Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number(s) Award Period 72062122C00001 November 9, 2021 through November, 8, 2026s 5U62PS123541 February 23, 2004 through February 22, 2012 AID-621-A-16-00004 October 1, 2016 through December 31, 2021 AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.313(d), Equipment, a non-federal entity must establish and adhere to procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place. The non-federal entity must meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award number under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Management is required to ensure property records are maintained to ensure adequate recordkeeping for equipment acquired with U.S. government funding including both additions to, and disposals of, equipment. During our testing to ensure management provided an accurate listing of equipment held to perform our equipment completeness testing for which a sample would be selected, BDO identified the following matters in related to the equipment population provided by management: We examined the 2022 inventory records designated to the major federal program; however, matters were noted as listed below: Direct Award Number Errors on Year-end Inventory Listing 72062122C00001 One asset was not included in the December 31, 2022 equipment listing that should have been included. 5U62PS123541 One asset selected for testing was unable to be located. AID-621-A-16-00004 One asset selected for testing was unable to be located. Direct Award Number Assets Correctly Disposed or Transferred As Per U.S. Government Regulations - Not Included on the Equipment Disposals Listing 5U62PS123541 One asset AID-621-A-16-00004 Two assets AID617A1500010 Three assets Cause: The Foundation?s country offices did not fully comply with established internal procedures related to equipment tracking requirements for equipment procured with U.S. Government funds. This resulted in both incorrect year-end inventory listings, but also incomplete transfer and disposal listing. Effect: Failure to properly track and maintain equipment purchased with U.S. Government funds could ultimately lead to loss of equipment procured with U.S. funds, reduced funding, or cancellation of a federal award. Questioned Costs: None. Context: This is a condition identified per examination of the Foundation?s compliance with the equipment provisions within the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The sample was selected using a non-statistical method. Recommendation: We recommend management perform trainings to address the deficiencies identified above given the equipment inventory process did not ensure a complete and accurate disposal population or equipment listing as of December 31, 2022. We also recommend management establish a periodic review of the documentation that is maintained to comply with ?200.313, Equipment, to ensure that the documentation encompasses all the required elements of the regulation, including sale or transfer requirements. Views of Responsible Officials: The Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2022-005 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number Award Period AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. The financial management system of each non-federal entity must provide for the following: (1) Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in ?200.327 Financial Reporting and ?200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Additionally, ?200.303 Internal Controls states that a non-federal entity must (a) establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Foundation?s policies are designed to ensure expenses are accurate, current and reported within the financial results timely for grant reporting. For one non-payroll expenditure sample of 40 non-payroll expenditure samples tested, the expenditure was not recorded timely resulting in the expenditure being recorded in the incorrect audit period on the SEFA. In this instance, the expenditure was incurred during the grant?s overall period of performance. The expenditure for AID-617-A-15-00010 totaled $513. Cause: Foundation management has procedures in place to review expenditures to ensure timely review and reporting; however, those procedures performed by management were not performed to a level of detail to ensure the error identified was reported timely on the SEFA. Effect: The lack of adherence to the established internal control policies and procedures can lead to noncompliance with federal statutes, regulations, and the provisions of grant agreements which could ultimately lead to disallowed costs for the major federal program. Questioned Costs: None Context: This is a condition identified per review of the Foundation?s compliance with allocability and allowability provisions of the Uniform Guidance. The prevalence of this finding is detailed in the condition section above. Samples were selected using a non-statistical method. Recommendation: BDO recommends that the Foundation adhere to its documented policies and procedures regarding authorization and timely approval and reporting of expenditures to ensure compliance with ?200.302 Financial Management. Views of Responsible Officials: Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2022-004 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number Award Period AID-674-A-16-00005 June 20, 2016 through June 18, 2024 Criteria or Specific Requirement: In accordance with ?200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. The financial management system of each non-federal entity must provide for the following: (1) Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in ?200.327 Financial Reporting and ?200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Additionally, ?200.303 Internal Controls states that a non-federal entity must (a) establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Foundation has documented payroll policies and procedures. However, as identified below, the review and approval process did not operate as designed. ? BDO tested 40 payroll expenditures identifying two errors. In both instances, the expenditures did not have evidence of compliance with documented policies. For one sample, an employee?s contract was not authorized by the employee via certified approval email or manual signature. For the second sample, an employee?s monthly timesheet for the year ended December 31, 2022 was not properly approved by their assigned manager. Cause: Foundation personnel did not comply with documented policies and procedures surrounding the payroll process. Effect: The lack of adherence to the established internal control policies and procedures can lead to noncompliance with federal statutes, regulations, and the provisions of grant agreements which could ultimately lead to disallowed costs for the major federal program. Questioned Costs: None. Context: This is a condition identified per review of the Foundation?s compliance with allocability and allowability provisions of the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. Samples were selected using a non-statistical method. Recommendation: BDO recommends that the Foundation adhere to its documented policies and procedures regarding proper review and approval of expenditures. Views of Responsible Officials: The Foundation agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number(s) Award Period 72062122C00001 November 9, 2021 through November, 8, 2026s 5U62PS123541 February 23, 2004 through February 22, 2012 AID-621-A-16-00004 October 1, 2016 through December 31, 2021 AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.313(d), Equipment, a non-federal entity must establish and adhere to procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place. The non-federal entity must meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award number under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Management is required to ensure property records are maintained to ensure adequate recordkeeping for equipment acquired with U.S. government funding including both additions to, and disposals of, equipment. During our testing to ensure management provided an accurate listing of equipment held to perform our equipment completeness testing for which a sample would be selected, BDO identified the following matters in related to the equipment population provided by management: We examined the 2022 inventory records designated to the major federal program; however, matters were noted as listed below: Direct Award Number Errors on Year-end Inventory Listing 72062122C00001 One asset was not included in the December 31, 2022 equipment listing that should have been included. 5U62PS123541 One asset selected for testing was unable to be located. AID-621-A-16-00004 One asset selected for testing was unable to be located. Direct Award Number Assets Correctly Disposed or Transferred As Per U.S. Government Regulations - Not Included on the Equipment Disposals Listing 5U62PS123541 One asset AID-621-A-16-00004 Two assets AID617A1500010 Three assets Cause: The Foundation?s country offices did not fully comply with established internal procedures related to equipment tracking requirements for equipment procured with U.S. Government funds. This resulted in both incorrect year-end inventory listings, but also incomplete transfer and disposal listing. Effect: Failure to properly track and maintain equipment purchased with U.S. Government funds could ultimately lead to loss of equipment procured with U.S. funds, reduced funding, or cancellation of a federal award. Questioned Costs: None. Context: This is a condition identified per examination of the Foundation?s compliance with the equipment provisions within the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The sample was selected using a non-statistical method. Recommendation: We recommend management perform trainings to address the deficiencies identified above given the equipment inventory process did not ensure a complete and accurate disposal population or equipment listing as of December 31, 2022. We also recommend management establish a periodic review of the documentation that is maintained to comply with ?200.313, Equipment, to ensure that the documentation encompasses all the required elements of the regulation, including sale or transfer requirements. Views of Responsible Officials: The Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number(s) Award Period 72062122C00001 November 9, 2021 through November, 8, 2026s 5U62PS123541 February 23, 2004 through February 22, 2012 AID-621-A-16-00004 October 1, 2016 through December 31, 2021 AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.313(d), Equipment, a non-federal entity must establish and adhere to procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place. The non-federal entity must meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award number under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Management is required to ensure property records are maintained to ensure adequate recordkeeping for equipment acquired with U.S. government funding including both additions to, and disposals of, equipment. During our testing to ensure management provided an accurate listing of equipment held to perform our equipment completeness testing for which a sample would be selected, BDO identified the following matters in related to the equipment population provided by management: We examined the 2022 inventory records designated to the major federal program; however, matters were noted as listed below: Direct Award Number Errors on Year-end Inventory Listing 72062122C00001 One asset was not included in the December 31, 2022 equipment listing that should have been included. 