Audit 310612

FY End
2023-09-30
Total Expended
$698.29M
Findings
20
Programs
66
Organization: Family Health International (NC)
Year: 2023 Accepted: 2024-06-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403578 2023-001 Significant Deficiency Yes L
403579 2023-001 Significant Deficiency Yes L
403580 2023-002 Significant Deficiency - I
403581 2023-002 Significant Deficiency - I
403582 2023-001 Significant Deficiency Yes L
403583 2023-001 Significant Deficiency Yes L
403584 2023-001 Significant Deficiency Yes L
403585 2023-001 Significant Deficiency Yes L
403586 2023-001 Significant Deficiency Yes L
403587 2023-001 Significant Deficiency Yes L
980020 2023-001 Significant Deficiency Yes L
980021 2023-001 Significant Deficiency Yes L
980022 2023-002 Significant Deficiency - I
980023 2023-002 Significant Deficiency - I
980024 2023-001 Significant Deficiency Yes L
980025 2023-001 Significant Deficiency Yes L
980026 2023-001 Significant Deficiency Yes L
980027 2023-001 Significant Deficiency Yes L
980028 2023-001 Significant Deficiency Yes L
980029 2023-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
98.U04 United States Agency for International Development Foreign Assistance for Economic Growth $3.50M Yes 1
93.855 Allergy and Infectious Diseases Research $1.72M - 0
17.270 Reentry Employment Opportunities $1.16M - 0
93.600 Head Start $924,722 - 0
19.221 Regional Democracy Program $796,388 - 0
93.U03 National Health Initiatives, Strategies and Action Plans for Chronic Disease $764,751 - 0
42.U10 2020 Open World Program $735,563 - 0
85.U10 Millenium Challenge Corporation $694,669 - 0
19.345 International Programs to Support Democracy, Human Rights and Labor $617,968 - 0
93.855 Allergy and Infectious Diseases Research $541,803 - 0
98.007 Food for Peace Development Assistance Program (dap) $391,303 - 0
93.067 Global Aids $371,736 Yes 0
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health $356,652 Yes 0
19.501 Public Diplomacy Programs for Afghanistan and Pakistan $355,360 - 0
98.U08 United States Agency for International Development Foreign Assistance for Health Programs Overseas $315,839 - 0
19.301 The Secretary's Office of the Global Partnership Initiative (s/gpi) Grant Programs $275,968 - 0
93.941 Hiv Demonstration, Research, Public and Professional Education Projects $150,214 - 0
19.009 Academic Exchange Programs - Undergraduate Programs $136,661 - 0
93.865 Child Health and Human Development Extramural Research $131,717 - 0
19.432 Academic Exchange Programs - Educational Advising and Student Services $120,435 - 0
98.001 Usaid Foreign Assistance for Programs Overseas $119,534 - 0
16.812 Second Chance Act Reentry Initiative $111,446 - 0
93.084 Prevention of Disease, Disability, and Death by Infectious Diseases $106,965 - 0
84.048 21st Century Act - Michigan Department of Education $74,467 - 0
19.021 Investing in People in the Middle East and North Africa $70,490 - 0
10.608 Food for Education $60,016 - 0
19.415 Professional and Cultural Exchange Programs - Citizen Exchanges $49,910 Yes 0
19.500 Middle East Partnership Initiative $41,052 - 0
93.137 Community Programs to Improve Minority Health Grant Program $35,248 - 0
16.815 Tribal Civil and Criminal Legal Assistance Grants, Training and Technical Assistance $34,246 - 0
93.001 Health Marketing Communic $33,581 - 0
84.U10 Fsu Gear Up Yr3 – Fayetteville State University $30,832 - 0
19.900 Aeeca/esf Pd Programs $27,620 - 0
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $26,887 - 0
98.U07 United States Agency for International Development Foreign Assistance for Education and Social Services Programs Overseas $24,500 - 0
93.279 Drug Abuse and Addiction Research Programs $16,102 - 0
47.076 Stem Education (formerly Education and Human Resources) $12,633 - 0
19.517 Overseas Refugee Assistance Programs for Africa $7,185 - 0
