Answers to Frequently Asked Questions on the USAID/WBG PCA Program

1. Who should notify USAID/WBG of the date, time and place of the entrance conference and exit conference, the partner or the audit firm?

Answer: This is left to the partner and the audit firm to agree on as long as one of them timely notifies the USAID/WBG. Nonetheless, the USAID/WBG prefers that the audit firm notifies it because it is the audit firm’s responsibility to schedule and hold these meetings, and because the audit firms are well experienced with the process and are in the habit of regularly doing this.

2. Per USAID WBG Partner Audit Guidelines, in most cases locally incurred costs are subject to an audit. Does this mean that the overhead costs are not subject to audit?

Answer: For U.S. recipients, if records are accessible locally, the auditors should determine if the recipient correctly applied the USAID authorized indirect cost rates to charge indirect costs to USAID for the period audited. Please see the scopes of work for the audit of the funds accountability statement and the cost representation statement for greater details on the auditors’ scope in this regard. Generally, The audit firms will check and verify whether the correct overhead rate (NICRA) is being applied (i.e., arithmetical calculation to verify accuracy of amount). The audit firms will not audit overhead costs to determine the overhead costs or NICRA rate which is done in the U.S. through OMB A-133 audits or special NICRA audits.

USAID/WBG does not provide for overhead rates or NICRA to local partners.