Audit of USAID West Bank and Gaza’s Assistance to Al-Quds University , the Islamic University in
Description
OFFICE OF INSPECTOR GENERAL AUDIT OF USAID/WEST BANK AND GAZA’S ASSISTANCE TO AL-QUDS UNIVERSITY, THE ISLAMIC UNIVERSITY IN GAZA, AND AMERICAN NEAR EAST REFUGEE AID AUDIT REPORT NO. 6-294-08-002-P DECEMBER 10, 2007 CAIRO, EGYPT Office of Inspector General December 10, 2007 MEMORANDUM TO: USAID/West Bank and Gaza Director, Howard Sumka FROM: Regional Inspector General/Cairo, Lloyd J. Miller /s/ SUBJECT: Audit of USAID/West Bank and Gaza’s Assistance to Al-Quds University, the Islamic University in Gaza, and American Near East Refugee Aid (Report No. 6-294-08-002-P) This memorandum transmits our final report on the subject audit. In finalizing the report, we considered your comments on our draft report and have incorporated them where appropriate. We have included your comments in their entirety as appendix II. This report does not include any recommendations to USAID/West Bank and Gaza. Thank you for the cooperation and courtesy extended to the audit team during this audit. CONTENTS Summary of Results ....................................................................................................... 1 Background ..................................................................................................................... 3 Audit Objective ............................................................................................................ 6 Audit Findings.. ...
Informations
| Publié par | Kunum |
| Nombre de lectures | 44 |
| Langue | English |
Extrait
OFFICE OF INSPECTOR GENERAL AUDIT OF USAID/WEST BANK AND GAZA’S ASSISTANCE TO AL-QUDS UNIVERSITY, THE ISLAMIC UNIVERSITY IN GAZA, AND AMERICAN NEAR EAST EFUGEE A R ID AUDIT REPORT NO. 6-294-08-002-P DECEMBER 10, 2007 CAIRO, EGYPT
Office of Inspector General December 10, 2007 MEMORANDUM TO:USAID/West Bank and Gaza Director, Howard Sumka FROM:Regional Inspector General/Cairo, Lloyd J. Miller /s/ SUBJECT: Audit of USAID/West Bank and Gaza’s Assistance to Al-Quds University, the Islamic University in Gaza, and American Near East Refugee Aid (Report No. 6-294-08-002-P) This memorandum transmits our final report on the subject audit. In finalizing the report, we considered your comments on our draft report and have incorporated them where appropriate. We have included your comments in their entirety as appendix II. This report does not include any recommendations to USAID/West Bank and Gaza. Thank you for the cooperation and courtesy extended to the audit team during this audit.
CONTENTS Summary of Results....................................................................................................... 1 Background..................................................................................................................... 3 Audit Objective ............................................................................................................ 6 Audit Findings................................................................................................................. 7 Has USAID/West Bank and Gaza provided U.S. assistance to Al-Quds University, the Islamic University in Gaza, and American Near East Refugee Aid in accordance with applicable Federal laws, Executive Order 13224, and USAID policies? Subawardees Were Not Always Vetted ...................................................................... 9 Antiterrorism Certifications Were Not Always Obtained ............................................ 12 Required Clauses Were Not Always Included in Awards and Subawards................ 14 Review of Six Statements Reported in theWashington Times................................. 16 Evaluation of Management Comments....................................................................... 20 Appendix IScope and Methodology......................................................................... 21 Appendix IIManagement Comments........................................................................ 25 Appendix IIIList of Subawards for Al-Quds University.......................................... 29 Appendix IVList of Subawards for Islamic University In Gaza.............................. 31 Appendix VList of Awards and Subawards for American Near East Refugee Aid...................................................... 33
SUMMARY OF RESULTS The Regional Inspector General in Cairo, Egypt, conducted this audit in response to congressional and USAID concerns that funds were being provided to organizations that support terrorism, as reported in a March 5, 2007,Washington Times article entitled “School Linked to Hamas Gets U.S. Cash (see page 3). The article referenced Al-Quds University, the Islamic University in Gaza, and American Near East Refugee Aid, stating, in part: Millions of dollars in U.S. foreign aid have been given in the past several years to two Palestinian universities -- one of them controlled by Hamas --that have participated in the advocacy, support or glorification of terrorism. The funding -- principally in scholarships to individual students -- is being eyed by several members of Congress and their