Audit of USADF's Financial Statements for Fiscal Years 2024 and 2023

Audit Report
Report Number
0-ADF-25-003-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 USADF’s financial statements for fiscal years ending 2024 and 2023. 
  • The audit objectives were to: (1) express an opinion on whether the financial statements as of September 30, 2024, and September 30, 2023, were presented fairly, in all material respects; (2) evaluate USADF’s internal control over financial reporting, and (3) determine whether USADF complied with applicable laws, regulations, contracts, and grant agreements.

What We Found

  • Opinion: Williams Adley concluded that USADF’s financial statements as of September 30, 2024, and September 30, 2023, 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 with provisions of applicable laws, regulations, contracts, and grant agreements.
  • The audit firm found no material weaknesses in internal control over financial reporting but found deficiencies in the internal controls over the Funds Held Outside of Treasury process. We collectively identified these deficiencies as a reportable significant deficiency.

Why It Matters

  • These audits help meet the Act’s intent of providing a more effective, efficient, and responsive government.
  • We are making six recommendations to address the internal control deficiencies identified in the fiscal year 2024 report.  USADF agreed with all six recommendations.
0-ADF-25-003-C.pdf1.12 MB

Recommendations

Recommendation
3

We recommend that USADF Department of Financial Management and Finance and Chief Financial Officer: Reassess the Funds Held Outside of Treasury reconciliation process for ways to improve the process to maximize the use of electronic records and bank access.

Questioned Cost
0
Funds for Better Use
0
Recommendation
5

We recommend that USADF Department of Financial Management and Finance and Chief Financial Officer: Reassess the Funds Held Outside of Treasury reconciliation process for ways to improve the process to address inactive accounts and close accounts as necessary.

Questioned Cost
0
Funds for Better Use
0
Recommendation
6

We recommend that USADF Department of Financial Management and Finance and Chief Financial Officer: Revisit the current policy and procedures related to the recording of financial transactions and reconciliation of bank accounts for the Funds Held Outside of Treasury accounts and make the appropriate changes to ensure that the trial balance and financial statements reflect the true course of events that occurred in their appropriate period.

Questioned Cost
0
Funds for Better Use
0
Recommendation
4

We recommend that USADF Department of Financial Management and Finance and Chief Financial Officer: Reassess the Funds Held Outside of Treasury reconciliation process for ways to improve the process to implement timelines that most align with the financial statement requirements and an adequate review of recorded balances versus what was sent to be recorded.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
1

We recommend that USADF Department of Financial Management and Finance and Chief Financial Officer: Reassess the Funds Held Outside of Treasury reconciliation process for ways to improve the timeliness of the monthly reconciliations.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
2

We recommend that USADF Department of Financial Management and Finance and Chief Financial Officer: Reassess the Funds Held Outside of Treasury reconciliation process for ways to improve the process to revalue account balances monthly with or without bank statements and record the adjustments as needed.

Questioned Cost
0
Funds for Better Use
0
Close Date