Attachment I - SOW for IAF USADF FS Audit (FINAL).pdf

UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT

OFFICE OF INSPECTOR GENERAL

STATEMENT OF WORK (SOW)

U.S. African Development Foundation

(USADF) and Inter-American Foundation

(IAF) Audits of Financial Statements

Table of Contents

A.1. TASK ORDER OBJECTIVES

A.2. PURPOSE

A.3. CONTRACT TYPE

A.4.A. DESCRIPTION OF THE U.S. AFRICAN DEVELOPMENT FOUNDATION

(USADF) AND INTER-AMERICAN FOUNDATION (IAF)

A.4.B. DESCRIPTION

A.5. SCOPE OF WORK

A.6. ENGAGEMENT OBJECTIVES

A.7. DELIVERABLES

A.8. REQUIREMENTS FOR STAFFING

A.9. SUBCONTRACTING RESTRICTIONS

A.10. ACCEPTANCE OF DELIVERABLES

A.11. PREPARATION AND CUSTODY OF DOCUMENTATION

A.12. KEY PERSONNEL AND GENERAL STAFF

A.13. PERIOD OF PERFORMANCE

A.14. PLACE OF PERFORMANCE

A.15. TRAVEL

A.16. HOURS OF WORK

A.17. OBSERVANCE OF LEGAL HOLIDAYS AND ADMINISTRATIVE LEAVE . 15

A.18. CONTRACTING OFFICER’S AUTHORITY

A.19. CONTRACTING OFFICER REPRESENTATIVE

A.20. TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID OIG

A.21. ACCEPTANCE AND APPROVAL

A.22. PAYMENT AND INVOICES

A.23. CONTRACTOR’S STAFF SUPPORT, ADMINISTRATIVE, AND LOGISTICS

ARRANGEMENTS

A.24. SECURITY CLAUSE FOR UNCLASSIFIED CONTRACTS

A.1. TASK ORDER OBJECTIVES

The objective of this statement of work is to obtain (1) financial statements audits of U.S. African

Development Foundation (USADF), and Inter-American Foundation (IAF) for fiscal year

2025.The work under this task will be used to: (1) meet the requirements of the Government

Corporation Control Act (GCCA) of 1945 (31 U.S.C. 9101-9109) for audits of USADF and IAF’s consolidated financial statements, as defined by the OMB Circular A-136 as revised, Financial

Reporting Requirements, or the most current guidance, (2) provide a basis for the United States

Government Accountability Office (GAO) to determine the extent to which it can use the audit work performed under this SOW in support of GAO’s annual audit of the U.S. Government-wide financial report, and (3) assist USADF’s and IAF’s management in assessing the effectiveness of related internal controls and compliance with laws and regulations. An overall summary of the task requirement is presented below.

Audit services must be conducted in accordance with Generally Accepted Government Auditing

Standards (GAGAS), as specified in in the GAO’s Government Auditing Standards (GAO-24-

106786, 2024 Revision) as amended. The Contractor shall conduct the financial statement audits in accordance with GAGAS, as revised, with the Office of Management and Budget (OMB)

Bulletin 24-01, as amended, Audit Requirements for Federal Financial Statements, as amended, and with the Government Accountability Office/Council of Inspectors General on Integrity and

Efficiency’s Financial Audit Manual (GAO/CIGIE FAM), as amended. The Contractor shall prepare their working papers in accordance with Generally Accepted Auditing Standards (GAAS), GAGAS, GAO/CIGIE’s FAM regarding audit documentation.

The financial statements will be prepared by USADF and IAF. The financial statements will be prepared based upon Generally Accepted Accounting Principles (GAAP) for federal reporting entities using the hierarchy contained in Statement of Federal Financial Accounting Standards

(SFFAS) 34, issued by the Federal Accounting Standards Advisory Board.

This task order covers FY2025 and options for action of the four succeeding FY2026 through

FY2029, subject to renewal option periods and available budgetary resources. The first year of this audit will cover FY2025 and following fiscal years if options are exercised.

The audit must be completed in time to meet the Office of Management and Budget's (OMB) due date of November 15 each year.

The USAID Office of Inspector General (USAID OIG) is responsible for its oversight of the

Contractor’s audit services. USAID OIG will issue the draft report for USADF’s and IAF’s management comments. The USAID OIG will also issue the draft and final report with OIG’s transmittal (refer to the GAO/CIGIE’s FAM, Volume 2, Section 670).

A.2. PURPOSE

The purpose of this contract is to obtain a contractor to provide federal government financial statements audit services as described in Section A.5. – Scope of Work.

https://www.gao.gov/assets/d24106786.pdf https://www.whitehouse.gov/wp-content/uploads/2023/10/Bulletin-24-01-Audit-Requirements-for-Federal-Financial-Statements.pdf https://www.whitehouse.gov/wp-content/uploads/2023/10/Bulletin-24-01-Audit-Requirements-for-Federal-Financial-Statements.pdf https://www.gao.gov/financial_audit_manual https://www.gao.gov/financial_audit_manual

A.3. CONTRACT TYPE

The government anticipates awarding a firm-fixed price contract.

