Finding Text
2023-003 - Reporting
Information on Federal Program(s)
U.S. Department of State
Name of Program: Program to End Modern Slavery
Assistance Listing Number: 19.019
Grant Award Number: S-SJTIP-20-CA-0026
Grant Award Period: July 1, 2022 through October 31, 2023
Criteria or Specific
Requirement: In accordance with §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (the Schedule) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502, Basis for determining Federal awards expended”. The schedule must provide total Federal awards expended for each individual Federal program.
Condition: During our review of grant agreements, we noted one Federal subaward that was improperly excluded from the original Schedule. This resulted in an understatement of total Federal awards expended as presented on the Schedule.
Cause: The Fund experienced staffing constraints during the year-end closing and financial reporting time period, which limited management’s ability to prepare a complete Schedule.
Effect or Potential
Effect: The original Schedule provided excluded federal expenditures totaling $152,021 and as a result, the Schedule was not properly stated. Adjustments were recorded and approved by the Fund’s management for presentation in this report.
Questioned Costs: None
Context: Per review of the Fund’s grant agreements, we identified one grant that was improperly excluded from the Schedule.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the Fund strengthen policies and procedures to ensure that all Federal awards and related expenses are reported accurately on the schedule of expenditures of federal awards. We recommend that individuals responsible for administering Federal programs within the Fund obtain training related to Federal grant requirements.
View of Responsible
Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.