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B-173240 1 (1973-04-06)

handle is hein.gao/gaobaaggf0001 and id is 1 raw text is:                                C2e(b4-1f


     D S                                                    73     /~~

                     UNITED STATES GENERAL ACCOUNTING OFFICE
                               WASHINGTON, D.C. 20548

INTERNATIONAL. DIVISION                             APR   6 1973






        The Honorable John A. Hannah
        Administrator, Agency for
          International Development

        Dear Dr. Hannah:

             This letter provides the results of our study and our recom-
        mendations relating to a tjLans       h   ,es nqto .e.ttI@,.egal
                         ae validfde    obl~g 14$ ando  _igaj i4,Q o,funds. The
        transaction consisted of deobligating in August-1972 from the popula-
        tion accounts $10 million of prior-year supporting assistancqus,
        which had been used under the earmarking provision of Title X of the
        Foreign Assistance Act, and simultaneously obligating for the same
        proj ectsIU million of current-year population funds.

             Over a period of four fiscal years - 1968 through 1971 - AID
        obligated almost all of the $260 million earmarked for population
        assistance only, by Title X of the Foreign Assistance Act. Pursuant
        to Title X, these obligations were funded from available appropria-
        tions, such as Development Loans, Technical Assistance, and Supporting
        Assistance.

             Beginning in fiscal year 1972, a separate line item appropriation
        for the population program was made available and the use of other
        appropriations for population activities was discontinued.

             Nevertheless, in mid-1972, many of the obligations recorded in
        1971 and earlier years for population activities remained in AIDts
        accounts as unliquidated obligations because the related activities
        had not then been completed.

             Also, in r-ld 1972, AID wanted to augment its fund availabilities
        for the supporting assistance program. To accomplish this, in August
        1972 AID recorded in its population accounts a deobligation of $10
        million of fiscal year 1971 and earlier years supporting assistance
        funds and simultaneously recorded for the same projects an obligation
        of $10 million of fiscal year 1973 population funds.





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