A.4.A. DESCRIPTION OF THE U.S. AFRICAN DEVELOPMENT FOUNDATION

(USADF) AND INTER-AMERICAN FOUNDATION (IAF)

U.S. African Development Foundation (USADF)

Established by Congress on December 16, 1980, under the African Development Foundation Act

(African Development Foundation Act, Pub. L. 96-533, title V, Dec. 16, 1980, 94 Stat. 3151 (22

U.S.C. 290h et seq.; Short title, see 22 U.S.C. 290h note), this Foundation supports the efforts of the people of Africa to solve their development problems and can complement current United

States development programs in Africa. The Foundation shall be subject to the provisions of chapter 91 of title 31, United States Code, applicable to wholly owned Government corporations.

In 2014, the Foundation was renamed “United States African Development Foundation (USADF).

The purpose and implementation of the USADF are as follows:

(a) The purpose is to:

1. Strengthen the bonds of friendship and understanding between the people of Africa and the United States.

2. Support self-help activities at the local level designed to enlarge opportunities for community development.

3. Stimulate and assist effective and expanding participation of Africans in their development process.

4. Encourage the establishment and growth of development institutions which are indigenous to countries in Africa and which can respond to the requirements of the poor in those countries.

(b) Implementation of the USADF—

The USADF shall carry out the purposes specified in subsection (a) of this section in cooperation with, and in response to, organizations indigenous to Africa which are representative of the needs and aspirations of the poor in Africa and, in carrying out such purposes, the USADF shall, to the extent possible, coordinate its development assistance activities with the activities of the United States Government and private, regional, and international organizations.

The Inter-American Foundation (IAF)

The Inter-American Foundation (IAF), an independent U.S. government corporation, was created by Congress through the Foreign Assistance Act of 1969 (22 U.S. Code § 290f) to channel development assistance directly to the organized poor in Latin America and the

Caribbean. The IAF has carried out its mandate by responding with grant support for the most creative ideas for self-help received from grassroots groups and nongovernmental organizations. It also encourages partnerships among community organizations, businesses and local government directed at improving the quality of life for poor people and strengthening democratic practices. IAF’s mission is to:

1. Strengthen the bonds of friendship and understanding among the peoples of this hemisphere.

2. Support self-help efforts designed to enlarge the opportunities for individual development.

3. Stimulate and assist effective and ever wider participation of the people in the development process.

4. Encourage the establishment and growth of democratic institutions, private and governmental, appropriate to the requirements of the individual sovereign nations of this hemisphere.

A.4.B. DESCRIPTION OF THE UNITED STATES AGENCY FOR INTERNATIONAL

DEVELOPMENT, OFFICE OF INSPECTOR GENERAL (USAID OIG)

The U.S. Agency for International Development Office of Inspector General (USAID OIG) was established on December 16, 1980, by Public Law 96-533 which amended the Foreign

Assistance Act of 1961. On December 29, 1981, the President signed the International Security and Development Cooperation Act of 1981, bringing the USAID Inspector General under the purview of the Inspector General Act of 1978. The Mission of the USAID OIG is to contribute to and support integrity, efficiency, and effectiveness in all activities of USAID, the Millennium

Challenge Corporation (MCC), the African Development Foundation (USADF), and the Inter-

American Foundation (IAF). Further information about USAID OIG can be found here:

https://oig.usaid.gov/

To achieve this mission, USAID OIG is seeking to issue a contract to obtain support for the

Financial Audits Division to conduct each FY a full scope audit of USADF and IAF Financial

Statements.

The first year of this engagement will cover FY2025 and following fiscal years if options are exercised.

A.5. SCOPE OF WORK

The Contractor will be required to conduct full scope audits of USADF’s and IAF’s consolidated annual financial statements for the fiscal year ending September 30, 2025.

The audits shall be performed in accordance with generally accepted government auditing standards (GAGAS), as specified in the most current version of GAO’s Government Auditing

Standards and additional audit requirements of OMB. In conducting the audits, the methodology used shall be, at a minimum, consistent with the most current version of the GAO/CIGIE FAM.

Should there be any deviations from the methodology set forth in the FAM, the Contractor must provide documentation to the COR on a timely basis, demonstrating how the Contractor’s https://oig.usaid.gov/ methodology satisfies the requirements of the FAM. The OIG must be notified immediately of any significant deviations from the FAM.

With respect to internal control, the Contractor must obtain an understanding of the components of internal control and assess the level of control risk relevant to the assertions embodied in the line items, accounts balances, classes of transactions, and disclosure components of the financial statements.

With respect to Required Supplementary Information (RSI), the contractor must perform appropriate procedures consistent with American Institute of Certified Public Accountants

(AICPA) Standards on all RSI, as defined by the Federal Accounting Standards Advisory Board.

With respect to Other Information, the Contractor must assess whether the information and its presentation is materially consistent with the information in the principal statements.

A.6. ENGAGEMENT OBJECTIVES

The audit objectives are to: (1) express an opinion on whether the financial statements as of

September 30, 2025 and 2024, were presented fairly, in all material respects; (2) evaluate

USADF’s and IAF’s internal control over financial reporting; and (3) determine whether USADF and IAF complied with applicable laws, regulations, contracts, and grant agreements.

The base year of the contract will cover FY2025, and subsequent FYs will be covered if the contract options are exercised.

