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Managing the Transportation of U.S.-Donated Food to Developing Countries

ID-83-24 Published: Mar 03, 1983. Publicly Released: Mar 03, 1983.
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Highlights

Pursuant to a congressional request, GAO examined Agency for International Development (AID) and U.S. Department of Agriculture (USDA) procedures for managing the shipping and freight-forwarding functions for the Public Law 480, Title II food donation program.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should require that procedures be established to routinely examine the actual freight charges which appear on the bills of lading from all program sponsors to help ensure that they do not exceed those determined by its lowest landed cost procedure.
Closed – Not Implemented
USDA believes that its current procedures are adequate to ensure lowest available freight rates for cargo booked by its P.L. 480 Operations Division and that ultimate responsibility for examination of freight bills for PVO's rests with AID. Although AID pledges to implement monitoring procedures, GAO feels that USDA monitoring would provide added internal control over possible losses and abuse.
U.S. Agency for International Development The Administrator, AID, should require PVO's to monitor the activities of their freight forwarders by comparing, prior to payment, freight forwarder payment requests with USDA guidelines to verify that ocean freight charges comply with the lowest landed cost determination.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

International Affairs
Developing countriesFederal aid to foreign countriesFreight transportationInternational food programsMarine transportation costsPrivate sectorAgricultural commoditiesFreight transportation ratesExpenditure of fundsFood