In June 2009, a former USAID contracting officer pleaded guilty to submitting a false claim to USAID and seeking more than $14,000 in separate maintenance allowance benefits. USAID may grant this nontaxable cost-of-living allowance to “assist an employee to meet the additional expenses of maintaining members of family elsewhere than at the employee’s foreign post of assignment.”

Although USAID has published guidance on the separate maintenance allowance benefit in its Automated Directives System 477, “Allowances and Differentials,” this general guidance contains little information concerning USAID procedures and serves more as a tool for referring employees to other substantive guidance, such as U.S. Department of State regulations and manuals.

This audit will determine whether USAID/Afghanistan has adopted appropriate internal controls to prevent improper use of the separate maintenance allowance benefit.

Source: Office of Inspector General - ANNUAL PLAN - FISCAL YEAR 2011