19.421 Academic Exchange Programs - English Language Programs $6,804 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $3,282 - 0
93.RD1 Tams Finance Cntr Liberia $2,321 - 0
19.029 The U.s. President's Emergency Plan for Aids Relief Programs $1,915 - 0
93.242 Mental Health Research Grants $1,896 - 0
19.408 Academic Exchange Programs - Teachers $1,579 - 0
12.420 Military Medical Research and Development $337 - 0
93.936 National Institutes of Health Acquired Immunodeficiency Syndrome Research Loan Repayment Program $231 - 0
19.U10 Zero to Three National Center for Infants, Toddlers & Families $190 - 0
93.U01 Training and Technical Assistance Network Program $178 Yes 0
19.040 Public Diplomacy Programs $128 - 0
84.326 Special Education Technical Assistance and Dissemination to Improve Services and Results for Children with Disabilities $78 - 0
93.307 Minority Health and Health Disparities Research $64 - 0
98.U10 United States Agency for International Development Foreign Assistance for Health Programs Overseas $47 - 0
10.001 Agricultural Research Basic and Applied Research $42 - 0
19.402 Professional and Cultural Exchange Programs - International Visitor Leadership Program $1 - 0
93.U02 National Health Initiatives, Strategies and Action Plans for Infectious Disease $0 Yes 0
84.048 Perkins Group Program - Michigan Department of Education $-6 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $-29 - 0
98.U02 United States Agency for International Development Foreign Assistance for Democracy, Human Rights Governance and Security Programs Overseas $-44 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $-44 - 0
98.U06 United States Agency for International Development Foreign Assistance for Education and Social Services Programs Overseas $-108 - 0
93.U10 Centers for Disease Control and Prevention $-156 - 0
19.600 Bureau of Near Eastern Affairs $-455 Yes 0
93.135 Centers for Research and Demonstration for Health Promotion and Disease Prevention $-536 - 0
93.978 Sexually Transmitted Diseases (std) Provider Education Grants $-1,946 - 0
93.840 Translation and Implementation Science Research for Heart, Lung, Blood Diseases, and Sleep Disorders $-5,156 - 0
12.350 Department of Defense Hiv/aids Prevention Program $-114,219 - 0

Contacts

Name Title Type
VRAASTY11EA3 Malia Dove Auditee
9195447040 Meredith Friga Auditor
No contacts on file

Notes to SEFA

Title: 1. Background Accounting Policies: Expenses are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the OMB Circular A-122, Cost Principles for Non-Profit Organizations or the cost principles in Subpart E of the Uniform Guidance. Under those cost principles, certain types of expenses are not allowable or are limited to reimbursement. Grant funds are expended for purposes specified by the granting agencies. Expenses include a portion of costs associated with general activities (indirect costs) which are allocated to Federal awards per the Company’s negotiated indirect cost rate agreement (NICRA). Negative amounts on the SEFA are adjustments to expenditures reported in the prior year. De Minimis Rate Used: N Rate Explanation: FHI coordinates with its cognizant agency annually for final and provisional negotiated indirect cost rates. The accompanying Schedule of Expenditures of Federal Awards (SEFA) was prepared in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and summarizes the federal expenditures of FHI 360 under programs of the federal government for the year ended September 30, 2023. Because the SEFA presents a selected portion of the operations of FHI 360, it is not intended to and does not present the financial position, changes in net assets, or cash flows of FHI 360. For purposes of the SEFA, federal awards include awards entered into directly, and via passthrough, between FHI 360 and agencies and departments of the federal government.
