FAC Explorer

Finding 1153651 (2024-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-09-19
Audit: 366814
Organization: International Republican Institute (DC)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: Half of the reviewed micro-purchase transactions lacked necessary documentation to prove reasonable pricing.
  • Impacted Requirements: Noncompliance with 2 CFR § 200.320(a)(1)(ii) regarding documentation for micro-purchases.
  • Recommended Follow-Up: Enhance training on procurement documentation, strengthen internal controls, and conduct regular compliance reviews.

Finding Text

Finding 2024-001: Lack of Reasonable Price Documentation for Micro-Purchases Other Matter – Noncompliance/Significant deficiency Identification of federal programs: 98.001 USAID Foreign Assistance for Programs Overseas Criteria: According to 2 CFR § 200.320(a)(1)(ii), recipients of federal funds may use micro-purchase procedures without soliciting competitive quotations only if the price is considered reasonable and documentation is maintained to support this determination. Condition: During our review of micro-purchase transactions, we identified transactions that lacked contemporaneous documentation supporting a reasonable price determination. Cause: IRI’s management did not retain documentation in compliance with the above criteria. Effect or potential effect: The absence of timely documentation undermines the assurance that federal funds were used in accordance with procurement standards. Questioned costs: None Context: From the sample of 40 micro-purchase transactions, half lacked proper contemporaneous documentation supporting a reasonable price determination. We did note that proper approvals were sited for any vendor agreements, invoices, and journal entries as applicable noting due diligence was performed. Repeat Finding: No Recommendation: We recommend that IRI reinforce training on procurement documentation requirements, implement stronger internal controls to ensure compliance at the time of purchase, and conduct periodic reviews to verify adherence to policy. Views of responsible officials and planned corrective actions: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2024 Identifying Number: 2024-001 Finding: During testing of a sample micro-purchase transactions, transactions were identified that lacked contemporaneous documentation supporting a reasonable price determination. From the sample of 40 micro-purchase transactions, half lacked proper contemporaneous documentation supporting a reasonable price determination. Proper approvals were sited for any vendor agreements, invoices, and journal entries as applicable noting due diligence was performed. Corrective Actions Taken: In FY25, IRI revised the process for price justification documents related to micro-purchases. These documents must now be attached to the AP bill in JAMIS (previously, program teams maintained them in their own folders), ensuring that all supporting documentation is stored electronically alongside each transaction. In addition, IRI is rolling out the online contractual system Agiloft, through which all contracts and supporting documents for micro-purchases will be processed electronically, making them easily accessible for review and amendments. Contact Person(s): Procurement and Finance teams: Jessie Ash and Vitaliy Fesun Global Operations team: Brian Zupruk Person Responsible: Vitaliy Fesun, Director of Finance Anticipated Completion Date: October 01, 2025