A.7. DELIVERABLES

Specific deliverables will be established as part of the contract. Deliverables will include, but not limited to:

A.7.1. Entrance Conference

The contractor will hold an entrance conference with USADF and IAF, and OIG to discuss the scope of the engagement, the extent of testing, timing of the work plan and known requests for documentation. Prior to committing to a date, the contractor will coordinate with the OIG in setting the date for the entrance conference and communicating with all attendees. The contractor shall prepare the entrance conference agenda and submit it the COR for a review and approval.

A.7.2. Exit Conference

The exit conference dates will be confirmed after discussions with OIG, USADF, IAF and the agencies staff. However, the dates of the exit conference must be discussed with OIG first and be scheduled prior/on about to submission of the draft reports to USADF and IAF. The contractor shall prepare a draft report /exit conference slides outline for the exit conference and submit it to the COR for a review and approval.

A.7.3. Staffing List and CPEs

The contractor will provide a staff list assigned to the engagement. Key personnel must meet requirements in section A.8. Requirements for Staffing. Also, the contractor must ensure its staff satisfies Government Auditing Standards for CPE and qualifications requirements.

Accordingly, the contractor shall submit to the COR an updated summary of CPEs annually.

A.7.4. Resumes

The contractor will provide resumes for all staff assigned to the engagement. Proposed staff should have qualifications, experience and education relevant to the scope of work and section

A.8. Requirements for Staffing.

A.7.5. Independence Statements

The contractor shall submit to the COR a statement of firm independence and objectivity as required by Government Auditing Standards and the AICPA. The statement shall be provided to the COR for each year of the contract. In addition, the contractor shall submit annually to the

COR a signed statement of independence from each individual participating in each engagement.

The contractor is required to affirm whether or not the company is independent from USADF and IAF, including a statement that the company (1) is free from personal and external impairments to independence from USADF and IAF (2) is organizationally independent, and (3) intends to maintain its independence in fact, attitude, and appearance throughout the period of performance of the statement of work. If any impairment(s) exists and/or are foreseen, the contractor must explicitly state the nature of such impairment(s).

A.7.6. Peer Review and Quality Assurance Statement

The contractor shall submit to the COR a copy of the latest peer review report, related letter of comment, and the response to those comments. Additionally, the contractor shall provide a summary of the system of quality management process and the results of any internal quality control inspections. These documents shall be provided to the COR annually. By the end of each audit, the contractor shall submit a quality controls assurance statement that the contractor’s internal quality controls over planning, fieldwork, and reporting were followed in accordance with Government Auditing Standards or other regulatory criteria.

A.7.7. Engagement and Those Charge with the Governance Letters

The contractor shall submit to the COR a copy the engagement letter and those charged with the governance letters as applicable for each engagement as per FAM 215 A, AU-C 210.10 and.

A44. Upon COR’s approval the contractor will send these to USADF and IAF.

A.7.8 Detailed Audit Planning Documents

The Contractor must submit Detailed Audit Planning Documents covering the Financial

Statements for both entities (USADF and IAF), which must include a detailed understanding of each entity’s operations and of performance measures. For any methodology used that is not consistent with the GAO/CIGIE FAM, the Contractor must provide documentation to the OIG on a timely basis, demonstrating how the Contractor’s methodology satisfies the requirements of the

FAM. At a minimum, the Detailed Audit Planning Documents must include the following for both reporting entities (USADF and IAF) as applicable to the Financial Statements audits:

• Audit Strategy

• Audit Program/testing procedures

• Fraud Brainstorming & Discussion Meeting

• A schedule of milestones for completing each section of the audit. These sections shall include (at a minimum) planning, internal control, testing, and reporting. This schedule should take IT control environment audit work into consideration.

• A listing of staff that will be assigned to the audit

• Entity profiles

• Plan for Preliminary analytical procedures

• The sampling plan (FAM Sampling Form) to be used during the internal control, compliance, and substantive testing phases.

• The materiality levels

• Plan for auditing non-expenditure transfers from other agencies.

• Planned Specific Control Evaluation and Line Item Risk Analysis Forms

• Cycle Memoranda for significant/key processes and volumes of transactions

All planning deliverables shall be submitted electronically via an email and documented in the electronic working papers package, in either the contractor’s proprietary auditing software.

The COR/task monitor is responsible for review and acceptance of the Detailed Audit Planning

Document. Review comments will be provided to the Contractor no later than 10 working days after receipt of the documents. This review and acceptance of these planning documents will not alter the Contractor’s overall fixed price submitted at the time of acceptance of the task order.

A.7.9 Proposed audit plans for interim and year-end testing.

Detailed draft audit plans for Financial Statements audits must be submitted in accordance with the Deliverables Schedules. While the audit plan may be modeled after standard work programs guidance issued by the GAO/CIGIE, AICPA or other organizations, it must be specific to the entity under audit. The plan, at a minimum, shall include:

• A section on tests of significant internal controls identified during the planning phase.

• A section on tests of compliance with applicable laws and regulations, and a list of the laws and regulations to be tested in accordance with FAM. (for Financial Statements

Audits)

• A section on substantive testing procedures to be applied to the high risk accounts or significant financial statement line item based on the assessed risk of material misstatements.

The COR/task monitor is responsible for review and acceptance of the audit plans. Review comments will be provided to the Contractor no later than ten (10) working days after receipt of the documents. This review and acceptance of these documents will not alter the Contractor’s overall fixed ceiling price submitted at the time of acceptance of the task order.

