FAC Explorer

Audit 359700

FY End
2024-09-30
Total Expended
$146.99M
Findings
138
Programs
13
Organization: Global Communities (MD)
Year: 2024 Accepted: 2025-06-24
Auditor: Gelman Rosenberg & Freedman

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
566043 2024-002 Significant Deficiency - P
566044 2024-003 Significant Deficiency - L
566045 2024-002 Significant Deficiency - P
566046 2024-003 Significant Deficiency - L
566047 2024-002 Significant Deficiency - P
566048 2024-003 Significant Deficiency - L
566049 2024-002 Significant Deficiency - P
566050 2024-003 Significant Deficiency - L
566051 2024-002 Significant Deficiency - P
566052 2024-003 Significant Deficiency - L
566053 2024-002 Significant Deficiency - P
566054 2024-003 Significant Deficiency - L
566055 2024-002 Significant Deficiency - P
566056 2024-003 Significant Deficiency - L
566057 2024-002 Significant Deficiency - P
566058 2024-003 Significant Deficiency - L
566059 2024-002 Significant Deficiency - P
566060 2024-003 Significant Deficiency - L
566061 2024-002 Significant Deficiency - P
566062 2024-003 Significant Deficiency - L
566063 2024-002 Significant Deficiency - P
566064 2024-003 Significant Deficiency - L
566065 2024-002 Significant Deficiency - P
566066 2024-003 Significant Deficiency - L
566067 2024-002 Significant Deficiency - P
566068 2024-003 Significant Deficiency - L
566069 2024-002 Significant Deficiency - P
566070 2024-003 Significant Deficiency - L
566071 2024-002 Significant Deficiency - P
566072 2024-003 Significant Deficiency - L
566073 2024-002 Significant Deficiency - P
566074 2024-003 Significant Deficiency - L
566075 2024-002 Significant Deficiency - P
566076 2024-003 Significant Deficiency - L
566077 2024-002 Significant Deficiency - P
566078 2024-003 Significant Deficiency - L
566079 2024-002 Significant Deficiency - P
566080 2024-003 Significant Deficiency - L
566081 2024-002 Significant Deficiency - P
566082 2024-003 Significant Deficiency - L
566083 2024-002 Significant Deficiency - P
566084 2024-003 Significant Deficiency - L
566085 2024-002 Significant Deficiency - P
566086 2024-003 Significant Deficiency - L
566087 2024-002 Significant Deficiency - P
566088 2024-003 Significant Deficiency - L
566089 2024-002 Significant Deficiency - P
566090 2024-003 Significant Deficiency - L
566091 2024-002 Significant Deficiency - P
566092 2024-003 Significant Deficiency - L
566093 2024-002 Significant Deficiency - P
566094 2024-003 Significant Deficiency - L
566095 2024-002 Significant Deficiency - P
566096 2024-003 Significant Deficiency - L
566097 2024-002 Significant Deficiency - P
566098 2024-003 Significant Deficiency - L
566099 2024-002 Significant Deficiency - P
566100 2024-003 Significant Deficiency - L
566101 2024-002 Significant Deficiency - P
566102 2024-003 Significant Deficiency - L
566103 2024-002 Significant Deficiency - P
566104 2024-003 Significant Deficiency - L
566105 2024-003 Significant Deficiency - L
566106 2024-003 Significant Deficiency - L
566107 2024-003 Significant Deficiency - L
566108 2024-003 Significant Deficiency - L
566109 2024-003 Significant Deficiency - L
566110 2024-003 Significant Deficiency - L
566111 2024-003 Significant Deficiency - L
1142485 2024-002 Significant Deficiency - P
1142486 2024-003 Significant Deficiency - L
1142487 2024-002 Significant Deficiency - P
1142488 2024-003 Significant Deficiency - L
1142489 2024-002 Significant Deficiency - P
1142490 2024-003 Significant Deficiency - L
1142491 2024-002 Significant Deficiency - P
1142492 2024-003 Significant Deficiency - L
1142493 2024-002 Significant Deficiency - P
1142494 2024-003 Significant Deficiency - L
1142495 2024-002 Significant Deficiency - P
1142496 2024-003 Significant Deficiency - L
1142497 2024-002 Significant Deficiency - P
1142498 2024-003 Significant Deficiency - L
1142499 2024-002 Significant Deficiency - P
1142500 2024-003 Significant Deficiency - L
1142501 2024-002 Significant Deficiency - P
1142502 2024-003 Significant Deficiency - L
1142503 2024-002 Significant Deficiency - P
1142504 2024-003 Significant Deficiency - L
1142505 2024-002 Significant Deficiency - P
1142506 2024-003 Significant Deficiency - L
1142507 2024-002 Significant Deficiency - P
1142508 2024-003 Significant Deficiency - L
