ATTACHMENT 5 - Costs Representation Statement SOW

Speeches Shim


1. Audit of the Cost Representation Statement of USAID Resources Managed by xx, “xx,” Under xx Number xx for the Period from xx to xx

[ Insert the audit title per the audit notification letter]


[Insert a brief background on the project subject to Audit, The background should include a brief description of the nature and activities under the program, the estimated amount of expenditures incurred during the period under audit under the federal share and the non-federal share, if any, the nature of the expenditures (salaries/personnel, program, travel, procurement, etc.)]


The objective of this engagement is to audit the locally incurred costs of the contractor/sub-contractor under the above mentioned contract(s)/sub-contract(s).

Locally incurred costs include; (1) costs incurred and paid locally, (2) costs incurred locally and paid in the U.S. if material (the audit firm is responsible for defining the materiality threshold). Locally incurred costs do not include expatriate costs (such as salaries and allowances) paid in the U.S.

The auditors must evaluate and obtain a sufficient understanding of the contractor’s internal controls related to the contract agreements, assess control risk, and identify reportable conditions, including material internal control weaknesses. The auditors must perform tests to determine whether the contractor complied, in all material respects, with contract terms and applicable laws and regulations related to USAID-funded programs that have a direct and material effect on contractor’s cost representations.

Issuing Country 
Tuesday, May 16, 2017 - 2:15pm