A.7.10. Workpapers

For all audit phases written products shall be prepared in accordance with applicable regulatory standards and required formats (GAO deliverables, FAM templates etc.). Workpapers shall be submitted to the COR via electronic copies. The COR will review draft products and provide comments. The contractor shall incorporate responses to OIG’s comments into the product or revise relevant working papers and resubmit the product to be approved by the Contracting Officer

Representative (COR) at no additional cost to the government. OIG reserves a right to review workpapers for planning, internal controls, substantive testing and reporting phases upon a request.

A.7.10 Notification of Findings and Recommendations (NFR)

For each finding identified, the Contractor must develop the elements of each finding as indicated in the GAS. The audit documentation must include a description of the condition found, the criteria used, causes of the situation, the effect resulting from the condition, and recommendations for corrective action.

For internal control deficiencies that are not considered to be significant deficiencies or material weaknesses, the Contractor must communicate the results in a management letter as described in

Standards issued by the AICPA. The contractor must also follow up on any previous recommendations and issue a report on corrections made and the status of uncompleted actions.

The COR and task monitor shall be kept advised of all findings and issues (both IT and financial issues) in a timely manner. Once the contractor confirmed any findings from the financial statements audit, the contractor shall prepare written NFRs to report these findings and recommendations. The contractor should not wait until the end of the fieldwork to prepare or issue

NFRs. Before NFRs are submitted to USADF or IAF, draft NFRs must be sent to the OIG COR or task monitors for review. After the COR or task monitor approve the final NFRs, the contractor is responsible for submitting the NFRs to USADF or IAF personnel and include the COR and task monitors in the communication. The contractor shall also follow up with USADF or IAF’s personnel to ensure the agencies provide responses to the NFRs in a timely manner. Agency responses to NFRs shall also be provided to the COR and task monitors.

A.7.11 Schedule of Uncorrected Misstatements

The Contractor must provide a Schedule of Uncorrected Misstatements (SUM) to the management of USADF and IAF for inclusion in the management representation letter as required by OMB Circular A-136, as amended.

A.7.12. Progress and Audit Status Reports

Every month or as requested by the COR, the contractor will provide a progress report to the

COR on (1) the audit progress, (2) tasks accomplished, (3) tasks planned, and (4) any challenges encountered. The submission of the progress and audit status reports will occur on the first business day of each month.

Additionally, for the status meetings with USADF, IAF and OIG, the contractor must prepare the

Audit Status Reports/Agendas. These shall describe for each task and subtask, (1) the work performed during that reporting period, (2) work planned for the next reporting period by significant cycle, (3) any impediments to completing the work in accordance with the scope, quality, and schedule, and (4) the overall status of completing each task and subtask. Agendas for Status Report meetings are due two business days prior to each meeting. Additionally, the

Status Reports shall include all outstanding Provided By Client (PBC) requests. The minutes of the meeting with the sign-in sheet of the attendees shall be submitted to the OIG the day after such meetings.

A.7.13. Audit Status meetings

Audit status meetings will be held with OIG every 2 weeks or as agreed upon with the COR.

Additionally, as key deliverables approach the audit status meetings will be held weekly or on an as needed basis with USADF, IAF and OIG. These meetings are expected to last 30 minutes and have an agenda as noted in the section above A.7.12. Progress and Audit Status Reports. These meetings, however, can last much longer when complex issues are discussed. The Engagement

Partner and Manager are expected to attend these meetings.

A.7.14 Reports

In accordance with applicable standards for the financial statements audit, the Contractor must submit to the COR the draft report and final audit reports. The audit reports must be prepared in accordance with GAGAS. The draft and final report must include all reporting sections as identified in applicable governing regulations.

A completed version of the draft and final audit report must be submitted to the COR for a review and comment. The Contractor must address all comments made by the COR.

The draft and final report delivered to the COR must be indexed to supporting evidence and documentation. The Contractor must have personnel independent of the audit to verify and reference the indices.

The draft report is not considered complete until it is approved by the COR. OIG will transmit the draft report to USADF and IAF for official management comments. The period of time when

USADF and IAF will have to comment on the draft report will be established by OIG.

Once USADF and IAF provides official comments on the draft report, the Contractor is responsible for reviewing and responding to the comments to ensure the final report is clear, and accurate. The final report is not considered complete until it is approved by the COR. Also, a final report must be signed by the Contractor and submitted as a PDF. OIG will transmit the final report to USADF and IAF. The final reports need to comply with Section 508 compliance (29

U.S.C. § 794d). Report preparation, format, and writing style will be discussed in detail after task order issuance. In cases of conflict in writing style, the OIG’s preferences take precedence.

It is desirable that OIG reports have consistency in preparation, organization, and format so that its stakeholders, who read many OIG reports, may more easily and quickly understand the issues that the report contains. To that end, the OIG is continually reviewing its report processes and may provide report guidelines/preferences as the engagement progresses.

Specifically:

(1) Independent Auditor’s Report on USADF and IAF Consolidated Financial

Statements contained in the Agency Management Report (AMR)

In accordance with FAM Section 500-595, Audit Requirements for Federal Financial Statements

(OMB 24-01 or as amended) and other regulatory guidance, the contractor shall prepare and sign the Independent Auditor’s Report contained in the USADF and IAF’s AMR, including the

Opinion on the Consolidated Financial Statements, Internal Control over Financial Reporting, and the Report on Compliance with Laws and Regulations.