1142509 2024-002 Significant Deficiency - P
1142510 2024-003 Significant Deficiency - L
1142511 2024-002 Significant Deficiency - P
1142512 2024-003 Significant Deficiency - L
1142513 2024-002 Significant Deficiency - P
1142514 2024-003 Significant Deficiency - L
1142515 2024-002 Significant Deficiency - P
1142516 2024-003 Significant Deficiency - L
1142517 2024-002 Significant Deficiency - P
1142518 2024-003 Significant Deficiency - L
1142519 2024-002 Significant Deficiency - P
1142520 2024-003 Significant Deficiency - L
1142521 2024-002 Significant Deficiency - P
1142522 2024-003 Significant Deficiency - L
1142523 2024-002 Significant Deficiency - P
1142524 2024-003 Significant Deficiency - L
1142525 2024-002 Significant Deficiency - P
1142526 2024-003 Significant Deficiency - L
1142527 2024-002 Significant Deficiency - P
1142528 2024-003 Significant Deficiency - L
1142529 2024-002 Significant Deficiency - P
1142530 2024-003 Significant Deficiency - L
1142531 2024-002 Significant Deficiency - P
1142532 2024-003 Significant Deficiency - L
1142533 2024-002 Significant Deficiency - P
1142534 2024-003 Significant Deficiency - L
1142535 2024-002 Significant Deficiency - P
1142536 2024-003 Significant Deficiency - L
1142537 2024-002 Significant Deficiency - P
1142538 2024-003 Significant Deficiency - L
1142539 2024-002 Significant Deficiency - P
1142540 2024-003 Significant Deficiency - L
1142541 2024-002 Significant Deficiency - P
1142542 2024-003 Significant Deficiency - L
1142543 2024-002 Significant Deficiency - P
1142544 2024-003 Significant Deficiency - L
1142545 2024-002 Significant Deficiency - P
1142546 2024-003 Significant Deficiency - L
1142547 2024-003 Significant Deficiency - L
1142548 2024-003 Significant Deficiency - L
1142549 2024-003 Significant Deficiency - L
1142550 2024-003 Significant Deficiency - L
1142551 2024-003 Significant Deficiency - L
1142552 2024-003 Significant Deficiency - L
1142553 2024-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
98.000 Palestine Active Citizenry $4.73M - 0
98.000 Iraq Growing Agriculture and Incomes-Nes & Turkey Growing Agriculture and Incomes-Nws $3.10M Yes 0
19.345 International Programs to Support Democracy, Human Rights and Labor $1.45M Yes 0
98.002 Cooperative Development Program (cdp) $1.32M - 0
98.001 Usaid Foreign Assistance for Programs Overseas $1.03M Yes 2
98.000 Kosovo Up to Youth $1.02M - 0
93.926 Healthy Start Initiative $914,024 - 0
19.017 Environmental and Scientific Partnerships and Programs $376,151 - 0
98.000 Drc Garamba Alliance Activity $277,429 - 0
10.608 Food for Education $254,907 Yes 1
72.002 Retired Senior Volunteer Program $200,833 - 0
47.079 Office of International Science and Engineering $6,910 - 0
19.519 Overseas Refugee Assistance Program for Middle East and North Africa Program $-560 - 0

Contacts

Name Title Type
ED1ZKHMLK527 Nikolos Oakley Auditee
3015874700 Amy Boland 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. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following the cost principles contained in Uniform Guidance , wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Global Communities has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal grant activity of Global Communities under programs of the Federal Government for the year 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). The Schedule presents only a selected portion of the operations of Global Communities; accordingly, it is not intended to and does not present the financial position, changes in net assets or cash flows of Global Communities.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following the cost principles contained in Uniform Guidance , wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Global Communities has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance , wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Global Communities has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-002
Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows:  Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000  Sri Lanka: Employee misappropriation of assets – approximately $18,900  Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Finding 2024-003
Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.