Ukraine Response: USAID/Ukraine Adjusted Its Internal Processes and Strategies to Support Recovery Goals for Ukraine

Audit Report

Report Number

8-121-24-001-P

Oct 16, 2023

Why We Did This Audit

On February 24, 2022, Russia invaded Ukraine. At that time, the USAID Mission in Ukraine (USAID/Ukraine) managed 41 awards across the country totaling roughly $1.1 billion.
The escalating hostilities in Ukraine increased USAID/Ukraine’s need for flexible programming. In response, the Administrator gave the mission approval to modify its awards to address wartime conditions and align with Ukraine’s recovery efforts.
An award modification or amendment is an adjustment made to an existing acquisition or assistance award between USAID and an awardee.
We conducted this audit to determine the extent to which (1) USAID/Ukraine assessed selected awardees’ past performance and capacity before modifying development awards to respond to Russia’s invasion and (2) selected modified awards supported recovery goals in Ukraine.

Before modifying awards, USAID/Ukraine assessed selected awardees’ past performance and their capacity to take on additional funds. The mission also ensured that the award modifications aligned with strategies to support Ukraine’s recovery and developed an internal process to speed up the modification effort.
However, the mission inconsistently documented awardee performance during the modification process. USAID/Ukraine has updated its guidance for award modifications to address these inconsistencies.
USAID developed a Framework for the Agency’s response to Russia’s invasion. USAID ensured that the Framework aligned with USAID/Ukraine’s evolving development objectives post-invasion, and the government of Ukraine’s priorities for recovery.

The government of Ukraine’s recovery priorities are constantly evolving as the country’s war with Russia continues. To provide development and humanitarian aid that meets those priorities, USAID/Ukraine’s ability to modify existing awards is critical to providing effective, timely, and impactful aid.
USAID/Ukraine’s technical offices rely on close working relationships with their Ukrainian government counterparts. Information sharing with these counterparts is crucial for USAID/Ukraine’s decision-making process for award modification. We are making no recommendations as USAID continues to update its processes and modification of existing awards to respond to Russia’s invasion.