aides, who say it may violate U.S. law. The audit’s purpose was to determine whether USAID’s mission to West Bank Gaza (USAID/West Bank and Gaza) provided U.S. assistance to Al-Quds University, the Islamic University in Gaza, and American Near East Refugee Aid in accordance with applicable Federal laws, Executive Order 13224, and USAID policies (see page 6). Since 2002, USAID/West Bank and Gaza has provided the following assistance: • Al-Quds University13 subawards for approximately $3 million. •University in Gaza16 subawards for approximately $900,000. Islamic • American Near East Refugee Aid10 awards (5 prime awards and 5 subawards) for approximately $27 million (see pages 4 and 5). Since fiscal year 2003, congressional appropriation acts have required the Secretary of State to take all appropriate steps to ensure that, within the West Bank and Gaza, U.S. assistance is not provided to or through any individual, private or government entity, or educational institution that the Secretary knows or has reason to believe advocates, plans, sponsors, engages in, or has engaged in, terrorist activity. In addition to the legislative requirements, President Bush issued Executive Order 13224 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism, which became effective on September 24, 2001. The Executive order prohibited transactions with, and provision of support for, individuals or entities listed in or subject to the directive (see page 3). The audit determined that USAID/West Bank and Gaza did not always follow applicable Federal laws, regulations, or USAID policies when providing assistance to Al-Quds University, the Islamic University in Gaza, and American Near East Refugee Aid. However, 21 of 23 cases of noncompliance that we identified took place between 2003 and 2005, prior to the implementation of current USAID policies that address these issues. Our determinations were based upon the three mechanisms the mission used to implement the law: (1) vetting of organizations and individuals, (2) certifications from organizations that they will not provide support for terrorism, and (3) required clauses in contracts, grants, and cooperative agreements (see page 7). Specifically, our review found that:
1
• Vetting was not conducted in 2 of 17 required instances (2003); • Certifications were not obtained in 3 of 14 required instances (2003 and 2004); •for terrorism clause was not included in 16 of 35 “prohibition against support The applicable agreements (2003, 2004, and 2005); and • “restriction on naming facility clause was not included in 2 of 9 applicable The agreements (2006) (see page 7). USAID/West Bank and Gaza did not vet American Near East Refugee Aid because it is a U.S.-based organization. For the time periods covered by this audit, USAID did not vet U.S.-based organizations. Since 2002, USAID/West Bank and Gaza have arranged to have Al-Quds University vetted seven times and Islamic University in Gaza vetted eight times. The vetting did not reveal information that would preclude the awards from proceeding (see page 5). The audit also reviewed six specific statements in the March 5, 2007, edition of the Washington Timesarticle concerning Al-Quds University, the Islamic University in Gaza, and American Near East refugee Aid. The audit results are explained in detail beginning on page 16. Concurrent with this audit, we also conducted an audit of USAID/West Bank and Gaza’s implementation of Executive Order 13224Blocking Property And Prohibiting Transactions With Persons Who Commit, Threaten To Commit Or Support Terrorism.1 We made three recommendations in that report: • Bank and Gaza should establish procedures to ensure compliance USAID/West with existing policy that all subawardees are vetted. • Bank and Gaza should establish procedures to ensure compliance USAID/West with existing policy that contractors and subcontractors are vetted if they receive contracts or subcontracts over any 12-month period that cumulatively total more than $25,000. • In addition to the controls for vetting, the mission should also clarify how antiterrorism provisions apply to assistance-related purchase orders. As stated earlier, we determined that USAID/West Bank and Gaza did not always follow applicable Federal laws, regulations, or USAID policies when providing assistance to Al-Quds University, the Islamic University in Gaza, and American Near East Refugee Aid. However, we are not making any recommendations here because doing so would be duplicitous of the recommendations made in the audit of USAID/West Bank and Gaza’s implementation of Executive Order 13224. USAID/West Bank and Gaza accepted the factual findings of the draft report for this audit and has taken action, as noted in USAID OIG Audit Report No. 6-294-08-001-P, to improve monitoring and oversight of its awardees. USAID/West Bank and Gaza provided clarification on some report statements (see pages 20 and 25). 1 OIG Audit Report No. 6-294-08-001-P, “Audit Of USAID/West Bank and Gaza’s USAID Implementation Of Executive Order 13224⎯Blocking Property And Prohibiting Transactions With Persons Who Commit, Threaten to Commit, Or Support Terrorism.
