FAC Explorer

Audit 317575

FY End
2022-12-31
Total Expended
$518.19M
Findings
4
Programs
33
Organization: Save the Children Federation, INC and Related Entities (CT)
Year: 2022 Accepted: 2024-08-20
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
484690 2022-001 Material Weakness - P
484691 2022-001 Material Weakness - P
1061132 2022-001 Material Weakness - P
1061133 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
19.517 Overseas Refugee Assistance Programs for Africa $12.37M - 0
19.518 Overseas Refugee Assistance Programs for Western Hemisphere $8.26M - 0
98.U04 Advancing Nutrition Multiple Work Orders $5.01M - 0
98.007 Food for Peace Development Assistance Program (dap) $4.42M - 0
19.519 Overseas Refugee Assistance Program for Near East and South Asia $2.97M Yes 1
93.600 Head Start $2.06M Yes 0
19.511 Overseas Refugee Assistance Programs for East Asia $1.33M - 0
93.558 Temporary Assistance for Needy Families $1.17M Yes 0
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $978,621 - 0
84.215 Fund for the Improvement of Education $848,242 - 0
98.002 Cooperative Development Program (cdp) $772,483 - 0
17.401 International Labor Programs $655,734 - 0
98.U01 Ethiopia Household Economy Approach Utilization (hea-U) $612,440 - 0
94.011 Foster Grandparent Program $612,300 - 0
19.522 Overseas Refugee Assistance Programs for Strategic Global Priorities $568,616 - 0
93.575 Child Care and Development Block Grant $536,753 - 0
98.U03 Accelerated Quality Learning for Somali Children and Youth $505,511 - 0
98.001 Usaid Foreign Assistance for Programs Overseas $438,659 Yes 0
23.002 Appalachian Area Development $377,306 - 0
84.425 Education Stabilization Fund $291,913 Yes 0
17.280 Workforce Investment Act (wia) Dislocated Worker National Reserve Demonstration Grants $269,185 - 0
17.277 Workforce Investment Act (wia) National Emergency Grants $226,191 - 0
98.U05 Cambodia Inclusive Primary Education Activity (ipea) $151,138 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $129,320 - 0
93.U01 Temporary Assignment of Staff to U.s. Department of Health and Human Services $114,647 - 0
19.801 Office of Global Women's Issues $69,652 - 0
10.558 Child and Adult Care Food Program $56,749 - 0
93.242 Mental Health Research Grants $26,905 - 0
84.287 Twenty-First Century Community Learning Centers $10,867 - 0
98.U02 Achieving Sustainability Through Local Health Systems (aslhs) Multiple Work Orders $6,715 - 0
93.981 Improving Student Health and Academic Achievement Through Nutrition, Physical Activity and the Management of Chronic Conditions in Schools $5,000 - 0
10.608 Food for Education $-126 - 0
19.520 Overseas Refugee Assistance Programs for Europe $-2,930 - 0

Contacts

Name Title Type
V2BDJK5JZU56 Corey Dillow Auditee
8598991162 Shana Block Auditor
No contacts on file

