Department of States Support for Corrections System and National Justice Programs in Afghanistan: Audit of Costs Incurred by PAE Justice Support
Abstract
On December 30, 2014, the Department of State (State) awarded Pacific Architects and Engineers Inc. a $41,093,479 cost-plus-fixed fee contract. The contract's objective was to help the Afghan government implement the Corrections System Support Program and support the National Justice Program to modernize and develop the corrections system. The contracts initial period of performance ended on June 30, 2015. The contract had two option periods. During the timeframe audited, State exercised both option periods, extending the period of performance through February 29, 2016. State modified the contract 12 times. After the second modification, the entity receiving the contract was changed to PAE Justice Support (PAE). Under the final modification, State authorized a total cost of $27,625,000. SIGAR's financial audit, performed by Crowe LLP (Crowe), reviewed $26,381,932 in costs and fixed fees incurred from January 1, 2015, through February 29, 2016. The objectives of the audit were to (1) identify and report on significant deficiencies or material weaknesses in PAE's internal controls related to the contract; (2) identify and report on instances of material non compliance with the terms of the contract and applicable laws and regulations, including any potential fraud or abuse; (3) determine and report on whether PAE has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of PAE'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
- AD1137759
Entities
People
- John Sopko
Organizations
- Special Inspector General for Afghanistan Reconstruction