According to USAID’s Automated Directives System (ADS) 518.104.22.168, foreign nonprofit organizations that expend $300,000 or more during their fiscal year in USAID awards must have an annual audit conducted of those funds in accordance with the Guidelines for Financial Audits Contracted by Foreign Recipients, published by the Office of Inspector General.
Prime recipients are responsible for monitoring their subrecipients and ensuring that non-U.S. subrecipients are audited in accordance with the guidelines. (U.S. nonprofits all fall under the Single Audit Act and receive audit coverage under a different mechanism).
- Prepare and implement a plan of action for completing all required financial audits for non-U.S. nonprofit organizations that received funding under the Program.
SOURCE: AUDIT REPORT NO. 5-391-10-012-P AUGUST 31, 2010
The recommendations are derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations. Please see the disclaimer of this site before using recommendations.
- Obligated Program Funds - ADS 202.3 - ADS 602.3
- Program Funding Plans - ADS 202.3.7 - FAR 16.306 (d)(1)
- Ensure That Costs Are Appropriate - ADS 596.3.1 - 634.3.2
- Mission Could Not Determine Whether Food Storage and Distribution Costs Were Reasonable - ADS 596.3.1 - Food for Peace Act - Office of Management and Budget Circular A-122, “Cost Principles for Non-Profit Organizations,” Attachment A
- Unreasonable Costs Charged to USAID - Office of Management and Budget Circular A-122
- Contract Budgeting Did Not Align With Program Areas - ADS 200.3.2
- Project Funding Was Not Authorized - Title 22 Code of Federal Regulations (CFR) Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, section 226.25, Revision of Budget and Program Plans - (ADS) 303.3.18(a) - ADS 601.3.1