Title: 2. Basis of Accounting Accounting Policies: Expenses are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the OMB Circular A-122, Cost Principles for Non-Profit Organizations or the cost principles in Subpart E of the Uniform Guidance. Under those cost principles, certain types of expenses are not allowable or are limited to reimbursement. Grant funds are expended for purposes specified by the granting agencies. Expenses include a portion of costs associated with general activities (indirect costs) which are allocated to Federal awards per the Company’s negotiated indirect cost rate agreement (NICRA). Negative amounts on the SEFA are adjustments to expenditures reported in the prior year. De Minimis Rate Used: N Rate Explanation: FHI coordinates with its cognizant agency annually for final and provisional negotiated indirect cost rates. Expenses are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the OMB Circular A-122, Cost Principles for Non-Profit Organizations or the cost principles in Subpart E of the Uniform Guidance. Under those cost principles, certain types of expenses are not allowable or are limited to reimbursement. Grant funds are expended for purposes specified by the granting agencies. Expenses include a portion of costs associated with general activities (indirect costs) which are allocated to Federal awards per the Company’s negotiated indirect cost rate agreement (NICRA). Negative amounts on the SEFA are adjustments to expenditures reported in the prior year.
Title: 3. SEFA Presentation Accounting Policies: Expenses are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the OMB Circular A-122, Cost Principles for Non-Profit Organizations or the cost principles in Subpart E of the Uniform Guidance. Under those cost principles, certain types of expenses are not allowable or are limited to reimbursement. Grant funds are expended for purposes specified by the granting agencies. Expenses include a portion of costs associated with general activities (indirect costs) which are allocated to Federal awards per the Company’s negotiated indirect cost rate agreement (NICRA). Negative amounts on the SEFA are adjustments to expenditures reported in the prior year. De Minimis Rate Used: N Rate Explanation: FHI coordinates with its cognizant agency annually for final and provisional negotiated indirect cost rates. The expenses reported on the SEFA are inclusive of indirect costs incurred during the year ended September 30, 2023. FHI 360 did not elect to use the 10% de minimis indirect cost rate permitted by the Uniform Guidance.

Finding Details

Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-002 – Procurement and Suspension and Debarment Identification of the federal program: Federal Agency: Department of Health and Human Services – Centers for Disease Control and Prevention United States Department of State Assistance Listing: 93.U02 – National Health Initiatives, Strategies and Action Plans for Infectious Diseases 19.415 – Professional and Cultural Exchange Programs – Citizen Exchanges Federal Award Identification Number: 93.U02 – HHSD2002015M88157B – 75D30120F08105 19.415 – SECAGD22CA0060 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the FederalFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 84 Section III – Federal Award Findings and Questioned Costs (continued) Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: During our testing of procurement and suspension and debarment compliance requirements we noted the following: • Under 93.U02, we noted for 5 transactions out of 25 tested, FHI 360 relied on the screening for suspension and debarment performed by a third-party service provider without having any additional control to validate that these specific vendors were part of the screening performed by the third-party service provider in their continuous monitoring procedures. • Under 19.415, we noted for 1 transaction out of 25 samples tested, FHI 360 did not perform the screening of the vendor prior to setting up the vendor in the system and executing the contract. Cause: Under 93.U02, FHI 360 performed suspension and debarment checks in prior periods and therefore relied on the “continuous monitoring” performed by its third-party service provider to monitor the suspension and debarment status. Under 19.415, FHI 360 performed suspension and debarment check after setting up the vendor in the system and executing the contract. Effect or Potential Effect: Under 93.U02, In the absence of having additional controls in place to verify and validate that the continuous monitoring performed by the third-party service provider includes all vendors and suppliers, FHI 360 could potentially contract with a vendor who is suspended or debarred and not detect the non-compliance timely. Similarly, under 19.415, FHI 360 could execute a contract with a vendor who is suspended or debarred. Questioned costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 85 Section III – Federal Award Findings and Questioned Costs (continued) Context: FHI 360 internally performs suspension and debarment checks of its vendors and suppliers. FHI 360 also utilizes a third-party service provider to perform continuous monitoring of its vendors and suppliers for suspension and debarment and receives a daily monitoring report. Although, FHI 360 received a daily monitoring report from the service provider that showed there were no matches for vendors enrolled throughout the fiscal period, the third-party service provider does not have a SOC 1 report and there were no additional controls FHI implemented to rely on the completeness of the results provided by the third-party service provider. The total amount of