Office of Inspector General US Agency for International Development - PDF document

1 Office of Inspector General, U.S. Agency
Office of Inspector General, U.S. Agency for International DevelopmentPretoria, South Africahttps://oig.usaid.gov MEMORANDUMDATE:March 13, 2019 We reviewed the audit firm’s report for conformity with professional reporting standards. Our desk ��2 &#x/Att;¬he; [/;ott;&#xom ];&#x/BBo;&#xx [8;.96;&#x 36.;唓&#x 87.;犉&#x 71.;昳&#x ]/S;&#xubty;&#xpe /;oot;r /;&#xType;&#x /Pa;&#xgina;&#xtion;&#x 000;&#x/Att;¬he; [/;ott;&#xom ];&#x/BBo;&#xx [8;.96;&#x 36.;唓&#x 87.;犉&#x 71.;昳&#x ]/S;&#xubty;&#xpe /;oot;r /;&#xType;&#x /Pa;&#xgina;&#xtion;&#x 000; &#x/MCI; 0 ;&#x/MCI; 0 ;To answer the audit objectives, PwC(1) audited the fund accountability statement for the award including the budgeted amounts by category and major items and the revenues received from USAID for the period covered by the audit and the costs reported by WEWEas incurred from January 1 to December 31, 2017; (2) evaluated the control environment, the adequacy of the accounting systems, and control procedures that pertain to WEWE's ability to report financial data consistent with the assertions embodied in each account of the fund accountability statement; (3) identified the award terms and pertinent laws and regulations and determined which of those, if not observed, could have a direct and material effect on the fund accountability statement; (4) determined that the review of the indirect costrate was not applicable

2 ; and (5) reviewed the implementation st
; and (5) reviewed the implementation status of the prior period recommendations. WEWEreported expenditures o2,025,000in SAID funds during the audited period.The audit firm concluded the fund accountability statement presented fairly, in all material respects, program revenues and costs incurred under the award for the period auditedThe audit firm identified57,603in eligiblequestioned costsThe audit firm also reported fivesignificant deficiencies in internalcontroland threeinstances ofmaterial noncompliance. The internal control findingon page 19details several inadequacies in the procurementsystemhowever, we deem conditions iii and iv, pertaining to noncompliance with Mandatory Standard Provisions12 and 14, to an instance of material noncompliance.Conditions i and ii on page 19 remain classified as significant deficiencies.Moreoverone of the instances of material noncompliancerelating to late remittance of statutory deductionswas repeated from the prior periodFinal action was taken on this recommendation subsequent to the current period; accordingly, we are not including it in Recommendation 3. Consequently, we will make recommendations on the questioned costs, five significant deficiencies in internal control, and threeinstances of material noncompliance.During our desk review,e noted several minor issues which the audit firm will need to address in future audit reports. We presented these issues in a memoto e controllerdated March 13, 2019To address the issues identified in the report, we recomm

3 end thatUSAID/NigeriaRecommendation 1. D
end thatUSAID/NigeriaRecommendation 1. Determine the allowability of $57,603in ineligible questioned costson pages 23 to 25of the audit reportand recoverany amount that is unallowable.Recommendation 2.Verify thatWidows and Orphans Empowerment Organizationcorrectsthe fivesignificant deficiencies in internal control detailed on pag15 to 21of the audit reportRecommendation Verify that Widowsand Orphans Empowerment Organizationcorrects the three stances of material noncompliance detailed on pages 19 to 20, 23 to 25, and 28of the audit report. ��3 &#x/Att;¬he; [/;ott;&#xom ];&#x/BBo;&#xx [8;.96;&#x 36.;唓&#x 87.;犉&#x 71.;昳&#x ]/S;&#xubty;&#xpe /;oot;r /;&#xType;&#x /Pa;&#xgina;&#xtion;&#x 000;&#x/Att;¬he; [/;ott;&#xom ];&#x/BBo;&#xx [8;.96;&#x 36.;唓&#x 87.;犉&#x 71.;昳&#x ]/S;&#xubty;&#xpe /;oot;r /;&#xType;&#x /Pa;&#xgina;&#xtion;&#x 000; &#x/MCI; 0 ;&#x/MCI; 0 ;We ask that you provide your written notification of actions planned or taken to reach management decisionWe appreciate the assistance extendedduring the engagement.OIG does not routinely distribute independent public accounting reports beyond the immediate addressees because a high percentage of these reports contain information restricted from release under the Trade Secrets Act, 18 U.S.C. 1905 and Freedom of Information Act Exemption Four, 5 U.S.C. 552(b)(4)(“commercial or financial information obtained from a person that is privileged or confidential”