Review of Security Costs Charged to USAID Projects in Afghanistan

USAID/Afghanistan conduct appropriate risk and impact assessments of current and proposed locations that are targeted for Local Governance and Community Development subprojects to determine whether the security environment in those locations is permissive enough to allow civilian implementation and monitoring efforts to proceed without interference from insurgent groups.

USAID/Afghanistan direct Development Alternatives, Inc., to conduct an internal audit of all offices under the Local Governance and Community Development Project to evaluate internal controls and take appropriate corrective actions on any material weaknesses identified and fraud uncovered. A copy of the report is to be provided to the USAID/Afghanistan Controller and the USAID Office of Inspector General.

USAID/Afghanistan direct Development Alternatives, Inc., to implement policies and procedures to perform adequate cost analysis of fair market prices and to detect and prevent inflated costs and possible fraudulent activity as part of its subcontracting process for the Local Governance and Community Development Project.

USAID/Afghanistan develop an action plan to maintain a sufficient level of oversight of subcontracting and purchasing systems by Development Alternatives, Inc., for the Local Governance and Community Development Project.