procurement transactions subject to suspension and debarment screening under 19.415 for FY 2023 is $1,154,561. Total expenditures reported on the Schedule of Expenditures of Federal Awards is $4,981,200. The total amount of procurement transactions subject to suspension and debarment screening under 93.U02 for FY 2023 is $3,3319,092. Total expenditures reported on the Schedule of Expenditures of Federal Awards is $9,160,477. Identification as a Repeat Finding: This is not a repeat finding from prior year. Recommendation: We recommend FHI 360 monitor new vendor set up in the system and ensure the screening for suspension and debarment is performed prior to executing a contract with a vendor. We recommend FHI 360 implement additional validation controls, when relying on continuous monitoring for suspension and debarment checks performed by any third-party service provider.Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 86 Section III – Federal Award Findings and Questioned Costs (continued) Views of Responsible Officials: Management will reemphasize its established policies and procedures around the restricted party screenings’ (RPS) importance highlighting the timeliness component of when the RPS is required. Management will implement additional controls to ensure the suite of controls around its use of the third party service provider adequately minimizes any related risks. Specifically, we will periodically perform RPS via the service provider and the source databases to confirm results are the same. We will also periodically compare the complete list of active vendors within our internal vendor management systems reconciles to the list of vendors within the service provider where we are relying on continuous monitoring.
Finding 2023-002 – Procurement and Suspension and Debarment Identification of the federal program: Federal Agency: Department of Health and Human Services – Centers for Disease Control and Prevention United States Department of State Assistance Listing: 93.U02 – National Health Initiatives, Strategies and Action Plans for Infectious Diseases 19.415 – Professional and Cultural Exchange Programs – Citizen Exchanges Federal Award Identification Number: 93.U02 – HHSD2002015M88157B – 75D30120F08105 19.415 – SECAGD22CA0060 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the FederalFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 84 Section III – Federal Award Findings and Questioned Costs (continued) Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: During our testing of procurement and suspension and debarment compliance requirements we noted the following: • Under 93.U02, we noted for 5 transactions out of 25 tested, FHI 360 relied on the screening for suspension and debarment performed by a third-party service provider without having any additional control to validate that these specific vendors were part of the screening performed by the third-party service provider in their continuous monitoring procedures. • Under 19.415, we noted for 1 transaction out of 25 samples tested, FHI 360 did not perform the screening of the vendor prior to setting up the vendor in the system and executing the contract. Cause: Under 93.U02, FHI 360 performed suspension and debarment checks in prior periods and therefore relied on the “continuous monitoring” performed by its third-party service provider to monitor the suspension and debarment status. Under 19.415, FHI 360 performed suspension and debarment check after setting up the vendor in the system and executing the contract. Effect or Potential Effect: Under 93.U02, In the absence of having additional controls in place to verify and validate that the continuous monitoring performed by the third-party service provider includes all vendors and suppliers, FHI 360 could potentially contract with a vendor who is suspended or debarred and not detect the non-compliance timely. Similarly, under 19.415, FHI 360 could execute a contract with a vendor who is suspended or debarred. Questioned costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 85 Section III – Federal Award Findings and Questioned Costs (continued) Context: FHI 360 internally performs suspension and debarment checks of its vendors and suppliers. FHI 360 also utilizes a third-party service provider to perform continuous monitoring of its vendors and suppliers for suspension and debarment and receives a daily monitoring report. Although, FHI 360 received a daily monitoring report from the service provider that showed there were no matches for vendors enrolled throughout the fiscal period, the third-party service provider does not have a SOC 1 report and there were no additional controls FHI implemented to rely on the completeness of the results provided by the third-party service provider. The total amount of procurement transactions subject to suspension and debarment screening under 19.415 for FY 2023 is $1,154,561. Total expenditures reported on the Schedule of Expenditures of Federal Awards is $4,981,200. The total amount of procurement transactions subject to suspension and debarment screening under 93.U02 for FY 2023 is $3,3319,092. Total expenditures reported on the Schedule of Expenditures of Federal Awards is $9,160,477. Identification as a Repeat Finding: This is not a repeat finding from prior year. Recommendation: We recommend FHI 360 monitor new vendor set up in the system and ensure the screening for suspension and debarment is performed prior to executing a contract with a vendor. We recommend FHI 360 implement additional validation controls, when relying on continuous monitoring for suspension and debarment checks performed by any third-party service provider.Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 86 Section III – Federal Award Findings and Questioned Costs (continued) Views of Responsible Officials: Management will reemphasize its established policies and procedures around the restricted party screenings’ (RPS) importance highlighting the timeliness component of when the RPS is required. Management will implement additional controls to ensure the suite of controls around its use of the third party service provider adequately minimizes any related risks. Specifically, we will periodically perform RPS via the service provider and the source databases to confirm results are the same. We will also periodically compare the complete list of active vendors within our internal vendor management systems reconciles to the list of vendors within the service provider where we are relying on continuous monitoring.
