Finding Text
Finding 2023-003: Subrecipient Monitoring – Review of Audit Reports
Information on the Federal Programs: Assistance Listing 98.001 USAID Foreign Assistance for
Programs Overseas
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 2 CFR
200.332 discuss requirements for pass-through entities. Among these requirements are that passthrough
entities must verify that a subrecipient is audited as required by 2 CFR 200 Subpart F.
Condition: We noted an instance in which there was no evidence of Action Against Hunger’s
review of a subrecipient’s audit report.
Cause: Administrative oversight.
Effect or Potential Effect: Noncompliance with subaward monitoring requirements may lead to
withholding of future payments, award suspension or termination, and ineligibility for future awards.
Questioned Costs: None.Context: Our sample consisted of three subawards. We noted the condition for one of the three
subawards tested.
Identification as a Repeat Finding, if Applicable: N/A
Recommendation: We recommend that management implement a standardized process whereby
all sub-awardees are required to submit their annual audit reports to Action Against Hunger – USA
for review, or confirm that they were not subject to an audit under 2 CFR 200 Subpart F.