EIN: 680442399
UEI: ZTH5N5TKRNES
Data as of August 25, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 24, 2021. 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 August 24, 2021 (1828 days ago).
What is a management decision? →During the audit we noted that Roots of Peace had made cash drawdowns using overhead provisional indirect cost rates for the fiscal years 2015, 2016, 2017, and 2018 of 35.31%, 37.88%, 37.88% and 37.88% respectively, as approved in the agreement dated October 5, 2018. Also, since no indirect cost rate was approved for the fiscal year 2019, Roots of Peace used the provisional rate of 37.88%. On January 29, 2020, Roots of Peace received final approved indirect costs rates of 35.31%, 37.88%, 31.34%, 21.60%, and a provisional indirect cost rate of 21.60% for the fiscal years 2015, 2016, 2017, 2018, and 2019, respectively. Questioned Costs: None identified. Context: This finding impacts internal control for the accounting of federal funds received directly from the United States Agency for International Development (?USAID?) on contract number 306-A-00-10-00512-00 for the Commercial Horticulture and Agriculture Marketing Program (?CHAMP?). Cause: The excessive cash drawdowns were due to the application of higher indirect cost rates due to delays in obtaining final indirect costs rates from USAID. Also, due to these delays, management recorded adjusting journal entries to properly reconcile the excess indirect costs included in the Program?s total costs for reimbursement from USAID. Effect: As result of the above anomaly, Roots of Peace?s revenues were overstated which resulted in a total deferred revenue at December 31, 2019 of $1,262,128. Recommendation: We recommend Roots of Peace, to work closely with USAID to ensure timely responses to the negotiated indirect cost rate agreement proposals in order to execute the terms of the agreement on a timely basis.
Show full finding ▾Hide full finding ▴2019-001 Cash Management Criteria: Cash management process of a federal award requires that either cash drawdowns are made on a cost reimbursement basis, or advances to be made with the timeframe stipulated in the federal regulations in ensuring that the time period between the provision of the advance and the actual utilization of the advance is minimized. Condition: During the audit we noted that Roots of Peace had made cash drawdowns using overhead provisional indirect cost rates for the fiscal years 2015, 2016, 2017, and 2018 of 35.31%, 37.88%, 37.88% and 37.88% respectively, as approved in the agreement dated October 5, 2018. Also, since no indirect cost rate was approved for the fiscal year 2019, Roots of Peace used the provisional rate of 37.88%. On January 29, 2020, Roots of Peace received final approved indirect costs rates of 35.31%, 37.88%, 31.34%, 21.60%, and a provisional indirect cost rate of 21.60% for the fiscal years 2015, 2016, 2017, 2018, and 2019, respectively. Questioned Costs: None identified. Context: This finding impacts internal control for the accounting of federal funds received directly from the United States Agency for International Development (?USAID?) on contract number 306-A-00-10-00512-00 for the Commercial Horticulture and Agriculture Marketing Program (?CHAMP?). Cause: The excessive cash drawdowns were due to the application of higher indirect cost rates due to delays in obtaining final indirect costs rates from USAID. Also, due to these delays, management recorded adjusting journal entries to properly reconcile the excess indirect costs included in the Program?s total costs for reimbursement from USAID. Effect: As result of the above anomaly, Roots of Peace?s revenues were overstated which resulted in a total deferred revenue at December 31, 2019 of $1,262,128. Recommendation: We recommend Roots of Peace, to work closely with USAID to ensure timely responses to the negotiated indirect cost rate agreement proposals in order to execute the terms of the agreement on a timely basis.
FINANCIAL STATEMENT FISCAL YEAR ENDING DECEMBER 31, 2019 2019-001 Cash Management Criteria: Cash management process of a federal award requires that either cash drawdowns are made on a cost reimbursement basis, or advances to be made with the timeframe stipulated in the federal regulations in ensuring that the time period between the provision of the advance and the actual utilization of the advance is minimized. Condition: During the audit we noted that Roots of Peace had made cash drawdowns using overhead provisional indirect cost rates for the fiscal years 2015, 2016, 2017, and 2018 of 35.31%, 37.88%, 37.88% and 37.88% respectively, as approved in the agreement dated October 5, 2018. Also, since no indirect cost rate was approved for the fiscal year 2019, Roots of Peace used the provisional rate of 37.88%. On January 29, 2020, Roots of Peace received final approved indirect costs rates of 35.31%, 37.88%, 31.34%, 21.60%, and a provisional indirect cost rate of 21.60% for the fiscal years 2015, 2016, 2017, 2018, and 2019, respectively. Cause: The excessive cash drawdowns were due to the application of higher indirect cost rates due to delays in obtaining final indirect costs rates from USAID. Recommendation We recommend Roots of Peace, to work closely with USAID to ensure timely responses to the negotiated indirect cost rate agreement proposals in order to execute the terms of the agreement on a timely basis. Corrective Action Plan: Management has started an open communication to ensure timely approval on the negotiated indirect cost rate agreement.
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