Management Sciences for Health, Inc.

HS4TB-Global (ALN 98.U10) Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109-282), codified in 2 CFR 170.330, the disbursement should be reported in the FFATA Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward amendment obligation was made or the subcontract award modification was made. Condition: FFATA monitoring submissions were not submitted timely in the FSRS. Cause: There was not adequate tracking of report deadlines nor cross training of employees. Effect: Failure to comply with the FFATA FSRS reporting standard. Context: In a sample of six subawards, two subawards within the Organization?s submission listing were not reported timely. Identification as a repeat finding: This is a repeat of finding 2021-001. Recommendation: Management should ensure proper cross training of functions and responsibilities. Management should also create a tracking mechanism for all federal compliance reports along with due dates, responsible individual and secondary responsible individual. Views of Responsible Officials (unaudited) Management agrees with the finding.

Finding 2021-001 late subrecipient monitoring submission (significant deficiency in internal control over compliance)USAID Foreign Assistance for Program Overseas (ALN 98.001)Criteria:Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109-282), codified in 2 CFR 170.330, the disbursement should be reported in the FFATA Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward amendment obligation was made or the subcontract award modification was made.Condition:FFATA monitoring submissions were not submitted timely in the FSRS.Context:In a sample of 19 subawards, four subawards within the Organization?s submission listing were not reported timely.Effect:Failure to comply with the FFATA FSRS reporting standard.Cause:There was not adequate tracking of report deadlines nor cross training of employees, as the individual responsible for the filings was on an unexpected leave.Recommendation:Management should ensure proper cross training of functions and responsibilities. Management should also create a tracking mechanism for all federal compliance reports along with due dates, responsible individual and secondary responsible individual.Views of Responsible Officials (unaudited)Management agrees with the finding.

Finding 2021-002 late submission of reporting requirementsUSAIDForeign Assistance for Program Overseas (ALN 98.001)Criteria:Pursuant to 2 CFR Part 200.328 organizations must submit financial and performance reports at the interval required by the Federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity.Condition:Federal reporting reports were not submitted timely to the funding agency.Context:In a population of 58 reporting intervals, two instances within the Organization?s reporting listing were not reported timely.Effect:Failure to comply with the federal awarding agency reporting standard.Cause:Although there are controls in place to ensure timely submission of reports, certain reports were not filed timely due to a misunderstanding of requirements by certain employees.Recommendation:Management should ensure proper cross training of functions and responsibilities. Management should also create a tracking mechanism for all federal compliance reports along with due dates, responsible individual and secondary responsible individual.Views of Responsible Officials (unaudited)Management agrees with the finding.

Finding Number 2019-001 Information on Compliance Requirement: Procurement Federal Program(s) USAID Foreign Assistance for Programs Overseas CFDA #: 98.001 Grant Award #: AID-612-C-17-00001 United States Agency for International Development Criteria ?200. 516(a) Audit Findings (1)(6) requires known or suspected fraud to be reported by the auditor. Condition We were informed by MSH management about various fraud cases that were investigated and reported by MSH Internal Audit and also disclosed to USAID, which indicated possible collusion of supplier and Management Sciences for Health staff. The losses were wholly reimbursed to the USAID project by MSH. 1) $62,053 loss due to collusion between employees and an outside third party; where improper payments were made to the third party. 2) $40,565 loss due to duplicate invoices (overcharge for vehicle rental services) by "Options Car Rental" company based on the review of the six (6) duplicate invoices. 3) $7,438 loss due to misappropriated mobile money funds by an employee. Questioned Costs None. Context This is a condition identified during our site visit to Malawi and subsequent inquiries with management. Effect Noncompliance with procurement requirements under Uniform Guidance occurred. Cause Individuals intentionally circumvented MSH's established internal controls. Recommendation As it has historically, MSH should continue to ensure that the internal control recommendations made by its internal Audit Department are implemented to mitigate risk of reoccurrence. This includes continual training on fraud risks, continued focus on whistle-blower activities addressing control deficiencies and continued focus on a risk-based internal audit process. Views of Responsible Officials Management agrees with the finding. See management's Corrective Action Plan.

Information on Compliance Requirement: Equipment and Real Property Management Federal Program(s) USAID Foreign Assistance for Programs Overseas CFDA #: 98.001 Grant Award #: AID-OAA-A-11-00021 (A227) 100303.001.007.006.001, Prime Agreement #AID-OAA-A-14-00045 (A474) 4353-MSH-01Feb17, Prime Agreement #AID-654-A-17-00003 (A525) United States Agency for International Development Criteria ?200.313 Equipment requires that recipients of federal awards who acquire equipment shall maintain proper equipment records, which should include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, the use and condition of the property, and any ultimate disposition data, including the date of disposal and sale price of the property. Condition During BDO's site visit to Bangladesh, we noted that the Centrifuge machine and refrigerators did not have MSH tag numbers assigned as required by MSH policy. In addition, during our testing of the equipment listing maintained by MSH Angola office, we noted the following: 1) The property records did not contain the required information, such as acquisition cost, disposal date, federal fund percentage, title holder or physical location. 2) Information in various fields was missing or incorrectly entered. Questioned Costs None. Context This is a condition identified during our equipment and real property management testing. Effect Noncompliance with equipment and real property management requirements under Uniform Guidance occurred. Cause Although MSH has established policies and procedures to ensure compliance with Uniform Guidance equipment and real property management standards, field offices have not, in all cases, complied with MSH?s documented policies. Recommendation We recommend that management ensure compliance with the equipment and real property policy by all offices. Additionally, we recommend an inventory listing template to be developed centrally, allowing for a uniform implementation by all field offices. The template should contain the minimum information required by Uniform Guidance and terms and conditions of federal awards. Views of Responsible Officials Management agrees with the finding. See management?s Corrective Action Plan.

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