AID Needs To Strengthen Management of Commodity Import Programs

GAO evaluated the extent of the Agency for International Development's (AID) program and financial controls over the Commodity Import Program.

GAO found that AID has not always adequately planned procurements or commodity deliveries. In some instances, commodities arrive too late and at increased cost. Although regulations prescribe that AID-financed commodities must meet eligibility and price requirements, AID has not always used adequate internal controls to ensure compliance, and insufficient reviews of commodity transactions have contributed to waste and improper expenditures that could amount to millions of dollars annually. In addition, GAO found that AID does not adequately monitor the implementation of commodity import programs and local currency generation and use. AID missions have not conducted or documented required evaluations of the host-government commodity arrival accounting systems nor systematically followed up on the distribution and end-use of commodities. As a result, AID cannot adequately account for the arrival and disposition of commodities. This occurs because missions do not have sufficient staff and guidance for monitoring program implementation. Furthermore, GAO found that AID missions are not effectively monitoring the proceeds from commodity sales. Finally, despite a legislative mandate to improve the assessment of its programs, AID has not developed procedures for evaluation of the program which would provide information to design future programs.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Joseph E. Kelley Team: General Accounting Office: National Security and International Affairs Division Phone: (202) 512-4128