OMB Circular A-133 Audit Costs of Catholic Relief Services Report No. 0-000-01-012-F August 31, 2001

OMB Circular A-133 Audit Costs of Catholic Relief Services Report No. 0-000-01-012-F August 31, 2001 Washington, D.C. U.S. Agency for INTERNATIONAL DEVELOPMENT MEMORANDUM FOR: BHR/FFP, William T. Oliver, Director FROM: IG/A/FA, Alvin A. Brown, Director SUBJECT: OMB Circular A-133 Audit Costs of Catholic Relief Services, Report No. 0-000-01-012-F The attached report summarizes our review of the reimbursement of audit costs by USAID to Catholic Relief Services between fiscal years 1996 through 1998, and our determination of the proper allocation of these costs, considering the Federal awards participation of at least two other Federal agencies. Your comments are included in their entirety in Appendix II. The report contains recommendations that the Director, FFP: 1. Resolve $80,499 of questioned OMB Circular A-133 audit costs properly attributable to the Department of State and USDA, that were reimbursed by USAID to CRS for its fiscal year 1996 through 1998 audits. 2. Work with the USAID Office of Procurement to obtain adequate justification from Catholic Relief Services that internal audit costs are properly allocable to the annual Office of Management and Budget Circular A-133 audit effort. If these costs support the internal audit group, which is a function of accounting and internal controls, then the Director, FFP should request that CRS explain why these costs are not included in the indirect cost pool, thus negating the need to issue a ...