2
BACKGROUND On March 5, 2007, theWashington Timesincluded an article entitled, “School Linked to Hamas Gets U.S. Cash. The first two sentences in the article stated: Millions of dollars in U.S. foreign aid have been given in the past several years to two Palestinian universities -- one of them controlled by Hamas -- that have participated in the advocacy, support or glorification of terrorism. The funding -- principally in scholarships to individual students -- is being eyed by several members of Congress and their aides, who say it may violate U.S. law. Section 559, paragraphs (b) and (c), of the fiscal year 2006 Foreign Operations Appropriations Act stated the following: (b) VETTING Prior to the obligation of funds appropriated by this Act under the heading “Economic Support Fund for assistance for the West Bank and Gaza, the Secretary of State shall take all appropriate steps to ensure that such assistance is not provided to or through any individual, private or government entity, or educational institution that the Secretary knows or has reason to believe advocates, plans, sponsors, engages in, or has engaged in, terrorist activity. The Secretary of State shall, as appropriate, establish procedures specifying the steps to be taken in carrying out this subsection and shall terminate assistance to any individual, entity, or educational institution which he has determined to be involved in or advocating terrorist activity. (c) PROHIBITION None of the funds appropriated by this Act for assistance under the West Bank and Gaza program may be made available for the purpose of recognizing or otherwise honoring individuals who commit, or have committed, acts of terrorism. Provisions similar to paragraph (b) have appeared in each foreign operations appropriations act since fiscal year 2003. Paragraph (c) was added in fiscal year 2005. Provisions similar to paragraphs (b) and (c) were included in the Palestinian Anti-Terrorism Act of 2006 (P.L. 109-446), extending the requirements through fiscal years 2007 and 2008. Following the events of September 11, 2001, the President Bush issued Executive Order 13224 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism, which became effective on September 24, 2001. Executive Order 13224 designated certain individuals and entities that commit or pose a significant risk of committing terrorist acts. The Executive order also authorized both the Secretary of State and the Secretary of Treasury to identify additional individuals and entities. The Executive order prohibited transactions with, and provision of support for, individuals or entities listed in or subject to the directive. Since the September 2001 Executive order, USAID/West Bank and Gaza has issued several notices to USAID contractors and grantees to implement mission policies and
3
procedures to comply with the order. Two of these notices were comprehensive and provided the principal guidance to USAID contractors and grantees. •Bank and Gaza issued its first comprehensive August 2003, USAID/West In policy for vetting, certifications, and clauses. • In March 2006, USAID/West Bank and Gaza issued Mission Order No. 21 establishing the most recent comprehensive requirements for vetting, certifications, and clauses. Mission Order No. 21 superseded the August 2003 mission guidance, providing updated criteria for when non-U.S. organizations and individuals were to be vetted for links to terrorism prior to the awarding of contracts, grants and cooperative agreements. The criteria to determine whether an organization required vetting included dollar thresholds for cumulative contracts, award types (contract, grant, cooperative agreement), and time since the organization was last vetted. For both prime awards and subawards, USAID/West Bank and Gaza primarily implemented this Executive order through three mechanisms: • Screening organizations and individuals to ensure that they are not Vetting: affiliated with terrorism. The vetting process begins when a non-U.S. awardee submits information to the mission about itself and its key individuals. The mission records this information in a database and forwards it to U.S. officials in the U.S. Embassy in Tel Aviv, Israel, who were responsible for the vetting. In January 2007, the USAID Office of Security assumed the responsibility for vetting all non-U.S.-based West Bank and Gaza awardees. • Certifications: Requiring organizations to certify that the organization does not provide material support or resources for terrorism before being awarded a grant or cooperative agreement by USAID. • Clauses: clauses Requiringin awards and subawards which (1) remind contractors and recipients that U.S. Executive orders and U.S. law prohibit transactions with, and the provision of resources and support to, individuals and organizations associated with terrorism and (2) restrict the naming of facilities in honor of individuals who commit, or have committed, acts of terrorism. In addition to the two Palestinian universities (Al-Quds University and the Islamic University in Gaza), the article cited an American nongovernmental organization, American Near East Refugee Aid, based in Washington, DC. USAID/West Bank and Gaza has provided the following assistance to each of the three organizations since 2002.2 • Al-Quds University (located in Jerusalem) received 13 subawards (from 7 different USAID prime recipients) for approximately $3 million, of which 10 were awarded prior to 2006.
2III, appendix IV, and appendix V for the lists of awards.See appendix
4
• Islamic University in Gaza received 16 subawards (from 8 different USAID prime recipients) for approximately $900,000, of which 14 were awarded prior to 2006. American Near East Refugee Aid received 10 awards (5 prime awards and • 5 subawards) for approximately $27 million.
