Audit 370111

Finding 2024-002 – Subrecipient single audits Federal Agency: U.S. Department of State Programs: Overseas Refugee Assistance Programs for Africa, Overseas Refugee Assistance Program for Middle East and North Africa Program Assistance listing numbers: 19.517, 19.519 Federal award identification number and year: • SPRMCO22CA0165 – 2022 • SPRMCO23CA0142 – 2023 • SPRMCO23CA0200 – 2023 Criteria: Per sub-agreements to the above awards section VII Administrative Requirements part (3): Audits and Inspections: All Foreign organizations that expend $750,000 or more in a fiscal year in the Department of State federal assistance must perform an independent, Subrecipient-contracted Single Audit or Program Specific Audit. Condition: Although the client’s grant and subgrant agreements explicitly required subgrantees to undergo a single audit if the $750,000 expenditure threshold is met, none of the subgrantees had such audits performed. Grant countries impacted: Cameroon, South Sudan, and Iraq. Cause: Failures in the subrecipient control monitoring process. Effect: The Organization’s subgrantee’s were not in compliance with the subrecipient audit requirements. Context: Out of a population of nine subrecipients audits, four were selected for testing. Of the four, three had federal expenditures over $750,000, and had no evidence of a single audit. Questioned costs: There are no questioned costs noted. Recommendation: Management should implement a subrecipient control monitoring process that directly relates to the subrecipient audit requirements. Views of responsible officials: Management agrees with findings. See corrective action plan.

Finding 2024-003 – Tax disclosure submission Federal Agency: U.S. Department of State Program: Overseas Refugee Assistance Programs for Africa, Overseas Refugee Assistance Program for Middle East and North Africa Program, Overseas Refugee Assistance Programs for East Asia Assistance listing number: 19.517, 19.519, 19.511 Federal award identification number and year: • SPRMCO22CA0165 – 2022 • SPRMCO23CA0142 – 2023 • SPRMCO23CA0092 – 2023 • SPRMCO24CA0074 – 2024 • SPRMCO23CA0200 – 2023 • SPRMCO24CA0240 – 2024 • SPRMCO23CA0122 – 2023 Criteria: Per the grant agreements to the above awards section 19 Reporting Taxes on Foreign Assistance Funds. The Recipient is required to submit a report detailing foreign taxes assessed under this award during the prior U.S. Government fiscal year (October 1 through September 30). The report must be submitted to the Grants Officer on an annual basis by February 15. Condition: The Organization is required to comply with conditions listed in their grant agreements. Management had processes in place to submit each tax report on a timely basis; however these processes did not occur. Grant countries impacted: Cameroon, South Sudan, Uganda, Ethiopia, Iraq and Thailand. Cause: The cause is due to frequent turnover in key management positions, which disrupted the continuity of established submission procedures. Effect: The Organization failed to comply with the submission requirements for the tax reports in violation of the grant agreement. Context: Out of a population of 14 filings, seven were selected for testing. All seven did not meet the submission requirement. Questioned costs: There are no questioned costs noted. Recommendation: Management should implement a formalized process to ensure that submission requirements are met. Views of responsible officials: Management agrees with findings. See corrective action plan.