FAC Explorer

Finding 560221 (2024-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-05-13
Audit: 356152
Organization: International Rescue Committee, Inc. (NY)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: Inaccurate reporting of indirect costs for grants, leading to discrepancies in the general ledger.
  • Impacted Requirements: Compliance with federal cost principles and timely reconciliation of financial data.
  • Recommended Follow-Up: Implement regular reconciliations of grant spending and adjust discrepancies in the correct fiscal year.

Finding Text

U.S. Department of Health and Human Services: Refugee and Entrant Assistance State Administered Programs: Refugee and Entrant Assistance State / Replacement Designee Administered Programs: Florida Department of Children and Families: Comprehensive Refugee Services - Leon County (Tallahassee), Florida (ALN 93.566, award number LK207) Maryland Department of Human Resources MORA Office: Refugee Transitional Cash Assistance (RTCA) Maryland (ALN 93.566, award number FIA/RTCA-23-507) Refugee Transitional Cash Assistance (RTCA) Maryland (ALN 93.566, award number FIA/RTCA-24-507) Extended Case Management Program (ALN 93.566, award number FIA/ECMP-24-514) New York State Office of Temporary & Disability Assistance: Refugee School Impact Program (RSIP) (ALN 93.566, award number TDA01-C00948GG-3410000) Catholic Charities, Diocese of Fort Worth: Refugee Cash Assistance (ALN 93.566, award number FFY2024-22536C-CMA) Refugee Support Services (RSS) Program (ALN 93.566, award number FFY2024-27927CRSS) Refugee Cash and Medical Assistance (CMA) Program (ALN 93.566, award number FFY2024-27927C-CMA Refugee Support Services (RSS) Program - Afghan Supplemental Appropriations (ASA) (ALN 93.566, award number FFY2024-27927C-ASA-RSS) Colorado Department of Human Services: REACH: Cash and Medical Assistance (ALN 93.566, award number 24 IHGA 184529) U.S. Department of Health and Human Services: Unaccompanied Children Program: Heartland Human Care Services: Unaccompanied Minors (ALN 93.676, award number 90ZU0358-03-00) U.S. Department of the Treasury: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds: City of Phoenix: ARPA Funding Round 2 (ALN 21.027, award number 157893-0 FE) Maricopa County (Arizona): Refugee Relocation Program - RA Services (ALN 21.027, award number C-73-23-083-X-00) Statistically valid sample: No, and it was not intended to be. Repeat finding: Not a repeat finding. Finding Type: Significant Deficiency Criteria: Indirect costs are those that have been incurred for common or joint objectives and cannot be readily identified with a particular final cost objective. After direct costs have been determined and assigned directly to awards or other work, as appropriate, indirect costs are those remaining to be allocated to benefitting cost objectives. A cost may not be allocated to a federal award as an indirect cost if any other cost incurred for the same purpose, in like circumstances, has been assigned to a federal award as a direct cost. Not-for-profit organizations should charge indirect costs to federal awards in compliance with the cost principles in 2 CFR Part 200, Subpart E, Appendix IV, and CAS (if applicable), and in accordance with any negotiated rate agreements and specific award conditions/limitations. Additionally, in accordance with federal requirements, a non-federal entity shall maintain internal controls over federal programs designed to provide reasonable assurance that reports are accurately and timely filed in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition and context: For the three programs identified in this finding, there were a total of 233 grants (219 for 93.566, 3 or 93.676 and 11 for 21.027) in the population and 32 grants (27 for 93.566, 2 for 93.676 and 3 for 21.027) selected for test work. Out of the 32 grants selected, there were 14 grants (10 for 93.566, 1 for 93.676 and 3 for 21.027) received by IRC from a pass-through entity. For the 13 grants received from pass-through entities, the indirect costs included in the general ledger were not accurate as the amounts did not represent the direct costs multiplied by the indirect cost rate. The differences are noted below for our samples: 93.566 – general ledger was overstated by $673,702 93.676 – general ledger was understated by $2,860 21.027 – general ledger was overstated by $97,300 While these differences existed, the local office had reported the correct amount of indirect costs to the pass-through entity and had requested the correct amount for reimbursement so there are no questioned costs or noncompliance. IRC identified these errors subsequent to year-end when reconciling the information provided by the local office to the general ledger and recorded the adjustments in fiscal year 2025. Cause: In some cases, the exclusions