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B-173240 1 (1972-10-13)

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WASHINGTON. D.C. 20548


                                                         OCT 13 1972
     B-173240



     The Honorable Daniel K. Inouye
     Chairman, Foreign Operations Subcommittee
(A   Committee on Appropriations
     United States Senate

     Dear Mr. Chairman:

          This report covers our review of dollar obligations incurred by
     the Agency for International Development (AID) for population and
     family planning assistance programs during the final quarter of fiscal
     year 1972. 1Our Ie tters to you, dated April 21 and May 26, 1972, gave
     the results of our reviews of obligations for the first three quarters
     of fiscal year 1972.

          We directed our work toward ascertaining whether AID obligated
     dollars to finance population program costs when U.S.-owned local
     currencies could have been used. Our review was made at AID's
     headquarters at Washington, D.C., and was limited to obligations for
     population programs in the 10 countries designated as excess-currency
     countries by the Department of the Treasury. (See our April 21, 1972,
     letter.)

          These reviews relate to the Senate Committee on Appropriations
     January 25, 1972, report entitled Foreign Assistance and Related
     Programs Appropriation Bill, 1972.   In the report the Committee
     directed that, without exception, excess foreign currencies be used
     to the maximum extent they are available to carry out U.S. programs
     to reduce population pressures.

     AID DOLLAR OBLIGATIONS DURING THE
     FINAL QUARTER OF FISCAL YEAR 1972

          From April 1 through June 30, 1972, AID obligated $93.5 million for
     population programs, raising the total population program obligations for
     fiscal year 1972 to $123.3 million. Our review of the $93.5 million obli-
     gations showed that $5.1 million was for programs in five excess-currency






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