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-002 – Procurement and Suspension and Debarment Identification of the federal program: Federal Agency: Department of Health and Human Services – Centers for Disease Control and Prevention United States Department of State Assistance Listing: 93.U02 – National Health Initiatives, Strategies and Action Plans for Infectious Diseases 19.415 – Professional and Cultural Exchange Programs – Citizen Exchanges Federal Award Identification Number: 93.U02 – HHSD2002015M88157B – 75D30120F08105 19.415 – SECAGD22CA0060 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the FederalFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 84 Section III – Federal Award Findings and Questioned Costs (continued) Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: During our testing of procurement and suspension and debarment compliance requirements we noted the following: • Under 93.U02, we noted for 5 transactions out of 25 tested, FHI 360 relied on the screening for suspension and debarment performed by a third-party service provider without having any additional control to validate that these specific vendors were part of the screening performed by the third-party service provider in their continuous monitoring procedures. • Under 19.415, we noted for 1 transaction out of 25 samples tested, FHI 360 did not perform the screening of the vendor prior to setting up the vendor in the system and executing the contract. Cause: Under 93.U02, FHI 360 performed suspension and debarment checks in prior periods and therefore relied on the “continuous monitoring” performed by its third-party service provider to monitor the suspension and debarment status. Under 19.415, FHI 360 performed suspension and debarment check after setting up the vendor in the system and executing the contract. Effect or Potential Effect: Under 93.U02, In the absence of having additional controls in place to verify and validate that the continuous monitoring performed by the third-party service provider includes all vendors and suppliers, FHI 360 could potentially contract with a vendor who is suspended or debarred and not detect the non-compliance timely. Similarly, under 19.415, FHI 360 could execute a contract with a vendor who is suspended or debarred. Questioned costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 85 Section III – Federal Award Findings and Questioned Costs (continued) Context: FHI 360 internally performs suspension and debarment checks of its vendors and suppliers. FHI 360 also utilizes a third-party service provider to perform continuous monitoring of its vendors and suppliers for suspension and debarment and receives a daily monitoring report. Although, FHI 360 received a daily monitoring report from the service provider that showed there were no matches for vendors enrolled throughout the fiscal period, the third-party service provider does not have a SOC 1 report and there were no additional controls FHI implemented to rely on the completeness of the results provided by the third-party service provider. The total amount of procurement transactions subject to suspension and debarment screening under 19.415 for FY 2023 is $1,154,561. Total expenditures reported on the Schedule of Expenditures of Federal Awards is $4,981,200. The total amount of procurement transactions subject to suspension and debarment screening under 93.U02 for FY 2023 is $3,3319,092. Total expenditures reported on the Schedule of Expenditures of Federal Awards is $9,160,477. Identification as a Repeat Finding: This is not a repeat finding from prior year. Recommendation: We recommend FHI 360 monitor new vendor set up in the system and ensure the screening for suspension and debarment is performed prior to executing a contract with a vendor. We recommend FHI 360 implement additional validation controls, when relying on continuous monitoring for suspension and debarment checks performed by any third-party service provider.Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 86 Section III – Federal Award Findings and Questioned Costs (continued) Views of Responsible Officials: Management will reemphasize its established policies and procedures around the restricted party screenings’ (RPS) importance highlighting the timeliness component of when the RPS is required. Management will implement additional controls to ensure the suite of controls around its use of the third party service provider adequately minimizes any related risks. Specifically, we will periodically perform RPS via the service provider and the source databases to confirm results are the same. We will also periodically compare the complete list of active vendors within our internal vendor management systems reconciles to the list of vendors within the service provider where we are relying on continuous monitoring.
