Regular readers of the NGO Financial Newsletter know that USAID has been relying heavily on Public International Organizations (PIOs) such as WHO, UNICEF, and World Bank to implement its programs. This is not new. USAID funding and in-kind contributions to PIOs have increased 282% from FY 2019 to $21.4 billion in FY 2022. Yet these awards are not subject to the same close oversight as contractors, grants, and cooperative agreements.
A recent USAID OIG audit report found that USAID did not conduct timely Organizational Capacity Reviews (OCRs) for 70% of the sampled PIOs. These OCRs should be updated at least every 5 years. The audit also found that USAID did not systematically track OCR recommendations to closure. The auditors also found that USAID did not conduct post-award spot checks.
The report recommended the development of guidance to ensure spot checks are part of USAID’s procedures in monitoring PIOs.
