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USAID OIG has issued their Top Management Challenges Annual Report which reviews FY24 audit findings and recommendations in identifying challenges to be addressed in FY 25.

Challenges:

  • Measuring effectiveness, tracking results, and improving sustainability of U.S. Foreign Assistance
    • What to expect:
      • Greater coordination of third-party monitoring and sharing lessons learned
      • Continued efforts to facilitate moving from short-term humanitarian to long-term development assistance
      • Continued prioritization of preventing sexual exploitation and abuse as well as countering trafficking in persons
      • Tightened oversight of subcontractor/subawardee indirect cost rates
      • Tightened oversight of implementers’ currency exchange transactions
  • Relying on the UN and other PIOs to distribute U.S.-funded aid in unstable or inaccessible environments
    • What to expect:
      • PIOs will provide same level of access to same level of information that USAID receives from NGOs and development contractors
      • PIOs providing timely disclosure to OIG, as expected from other implementers
  • Hiring and retaining skilled staff and adapting programming to address emerging priorities
    • What to expect:
      • Staffing based on more strategic workforce planning
    • What not to expect:
      • OIG calls out the constraints imposed by Congressional Earmarks on USAID program flexibility. This is a long-standing issue that is part of the underlying “laws of physics” inside the Beltway in which Congress will not relinquish any oversight controls on their budget and the Administration.

Read the details here.