Foreign Assistance



STATE OIG: Compliance Follow-up Review: Department of State is Still Unable to Accurately Track and Report on Foreign Assistance Funds 

June 2017

Congress appropriates foreign assistance funding in support of diverse U.S. policy objectives around the world, including security, public health, democracy and governance, humanitarian relief, and nonproliferation, among others. In FY 2015, Congress appropriated $32.6 billion in foreign assistance funds for the Department and the U.S. Agency for International Development (USAID). In addition to the foreign assistance funds they manage, the Department and USAID can also transfer funding to other Federal agencies to implement programs on their behalf.1 The Department of Defense, Department of Justice, and the Centers for Disease Control and Prevention are the primary recipients of such transferred funds from the Department. For the foreign assistance funds directly managed by the Department’s bureaus and offices, annual outlays increased from approximately $2.43 billion in FY 1998 to $4.70 billion in FY 2015a 93 percent increase.2 The number of Department bureaus and offices responsible for managing foreign assistance resources increased from 15 to 22. 

The Department cannot obtain timely and accurate data necessary to provide central oversight of foreign assistance activities and meet statutory and regulatory reporting requirements.4 For example, the Department cannot readily analyze its foreign assistance by country or programmatic sector or determine what particular funds remain unspent. This lack of data hinders Department leadership from strategically managing foreign assistance resources, identifying whether programs are achieving their objectives, and determining how well bureaus and offices implement foreign assistance programs. Report




GAO: Security Assistance: U.S. Government Should Strengthen End-Use Monitoring and Human Rights Vetting for Egypt 

April 2016

U.S. agencies allocated approximately $6.5 billion for security-related assistance to Egypt in fiscal years 2011 through 2015. As of September 30, 2015, over $6.4 billion of the $6.5 billion total had been committed or disbursed. 

This report examines, for fiscal years 2011 through 2015, the extent to which the U.S. government (1) committed or disbursed funds allocated for security- related assistance for Egypt, (2) implemented end-use monitoring for equipment transferred to Egyptian security forces, and (3) vetted Egyptian recipients of security-related assistance for human rights concerns. Report

Media Coverage

US News/Al-Monitor: What Happened to the Billions the U.S. Gave to Egypt?

The Intercept: State Department Fails to Vet or Monitor Military Aid to Egypt

Forbes: GAO Presents Damning Evidence That U.S. Ignores Egypt Human Rights Abuses That Should Curtail $6.5B In Aid




STATE OIG: Department Financial Systems Are Insufficient to Track and Report on Foreign Assistance Funds 

February 2015

Foreign assistance resources managed by the U.S. Department of State (Department) and the U.S. Agency for International Development (USAID) under the direction of the Secretary of State grew from less than $10 billion in FY 2000 to more than $26 billion in FY 2010. The Department’s current core financial systems meet many of the Department’s needs; however, they were not designed to track and report on foreign assistance funds. 

The Office of Inspector General (OIG), in a number of inspections and audits dating back more than a decade, has found that neither the domestic Global Financial Management System (GFMS) and its data repository (Data Warehouse) nor the overseas Regional Financial Management System (RFMS) and its data repository (Consolidated Overseas Accountability Support Tool or COAST) currently track funding and expenditures by program, project, country, region, or purpose (sector). This is information that bureaus need to track and manage their funds and that the Department needs to respond to external queries. Report.




STATE OIG: Management Alert (Grants Management Deficiencies) 

September 2014

The management and oversight of grants poses heightened financial risk to the Department of State (Department). In FY 2012, the Department obligated more than $1.6 billion for approximately 14,000 grants and cooperative agreements worldwide. This is a significant outlay of funds, which makes oversight and accountability of the funds even more critical. 

The Office of Inspector General (OIG) and other oversight agencies have identified a number of significant deficiencies in the grant-management process. One of the most significant grant-management challenges faced by the Department is insufficient oversight, caused primarily by a small number of employees managing a large number of grants. Report

Media Coverage

Washington Examiner: State Dept. inspector general: More evidence of rampant mismanagement under Hillary Clinton




STATE OIG/SIGAR: The U.S. Civilian Uplift in Afghanistan Has Cost Nearly $2 Billion, and State Should Continue to Strengthen Its Management and Oversight of the Funds Transferred to Other Agencies 

September 2011

Since early 2009, U.S. agencies have nearly tripled the number of civilians deployed to Afghanistan under Chief of Mission authority at a cost of nearly $2 billion. The number of U.S. civilian employees deployed to Afghanistan increased from 320 in early 2009 to 1,040 personnel by June 2011. As the primary agency responsible for funding the civilian uplift and providing safe and functional working and living conditions for all agencies, the Department of State (State) incurred the majority of the $1.7 billion obligated to support the uplift, in addition to security costs. 

State and other agencies are likely to experience increased costs related to an expanded civilian presence in Afghanistan, and State faces significant challenges in planning to address these costs. Report

Media Coverage

Huffington Post: Cost Of Deploying One Civilian To Afghanistan: Up To $570,000 Per Year