Finding Text
Finding 2025-001: Federal Funding Accountability and Transparency Act Reporting Federal Agency: U.S. Agency for International Development (USAID) Federal Program: Foreign Assistance for Programs Overseas Assistance Listing Number: 98.001 Pass-through Entity (if applicable): Not applicable Award Identification Number and Year: All Criteria or Specific Requirement: 2 CFR part 170, Appendix A; 2 CFR 200.303 For Federal awards containing the applicable Transparency Act award term, a recipient generally must report each first-tier subaward that equals or exceeds $30,000 in Federal funds, including a modification that increases Federal funding to that level. The report is made through the Federal Funding Accountability and Transparency Act Subaward Reporting System and is due no later than the end of the month following the month in which the subaward was issued. Recipients are also required to establish and maintain effective internal control over Federal awards and comply with the terms and conditions of those awards. Condition: Internews Network was unable to provide documentation supporting its identification and reporting of first-tier subawards subject to FFATA during the year ended December 31, 2025. As a result, we were unable to determine whether all reportable subawards and modifications were identified, submitted completely and accurately, and reported within the required timeframe. Cause: Management indicated that significant reductions in grants and compliance personnel occurred after the termination of Federal awards and funding. Responsibilities for FFATA reporting and custody of related records were not formally reassigned, and management did not maintain a centralized, durable repository or documented closeout process sufficient to preserve evidence of compliance after staff departures. Effect or Potential Effect: The absence of supporting records prevented verification of compliance with the applicable FFATA award term. Untimely, incomplete, or omitted reporting, if it occurred, could result in inaccurate information in Federal spending transparency systems, noncompliance with award terms, and increased risk of Federal or pass-through entity follow-up. Because sufficient documentation was not available, the extent of any unreported or late subawards and any related monetary effect could not be determined. Questioned Costs: Undetermined Context: The Organization received Federal funding and issued or modified first-tier subawards during the audit period. The applicable Federal award terms required Internews Network to evaluate whether those subawards met FFATA reporting requirements and, when applicable, submit the required information through the designated Federal reporting system within the prescribed timeframe. Identification as a Repeat Finding, if Applicable: Not a repeat finding Recommendation: We recommend that Internews Network designate an accountable FFATA process owner and backup, establish a complete inventory of Federal awards and first-tier subawards, and implement a documented monthly review for new subawards and modifications. For each potentially reportable item, management should retain the threshold analysis, required data elements, FSRS submission confirmation, submission date, and evidence of review in a centralized repository with access that is not dependent on a single employee. When a Federal program is terminated or staffing is reduced, management should perform a formal records-transfer and awardcloseout checklist, including reassignment of outstanding reporting responsibilities and validation that compliance records remain accessible for the required retention period.