USAID OIG Afghanistan and Pakistan Oversight Report, April-June ...
USAID OIG Afghanistan and Pakistan Oversight Report, April-June ... USAID OIG Afghanistan and Pakistan Oversight Report, April-June ...
interest earned on bank balances that had not been refunded to USAID. The audit firm did notidentify any material weakness in internal control, but identified two material instances ofnoncompliance—one associated with the questioned costs, and the other related to therecipient’s not fully complying with the requirement to vet vendors to deter terrorismfinancing. The report made two recommendations.Financial Audit of the Monitoring and Evaluation Project, USAID/Pakistan ContractNo. 391-C-00-10-01138-00, and Assessment and Strengthening Program,USAID/Pakistan Cooperative Agreement No. 391-C-00-10-01203-00, Managed byAssociates in Development (Private) Limited, for the Period January 1, 2010, to June 30,2011 (Report No. G-391-12-009-R, April 17, 2012). The audit covered total revenues of$2,564,077 and costs of $2,560,600. Of this total, OIG questioned $316,937. OIG also identifiedten significant deficiencies in internal control—including the failure to perform conflict-ofinterestchecks and the use of unreasonable rates in compensating personnel—and a numberof material instances of noncompliance. The report made three recommendations to addressthese matters.Financial Audit of the Pakistan Children’s Television Project, USAID/Pakistan AgreementNo. 391-A-00-10-01161-00, Managed by the Rafi Peer Theatre Workshop, for the PeriodMay 7, 2010, to June 30, 2011 (Report No. G-391-12-010-R, April 17, 2012). This auditcovered total revenues of $2,630,336 and costs of $906,523. Auditors concluded that, with theexception of the effects of unsupported costs of $15,629, the fund accountability statementpresented fairly, in all material respects, program revenues and costs incurred under theagreement for the period audited. These unsupported costs pertained to equipment and otherdirect program expenses for which the auditee did not provide bills, invoices, or otheradequate documentation. OIG questioned an additional $595,394 in personnel costs because ofa lack of personnel activity reports and the cumulative effect of associated weaknesses anddeficiencies in internal controls. Auditors also questioned $121,523 in costs claimed as part ofthe cost-sharing arrangement with USAID. Some of these costs were ineligible forreimbursement by USAID, and others lacked any supporting documentation.Auditors also identified numerous internal control weaknesses and several instances ofnoncompliance. OIG concluded that 15 internal control weaknesses found by auditors werematerial. These weaknesses included issues with the recruitment, hiring, and payment ofpersonnel; integrity of financial records; and improper classification of costs. OIG determinedthat 11 instances of noncompliance identified by auditors were also material, including theauditee’s lack of a conflict-of-interest policy, omission of mandatory contract clauses, andfailure to broadcast television productions within prescribed time frames. The report madefive recommendations.Financial Audit of Projects Managed by Lahore University of Management Sciences:Foreign Recipient-Contracted Audit of the Assessment and Strengthening ProgramUSAID OIG Afghanistan and Pakistan Oversight Report 21
Under Cooperative Agreement No. 391-A-00-11-01202-00, and Subrecipient-ContractedAudit of the Merit and Needs-Based Scholarship Program Under Grant AgreementNo. 391-G-00-04-01023-00, for the Year Ended June 30, 2011 (Report No. G-391-12-011-R, April 24, 2012). This audit covered total revenues of $197,619 and costs of $281,774.Auditors concluded that the fund accountability statement presented fairly, in all materialrespects, revenues and costs incurred under the agreements for the period audited. Auditorsdid not identify any significant deficiencies or material weaknesses in internal control, butfound four material instances of noncompliance relating to the hiring of key staff, unsignedagreements, deficiencies in internal procedures, and incomplete monitoring and evaluationplans. The audit made one recommendation to address these issues.Financial Audit of USAID/Pakistan Grant Agreement No. 391-IL-00-08-01111-00Managed by the Health Service Academy, for the Period July 1, 2010, to June 30, 2011(Report No. G-391-12-012-R, May 10, 2012). The audit covered total revenues of $569,115and costs of $565,021 associated with a USAID-funded project to develop and strengthenPakistani institutional capacity in public health training and research. Auditors concluded that,except for the effects of $4,989 in unsupported costs, the fund accountability statementpresented fairly, in all material respects, program revenues and costs incurred under thecooperative agreement for the period audited. Some procurement costs were questionedbecause required documentation supporting the procurement decisions was not available. Theaudit also found two material weaknesses in internal control associated with the questionedcosts. The audit made three recommendations.Financial Audit of the Gender Equity Program, USAID/Pakistan Agreement No. 391-A-00-10-01162-00, Managed by the Aurat Publication and Information Service Foundation, forthe Period August 15, 2010, to June 30, 2011 (Report No. G-391-12-013-R, June 12,2012). The audit covered total revenues of $1,044,234 and costs of $1,044,234 and concludedthat the fund accountability statement presented fairly, in all material