The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of GKA P.C. to conduct the audit. The objectives were to: (1) express an opinion on whether the financial statements as of September 30, 2019, were presented fairly, in all material respects; (2) evaluate USAID’s internal control; and (3) determine whether USAID complied with applicable laws and regulations. The audit concluded that USAID’s financial statements as of and for fiscal year ended September 30, 2019, are presented fairly, in all material respects, and in conformity with generally accepted accounting principles. The audit found no instances of noncompliance with provisions of laws, regulations, contracts, and grant agreements. The financial statements as of and for September 30, 2018, were audited by USAID OIG auditors whose report dated December 17, 2018, expressed an unmodified opinion on those statements.
The audit reported significant deficiencies related to USAID’s internal control processes for reconciling suspense accounts, deobligating unliquidated obligations, recording accrued expenses, managing accounts, and improving information technology controls over financial systems. The audit made 19 recommendations, which OIG considers open and resolved.