USAID Complied with the GONE Act but Still Has a High Risk of Delayed Grant Closeout

Audit Report
Report Number
0-000-20-002-C

OIG issued an audit report on USAID’s grant closeout process and compliance with the requirements of the Grants Oversight and New Efficiency (GONE). OIG contracted with the independent certified public accounting firm of RMA Associates, LLC to conduct the audit in accordance with generally accepted government auditing standards. The audit firm concluded that the overall risk of delayed grant closeout is high based on weaknesses it identified in grant closeout communication, procedures, de-obligation of awards, documentation, and employee training and certification. OIG made nine recommendations to address these weaknesses and considers all the recommendations open and unresolved. The audit firm also concluded that USAID complied with the reporting requirements of the GONE Act in fiscal years 2017 and 2018

0-000-20-002-C.pdf794.69 KB

Recommendations

Recommendation
1

USAID, Bureau for Management, Office of Acquisition and Assistance consolidate its grant closeout process.

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

USAID, Bureau for Management, Office of Acquisition and Assistance assign clear roles and responsibilities to individuals for the closeout process, and coordinate with other organizations on their grant closeout process.

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

USAID, Bureau for Management, Office of Acquisition and Assistance revise its procedures to develop control activities that align with the
GONE Act criteria and 2 CFR Subpart D-Post Federal Award Requirements, S200.343 Closeout, paragraph (g); and de-obligate grants in a timely fashion.

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

USAID, Bureau for Management, Office of Acquisition and Assistance conduct an analysis to close out and de-obligate the $178.3 million obligated for expired awards and put the funds to better use, as applicable.

Questioned Cost
0
Funds for Better Use
178300000
Close Date
Recommendation
5

USAID, Bureau for Management, Office of Acquisition and Assistance remove the employee from the system as a COR until that individual has received the required training.

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

USAID, Bureau for Management, Office of Acquisition and Assistance conduct a thorough review to ensure that the employees assigned the COR role in the system have received the required training to be recognized as a COR.

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

USAID, Bureau for Management, Office of Acquisition and Assistance follow documented policies and procedures regarding training and
career/professional development required for the COR role; ensure that the policy is implemented and followed by all staff members; and retain appropriate documentation, specifically, training certificates.

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

USAID, Bureau for Management, Office of Acquisition and Assistance follow documented policies and procedures regarding the closeout of grants.

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

USAID, Bureau for Management, Office of Acquisition and Assistance ensure that agency policy adequately addresses which type of closeout
documentation is required for the type of grant being closed out.

Questioned Cost
0
Funds for Better Use
0
Close Date