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Management Assistance Report—Termination of Construction Grants to Omran Holding Group

AUD-CG-14-37
    Report Contents
    Unclassified
    Recommendation Number
    1
    Closed Implemented $5,092,874 Significant

    OIG recommends that the Bureau of South and Central Asian Affairs immediately terminate grant agreements S-AF200-13-CA-012 and S-AF200-13-CA-014 with Omran Holding Group and deobligate the $5,092,874 in remaining funds.

    Recommendation Number
    2
    Closed Implemented $1,203,426 Significant

    OIG recommends that the Bureau of South and Central Asian Affairs direct Omran Holding Group to reimburse the Department for the $1,203,426 in unspent funds related to grant agreements S-AF200-13-CA-012 and S-AF200-13-CA-014, and verify that the Department has received reimbursement for all unspent funds.

    Recommendation Number
    3
    Closed Not Implemented $502,890 Significant

    OIG recommends that the Bureau of South and Central Asian Affairs require the grants officer to determine the allowability of $502,890 in potentially unallowable costs identified by OIG, direct Omran Holding Group to refund the Department any costs determined to be unallowable, and verify that funds have been refunded.

    Recommendation Number
    4
    Closed Implemented

    OIG recommends that the Bureau of South and Central Asian Affairs require Omran Holding Group to demolish the existing structure at Balkh University, at Omran Holding Group’s expense, within a reasonable timeframe as determined by the grants officer and verify that the structure has been demolished with no cost to the Department.

    Recommendation Number
    5
    Closed Implemented Significant

    OIG recommends that the Bureau of Administration, Office of the Procurement Executive, develop Department guidance regarding the use of Federal assistance funds for overseas construction, including the use of appropriate procurement vehicles, such as contracts, for construction. Until such guidance is developed, no construction grants should be issued by the Department.