or the indirect cost rate used to record the general ledger balance were not accurate. IRC was short-staffed, preventing regular reconciliations until year-end when the errors were identified. Since the errors were not material, the corrections were recorded in fiscal year 2025. Effect: There is the potential for IRC to report to the pass-through entity and request for reimbursement amounts that would not be allowable. Questioned Costs: None. Recommendation: IRC should timely reconcile all information provided by the local offices related to spending on grants provided by pass-through entities, including the indirect costs. If differences are noted, adjustments should be made in the correct fiscal year so that costs are appropriately presented. Views of Responsible Officials: While the identified NICRA calculation errors did not result in over/under recovery, Management agrees with the finding and acknowledges the need to strengthen governing controls.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 560216 2024-001
    Significant Deficiency
  • 560217 2024-002
    Significant Deficiency
  • 560218 2024-002
    Significant Deficiency
  • 560219 2024-002
    Significant Deficiency
  • 560220 2024-002
    Significant Deficiency
  • 560222 2024-002
    Significant Deficiency
  • 560223 2024-002
    Significant Deficiency
  • 560224 2024-002
    Significant Deficiency
  • 560225 2024-002
    Significant Deficiency
  • 560226 2024-002
    Significant Deficiency
  • 560227 2024-002
    Significant Deficiency
  • 560228 2024-002
    Significant Deficiency
  • 560229 2024-002
    Significant Deficiency
  • 560230 2024-002
    Significant Deficiency
  • 560231 2024-002
    Significant Deficiency
  • 560232 2024-002
    Significant Deficiency
  • 560233 2024-002
    Significant Deficiency
  • 560234 2024-002
    Significant Deficiency
  • 560235 2024-002
    Significant Deficiency
  • 560236 2024-002
    Significant Deficiency
  • 560237 2024-002
    Significant Deficiency
  • 560238 2024-002
    Significant Deficiency
  • 560239 2024-002
    Significant Deficiency
  • 560240 2024-002
    Significant Deficiency
  • 560241 2024-002
    Significant Deficiency
  • 560242 2024-002
    Significant Deficiency
  • 560243 2024-002
    Significant Deficiency
  • 560244 2024-002
    Significant Deficiency
  • 560245 2024-002
    Significant Deficiency
  • 560246 2024-002
    Significant Deficiency
  • 560247 2024-002
    Significant Deficiency
  • 560248 2024-002
    Significant Deficiency
  • 560249 2024-002
    Significant Deficiency
  • 560250 2024-002
    Significant Deficiency
  • 560251 2024-002
    Significant Deficiency
  • 560252 2024-002
    Significant Deficiency
  • 560253 2024-002
    Significant Deficiency
  • 560254 2024-001
    Significant Deficiency
  • 1136658 2024-001
    Significant Deficiency
  • 1136659 2024-002
    Significant Deficiency
  • 1136660 2024-002
    Significant Deficiency
  • 1136661 2024-002
    Significant Deficiency
  • 1136662 2024-002
    Significant Deficiency
  • 1136663 2024-002
    Significant Deficiency
  • 1136664 2024-002
    Significant Deficiency
  • 1136665 2024-002
    Significant Deficiency
  • 1136666 2024-002
    Significant Deficiency
  • 1136667 2024-002
    Significant Deficiency
  • 1136668 2024-002
    Significant Deficiency
  • 1136669 2024-002
    Significant Deficiency
  • 1136670 2024-002
    Significant Deficiency
  • 1136671 2024-002
    Significant Deficiency
  • 1136672 2024-002
    Significant Deficiency
  • 1136673 2024-002
    Significant Deficiency
  • 1136674 2024-002
    Significant Deficiency
  • 1136675 2024-002
    Significant Deficiency
  • 1136676 2024-002
    Significant Deficiency
  • 1136677 2024-002
    Significant Deficiency
  • 1136678 2024-002
    Significant Deficiency
  • 1136679 2024-002
    Significant Deficiency
  • 1136680 2024-002
    Significant Deficiency
  • 1136681 2024-002
    Significant Deficiency
  • 1136682 2024-002
    Significant Deficiency
  • 1136683 2024-002
    Significant Deficiency
  • 1136684 2024-002
    Significant Deficiency
  • 1136685 2024-002
    Significant Deficiency
  • 1136686 2024-002
    Significant Deficiency
  • 1136687 2024-002
    Significant Deficiency
  • 1136688 2024-002
    Significant Deficiency
  • 1136689 2024-002
    Significant Deficiency
  • 1136690 2024-002
    Significant Deficiency
  • 1136691 2024-002
    Significant Deficiency
  • 1136692 2024-002
    Significant Deficiency
  • 1136693 2024-002
    Significant Deficiency
  • 1136694 2024-002
    Significant Deficiency
  • 1136695 2024-002
    Significant Deficiency
  • 1136696 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.567 Refugee and Entrant Assistance Voluntary Agency Programs $20.37M
93.067 Global Aids $8.05M
97.141 Shelter and Services Program $2.95M
