AID Management

Effort To Improve Cash Management and the Payment Process at AID Gao ID: NSIAD-86-36 January 16, 1986

GAO reviewed the Agency for International Development's (AID) efforts to improve management procedures relating to cash management and the payment process.

GAO found that AID has made progress in improving cash management practices for certain programs and activities, including the Commodity Import Program (CIP), the Egyptian decentralization program, and advances to contractors and grantees. GAO believes that AID can further improve its decentralization program disbursements and overseas cash-advance management by: (1) avoiding premature disbursement of funds for the decentralization program; and (2) ensuring that cash advances are limited to those needed to cover immediate disbursement needs. GAO also found that: (1) when AID uses bank letters to reimburse contractors and grantees for carrying out agency programs and activities, agency officials do not have the opportunity to review vouchers and supporting documents before the bank pays the recipients; and (2) the AID headquarters policy guidance recognizes the agency's increased vulnerability to making improper payments through bank letters and discourages use of this financing procedure.

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.

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