Finding 2023-002 – Procurement and Suspension and Debarment Identification of the federal program: Federal Agency: Department of Health and Human Services – Centers for Disease Control and Prevention United States Department of State Assistance Listing: 93.U02 – National Health Initiatives, Strategies and Action Plans for Infectious Diseases 19.415 – Professional and Cultural Exchange Programs – Citizen Exchanges Federal Award Identification Number: 93.U02 – HHSD2002015M88157B – 75D30120F08105 19.415 – SECAGD22CA0060 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the FederalFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 84 Section III – Federal Award Findings and Questioned Costs (continued) Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: During our testing of procurement and suspension and debarment compliance requirements we noted the following: • Under 93.U02, we noted for 5 transactions out of 25 tested, FHI 360 relied on the screening for suspension and debarment performed by a third-party service provider without having any additional control to validate that these specific vendors were part of the screening performed by the third-party service provider in their continuous monitoring procedures. • Under 19.415, we noted for 1 transaction out of 25 samples tested, FHI 360 did not perform the screening of the vendor prior to setting up the vendor in the system and executing the contract. Cause: Under 93.U02, FHI 360 performed suspension and debarment checks in prior periods and therefore relied on the “continuous monitoring” performed by its third-party service provider to monitor the suspension and debarment status. Under 19.415, FHI 360 performed suspension and debarment check after setting up the vendor in the system and executing the contract. Effect or Potential Effect: Under 93.U02, In the absence of having additional controls in place to verify and validate that the continuous monitoring performed by the third-party service provider includes all vendors and suppliers, FHI 360 could potentially contract with a vendor who is suspended or debarred and not detect the non-compliance timely. Similarly, under 19.415, FHI 360 could execute a contract with a vendor who is suspended or debarred. Questioned costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 85 Section III – Federal Award Findings and Questioned Costs (continued) Context: FHI 360 internally performs suspension and debarment checks of its vendors and suppliers. FHI 360 also utilizes a third-party service provider to perform continuous monitoring of its vendors and suppliers for suspension and debarment and receives a daily monitoring report. Although, FHI 360 received a daily monitoring report from the service provider that showed there were no matches for vendors enrolled throughout the fiscal period, the third-party service provider does not have a SOC 1 report and there were no additional controls FHI implemented to rely on the completeness of the results provided by the third-party service provider. The total amount of procurement transactions subject to suspension and debarment screening under 19.415 for FY 2023 is $1,154,561. Total expenditures reported on the Schedule of Expenditures of Federal Awards is $4,981,200. The total amount of procurement transactions subject to suspension and debarment screening under 93.U02 for FY 2023 is $3,3319,092. Total expenditures reported on the Schedule of Expenditures of Federal Awards is $9,160,477. Identification as a Repeat Finding: This is not a repeat finding from prior year. Recommendation: We recommend FHI 360 monitor new vendor set up in the system and ensure the screening for suspension and debarment is performed prior to executing a contract with a vendor. We recommend FHI 360 implement additional validation controls, when relying on continuous monitoring for suspension and debarment checks performed by any third-party service provider.Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 86 Section III – Federal Award Findings and Questioned Costs (continued) Views of Responsible Officials: Management will reemphasize its established policies and procedures around the restricted party screenings’ (RPS) importance highlighting the timeliness component of when the RPS is required. Management will implement additional controls to ensure the suite of controls around its use of the third party service provider adequately minimizes any related risks. Specifically, we will periodically perform RPS via the service provider and the source databases to confirm results are the same. We will also periodically compare the complete list of active vendors within our internal vendor management systems reconciles to the list of vendors within the service provider where we are relying on continuous monitoring.
