FAC Explorer

Audit 359583

FY End
2024-09-30
Total Expended
$38.79M
Findings
10
Programs
12
Organization: Intrahealth International, Inc, (NC)
Year: 2024 Accepted: 2025-06-23
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565946 2024-002 Significant Deficiency - M
565947 2024-003 Significant Deficiency - P
565948 2024-003 Significant Deficiency - P
565949 2024-003 Significant Deficiency - P
565950 2024-003 Significant Deficiency - P
1142388 2024-002 Significant Deficiency - M
1142389 2024-003 Significant Deficiency - P
1142390 2024-003 Significant Deficiency - P
1142391 2024-003 Significant Deficiency - P
1142392 2024-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
98.U01 Adv Hiv & Aids Epidemmic Control (ahec) Activity $8.94M Yes 2
98.U02 Asap II $8.16M Yes 1
98.U03 Zambia Local $1.47M Yes 1
98.U07 Feed the Future Tajikistan Agriculture and Land Go $662,215 Yes 0
98.001 Usaid Foreign Assistance for Programs Overseas $494,695 - 0
98.U05 Hq (global) $286,711 - 0
98.U08 Ethiopia Digital Health Activity $110,204 - 0
98.U04 Namibia $76,736 - 0
98.U09 Glee $63,525 - 0
98.U06 Ghsc Psm To8 Global Stta $19,656 - 0
93.067 Global Aids $14,893 - 0
98.U02 Asap $-1,964 Yes 1

Contacts

Name Title Type
TCNLXWJV81T8 Nikolos Oakley Auditee
9193139189 Elisa Savva Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: N Rate Explanation: IntraHealth uses a rate negotiated with the US federal government. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal expenditures of lntraHealth International, Inc. (IntraHealth) under programs of the federal government for the 15-month period ended September 30, 2024. 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). Because the Schedule presents only a selected portion of the operations of lntraHealth, it is not intended to and does not present the financial position, changes in net assets or cash flows of lntraHealth.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: N Rate Explanation: IntraHealth uses a rate negotiated with the US federal government. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported in prior years.
Title: Note 3. Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: N Rate Explanation: IntraHealth uses a rate negotiated with the US federal government. IntraHealth has elected not to use the 10% de minimus cost rate allowed under the Uniform Guidance.
Title: Note 4. Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported in prior years. De Minimis Rate Used: N Rate Explanation: IntraHealth uses a rate negotiated with the US federal government. Amounts provided to subrecipients shown separately on the schedule of expenditures of federal awards are also a component of the federal expenditures presented.

Finding Details

Finding 2024-002
Finding 2024-002: Subrecipient Monitoring Federal Program: Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 Criteria: Recipients of federal funding who pass-through federal funds to subrecipients must evaluate each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring (2 CFR 200.332 (e)). In monitoring a subrecipient, a pass-through entity must review financial and performance reports (2 CFR 200.332 (e)). A pass-through must consider whether the results of a subrecipient's audit, site visits, or other monitoring necessitate adjustments to the pass-through entity's records. (2 CFR 200.332 (h)). Condition: Insufficient monitoring was performed over fixed amount subawards. Cause: Improper controls over subrecipient monitoring compliance requirement. Effect: Controls in place did not allow for sufficient monitoring over subrecipients. Questioned costs: None Context: Fixed amount subawards did not have documented subrecipient monitoring plans based on subrecipient’s risk assessment evaluations. Monitoring of fixed amount subawards was limited to reviewing milestone certification forms against milestone tables included in the subrecipient agreements. Financial audits or reports were not requested for non-U.S. based subrecipients as part of monitoring procedures. Repeat finding: No Recommendation: We recommend that management review subrecipient monitoring policies and procedures required over fixed amount subawards to ensure there are documented subrecipient monitoring plans based on the subrecipient’s assessed level of risk and to ensure that financial reports or audits of the subrecipients are requested for non-U.S. based subrecipients. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Finding 2024-002: Subrecipient Monitoring Federal Program: Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 Criteria: Recipients of federal funding who pass-through federal funds to subrecipients must evaluate each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring (2 CFR 200.332 (e)). In monitoring a subrecipient, a pass-through entity must review financial and performance reports (2 CFR 200.332 (e)). A pass-through must consider whether the results of a subrecipient's audit, site visits, or other monitoring necessitate adjustments to the pass-through entity's records. (2 CFR 200.332 (h)). Condition: Insufficient monitoring was performed over fixed amount subawards. Cause: Improper controls over subrecipient monitoring compliance requirement. Effect: Controls in place did not allow for sufficient monitoring over subrecipients. Questioned costs: None Context: Fixed amount subawards did not have documented subrecipient monitoring plans based on subrecipient’s risk assessment evaluations. Monitoring of fixed amount subawards was limited to reviewing milestone certification forms against milestone tables included in the subrecipient agreements. Financial audits or reports were not requested for non-U.S. based subrecipients as part of monitoring procedures. Repeat finding: No Recommendation: We recommend that management review subrecipient monitoring policies and procedures required over fixed amount subawards to ensure there are documented subrecipient monitoring plans based on the subrecipient’s assessed level of risk and to ensure that financial reports or audits of the subrecipients are requested for non-U.S. based subrecipients. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. See corrective action plan.