Reports on Internal Control and Compliance Over Financial Reporting shall include (if applicable) findings and recommendations on internal control and compliance with laws, regulations, contracts, and grant agreements. The OIG approved version of the findings and recommendations shall be cross-referenced to supporting audit documentation and documented in the electronic working papers package (contractor’s proprietary auditing software).

The draft and final Independent Auditor’s Reports shall be cross-referenced to supporting audit documentation and available for OIG review. Additionally, the final version of the report shall be submitted in electronic copy.

(2) Management Comments Identified in an Audit of the Consolidated Financial

Statements to be Reported to the Chief Financial Officer

The contractor shall prepare the Management Letter to report all findings and recommendations that did not rise to the level of significant deficiencies on internal controls and compliance with laws and regulations, contract, and grant agreements identified in the audit of the financial statements to the OIG and USADF and IAF’s CFO. The contractor will be required to prepare a

Management Letter in writing or verbally. The OIG will make a determination on the form and content of the letter and communicate to the contractor. All findings shall include the following five elements: condition, criteria, cause, effect, and recommendation (if applicable), to comply with the Government Auditing Standards.

A.7.15. Status of Prior Year Recommendations

The contractor must assess and evaluate both agencies prior year recommendations, proposed corrective action plan and sufficiency of a final actions taken to address recommendations.

Contractor must submit to the COR an evaluation of USADF’s and IAF’s open and close recommendations. Based on the input from the contractor and OIG’s internal review, OIG will respond to USADF and IAF regarding the status of open or closed recommendations.

A.7.16. Audit Summary Memo

The contractor must prepare the summary memorandum documenting the conclusions for each audit, risk assessment and review. Specifically, the contractor must provide the audit summary memo documenting the conclusion and opinion reached on each cycle, account balance, lead schedule, and audit adjustments as required by FAM.

A.7.17. Management and Legal Representation Letters

As required by the governing regulations and Treasury, the contractor will be required to obtain the management representation and legal representation letters.

A.7.18. Checklists

As stated in section A.5. Scope of Work and required by standards, the contractor will provide: (a) CIGIE Checklist C and (b) FAM 2010 checklist (or as amended).

A.7.19 Schedule of Deliverables to COR

Deliverables FY 2025 Due Dates OIG and IPA Kick-off Meeting 5 days after award

Staffing List, Resumes, Independence Statements, and CPEs NLT 10 business days after issuance of the award

Independence/Quality Assurance Statement and Peer Review Report

NLT 10 business days after issuance of the award

Entrance Conference NLT 10 business days after issuance of the award

Engagement Letter and Letter to Those Charged with Governance

NLT 15 business days after issuance of the award

Detailed Audit Planning Document

NLT May 12th, 2025; 2026;

2027; 2028; 2029

Audit Program/Audit Plans NLT May 12th, 2025; 2026;

2027; 2028; 2029

Internal Control Testing Workpapers (Including Completed Cycle Memoranda and SCEs/Interim LIRAs)

NLT September 1st, 2025; 2026;

2027; 2028; 2029

Substantive Testing & Reporting (Including Year-End LIRAs, Findings and Summary Memoranda)

NLT October 30th, 2025; 2026;

2027; 2028; 2029

Monthly Progress Reports Monthly - due at the first business day of each month

Schedule of Uncorrected Misstatements (SUM) NLT October 27, 2025; 2026;

2027; 2028; 2029

NFRs TBD

Summary Memo & GAO/ financial reporting checklists

TBD

Draft Audit Reports to OIG NLT October 20, 2025; 2026;

2027; 2028; 2029

Final Audit Reports to OIG NLT November 5, 2025; 2026;

2027; 2028; 2029

Draft Management Letter and/or Separate Control Deficiency Communication to OIG

TBD

Final Management Letter and/or Separate Control Deficiency Communication to OIG

TBD

Status of Prior Year Recommendations Letter NLT October 31, 2025; 2026;

2027; 2028; 2029

Exit Conference TBD

A.8. REQUIREMENTS FOR STAFFING

The Contractor shall provide appropriate technical and administrative staff support needed to facilitate the execution of the statement of work. The following individuals are identified as “key” personnel and will be evaluated based on the following criteria:

1. Partner (key personnel). The Partner must be a Certified Public Accountant and have a minimum of 10 years of experience managing audits of financial statements of federal government agencies, pursuant to GMRA and the CFO Act.

On a daily basis, the Partner is responsible for ensuring that services are provided in an efficient and timely manner. The Partner manages significant program/technical support operations and execution of all engagement activities.

Also, the Partner is responsible for contract negotiations, adhering to auditing standards, and ensuring the quality of all work products.

2. Audit Manager (key personnel). The Audit Manager must be a Certified Public

Accountant and have a minimum of 5 years of experience managing audits of financial statements of federal government agencies, pursuant to GMRA and the CFO

Act. On a daily basis, the Audit Manager is responsible for directing the accomplishments of the engagement. The Manager sets the priorities and monitors progress against schedules, budgets and status reporting. In addition, the Manager confers with client management staff regarding specific program/technical activities, issues, or conflicts.

