FAC Explorer

Audit 309320

FY End
2023-09-30
Total Expended
$1.35M
Findings
4
Programs
3
Organization: Villagereach (WA)
Year: 2023 Accepted: 2024-06-20
Auditor: Clark Nuber P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401278 2023-002 Significant Deficiency Yes B
401279 2023-003 Significant Deficiency - I
977720 2023-002 Significant Deficiency Yes B
977721 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
98.001 Usaid Foreign Assistance for Programs Overseas $1.30M Yes 2
93.268 Immunization Cooperative Agreements $32,117 - 0
93.233 National Center on Sleep Disorders Research $17,454 - 0

Contacts

Name Title Type
NKG1STLQCDK5 Tendai Munyoro Auditee
2065121533 Troy Rector Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such an audit, certain expenses incurred are determined to be nonreimbursable, the Organization may be liable for repayment of disallowed expenses previously claimed or received. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule reflect indirect costs allocated based on the Organization’s current provisional negotiated indirect cost rate agreement. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of VillageReach and Subsidiary (collectively, the Organization) under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such an audit, certain expenses incurred are determined to be nonreimbursable, the Organization may be liable for repayment of disallowed expenses previously claimed or received. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule reflect indirect costs allocated based on the Organization’s current provisional negotiated indirect cost rate agreement. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such an audit, certain expenses incurred are determined to be nonreimbursable, the Organization may be liable for repayment of disallowed expenses previously claimed or received.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such an audit, certain expenses incurred are determined to be nonreimbursable, the Organization may be liable for repayment of disallowed expenses previously claimed or received. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule reflect indirect costs allocated based on the Organization’s current provisional negotiated indirect cost rate agreement. The Organization has not elected to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule reflect indirect costs allocated based on the Organization’s current provisional negotiated indirect cost rate agreement.

Finding Details

Finding 2023-002
Finding 2023-002 Significant deficiency in internal control over compliance for allowable costs related to cost allocation. Federal Agency: United States Agency for International Development Program Titles: USAID Foreign Assistance for Programs Overseas Assistance Listing Number: 98.001 Pass-Through Entity: N/A Award Numbers: 72065618CA00001 Award Periods: May 14, 2018 through April 23, 2024 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D ‐ Post Federal Award Requirements, Section 200.303, Internal Controls, require that a non‐Federal entity must 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/Context In our review of one employee's compensation, we discovered that the gross salary registered in the allocator for January did not account for travel pay. This oversight led to an undercharge of $371 to the federal award associated with our selection. The issue was not unique to this incident, resulting in a total under allocation to the award for January amounting to $658. It is important to note, however, that all affected employees received the correct pay for this month. Upon reviewing the records of three other employees, we found that the gross salary entered in the allocator did not include holiday or retroactive pay. Consequently, this resulted in an undercharge to the federal award, amounting $4,077. However, despite this discrepancy, all the employees were paid correctly. Cause The Organization’s internal controls failed to prevent, or detect and timely correct, these payroll errors from occurring. Effect These payroll errors resulted in over and under charges to the federal awards which could result in questioned costs. Questioned Costs Not determinable. Repeat Finding This is a repeat finding of finding 2022-001. Recommendation We recommend the Organization evaluate where manual payroll processes could be automated to reduce input errors and provide continuous oversight of cost allocations to ensure they are accurately calculated and recorded. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2023-003
Finding 2023-003 Significant deficiency in internal control over compliance for procurement standards Federal Agency: United States Agency for International Development Program Titles: USAID Foreign Assistance for Programs Overseas Assistance Listing Number: 98.001 Pass-Through Entity: N/A Award Numbers: 72065618CA00001 Award Periods: May 14, 2018 through April 23, 2024 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D ‐ Post Federal Award Requirements, Section 200.320, Internal Controls, require that a non‐Federal entity can use noncompetitive procurement if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold; (2) The item is available only from a single source: (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation: (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity or: (5) After solicitation of a number of sources, competition is determined inadequate. Condition/Context In our sampling of procurement transactions, we found two procurements utilizing the noncompetitive procurement method that did not contain adequate justification for the use of the noncompetitive procurement method. Management asserted to have requested and obtained approval from the funder. However, the communication we examined between VillageReach and USAID did not explicitly authorize the use of this specific vendor for these noncompetitive procurement transactions. Cause The Organization’s justification for the use of the noncompetitive method was not adequately documented. Effect The use of the noncompetitive procurement method was not adequately justified given the documentation tested. Questioned Costs Not determinable Repeat Finding No Recommendation We recommend the Organization enforces the use of its noncompetitive procurement justification form and ensure that the applicable circumstance is adequately documented and justified. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2023-002
Finding 2023-002 Significant deficiency in internal control over compliance for allowable costs related to cost allocation. Federal Agency: United States Agency for International Development Program Titles: USAID Foreign Assistance for Programs Overseas Assistance Listing Number: 98.001 Pass-Through Entity: N/A Award Numbers: 72065618CA00001 Award Periods: May 14, 2018 through April 23, 2024 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D ‐ Post Federal Award Requirements, Section 200.303, Internal Controls, require that a non‐Federal entity must 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/Context In our review of one employee's compensation, we discovered that the gross salary registered in the allocator for January did not account for travel pay. This oversight led to an undercharge of $371 to the federal award associated with our selection. The issue was not unique to this incident, resulting in a total under allocation to the award for January amounting to $658. It is important to note, however, that all affected employees received the correct pay for this month. Upon reviewing the records of three other employees, we found that the gross salary entered in the allocator did not include holiday or retroactive pay. Consequently, this resulted in an undercharge to the federal award, amounting $4,077. However, despite this discrepancy, all the employees were paid correctly. Cause The Organization’s internal controls failed to prevent, or detect and timely correct, these payroll errors from occurring. Effect These payroll errors resulted in over and under charges to the federal awards which could result in questioned costs. Questioned Costs Not determinable. Repeat Finding This is a repeat finding of finding 2022-001. Recommendation We recommend the Organization evaluate where manual payroll processes could be automated to reduce input errors and provide continuous oversight of cost allocations to ensure they are accurately calculated and recorded. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2023-003
Finding 2023-003 Significant deficiency in internal control over compliance for procurement standards Federal Agency: United States Agency for International Development Program Titles: USAID Foreign Assistance for Programs Overseas Assistance Listing Number: 98.001 Pass-Through Entity: N/A Award Numbers: 72065618CA00001 Award Periods: May 14, 2018 through April 23, 2024 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D ‐ Post Federal Award Requirements, Section 200.320, Internal Controls, require that a non‐Federal entity can use noncompetitive procurement if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold; (2) The item is available only from a single source: (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation: (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity or: (5) After solicitation of a number of sources, competition is determined inadequate. Condition/Context In our sampling of procurement transactions, we found two procurements utilizing the noncompetitive procurement method that did not contain adequate justification for the use of the noncompetitive procurement method. Management asserted to have requested and obtained approval from the funder. However, the communication we examined between VillageReach and USAID did not explicitly authorize the use of this specific vendor for these noncompetitive procurement transactions. Cause The Organization’s justification for the use of the noncompetitive method was not adequately documented. Effect The use of the noncompetitive procurement method was not adequately justified given the documentation tested. Questioned Costs Not determinable Repeat Finding No Recommendation We recommend the Organization enforces the use of its noncompetitive procurement justification form and ensure that the applicable circumstance is adequately documented and justified. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.