USAID's Sheberghan Gas Development Project: Audit of Costs Incurred by the Afghan Ministry of Mines and Petroleum
Abstract
On May 15, 2012, the U.S. Agency for International Development (USAID) and the Afghan government signed Implementation Letter No. 45 to fund the Sheberghan Gas Development Project. According to the letter, USAID would fund up to $30 million for the project, which was designed to increase the use of Afghanistan's natural resources and generate electric energy for economic and social benefits. The Ministry of Mines and Petroleum (MOMP) was responsible for implementing and making a monetary contribution to the project. USAID modified the letter 17 times, which extended the period of performance from May 30, 2015, through August 31, 2016. SIGAR's financial audit, performed by Crowe LLP (Crowe), reviewed $30 million charged to the letter from May 15, 2012, through August 31, 2016. The objectives of the audit were to (1) identify and report on material weaknesses or significant deficiencies in the ministry's internal controls related to the implementation letter; (2) identify and report on instances of material noncompliance with the terms of the implementation letter and applicable laws and regulations, including any potential fraud or abuse; (3) determine and report on whether the ministry has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of the ministry's Special Purpose Financial Statement (SPFS). See Crowe's report for the precise audit objectives. In contracting with an independent audit firm and drawing from the results of the audit, SIGAR is required by auditing standards to review the audit work performed. Accordingly, SIGAR oversaw the audit and reviewed its results. Our review disclosed no instances where Crowe did not comply, in all material respects, with U.S. generally accepted government auditing standards.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2019
- Accession Number
- AD1137728
Entities
People
- John Sopko
Organizations
- Special Inspector General for Afghanistan Reconstruction