3. Senior/Supervisory Auditor (key personnel). The Senior/Supervisory Auditor must possess a bachelor’s degree in accounting and have a minimum of 3 years of experience performing audits of financial statements of federal government agencies, pursuant to GMRA and the CFO Act. On a daily basis, the Audit Supervisor supervises project staff on-site, provides technical guidance on work assignments, and acts as a liaison between project staff and project manager.

The following are the staffing requirements for the FISCAM portion of the audit:

4. IT Audit Manager (key personnel). The proposed individual shall possess a CISA certification -OR- a Bachelor’s degree in Accounting or Management Information

Systems, and a minimum of 5 years of experience in conducting relevant information technology audits. On a daily basis, the IT Manager is responsible for directing the activities of the audit team to ensure the success of the engagement. The IT Manager sets the priorities and monitors progress against schedules, budgets and status reporting. In addition, the IT Manager confers with client management staff regarding specific program/technical activities, issues or conflicts.

5. IT Senior Auditor (key personnel). The proposed individual shall possess a CISA certification – OR- a Bachelor’s degree in Accounting or Management Information

Systems, and a minimum of 3 years of experience in conducting information technology audits. On a daily basis, the Audit Supervisor supervises project staff on-site, provides technical guidance on work assignments, and acts as a liaison between project staff and project manager.

A.9. SUBCONTRACTING RESTRICTIONS

Except as approved in writing, in advance by the CO, the Contractor must not subcontract any work procured hereunder. It is contemplated that approval will be given for subcontracting certain phases of the work when, in the opinion of the COR and the CO, such subcontracting will not adversely affect delivery of the final product, the quality, or independence (in fact or appearance) of the contracted firm. Requests for approval to subcontract shall be submitted, in writing, to the CO. Subcontractor qualifications must be available for evaluation and consideration prior to the award.

A.10. ACCEPTANCE OF DELIVERABLES

Unless otherwise specified under this task order, the OIG will have ten (10) working days from the date of delivery to accept or reject deliverables provided by the contractor under this task order.

The OIG will notify the contractor upon acceptance of each deliverable.

In the event that a deliverable is rejected, the contractor will be notified in writing of the rejection and the specific deficiency. The contractor will be required to correct and resubmit the item(s) within seven (7) business days.

A.11. PREPARATION AND CUSTODY OF DOCUMENTATION

The contractor shall be responsible for preparing and reviewing all working papers supporting the deliverables required. All working papers shall be prepared in accordance with GAAS, GAGAS, GAO FAM and any other regulatory criteria. Working papers will be reviewed and approved by the OIG in accordance with FAM 670 (Using the Work of Others) and CIGIE Checklist F. Use of an electronic audit working paper package is required. The contractor shall use electronic auditor working paper system similar to document electronic audit working papers and documents.

The contractor shall provide OIG instructions on the use of the proprietary software, a limited use license of this software, and as needed a number of copies of this software used to prepare required reports. This includes any electronic audit working paper package.

The contractor agrees that the OIG has the right to review, obtain, and copy all records pertaining to the performance of the contract. Contractor agrees to provide the OIG with any relevant information requested and shall permit the OIG access to its premises, upon reasonable notice during normal working hours, for the purpose of interviewing employees, inspecting, and copying the contractor’s books, records, accounts, and other material pertaining to the performance of the contract. The contractor further agrees to maintain such records for a period of five years after final payment under the contract.

The contractor shall ensure working papers and related documents are available for timely OIG review by updating the master electronic audit working paper package file as often as needed. This could be monthly early into the audit and as often as daily as due dates are approaching. These documents are also subject to review by other Government auditors, including GAO, the Department of Treasury, and others and shall be provided when requested to comply with auditing standards pertaining to reliance on the contractor’s work and for oversight responsibilities.

All requests for access to such documents and papers from third parties shall be handled by the

OIG in compliance with the Freedom of Information Act (FOIA), Privacy Act, Section 508

Compliance, Trade Secrets Act, and any other applicable federal statutes and regulations.

The contractor, including its employees, agents, subcontractors, and all other personnel assigned to this contract, agree not to divulge to any unauthorized person any information obtained in the performance of their duties under this contract.

The OIG will notify the contractor when it receives a third-party request for such documents and papers. The OIG will also provide the contractor with an opportunity to submit objections to the release of any materials, which it believes may contain trade secrets or other confidential or proprietary information (of the contractor).

After reviewing such comments and objections, the OIG will notify the contractor prior to releasing any materials to a third party. The OIG’s determinations with respect to the release of such materials to a third party shall be final.

A.12. KEY PERSONNEL AND GENERAL STAFF

A.12.1. KEY PERSONNEL

Before replacing any individual designated as Key Personnel by the Government, the Contractor must notify the Contracting Officer via email no less than fifteen (15) business days in advance, submit written justification for replacement, and provide the name and qualifications of any proposed substitute(s). All proposed substitutes shall possess qualifications equal to or superior to those of the Key person being replaced, see section A.8. Requirements for Staffing. The

Contracting Officer will evaluate such requests and promptly notify the contractor of his/her approval or disapproval thereof. The Contractor shall not replace Key Personnel without acknowledgement from the COR and the CO. The Government may designate additional

Contractor personnel as Key Personnel at the time of award. Key personnel must adhere to

GAGAS CPE and independence requirements.

