What OIG Audited
In June 2022, 21 governments throughout the Americas, including the
United States, signed the Los Angeles Declaration on Migration and
Protection, which focuses on efforts that allow migrants, refugees,
asylum seekers, and persons in situations of vulnerability to integrate
into host countries.
- In support of these efforts, the Department of
State’s Bureau of Population, Refugees, and Migration (PRM) received
more than $100 million in funding for assistance programs in 17 Western
Hemisphere countries.
The Office of Inspector General (OIG) conducted
this audit to determine whether selected recipients of PRM cooperative
agreement funds supporting stability and assistance efforts in the
Western Hemisphere (1) achieved the goal of socioeconomically
integrating beneficiaries into their host countries and
(2) expended
funds in accordance with federal requirements, Department policies and
guidance, and award terms and conditions.
To perform the audit, OIG
reviewed three cooperative agreements related to efforts in Brazil,
Colombia, and Ecuador.
What OIG Found
OIG determined that the three selected award recipients reviewed for
this audit achieved their goal of socioeconomically integrating
beneficiaries into host countries.
Specifically, OIG verified that all
30 selected beneficiaries tested for this audit received assistance
finding employment, starting a business, or strengthening an existing
business.
- However, OIG also found that two of the three award recipients
did not always meet reporting requirements and one of those also did
not report accurate information.
Consequently, OIG could not confirm the
extent to which these award recipients achieved intended results for
some performance indicators specified in the awards.
- Furthermore, OIG
found that PRM’s oversight efforts generally fulfilled the awards’
substantial involvement requirements;
- However, one award recipient
submitted an incomplete final performance progress report, and when PRM
used an Artificial Intelligence tool to summarize the recipient’s
performance achievements, the resulting Artificial Intelligence summary
was also incomplete.
As a result, PRM did not fully determine whether
the recipient successfully met all objectives specified in the award.
With respect to the expenditure of funds, OIG tested 114 expenditures,
valued at $238,795, and found that the selected award recipients
generally expended funds in accordance with requirements.
- However, OIG
identified three expenditures (3 percent), valued at $5,154, that were
unallowable ($2,830) or unsupported ($2,324).
- OIG also found that one
award recipient claimed an indirect cost reimbursement that was higher
than allowed ($36,891) and lacked internal controls related to the
provision of temporary housing for beneficiaries ($108,000).
- As a
result, OIG is questioning an additional $144,891 in costs.
- Furthermore,
OIG found that PRM did not ensure that this award recipient met the
single or program-specific audit requirement, which is necessary to
validate that the award recipient complied with internal controls
requirements.
What OIG Recommends
OIG offered eight recommendations to address the deficiencies
identified in this report and to determine the allowability of costs OIG
is questioning.
Based on PRM’s response to a draft of this report, OIG
considers all eight recommendations resolved, pending further action.
- A
synopsis of PRM’s comments to the recommendation offered and OIG’s reply
follow each recommendation in the Audit Results section of this report.
- PRM’s response to a draft of this report is reprinted in its entirety
in Appendix B.
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