5U62PS123541 One asset selected for testing was unable to be located. AID-621-A-16-00004 One asset selected for testing was unable to be located. Direct Award Number Assets Correctly Disposed or Transferred As Per U.S. Government Regulations - Not Included on the Equipment Disposals Listing 5U62PS123541 One asset AID-621-A-16-00004 Two assets AID617A1500010 Three assets Cause: The Foundation?s country offices did not fully comply with established internal procedures related to equipment tracking requirements for equipment procured with U.S. Government funds. This resulted in both incorrect year-end inventory listings, but also incomplete transfer and disposal listing. Effect: Failure to properly track and maintain equipment purchased with U.S. Government funds could ultimately lead to loss of equipment procured with U.S. funds, reduced funding, or cancellation of a federal award. Questioned Costs: None. Context: This is a condition identified per examination of the Foundation?s compliance with the equipment provisions within the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The sample was selected using a non-statistical method. Recommendation: We recommend management perform trainings to address the deficiencies identified above given the equipment inventory process did not ensure a complete and accurate disposal population or equipment listing as of December 31, 2022. We also recommend management establish a periodic review of the documentation that is maintained to comply with ?200.313, Equipment, to ensure that the documentation encompasses all the required elements of the regulation, including sale or transfer requirements. Views of Responsible Officials: The Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number(s) Award Period 72062122C00001 November 9, 2021 through November, 8, 2026s 5U62PS123541 February 23, 2004 through February 22, 2012 AID-621-A-16-00004 October 1, 2016 through December 31, 2021 AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.313(d), Equipment, a non-federal entity must establish and adhere to procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place. The non-federal entity must meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award number under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Management is required to ensure property records are maintained to ensure adequate recordkeeping for equipment acquired with U.S. government funding including both additions to, and disposals of, equipment. During our testing to ensure management provided an accurate listing of equipment held to perform our equipment completeness testing for which a sample would be selected, BDO identified the following matters in related to the equipment population provided by management: We examined the 2022 inventory records designated to the major federal program; however, matters were noted as listed below: Direct Award Number Errors on Year-end Inventory Listing 72062122C00001 One asset was not included in the December 31, 2022 equipment listing that should have been included. 5U62PS123541 One asset selected for testing was unable to be located. AID-621-A-16-00004 One asset selected for testing was unable to be located. Direct Award Number Assets Correctly Disposed or Transferred As Per U.S. Government Regulations - Not Included on the Equipment Disposals Listing 5U62PS123541 One asset AID-621-A-16-00004 Two assets AID617A1500010 Three assets Cause: The Foundation?s country offices did not fully comply with established internal procedures related to equipment tracking requirements for equipment procured with U.S. Government funds. This resulted in both incorrect year-end inventory listings, but also incomplete transfer and disposal listing. Effect: Failure to properly track and maintain equipment purchased with U.S. Government funds could ultimately lead to loss of equipment procured with U.S. funds, reduced funding, or cancellation of a federal award. Questioned Costs: None. Context: This is a condition identified per examination of the Foundation?s compliance with the equipment provisions within the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The sample was selected using a non-statistical method. Recommendation: We recommend management perform trainings to address the deficiencies identified above given the equipment inventory process did not ensure a complete and accurate disposal population or equipment listing as of December 31, 2022. We also recommend management establish a periodic review of the documentation that is maintained to comply with ?200.313, Equipment, to ensure that the documentation encompasses all the required elements of the regulation, including sale or transfer requirements. Views of Responsible Officials: The Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number(s) Award Period 72062122C00001 November 9, 2021 through November, 8, 2026s 5U62PS123541 February 23, 2004 through February 22, 2012 AID-621-A-16-00004 October 1, 2016 through December 31, 2021 AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.313(d), Equipment, a non-federal entity must establish and adhere to procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place. The