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1153550 2024-001
    Material Weakness Repeat
  • 1153551 2024-001
    Material Weakness Repeat
  • 1153552 2024-001
    Material Weakness Repeat
  • 1153553 2024-001
    Material Weakness Repeat
  • 1153554 2024-001
    Material Weakness Repeat
  • 1153555 2024-001
    Material Weakness Repeat
  • 1153556 2024-001
    Material Weakness Repeat
  • 1153557 2024-001
    Material Weakness Repeat
  • 1153558 2024-001
    Material Weakness Repeat
  • 1153559 2024-001
    Material Weakness Repeat
  • 1153560 2024-001
    Material Weakness Repeat
  • 1153561 2024-001
    Material Weakness Repeat
  • 1153562 2024-001
    Material Weakness Repeat
  • 1153563 2024-001
    Material Weakness Repeat
  • 1153564 2024-001
    Material Weakness Repeat
  • 1153565 2024-001
    Material Weakness Repeat
  • 1153566 2024-001
    Material Weakness Repeat
  • 1153567 2024-001
    Material Weakness Repeat
  • 1153568 2024-001
    Material Weakness Repeat
  • 1153569 2024-001
    Material Weakness Repeat
  • 1153570 2024-001
    Material Weakness Repeat
  • 1153571 2024-001
    Material Weakness Repeat
  • 1153572 2024-001
    Material Weakness Repeat
  • 1153573 2024-001
    Material Weakness Repeat
  • 1153574 2024-001
    Material Weakness Repeat
  • 1153575 2024-001
    Material Weakness Repeat
  • 1153576 2024-001
    Material Weakness Repeat
  • 1153577 2024-001
    Material Weakness Repeat
  • 1153578 2024-001
    Material Weakness Repeat
  • 1153579 2024-001
    Material Weakness Repeat
  • 1153580 2024-001
    Material Weakness Repeat
  • 1153581 2024-001
    Material Weakness Repeat
  • 1153582 2024-001
    Material Weakness Repeat
  • 1153583 2024-001
    Material Weakness Repeat
  • 1153584 2024-001
    Material Weakness Repeat
  • 1153585 2024-001
    Material Weakness Repeat
  • 1153586 2024-001
    Material Weakness Repeat
  • 1153587 2024-001
    Material Weakness Repeat
  • 1153588 2024-001
    Material Weakness Repeat
  • 1153589 2024-001
    Material Weakness Repeat
  • 1153590 2024-001
    Material Weakness Repeat
  • 1153591 2024-001
    Material Weakness Repeat
  • 1153592 2024-001
    Material Weakness Repeat
  • 1153593 2024-001
    Material Weakness Repeat
  • 1153594 2024-001
    Material Weakness Repeat
  • 1153595 2024-001
    Material Weakness Repeat
  • 1153596 2024-001
    Material Weakness Repeat
  • 1153597 2024-001
    Material Weakness Repeat
  • 1153598 2024-001
    Material Weakness Repeat
  • 1153599 2024-001
    Material Weakness Repeat
  • 1153600 2024-001
    Material Weakness Repeat
  • 1153601 2024-001
    Material Weakness Repeat
  • 1153602 2024-001
    Material Weakness Repeat
  • 1153603 2024-001
    Material Weakness Repeat
  • 1153604 2024-001
    Material Weakness Repeat
  • 1153605 2024-001
    Material Weakness Repeat
  • 1153606 2024-001
    Material Weakness Repeat
  • 1153607 2024-001
    Material Weakness Repeat
  • 1153608 2024-001
    Material Weakness Repeat
  • 1153609 2024-001
    Material Weakness Repeat
  • 1153610 2024-001
    Material Weakness Repeat
  • 1153611 2024-001
    Material Weakness Repeat
  • 1153612 2024-001
    Material Weakness Repeat
  • 1153613 2024-001
    Material Weakness Repeat
  • 1153614 2024-001
    Material Weakness Repeat
  • 1153615 2024-001
    Material Weakness Repeat
  • 1153616 2024-001
    Material Weakness Repeat
  • 1153617 2024-001
    Material Weakness Repeat
  • 1153618 2024-001
    Material Weakness Repeat
  • 1153619 2024-001
    Material Weakness Repeat
  • 1153620 2024-001
    Material Weakness Repeat
  • 1153621 2024-001
    Material Weakness Repeat
  • 1153622 2024-001
    Material Weakness Repeat
  • 1153623 2024-001
    Material Weakness Repeat
  • 1153624 2024-001
    Material Weakness Repeat
  • 1153625 2024-001
    Material Weakness Repeat
  • 1153626 2024-001
    Material Weakness Repeat
  • 1153627 2024-001
    Material Weakness Repeat
  • 1153628 2024-001
    Material Weakness Repeat
  • 1153629 2024-001
    Material Weakness Repeat
  • 1153630 2024-001
    Material Weakness Repeat
  • 1153631 2024-001
    Material Weakness Repeat
  • 1153632 2024-001
    Material Weakness Repeat
  • 1153633 2024-001
    Material Weakness Repeat
  • 1153634 2024-001
    Material Weakness Repeat
  • 1153635 2024-001
    Material Weakness Repeat
  • 1153636 2024-001
    Material Weakness Repeat
  • 1153637 2024-001
    Material Weakness Repeat
  • 1153638 2024-001
    Material Weakness Repeat
  • 1153639 2024-001
    Material Weakness Repeat
  • 1153640 2024-001
    Material Weakness Repeat
  • 1153641 2024-001
    Material Weakness Repeat
  • 1153642 2024-001
    Material Weakness Repeat
  • 1153643 2024-001
    Material Weakness Repeat
  • 1153644 2024-001
    Material Weakness Repeat
  • 1153645 2024-001
    Material Weakness Repeat
  • 1153646 2024-001
    Material Weakness Repeat
  • 1153647 2024-001
    Material Weakness Repeat
  • 1153648 2024-001
    Material Weakness Repeat
  • 1153649 2024-001
    Material Weakness Repeat
  • 1153650 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
19.600 Bureau of Near Eastern Affairs $671,533
19.016 Iraq Assistance Program $638,969
98.001 Usaid Foreign Assistance for Programs Overseas $349,159
19.801 Office of Global Women's Issues $342,015
19.021 Investing in People in the Middle East and North Africa $223,831
19.345 International Programs to Support Democracy, Human Rights and Labor $152,409
19.221 Regional Democracy Program $135,666
19.500 Middle East Partnership Initiative $94,588
19.750 Bureau of Western Hemisphere Affairs (wha) Grant Programs (including Energy and Climate Partnership for the Americas) $52,449
19.222 Trans-Sahara Counterterrorism Partnership (tsctp) $50,140
19.225 Africa Regional Democracy Fund $45,294
19.124 East Asia and Pacific Grants Program $2,414
19.415 Professional and Cultural Exchange Programs - Citizen Exchanges $2,179
19.040 Public Diplomacy Programs $1,759
19.322 Economic Statecraft $-60
19.121 Conflict and Stabilization Operations $-102
19.700 General Department of State Assistance $-131
19.703 Criminal Justice Systems $-317