Audit of USADF’s Financial Statements for Fiscal Year 2025

Audit Report
Report Number
0-ADF-26-003-C

Why We Did This Audit

The Office of Inspector General (OIG) conducted an audit report on the U.S. African Development Foundation’s (USADF) financial statements for fiscal year (FY) 2025. The Office of Inspector General performed the audit in accordance with generally accepted government auditing standards and Office of Management and Budget Bulletin No. 24-02, Audit Requirements for Federal Financial Statements.

Our 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 USADF’s internal controls over financial reporting; and (3) determine whether USADF complied with applicable laws, regulations, contracts, and grant agreements.

What We Found

We were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion because USADF’s staff were placed on administrative leave without access to key financial systems.

We identified three material weaknesses in internal controls over financial reporting. In addition, we noted four instances of reportable noncompliance with applicable laws, regulations, contracts, and grant agreements.

Why It Matters

The report contains 13 recommendations to improve USADF’s management processes for FY 2025. The report also contains three open recommendations from our FY 2024 audit.

Presenting financial statements fairly in all material respects, having internal controls over financial reporting, and complying with applicable laws, regulations, contracts, and grant agreements are vital steps in ensuring that USADF spent, kept track, and reported taxpayer dollars as Congress intended.

Audit of USADF's Financial Statements for FY 2025.pdf876.81 KB

Recommendations

Recommendation
1

Identify key balances, such as high-risk balances or high dollar value items and ensure that supporting schedules agree with stated balances

Questioned Cost
0
Funds for Better Use
0
Recommendation
10

Develop a plan for completing the FY 2026 internal controls assessment and resulting assurance statements, including the timing and who is responsible for completing the assessment

Questioned Cost
0
Funds for Better Use
0
Recommendation
11

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

Questioned Cost
0
Funds for Better Use
0
Recommendation
12

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

Questioned Cost
0
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0
Recommendation
13

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

Questioned Cost
0
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0
Recommendation
2

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

Questioned Cost
0
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0
Recommendation
3

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

Questioned Cost
0
Funds for Better Use
0
Recommendation
4

Establish and implement a financial reporting process to ensure timely preparation of quarterly and annual financial statements in compliance with OMB Circular A-136 that is appropriate for its current size, staffing levels, and mission

Questioned Cost
0
Funds for Better Use
0
Recommendation
5

Determine personnel gaps in its financial reporting function and determine whether these roles can be filled by existing USADF personnel

Questioned Cost
0
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0
Recommendation
6

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

Questioned Cost
0
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0
Recommendation
7

Consider implementing alternative solutions, to provide internal control support, including FMFIA/A-123 testing and documentation updates

Questioned Cost
0
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0
Recommendation
8

Develop and implement a streamlined internal control and risk assessment plan focused on the drawdown of operations, prioritizing high-risk areas such as disbursements, funds held outside of treasury (FHOT), grants, and closeout procedures to maintain compliance and financial integrity

Questioned Cost
0
Funds for Better Use
0
Recommendation
9

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

Questioned Cost
0
Funds for Better Use
0