USAID's Mining Investment and Development for Afghan Sustainability Project: Audit of Costs Incurred by ECC Water and Power LLC

Abstract

On March 31, 2013, the U.S Agency for International Development (USAID) awarded a 4-year task order worth $41.7 million to ECC Water and Power LLC (ECC) to implement the Mining Investment and Development for Afghan Sustainability (MIDAS) project. The projects purpose was to provide technical support and assistance to strengthen the institutional capacity of the Afghan Ministry of Mines and Petroleum and private sector entities in extractive industries and energy development. The task order was modified 13 times, decreasing the total cost to $38.7 million. SIGARs financial audit, performed by Castro and Company LLC (Castro), reviewed $8,906,538 in expenditures charged to the contract from January, 2016, through March 31, 2017. The objectives of the audit were to (1) identify and report on significant deficiencies or material weaknesses in ECCs internal controls related to the task order; (2) identify and report on instances of material noncompliance with the terms of the task order and applicable laws and regulations, including any potential fraud or abuse; (3) determine and report on whether ECC has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of ECCs Special Purpose Financial Statement (SPFS). See Castros 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 Castro 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
Jun 01, 2018
Accession Number
AD1138343

Entities

People

  • John Sopko

Organizations

  • Special Inspector General for Afghanistan Reconstruction

Tags

Communities of Interest

  • Energy and Power Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Afghanistan
  • Auditing
  • Contractors
  • Contracts
  • Costs
  • Deficiencies
  • Finance
  • Governments
  • Indirect Costs
  • Materials
  • Money
  • New Jersey
  • Standards
  • United States
  • United States Government

Fields of Study

  • Business

Readers

  • Defense Financial Management and Audit.