Introduction Statement of the Administrator USAID Organization Chart Assisted Countries - World Map Summary of FY 2003 Budget Request Program Highlights Management Improvements Operating & Administrative Expenses Capital Investment Fund Working Capital Fund Operation Expenses of the Inspector General Foreign Service Retirement and Disability Fund Summary Tables Regions     Africa     Asia & the Near East     Europe & Eurasia     Latin America & the      Caribbean Central Programs Glossary Abbreviations and Acronyms Wednesday, 29-May-2002 18:53:13 EDT

Dollars in Thousands

The FY 2003 appropriation request for the Office of the Inspector General (OIG) is $34 million. This request will enable the OIG to reduce the Agency's exposure to fraud and waste and to increase the credibility of and confidence in USAID programs operating in highly vulnerable areas of the world. It is important to note that funding at a level less than the requested amount could increase the risk that fraud and waste in the Agency's programs could go undetected because the OIG would have difficulties in adequately covering all program operations. This amount includes for the first time $1.3 million to fully fund the Federal retiree and health benefit costs.

The U.S. Agency for International Development (USAID) Office of Inspector General is an independent organization within USAID with the statutory responsibilities to: (1) conduct audits and investigations relating to the programs, operations, and personnel of USAID; (2) provide leadership and coordination, and recommend policies for activities designed to promote economy, efficiency, and effectiveness and to detect waste, fraud and abuse in the programs and operations of USAID; (3) provide a means for keeping the USAID Administrator and the Congress fully and currently informed about problems and deficiencies relating to USAID; and (4) provide audit and investigative services and oversight for the Inter-American Foundation and the African Development Foundation.

The OIG's goal is to assist USAID with the implementation of its strategies for economic development and to provide USAID managers with information and recommendations that improve program and operational effectiveness and efficiency. During FY 2001, with a $31 million budget, OIG audits and investigations of USAID's contracts, grantees and program operations led to $369 million in sustained monetary findings, including amounts USAID management agreed should be recovered for questioned costs, funds put to better use, and civil restitution payments and penalties. In addition, actual recoveries to the U.S. Treasury were realized in excess of $72 million in FY 2001 and $37 million in FY 2000.

Highlights of OIG activities in FY 2001 included an audit of the United States Government cargo preference reimbursement program that identified $182 million in potential recoveries and an investigation of bid rigging on a USAID-funded construction contract in Egypt that has resulted in settlements thus far of $13.2 million and a fine of $53 million. In addition, during FY 2001, the OIG conducted fraud awareness training for over 2,100 employees, grantees and contractors worldwide in an effort to proactively prevent fraud and waste in USAID programs and operations.

For the foreseeable future, USAID will play a critical and central role in the relief and reconstruction of Afghanistan. Because of the inherent risk involved with implementing relief and reconstruction programs in the region and the need for accountability, the OIG will reallocate its resources to ensure a level of accountability that hopefully will set the standard for the world donor community.

Office of Inspector General tables, including Funding by Category, Funding by Location, Funding by Object Class and Staffing Levels tables are currently not available online.