FAC Explorer

Finding 48060 (2022-001)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-12
Audit: 41740
Organization: Rotary International (IL)
Auditor: Deloitte & Touche LLP

AI Summary

  • Core Issue: Rotary International did not submit two SF-425 reports and three monthly performance reports on time.
  • Impacted Requirements: Reports were due within 30 days for SF-425 and 10 days for performance reports, per USAID guidelines.
  • Recommended Follow-Up: Implement controls to ensure timely submissions and request extensions when necessary.

Finding Text

CFDA 98.001 USAID Hearts of Europe: Strengthening the Transatlantic Economic Relationship Finding 2022-001 Criteria Per the United States Agency for International Development (?USAID?) cooperative agreement, recipients of USAID funds are required to submit a Standard Form 425 (SF-425) on a quarterly basis within 30 days after quarter-end. In addition, USAID requires performance reports to be submitted on a monthly basis within 10 days of month-end. Condition During our fieldwork, we selected two SF-425 reports and noted two were not submitted within the required timelines. In addition, we selected five of the monthly performance reports and noted three were not submitted within the required timelines. Cause Rotary International failed to submit the SF-425 and performance reports on time as a result of the implementation of a new general ledger system. Effect Failure to submit federal reports on time may result in noncompliance with reporting requirements. Questioned costs None. Perspective Two of two SF-425 reports and three of five monthly performance reports submitted by Rotary International were not submitted within the required timelines. Recommendation Adhere to established controls to ensure all reports are submitted in accordance with required timelines. Request extensions from the grantor when circumstances exist that prevent adherence to required reporting timelines. Views of responsible officials See corrective action plan.

Corrective Action Plan

The Standard Form 425 (SF-425) is required to be submitted on a quarterly basis within 30 days after quarter-end. In addition, USAID requires performance reports to be submitted on a monthly basis within 10 days of month-end. The quarterly report is dependent on monthly close of the General Ledger, while the monthly performance reports are dependent upon receiving reports and surveys from sub-awardees. The monthly and quarterly reports were submitted in a short time following the due date. The delay is attributed to turnover in Rotary?s staff producing the agency's reports and the limited availability of other resources to assist due to the implementation of Rotary?s new financial system. Rotary was not notified by USAID of any negative impact on its payment processing subsequent to the late submission of the quarterly or monthly reports. Rotary will develop and implement a plan to monitor and ensure that reports are submitted by the established due dates. If circumstances appear to result in reporting delays, Rotary will promptly request an extension and obtain acknowledgement of the extension in writing from USAID. Amanda Ottman, Manager of Strategic Relationship will oversee and implement the corrective action plan by third quarter of fiscal year 2023.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
98.001 Usaid Foreign Assistance for Programs Overseas $2.32M
99.U11 Open World Leadership Center $106,083