Reports - Audit

The audit concluded that the Peace Corps’ financial statements were fairly presented, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP), and noted two significant deficiencies in the agency’s internal control over financial reporting, as well as one instance of reportable noncompliance related to provisions of applicable laws, regulations, contracts, and grant agreements.

This review determined that the Peace Corps complied with the Payment Integrity Information Act for FY 2024. The agency provided payment integrity information through the Office of Management and Budget’s FY 2024 annual data call; published its improper payment information in the Agency Financial Report for FY 2024; and posted that report on the Peace Corps’ website.

We conducted an audit of Peace Corps operations in Uganda (hereafter referred to as “the post”) from February through August 2024. Our objective in auditing the Uganda post was to determine whether its financial and administrative operations were functioning effectively and in compliance with Peace Corps policies and Federal regulations.

Our audit determined that while the Peace Corps does have an established framework to oversee and monitor domestic awarded contracts, it can improve its management of the following: • Contract oversight including contract modifications, documentation, and guidance for Contract Officer Representatives and Technical Points of Contact; and • Contract completion, including performance assessments and closeout.

As required by the Accountability of Tax Dollars Act of 2002, the Peace Corps prepared its financial statements and subjected them to audit in accordance with the Office of Management and Budget (OMB) Circular No. A-136, Financial Reporting Requirements. Peace Corps OIG contracted with Williams, Adley & Company-DC LLP, an independent certified public accounting firm, to audit the Peace Corps’ financial statements as of September 30, 2023. The audit was conducted in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Generally Accepted Accounting Principles, issued by the Comptroller General of the United States; and OMB Bulletin No. 24-01, Audit Requirements for Federal Financial Statements.

The U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) is a multi-year U.S. Government initiative to address the HIV pandemic. The PEPFAR program is managed and overseen by the U.S. Department of State’s Office of the U.S. Global AIDS Coordinator and Health Diplomacy (OGAC). Congress appropriates PEPFAR funds to the State Department, which OGAC allocates to the Peace Corps and other participating Federal agencies. The Peace Corps Office of Global Health and HIV (OGHH) serves as the primary point of contact for Peace Corps posts, regions, and other headquarter offices regarding PEPFAR operations. The regions and posts are responsible for executing PEPFAR programs in the field, including its programmatic and administrative management. The Peace Corps Office of the Chief Financial Officer (OCFO) is responsible for providing OGHH and the posts with the necessary PEPFAR strategic, technical, and financial guidance. OCFO and OGHH issue the Peace Corps PEPFAR Financial Guidance, which posts use to document how they will request, plan, and execute PEFPAR funding and its programs. Post staff must ensure expenses are correctly applied and distributed between PEPFAR and the Peace Corps’ direct appropriations and maintain the appropriate supporting documentation.The objective of this audit was to determine the basis and justifications for allocating expenses to PEPFAR funds following the global evacuation of Volunteers in March 2020.