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 2006, USAID received 464 audit reports; 404 of these reports covered financial audits of contractors and recipients and 60 covered Agency programs or operations.
During FY 2006, the Agency closed 603 audit recommendations. Of these, 218 were from audits performed by OIG staff and 385 were from financial audits of contractors or grant recipients. USAID collected $7.1 million in disallowed costs, and $7.4 million was put to better use during the fiscal year.
At the end of FY 2006, there were 429 open audit recommendations, 11 less than at the end of FY 2005. Of the 429 audit recommendations open at the end of FY 2006, only 22 or 5% have been open for more than one year.
Of the 22 recommendations open for more than one year, USAID must collect funds from contractors or recipients to complete actions for three recommendations. Contacting Officer final determinations for ten recommendations are currently in litigation or have been appealed before the Armed Forces Court of Appeals or the USAID Procurement Executive. Four recommendations require recipients to make extensive corrections to accounting systems or internal controls. The remaining five recommendations are related to Agency programs and operations, including improving information systems and development activities; complying with federal regulations for awarding contracts in Iraq; and reconciling financial management information.
Management Action on Recommendation that Funds be Put to Better Use
| |
Recommendations |
Dollar Value ($000) |
| Beginning balance 10/1/05 |
6 |
$214,818 |
| Management decisions during the fiscal year |
12 |
16,315 |
| Final action |
8 |
7,416 |
| Recommendations implemented |
8 |
7,416 |
| Recommendations not implemented |
0 |
– |
| Ending Balance 9/30/06 |
10 |
$223,717 |
Management Action on Audits with Disallowed Costs
| |
Recommendations |
Dollar Value ($000) |
| Beginning balance 10/1/05 |
146 |
$24,908 |
| Management decisions during the fiscal year |
181 |
25,589 |
| Final action |
196 |
7,111 |
| Collections/Offsets/Other |
195 |
7,097 |
| Write-offs |
1 |
14 |
| Ending Balance 9/30/06 |
131 |
$43,386 |
Back to Top ^ | < Previous Page | Next Page >
|
