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<classification authority="sudocs">GA 1.13:NSIAD-94-30</classification>
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 <subject>Grant administration</subject>
 <subject>Foreign aid programs</subject>
 <subject>Foreign economic assistance</subject>
 <subject>International economic relations</subject>
 <subject>Internal controls</subject>
 <subject>Project monitoring</subject>
 <subject>Grant monitoring</subject>
 <subject>Cash management</subject>
 <subject>Accountability</subject>
 <subject>Personnel management</subject>
 <identifier>Economic Support Fund</identifier>
 <identifier>AID Commodity Import Program</identifier>
 <identifier>Bolivia</identifier>
 <identifier>Egypt</identifier>
 <identifier>Ghana</identifier>
 <identifier>Nicaragua</identifier>
 <identifier>Philippines</identifier>
 <identifier>Tanzania</identifier>
 <identifier>Israel</identifier>
 <identifier>Turkey</identifier>
 <identifier>Portugal</identifier>
 <identifier>AID Development Assistance Program</identifier>
 <identifier>African Development Fund</identifier>
 <identifier>AID Special Assistance Initiative</identifier>
 <identifier>International Monetary Fund</identifier>
 <identifier>AID Multilateral Assistance Initiative Program</identifier>
 <identifier>Ethiopia</identifier>
 <identifier>Africa</identifier>
 <identifier>Jordan</identifier>
 <identifier>Latin America</identifier>
 <identifier>AID Buy American Reporting System</identifier>
 <identifier>Pakistan</identifier>
 <identifier>World Bank Special Program of Assistance</identifier>
 <identifier>Colombia</identifier>
 <identifier>Panama</identifier>
 <type>Chapter Report</type>
 <seriesAbbrev>NSIAD</seriesAbbrev>
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<titleInfo>
 <title>Foreign Assistance: Clearer Guidance Needed on When to Use Cash Grants</title>
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<abstract>The Agency for International Development (AID) provided nearly $10
billion in cash grant assistance during fiscal years 1989-92.  This
report (1) analyzes the use of cash grant assistance to buy U.S. goods
and services, (2) assesses AID&apos;s systems for ensuring accountability and
monitoring of the use of cash grant assistance, and (3) evaluates AID&apos;s
basis for deciding when to use cash grants rather than other forms of
assistance to achieve U.S. objectives. AID prefers, but does not
require, that cash grant recipients use the money to buy U.S. goods.
AID reports that for fiscal year 1992, recipient countries used an
estimated 83 percent of all cash grants to repay debts; about 17 percent
was used to purchase goods, of which about half was used to directly
purchase U.S. goods, but these data are of doubtful accuracy.  At the
six missions GAO visited--Bolivia, Egypt, Ghana, Nicaragua, the
Philippines, and Tanzania--AID generally maintained adequate
accountability and monitoring controls as required by law and AID
guidance.  GAO recommends, however, that AID provide clear guidance to
overseas missions on choosing among various forms of assistance,
including cash grants, and that the missions fully document the reasons
for their choices.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-94-30</identifier>
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<note>Chapter Report</note>
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<subject>
 <topic>Grant administration</topic>
 <topic>Foreign aid programs</topic>
 <topic>Foreign economic assistance</topic>
 <topic>International economic relations</topic>
 <topic>Internal controls</topic>
 <topic>Project monitoring</topic>
 <topic>Grant monitoring</topic>
 <topic>Cash management</topic>
 <topic>Accountability</topic>
 <topic>Personnel management</topic>
 <topic>Economic Support Fund</topic>
 <topic>AID Commodity Import Program</topic>
 <topic>Bolivia</topic>
 <topic>Egypt</topic>
 <topic>Ghana</topic>
 <topic>Nicaragua</topic>
 <topic>Philippines</topic>
 <topic>Tanzania</topic>
 <topic>Israel</topic>
 <topic>Turkey</topic>
 <topic>Portugal</topic>
 <topic>AID Development Assistance Program</topic>
 <topic>African Development Fund</topic>
 <topic>AID Special Assistance Initiative</topic>
 <topic>International Monetary Fund</topic>
 <topic>AID Multilateral Assistance Initiative Program</topic>
 <topic>Ethiopia</topic>
 <topic>Africa</topic>
 <topic>Jordan</topic>
 <topic>Latin America</topic>
 <topic>AID Buy American Reporting System</topic>
 <topic>Pakistan</topic>
 <topic>World Bank Special Program of Assistance</topic>
 <topic>Colombia</topic>
 <topic>Panama</topic>
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