Finding Text
Allegations of Fraud Identification of the Federal Programs: See Schedule of Findings and Questioned Costs for table. Criteria: §200.516(a) Audit findings requires known or suspected fraud be reported by the auditor. Condition: During 2025, HealthXP identified three instances of fraud through its internal reporting mechanisms that impacted the Organization’s federally funded programs. These incidents have been reported to the appropriate U.S. Office of the Inspector General. See details below. • In Mozambique, a subrecipient confirmed fraudulent expenditures of $359.66 and questioned costs of $186.00. This resulted from a falsified contract for office rent and misrouted utility invoices. The amount was remitted by the subrecipient, as such, there was no loss to the U.S. Government. Centers for Disease Control award NU2GGH002369. • In Tanzania, a subrecipient’s program officer circumvented controls for the entity’s payment system, forged authorization documents and redirected payments totaling $3,366. Duplicate payments of $240 were also identified. Amounts were fully recovered from the subrecipient. There was no financial loss to the U.S. Government. USAID contract #72062122C00001. • In Cote d’Ivoire, allegations regarding falsified hotel receipts of per diem was substantiated. The impact to award 72062421CA00003 was $129 and was subsequently fully recovered. There was no financial loss to the U.S. Government. HealthXP has ongoing investigations involving Federal funding pending in multiple countries for which the facts and circumstances and full effect of the fraud investigations have not been determined. Where investigations are still pending and conclusions of the matters identified through whistleblower or other communications have not been reached, HealthXP has reported such matters to the appropriate U.S. agency. Questioned Costs: There are no questioned costs as the questioned amounts have been, or are in the process of, being reimbursed to the respective Federal agency. The questioned amounts are not included or presented in the Schedule. Context: These conditions were identified through HealthXP’s internal review and audit processes and were reported to us during our internal control assessment for the year ended December 31, 2025. Cause: Individuals intentionally circumvented HealthXP or related subrecipient’s established internal controls. Effect: These conditions could result in unallowable expenses being charged to U.S. Government awards if controls in place had not identified the conditions. Repeat Finding: The specific items identified above were not reported in the prior year; however, findings related to fraud were included in the prior year report of PSI for the prior year as findings 2024-004 in the December 31, 2024 schedule of findings and questioned costs. Recommendation: Because of the international environment in which HealthXP entities operate, the potential for fraud is heightened. Given this, we recommend management continue to utilize its global internal audit team and fraud reporting hotline, as well as other policies and procedures around fraud identification to mitigate the fraud risk. Views of Responsible Officials: HealthXP management agrees with the finding and recommendations set forth within and will proactively report and investigate allegations of fraud and to raise awareness of the actions to be taken when there is a suspicion of fraud. Refer to management’s correction action plan for additional information.