19.518 Overseas Refugee Assistance Programs for Western Hemisphere $1.48M
59.077 Community Navigator Pilot Program $1.36M
10.234 American Rescue Plan Technical Assistance Investment Program $816,568
21.027 Coronavirus State and Local Fiscal Recovery Funds $805,467
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $572,959
93.604 Assistance for Torture Victims $561,541
19.108 Bureau of South and Central Asian Affairs $519,255
19.223 South Sudan and Sudan Assistance Program $304,786
19.345 International Programs to Support Democracy, Human Rights and Labor $290,982
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $290,706
19.522 Overseas Refugee Assistance Programs for Strategic Global Priorities $276,851
59.050 Prime Technical Assistance $253,252
94.021 Americorps Volunteer Generation Fund 94.021 $230,393
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $208,051
16.582 Crime Victim Assistance/discretionary Grants $198,518
98.001 Usaid Foreign Assistance for Programs Overseas $195,052
19.519 Overseas Refugee Assistance Program for Middle East and North Africa Program $176,987
97.102 Case Management Pilot Program $172,982
19.523 Overseas Refugee Assistance Program for South Asia $167,813
10.902 Soil and Water Conservation $162,613
10.935 Urban Agriculture and Innovative Production $158,111
98.U03 Catalyze Capital Investment Platform $150,829
10.175 Farmers Market and Local Food Promotion Program $149,337
16.575 Crime Victim Assistance $139,533
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $136,337
82.002 Educational Exchange_university Lecturers (professors) and Research Scholars $133,755
84.287 Twenty-First Century Community Learning Centers $125,879
10.225 Community Food Projects $121,718
97.010 Citizenship Education and Training $110,350
84.002 Adult Education - Basic Grants to States $109,159
10.255 Research Innovation and Development Grants in Economic (ridge) $100,130
84.424 Student Support and Academic Enrichment Program $98,672
10.522 Food and Agriculture Service Learning Program $87,618
19.517 Overseas Refugee Assistance Programs for Africa $86,951
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $85,653
17.259 Wioa Youth Activities $72,402
93.495 Community Health Workers for Public Health Response and Resilient $70,264
93.676 Unaccompanied Children Program $64,539
93.327 Demonstration Grants for Domestic Victims of Human Trafficking $61,265
59.037 Small Business Development Centers $60,000
19.511 Overseas Refugee Assistance Programs for East Asia $58,511
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $53,141
10.170 Specialty Crop Block Grant Program - Farm Bill $51,928
21.023 Emergency Rental Assistance Program $43,499
93.569 Community Services Block Grant $42,500
10.551 Supplemental Nutrition Assistance Program $38,978
32.011 Affordable Connectivity Outreach Grant Program $38,616
10.215 Sustainable Agriculture Research and Education $37,239
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $28,766
19.510 U.s. Refugee Admissions Program $28,624
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $27,055
93.135 Centers for Research and Demonstration for Health Promotion and Disease Prevention $25,155
93.583 Refugee and Entrant Assistance Wilson/fish Program $24,468
93.598 Services to Victims of A Severe Form of Trafficking $19,981
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $19,586
84.425 Education Stabilization Fund $19,163
21.034 State Small Business Credit Initiative Competitive Technical Assistance Program $16,825
98.U01 Latin America and Caribbean Learning and Rapid Response Task Order (laclearn) $16,027
17.289 Community Project Funding/congressionally Directed Spending $15,000
93.283 Centers for Disease Control and Prevention Investigations and Technical Assistance $15,000
19.019 International Programs to Combat Human Trafficking $14,948
10.443 Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers $14,085
16.320 Services for Trafficking Victims $13,130
10.675 Urban and Community Forestry Program $11,412
93.575 Child Care and Development Block Grant $10,131
98.U02 Improving Learning Outcomes for Asia Mechanism (iloa) $8,650
93.493 Congressional Directives $5,899
97.024 Emergency Food and Shelter National Board Program $5,250
17.258 Wioa Adult Program $4,923
93.558 Temporary Assistance for Needy Families $4,281
10.331 Gus Schumacher Nutrition Incentive Program $4,124
10.575 Farm to School Grant Program $3,645
10.311 Beginning Farmer and Rancher Development Program $3,469
94.006 Americorps State and National 94.006 $571
93.584 Refugee and Entrant Assistance Targeted Assistance Grants $239
93.576 Refugee and Entrant Assistance Discretionary Grants $-43
14.218 Community Development Block Grants/entitlement Grants $-44
98.U04 2020-Catalyst-Ga016 Safe to Learn and Thrive Together $-3,424
93.556 Marylee Allen Promoting Safe and Stable Families Program $-155,057