Audit 17958

Finding 2022-001 Reporting ? Federal Funding Accountability and Transparency Act (FFATA) Assistance Listing Number: 98.007/98.008 Program Name: USAID Foreign Food Aid Donation Cluster Granting Agency: U.S. Agency for International Development (USAID) Federal Award Identification number and Award Year: 72DFFP19CA00004 ? 2019 - 2024 72DFFP20CA00007 ? 2020-2025 Criteria: As per 2 CFR 200.170, direct recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The subaward information should be reported no later than the end of the month following the month in which the obligation was made. Condition: During our testing of the FFATA reporting compliance, we tested a sample of seven (7) FFATA reports that were submitted to FSRS and found that two (2) reports from our sample were not submitted within the required time frame. Cause: The information needed for FFATA reporting is provided by the implementing partner and Country Office to CARE USA?s Shared Service Center (SSC) for submission. In these two instances, the information was not processed, and the reports were not prepared, on a timely basis. Effect or potential effect: The delay in submission of the reports resulted in CARE USA not reporting the required information in FSRS within the required time frame; thereby resulting in noncompliance with the reporting requirements. Although the two reports were not submitted within the required time frame, we noted that upon their eventual submission, the information submitted was complete and accurate and met all other compliance requirements. Questioned Costs: None. Context: Of the seven (7) FFATA reports tested, we noted delays in submission of two (2) reports. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend CARE USA continue to reinforce the importance of timely submission of required documents to all business units involved in the FFATA reporting process and continue to monitor the appropriate compliance with timely reporting. Views of responsible officials: This finding was first noted in the fiscal 2021 audit. Shortly thereafter, CARE USA designed and implemented a corrective action plan which was in place by February 2022. The two FFATA reports noted during the 2022 audit relate to the period before the corrective actions were taken. These corrective actions included: ? CARE held refresher training and provided additional guidance to all business units involved with FFATA reporting. ? CARE implemented a preventative control to reduce future non-compliance, which includes working with partners to ensure information needed for FFATA reporting is provided prior to execution of the partner funding agreement (PFA) and inclusion of FFATA data collection during the award set up process. ? CARE established an escalation protocol to notify Country Directors of FFATA reporting non-compliance with a copy of the notification to relevant CARE senior management. ? CARE enhanced the monitoring controls of (i) first tier partner funding spending against obligation under USG awards to anticipate potential modifications, (ii) USG Awards spending and set up in the system, (iii) the completeness of USG Awards and PFA documents, and (iv) Shared Services Center in their monthly meetings with CARE country offices, will include a review of upcoming 1st tier subaward modifications for any obligation increases as these will trigger a FFATA reporting requirement.

Finding 2022-001 Reporting ? Federal Funding Accountability and Transparency Act (FFATA) Assistance Listing Number: 98.007/98.008 Program Name: USAID Foreign Food Aid Donation Cluster Granting Agency: U.S. Agency for International Development (USAID) Federal Award Identification number and Award Year: 72DFFP19CA00004 ? 2019 - 2024 72DFFP20CA00007 ? 2020-2025 Criteria: As per 2 CFR 200.170, direct recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The subaward information should be reported no later than the end of the month following the month in which the obligation was made. Condition: During our testing of the FFATA reporting compliance, we tested a sample of seven (7) FFATA reports that were submitted to FSRS and found that two (2) reports from our sample were not submitted within the required time frame. Cause: The information needed for FFATA reporting is provided by the implementing partner and Country Office to CARE USA?s Shared Service Center (SSC) for submission. In these two instances, the information was not processed, and the reports were not prepared, on a timely basis. Effect or potential effect: The delay in submission of the reports resulted in CARE USA not reporting the required information in FSRS within the required time frame; thereby resulting in noncompliance with the reporting requirements. Although the two reports were not submitted within the required time frame, we noted that upon their eventual submission, the information submitted was complete and accurate and met all other compliance requirements. Questioned Costs: None. Context: Of the seven (7) FFATA reports tested, we noted delays in submission of two (2) reports. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend CARE USA continue to reinforce the importance of timely submission of required documents to all business units involved in the FFATA reporting process and continue to monitor the appropriate compliance with timely reporting. Views of responsible officials: This finding was first noted in the fiscal 2021 audit. Shortly thereafter, CARE USA designed and implemented a corrective action plan which was in place by February 2022. The two FFATA reports noted during the 2022 audit relate to the period before the corrective actions were taken. These corrective actions included: ? CARE held refresher training and provided additional guidance to all business units involved with FFATA reporting. ? CARE implemented a preventative control to reduce future non-compliance, which includes working with partners to ensure information needed for FFATA reporting is provided prior to execution of the partner funding agreement (PFA) and inclusion of FFATA data collection during the award set up process. ? CARE established an escalation protocol to notify Country Directors of FFATA reporting non-compliance with a copy of the notification to relevant CARE senior management. ? CARE enhanced the monitoring controls of (i) first tier partner funding spending against obligation under USG awards to anticipate potential modifications, (ii) USG Awards spending and set up in the system, (iii) the completeness of USG Awards and PFA documents, and (iv) Shared Services Center in their monthly meetings with CARE country offices, will include a review of upcoming 1st tier subaward modifications for any obligation increases as these will trigger a FFATA reporting requirement.