Finding Text
Finding 2022-001: Reporting of Known Embezzlement in Uganda Information on the Federal Program: CFDA 19.517 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Alight was notified of an instance of embezzlement that occurred in Kampala, Uganda. The employees involved in the aforementioned embezzlement were taking bribes from refugees and extorting money. Management of Alight took appropriate action by conducting an investigation and terminating all employees involved in the incident. Cause: Alight did not adequately safeguard its assets. However, Alight's monitoring procedures did detect the embezzlement and they have subsequently enhanced procedures related to petty cash and local payroll control systems. Effect or Potential Effect: After investigation, Alight did not find any evidence that a federal award was affected, but Alight notified USDOS. Questioned Costs: None. Context: Alight failed to properly safeguard all assets. Alight must continue to monitor and ensure that the systems of internal controls throughout its field offices are functioning as designed. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Alight review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of embezzlement.