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ID-82-42 1 (1982-06-02)

handle is hein.gao/gaobabdiq0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. Z0548 10 INTERNATIONAL DIVISION June 2, 1982 B-206 204 The Honorable M. Peter McPherson Administrator, Agency for International Development 118602 Dear Mr. McPherson: Subject: Mianaging Host Country Contracting Activities (GAO/ID-82-42) We have examined aspects of Agency for International Development-financed project activities implemented under con- tracts awarded by the host countries. We identified issues which we believe should be brought to your attention. We found that --a centralized inventory of host country contracts, as directed by AID management in 1977 and again in 1979, has not been developed; --the idea of a centralized inventory has all but been abandoned and a substitute data system has not been established; and --AID overseas missions have continually ignored the requirement to provide certain data on host country contracts to AID/Washington. We believe that certain actions are needed to correct identi- fied management weaknesses and improve AID's operational capabili- ties. Information on host country contracts would (1) assist AID managers in general oversight and policy examination, (2) enable AID to readily inform the Congress and the general public on for- eign aid contract expenditures and how they benefit the United States, (3) assist auditors in obtaining more complete audit coverage, and (4) provide a basis for exchanging contract cost information and serve to alert AID officials on problem con- tractors. When you complete the study of host country contract- ing problems requested by the Senate Appropriations Committee in its November 1981 report, you may determine that further actions are needed to improve internal control and oversight of these activities. (See enc. I.) (471991)

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