Negotiated Indirect Cost Rate Agreements: Opportunities Exist to Improve Processes and Data Management

Date Issued

Friday, January 26, 2024

Submitting OIG

U.S. Agency for International Development OIG

Agencies Reviewed/Investigated

U.S. Agency for International Development

Report Number

3-000-24-001-U

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 4 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
To address the weaknesses identified in the report, the firm recommend that USAID's Acting Director, Office of Acquisition & Assistance: Develop and implement procedures to collect indirect cost data from implementers in a systematic manner that will allow it to comprehensively report and analyze the indirect costing methodology and rates for implementers. This information should include indirect cost rate agreement type (e.g., cognizant agency-negotiated indirect cost rate or de minimis agreements).
3	No	$0	$0
To address the weaknesses identified in the report, the firm recommend that USAID's Acting Director, Office of Acquisition & Assistance: Develop written internal control policies, procedures, or guidance specific to USAID's Overhead, Special Cost, and Closeout Branch indirect cost processes to clarify minimal documentation retention rules during every phase of the indirect cost process, notably first time, subsequent, and final negotiations.
4	No	$0	$0
To address the weaknesses identified in the report, the firm recommend that USAID's Acting Director, Office of Acquisition & Assistance: Develop checklists to verify completion of for-profit organizations files similar to the checklist used for non-profit organizations.
6	No	$0	$0
To address the weaknesses identified in the report, the firm recommend that USAID's Acting Director, Office of Acquisition & Assistance: Consider implementation of a centralized document control methodology and tracking mechanism to improve internal document control practices.