We audited USAID’s financial statements for fiscal years 2018 and 2017 and issued an unmodified opinion.
With respect to internal control, we identified one deficiency that we consider a material weakness and three deficiencies that we consider significant deficiencies. The material weakness pertains to USAID’s process for reconciling its Fund Balance With Treasury account with the Department of the Treasury. The significant deficiencies pertain to USAID’s processes for (1) reconciling intragovernmental transactions, (2) maintaining adequate records of property, plant, and equipment, and (3) complying with Federal standards in accounting for reimbursable agreements.
Regarding compliance, we found no instances of substantial noncompliance with Federal financial management system requirements, but one instance that did not comply with Federal standards in accounting and the U.S. Standard General Ledger at the transaction level.
USAID management accepted and was taking corrective action on our two internal control recommendations.