FAC Explorer

Audit 331337

FY End
2024-06-30
Total Expended
$349.75M
Findings
2
Programs
16
Organization: Cooperative for Assistance and Relief Everywhere, Inc. (care) (GA)
Year: 2024 Accepted: 2024-12-06
Auditor: Ernst & Young LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
513465 2024-001 Significant Deficiency - L
1089907 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
98.007 Food for Peace Development Assistance Program (dap) $41.21M Yes 1
10.608 Food for Education $6.80M - 0
19.518 Overseas Refugee Assistance Programs for Western Hemisphere $5.79M Yes 0
19.519 Overseas Refugee Assistance Program for Near East and South Asia $3.43M - 0
17.401 International Labor Programs $2.75M - 0
19.517 Overseas Refugee Assistance Programs for Africa $1.47M - 0
19.801 Office of Global Women's Issues $1.04M - 0
19.523 Overseas Refugee Assistance Program for South Asia $967,366 - 0
19.522 Overseas Refugee Assistance Programs for Strategic Global Priorities $229,342 - 0
98.008 Food for Peace Emergency Program (ep) $113,930 Yes 0
98.001 Usaid Foreign Assistance for Programs Overseas $49,148 - 0
98.003 Ocean Freight Reimbursement Program (ofr) $43,321 - 0
98.U01 Usaid Lowland Water, Sanitation and Hygiene Activity $-1,507 - 0
98.011 Global Development Alliance $-4,480 - 0
19.345 International Programs to Support Democracy, Human Rights and Labor $-7,814 - 0
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $-28,723 - 0

Contacts

Name Title Type
V3GBUCJUJ6Y4 Ranil De Silva Auditee
2297126479 August Hammonds Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: For the purpose of the Schedule of Expenditures of Federal Awards, expenditures for federal award programs are recognized on the accrual basis of accounting. Negative amounts on the Schedule are adjustments to expenditures reported in the prior years. Agricultural and other commodities are recorded as inventory when shipped to a CARE country office or held in storage in the destination country prior to distribution. Revenue and expense (program activity) are recognized when the commodities are distributed, on a first-in, first-out basis. Freight expense is recognized as expense when incurred. Agricultural and other commodities are recorded at an ascribed amount representing the market valuation placed thereon by the Commodity Credit Corporation (as an agency of the United States government). Donated ocean freight is recorded based on the carrier’s bill of lading. For the year ended June 30, 2024 the non-cash expenses provided to sub-recipients have been added to the Payments to Sub-recipients. The non-cash expense includes agricultural commodities and ocean freight. De Minimis Rate Used: N Rate Explanation: CARE did not elect to use the 10% de minimis cost rate permitted by the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the federal expenditures of CARE under programs of the federal government for the year ended June 30, 2024. Because the Schedule presents only a selected portion of the operations of CARE, it is not intended to and does not present the financial position, results of operations, or cash flows of CARE. For purposes of the Schedule, federal awards include all grants entered into directly, and via pass-through, between CARE and agencies and departments of the federal government.
