United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2003-09-30 monographic deposited born digital GA 1.13:GAO-03-1152R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-03-1152R P0b002ee1803a4e38 f:d031152r DGPO 2010-08-12 2011-03-24 GAOREPORTS-GAO-03-1152R machine generated eng fdlp REPORT GAOREPORTS-GAO-03-1152R GAO-03-1152R Budget activities Federal funds Foreign financial assistance Funds management Economic development Appropriated funds Correspondence A08628

Humanitarian and economic development assistance has long been an important component of U.S. global security strategy. Since 1962, the U.S. Agency for International Development (USAID) has managed more than $273 billion in such assistance. In fiscal year 2003, USAID estimates that it will obligate about $13 billion for assistance programs in almost 160 countries. In recent years, demands on USAID's budget and workforce have increased as the agency strives to meet emerging requirements, such as reconstruction efforts in Afghanistan and Iraq and increased funding for health programs. However, USAID officials have expressed concern that funds provided for its administrative or operating expenses have not kept pace with the agency's requirements. Since 1976, Congress has included a separate appropriation to consolidate USAID's operating expenses into a single budget item. Congress intended that USAID pay for the administrative costs of delivering foreign assistance (its "cost of doing business") from an operating expense account separate from its humanitarian and development assistance program funds. These operating expenses are costs incurred primarily for the benefit of the United States rather than the foreign assistance recipient. In accordance with congressional guidance, USAID reports all expenses related to the U.S. direct-hire staff as operating expenses and, based on its guidance on what constitutes the cost of doing business, other operating expenses--from rent to office utilities and supplies. In fiscal year 2003, USAID estimates that it will obligate $668 million for its operating expenses. We examined (1) trends in USAID's operating expenses since 1995 and (2) whether the charges to USAID's operating expenses account reflect the agency's actual cost of doing business. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-03-1152R/html/GAOREPORTS-GAO-03-1152R.htm GAO-03-1152R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-03-1152R Correspondence GAO-03-1152R; Foreign Assistance: USAID's Operating Expense Account Does Not Fully Reflect the Cost of Delivering Foreign Assistance; Budget activities Federal funds Foreign financial assistance Funds management Economic development Appropriated funds Title 22 Section 2427 22 U.S.C. 2427 Public Law 107-115 Public Law 108-11 S. Rept. 95-1194