respects, programrevenues and costs incurred under the agreement for the period audited. However, auditorsidentified a material weakness in internal control related to the failure to implement aninternal audit plan, and found a significant deficiency related to the implementation of theproject monitoring system. The report made one recommendation to address these issues.Quality Control Review of the Audit Report and Audit Documentation for the FinancialAudit Conducted by Avais Hyder Liaqut Nauman of the Anti-Corruption Program inPakistan, USAID/Pakistan Cooperative Agreement No. 391-A-00-09-01117-00, and theAnti-Fraud Hotline Program, USAID/Pakistan Cooperative Agreement No. 391-A-00-10-01194-00, Managed by Transparency International–Pakistan, for the Year EndedJune 30, 2011 (Report No. G-391-12-002-Q, April 3, 2012). USAID OIG auditors examinedaudit documentation to determine whether the audit firm performed the audit in accordancewith Government Auditing Standards issued by the Comptroller General of the United States andOIG Guidelines for Financial Audits Contracted by Foreign Recipients. The review revealed22 USAID OIG Afghanistan and Pakistan Oversight Report
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Under Cooperative Agreement No. 391-A-00-11-01202-00, <strong>and</strong> Subrecipient-ContractedAudit of the Merit <strong>and</strong> Needs-Based Scholarship Program Under Grant AgreementNo. 391-G-00-04-01023-00, for the Year Ended <strong>June</strong> 30, 2011 (<strong>Report</strong> No. G-391-12-011-R, <strong>April</strong> 24, 2012). This audit covered total revenues of $197,619 <strong>and</strong> costs of $281,774.Auditors concluded that the fund accountability statement presented fairly, in all materialrespects, revenues <strong>and</strong> costs incurred under the agreements for the period audited. Auditorsdid not identify any significant deficiencies or material weaknesses in internal control, butfound four material instances of noncompliance relating to the hiring of key staff, unsignedagreements, deficiencies in internal procedures, <strong>and</strong> incomplete monitoring <strong>and</strong> evaluationplans. The audit made one recommendation to address these issues.Financial Audit of <strong>USAID</strong>/<strong>Pakistan</strong> Grant Agreement No. 391-IL-00-08-01111-00Managed by the Health Service Academy, for the Period July 1, 2010, to <strong>June</strong> 30, 2011(<strong>Report</strong> No. G-391-12-012-R, May 10, 2012). The audit covered total revenues of $569,115<strong>and</strong> costs of $565,021 associated with a <strong>USAID</strong>-funded project to develop <strong>and</strong> strengthen<strong>Pakistan</strong>i institutional capacity in public health training <strong>and</strong> research. Auditors concluded that,except for the effects of $4,989 in unsupported costs, the fund accountability statementpresented fairly, in all material respects, program revenues <strong>and</strong> costs incurred under thecooperative agreement for the period audited. Some procurement costs were questionedbecause required documentation supporting the procurement decisions was not available. Theaudit also found two material weaknesses in internal control associated with the questionedcosts. The audit made three recommendations.Financial Audit of the Gender Equity Program, <strong>USAID</strong>/<strong>Pakistan</strong> Agreement No. 391-A-00-10-01162-00, Managed by the Aurat Publication <strong>and</strong> Information Service Foundation, forthe Period August 15, 2010, to <strong>June</strong> 30, 2011 (<strong>Report</strong> No. G-391-12-013-R, <strong>June</strong> 12,2012). The audit covered total revenues of $1,044,234 <strong>and</strong> costs of $1,044,234 <strong>and</strong> concludedthat the fund accountability statement presented fairly, in all material respects, programrevenues <strong>and</strong> costs incurred under the agreement for the period audited. However, auditorsidentified a material weakness in internal control related to the failure to implement aninternal audit plan, <strong>and</strong> found a significant deficiency related to the implementation of theproject monitoring system. The report made one recommendation to address these issues.Quality Control Review of the Audit <strong>Report</strong> <strong>and</strong> Audit Documentation for the FinancialAudit Conducted by Avais Hyder Liaqut Nauman of the Anti-Corruption Program in<strong>Pakistan</strong>, <strong>USAID</strong>/<strong>Pakistan</strong> Cooperative Agreement No. 391-A-00-09-01117-00, <strong>and</strong> theAnti-Fraud Hotline Program, <strong>USAID</strong>/<strong>Pakistan</strong> Cooperative Agreement No. 391-A-00-10-01194-00, Managed by Transparency International–<strong>Pakistan</strong>, for the Year Ended<strong>June</strong> 30, 2011 (<strong>Report</strong> No. G-391-12-002-Q, <strong>April</strong> 3, 2012). <strong>USAID</strong> <strong>OIG</strong> auditors examinedaudit documentation to determine whether the audit firm performed the audit in accordancewith Government Auditing St<strong>and</strong>ards issued by the Comptroller General of the United States <strong>and</strong><strong>OIG</strong> Guidelines for Financial Audits Contracted by Foreign Recipients. The review revealed22 <strong>USAID</strong> <strong>OIG</strong> <strong>Afghanistan</strong> <strong>and</strong> <strong>Pakistan</strong> <strong>Oversight</strong> <strong>Report</strong>
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