The key personnel whom the Contractor shall furnish for the period of performance of this contract are as follows:

Position Name

Partner TBD at time of award

Audit Manager TBD at time of award

Senior/supervisory Auditor TBD at time of award

IT Audit Manager TBD at time of award

IT Senior Auditor TBD at time of award

A.12.2. GENERAL STAFF

To ensure proper coverage and staffing needs for this contract, the contractor is required to provide a list of staff (identifying any subcontractors), and their years of experience. General staff must adhere to GAGAS CPE and independence requirements.

The general staff listing (along with the key personnel) must be available for evaluation and consideration prior to the award.

Before replacing any individual designated as General Staff approved to work on the contract, the Contractor must notify the Contracting Officer via email no less than fifteen (15) business days in advance and provide the name and qualifications of any proposed substitute(s).

A.13. PERIOD OF PERFORMANCE

The period of performance for this contract shall be a one-year base period with four (4) one-year option periods. The period of performance for the base period shall commence on November 1, 2024, but not before the USAID OIG Contracting Officer has signed the Task Order. The contractor must tender deliverables in accordance with the delivery schedules contained in this

Statement of Work.

Base Year November 1, 2024 – October 31, 2025

Option Period One November 1, 2025 – December 31, 2026

Option Period Two November 1, 2026 – December 31, 2027

Option Period Three November 1, 2027 – December 31, 2028

Option Period Four November 1, 2028 – December 31, 2029

A.14. PLACE OF PERFORMANCE

Work under this contract shall be completed in the Washington, DC metropolitan. Any work associated with activity or deliverable design, development, analysis, reporting, writing, etc. will be completed at the Contractor’s offices or other location as determined by the Contractor.

Contractor workspace or commute expenses will not be paid for or reimbursed by USAID OIG.

The Contractor must be available for meetings with the agencies’ representatives and call COR as needed and as agreed by both parties (virtually or in person) as needed.

A.15. TRAVEL

Travel expenses to USAID OIG’s offices or nearby locations for meetings or any activities will not be paid or reimbursed to the Contractor or any consultants or subcontractors. The Contractor, subcontractor(s), and/or consultant(s) are responsible for their own local or US travel.

However, travel expenses to the location of the payroll service provider will be designed to test both IAF and USADF (e.g., West Virginia, U.S.) for audit visit sites will be paid or reimbursed to the Contractor or any subcontractors. No international travel is required.

All international travel must be vetted and approved by the COR prior to being planned and arrangements being made. Travel expenses will be reimbursed at actual amount incurred. All travel under this contract shall be in accordance with the Federal Travel Regulations.

A.16. HOURS OF WORK

Unless otherwise specified, the Contractor is permitted an eight (8) hour workday, Monday through Friday, excluding Federal Holidays.

A.17. OBSERVANCE OF LEGAL HOLIDAYS AND ADMINISTRATIVE LEAVE

USAID OIG recognizes and observes all federal U.S. holidays listed on OPM.gov’s federal holiday webpage (linked below) and any other day designated by Federal Law, Executive Order, or Presidential Proclamation.

https://www.opm.gov/policy-data-oversight/pay-leave/federal-holidays/

A.18. CONTRACTING OFFICER’S AUTHORITY

The Contracting Officer is the only person authorized to make or approve any changes in the requirements of this CONTRACT and notwithstanding any provisions contained elsewhere in this CONTRACT, the said authority remains solely in the Contracting Officer. In the event the

Contractor makes any changes at the direction of any person other than the Contracting Officer, the change shall be considered to have been made without authority and no adjustment shall be made in the CONTRACT terms and conditions, including price.

https://www.opm.gov/policy-data-oversight/pay-leave/federal-holidays/

A.19. CONTRACTING OFFICER REPRESENTATIVE

1. The Contracting Officer’s Representative (COR) designated for this contract (to be designated via COR Designation Letter) is authorized to act as an official representative of the Contracting Officer.

2. The COR is designated by the Contracting Officer and authorized to act within the limitations specified herein and written restrictions specifically imposed under the terms of the contract and by the Contracting Officer. The authority must extend the following: inspection, acceptance, or rejection of work.

3. This designation does not include authority to direct changes in scope, price, terms, or conditions of this contract. The authority herein also does not include authority to execute modifications to the contract, which requires the signature of the Contracting

Officer, or to bind the Government by contract terms of a proposed contract change.

A.20. TECHNICAL DIRECTIONS/RELATIONSHIP WITH USAID OIG

1. Technical Directions is defined to include:

a. Written directions to the Contractor which fill in details, suggest possible lines of inquiry, or otherwise facilitate completion of work;

b. Provision of written information to the Contractor which assists in the interpretation of drawings, specifications, or technical portions of the work statement;

c. Review and, where required, provide written approval of technical reports, drawings, specifications, or technical information to be delivered. Technical directions must be in writing and must be within the scope of the work as detailed in Section A.5.