Title: Summary of Significant Accounting Policies Accounting Policies: For the purpose of the Schedule of Expenditures of Federal Awards, expenditures for federal award programs are recognized on the accrual basis of accounting. Negative amounts on the Schedule are adjustments to expenditures reported in the prior years. Agricultural and other commodities are recorded as inventory when shipped to a CARE country office or held in storage in the destination country prior to distribution. Revenue and expense (program activity) are recognized when the commodities are distributed, on a first-in, first-out basis. Freight expense is recognized as expense when incurred. Agricultural and other commodities are recorded at an ascribed amount representing the market valuation placed thereon by the Commodity Credit Corporation (as an agency of the United States government). Donated ocean freight is recorded based on the carrier’s bill of lading. For the year ended June 30, 2024 the non-cash expenses provided to sub-recipients have been added to the Payments to Sub-recipients. The non-cash expense includes agricultural commodities and ocean freight. De Minimis Rate Used: N Rate Explanation: CARE did not elect to use the 10% de minimis cost rate permitted by the Uniform Guidance. For the purpose of the Schedule of Expenditures of Federal Awards, expenditures for federal award programs are recognized on the accrual basis of accounting. Negative amounts on the Schedule are adjustments to expenditures reported in the prior years. Agricultural and other commodities are recorded as inventory when shipped to a CARE country office or held in storage in the destination country prior to distribution. Revenue and expense (program activity) are recognized when the commodities are distributed, on a first-in, first-out basis. Freight expense is recognized as expense when incurred. Agricultural and other commodities are recorded at an ascribed amount representing the market valuation placed thereon by the Commodity Credit Corporation (as an agency of the United States government). Donated ocean freight is recorded based on the carrier’s bill of lading. For the year ended June 30, 2024 the non-cash expenses provided to sub-recipients have been added to the Payments to Sub-recipients. The non-cash expense includes agricultural commodities and ocean freight.
Title: Indirect Cost Rate Accounting Policies: For the purpose of the Schedule of Expenditures of Federal Awards, expenditures for federal award programs are recognized on the accrual basis of accounting. Negative amounts on the Schedule are adjustments to expenditures reported in the prior years. Agricultural and other commodities are recorded as inventory when shipped to a CARE country office or held in storage in the destination country prior to distribution. Revenue and expense (program activity) are recognized when the commodities are distributed, on a first-in, first-out basis. Freight expense is recognized as expense when incurred. Agricultural and other commodities are recorded at an ascribed amount representing the market valuation placed thereon by the Commodity Credit Corporation (as an agency of the United States government). Donated ocean freight is recorded based on the carrier’s bill of lading. For the year ended June 30, 2024 the non-cash expenses provided to sub-recipients have been added to the Payments to Sub-recipients. The non-cash expense includes agricultural commodities and ocean freight. De Minimis Rate Used: N Rate Explanation: CARE did not elect to use the 10% de minimis cost rate permitted by the Uniform Guidance. CARE did not elect to use the 10% de minimis cost rate permitted by the Uniform Guidance.

