Audit of the Accuracy of USAID Mozambiques Recipient AuditUniverse, Report Number 4-656-01-002-P

MemorandumRegional Inspector General Pretoria DATE: January 8, 2001 TO: Regional Director, USAID/Mozambique, Cynthia Rozell FROM: Regional Inspector General/Pretoria, Joseph Farinella SUBJECT: Audit of the Accuracy of USAID/Mozambique’s Recipient Audit Universe, Report Number 4-656-01-002-P This is the final report on the subject audit. We received your comments to our draft report and included those comments as Appendix II to this report. This report has no recommendations. I appreciate the cooperation and courtesies extended to my staff during the audit. Background Financial audits of contracts and grants are a primary basis for effective management and control of USAID’s program expenditures. These audits are designed to provide USAID management reasonable assurance that transactions are properly recorded and accounted for; laws and regulations, and provisions of contract or grant agreements are complied with; and USAID-financed funds, property and other assets are safeguarded against unauthorized use or disposition. In response to Congressional concerns, USAID has taken an active role in recent years, using audits as a management tool, to improve financial accountability of its programs. During 1991 and 1992, USAID revised its standard provisions for its contracts and grants, requiring annual audits of non-U.S. organizations disbursing USAID funds of $25,000 or more. The threshold was increased to $100,000 in May 1994, and to $300,000 in ...