non-federal entity must meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award number under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Management is required to ensure property records are maintained to ensure adequate recordkeeping for equipment acquired with U.S. government funding including both additions to, and disposals of, equipment. During our testing to ensure management provided an accurate listing of equipment held to perform our equipment completeness testing for which a sample would be selected, BDO identified the following matters in related to the equipment population provided by management: We examined the 2022 inventory records designated to the major federal program; however, matters were noted as listed below: Direct Award Number Errors on Year-end Inventory Listing 72062122C00001 One asset was not included in the December 31, 2022 equipment listing that should have been included. 5U62PS123541 One asset selected for testing was unable to be located. AID-621-A-16-00004 One asset selected for testing was unable to be located. Direct Award Number Assets Correctly Disposed or Transferred As Per U.S. Government Regulations - Not Included on the Equipment Disposals Listing 5U62PS123541 One asset AID-621-A-16-00004 Two assets AID617A1500010 Three assets Cause: The Foundation?s country offices did not fully comply with established internal procedures related to equipment tracking requirements for equipment procured with U.S. Government funds. This resulted in both incorrect year-end inventory listings, but also incomplete transfer and disposal listing. Effect: Failure to properly track and maintain equipment purchased with U.S. Government funds could ultimately lead to loss of equipment procured with U.S. funds, reduced funding, or cancellation of a federal award. Questioned Costs: None. Context: This is a condition identified per examination of the Foundation?s compliance with the equipment provisions within the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The sample was selected using a non-statistical method. Recommendation: We recommend management perform trainings to address the deficiencies identified above given the equipment inventory process did not ensure a complete and accurate disposal population or equipment listing as of December 31, 2022. We also recommend management establish a periodic review of the documentation that is maintained to comply with ?200.313, Equipment, to ensure that the documentation encompasses all the required elements of the regulation, including sale or transfer requirements. Views of Responsible Officials: The Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2022-005 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number Award Period AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. The financial management system of each non-federal entity must provide for the following: (1) Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in ?200.327 Financial Reporting and ?200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Additionally, ?200.303 Internal Controls states that a non-federal entity must (a) establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Foundation?s policies are designed to ensure expenses are accurate, current and reported within the financial results timely for grant reporting. For one non-payroll expenditure sample of 40 non-payroll expenditure samples tested, the expenditure was not recorded timely resulting in the expenditure being recorded in the incorrect audit period on the SEFA. In this instance, the expenditure was incurred during the grant?s overall period of performance. The expenditure for AID-617-A-15-00010 totaled $513. Cause: Foundation management has procedures in place to review expenditures to ensure timely review and reporting; however, those procedures performed by management were not performed to a level of detail to ensure the error identified was reported timely on the SEFA. Effect: The lack of adherence to the established internal control policies and procedures can lead to noncompliance with federal statutes, regulations, and the provisions of grant agreements which could ultimately lead to disallowed costs for the major federal program. Questioned Costs: None Context: This is a condition identified per review of the Foundation?s compliance with allocability and allowability provisions of the Uniform Guidance. The prevalence of this finding is detailed in the condition section above. Samples were selected using a non-statistical method. Recommendation: BDO recommends that the Foundation adhere to its documented policies and procedures regarding authorization and timely approval and reporting of expenditures to ensure compliance with ?200.302 Financial Management. Views of Responsible Officials: Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
