HomeResourcesAudit Database Project Compliance RecommendationsFinancial Management and BudgetsFinancial Audits of Subrecipients Were Not Completed - ADS 591.3.2.1

Financial Audits of Subrecipients Were Not Completed - ADS 591.3.2.1

According to USAID’s Automated Directives System (ADS) 591.3.2.1, 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).

General Recommendations

  • 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.

Tags: Financial Management and Budgets

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