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented
Finding 2023-001 – Reporting – Federal Funding Accountability and Transparency Act (FFATA) Identification of the federal program: Federal Agency: United States Agency for International Development Assistance Listing: 98.001 – USAID Foreign Assistance for Programs Overseas 98.U04 – USAID Foreign Assistance for Economic Growth Federal Award Identification Number 98.001 – 7200AA19CA00002; 72066418CA00001; 72044020CA00002; 72049218CA00008; 72060822CA00002; 72066322CA00005 98.U04 – 72026320C00005 Award Year: FY 2022 – 2023 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: “The 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”Family Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 80 Section III – Federal Award Findings and Questioned Costs (continued) As per 2 CFR Part 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: We noted the following matters during our testing of the Federal Funding Accountability and Transparency Act (FFATA) reporting compliance requirements: See chart/table in the schedule of findings and questioned costs Cause: A thorough review of the required data elements prior to submission of the reports did not occur consistently in FY 2023. In addition, a detailed review of all new subaward agreements and/or modifications made during FY 2023 was not performed to identify reports that should have been submitted. Effect or Potential Effect: FHI 360 did not report accurate information or did not submit the required reports for first-tier subawards of $30,000 or more causing them not to be in compliance with federal reporting requirements. Questioned Costs: NoneFamily Health International Schedule of Findings and Questioned Costs (continued) Year Ended September 30, 2023 2311-4384437 82 Section III – Federal Award Findings and Questioned Costs (continued) Context: Under the Transparency Act reporting requirements, each FFATA report includes the following key data elements: 1) Subawardee name, 2) Subawardee DUNS #, 3) Amount of Subaward, 4) Subaward Obligation/Action Date, 5) Subaward Number, 6) Subaward Project Description, 7) Subawardee Names and Compensation of Highly Compensated Officers, if thresholds are met and 8) Date of Report Submission. Testing of the FFATA reports included each of these data elements as well as verifying for timely submissions. The table presented above lists the specific data elements where errors were detected as well as any untimely or non-submission of the reports. Total federal expenditures under 98.001 and 98.U04 were $ 509,476,610 and $3,502,691, respectively, for the year ended September 30, 2023. Identification as a Repeat Finding: This is a repeat finding from prior year (2022-001). Recommendation: We recommend FHI 360 strengthen its internal controls and procedures over FFATA reporting to ensure they are both timely and accurately submitted to be in compliance with the federal reporting requirements. Views of Responsible Officials: Management will implement additional actions to enhance and strengthen previous year actions including global communications and meetings with key management teams, targeted and detailed refresher training on FFATA requirements and completion of the FSRS template via an e-module, and additional review of FFATA submissions via a centralized team to identify prospective transactions and perform a final review of data quality prior to data entry in FSRS. The additional review will focus on completeness and accuracy of submitted data and timeliness of submissions. Management notes there were prior year FFATA findings related to timeliness of submissions which EY concluded upon in May 2023, during the current fiscal period. The corrective action plan in response to the prior year findings was immediately developed and implemented. This fiscal year’s control exceptions related to timeliness were prior to the material findings being concluded upon and the corrective action plan being implemented