2. The COR is authorized by designation to take any or all action with respect to the following:

a. Assure that the Contractor performs the technical requirements of the contract in accordance with the contract terms, conditions, and specifications.

b. Perform or cause to be performed, inspections necessary in connection with a) above and require the Contractor to correct all deficiencies; perform acceptance for the Government.

c. Maintain all liaison and direct communications with the Contractor. Written communications with the Contractor and documents must be signed as "Contracting

Officer Representative" with a copy furnished to the Contracting Officer.

d. Issue written interpretations of technical requirements of Government drawings, designs, and specifications.

e. Monitor the Contractor's production or performance progress and notify the

Contractor in writing of deficiencies observed during surveillance, and direct appropriate action to effect correction. Record and report to the Contracting

Officer incidents of faulty or nonconforming work, delays or problems.

f. Obtain necessary security clearance and appropriate identification if access to

Government facilities is required. If to be provided, ensure that Government furnished property is available when required.

g. Complete Contractor Performance Assessment Reports (CPARs) once a year.

3. LIMITATIONS: The COR is not empowered to award, agree to, or sign any contract

(including delivery or task orders) or modifications thereto, or in any way to obligate the payment of money by the Government. The COR may not take any action which may impact on the contract schedule, funds, scope or rate of utilization of contract personnel resources. All contractual agreements, commitments, or modifications which involve prices, quantities, quality, schedules, must be made only by the Contracting Officer.

a. The COR is required to meet quarterly with the Contractor and the Contracting

Officer concerning performance of items delivered under the contract and any other administration or technical issues. Telephonic reports may be made if no problems are being experienced. Problem areas should be brought to the immediate attention of the Contractor and Contracting Officer.

b. In the absence of the designated primary COR, the alternate COR identified in the official COR delegation letter may serve as COR in their place. However, such an action shall immediately be communicated to the Contractor and the

Contracting Officer.

c. Contractual Problems: Contractual problems, of any nature that may arise during the life of the contract must be handled in accordance with specific public laws and regulations (i.e. Federal Acquisition Regulation and Agency for International

Development Acquisition Regulation). The Contractor and the COR must bring all contracting problems to the immediate attention of the Contracting Officer. Only the Contracting Officer is authorized to formally resolve such problems. The

Contracting Officer will be responsible for resolving legal issues, determining contract scope and interpreting contract terms and conditions. The Contracting

Officer is the sole authority authorized to approve changes in any of the requirements under this contract. Notwithstanding any clause contained elsewhere in this contract, the said authority remains solely with the Contracting Officer.

These changes include but will not be limited to the following areas: scope of work, price, quantity, technical specifications, delivery schedules, and contract terms and conditions. In the event the Contractor effects any changes at the direction of any other person other than the Contracting Officer, the change will be considered to have been made without authority.

d. Failure by the Contractor to report to the Administrative Contracting Office, any action by the Government considered a change, within the specified number of days contained in FAR 52.243-7 (Notification of Changes), waives the Contractor's right to any claims for equitable adjustments.

A.21. ACCEPTANCE AND APPROVAL

The COR must accept and approve deliverables before payment may be made.

A.22. PAYMENT AND INVOICES

Funding is subject to the approved work plan and organizational development activity approvals.

The Contractor cannot bill for or incur costs above the total estimated amount for the approved work plan without written approval in advance from the COR and necessary Contract modifications, if applicable. In addition, for each organizational development activity, the

Contractor shall provide an estimate in advance. The Contractor must receive written approval in advance from the COR for any deviation of the activity that will cause a price change of more than 10%. This percentage is calculated at the activity level not the overall contract level. The

Contractor will be responsible for all costs incurred without appropriate approvals.

One original of each invoice shall be submitted on an SF-1034 Public Voucher for Purchases and

Services Other Than Personal to the Office of Financial Management. One (1) copy of the vouchers and invoice shall also be submitted to the COR. Submit invoiced to the Office of Chief

Financial Officer to this address: EI@USAID.GOV. The SF-1034 must be signed, and it must be submitted along with the invoice and any other documentation in Adobe.

It is anticipated that partial payments will be made under this Task Order according to deliverables, as follows:

DELIVERABLE PERCENTAGE

Detailed Audit Planning Document 10%

Audit plans/Signed Revised audit plans 10%

Deliver Internal Control Working Papers - Reviewed 15%

Deliver Substantive Testing Working Papers - Reviewed/

GAO/CIGIE’s Compliance checklists, Notification of

Findings and Recommendations

25%

Review Financial Statement Presentation Status of PY Findings and Issue Draft Report

15%

Issue Final Audit Report 15%

Summary Memo & GAO/CIGIE audit and financial reporting checklists 10%

TOTAL 100%

mailto:EI@USAID.GOV

A.23. CONTRACTOR’S STAFF SUPPORT, ADMINISTRATIVE, AND LOGISTICS

ARRANGEMENTS

During the period in which this statement of work is performed, the Contractor shall require administrative support from USADF, IAF, and their service providers.

USADF, IAF, and their service providers are responsible for providing the administrative support to the Contractor. The designated USADF, IAF, and their service providers’ audit coordinator shall be responsible for ensuring that the necessary support is provided in a timely manner. The audit coordinator’s support tasks will include:

• Providing office space, office furnishings, and telephone and fax lines.

• Coordinating access to requested documentation.

• Arranging interviews with USADF, IAF, and their service providers.

• Coordinating field visits, if any.

• Providing building access.

• Obtaining signed confidentiality agreements.

A.24. SECURITY CLAUSE FOR UNCLASSIFIED CONTRACTS

This contract/award is designated "unclassified". Although access to National Security

Information will not be required during performance, unescorted access to USAID's designated

“Unrestricted” space/work centers is optional.