Notes to SEFA

Title: (1) Basis of Presentation Accounting Policies: (1) Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity (including indirect cost recovery amounts) of Save the Children Federation, Inc. and related entities (the Organization), and is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Program income is recorded in the Schedule when expended. Negative amounts listed on the Schedule represent adjustments to amounts included on prior years’ Schedules. Catalog of Federal Domestic Assistance (CFDA) also known as Assistance Listing Numbers (ALN) are provided when available. (2) Valuation of Nonmonetary Assistance Agricultural and other commodities are recorded at an ascribed amount representing the fair value determined by the Commodity Credit Corporation (as an agency of the U.S. government). Donated freight is recorded based on the carrier’s bill of lading. The value of nonmonetary assistance received for the year ended December 31, 2022 was approximately $9.8 million. De Minimis Rate Used: Both Rate Explanation: (3) Indirect Cost Rate Save the Children Federation, Inc. (SCUS) has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In connection with SCUS’s ongoing relationship with the United States Agency for International Development and the regulatory provision for its negotiated indirect cost rate agreement (NICRA), SCUS has been involved in finalizing provisional rates each year. As of December 31, 2022, SCUS had finalized rates through fiscal year 2019, and provisional rates for fiscal years 2020, 2021, and 2022. In May 2023, SCUS received finalized rates for fiscal year 2020 and 2021, and has been given a new provisional rate for fiscal year 2022 and onward until amended. Provisional rates provided by the government are charged to the grants and adjusted in the period after the final rate is determined. Related entity SCUS Head Start Programs, Inc. (Head Start) has elected to use the 10% de minimis indirect cost rate and other specific programs follow statutory exclusions on the use of NICRA. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity (including indirect cost recovery amounts) of Save the Children Federation, Inc. and related entities (the Organization), and is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Program income is recorded in the Schedule when expended. Negative amounts listed on the Schedule represent adjustments to amounts included on prior years’ Schedules. Catalog of Federal Domestic Assistance (CFDA) also known as Assistance Listing Numbers (ALN) are provided when available.
Title: (2) Valuation of Nonmonetary Assistance Accounting Policies: (1) Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity (including indirect cost recovery amounts) of Save the Children Federation, Inc. and related entities (the Organization), and is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Program income is recorded in the Schedule when expended. Negative amounts listed on the Schedule represent adjustments to amounts included on prior years’ Schedules. Catalog of Federal Domestic Assistance (CFDA) also known as Assistance Listing Numbers (ALN) are provided when available. (2) Valuation of Nonmonetary Assistance Agricultural and other commodities are recorded at an ascribed amount representing the fair value determined by the Commodity Credit Corporation (as an agency of the U.S. government). Donated freight is recorded based on the carrier’s bill of lading. The value of nonmonetary assistance received for the year ended December 31, 2022 was approximately $9.8 million. De Minimis Rate Used: Both Rate Explanation: (3) Indirect Cost Rate Save the Children Federation, Inc. (SCUS) has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In connection with SCUS’s ongoing relationship with the United States Agency for International Development and the regulatory provision for its negotiated indirect cost rate agreement (NICRA), SCUS has been involved in finalizing provisional rates each year. As of December 31, 2022, SCUS had finalized rates through fiscal year 2019, and provisional rates for fiscal years 2020, 2021, and 2022. In May 2023, SCUS received finalized rates for fiscal year 2020 and 2021, and has been given a new provisional rate for fiscal year 2022 and onward until amended. Provisional rates provided by the government are charged to the grants and adjusted in the period after the final rate is determined. Related entity SCUS Head Start Programs, Inc. (Head Start) has elected to use the 10% de minimis indirect cost rate and other specific programs follow statutory exclusions on the use of NICRA. Agricultural and other commodities are recorded at an ascribed amount representing the fair value determined by the Commodity Credit Corporation (as an agency of the U.S. government). Donated freight is recorded based on the carrier’s bill of lading. The value of nonmonetary assistance received for the year ended December 31, 2022 was approximately $9.8 million.
