USAID's Afghanistan Engineering Support Program (AESP): Audit of Costs Incurred by Tetra Tech EM Inc.

On November 9, 2009, the U.S. Agency for International Development (USAID) awarded a cost-plus-fixed-fee. 5-year task order for $62,984,016 to Tetra Tech EM Inc. (Tetra Tech) to implement the Afghanistan Engineering Support Program (AESP). The program provides the USAID Mission for Afghanistan's Office of Infrastructure, Engineering, and Energy with engineering support to help build safe, long-lasting, and energy-efficient facilities in Afghanistan. The agency modified the task order 25 times, increasing the total cost to $97 million and extending the period of performance to November 8. 2016. SIGAR's financial audit. performed by Gastro and Company LLC (Castro). reviewed $25,079,922 in expenditures and fixed fees charged to the task order from November 9. 2015. through November 8, 2016. The objectives of the audit were to (1) identify and report on material weaknesses or significant deficiencies in Tetra Tech's internal controls related to the task order; (2) identify and report on instances of material noncompliance with the terms of the task order and applicable laws and regulations, including any Potential fraud or abuse; (3) determine and report on whether Tetra Tech has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of Tetra Tech's Special Purpose Financial Statement (SPFS). See Castro's report for the precise audit objectives. In contracting with an independent audit firm and drawing from the results of the audit. SIGAR is required by auditing standards to review the audit work performed. Accordingly, SIGAR oversaw the audit and reviewed its results. Our review disclosed no instances where Castro did not comply, in all material respects, with U.S. generally accepted government auditing standards.