EIN: 520846183
UEI: ED1ZKHMLK527
Audited by: GELMAN, ROSENBERG & FREEDMAN
Cognizant agency: 98 [U.S. Agency for International Development]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 29, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 29, 2026 (119 days from today).
What is a management decision? →FAC accepted this audit on June 24, 2025 — management decision was due December 24, 2025.
Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows: Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000 Sri Lanka: Employee misappropriation of assets – approximately $18,900 Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Show full finding ▾Hide full finding ▴Finding 2024-002 Known Fraud (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Management of Global Communities was notified of instances of three instances of fraud within its country offices as follows: Democratic Republic of the Congo: Employee misappropriation of assets – approximately $40,000 Sri Lanka: Employee misappropriation of assets – approximately $18,900 Ukraine: Procurement fraud - approximately $3,100 Cause: Global Communities did not adequately safeguard its assets. However, Global Communities’ monitoring procedures did detect the frauds and they have subsequently enhanced internal controls in these areas. Effect or Potential Effect: After investigation, Global Communities did not find any evidence that a Federal award was affected, but Global Communities notified USAID and coded the amounts in question to unallowable expenses in the general ledger (management did not charge the Federal programs for these costs). Questioned Costs: None Context: The instances of fraud were identified through the audit fraud inquiry process of management. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We strongly recommend that Global Communities continue to review its current systems of internal controls, and enhance them where necessary, especially in the higher risk locations, to ensure they are functioning as designated and to prevent further occurrences of misappropriation of assets and procurement fraud.
Views of Responsible Officials and Planned Corrective Action: Global Communities policies and procedures did detect these instances of fraud, management of Global Communities took appropriate action ensuring that no unallowable costs were charged to Federal funds. Global Communities will continue their due diligence with respect to any items that are considered fraudulent in nature. Any high-risk areas are carefully monitored, additional training and/or resources are provided to ensure that internal controls are functioning as designed to prevent occurrences of misappropriation of assets and procurement fraud.
During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Show full finding ▾Hide full finding ▴Finding 2024-003 Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (Significant Deficiency) Information on the Federal Program: 98.001 USAID Foreign Assistance for Programs Overseas, 10.608 Food for Education. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As noted in 2 CFR Part 170, recipients (i.e. direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS. Prime awardees are required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any subaward with a value greater than or equal to $30,000. Condition: During our audit, we noted three cases in which the required subaward reporting was not completed within the required timeframe. The reports were ultimately filed late. Additionally, we noted that Global Communities does not have a process to formally document the internal control for the review and approval of FFATA reports prior to submission. Cause: Administrative oversight. Effect or Potential Effect: Noncompliance with FFATA reporting requirements could potentially result in withholding of future payments, award suspension or termination, and ineligibility for future awards. Questioned Costs: None Context: Our testwork consisted of a sample of five subawards. Late reporting was noted for three of the five subawards tested. The control deficiency is considered systemic in nature. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management take steps to raise awareness of the FFATA reporting deadlines to those staff responsible for maintaining compliance with FFATA reporting requirements. Additionally, we recommend that Global Communities enhance documentation related to review and approval of such reports prior to submission.
Views of Responsible Officials and Planned Corrective Action: Global Communities experienced staff turnover in the positions responsible for FFATA reporting. Management will ensure those staff now responsible for maintaining compliance with FFATA reporting requirements have received adequate training and that supporting documentation of the review and approval of FFATA reports prior to submission are retained in our files.
FAC accepted this audit on April 17, 2024 — management decision was due October 17, 2024.
Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Show full finding ▾Hide full finding ▴Finding 2023-002 Timesheet Allocations (Ukraine) Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance for Programs Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): CFR §200.430 Compensation—personal services. States; (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: Our audit of Global Communities Ukraine revealed instances in which salary allocations charged to federal grants did not accurately reflect actual project allocations reported on employee timesheets. Subsequent to audit fieldwork, Global Communities management performed a detailed review of all timesheets and recorded a reallocation to correctly state salary allocations charged to grants. Cause: Ukraine salary allocations recorded in the general ledger were inadvertently miscalculated in comparison to time reported on employee timesheets. Effect or Potential Effect: Salary expense could be over or under charged to Ukrainian federal projects. Questioned Costs: N/A – management performed a detailed analysis and reallocation that is reflected in the accompanying Schedule of Expenditures of Federal Awards. Context: We selected a sample of employee salaries charged to Ukrainian federal projects. The sample was a statistically valid sample. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the headquarters office provide additional training to the Ukraine field office to strengthen internal controls around the salary allocation process. This is to ensure that salary allocation accurately reflects employee time reported on monthly timesheets.
Views of Responsible Officials: Management is committed to having a strong internal control structure that supports compliance with both internal and external policies and procedures. A system for continuous monitoring of the salary allocation process in the Ukraine field office will be implemented after additional training is provided. We will provide ongoing support and guidance to staff as they implement the newly acquired ERP system. Management will also conduct periodic evaluations to assess the impact of the training program on internal controls surrounding the salary allocation process.
FAC accepted this audit on April 11, 2023 — management decision was due October 11, 2023.
As part of our compliance audit over Global Communities programmatic reporting requirements under the major program, we noted numerous instances in which programmatic reports were not submitted to the federal agency by the deadline stated in the grant agreements. In some cases, reports were submitted as much as two months after the deadline. Ultimately, all reports were completed and accepted by the donor. Cause: The delay in report submissions was caused by an oversight in the programmatic department. Effect or Potential Effect: Late program report submissions result in delays of program monitoring and evaluation. Questioned Costs: N/A Context: As a federal award recipient, Global Communities is responsible for oversight of the operations of the Federal award supported activities. Global Communities must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Federal awards require varying programmatic reports to be submitted according to the timeframe stated in the grant agreement. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that Global Communities review its policies and procedures and strengthen internal controls to ensure that all programmatic reports are submitted to the donor by the deadlines stipulated in the terms of the agreement.
