The audit concluded that the Peace Corps’ financial statements were fairly presented, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP), and noted two significant deficiencies in the agency’s internal control over financial reporting, as well as one instance of reportable noncompliance related to provisions of applicable laws, regulations, contracts, and grant agreements.

Established in February 1989, the Peace Corps Office of Inspector General (OIG) receivesits legal authority from the Inspector General Act of 1978, as amended (IG Act). The IG Actestablishes OIG as an independent entity within the Peace Corps. The law requires that the Inspector General keep the Peace Corps Director and the Congress fully and currently informed about problems and deficiencies relating to the administration of agency programsand operations. OIG is authorized by law to review all Peace Corps programs andoperations.OIG’s role is to:           • Promote integrity, efficiency, effectiveness, and economy.           • Prevent and detect waste, fraud, abuse, and mismanagement; and           • Identify risk and vulnerabilities and offer expert assistance to improve the PeaceCorps’ programs and operations. OIG accomplishes its mission through audits, evaluations, investigations, and other reviews. OIG’s work typically examines the agency’s financial stewardship, and compliance with Federal law, regulations, and agency policy.

OIG conducted an evaluation of the Volunteer Delivery System to assess the challenges Peace Corps has recently faced in recruiting, selecting, and placing Volunteers. To perform this evaluation, OIG reviewed the agency’s strategic planning and performance documents, recruiting and hiring data, and documentation related to various recruiting strategies. OIG also conducted in-person and virtual interviews with headquarters-based and regional recruitment staff. The evaluation also included an overseas staff survey and a review of relevant documentation. The report contains seven recommendations along with a summary of the effectiveness of Peace Corps’ recruitment strategies and approaches.