Report on Audit of the Inter-American Foundation’s Financial Statements for Fiscal Years 2004 and 2003

Oig/A/Fa

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• Publié par: Onfo
• Nombre de lectures: 23
• Langue: English

Extrait

Report on Audit of the Inter-American Foundation’s
Financial Statements for Fiscal Years
2004 and 2003

Audit Report No. 0-IAF-05-002-C

November 15, 2004
Washington, D.C.


November 15, 2004

MEMORANDUM

FOR: Inter-American Foundation President, David Valenzuela

FROM: AIG/A, Bruce N. Crandlemire

Report on Audit of the Inter-American Foundation’s Financial Statements for Fiscal SUBJECT:
Years 2004 and 2003 (0-IAF-05-002-C)

Enclosed is the final report on the subject audit. We contracted with the independent certified public
accounting firm of Gardiner, Kamya & Associates, P.C. (GKA) to audit the financial statements of the
Inter-American Foundation as of September 30, 2004 and 2003 and for the years then ended. The
contract required that the audit be performed in accordance with generally accepted government
auditing standards; generally accepted auditing standards; Office of Management and Budget (OMB)
Bulletin 01-02, Audit Requirements for Federal Financial Statements; and the General Accounting
Office/President’s Council on Integrity and Efficiency Financial Audit Manual.

In its audit of the Inter-American Foundation (IAF), Gardiner, Kamya & Associates found;

• the financial statements were fairly presented, in all material respects, in conformity with U.S.
generally accepted accounting principles,

• IAF had effective internal control over financial reporting (including safeguarding assets) and
compliance with laws and regulations,

• IAF’s financial management systems substantially complied with the requirements of the Federal
Financial Management Improvement Act of 1996 (FFMIA), and

• no reportable noncompliance with laws and regulations it tested.

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In connection with the audit contract, we reviewed GKA’s report and related documentation. Our
review, as differentiated from an audit in accordance with U.S. generally accepted government
auditing standards, was not intended to enable us to express, and we do not express, opinions on
IAF’s financial statements or internal control or on whether IAF’s financial management systems
substantially complied with FFMIA; or conclusions on compliance with laws and regulations.
GKA is responsible for the attached auditor's report dated October 22, 2004 and the conclusions
expressed in it. However, our review disclosed no instances where GKA did not comply, in all
material respects, with applicable standards.

The report does not contain recommendations and IAF has elected to not formally comment on the
report.

The OIG appreciates the cooperation and courtesies extended to our staff and to the staff of GKA
during the audit. If you have questions concerning this report, please contact Andrew Katsaros at
[phone].
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INTER-AMERICAN FOUNDATION

(IAF)














FINANCIAL STATEMENTS

SEPTEMBER 30, 2004 and 2003


and


INDEPENDENT AUDITOR’S REPORT THEREON

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INTER-AMERICAN FOUNDATION (IAF)

TABLE OF CONTENTS



Page No.


Management’s Discussion and Analysis (Overview) 8


Independent Auditor's Report on Financial Statements 28


Balance Sheet 29


Statement of Net Cost 30


Statement of Changes in Net Position 31


Statement of Budgetary Resources 32


Statement of Financing 34


Notes to Financial Statements 36


Independent Auditor's Report on Internal Control 51


Independent Auditor's Report on Compliance with Laws and Regulations 53

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Inter-American Foundation

Message from the President

The Inter-American Foundation (IAF), an independent foreign assistance agency of the United
States government, provides grants to grassroots organizations in Latin America and the Caribbean.
Created in 1969 as an experimental program, the IAF responds to innovative, participatory and
sustainable self-help development projects proposed by grassroots groups and organizations that
support them. It also encourages partnerships among community organizations, businesses and local
governments directed at improving the quality of life for poor people and strengthening democratic
practices. To contribute to a better understanding of the development process, the IAF shares its
experiences and the lessons it has learned.

The Inter-American Foundation is governed by a nine-person board of directors appointed by the
president of the United States and confirmed by the U.S. Senate. Six members are drawn from
the private sector and three from the federal government. The board is assisted by an advisory
council. A president, appointed by the board, serves as the Inter-American Foundation’s chief
executive officer, managing a staff of 47 employees based in Arlington, Virginia. The IAF is
organized into four offices; Executive, which houses the Office of the President and General
Counsel; External Affairs; Operations, which houses Evaluation, Financial Management,
General Services, Human Resources and Information Management; and the Program Office.

I would like to review the state of the Inter-American Foundation and the unique contribution we
make in advancing the values and long-term foreign policy objectives of the United States in its
relationship with Latin America and the Caribbean.

I begin with the Congressional Declaration of Purpose for the IAF contained in its enabling
legislation dated December 30, 1969.

“The future of freedom, security, and economic development in the Western Hemisphere rests on
the realization that man is the foundation of all human progress. It is the purpose of this section
to provide support for development activities designed to achieve conditions in the Western
Hemisphere under which the dignity and the worth of each human person will be respected and
under which all men will be afforded the opportunity to develop their potential, to seek through
gainful and productive work the fulfillment of their aspirations for a better life, and to live in
justice and peace. To this end, it shall be the purpose of the Foundation, primarily in
cooperation with private, regional, and international organizations, to:







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• Strengthen the bonds of friendship and understanding among the peoples of this
hemisphere.

• Support self-help efforts designed to enlarge the opportunities for individual
development.

• Stimulate and assist effective and ever wider participation of the people in the
development process.

• Encourage the establishment and growth of democratic institutions, private and
governmental, appropriate to the requirements of the individual sovereign nations of this
hemisphere.”


Friendship, understanding, self-help, participation, and democracy are what make the IAF a value
driven organization espousing the core of what makes the United States a unique nation. In this
manner, the IAF has played and continues to play a critically important role in helping Latin
America and the Caribbean achieve justice and peace by encouraging its people and institutions to
build democratic practice and to engage in the practice of community self-help. The IAF was
charged with helping advance human progress in Latin America and the Caribbean by drawing on
the experience and values that made the United States a beacon of prosperity and democracy for the
world. In understanding the role of the IAF, it is important to keep perspective of the larger purpose
that the IAF plays in development assistance, lending support to a proven path based on the will and
determination of people at the grassroots to make a better life for themselves and future generations.
The IAF’s approach to development, from the bottom up, is now recognized widely by other
development practitioners, such as the World Bank, the United Nations Development Program
(UNDP), USAID, and others.

The IAF, in pursuit of its mission, is clearly recognized as a leader in three strategically important
areas: 1) demonstrating the relationship between grassroots self-help activities and strengthening
democratic practice and local governance; 2) building bridges to the private sector and engaging its
talents and reso