Audit of USAID Russias Financial Operations and Management Controls Audit Report No. B-118-01-001

Audit of USAID/Russia’s Financial Operations and Management Controls Audit Report No. B-118-01-001-F November 30, 2000 Budapest, Hungary U.S. Agency for INTERNATIONAL DEVELOPMENT RIG/Budapest November 30, 2000 MEMORANDUM FOR: USAID/Russia Mission Director, Carol A. Peasley FROM: Director of Audit Operations/Budapest, Nathan S. Lokos SUBJECT: Audit of USAID/Russia Financial Operations and Management Controls (Report No. B-118-01-001-F) This is our final report on the subject audit. In preparing the report, we considered your comments on the draft report and included them in their entirety in Appendix II. The report contains four recommendations and we consider management decisions to have been reached on all four recommendations. Furthermore, we consider Recommendation Nos. 3 and 4 closed upon issuance of the report. We appreciate the cooperation and assistance extended to the auditors on this assignment. Summary of USAID/Russia needs to establish and improve internal controls over its Results quarterly accrual process to provide a more accurate estimation of the Mission’s accrued expenditures. In particular, very old unliquidated commitments should be researched and cleared out of the Mission’s financial records rather than continuously accrued each quarter. USAID/Russia also needs to establish written policies and procedures for its project cash advance process to ensure consistent application and documentation of advance activities and ...