Audit of USAID's Financial Statements for Fiscal Years 2019 and 2018

Audit Report
Report Number
0-000-20-006-C

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.

0-000-20-006-C.pdf2.28 MB

Recommendations

Recommendation
1

USAID's Chief Financial Officer enforce its written policies and procedures which require that long outstanding Fund Balance with Treasury (FBWT) unreconciled items be researched and cleared within 3 months of the date of the transaction.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
2

USAID's Chief Financial Officer enforce its written policies and procedures designed to ensure that suspense account transactions are researched and resolved within 60 days, as mandated by the Department of the Treasury.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
3

USAID's Chief Financial Officer continue to review, monitor, and coordinate with the Office of Acquisition and Assistance and the Executive Office to determine whether the $32 million obligations identified as excessive and without disbursement for 3 years should be de-obligated and the funds put to better use, or returned to Treasury.

Questioned Cost
0
Funds for Better Use
32000000
Close Date
Recommendation
4

USAID's Chief Financial Officer adjust the financial statements for the $32 million error posted to the general ledger.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
5

USAID's Chief Financial Officer provide training on the accrual calculation process for the obligation officers/program managers (i.e., COR/AOR).

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
6

USAID's Chief Financial Officer require secondary reviews and approval of entries and adjustment vouchers, including accrual entries into the accounting system.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
7

USAID's Chief Financial Officer update the System access control policies and procedures to ensure that the password settings are consistent with the Automated Directives System (ADS) Chapter 545,
Information Systems Security.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
8

USAID's Chief Financial Officer update password settings to ensure they are compliant with the Agency's requirements.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
9

USAID's Chief Financial Officer update password settings for the databases supporting the System to ensure they are compliant with the Agency's requirements.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
10

USAID's Chief Financial Officer ensure that risk acceptances are properly documented within the System Security Plan if operational need necessitates that password settings cannot be configured in accordance with the Agency's policy.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
11

USAID's Chief Financial Officer manage access to the databases supporting the System, including processes for granting, modifying, periodically reviewing/recertifying access permissions, disabling inactive accounts, and removing access permissions.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
12

USAID's Chief Financial Officer require that ISSOs formally approve access to the System via the System Access Signature Form.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
13

USAID's Chief Financial Officer ensure that users are only assigned roles approved on their System One Access Signature Forms.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
14

USAID's Chief Financial Officer review and recertify access to the System production and reporting databases in accordance with the frequency established in the Agency's System Security Plan.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
15

USAID's Chief Financial Officer conduct quarterly review of System user access via the Bureau Transition Coordinators' Roles and User ID Report.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
16

USAID's Chief Financial Officer ensure that the triennial System access recertification includes all users, and that any access permissions not explicitly requested and approved during the recertification are disabled/removed.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
17

USAID's Chief Financial Officer ensure that System administrators are notified promptly when accounts are not needed due to contractor or employee termination, and that such accounts are promptly disabled.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
18

USAID's Chief Financial Officer ensure that access is disabled after 90 days of inactivity in accordance with the Agency's policy.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
19

USAID's Chief Financial Officer update the System roles documents to include all roles and identifying all segregation of duty conflicts.

Questioned Cost
0
Funds for Better Use
0
Close Date