The United States has allocated over $72 billion to Afghanistan since 2002. With other international donors, it is focused on transitioning leadership to the Afghan government and has pledged to provide at least 50 percent of its development aid through the Afghan government budget. Improving Afghanistan's public financial management capacity is critical to this transition. In 2010, the Afghan government, consulting with donors, issued a Public Financial Management Roadmap (Roadmap), which outlines goals to improve Afghanistan's capacity to develop a national budget and expend funds. GAO reviewed (1) U.S. efforts to improve the Afghan government's public financial management capacity, including the extent to which they support Roadmap goals, and (2) the extent to which U.S. efforts have improved the government's capacity. GAO reviewed documents and interviewed officials from the U.S. Agency for International Development (USAID); Departments of State, Defense (DOD), and the Treasury (Treasury); World Bank; and Afghan government in Washington, D.C., and Kabul, Afghanistan.
Recommendations for Executive Action
|United States Agency for International Development||1. For public financial management (PFM) efforts, the USAID Administrator should establish targets, as required, for each PFM-related performance indicator in its Mission Performance Management Plan for Afghanistan.|
|United States Agency for International Development||2. For public financial management (PFM) efforts, the USAID Administrator should take steps to ensure that the USAID-approved performance management plan for each implementing partner includes baseline data and targets for each indicator.|
|United States Agency for International Development||3. For public financial management (PFM) efforts, the USAID Administrator should ensure that implementing partners report performance data at the frequency established in the performance management plan.|