete an extensive review over international employee timesheet allocation to make sure payroll is properly allocated to each location serviced in accordance with the policy established by CVT.Views of Responsible Officials: Management agrees with this finding.