Maps of West Bank and Gaza
During this time period, USAID/West Bank and Gaza arranged to have Al-Quds University vetted seven times (most recently in December 2006) and Islamic University in Gaza vetted eight times (most recently in February 2006). None of these vetting requests resulted in derogatory information. USAID/West Bank and Gaza did not arrange to vet American Near East Refugee Aid because it is a U.S.-based organization.
5
According to the mission, in cases where a prime awardee does not follow its responsibilities to ensure that vetting is done, certifications are collected, or mandatory clauses are included in subawards, the mission has several potential methods of recourse to ensure corrective action. The corrective action would depend on the facts and circumstances in each case and could include any of the following: • Suspension of assistance to the subawardee until corrective action is taken. • of assistance to the subawardee. Termination Refund of all or some of expended monies. • • Termination of the prime award. AUDIT OBJECTIVE We conducted this audit in response to congressional and USAID concerns that funds were being provided to organizations that support terrorism as reported in a March 5, 2007,Washington Times We conducted this audit to answer the following article. question: • Has USAID/West Bank and Gaza provided U.S. assistance to Al-Quds University, the Islamic University in Gaza, and American Near East Refugee Aid in accordance with applicable Federal laws, Executive Order 13224, and USAID policies? Appendix I contains a discussion of the audit’s scope and methodology.
6
AUDIT FINDINGS USAID/West Bank and Gaza did not always follow applicable Federal laws, Executive Order 13224, or USAID policies when providing assistance to Al-Quds University, the Islamic University in Gaza, and American Near East Refugee Aid. However, 21 of 23 cases of noncompliance that we identified took place between 2003 and 2005, prior to the implementation of current USAID policies that address these issues. Our determinations were based upon a review of the three mechanisms the mission used to implement the law for both prime awards and subawards: (1) “vetting or screening organizations and individuals, (2) requiring organizations to certify that the organization does not provide support for terrorism, and (3) including antiterrorism clauses in awards and subawards. Specifically, as discussed in detail in the following sections, our audit found that: • Vetting was not conducted in 2 of 17 required instances (2003); Certifications were not obtained in 3 of 14 required instances (2003 and 2004); • •for terrorism clause was not included in 16 of 35 The “prohibition against support applicable agreements (2003, 2004, and 2005); and • “restriction on naming facility clause was not included in 2 of 9 applicable The agreements (2006). In addition, we reviewed six statements regarding three organizations reported in the March 5, 2007, edition of theWashington Timesas follows. (1) “USAID has provided more than $140,000 in assistance to the Hamas-controlled Islamic University in Gaza. (2) USAID has provided more than $140,000 in assistance to the Hamas-controlled Islamic University in Gaza“including scholarships to 49 of its students. (3) “USAID continues to fund multimillion-dollar programs through American Near East Refugee Aid (ANERA), which is building a high-tech facility for the school. (4) “USAIDaid last year to Al-Quds University, which has also gave $2.3 million in student groups affiliated with designated terrorist organizations on campus and last month held a week-long celebration of the man credited with designing and building the first suicide belts more than a decade ago. (5)provided $12,000 worth of computers and materials to the school’s “It (USAID) (Islamic University in Gaza) library. (6) “Unlike other U.S. aid recipients, the scholarship students have not been required to sign pledges not to participate in terrorism.
7
Location of Al-Quds University in the West Bank
Al-Quds University
Concurrent with this audit, the Regional Inspector General/Cairo also audited USAID/West Bank and Gaza’s implementation of policies, procedures and controls to comply with Executive Order 13224 (No. 6-294-08-001-P). As part of that audit’s fieldwork, the team tested recent awards from two different samples covering more than just the three organizations. Based on the audit fieldwork examining recent time periods, we determined that the mission has currently implemented policies, procedures, and controls to comply with the Executive order. Our opinion was based on an evaluation of the mission’s (1) compliance with obtaining antiterrorism certifications from contractors and grantees, (2) compliance with the inclusion of mandatory antiterrorism clauses in contracts and grants, (3) the correction of vetting database deficiencies previously identified, and (4) compliance with required vetting of organizations and individuals. The concurrent audit made two recommendations to strengthen the effectiveness of mission controls to ensure that vetting is conducted. As a result, we did not include any recommendations to USAID/West Bank and Gaza within this audit report.
8
© 2010-2024 YouScribe