Recommendation Dashboard

MCC verify that MCA-Benin II corrects the one significant deficiency in internal control detailed on pages 30 to 31 of the audit report.

MCC verify that MCA-Benin II corrects the one instance of material noncompliance detailed on page 32 of the audit report.

USAID develop a comprehensive risk management policy for assessing and mitigating risk for PIO awards. The policy should inform staff on risk tolerances and risk categories; provide a framework and guidance on how and when to assess risks, develop risk responses, and assign mitigating controls based on risks; and clearly communicate roles and responsibilities for carrying out risk management across the Agency.

USAID establish a dedicated, centralized entity with the authority and resources to assess and address (1) PIO performance, (2) PIO internal oversight effectiveness, (3) other crosscutting PIO oversight methods, and (4) oversight units operating across multiple organizations, using information from across the Agency.

USAID develop a comprehensive policy that outlines (1) what authority—for example, other transaction authority—will be used to make each PIO award and (2) what corresponding rules and regulations apply, to include the roles and responsibilities for individuals and offices responsible for award management.

USAID direct the Office of Foreign Disaster Assistance to (1) review and define its processes for making awards to PIOs to carry out work in long-term crisis environments and (2) update policies to ensure they include standards of internal control related to documenting the internal control system, analyzing risks, designing control activities, and documenting transactions by retaining records.

USAID direct the Office of Food for Peace to (1) review and define its processes for making awards to PIOs to carry out work in long-term crisis environments and (2) update policies to ensure they include standards of internal control related to documenting the internal control system, analyzing risks, designing control activities, and documenting transactions by retaining records.

USAID Establish requirements for PIOs to notify USAID of suspected and identified serious criminal misconduct in activities funded by USAID to include unlawful actions taken by employees, subpartners, subcontractors, vendors, or other parties. The requirements should specify the process for reporting and criteria for what to report.

USAID/West Bank and Gaza require Near East Foundation to establish and implement policies and procedures ensuring proper incorporation of the required mandatory provision in its subcontracts with third parties, as detailed on page 14 of Ernst and Young audit report.

USAID/Nepal determine the allowability of $90,732 in questioned costs ($29,011 ineligible, and $56,141 plus $5,580 unsupported) on page 3 of the audit report, and further detailed in Annexure V on page 41, and recover any amount that is unallowable.

USAID/Nepal verify that the Department of Health Services, Government of Nepal corrects the seven significant deficiencies (Findings 1-7 on pages 8-17 of the audit report).

USAID/Nepal verify that the Department of Health Services, Government of Nepal corrects the nine material instances of noncompliance (Findings 8-15 on pages 21-29 of the audit report and Observation 3 on page 2 of the management letter).

USAID/Dominican Republic determine the allowability of $15,724 in ineligible questioned costs in regard to the outstanding balance included on page 39 of the audit report and recover any amount that is unallowable.

USAID/Peru determine the allowability of $78,330 in ineligible questioned costs on page 20 of the audit report and recover any amount that is unallowable.

USAID/Peru determine the allowability of $28,848 in questioned costs ($7,698 ineligible, $21,150 unsupported) on page 21 of the audit report and recover any amount that is unallowable.

USAID/Peru determine the allowability of $49,846 in unsupported questioned costs reported in the cost sharing schedule on pages 48 and 50 of the audit report and recover any amount that is unallowable

USAID/Peru verify that GORESAM corrects the one material weaknesses detailed on page 28 of the audit report.

USAID/Peru verify that GORESAM corrects the four instances of material noncompliance detailed on pages 30 and 31 of the audit report.

USAID/Peru verify that GORESAM takes corrective action on the 9 prior year recommendations reported on page 18 of the audit report.

USAID's Office of Acquisition and Assistance, Cost, Audit and Support Division determine the allowability of $15,296,357 in unsupported direct costs from AECOM International Development, Inc. detailed on pages 2 through 4, and 12 through 16 of the audit report.

USAID's Office of Acquisition and Assistance, Cost, Audit and Support Division verify that AECOM International Development, Inc. corrects Findings #1 and #2 detailed on pages 12 through 16 of the audit report.

USAID/Afghanistan determine the allowability, and collect as appropriate, $1,329,286 in ineligible questioned costs, as detailed on pages 18 of the audit report.

USAID/Afghanistan verify that the Ministry of Agriculture, Irrigation and Livestock corrects the three material weaknesses (1. the recipient has not exercised its right to liquidate the collaterals against the loans written off over the project period, 2. the recipient has no documented financial statement closing process, and 3. the recipient has weaknesses in information technology general controls) and one significant deficiency in internal control related to the accounting application used by the recipient as detailed on pages 27 to 32 of the audit report.

USAID/Afghanistan verify that the Ministry of Agriculture, Irrigation and Livestock corrects the three instances of material noncompliance (1. loans and advances were written off in excess of the allowed 5% threshold of loans portfolio, 2. operating expenditure included in the fund accountability statement that were not included in the approved budget, and 3. advances paid to staff and prepayment to contractors against operational expenses. These payments were not provided in the budget) as detailed on pages 37 to 39 of the audit report.

USAID/Pakistan determine the allowability of $1,225,524 in questioned costs ($950,865 ineligible, $274,659 unsupported) as detailed in Table 1 on pages 3-4 of this memorandum, and recover any amount that is unallowable.

USAID/Pakistan determine (1) the breakdown of the $1,288,671 in questioned costs identified in the report on the fund accountability statement, (2) the questioned costs identified in the report on the fund accountability statement that did not pertain to the questioned costs summarized in Table 1 on pages 3-4 of this memorandum, and (3) the allowability and recovery, if appropriate, of these questioned costs.

USAID/Pakistan verify that the Provincial Reconstruction Rehabilitation and Settlement Authority, Government of Khyber Pakhtunkhwa corrects the 16 material instances of noncompliance detailed in Table 1 on pages 3-4 of this memorandum.

USAID's Office of Acquisition and Assistance, Cost, Audit and Support Division verify that The Nature Conservancy corrects the material weaknesses in internal control over financial reporting and in the report on internal control over compliance and the significant deficiencies in the report on internal control over compliance detailed on pages 49 through 52 and pages 55 through 61 of the audit report.

USAID's Office of Acquisition and Assistance, Cost, Audit and Support Division verify that The Nature Conservancy corrects the instances of noncompliance in the report on compliance and other matters for each major federal program detailed on pages 52 and 59 through 61 of the audit report.