Audit of USAID/Kenya"s compliance with audit requirements

requirements to include assessments of the need for audits in project papers and to provide funds for audits in project budgets. Audit report covers audit requirements for 22 projects active as of 9/30/90. USAID/Kenya has established an adequate system to ensure that project papers include assessments of the need for audits as required by A.I.D. policy. However, some active projects requiring audit coverage do not have budgets for audit in project agreements or in agreements with implementing organizations. USAID/Kenya is now properly assessing the need for audit. Project papers prepared by USAID/Kenya since it established a controller position in 1988 have included assessments of audit need. While four of nine project papers approved before 1988 did not adequately assess audit need, the five project papers approved since 1/88 either adequately discussed audit requirements or included a proposed budget for audit in lieu of an assessment. In addition, subsequent amendment of the project agreement for one of the pre-1988 projects also provided an assessment of audit need. The lack of an assessment of audit needs in the remaining three older project papers was not considered a major problem since the Controller"s Office is now reviewing project papers and has adequately implemented this policy. USAID/Kenya, however, has not been as successful at budgeting for audits in project agreements. Project funds have not been budgeted for audits, including final audits, for 5 of 10 active projects that will require audit coverage. (Author abstract)