FAC Explorer

Finding 1155475 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-26
Audit: 367760
Organization: International Fund for Animal Welfare, Inc. (MA)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards incorrectly excluded sub-recipient awards for two federal programs, leading to noncompliance with Uniform Guidance.
  • Impacted Requirements: The omission violates 2 CFR 200.510b, which mandates accurate reporting of total federal awards, including sub-recipient expenditures.
  • Recommended Follow-Up: Management should review the Schedule of Expenditures before issuance to ensure all federal awards, including sub-recipient amounts, are accurately reported.

Finding Text

Finding 2024-001: Preparation of the Schedule of Expenditures of Federal Awards Material weakness/other matter noncompliance Identification of federal programs: • ALN 98.001: USAID Foreign Assistance for Programs Overseas awarded by the U.S Agency for International Development, specifically contract 72061522CA00003 for fiscal year 2024. • ALN 19.705: Trans-National Crime awarded by the U.S. Department of State Bureau of International Narcotics and Law Enforcement Affairs, specifically contract SINLEC21GR3379, and the indirect award passed though the Humane Society of the United States for fiscal year 2024. Criteria: The Uniform Guidance (2 CFR 200.510b) requires that the auditee (typically a non-federal entity receiving federal funds) must prepare a Schedule of Expenditures of Federal Awards for the period covered by its financial statements which must include the total Federal Awards expended as determined in accordance with 2 CFR 200.502. Condition: The Schedule of Expenditures of Federal Awards for the year ended June 30, 2024 improperly excluded the awards provided to sub-recipients from the total expenditures reported for the federal awards for ALN 98.001 USAID Foreign Assistance for Programs Overseas and ALN 19.705 Trans-National Crime. Cause: There was an error in the formula that linked the supporting schedule to the schedule of expenditures of federal awards. Effect: Not in compliance with the Uniform Guidance (2 CFR 200.510b). There could be impacts on future funding. Questioned costs: None. Context: Total federal awards for ALN 98.001 USAID Foreign Assistance for Programs Overseas improperly excluded subrecipient awards from the total in the amount of $143,937. Total federal awards for ALN 19.705 Trans-National Crime improperly excluded subrecipient awards from the total in the amount of $166,877. Repeat Finding: No Recommendation: We recommend that the Organization review the schedule of expenditures of federal awards prior to issuance. Views of responsible officials and planned corrective actions: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

In September 2025, Management has implemented the following corrective action item to eliminate the 2024-001 finding: 1. Management has redesigned our schedule of federal awards template to align with the format presented in the Single Audit report, thus eliminating reliance on summation formulas. 2. Management has implemented an additional review of the draft Single Audit report to be performed by the Controller. This is followed by the final review from the CFO before the report submission. Staff have reviewed the applicable Uniform Guidance (2 CFR 200.510b) to ensure full comprehension of reporting requirements. All corrective action items have been implemented and followed for the preparation of the schedule of federal expenditures. Contact Person Responsible for Corrective Action: Blaine Hoovis, Chief Financial Officer Email: BHoovis@ifaw.org Phone: 1 508 744 2134

Categories

Subrecipient Monitoring Material Weakness Reporting

Other Findings in this Audit

  • 1155473 2024-001
    Material Weakness Repeat
  • 1155474 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
98.001 Usaid Foreign Assistance for Programs Overseas $1.18M
19.705 Trans-National Crime $87,815
11.439 Marine Mammal Data Program $49,546
15.679 Combating Wildlife Trafficking $24,559