Audit of USAID’s Financial Statements for Fiscal Years 2020 and 2019

Audit Report
Report Number
0-000-21-001-C
We contracted with the independent certified public accounting firm of GKA P.C. (GKA) to conduct an audit of USAID’s financial statements for fiscal years 2020 and 2019. GKA issued an unmodified opinion for both years. The audit objectives were to: (1) express an opinion on whether USAID’s financial statements as of September 30, 2020 and 2019, were presented fairly, in all material respects; (2) evaluate USAIDs internal control over financial reporting; and (3) determine whether USAID complied with applicable laws and regulations. GKA concluded that USAID’s financial statements are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles. In addition, the audit firm did not identify any instances of noncompliance with applicable laws and regulations. GKA did not identify any material weaknesses in USAID internal control over financial reporting, however, GKA did identify two significant deficiencies as modified repeat findings from the prior year. The audit firm will follow up on our prior unresolved recommendations in fiscal year 2021. In addition, we are making six new recommendations to USAID related to the Agency’s internal control process for account management.

Recommendations

Recommendation 1

USAID's Chief Financial Officer Implement plans to create a separate role description document and access forms for back end Financial System Staff Roles and document any potential segregation of duties conflicts, specially conflicts with financial processing roles.

Questioned Cost:
$0
Funds For Better Use:
$0
Close Date:
Recommendation 2

USAID's Chief Financial Officer Implement a process to review System user access on an annual basis via the System Bureau Transaction Coordinator Roles and User ID Report and supporting evidence/acknowledgements to ensure that reviews occurred. Such
evidence/acknowledgements should be retained for an appropriate period.

Questioned Cost:
$0
Funds For Better Use:
$0
Recommendation 3

USAID's Chief Financial Officer Ensure that annual System user access recertification includes all users and ensure that any access permission not explicitly requested and approved during the recertification are disabled/removed.

Questioned Cost:
$0
Funds For Better Use:
$0
Recommendation 4

USAID's Chief Financial Officer Modify the Funds Control Accountant and Financial Management Analyst roles to mitigate the segregation of duties conflict and update the roles description. If the roles cannot be modified, then compensating controls should be implemented to mitigate the risk of users having these controls (i.e. monitoring and review, etc.).

Questioned Cost:
$0
Funds For Better Use:
$0
Close Date:
Recommendation 5

USAID's Chief Financial Officer Modify the Procurement Order Requestor and Procurement Obligation Processor roles to mitigate the segregation of duties conflict and update the roles descriptions. If the roles cannot be modified, then compensating controls should be implemented to mitigate the risk of users having these controls (i.e. monitoring and review, etc.).

Questioned Cost:
$0
Funds For Better Use:
$0
Close Date:
Recommendation 6

USAID's Chief Financial Officer Implement a written process to obtain system owner approval of shared database accounts. Documented approvals for shared database accounts in the system security plan (SSP). Controls for monitoring the activities and use of the shared accounts should also be documented in the SSP.

Questioned Cost:
$0
Funds For Better Use:
$0
Close Date: