PROJECT ANNOUNCEMENT: Audit of USAID’s Non-Federal Audit Program


The USAID Office of Inspector General, Millennium Challenge Corporation and Global and Strategic Audits Division is initiating an audit of USAID’s non-Federal audit (NFA) program. Federal regulations require agencies to ensure U.S.-based non-Federal entities that expend $750,000 or more in Federal awards during the fiscal year obtain annual NFAs in compliance with generally accepted government auditing standards (GAGAS). USAID is responsible for ensuring NFAs are performed by competent independent public accountants in compliance with government auditing standards. In addition, Federal agencies must establish an audit follow-up system to resolve NFA recommendations and implement corrective actions. USAID applies these regulations to all foreign entities implementing its awards.

The audit objectives are to (1) assess USAID operating unit controls over foreign audit firms conducting NFAs to ensure they are qualified to complete the work in accordance with GAGAS and (2) determine whether USAID has developed and implemented controls over allowing and sustaining NFA questioned costs to ensure compliance with applicable Federal cost principles.