Title: (3) Indirect Cost Rate Accounting Policies: (1) Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity (including indirect cost recovery amounts) of Save the Children Federation, Inc. and related entities (the Organization), and is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Program income is recorded in the Schedule when expended. Negative amounts listed on the Schedule represent adjustments to amounts included on prior years’ Schedules. Catalog of Federal Domestic Assistance (CFDA) also known as Assistance Listing Numbers (ALN) are provided when available. (2) Valuation of Nonmonetary Assistance Agricultural and other commodities are recorded at an ascribed amount representing the fair value determined by the Commodity Credit Corporation (as an agency of the U.S. government). Donated freight is recorded based on the carrier’s bill of lading. The value of nonmonetary assistance received for the year ended December 31, 2022 was approximately $9.8 million. De Minimis Rate Used: Both Rate Explanation: (3) Indirect Cost Rate Save the Children Federation, Inc. (SCUS) has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In connection with SCUS’s ongoing relationship with the United States Agency for International Development and the regulatory provision for its negotiated indirect cost rate agreement (NICRA), SCUS has been involved in finalizing provisional rates each year. As of December 31, 2022, SCUS had finalized rates through fiscal year 2019, and provisional rates for fiscal years 2020, 2021, and 2022. In May 2023, SCUS received finalized rates for fiscal year 2020 and 2021, and has been given a new provisional rate for fiscal year 2022 and onward until amended. Provisional rates provided by the government are charged to the grants and adjusted in the period after the final rate is determined. Related entity SCUS Head Start Programs, Inc. (Head Start) has elected to use the 10% de minimis indirect cost rate and other specific programs follow statutory exclusions on the use of NICRA. Save the Children Federation, Inc. (SCUS) has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In connection with SCUS’s ongoing relationship with the United States Agency for International Development and the regulatory provision for its negotiated indirect cost rate agreement (NICRA), SCUS has been involved in finalizing provisional rates each year. As of December 31, 2022, SCUS had finalized rates through fiscal year 2019, and provisional rates for fiscal years 2020, 2021, and 2022. In May 2023, SCUS received finalized rates for fiscal year 2020 and 2021, and has been given a new provisional rate for fiscal year 2022 and onward until amended. Provisional rates provided by the government are charged to the grants and adjusted in the period after the final rate is determined. Related entity SCUS Head Start Programs, Inc. (Head Start) has elected to use the 10% de minimis indirect cost rate and other specific programs follow statutory exclusions on the use of NICRA.
Title: (4) Restatement of Schedule of Expenditures of Awards Accounting Policies: (1) Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity (including indirect cost recovery amounts) of Save the Children Federation, Inc. and related entities (the Organization), and is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Program income is recorded in the Schedule when expended. Negative amounts listed on the Schedule represent adjustments to amounts included on prior years’ Schedules. Catalog of Federal Domestic Assistance (CFDA) also known as Assistance Listing Numbers (ALN) are provided when available. (2) Valuation of Nonmonetary Assistance Agricultural and other commodities are recorded at an ascribed amount representing the fair value determined by the Commodity Credit Corporation (as an agency of the U.S. government). Donated freight is recorded based on the carrier’s bill of lading. The value of nonmonetary assistance received for the year ended December 31, 2022 was approximately $9.8 million. De Minimis Rate Used: Both Rate Explanation: (3) Indirect Cost Rate Save the Children Federation, Inc. (SCUS) has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In connection with SCUS’s ongoing relationship with the United States Agency for International Development and the regulatory provision for its negotiated indirect cost rate agreement (NICRA), SCUS has been involved in finalizing provisional rates each year. As of December 31, 2022, SCUS had finalized rates through fiscal year 2019, and provisional rates for fiscal years 2020, 2021, and 2022. In May 2023, SCUS received finalized rates for fiscal year 2020 and 2021, and has been given a new provisional rate for fiscal year 2022 and onward until amended. Provisional rates provided by the government are charged to the grants and adjusted in the period after the final rate is determined. Related entity SCUS Head Start Programs, Inc. (Head Start) has elected to use the 10% de minimis indirect cost rate and other specific programs follow statutory exclusions on the use of NICRA. The Schedule has been restated to reclassify expenditures of $407,929 to the Overseas Refugee Assistance Program for Near East (ALN 19.519), which were previously incorrectly reported in the Investing in People in The Middle East and North Africa program. (ALN 19.021).

