9-521-22-014-R : Audit financier du projet Building a Strong Environment to End Human Trafficking en Haïti, géré par Lumos Foundation, mai 2019 à décembre 2020

MEMORANDUM DATE: February 10, 2022 TO: USAID/Haiti Mission Director, Christopher Cushing FROM: USAID OIG Latin America and Caribbean (LAC) Regional Office, Senior Auditor, John Vernon /s/ SUBJECT: Financial Audit of the Building a Strong Environment to End Human Trafficking Project in Haiti, Managed by Lumos Foundation, Cooperative Agreement 72052119CA00003, May 9, 2019, to December 31, 2020 (9-521-22-014-R) This memorandum transmits the final audit report on the Building a Strong Environment to End Human Trafficking Project in Haiti. Lumos Foundation contracted with the independent certified public accounting firm Firme Turnier to conduct the audit. The audit firm stated that it performed its audit in accordance with generally accepted government auditing standards and USAID Financial Audit Guide for Foreign Organizations. However, it did not have a continuing education program that fully complied with GAGAS requirements or an external peer review because such program is not offered in Haiti. The audit firm is responsible for the enclosed report and the conclusions expressed in it. We do not express an opinion on Lumos Foundation’s fund accountability statement; the effectiveness of its internal control; or its compliance with the award, laws, and regulations. 1 The audit objectives were to (1) express an opinion on whether the fund accountability statement for the period audited, was presented fairly, in all material respects; (2) evaluate Lumos Foundation’s internal controls; (3) determine whether Lumos Foundation complied with award terms and applicable laws and regulations; and (4) determine if cost-sharing contributions were made and accounted for by Lumos Foundation in accordance with the terms of the agreement. To answer the audit objectives, the audit firm reported that they assessed and tested the internal controls related to the project; assessed and tested compliance with applicable 1 We reviewed the audit firm’s report for conformity with professional reporting standards. Our desk reviews are typically performed to identify any items needing clarification or issues requiring management attention. Desk reviews are limited to review of the audit report itself and excludes review of the auditor’s supporting working papers; they are not designed to enable us to directly evaluate the quality of the audit performed. USAID Office of Inspector General San Salvador, El Salvador oig.usaid.gov laws, regulations, the agreement’s provisions; and reviewed project expenditures. The audit covered $1,513,044 of USAID expenditures for the audited period. The audit firm concluded the fund accountability statement presented fairly, in all material respects, program revenues and costs incurred under the award for the period audited. The audit firm did not identify any material weaknesses in internal control or instances of material noncompliance with applicable laws, regulations, and agreement terms. The audit firm stated that based on their review, nothing came to their attention that caused them to believe that Lumos Foundation did not fairly present the cost sharing contributions schedule, in all material respects, in accordance with the basis of accounting used to prepare the cost sharing contributions schedule. During our desk review, we noted several issues which the audit firm should consider when preparing future audit reports. We presented these issues in a memo to the controller, dated February 10, 2022. Based on the results of the desk review, OIG is not making any recommendation to USAID/Haiti. OIG does not routinely distribute independent public accounting reports beyond the immediate addressees because a high percentage of these reports contain information restricted from release under the Trade Secrets Act, 18 U.S.C. 1905 and Freedom of Information Act Exemption Four, 5 U.S.C. 552(b)(4)(“commercial or financial information obtained from a person that is privileged or confidential"). USAID Office of Inspector General 2