Review of Management Issues at the African Development Foundation

Pursuant to a congressional request, GAO provided information on management improvements at the African Development Foundation (ADF) focusing on: (1) the development of its operating budget; (2) the development of its strategic plans and performance measures; and (3) ADF's role in relation to other U.S. foreign assistance activities in Africa.

GAO noted that: (1) ADF has taken a number of actions to better its personnel and financial management systems and to improve its structure; (2) although its overhead rate increased in 1996 and 1997 because its program funding declined more rapidly than operating costs, its operating costs have diminished substantially; (3) ADF officials report that its operating budget is established based on amounts needed to meet its performance goals and objectives; (4) it is primarily composed of administrative costs at headquarters; (5) in addition, although they could be improved, ADF has developed strategic and performance plans to comply with the requirements of the 1993 Government Performance and Results Act; and (6) ADF has increased its efforts to collaborate with U.S. foreign assistance agencies and other organizations that provide development assistance to Africa.