Quarterly Progress and Oversight Report on the Civilian Assistance Program in Pakistan
As of September 30, 2010
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Oversight entities have also taken steps to ensure that U.S. Government funds are protected against waste and theft. The USAID Office of Inspector General (OIG) has established a field office in Pakistan, and the DOS OIG is in the process of opening a Pakistan office. Also, the USAID OIG has vetted independent Pakistani accounting firms to conduct financial audits of funds provided to Pakistani nongovernmental organizations (NGOs), conducted joint investigations with the National Accountability Bureau (NAB), and collaborated with USAID/Pakistan to establish a fraud hotline.
During the period covered by this report, July 1 through September 30, 2010, USAID OIG completed one performance audit, one financial audit, and one financial review. The performance audit, of USAID/Pakistan’s Family Advancement for Life and Health Program, found that the program had increased demand for and improved family planning services. However, the audit also found that the required financial audits of three Pakistani organizations receiving $24.7 million to help implement the program had not been conducted, leaving the accountability of those funds in question.
The OIG recommended that USAID/Pakistan require its implementing partner to develop a plan of action for completing the required financial audits. OIG’s financial audit was of Pakistan’s Competitiveness Support Fund, a project designed to improve the competitiveness of small and medium-sized Pakistani industries through technical assistance and a match-making grant facility. The audit identified significant deficiencies in internal controls and recommended that USAID/Pakistan improve controls related to audit functions, salary increases, and access to the Web server and determine the allowability of and recover, as appropriate, questioned costs of $355,471.
In addition, USAID OIG conducted an investigation that led to two significant developments relating to livelihood development programs in the Federally Administered Tribal Areas (FATA). After an ongoing OIG investigation revealed evidence of fraud related to the procurement by a USAID implementing partner of household kits for internally displaced persons (IDPs), USAID/Pakistan terminated a 5-year, $150millionlivelihooddevelopmentprogram. As of September 30, 2010, the implementing partner had returned $992,206 to USAID related to this investigation. Additionally, USAID/Pakistan terminated a personal services contractor serving as the agreement officer’s technical representative for the aforementioned livelihood development program and another program of the same type, with a combined value of $300 million. The OIG investigation revealed that the officer had misused his position for the personal gain of relatives and solicited favors from a prohibited source. The individual was subsequently debarred from government contracts.
Several other audits, inspections, and evaluations are under way or planned for FY 2011. USAID OIG has three performance audits and six financial audits under way, along with eight open investigations. For the rest of FY 2011, USAID OIG plans to conduct six performance audits and two financial audits. DOS OIG has one performance evaluation under way and another three evaluations planned for FY 2011. DOD OIG has one Pakistan assignment planned for FY 2011, and the Government Accountability Office (GAO) has five ongoing engagements concerning Pakistan.
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Full report: http://www.usaid.gov/oig/public/special_reports/pakistan_quarterly_report_as_of_sept_30_2010.pdf
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