Why We Did This Audit
- The Government Management Reform Act of 1994 requires annual audits of the financial statements for the agencies we oversee.
- We contracted with the independent certified public accounting firm of GKA P.C. Certified Public Accountants and Consultants (GKA) to conduct an audit of USAID’s financial statements for fiscal years 2022 and 2021.
- The audit objectives were to: (1) express an opinion on whether the financial statements as of September 30, 2022 and 2021, were presented fairly, in all material respects; (2) evaluate USAID’s internal control over financial reporting; and (3) determine whether USAID complied with applicable laws, regulations, contracts, and grant agreements.
What We Found
- GKA concluded that USAID’s financial statements are presented fairly, in all material respects, and in conformity with U.S. generally accepted accounting principles.
- The audit firm did not identify any material weaknesses in internal control over financial reporting.
- However, the audit firm reported two significant deficiencies related to USAID’s internal control process for (1) calculating and recording accrued expenses and (2) security management.
- The audit firm found no reportable noncompliance for fiscal year 2022 with applicable laws, regulations, contracts, and grant agreements.
- We made seven recommendations to address the two significant deficiencies. USAID agreed with our recommendations.
Why It Matters
- These audits help ensure a more effective, efficient, and responsive government, in line with the Act. They provide a window into the financial conditions, internal control over financial reporting, and compliance of federal agencies like USAID. The audits also present an opportunity to recommend improvements, as needed.