The United Nations (U.N.) Office for Project Services (UNOPS) provides numerous services for its clients, including procurement and project management. Recent audits and investigations of UNOPS have revealed alleged violations of law, weak internal controls, and financial mismanagement. UNOPS officials misused some of the more than $400 million awarded to UNOPS by the U.S. Agency for International Development (USAID) from 2004 through 2008. This report: (1) assessed the extent to which UNOPS has addressed key concerns about its internal controls; and (2) evaluated USAID's oversight of UNOPS-implemented projects. To address these objectives, the report reviewed UNOPS and USAID policies and grant documentation. Illus.