Finding 2025-003: Subrecipient Monitoring and Management 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 200.331 through 200.333; 2 CFR 200.329; 2 CFR 200.303 A pass-through entity must document subrecipient-versus-contractor determinations, verify that potential subrecipients are not excluded or disqualified, include required Federal information and conditions in subawards, evaluate risk of noncompliance, and monitor activities as necessary. Monitoring includes reviewing financial and performance reports, following up on deficiencies, and issuing management decisions for applicable audit findings. Procedures and specific conditions should respond to assessed risk. Condition: Internews Network could not provide complete documentation for several subrecipients tested. Missing items included classification, risk assessment, exclusion verification, complete agreement and award data, financial and programmatic reports and review evidence. We therefore could not determine whether risk was assessed, requirements communicated, performance and compliance monitored and issues resolved. Cause: Significant reductions in program, grants, and finance personnel followed termination of Federal awards and funding. Files and responsibilities were not fully transitioned; evidence was maintained across individual mailboxes, local drives, and other locations; and no staff-exit procedure required transfer and validation of subrecipient records. Effect or Potential Effect: The absence of monitoring documentation prevented verification that subrecipients used funds for authorized purposes, achieved required performance, complied with award terms, and corrected deficiencies. Noncompliance, unsupported costs, performance issues, or audit findings may not be detected and resolved timely. Questioned Costs: Undetermined Context: Internews Network served as a pass-through entity and provided Federal funds to subrecipients responsible for carrying out portions of the Federal program. It was therefore responsible for documenting pre-award determinations, communicating Federal requirements, assessing subrecipient risk, performing responsive monitoring, following up on deficiencies, and completing closeout. Identification as a Repeat Finding, if Applicable: Not a repeat finding Recommendation: Establish a risk-based lifecycle process with primary and backup owners. Central files should include classification, exclusion verification, risk assessment, required terms and identifiers, monitoring plan, reports, review evidence, invoice testing, audit determinations, finding follow-up, management decisions, corrective actions, and closeout. Use a register to track deadlines, risks, procedures, findings, and open items. Award termination or staffing reduction should trigger formal portfolio transfer, reconciliation of open matters, preservation of records, and certification that duties and system access were reassigned.