Memorandum audit report of use of public accounting firms by AID offices in West and Central Africa

offices in West and Central Africa with A.I.D. policy statements calling for increased use of public accounting firms (PAF"s) to improve the financial integrity of A.I.D. projects. Memorandum audit report covers the period 9/83-2/85 and is based on document review, interviews with A.I.D. and PAF personel, and on-site audits in 6 country offices and results of a questionnaire sent to 11 others. Of the 17 A.I.D. offices reviewed, 12 used PAF"s, mostly in the areas of internal controls, accounting systems, and inventory management. Major users were Senegal (accounting for half of PAF use), Burkina Faso, Cameroon, and - of the smaller offices - Togo and Sierra Leone. While the use of PAF"s contributed to the improved financial integrity of A.I.D. projects and offices, financial TA was not systematically considered a preventive measure and was used most often in reaction to problems or criticism. Most project-related corrections did not occur until well into the implementation stage, and only 4 of 11 project papers developed by A.I.D. offices contained audit provisions. Moreover, results of financial TA by PAF"s were not incorporated into central A.I.D. files for sharing among offices. Reports were sent only to requesting offices, and none were sent to PPC"s Center for Development Information and Evaluation (CDIE). The Africa Bureau has accepted recommendations to: (1) require West and Central Africa offices to address financial TA and audit needs at the design stage, incorporating TA and audit plans in design documents in order to obtain Bureau and field approval; and (2) disseminate results of financial TA and audit, at a minimum by sending copies of PAF reports to PPC/CDIE. Recommendations are therefore closed upon issuance of Bureau instructions to its field offices.