Finding 390105 (2023-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300993
Organization: Invisible Children, Inc. (DC)

AI Summary

  • Core Issue: The Organization failed to register subawards over $30,000 in the FSRS as required by federal regulations.
  • Impacted Requirements: Non-compliance with 2 CFR Part 170 regarding subaward reporting could lead to issues with subrecipient oversight.
  • Recommended Follow-up: Update financial policies to ensure timely and accurate registration of all qualifying subawards in the FSRS.

Finding Text

Finding 2023-001: Federal Funding Accountability and Transparency Act Subaward Reporting Information of the Federal Program: Assistance Listing Number 19.345 Criteria: As noted in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Condition: The Organization did not register its subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System. Cause: The Organization did not update its financial and accounting policies, and as a result did not adhere to the guidance. Effect or Potential Effect: The Organization could inadvertently fail to ensure that subrecipients are in compliance with Federal award agency regulations.Questioned Costs: None noted Context: The Organization did not register their subawards in excess of $30,000 with the Federal Funding Accountability and Transparency Act Subaward Reporting System. Identification as a Repeat Finding, if Applicable: 2022-001 Recommendation: We recommend that the Organization update its policies and procedures to ensure all first tier subawards in excess of $30,000 are accurately and timely registered with the Federal Funding Accountability and Transparency Act Subaward Reporting System. In addition, the Organization should ensure any subawards are reported within the required time-frame.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The Organization made every effort to register subawards in excess of $30,000 with the Federal Funding Accountability and Transparency Act Subaward Reporting System. However, due to the change from DUNS to UEI by the federal government and the requirement to use an organization’s UEI to find sub-awardees in FSRS.gov, the Organization was not able to register the subawards meeting the requirements. The Organization is still working with our sub-awardees to establish and collect UEI’s for each so this reporting can be completed this year.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 390106 2023-002
    Significant Deficiency
  • 390107 2023-001
    Significant Deficiency Repeat
  • 390108 2023-002
    Significant Deficiency
  • 966547 2023-001
    Significant Deficiency Repeat
  • 966548 2023-002
    Significant Deficiency
  • 966549 2023-001
    Significant Deficiency Repeat
  • 966550 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
98.001 Usaid Foreign Assistance for Programs Overseas $1.40M
19.345 International Programs to Support Democracy, Human Rights and Labor $863,646