Audit of USAID"s actions to correct financial management system planning deficiencies

The audit was specifically aimed at determining whether USAID has corrected the planning deficiencies identified in the 3/99 audit on the subject. Of the five deficiencies identified in the 3/99 audit, USAID has fully corrected two and partially corrected the other three. On the positive side, USAID has developed an agency-wide information technology target architecture, a financial management system portfolio, a modular acquisition strategy, and a financial management system remediation plan. It has also established a program management office to oversee the development of an integrated financial management system. On the negative side, USAID"s financial management system portfolio has not been developed in accordance with Office of Management and Budget (OMB) guidelines, and the remediation plan is inadequate. In addition, the lines of authority for the program management office need to be clarified. The reliability and reasonableness of the target dates established for the remediation plan could not be assessed because USAID management excluded the auditors from reviewing and analyzing a detailed plan. As a result, the Inspector General"s Office (OIG) was prevented from conducting the tests necessary to render a professional opinion on USAID"s schedule of milestones that outlined how USAID planned to install a core accounting system in Washington and at two overseas offices by March 31, 2001. (Author abstract, modified)