TOP MANAGEMENT CHALLENGES Facing USAID in Fiscal Year 2020

‘’’USAID manages approximately $31 billion in budgetary resources annually to advance economic growth, create markets and trade partners for the United States, and promote stable and free societies. In addition to promoting good will abroad, these investments can help strengthen U.S. national security interests’’’

Freakin Outrageous, they manage $31 Billion annually that they give away

We identified four top management challenges for USAID for fiscal year 2020. These challenges are based on our recent audits, investigations, and other oversight work

Managing Risks Inherent to Providing Humanitarian and Stabilization Assistance. The flow of billions in assistance dollars in crisis environments creates prime opportunities for fraud and diversions of U.S.-funded goods to the black market or, in some cases, to terrorist groups. USAID continues to adapt its approach to managing these risks and address the complexities when short-term humanitarian responses evolve into a protracted presence.

Strengthening Local Capacity and Improving Planning and Monitoring To Promote Sustainability of U.S.-Funded Development. The long-term success of U.S. foreign development depends on host country commitment to growth. However, countries often lack the capacity to build local skills and ensure public- or private-sector participation and backing to continue development activities and services after U.S. involvement ends. This has been the case with USAID’s $9.5 billion Global Health Supply Chain-Procurement and Supply Management project.

Since 2016, our investigations and joint operations with local authorities have revealed that host governments have been unable or unwilling to strengthen warehousing, security, and commodity distribution systems— allowing bad actors to steal lifesaving medicines and medical supplies. Weaknesses with planning and monitoring have also undermined the outcomes of Power Africa, Haiti reconstruction, and other USAID development projects. While USAID continues to take action to assess and mitigate risk and build accountability, significant sustainability risks remain

Reconciling Interagency Priorities and Functions To Efficiently and Effectively Advance U.S. Foreign Assistance. U.S. foreign assistance frequently involves multiple Government agencies, donors, and host governments, each having its own authorities, priorities, and strategies for advancing shared interests. We have seen how operating without clearly defined policies and procedures at the start has impeded multi-agency efforts like Power Africa and the U.S. Ebola response. While USAID actions have the potential to improve interagency coordination, the Agency will continue to be challenged to plan for and adapt to agencies’ shifting priorities, budgets, and staffing to further U.S. foreign policy and national security objectives.

Addressing Vulnerabilities and Implementing Needed Controls in Agency Core Management Functions. USAID’s ability to carry out its mission and safeguard Federal funds depends on the integrity and reliability of its core business practices and systems. Without them, other safeguards— no matter how well they are designed and implemented—will not work effectively. While USAID has taken noteworthy actions to strengthen its controls over core management functions and bring its financial and information systems into compliance with strict Federal requirements, the Agency continues to work to instill rigor in its awards, financial, information, and human capital management.

https://oig.usaid.gov/sites/default/files/2019-11/USAID%20Top%20Management%20Challenges%202020.pdf