Finding 578514 (2022-005)

Federal Agency: Department of State Federal Program Name: U.S. Refugee Admissions Program Assistance Listing Number: 19.510 Pass-Through Agency: U.S. Committee for Refugees and Immigrants Pass-Through Numbers: SPRMCO21CA3006, SPRMCO22CA0021, SPRMCO21CA3294 Award Period: October 1, 2020 through September 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs. The passthrough agency allows indirect costs to be calculated and claimed towards each grant. The Organization should have internal controls designed to ensure complainace with those provisions. Condition: There is no internal control structure around the calculation of indirect costs. Questioned costs: None Context: Obtained the indirect cost calculation noting there was no review process in place to ensure that indirect costs were properly calculated. Cause: The Organization does not have an adequate system in place to ensure indirect costs are properly calculated and reviewed. Effect: The effect of this condition increases the possibility that indirect costs are improperly calculated and claimed. Repeat Finding: No Recommendation: Policies and procedures should be in place to ensure indirect costs are being properly calculated and adequately reviewed/approved. Views of Responsible Officials: There is no disagreement with the audit finding.