Home » Management Discussion and Analysis » Performance Section » Financial Section » Appendices »
	Message from the CFO Introduction History Financial Statements Balance Sheet Net Costs Changes in Net Position Budgetary Resources Statement of Financing Footnotes Required Supplementary Information Other Accompanying Information Independent Auditor's Report Other Reporting Requirements
	Advanced search... Search USAID Personnel... Search USAID Documents...

Audit Management

The Office of Inspector General (OIG) uses the audit process to help USAID managers improve the efficiency and effectiveness of operations and programs. USAID management and OIG staff work in partnership to ensure timely and appropriate responses to audit recommendations.

The OIG contracts with the Defense Contract Audit Agency (DCAA) to audit U.S.-based contractors and relies on nonfederal auditors to audit U.S.-based grant recipients. Overseas, local auditing firms or the supreme audit institutions (SAI) of host countries audit foreign-based organizations. OIG staff conduct audits of USAID programs and operations, including the Agency's financial statements, related systems and procedures, and Agency performance in implementing programs, activities, or functions.

During FY 2005, USAID received 535 audit reports; 477 of these reports covered financial audits of contractors and recipients and 58 covered Agency programs or operations.

During FY 2005, the Agency closed 535 audit recommendations. Of these, 153 were from audits performed by OIG staff and 382 were from financial audits of contractors or grant recipients. USAID took final action on recommendations with $4.4 million in disallowed costs, and $429 thousand was put to better use during the fiscal year.

At the end of FY 2005, there were 440 open audit recommendations, 134 more than at the end of FY 2004 (306). Of the 440 audit recommendations open at the end of FY 2005, only seven or 1.6% had been open for more than one year.

As regards the seven recommendations open for more than one year at the end of FY 2005, USAID must collect funds from contractors or recipients to complete actions on two of these recommendations. The remaining five require improvements in Agency programs and operations. These are tied to USAID's staff training and development activities; compliance with federal regulations in awarding the IRAQ Phase I contracts; and reconciling financial management information.

Back to Top ^ | < Previous Page | Next Page >