Audit of USAID’s Financial Statements for Fiscal Year 2025

Why We Did This Audit

• The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of Williams, Adley & Company-DC LLP (Williams Adley) to conduct the audit of USAID’s financial statements for fiscal year 2025.
• The audit objectives were to: (1) express an opinion on whether the financial statements as of September 30, 2025, were presented fairly, in all material respects; (2) evaluate USAID’s internal controls over financial reporting; and (3) determine whether USAID complied with applicable laws, regulations, contracts, and grant agreements.
• The audit firm is responsible for the enclosed auditor’s report and the conclusions expressed in it. We found no instances in which Williams Adley did not comply, in all material respects, with applicable standards.

What We Found

• Williams Adley concluded that they were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion due to USAID’s failure to maintain adequate processes, controls, and records in support of financial transaction and account balances.
• For fiscal year 2025, the audit firm noted four material weaknesses in internal control over financial reporting, three significant deficiencies in internal control over financial reporting, and two instances of noncompliance with the Federal Manager’s Financial Integrity Act of 1982 (FMFIA) and the Government Management Reform Act of 1994 (GMRA).

What We Recommended 

• To address the material weaknesses, significant deficiencies, and noncompliance identified in the fiscal year 2025 report, we made 20 recommendations to USAID’s Chief Financial Officer.
• We evaluated USAID’s response to the recommendations. Based on our evaluation, we consider recommendations 1 through 20 closed due to the wind-down of the Agency.