USAID Conducted Risk Assessments and Monitoring for Sampled Fixed Amount Awards

Why We Did This Audit 

• USAID has increased its use of fixed-amount awards (FAAs) with the growing emphasis on expanding locally led development.
• The Agency plans to increase funding these types of awards and shift the financial oversight processes required by traditional awards to the upfront risk assessments and deliverable-based monitoring used for FAAs.
• In 2013, the Office of Management and Budget issued new guidance for administering Federal grants to improve performance and outcomes and reduce the overall administrative burden for organizations implementing awards. 
• Unlike traditional assistance awards, which require agencies to ensure implementer costs are eligible for payment, FAAs do not require agencies to review actual costs incurred by implementers.
• As USAID expands its efforts to work with diverse partners on locally led development solutions, the Agency has promised to shift from traditional awards, which focus on compliance, to FAAs, which incorporate a pay-for-results approach. 

What We Found

• We initiated this audit to determine whether (1) USAID conducted risk assessments before issuing FAAs and (2) oversight of FAAs ensured that selected milestones were completed in accordance with the terms of the awards.
• Mission staff conducted risk assessments before issuing the FAAs in our sample.
• USAID ensured that selected milestones were completed in accordance with the terms of the sampled FAAs.

What We Recommend

• Based on our findings, we made no recommendations.