FAC Explorer

Finding 44605 (2022-001)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2022-11-17
Audit: 49113
Organization: Heifer Project International (AR)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The final technical and financial report for Project KE0366 was submitted late, on October 14, 2021, instead of the due date of September 25, 2021.
  • Impacted Requirements: The grant agreement specified a strict reporting timetable that was not followed, risking potential funding suspension.
  • Recommended Follow-Up: Ensure all reports are submitted on time as per grant agreements to avoid future delays and funding issues.

Finding Text

Finding 2022-001 Assistance Listing Number 98.001, USAID Foreign Assistance for Program Overseas. Passed through International Livestock Research Institute (ILRI-CGIAR)?Value Chain Development (Dairy Value Chain) linked to CRP on Livestock and Fish?AID-BFS-11-00002-10. Award year: April 1, 2019 through September 15, 2021. Finding: A required technical and financial report submission was submitted to the granting agency after the stated due date per the grant agreement, which resulted in a late submission. Criteria: The grant agreement related to internal project ID KE0366 included a reporting timetable for all the report submissions and related due date. The final report submission for the period covering July 1 ? 15, 2021 was required to be submitted to the granting agency by September 25, 2021. Condition: The technical and financial report for Project KE0366 for the report covering the period July 1 ? 15, 2021 should have been submitted to the granting agency by September 25, 2021 in accordance with the due date stated in the grant agreement. However, the report was submitted on October 14, 2021. Cause: No specific cause was noted by management, however, the technical and financial reports were ultimately submitted to the granting agency. Effect or potential effect: Potential suspension of funding provided by federal agencies. Questioned costs: None. Context: Specific to the technical and financial report for Project KE0366 for the report covering the period July 1 ? 15, 2021. Report submission due date per the agreement was September 25, 2021. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend the Organization file each report that is required per the grant agreements timely to the granting agency. Views of responsible officials: Management agrees with this finding.

Corrective Action Plan

Identifying Number: 2022-001 Finding: A required technical and financial report submission was submitted to the granting agency after the stated due date per the grant agreement which resulted in a late submission. Corrective Actions Taken or Planned: Although both the technical and financial reports were submitted to the donor, Heifer agrees that the reports were submitted past the due date stipulated in the terms and conditions of the contract. Project leads will be required to maintain a catalog of all awards? technical and financial reporting due dates under their responsibility. Project leads will regularly monitor donor reporting due dates to ensure that technical and financial reports are submitted on time. Should there be a potential for delay in reporting, project leads will notify the respective donor through written communication and request an extension. Heifer management will ensure these controls are established and implemented by project leads. Compliance with donor reporting requirements and its related documentation will be periodically reviewed by Heifer?s Financial Awards Compliance Function. This system will be in place and fully operational by 30 June 2023. Heifer?s Senior Area Vice Presidents for Programs (Adesuwa Ifedi, Mahendra Lohani, and Oscar Casta?eda) are responsible for ensuring the implementation of this corrective action plan. Additionally, Heifer is in the process of implementing an Integrated Program Management System (IPMS). IPMS provides effective, agile minimum global standards for project management that are flexible enough to allow adaptation based on team?s needs, local context, project funder, etc. It provides the tools, templates, and guidelines built into a cloud-based software (NGO Online) for program staff to make decisions with real time information on the project. This tool will include a Compliance Checklist and associated tasks lists which will ensure Heifer projects are compliant with the funding requirements. Global roll-out of this system is estimated to be fully operational by mid-2023.

Categories

Procurement, Suspension & Debarment Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
98.001 Usaid Foreign Assistance for Programs Overseas $339,990