Finding Details

Finding 2024-001
Finding 2024-001 Reporting – Federal Funding Accountability and Transparency Act (FFATA) Assistance Listing Number: 98.007/98.008 Program Name: USAID Foreign Food Aid Donation Cluster Granting Agency: U.S. Agency for International Development (USAID) Federal Award Identification number and Award Year: 72DFFP20CA00007; October 1, 2020 – September 30, 2025 Criteria: As per 2 CFR 200.170, direct recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The subaward information should be reported no later than the end of the month following the month in which the obligation was made. Condition: During our testing of the FFATA reporting compliance, we tested a sample of seven (7) FFATA reports that were submitted to FSRS and found that three (3) reports from our samples were not submitted within the required time frame. Cause: The information needed for FFATA reporting is provided by the implementing partner and Country Office to CARE’s Shared Service Center (SSC) for submission. In these three instances, the subaward modifications and amendments made in fiscal year 2024 was not received timely from one Country Office resulting in untimely submission of the FFATA reports. Effect or potential effect: The delay in submission of the reports resulted in CARE not reporting the required information in FSRS within the required time frame; thereby resulting in noncompliance with the reporting requirements. Questioned Costs: None. Context: There were a total of 13 FFATA report submissions during fiscal year 2024 under the Foreign Food Aid Donation Cluster. We tested seven (7) FFATA reports and noted delays in submission of three (3) reports. The three subaward modifications related to one (1) country office – Zimbabwe. Although the three reports were not submitted within the required time frame, we noted that upon their eventual submission, the information submitted was complete and accurate and met all other compliance requirements. Identification as a repeat finding, if applicable: This is not a repeat finding from prior year. Recommendation: We recommend CARE continue to reinforce the importance of timely submission of required documents to all business units involved in the FFATA reporting process. While it appears that management has a process to appropriately monitor and identify whether the submission of the report has occurred, it is not evident that there are appropriate investigation and resolution control activities to prevent or timely resolve instances of delayed report submissions. As such, we recommend CARE implement appropriate centralized investigation and resolution controls at the SSC or Corporate level when potential FFATA report delays are identified. Views of responsible officials: CARE agrees with the finding and will take steps to institute a process to investigate and resolve delays in country office submission of FFATA reporting information. The control process will include an escalation procedure for country office non-responsiveness to the current proactive reminder communications. Award Management Solutions (AMS) and Shared Services Center will also introduce the following additional controls: • AMS will hold engagement sessions within 90 days with the CARE country offices and regional offices managing USG awards. The sessions will re-enforce their accountability as a key performance indicator for complying with the FFATA reporting requirements, ensuring responsiveness to Shared Services Center communications and submissions of required documentation within the regulatory timeframe. • Shared Services Center will activate set-up in CARE accounting system (PeopleSoft) of a new partner funding agreement (PFA) and partner modifications only with submission of the FFATA reporting information. • AMS to modify the PFA review and approval checklist to incorporate the FFATA information.
Finding 2024-001
Finding 2024-001 Reporting – Federal Funding Accountability and Transparency Act (FFATA) Assistance Listing Number: 98.007/98.008 Program Name: USAID Foreign Food Aid Donation Cluster Granting Agency: U.S. Agency for International Development (USAID) Federal Award Identification number and Award Year: 72DFFP20CA00007; October 1, 2020 – September 30, 2025 Criteria: As per 2 CFR 200.170, direct recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The subaward information should be reported no later than the end of the month following the month in which the obligation was made. Condition: During our testing of the FFATA reporting compliance, we tested a sample of seven (7) FFATA reports that were submitted to FSRS and found that three (3) reports from our samples were not submitted within the required time frame. Cause: The information needed for FFATA reporting is provided by the implementing partner and Country Office to CARE’s Shared Service Center (SSC) for submission. In these three instances, the subaward modifications and amendments made in fiscal year 2024 was not received timely from one Country Office resulting in untimely submission of the FFATA reports. Effect or potential effect: The delay in submission of the reports resulted in CARE not reporting the required information in FSRS within the required time frame; thereby resulting in noncompliance with the reporting requirements. Questioned Costs: None. Context: There were a total of 13 FFATA report submissions during fiscal year 2024 under the Foreign Food Aid Donation Cluster. We tested seven (7) FFATA reports and noted delays in submission of three (3) reports. The three subaward modifications related to one (1) country office – Zimbabwe. Although the three reports were not submitted within the required time frame, we noted that upon their eventual submission, the information submitted was complete and accurate and met all other compliance requirements. Identification as a repeat finding, if applicable: This is not a repeat finding from prior year. Recommendation: We recommend CARE continue to reinforce the importance of timely submission of required documents to all business units involved in the FFATA reporting process. While it appears that management has a process to appropriately monitor and identify whether the submission of the report has occurred, it is not evident that there are appropriate investigation and resolution control activities to prevent or timely resolve instances of delayed report submissions. As such, we recommend CARE implement appropriate centralized investigation and resolution controls at the SSC or Corporate level when potential FFATA report delays are identified. Views of responsible officials: CARE agrees with the finding and will take steps to institute a process to investigate and resolve delays in country office submission of FFATA reporting information. The control process will include an escalation procedure for country office non-responsiveness to the current proactive reminder communications. Award Management Solutions (AMS) and Shared Services Center will also introduce the following additional controls: • AMS will hold engagement sessions within 90 days with the CARE country offices and regional offices managing USG awards. The sessions will re-enforce their accountability as a key performance indicator for complying with the FFATA reporting requirements, ensuring responsiveness to Shared Services Center communications and submissions of required documentation within the regulatory timeframe. • Shared Services Center will activate set-up in CARE accounting system (PeopleSoft) of a new partner funding agreement (PFA) and partner modifications only with submission of the FFATA reporting information. • AMS to modify the PFA review and approval checklist to incorporate the FFATA information.