Independent Auditor's Report – Support and Quality of Performance Data Used in the Management's Discussion and Analysis Need Improvement
| Summary: OIG obtained an understanding of the significant internal controls of the FY 2006 performance measures reported in the MD&A section of USAID’s Performance and Accountability Report and determined whether they were operational, as required by OMB Bulletin 06-03. Our procedures were not designed to provide assurance on internal controls over reported performance measures and, accordingly, we do not provide an opinion on such controls. We reviewed the FY 2006 MD&A, and selected data from the addendum to the FY 2005 Performance and Accountability Report, which was issued in April 2006, and which provided final performance data for FY 2005. |
Our review found that while USAID took actions to improve its controls over data management, the Bureau needs to improve these controls to ensure that data submitted to the missions’ Annual Report system are accurate and adequately supported, and that required data quality assessments are performed.
In 7 missions reviewed, officials did not ensure the accuracy of reported data, as required by USAID’s Automated Directives System 596. Specifically, for 19 of the 42 performance indicators we reviewed at the 7 missions, data from source documents did not match the data presented in the addendum to the FY 2005 Performance and Accountability Report. This occurred because, according to mission officials, managers did not review data before input into the Annual Report system to ensure accuracy; staff made data entry errors; and missions collected information by telephone or email without subsequently reviewing supporting documentation.
In addition, at 4 of 7 missions, data quality assessments were not conducted in accordance with Automated Directives System 203.3.8. These assessments should be conducted at least every three years to determine the strengths and weaknesses of the data in general, and whether the data can be trusted. Mission officials said, among other causes, that these assessments were not conducted because they had overlooked the requirement, did not have sufficient time to conduct assessments, or did not have a Performance Management Plan prepared.
Based on our limited review, USAID cannot be reasonably assured that all performance data reported in the MD&A section in USAID’s Performance and Accountability Report are accurate. Without reliable information, stakeholders will not be able to make informed decisions regarding USAID’s programs and budget. At present, USAID does not require its bureaus and missions to certify whether Annual Report data has been reviewed for accuracy and that data quality assessments have been performed at least every three years.
Recommendation No. 5: We recommend that USAID require all bureaus and missions to certify that performance data submitted for publication are accurate, adequately supported, and that the required data quality assessments have been performed.
This report is intended solely for the information and use of the management of USAID, OMB and Congress, and is not intended to be and should not be used by anyone other than those specified parties. This report is a matter of public record, however, and its distribution is not limited.
USAID, Office of Inspector General
November 15, 2006
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