Summary: In response to a congressional request, GAO reviewed the accountability and controls over U.S. assistance to Indonesia.
GAO found that: (1) the Agency for International Development (AID) mission did not provide adequate oversight over the Food for Peace Program; (2) Indonesia did not submit audited reports of commodity sales receipts and expenditures; (3) self-help measure progress reports were generally late, incomplete, and did not cover all projects; (4) Indonesia spent an average of 75 percent of the agreed-upon amounts for self-help projects from 1982 through 1985, leaving $26 million unaccounted for in the equivalent local currency; (5) the mission did not include the food programs in its assessments under the Federal Managers' Financial Integrity Act; (7) the mission did not monitor most self-help projects and incorrectly calculated their required funding levels, resulting in a shortfall of about $700,000 in equivalent local currency; (8) the mission performed limited oversight of the internal controls of the two voluntary organizations that operated the title II program; and (9) although there was no evidence of major misuse or diversions of development assistance funds, the mission did not inventory or monitor other AID-financed development assistance items.
