Foreign Assistance

Pursuant to a congressional request, GAO provided information concerning the Agency for International Development's (AID) pipeline of obligated but unexpended funds, as of September 30, 1990, focusing on: (1) how much funding was in the overall AID pipeline; (2) how much was in the pipelines of selected countries; and (3) how long the funds had been in the pipeline and their legal status.

GAO found that: (1) as of September 30, 1990, the obligated but unspent funds in the AID pipeline amounted to $8.8 billion, which was approximately $266 million more than the amount of the AID pipeline at the end of fiscal year (FY) 1989; (2) of the 12 countries with the largest pipelines at the end of FY 1990, the three largest were Egypt with $2.04 billion, Pakistan with $757 million, and the Philippinnes with $433 million; (3) compared to FY 1989, funds for Egypt declined substantially, funds for Pakistan increased, and funds for the Philippines remained about the same; and (4) although existing legislation required AID to cancel the over $200 million that was obligated in FY 1983 or earlier by March 6, 1991, a presidential determination waived the AID requirement to do so through September 30, 1992. GAO also found that AID planned to: (1) review all obligations for projects that are 9 months beyond the completion of activities and deobligate funds that cannot be justified; (2) annually identify projects with excess pipelines, review the justifications for any excess funds identified, and take steps to deobligate amounts that are not consistent with AID guidance; and (3) include a standard provision in project and program agreements allowing for unilateral deobligation of assistance funds, based on specified conditions.