2022-004 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number Award Period AID-674-A-16-00005 June 20, 2016 through June 18, 2024 Criteria or Specific Requirement: In accordance with ?200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. The financial management system of each non-federal entity must provide for the following: (1) Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in ?200.327 Financial Reporting and ?200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Additionally, ?200.303 Internal Controls states that a non-federal entity must (a) establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Foundation has documented payroll policies and procedures. However, as identified below, the review and approval process did not operate as designed. ? BDO tested 40 payroll expenditures identifying two errors. In both instances, the expenditures did not have evidence of compliance with documented policies. For one sample, an employee?s contract was not authorized by the employee via certified approval email or manual signature. For the second sample, an employee?s monthly timesheet for the year ended December 31, 2022 was not properly approved by their assigned manager. Cause: Foundation personnel did not comply with documented policies and procedures surrounding the payroll process. Effect: The lack of adherence to the established internal control policies and procedures can lead to noncompliance with federal statutes, regulations, and the provisions of grant agreements which could ultimately lead to disallowed costs for the major federal program. Questioned Costs: None. Context: This is a condition identified per review of the Foundation?s compliance with allocability and allowability provisions of the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. Samples were selected using a non-statistical method. Recommendation: BDO recommends that the Foundation adhere to its documented policies and procedures regarding proper review and approval of expenditures. Views of Responsible Officials: The Foundation agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number(s) Award Period 72062122C00001 November 9, 2021 through November, 8, 2026s 5U62PS123541 February 23, 2004 through February 22, 2012 AID-621-A-16-00004 October 1, 2016 through December 31, 2021 AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.313(d), Equipment, a non-federal entity must establish and adhere to procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place. The non-federal entity must meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award number under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Management is required to ensure property records are maintained to ensure adequate recordkeeping for equipment acquired with U.S. government funding including both additions to, and disposals of, equipment. During our testing to ensure management provided an accurate listing of equipment held to perform our equipment completeness testing for which a sample would be selected, BDO identified the following matters in related to the equipment population provided by management: We examined the 2022 inventory records designated to the major federal program; however, matters were noted as listed below: Direct Award Number Errors on Year-end Inventory Listing 72062122C00001 One asset was not included in the December 31, 2022 equipment listing that should have been included. 5U62PS123541 One asset selected for testing was unable to be located. AID-621-A-16-00004 One asset selected for testing was unable to be located. Direct Award Number Assets Correctly Disposed or Transferred As Per U.S. Government Regulations - Not Included on the Equipment Disposals Listing 5U62PS123541 One asset AID-621-A-16-00004 Two assets AID617A1500010 Three assets Cause: The Foundation?s country offices did not fully comply with established internal procedures related to equipment tracking requirements for equipment procured with U.S. Government funds. This resulted in both incorrect year-end inventory listings, but also incomplete transfer and disposal listing. Effect: Failure to properly track and maintain equipment purchased with U.S. Government funds could ultimately lead to loss of equipment procured with U.S. funds, reduced funding, or cancellation of a federal award. Questioned Costs: None. Context: This is a condition identified per examination of the Foundation?s compliance with the equipment provisions within the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The sample was selected using a non-statistical method. Recommendation: We recommend management perform trainings to address the deficiencies identified above given the equipment inventory process did not ensure a complete and accurate disposal population or equipment listing as of December 31, 2022. We also recommend management establish a periodic review of the documentation that is maintained to comply with ?200.313, Equipment, to ensure that the documentation encompasses all the required elements of the regulation, including sale or transfer requirements. Views of Responsible Officials: The Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number(s) Award Period 72062122C00001 November 9, 2021 through November, 8, 2026s 5U62PS123541 February 23, 2004 through February 22, 2012 AID-621-A-16-00004 October 1, 2016 through December 31, 2021 AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.313(d), Equipment, a non-federal entity must establish and adhere to procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place. The non-federal entity must meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award number under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Management is required to ensure property records are maintained to ensure adequate recordkeeping for equipment acquired with U.S. government funding including both additions to, and disposals of, equipment. During our testing to ensure management provided an accurate listing of equipment held to perform our equipment completeness testing for which a sample would be selected, BDO identified the following matters in related to the equipment population provided by management: We examined the 2022 inventory records designated to the major federal program; however, matters were noted as listed below: Direct Award Number Errors on Year-end Inventory Listing 72062122C00001 One asset was not included in the December 31, 2022 equipment listing that should have been included. 