Finding 513465 (2024-001)

Finding 2024-001 Reporting – Federal Funding Accountability and Transparency Act (FFATA) Assistance Listing Number: 98.007/98.008 Program Name: USAID Foreign Food Aid Donation Cluster Granting Agency: U.S. Agency for International Development (USAID) Federal Award Identification number and Award Year: 72DFFP20CA00007; October 1, 2020 – September 30, 2025 Criteria: As per 2 CFR 200.170, 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 Subaward Reporting System (FSRS). The subaward information should be reported no later than the end of the month following the month in which the obligation was made. Condition: During our testing of the FFATA reporting compliance, we tested a sample of seven (7) FFATA reports that were submitted to FSRS and found that three (3) reports from our samples were not submitted within the required time frame. Cause: The information needed for FFATA reporting is provided by the implementing partner and Country Office to CARE’s Shared Service Center (SSC) for submission. In these three instances, the subaward modifications and amendments made in fiscal year 2024 was not received timely from one Country Office resulting in untimely submission of the FFATA reports. Effect or potential effect: The delay in submission of the reports resulted in CARE not reporting the required information in FSRS within the required time frame; thereby resulting in noncompliance with the reporting requirements. Questioned Costs: None. Context: There were a total of 13 FFATA report submissions during fiscal year 2024 under the Foreign Food Aid Donation Cluster. We tested seven (7) FFATA reports and noted delays in submission of three (3) reports. The three subaward modifications related to one (1) country office – Zimbabwe. Although the three reports were not submitted within the required time frame, we noted that upon their eventual submission, the information submitted was complete and accurate and met all other compliance requirements. Identification as a repeat finding, if applicable: This is not a repeat finding from prior year. Recommendation: We recommend CARE continue to reinforce the importance of timely submission of required documents to all business units involved in the FFATA reporting process. While it appears that management has a process to appropriately monitor and identify whether the submission of the report has occurred, it is not evident that there are appropriate investigation and resolution control activities to prevent or timely resolve instances of delayed report submissions. As such, we recommend CARE implement appropriate centralized investigation and resolution controls at the SSC or Corporate level when potential FFATA report delays are identified. Views of responsible officials: CARE agrees with the finding and will take steps to institute a process to investigate and resolve delays in country office submission of FFATA reporting information. The control process will include an escalation procedure for country office non-responsiveness to the current proactive reminder communications. Award Management Solutions (AMS) and Shared Services Center will also introduce the following additional controls: • AMS will hold engagement sessions within 90 days with the CARE country offices and regional offices managing USG awards. The sessions will re-enforce their accountability as a key performance indicator for complying with the FFATA reporting requirements, ensuring responsiveness to Shared Services Center communications and submissions of required documentation within the regulatory timeframe. • Shared Services Center will activate set-up in CARE accounting system (PeopleSoft) of a new partner funding agreement (PFA) and partner modifications only with submission of the FFATA reporting information. • AMS to modify the PFA review and approval checklist to incorporate the FFATA information.