Show full finding ▾Hide full finding ▴Finding 2022-001 Programmatic Reporting Information on the Federal Program: Assistance Listing #98.001 USAID Foreign Assistance forPrograms Overseas Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 200.328 Monitoring and reporting program performance (b)(1) states that ?The non-Federal entity must submit performance reports at the interval required by the Federal awarding agency?. Condition: As part of our compliance audit over Global Communities programmatic reporting requirements under the major program, we noted numerous instances in which programmatic reports were not submitted to the federal agency by the deadline stated in the grant agreements. In some cases, reports were submitted as much as two months after the deadline. Ultimately, all reports were completed and accepted by the donor. Cause: The delay in report submissions was caused by an oversight in the programmatic department. Effect or Potential Effect: Late program report submissions result in delays of program monitoring and evaluation. Questioned Costs: N/A Context: As a federal award recipient, Global Communities is responsible for oversight of the operations of the Federal award supported activities. Global Communities must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved. Federal awards require varying programmatic reports to be submitted according to the timeframe stated in the grant agreement. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that Global Communities review its policies and procedures and strengthen internal controls to ensure that all programmatic reports are submitted to the donor by the deadlines stipulated in the terms of the agreement.
Views of Responsible Officials: While many of the above-listed delays were approved by the donor POCs, there were instances where staffing gaps contributed to delays. To ensure timely reporting, a report tracking system has been created where we are regularly updating the tracker with report deadlines. As an added measure ,notifications have been established to remind the responsible individuals. These various measures will help to ensure timely reporting.
FAC accepted this audit on April 13, 2022 — management decision was due October 13, 2022.
FAC accepted this audit on March 24, 2021 — management decision was due September 24, 2021.
FAC accepted this audit on April 8, 2020 — management decision was due October 8, 2020.
Global Communities field offices in Kenya and Tanzania use mobile money transfer to pay participants transport and other related allowances to minimize the risks associated with staff carrying cash. Fraudulent mobile money transfers were paid to two Global Communities employees in Tanzania, which resulted in cash misappropriations totaling approximately $18,000. Questioned Costs: None. Context: Global Communities failed to properly verify all mobile numbers for participants. Effect: Global Communities processed mobile payments mistakenly to employees who were not qualified recipients of those payments. Global Communities notified USDA and disallowed the costs associated with the fraudulent mobile payments. A total of approximately $6,900 was recovered from the employees and the remaining $11,100 was not charged to the federal award. Cause: Global Communities did not have the appropriate policies and procedures in place to ensure that mobile payments were sent to qualified participants. However, Global Communities' monitoring and evaluation procedures did detect the fraud and they have subsequently enhanced procedures to manually verify all mobile payments going forward. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Global Communities continue to strengthen internal controls with respect to mobile payments to qualified participants.
Show full finding ▾Hide full finding ▴Finding 2019-001: Reporting of Known Fraud in Tanzania Information on the Federal Program: USDA 10.606 - Food for Progress, AIMS Award Criteria or Specific Requirement (including statutory, regulatory, or other citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Part 200.302 Financial Management requires recipients to adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: Global Communities field offices in Kenya and Tanzania use mobile money transfer to pay participants transport and other related allowances to minimize the risks associated with staff carrying cash. Fraudulent mobile money transfers were paid to two Global Communities employees in Tanzania, which resulted in cash misappropriations totaling approximately $18,000. Questioned Costs: None. Context: Global Communities failed to properly verify all mobile numbers for participants. Effect: Global Communities processed mobile payments mistakenly to employees who were not qualified recipients of those payments. Global Communities notified USDA and disallowed the costs associated with the fraudulent mobile payments. A total of approximately $6,900 was recovered from the employees and the remaining $11,100 was not charged to the federal award. Cause: Global Communities did not have the appropriate policies and procedures in place to ensure that mobile payments were sent to qualified participants. However, Global Communities' monitoring and evaluation procedures did detect the fraud and they have subsequently enhanced procedures to manually verify all mobile payments going forward. Identification as a Repeat Finding, if Applicable: Not applicable. Recommendation: We strongly recommend that Global Communities continue to strengthen internal controls with respect to mobile payments to qualified participants.
Views of Responsible Officials and Planned Corrective Actions: We have added an extra layer of review with Stanbic Bank, our current bank in Kenya. Global Communities has been submitting to the bank a list of participants that have been attending workshops. The aforementioned list encompasses participants' names and telephone numbers. Upon receipt, the bank will run a new process known as "dry run" whereby the bank connects with mobile service providers to cross check and verify the information of mobile line owners i.e.; first name, last name and phone number. After the bank runs the "dry run" and sends the list of attendees back to Global Communities, the list is reviewed by Global Communities to ensure a 100% of match of participants before the payment is released. The "dry run" process was not available in Tanzania. Our Tanzania office has been closed out due to the end of program activities.
FAC accepted this audit on April 4, 2019 — management decision was due October 4, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on March 26, 2018 — management decision was due September 26, 2018.
FAC accepted this audit on April 3, 2017 — management decision was due October 3, 2017.
GSA_MIGRATION
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GSA_MIGRATION
2015-001
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2015-003
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