5U62PS123541 One asset selected for testing was unable to be located. AID-621-A-16-00004 One asset selected for testing was unable to be located. Direct Award Number Assets Correctly Disposed or Transferred As Per U.S. Government Regulations - Not Included on the Equipment Disposals Listing 5U62PS123541 One asset AID-621-A-16-00004 Two assets AID617A1500010 Three assets Cause: The Foundation?s country offices did not fully comply with established internal procedures related to equipment tracking requirements for equipment procured with U.S. Government funds. This resulted in both incorrect year-end inventory listings, but also incomplete transfer and disposal listing. Effect: Failure to properly track and maintain equipment purchased with U.S. Government funds could ultimately lead to loss of equipment procured with U.S. funds, reduced funding, or cancellation of a federal award. Questioned Costs: None. Context: This is a condition identified per examination of the Foundation?s compliance with the equipment provisions within the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The sample was selected using a non-statistical method. Recommendation: We recommend management perform trainings to address the deficiencies identified above given the equipment inventory process did not ensure a complete and accurate disposal population or equipment listing as of December 31, 2022. We also recommend management establish a periodic review of the documentation that is maintained to comply with ?200.313, Equipment, to ensure that the documentation encompasses all the required elements of the regulation, including sale or transfer requirements. Views of Responsible Officials: The Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.
Identification of the Federal Program: United States Agency for International Development Assistance Listing Number: 98.001 Assistance Listing Name: USAID Foreign Assistance for Programs Overseas Direct Award Number(s) Award Period 72062122C00001 November 9, 2021 through November, 8, 2026s 5U62PS123541 February 23, 2004 through February 22, 2012 AID-621-A-16-00004 October 1, 2016 through December 31, 2021 AID-617-A-15-00010 November 15, 2015 through September 30, 2023 Criteria or Specific Requirement: In accordance with ?200.313(d), Equipment, a non-federal entity must establish and adhere to procedures for managing equipment, whether acquired in whole or in part under a Federal award, until disposition takes place. The non-federal entity must meet the following requirements: (1) Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal Award Identification Number), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award number under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (2) A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. (3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage or theft must be investigated. (4) Adequate maintenance procedures must be developed to keep the property in good condition. (5) If the non-Federal entity is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Condition: Management is required to ensure property records are maintained to ensure adequate recordkeeping for equipment acquired with U.S. government funding including both additions to, and disposals of, equipment. During our testing to ensure management provided an accurate listing of equipment held to perform our equipment completeness testing for which a sample would be selected, BDO identified the following matters in related to the equipment population provided by management: We examined the 2022 inventory records designated to the major federal program; however, matters were noted as listed below: Direct Award Number Errors on Year-end Inventory Listing 72062122C00001 One asset was not included in the December 31, 2022 equipment listing that should have been included. 5U62PS123541 One asset selected for testing was unable to be located. AID-621-A-16-00004 One asset selected for testing was unable to be located. Direct Award Number Assets Correctly Disposed or Transferred As Per U.S. Government Regulations - Not Included on the Equipment Disposals Listing 5U62PS123541 One asset AID-621-A-16-00004 Two assets AID617A1500010 Three assets Cause: The Foundation?s country offices did not fully comply with established internal procedures related to equipment tracking requirements for equipment procured with U.S. Government funds. This resulted in both incorrect year-end inventory listings, but also incomplete transfer and disposal listing. Effect: Failure to properly track and maintain equipment purchased with U.S. Government funds could ultimately lead to loss of equipment procured with U.S. funds, reduced funding, or cancellation of a federal award. Questioned Costs: None. Context: This is a condition identified per examination of the Foundation?s compliance with the equipment provisions within the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The sample was selected using a non-statistical method. Recommendation: We recommend management perform trainings to address the deficiencies identified above given the equipment inventory process did not ensure a complete and accurate disposal population or equipment listing as of December 31, 2022. We also recommend management establish a periodic review of the documentation that is maintained to comply with ?200.313, Equipment, to ensure that the documentation encompasses all the required elements of the regulation, including sale or transfer requirements. Views of Responsible Officials: The Foundation?s management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.