FAC Explorer

Finding 520976 (2022-004)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2025-01-31
Audit: 340868
Organization: Foundation for Democratic Development (DC)
Auditor: Rubino & Company Chartered

AI Summary

  • Core Issue: The Organization did not comply with cash management requirements by holding onto federal advances longer than the 30-day limit.
  • Impacted Requirements: Advances on federal awards must be spent within 30 days to meet Uniform Guidance standards.
  • Recommended Follow-Up: Implement monthly reconciliations of refundable advances to ensure timely draws on federal awards and improve cash management procedures.

Finding Text

2022-004 Cash Management Federal Program – All federal programs Criteria – Advances received on federal awards should be expended within 30 days of being drawn down to comply with relevant cash management requirements. Condition and Context – During the performance of our audit, we noted that the Organization had a significant amount of refundable advances on federal awards and had cash on hand that exceeded the anticipated expenses over the next 30 days. As a result of a conversion to a new accounting system, the impact of COVID-19, cash advances were not routinely reconciled during the year ended December 31, 2022. Questioned Costs – None. Effect – The Organization was not in compliance with the Uniform Guidance cash management requirements. Cause – With the conversion to a new accounting system, combined with the COVID-19, new accounting staff, refundable advances were not reconciled timely. Recommendation – The refundable advances of the Organization should be reconciled on a monthly basis, which will permit more accurate draws on federal awards. Views of Responsible Officials and Planned Corrective Actions Management partially agrees with this finding as, in certain instances, the Organization must comply with the payment schedules of our grantors, which typically are on a quarterly basis. In some cases, there are strict schedules of draws in our grant agreements and no requests to draw funds are made. In situations when the Organization has the ability to draw funds, we agree not to make additional draw requests until the Organization has expended the funds already received. In 2022, due to the pandemic and the uncertainty of when programs would continue, many programs were suspended while waiting for travel restrictions to be lifted so that the Organization’s programs could be implemented. We will take the following steps: We will improve procedures to ensure that the drawdown of funds, from those grantors who require drawdowns will not exceed the Organization’s immediate use and we will develop additional procedures, as necessary, to assist in monitoring cash management.

Categories

Cash Management Subrecipient Monitoring

Other Findings in this Audit

  • 520969 2022-003
    Significant Deficiency Repeat
  • 520970 2022-004
    Significant Deficiency Repeat
  • 520971 2022-003
    Significant Deficiency Repeat
  • 520972 2022-004
    Significant Deficiency Repeat
  • 520973 2022-003
    Significant Deficiency Repeat
  • 520974 2022-004
    Significant Deficiency Repeat
  • 520975 2022-003
    Significant Deficiency Repeat
  • 520977 2022-003
    Significant Deficiency Repeat
  • 520978 2022-004
    Significant Deficiency Repeat
  • 520979 2022-003
    Significant Deficiency Repeat
  • 520980 2022-004
    Significant Deficiency Repeat
  • 520981 2022-003
    Significant Deficiency Repeat
  • 520982 2022-004
    Significant Deficiency Repeat
  • 520983 2022-003
    Significant Deficiency Repeat
  • 520984 2022-004
    Significant Deficiency Repeat
  • 520985 2022-003
    Significant Deficiency Repeat
  • 520986 2022-004
    Significant Deficiency Repeat
  • 520987 2022-003
    Significant Deficiency Repeat
  • 520988 2022-004
    Significant Deficiency Repeat
  • 520989 2022-003
    Significant Deficiency Repeat
  • 520990 2022-004
    Significant Deficiency Repeat
  • 520991 2022-003
    Significant Deficiency Repeat
  • 520992 2022-004
    Significant Deficiency Repeat
  • 520993 2022-003
    Significant Deficiency Repeat
  • 520994 2022-004
    Significant Deficiency Repeat
  • 520995 2022-003
    Significant Deficiency Repeat
  • 520996 2022-004
    Significant Deficiency Repeat
  • 520997 2022-003
    Significant Deficiency Repeat
  • 520998 2022-004
    Significant Deficiency Repeat
  • 520999 2022-003
    Significant Deficiency Repeat
  • 521000 2022-004
    Significant Deficiency Repeat
  • 1097411 2022-003
    Significant Deficiency Repeat
  • 1097412 2022-004
    Significant Deficiency Repeat
  • 1097413 2022-003
    Significant Deficiency Repeat
  • 1097414 2022-004
    Significant Deficiency Repeat
  • 1097415 2022-003
    Significant Deficiency Repeat
  • 1097416 2022-004
    Significant Deficiency Repeat
  • 1097417 2022-003
    Significant Deficiency Repeat
  • 1097418 2022-004
    Significant Deficiency Repeat
  • 1097419 2022-003
    Significant Deficiency Repeat
  • 1097420 2022-004
    Significant Deficiency Repeat
  • 1097421 2022-003
    Significant Deficiency Repeat
  • 1097422 2022-004
    Significant Deficiency Repeat
  • 1097423 2022-003
    Significant Deficiency Repeat
  • 1097424 2022-004
    Significant Deficiency Repeat
  • 1097425 2022-003
    Significant Deficiency Repeat
  • 1097426 2022-004
    Significant Deficiency Repeat
  • 1097427 2022-003
    Significant Deficiency Repeat
  • 1097428 2022-004
    Significant Deficiency Repeat
  • 1097429 2022-003
    Significant Deficiency Repeat
  • 1097430 2022-004
    Significant Deficiency Repeat
  • 1097431 2022-003
    Significant Deficiency Repeat
  • 1097432 2022-004
    Significant Deficiency Repeat
  • 1097433 2022-003
    Significant Deficiency Repeat
  • 1097434 2022-004
    Significant Deficiency Repeat
  • 1097435 2022-003
    Significant Deficiency Repeat
  • 1097436 2022-004
    Significant Deficiency Repeat
  • 1097437 2022-003
    Significant Deficiency Repeat
  • 1097438 2022-004
    Significant Deficiency Repeat
  • 1097439 2022-003
    Significant Deficiency Repeat
  • 1097440 2022-004
    Significant Deficiency Repeat
  • 1097441 2022-003
    Significant Deficiency Repeat
  • 1097442 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
98.U12 Civic Think Tank $251,595
19.345 Supporting Activism $162,952
19.345 Promoting Policy Research and Independent Media $140,718
19.345 Enhancing Public Access to Information $111,305
19.345 Supporting the Development of Democratic Processes $102,608
19.345 Supporting Investigative Journalism and Analysis $76,879
98.U11 Fighting Corruption with Art $42,532
19.345 Protection of Human Rights $28,528
19.345 Supporting Regional Activism $26,959
19.345 Series of Webinars and Panel Discussions $25,003
19.345 Supporting Frontline Human Rights Defenders and Incubating Grassroots Advocacy Organizations $24,410
19.345 Independent Internet Television $17,190
19.345 Defending the Rights of Young People $16,383
19.345 Supporting Grassroots Ngos $45
19.345 Digital Investigative Journalism and Training $-13