Afghanistan

SIGAR 22-36 Financial Audit - USAID’s Catalyzing Afghan Agricultural Innovation Program: Audit of Costs Incurred by Virginia Polytechnic Institute and State University

Attachments

Special Inspector General for Afghanistan Reconstruction

WHAT THE AUDIT REVIEWED

On May 20, 2018, the U.S. Agency for International Development’s (USAID) Mission to Afghanistan awarded a 5-year, $8,000,000 associate cooperative agreement to Virginia Polytechnic Institute and State University (VA Tech) to implement the Catalyzing Afghan Agricultural Innovation program. The program’s purpose was to improve capacity in agricultural education and promote new roles for educators and researchers by building their relationships with the private sector, among other activities. USAID modified the agreement seven times. The total award amount did not change and the period of performance’s end date was reduced from May 27, 2023, to February 28, 2022.

SIGAR’s financial audit, performed by Castro & Company (Castro), reviewed $1,787,503 in costs incurred under the agreement from January 1, 2020, through May 27, 2021. The objectives of the audit were to (1) identify and report on material weaknesses or significant deficiencies in VA Tech’s internal controls related to the agreement;

(2) identify and report on instances of material noncompliance with the terms of the agreement and applicable laws and regulations, including any potential fraud or abuse; (3) determine and report on whether VA Tech has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of VA Tech’s Special Purpose Financial Statement (SPFS). See Castro’s report for the precise audit objectives.

In contracting with an independent audit firm and drawing from the results of the audit, auditing standards require SIGAR to review the work performed. Accordingly, SIGAR oversaw the audit and reviewed its results. Our review disclosed no instances wherein Castro did not comply, in all material respects, with generally accepted government auditing standards issued by the Comptroller General of the United States.

WHAT SIGAR FOUND

Castro did not find any material weaknesses or significant deficiencies in VA Tech’s internal controls, or any instances of noncompliance with the terms and conditions of the associate cooperative agreement.
Accordingly, the auditors did not identify any questioned costs.
Castro identified one prior audit report that was relevant to VA Tech’s associate cooperative agreement. The report had two findings that could have a material effect on the SPFS. Castro performed follow-up procedures and concluded VA Tech took adequate corrective action on both of the findings.
Castro issued an unmodified opinion on VA Tech’s SPFS, noting that it presents fairly, in all material respects, revenue earned and costs incurred for the period audited.

WHAT SIGAR RECOMMENDS

Based on the results of the audit, Castro did not report any findings.
Therefore, SIGAR is not making any recommendations.