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Agricultural Trade: Review of Targeted Export Assistance Program

NSIAD-88-183 Published: May 24, 1988. Publicly Released: May 24, 1988.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of Agriculture's Targeted Export Assistance (TEA) program, focusing on the: (1) program's management, including the Foreign Agricultural Service's (FAS) documentation of its participant eligibility and funding allocation decisions; and (2) adequacy of the FAS evaluation process, how evaluations affect present and future funding allocations, and the commodities, activities, and geographical markets receiving TEA funds.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FAS, to: (1) document the funding allocation decision process to clearly show how funding criteria were applied and prioritized and the basis for those decisions; (2) base the funding allocation decisions not only on the applications and TEA proposals, but also on the activity plans; (3) conduct ongoing, in-depth marketing analyses for all TEA commodities and their countries or regions of promotion to ensure that TEA funds are allocated for those commodities and markets with the greatest potential for successful market development; and (4) provide all TEA participants with an opportunity to review and comment on proposed TEA guideline additions and changes, including a written record of any such proceedings.
Closed – Implemented
FAS is still not adequately documenting its funding allocation process, preferring to rely on verbal information for many decisions. According to FAS, it is not conducting in-depth marketing analyses because the staff does not have time to do this. FAS has established regulations and is taking steps to improve documentation and other concerns expressed in the June 1990 report.
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FAS, to: (1) document in writing the basis for the form and level of contributions for each TEA participant; (2) define the importance of third-party contributions in the funding decision process and more closely enforce the FAS guideline that the participants document the method by which third-party contributions are derived and the identities of the parties involved; and (3) more closely monitor TEA funds allocated for brand-identified promotion to ensure that all eligible private firms receive timely information about the program and have an opportunity to apply for TEA funds.
Closed – Implemented
It is still not clear how FAS determines contribution amounts. FAS does not document reasons for the variation and continues to state that each case must be individually assessed. Third-party contributions are not verified by activity, according to OIG, which could impact program effectiveness, if such contributions are significantly less than planned.
Department of Agriculture To help in the establishment of the new FAS Marketing Programs Division's Program Evaluation Section, the Secretary of Agriculture should direct the Administrator, FAS, to: (1) develop specific criteria to be included in the TEA guidelines for evaluating the TEA program; (2) require that the TEA evaluations be completed to coincide with the FAS application approval and funding allocation process; and (3) implement a formal system of internal controls for collecting, tracking, and documenting the progress and results of the TEA evaluations, including their impact on funding allocation decisions.
Closed – Implemented
FAS has a fully staffed program evaluation unit, under the direction of a new assistant administrator. This office may improve upon its tracking and utilization of evaluations. FAS has had a limited reorganization effective since April 1990, which established a new Planning and Evaluation Staff whose purpose is to conduct evaluations of ten programs and do cross-commodity analyses.

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Topics

Agricultural productsAgricultural programsEligibility determinationsExportingFunds managementProgram evaluationProgram managementRecordsAgricultural tradeAgricultural commodities