Audit of USAID’s Financial Statements for Fiscal Years 2024 and 2023

Audit Report
Report Number
0-000-25-001-C

Why We Did This Audit 

  • The Government Management Reform Act of 1994 (the Act) requires annual audits of the financial statements for the agencies we oversee. 
  • We contracted with the independent certified public accounting firm of Williams, Adley & Company-DC LLP (Williams Adley) to conduct an audit of USAID’s financial statements for fiscal year 2024.  We had previously 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 year 2023.
  • The audit objectives for Williams Adley were to: (1) express an opinion on whether the financial statements as of September 30, 2024, 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

  • Opinion: Williams Adley concluded that USAID’s financial statements for fiscal year 2024 are presented fairly, in all material respects, and in conformity with U.S. generally accepted accounting principles. 
  • The audit firm also found no reportable noncompliance for fiscal year 2024 with provisions of applicable laws, regulations, contracts, and grant agreements.
  • The audit firm found no material weaknesses in internal control over financial reporting in fiscal year 2024 but found two significant deficiencies pertaining to personnel and payroll actions (modified repeat finding) and lease reporting.
  • For USAID’s fiscal year 2023 financial statements, GKA issued a report dated November 6, 2023, expressing an unmodified opinion meaning that the financial statements are presented fairly, in all material respects, and in accordance with U.S. generally accepted accounting principles.

Why It Matters

  • These audits help meet the Act’s intent of providing a more effective, efficient, and responsive government.
  • We are making nine recommendations to address the internal control deficiencies identified in the fiscal year 2024 report.  USAID agreed with all nine recommendations.
0-000-25-001-C.pdf2.39 MB

Recommendations

Recommendation
9

Ensure the new processes developed in Recommendations 4, 5, 7, and 8 are adequately communicated, both in writing and via training, to impacted personnel.

Questioned Cost
0
Funds for Better Use
0
Recommendation
8

Develop a process by which USAID can automatically calculate lease balances for leases dedicated to USAID to allow USAID to verify the accuracy of the information provided by the Department of State related to USAID's dedicated leases.

Questioned Cost
0
Funds for Better Use
0
Recommendation
7

Develop and implement a process to capture the information identified based on Recommendation 6 to allow for automation of determining completeness of the Department of State provided lease listing.

Questioned Cost
0
Funds for Better Use
0
Recommendation
6

Determine what information needs to be captured at a transaction level to allow for the identification of the lease and the type of lease (i.e., domestic, international - USAID dedicated, international - housing pool) at the disbursement transaction level.

Questioned Cost
0
Funds for Better Use
0
Recommendation
5

Develop and document a process to ensure its leases are recorded in
accordance with SFFAS 54. At a minimum, this should include the Agency's consideration of materiality and process to assess the completeness, accuracy and reasonableness of all information from the Department of State for which USAID relies on to report in its financial statements and to include an element of management review and approval.

Questioned Cost
0
Funds for Better Use
0
Recommendation
4

Develop and document a process on how the Agency implements and
adopts new accounting standards and guidance going forward, including, but not limited to, the
implementation of the embedded leases portion of SFFAS 54.

Questioned Cost
0
Funds for Better Use
0
Recommendation
3

Review the reconciliation process with National Finance Center Payroll/Personnel System records to determine enhancements for more effectively identifying and correcting inaccurate information.

Questioned Cost
0
Funds for Better Use
0
Recommendation
1

Perform quarterly reviews over a sample of personnel to ensure that personnel files are maintained and updated to correctly reflect personnel actions.

Questioned Cost
0
Funds for Better Use
0
Recommendation
2

Assess reviews performed by the Human Capital and Talent Management/Employee Services and Benefits division to ensure payroll benefit, leave, and deductions calculated and recorded in employee leave and earnings statements are accurate, agree to employee authorized elections, and comply with USAID's Automated Directive System and federal regulations.

Questioned Cost
0
Funds for Better Use
0