USAID OIG Afghanistan and Pakistan Oversight Report, April-June ...

Appendix 4 – Audited Amounts, Questioned Costs, andFunds Recommended to Be Put to Better UseFinancial audits examine designated funds over a given period of time. The dollar value of thefunds audited, regardless of whether they are defined in terms of costs, expenditures, or revenues,is the amount audited. 6 As shown in the following table, OIG has presided over financial audits ofmore than $2.0 billion in USAID funds since FY 2003.Financial audits, like performance audits and reviews, sometimes identify questioned costs andrecommend that funds to be put to better use. Questioned costs are costs determined not to beallowable, allocable, or reasonable, or costs for which auditors could not make a determination the ofallowability, allocability, or reasonableness because documentation or other evidence to support thecosts was not available for auditors’ review. USAID contracting or agreement officers make finaldeterminations on identified questioned costs and seek reimbursement for any questioned costs thatthey sustain. Funds recommended to be put to better use are funds that could be used moreefficiently if managers take action to implement OIG recommendations. When Agency managersagree to implement related OIG recommendations, the Agency is regarded as having agreed that thefunds could be put to better use.The following table provides information on dollars audited during the course of financial audits.It also lists all financial audits, performance audits, and reviews that identified questioned costs orfunds recommended to be put to better use since FY 2003. This information is presented alongsideAgency determinations regarding these funds—i.e., determinations to sustain questioned costs oragree that funds could be put to better use. The corresponding audit reports are listed by countryand presented in reverse chronological order.DateReport Title and NumberAmountAudited ($)QuestionedCostsAmountSustainedFunds to Be Putto Better UseAmountAgreed ToAfghanistan06/25/12Audit of USAID/Afghanistan's Internal Controls in the Administration of the Involuntary SeparateMaintenance Allowance (F-306-12-003-P)N/A 3,833 3,833 – –6 Because performance audits and reviews do not apply the same procedures as financial audits, we do notcompute an amount audited for that work.USAID OIG Afghanistan and Pakistan Oversight Report 39