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ID-78-15 1 (1978-02-14)

handle is hein.gao/gaobaawro0001 and id is 1 raw text is: DOCUMENT~ RESUME 05082 - (B065372J Improved fiagaement Yjeded over the Agency for International Development's Operating Costs. ID-78-15; B-13322G. February 14, 1978. 25 pp. + 2 appendices (6 pp.). Report to John J. Gilligan, Administrator, Agency ter International Development; by J. K. fasick, Director, International Div. Issue Area: International Economic afid Military Programs (600). Contact: Internaticual Div. Budget Function: International Afftire: Foreign Economic and Financial Assistance (151). Organization Concerned: DerartLent of State. CoDgressional Relevance: House Committee on International Relatioas; SeDate Comaittee on Foreign Relations. Authority: Foreign AsLoistamce Act of 1961, as amended (22 U.S.C. 2396). The Agncy Z r International Development's (AID's) operatiug expenses for administrative and cverhead ccsts have been of iacreasing concern to the Congress in recent years. AID's fli±cal year 1978 operating expense budget totaled $233.8 million. Findings/Conclusions: AIi)'s operating expense budgets are formulated withont adequate reviews of overseas missions6 budget requests. Washington offices respcnsible for revieving overseas operating expenses lack sufficient personnel and information to sako effective evaluaticns. Operating expense funds are sometimes used for questiunable or, in some cases, unauthorized purposes, often because of the failure ot AID officials to follow applicable policies. Deficiencies found in property management in Washington were: incomplete property records. failure to coxuduct physical inventories since June 30, 1374, and inadequate guidance to persinnel. Deficiencios found overseas were: incomplete records, failure to establish authorized type and quantities of property items, and failu:e to conduct utilization reviews to ascertain equipsent needs. Taese weaknesses could waste public fun4s through unnecessary procurement and misuse or loss of Government property. ZecommendAtions- The AID Administratcr shcald make certain that: heedquatters thoroughly and critically reviews and analyzes opdrativq expense 5udgets of AID's missions overseas before they are submitted to the Congrez, te regulations and procedures governing the expenditure of operating expense funds are fully complied with, and an effective management ant: control system is established and maintained over AID's property and equipment. (A uthor/HTW)

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