Liberia: Need To Improve Accountability and Control Over U.S. Assistance
NSIAD-87-173
Published: Jul 16, 1987. Publicly Released: Jul 17, 1987.
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Highlights
In response to a congressional request, GAO examined U.S. economic, food, and security assistance programs to Liberia since 1980 to determine whether controls over U.S. funds are adequate.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| U.S. Agency for International Development | The Administrator, AID, should negotiate agreements with the government of Liberia to strengthen controls over the Public Law 480 program. The following provisions should be considered: (1) counterpart funds should be placed in a commercial bank not affiliated with Liberia; (2) the AID mission should be allowed to have prior approval authority for all checks written on the counterpart fund account; (3) project plans that include such things as project objectives, budget line items, and reporting requirements should be submitted to the AID mission prior to disbursing counterpart funds; and (4) independent verification of counterpart fund use should be made by a party acceptable to both Liberia and the United States. |
AID has negotiated tighter controls with Liberia. These include: (1) complete privatization of P.L. 480 program; (2) deposit of counterpart funds in a private bank; (3) FY 1989 program provisions for mission approval of local currency disbursements; and (4) an audit plan requiring advance approval by the mission.
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Topics
Agricultural assistanceContract administrationForeign economic assistanceForeign military assistanceFunds managementInternational agreementsInternational food programsProgram managementReporting requirementsSpecial fund accounts