Agency Financial Report - Fiscal Year 2012

About This Report

The Reports Consolidation Act of 2000 authorizes federal agencies to consolidate various reports in order to provide performance, financial, and related information in a more meaningful and useful format. This report, along with the Annual Performance Report, satisfies the reporting requirements of the following legislation:

• Inspector General Act of 1978 [Amended] – requires information on management actions in response to the Office of Inspector General (OIG) audits;
• Federal Managers’ Financial Integrity Act (FMFIA) of 1982 – requires ongoing evaluations of, and reports on, the adequacy of internal accounting systems and administrative controls, not just controls over financial reporting but also controls over program areas;
• Chief Financial Officers (CFO) Act of 1990 – requires better financial accounting and reporting;
• Government Management Reform Act (GMRA) of 1994 – requires annual audited agency-level financial statements as well as an annual audit of government-wide consolidated financial statements;
• Federal Financial Management Improvement Act (FFMIA) of 1996 – requires an assessment of the agency’s financial management systems for adherence to government-wide requirements to ensure accurate, reliable, and timely financial management information;
• American Recovery and Reinvestment Act (Recovery Act) of 2009 – requires reporting on agency allocation of Recovery Act funds to each state through individual programs;
• Government Performance and Results Act (GPRA) Modernization Act (GPRAMA) of 2010 – requires quarterly performance reviews of federal policy and management priorities;
• Improper Payments Elimination and Recovery Act (IPERA) of 2010 – requires agencies to improve agency efforts to reduce and recover improper payments.

• Agency Financial Report (AFR) – provides complete details on relevant financial results;
• Annual Performance Report (APR) – provides complete details on performance results [to be submitted in conjunction with the Congressional Budget Justification in February 2013];
• Joint State and USAID Summary of Performance and Financial Information Report – summarizes the AFR and APR in a brief, user-friendly format [available February 2013].

All three reports will be available at http://www.usaid.gov/results-and-data/progress-data.

There are three major sections to this report. The first section, Management’s Discussion and Analysis (MD&A), provides an overview of financial results, a high-level discussion of program performance, management assurances on internal control and financial management systems compliance; and other management information, initiatives, and issues. The second section, Financial Section, provides the financial details, including the independent auditor’s report, audited financial statements, and a message from the CFO. The third section, Other Accompanying Information, includes the schedule of spending; a statement prepared by the OIG summarizing what the OIG considers to be the most serious management and performance challenges facing the Agency; tables summarizing the financial statement audit and management assurances; and a detailed report on Agency efforts to reduce and recover improper payments.