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B-159652 1 (1971-08-17)

handle is hein.gao/gaobaafgj0001 and id is 1 raw text is: UNITED STATES GENERAL ACONI OFFC WASHINGTON. D.C. 2 INTERNATIONAL DIVISION B-159652 AUG 17 LM095543 Dear Dr. Hannah: During a recent follow-up review concerningLcosts of transporting food donated for distribution abroad)I we observed several matters which, we believe, deserve your consideration. We have found that the United States continues to pay considerable amounts of ocean freight costs under nonprofit agency food donation programs for recipient countries which appear to be financially able to bear all or part of such costs. Also we have found no evidence that the Agency for International Development (AID) has developed criteria to 7? evaluate the financial capability of recipient countries to bear part or all of such costs, and no documentation is available to show that periodic efforts have been made to have recipient countries bear some or all of the shipping costs. In response to a prior General Accounting Office (GAO) report, AID advised us of positive steps that it was taking to persuade financially capable recipient countries to absorb ocean transportation costs, to make these efforts on a continuing basis, and to document efforts made. We believe that significant progress has been made under Government-to- Government donation programs but that a further effort now is needed under the nonprofit agency programs. These matters are discussed in more detail below. BACKGROUND In April 1967 GAO reported to the Congress on the potential savings that could be realized by AIDts making efforts to obtain contributions toward shipping costs from recipient countries for donated food dis- tributed abroad under nonprofit distributing agency programs.1 lPotential Savings in Costs of Transporting Food Donated for Distribution Abroad (B-159652, April 28, 1967). BEST DOCUMENT AVAILA BLE3LE 50TH ANNIVERSARY 1921-1971 X

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