USAID's Afghan Trade and Revenue Project: Audit of Costs Incurred by Chemonics InternationaI Inc.

Abstract

On November 7, 2013. the U.S. Agency for International Development (USAID) awarded a 4-year, $77.8 million contract to Chemonics International Inc. (Chemonics) to fund the Afghan Trade and Revenue (ATAR) project. The purpose of the project was to provide technical support and assistance aimed at strengthening Afghanistan's business climate to enable private investment, enhanced trade. job creation. and fiscal sustainability. USAID modified the contract 12 times, extending the period of performance to February 28, 2018, while leaving the contract amount unchanged. SIGAR's financial audit , performed by Crowe LLP (Crowe). reviewed $17,881.176 in reimbursable costs charged to the contract from January 1, 2017 through February 28, 2018. The objectives of the audit were to (1) identify and report on significant deficiencies and material weaknesses in Chemonics's internal controls related to the contract; (2) identify and report on instances of material noncompliance with the terms of the contract and applicable laws and regulations. including any potential fraud or abuse; (3) determine and report on whether Chemonics has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of Chemonics'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.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 2019
Accession Number
AD1137739

Entities

People

  • John Sopko

Organizations

  • Special Inspector General for Afghanistan Reconstruction

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Afghanistan
  • Auditing
  • Business Administration
  • Commerce
  • Contractors
  • Contracts
  • Costs
  • Deficiencies
  • Expendable
  • Governments
  • Indirect Costs
  • Inventory
  • Law
  • Materials
  • Procurement
  • Standards

Fields of Study

  • Business

Readers

  • Defense Financial Management and Audit.
  • Military and Counterinsurgency Studies.