Audit of USAID’s Financial Statements for Fiscal Year 2025

Identify key balances, such as high-risk balances or high dollar value items and ensure that supporting schedules in Phoenix agree with stated balances. Where balances and supporting schedules don't agree, research and resolve differences.

Implement monitoring mechanisms to ensure adherence to federal financial management requirements and timely corrective action for deficiencies.

Implement alternative solutions to provide internal control support, including FMFIA/OMB Circular A-123 testing, documentation updates, and corrective action tracking, to compensate for limited staff capacity and ensure continuity during the wind-down period.

Develop and implement a streamlined internal control plan focused on the drawdown of operations, prioritizing high-risk areas such as disbursements, grants, and closeout procedures to maintain compliance and financial integrity

Strengthen communication and accountability by issuing clear written guidance on roles and responsibilities for remaining personnel and establishing a simple escalation process for unresolved control issues.

Establish and implement procedures to consistently document and retain the design, implementation, and operating effectiveness of general information technology controls supporting Phoenix.

Develop a plan for completing the fiscal year 2026 internal controls assessment, Enterprise Risk Management process, and resulting assurance statements, including the timing and who is responsible for completing the assessment.

Perform the fiscal year 2026 internal controls assessment and prepare the resulting assurance statements in accordance with Federal requirements and within the required due date.

Establish and implement a financial reporting process to ensure timely preparation of an OMB Circular A-136-compliant AFR that is appropriate for its current size, staffing levels, and mission.

Address personnel gaps in its financial reporting function

Develop performance goals that align with its current mission and measure performance against those goals.

For material transactions that sample support cannot be located, obtain alternative evidence such as confirmations from vendors, grantees, or banks

Develop procedures to analyze systems, controls, and legal compliance to the extent necessary to prepare management's assurances related to FMFIA.

Develop and document retention controls that take into consideration USAID's current structure

Develop a document that identifies critical processes, assigns responsibilities, and references existing policies where applicable. The document should also document what interim procedures are in place, and any compensating controls, focusing on high-risk areas.

Apply scaled internal control principles from OMB Circular A-123 and GAO Green Book, documenting exceptions and compensating controls where segregation of duties is not feasible.

Create an Agency Closeout Checklist, or similar document, covering reconciliations, financial statement certification, record transfer, and communication of residual risks.

Communicate simplified procedures to remaining staff and confirm understanding through briefings or written guidance.

Establish and implement a financial reporting process to ensure timely preparation of quarterly and annual financial statements in compliance with OMB Circular A136 that is appropriate for its current size, staffing levels, and mission

Address personnel gaps in its financial reporting function especially as it related to preparation of an Annual Financial Report (AFR) or a Performance and Accountability Report as required by OMB implementation guidance.