Finding Text
2022-002 Department of State ? Bureau of Population, Refugees, and Migration Federal Financial Assistance Listing #19.517, Overseas Refugee Assistance Programs for Africa Agency for International DevelopmentAllowable Activities, Allowable CostsType of Finding: Material Weakness in Internal Control over ComplianceGrant Award Number: Affects all grant awards included under Federal Financial Assistance Listing #19.517 on the Schedule.Criteria: CVT?s internal control structure should be designed to properly follow the allocation of international employees pay to each location served in accordance with the policy established by CVT. This includes documentation of approval of employee timecards.Condition: CVT has an internal control system designed to detect or prevent improper allocation of international employees to locations served in a timely manner in accordance with their established policy, however, the controls did not operate as designed for four months tested.Cause: The controls in place did not operate as designed.Effect: Risk of unallowable costs being submitted for reimbursement.Questioned Costs: None reportedContext/Sampling: A nonstatistical sample of four months out of 12 total months of payroll was selected for testing which accounted for $565,110 of $4,050,524 federal program expenditures. Seventeen instances were identified where the timecards were not signed by the supervisor and 44 instances where the allocation of payroll did not match the timecards for the calculation of the allocation of wages to the program. There were also six identified instances where the payroll allocation support did not match the amounts recorded in the general ledger.Repeat Finding from Prior Year: NoRecommendation: We recommend management complete an extensive review over international employee timesheet allocation to make sure payroll is properly allocated to each location serviced in accordance with the policy established by CVT.Views of Responsible Officials: Management agrees with this finding.