FAC Explorer

Audit 41740

FY End
2022-06-30
Total Expended
$2.42M
Findings
2
Programs
2
Organization: Rotary International (IL)
Year: 2022 Accepted: 2022-12-12
Auditor: Deloitte & Touche LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48060 2022-001 - Yes L
624502 2022-001 - Yes L

Programs

ALN Program Spent Major Findings
98.001 Usaid Foreign Assistance for Programs Overseas $2.32M Yes 1
99.U11 Open World Leadership Center $106,083 - 0

Contacts

Name Title Type
KNX6LNTLFDZ4 Araceli Limon-Hunt Auditee
8478663470 Bridget Flint Auditor
No contacts on file

Notes to SEFA

Title: 3.NONCASH ASSISTANCE AND FEDERAL INSURANCE Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of AccountingThe schedule includes expenditures charged to federally funded grants administered by Rotary for the year ended 30 June 2022. The schedule is presented in accordance with the Uniform Guidance using the accrual basis of accounting and should be read in conjunction with Rotarys consolidated financial statements.For purposes of the schedule, federal awards include all grants and cooperative agreements entered into directly between Rotary and agencies and departments of the federal government as well as federal awards passed through to Rotary by other governmental entities or not-for-profit organizations.Direct and Indirect ExpendituresExpenditures presented in the schedule consist of direct and indirect costs. Direct costs are those that can be easily attributed to a federal award, such as the salary of a principal investigator. Indirect costs cannot be easily attributed to a federal award and relate to the cost of services and resources that benefit federal awards as well as non-federal activities of Rotary.Rotary has a policy that allows for the allocation of indirect costs such as salaries, employee benefits, occupancy, and other miscellaneous organizational costs relating to federal grants. Indirect costs are charged to federal grants based on the indirect cost rate approved by the U.S. Department of Health and Human Services. As such, Rotary did not elect to use the de minimus indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Rotary did not receive any noncash federal awards, federal insurance, or in-kind contributions during the year ended 30 June 2022.

Finding Details

Finding 2022-001
CFDA 98.001 USAID Hearts of Europe: Strengthening the Transatlantic Economic Relationship Finding 2022-001 Criteria Per the United States Agency for International Development (?USAID?) cooperative agreement, recipients of USAID funds are required to submit a Standard Form 425 (SF-425) on a quarterly basis within 30 days after quarter-end. In addition, USAID requires performance reports to be submitted on a monthly basis within 10 days of month-end. Condition During our fieldwork, we selected two SF-425 reports and noted two were not submitted within the required timelines. In addition, we selected five of the monthly performance reports and noted three were not submitted within the required timelines. Cause Rotary International failed to submit the SF-425 and performance reports on time as a result of the implementation of a new general ledger system. Effect Failure to submit federal reports on time may result in noncompliance with reporting requirements. Questioned costs None. Perspective Two of two SF-425 reports and three of five monthly performance reports submitted by Rotary International were not submitted within the required timelines. Recommendation Adhere to established controls to ensure all reports are submitted in accordance with required timelines. Request extensions from the grantor when circumstances exist that prevent adherence to required reporting timelines. Views of responsible officials See corrective action plan.
Finding 2022-001
CFDA 98.001 USAID Hearts of Europe: Strengthening the Transatlantic Economic Relationship Finding 2022-001 Criteria Per the United States Agency for International Development (?USAID?) cooperative agreement, recipients of USAID funds are required to submit a Standard Form 425 (SF-425) on a quarterly basis within 30 days after quarter-end. In addition, USAID requires performance reports to be submitted on a monthly basis within 10 days of month-end. Condition During our fieldwork, we selected two SF-425 reports and noted two were not submitted within the required timelines. In addition, we selected five of the monthly performance reports and noted three were not submitted within the required timelines. Cause Rotary International failed to submit the SF-425 and performance reports on time as a result of the implementation of a new general ledger system. Effect Failure to submit federal reports on time may result in noncompliance with reporting requirements. Questioned costs None. Perspective Two of two SF-425 reports and three of five monthly performance reports submitted by Rotary International were not submitted within the required timelines. Recommendation Adhere to established controls to ensure all reports are submitted in accordance with required timelines. Request extensions from the grantor when circumstances exist that prevent adherence to required reporting timelines. Views of responsible officials See corrective action plan.