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ID-83-25 1 (1983-01-03)

handle is hein.gao/gaobabmts0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 INTNATIOtAL DBIIION B-210219 JANUARY 3,1983 The Honorable M. Peter McPherson Administrator, Agency for International Development Dear Mr. McPherson: Subject: Potential For Improving AID'S Deobligation and Project Analysis Processes (GAO/ID-83-25) We have examined aspects of the Agency for International Development's (AID'S) deobligation process, including efforts to identify and monitor projects which are potentially subject to deobligation. We identify issues which we believe will be use- ful for you to consider as the Agency continues to improve the management of its projects. We make recommendations to you on page 9. As you know, Section 236 of the Legislative Reorganization Act of 1970 requires the head of a Federal agency to submit a written state- ment on actions taken on our recommendations to the Senate Com- mittee on Governmental Affairs and the House Committee on Gov- ernment Operations not later than 60 days after the date of the report and to the House and Senate Committees on Appropriations with the Agency's first request for appropriations made more than 60 days after the date of the report. We would appreciate receiving copies of your statements to the committees. AID has told the Congress that it expects deobligations which are due to good project management actions--rather than those due to write-offs of residual funds--to substantially increase. Although AID management has taken steps to meet this goal, our review of regional bureaus' reports on deobligation actions and our discussions with cognizant bureau officials indicate that the use of the deobligation process as a manage- ment tool has not as yet yielded significant results. Many deobligations occur because projects have been completed, leav- ing residual amounts to be cleared from the books. One diffi- culty seems to be the inconsistent ways bureaus identify troubled projects. This, in turn, indicates that AID should develop and apply more specific policy guidance and procedures, particularly in the area of deobligations and project extensions. (472007) wiiUjg120267

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