Finding Details

Finding 2022-001
Findings and Questioned Costs Relating to Federal Awards Finding 2022-001 – Material Weakness over SEFA Preparation Federal Agency U.S. Department of State Federal Program Overseas Refugee Assistance Program for Near East (ALN 19.519) Federal Award Year September 1, 2022 to August 31, 2023 Compliance Requirement Other – Inaccurate Reporting on the Schedule of Expenditures of Federal Awards Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the entity’s financial statements, which must include the federal awards expended for each federal program and the related assistance listing number (ALN). Additionally, CFR 200.303 requires non-Federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the Schedule. Condition and Context Save the Children Federation, Inc. and Related Entities (the Organization) did not have adequate internal controls related to the reporting of expenditures for the Overseas Refugee Assistance Program for the Near East (ALN 19.519). As a result, the amounts previously reported on the SEFA for this program for the year ended December 31, 2022 did not include $407,929 of expenditures, which were previously incorrectly reported in the Investing in People in The Middle East and North African program (ALN 19.021). These expenditures represent 12% of the total ALN 19.519 program expenditures and .08% of the total SEFA expenditures. Cause and Effect The cause was human error, whereas the ALNs are manually inputted into the Organization's system. The error was not identified when management reviewed the Schedule. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the entity from reporting accurate program information and completing an audit in accordance with timelines set forth by the Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable. Repeat Finding No Recommendation We recommend that the Organization further refine the design of the internal controls that will ensure that the ALN coding for expenditures is accurate on the SEFA. Management’s Response Management agrees with the recommendation to further refine the internal controls in the identification and reporting of ALNs in the SEFA. Once STC identified the data error, management began training to raise awareness of the importance of ALN tracking, enhance the input/verification process, add periodic quality checks, and improve the SEFA review process. The identified issue did not impact compliance with more specific award terms, conditions or allowability of expenditures and the additional ALN program included in the restatement did not lead to any different audit result.
Finding 2022-001
Findings and Questioned Costs Relating to Federal Awards Finding 2022-001 – Material Weakness over SEFA Preparation Federal Agency U.S. Department of State Federal Program Overseas Refugee Assistance Program for Near East (ALN 19.519) Federal Award Year September 1, 2022 to August 31, 2023 Compliance Requirement Other – Inaccurate Reporting on the Schedule of Expenditures of Federal Awards Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the entity’s financial statements, which must include the federal awards expended for each federal program and the related assistance listing number (ALN). Additionally, CFR 200.303 requires non-Federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the Schedule. Condition and Context Save the Children Federation, Inc. and Related Entities (the Organization) did not have adequate internal controls related to the reporting of expenditures for the Overseas Refugee Assistance Program for the Near East (ALN 19.519). As a result, the amounts previously reported on the SEFA for this program for the year ended December 31, 2022 did not include $407,929 of expenditures, which were previously incorrectly reported in the Investing in People in The Middle East and North African program (ALN 19.021). These expenditures represent 12% of the total ALN 19.519 program expenditures and .08% of the total SEFA expenditures. Cause and Effect The cause was human error, whereas the ALNs are manually inputted into the Organization's system. The error was not identified when management reviewed the Schedule. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the entity from reporting accurate program information and completing an audit in accordance with timelines set forth by the Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable. Repeat Finding No Recommendation We recommend that the Organization further refine the design of the internal controls that will ensure that the ALN coding for expenditures is accurate on the SEFA. Management’s Response Management agrees with the recommendation to further refine the internal controls in the identification and reporting of ALNs in the SEFA. Once STC identified the data error, management began training to raise awareness of the importance of ALN tracking, enhance the input/verification process, add periodic quality checks, and improve the SEFA review process. The identified issue did not impact compliance with more specific award terms, conditions or allowability of expenditures and the additional ALN program included in the restatement did not lead to any different audit result.
Finding 2022-001
Findings and Questioned Costs Relating to Federal Awards Finding 2022-001 – Material Weakness over SEFA Preparation Federal Agency U.S. Department of State Federal Program Overseas Refugee Assistance Program for Near East (ALN 19.519) Federal Award Year September 1, 2022 to August 31, 2023 Compliance Requirement Other – Inaccurate Reporting on the Schedule of Expenditures of Federal Awards Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the entity’s financial statements, which must include the federal awards expended for each federal program and the related assistance listing number (ALN). Additionally, CFR 200.303 requires non-Federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the Schedule. Condition and Context Save the Children Federation, Inc. and Related Entities (the Organization) did not have adequate internal controls related to the reporting of expenditures for the Overseas Refugee Assistance Program for the Near East (ALN 19.519). As a result, the amounts previously reported on the SEFA for this program for the year ended December 31, 2022 did not include $407,929 of expenditures, which were previously incorrectly reported in the Investing in People in The Middle East and North African program (ALN 19.021). These expenditures represent 12% of the total ALN 19.519 program expenditures and .08% of the total SEFA expenditures. Cause and Effect The cause was human error, whereas the ALNs are manually inputted into the Organization's system. The error was not identified when management reviewed the Schedule. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the entity from reporting accurate program information and completing an audit in accordance with timelines set forth by the Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable. Repeat Finding No Recommendation We recommend that the Organization further refine the design of the internal controls that will ensure that the ALN coding for expenditures is accurate on the SEFA. Management’s Response Management agrees with the recommendation to further refine the internal controls in the identification and reporting of ALNs in the SEFA. Once STC identified the data error, management began training to raise awareness of the importance of ALN tracking, enhance the input/verification process, add periodic quality checks, and improve the SEFA review process. The identified issue did not impact compliance with more specific award terms, conditions or allowability of expenditures and the additional ALN program included in the restatement did not lead to any different audit result.
Finding 2022-001
Findings and Questioned Costs Relating to Federal Awards Finding 2022-001 – Material Weakness over SEFA Preparation Federal Agency U.S. Department of State Federal Program Overseas Refugee Assistance Program for Near East (ALN 19.519) Federal Award Year September 1, 2022 to August 31, 2023 Compliance Requirement Other – Inaccurate Reporting on the Schedule of Expenditures of Federal Awards Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the entity’s financial statements, which must include the federal awards expended for each federal program and the related assistance listing number (ALN). Additionally, CFR 200.303 requires non-Federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the Schedule. Condition and Context Save the Children Federation, Inc. and Related Entities (the Organization) did not have adequate internal controls related to the reporting of expenditures for the Overseas Refugee Assistance Program for the Near East (ALN 19.519). As a result, the amounts previously reported on the SEFA for this program for the year ended December 31, 2022 did not include $407,929 of expenditures, which were previously incorrectly reported in the Investing in People in The Middle East and North African program (ALN 19.021). These expenditures represent 12% of the total ALN 19.519 program expenditures and .08% of the total SEFA expenditures. Cause and Effect The cause was human error, whereas the ALNs are manually inputted into the Organization's system. The error was not identified when management reviewed the Schedule. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the entity from reporting accurate program information and completing an audit in accordance with timelines set forth by the Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable. Repeat Finding No Recommendation We recommend that the Organization further refine the design of the internal controls that will ensure that the ALN coding for expenditures is accurate on the SEFA. Management’s Response Management agrees with the recommendation to further refine the internal controls in the identification and reporting of ALNs in the SEFA. Once STC identified the data error, management began training to raise awareness of the importance of ALN tracking, enhance the input/verification process, add periodic quality checks, and improve the SEFA review process. The identified issue did not impact compliance with more specific award terms, conditions or allowability of expenditures and the additional ALN program included in the restatement did not lead to any different audit result.