Finding 1089907 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-12-06

AI Summary

  • Core Issue: Three out of seven FFATA reports were submitted late, violating the requirement to report subawards of $30,000 or more within the specified timeframe.
  • Impacted Requirements: Compliance with 2 CFR 200.170, which mandates timely reporting to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
  • Recommended Follow-Up: Implement centralized controls for investigating and resolving delays in FFATA report submissions, and reinforce accountability through engagement sessions with country offices.

Finding Text

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

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 513465 2024-001
    Significant Deficiency

Programs in Audit

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