Recommendation Dashboard

We recommend that USAID/Liberia verify that Chemonics International corrects the five internal control weaknesses in findings 3.1 to 3.3 and 4.1 to 4.2 detailed on pages 42 to 56 of the agreed-upon procedures review.

We recommend that USAID/Liberia verify that Chemonics International corrects the seven instances of noncompliance in findings 5.3.1 to 5.3.4 and 6.3.1 to 6.3.3 detailed on pages 63 to 72 and 76 to 78 of the agreed-upon procedures review.

Determine the allowability of $882,367 in unsupported questioned costs on pages 20 and 21 of the audit report and recover any amount that is unallowable.

Verify that FUNADEH corrects the two instances of material noncompliance detailed on page 45 of the audit report.

Verify that the Indus Basin SME Investments Limited corrects the material instance of noncompliance detailed in Finding 1 on page 18 of the report.

We recommend that USAID/Kenya and East Africa verify that Centre for Health Solutions-Kenya corrects the one instance of material noncompliance detailed on page 33 of the audit report.

USAID/Southern Africa determine the allowability of $87,339 in questioned costs ($2,030 ineligible, $85,309 unsupported) on pages 23 and 44 of the audit report and recover any amount that is unallowable.

We recommend that USAID's Office of Acquisition and Assistance, Cost, Audit and Support Division verify that Oxfam GB corrects the instance of material noncompliance detailed on pages III-1, and III-2 of the audit report.

Determine the allowability of $573,279 in unsupported questioned costs on pages 21 and 22 of the audit report and recover any amount that is unallowable.

Verify that FUNADEH corrects the two instances of material noncompliance detailed on page 48 of the audit report.

USAID's Chief Financial Officer Implement plans to create a separate role description document and access forms for back end Financial System Staff Roles and document any potential segregation of duties conflicts, specially conflicts with financial processing roles.

USAID's Chief Financial Officer Implement a process to review System user access on an annual basis via the System Bureau Transaction Coordinator Roles and User ID Report and supporting evidence/acknowledgements to ensure that reviews occurred. Such
evidence/acknowledgements should be retained for an appropriate period.

USAID's Chief Financial Officer Ensure that annual System user access recertification includes all users and ensure that any access permission not explicitly requested and approved during the recertification are disabled/removed.

USAID's Chief Financial Officer Modify the Funds Control Accountant and Financial Management Analyst roles to mitigate the segregation of duties conflict and update the roles description. If the roles cannot be modified, then compensating controls should be implemented to mitigate the risk of users having these controls (i.e. monitoring and review, etc.).

USAID's Chief Financial Officer Modify the Procurement Order Requestor and Procurement Obligation Processor roles to mitigate the segregation of duties conflict and update the roles descriptions. If the roles cannot be modified, then compensating controls should be implemented to mitigate the risk of users having these controls (i.e. monitoring and review, etc.).

USAID's Chief Financial Officer Implement a written process to obtain system owner approval of shared database accounts. Documented approvals for shared database accounts in the system security plan (SSP). Controls for monitoring the activities and use of the shared accounts should also be documented in the SSP.

MCC's Chief Financial Officer Revise MCC's "Grant Accrual Estimation: Millennium Challenge Account Guidance" to state that when a MCA identifies an advance, the MCA will exclude the advance amount from the grant accrual amount to ensure that the advance is not included in the grant accrual estimate reported to MCC.

MCC's Chief Financial Officer Request the MCAs to establish a documented control mechanism to verify that the grant accrual estimates reported to MCC agrees with the support document used by the MCAs to complete the grant accrual estimates data call template.

MCC's Chief Financial Officer Provide additional training to the MCAs to ensure the MCAs have a clear understanding of the grant accrual estimation and validation requirements.

MCC's Chief Financial Officer Require the MCAs to document improved budgeting process to ensure future payment needs are properly considered at the detail compact program/activity level as part of its quarterly budgeting process.

MCC's Chief Financial Officer Require the MCA Director of Administration and Finance and relevant Program Directors to (1) determine the root cause for delayed payments and report that information to MCC, and (2) timely provide all relevant and applicable payment support and approval documentation (including but not limited to purchase order, contract, acceptance note, delivery note, delivery confirmation receipt, etc.) to the MCA Fiscal Agent for required payment verification procedures and timely process the invoice for payment.

MCC's Chief Financial Officer Provide an additional reminder to the MCAs regarding the payment requirements in the Fiscal Accountability Plan and instruct them to monitor their compliance.

MCC's Chief Financial Officer Revise the "Accountable Entities Guidelines for Contracted Financial Audits" to address the timing of the audit review process to ensure that independent public accountant firms are able to meet the 90-day delivery deadline for issuing the audit report.

MCC's Chief Financial Officer Revise the "Accountable Entities Guidelines for Contracted Financial Audits" to establish a requirement after the initial compact or threshold audit to determine if the 90-day audit report deadline is still appropriate for the next audit given the circumstances (i.e., prior audit delays). If not, then issue an Implementation Letter to establish the new audit report deadline.

MCC's Chief Financial Officer Revise the "Audit, Risk, and Control (ARC) Branch Process for Screening Potential Independent Public Accountant Firms" to clarify when ARC will begin and complete the screening process for a new compact or threshold program.

Verify that Philippine Business for Education, Inc. corrects the one instance of material noncompliance detailed on pages 17-19 of the audit report.