Finding 39669 (2022-001)

(3) Findings and Questioned Costs Relating to Federal Awards Finding 2022-001 Finding # 2022-01 Program information Federal Program: International Labor Programs ALN: 17.401 Federal Agency: United States Department of Labor Pass-through entity(ies): None Grant Name(s): Mexico Campos de Esperanza Grant ID Number(s): IL-29993-16-75-K-11 Federal Award Year: October 1, 2021 to September 30, 2022 Federal Program: USAID Foreign Assistance for Programs Overseas ALN: 98.001 Federal Agency: United States Agency for International Development Pass-through entity(ies): None Grant Name(s): Indonesia BHA DRR SINERGI II, Guatemala Community Roots, Armenia-Community Level Access Social Service Grant ID Number(s): 720BHAS21GR00102, AID-520-A-17-00001, AID-111-A-17-00001 Federal Award Year: October 1, 2021 to September 30, 2022 Criteria or requirement: Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, hereafter referred to as the ?Transparency Act? that are codified in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward / subaward amendment obligation was made or the subcontract award / subcontract modification was made. Condition found, including facts that support the deficiency identified in the finding and information to provide proper perspective for judging the prevalence and consequences of the finding For ALN 17.401, one of one subaward selected for testing was obligated during fiscal year 2022, but was not timely reported per the criteria above, and was submitted at a later date. For ALN 98.001, three of nine subawards selected for testing were obligated during fiscal year 2022, but were not timely reported per the criteria above, and were submitted at later dates. For both programs, all errors identified occurred for selections of obligations made prior to March 11, 2022 Cause and possible asserted effect: The control for submission of FFATA reports prior to March 11, 2022 was insufficient to continuing operating when the primary control operator was unavailable. Identification of questioned costs and how they were computed: None Sample statistically valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat finding from prior year: This finding is a repeat of finding 2021-001 from the September 30, 2021 audit. Recommendation: Consistent with 2021 report and our communication to management in February 2022, we recommend that management design a control process to properly monitor and manage timely subaward report submissions. Views of responsible officials: World Vision agrees that the four selected FFATA reports were submitted 14, 14, 2, and 3 days later than the required deadline. Upon identification of the prior year finding, World Vision implemented an improved control process for collecting required information, training relevant staff, and reviewing report status to ensure FFATA reports are submitted prior to the due date. The improved control process was implemented March 11, 2022.