Burma: UN and U.S. Agencies Assisted Cyclone Victims in Difficult Environment, but Improved U.S. Monitoring Needed

Highlights

Cyclone Nargis hit Burma's impoverished Irrawaddy Delta on May 2, 2008, leaving nearly 140,000 people dead or missing and severely affecting about 2.4 million others, according to the UN. The Burmese military government initially blocked most access to the affected region; however, amid international pressure, it slowly began allowing international aid workers entry into the region. Since 1997, the United States has imposed sanctions to prohibit, among other things, the exportation of financial services to Burma and transactions with Burmese officials. In response to a congressional mandate, GAO (1) described the assistance UN and U.S. agencies have provided in response to Cyclone Nargis, (2) assessed USAID actions to help ensure funds are used as intended and do not benefit sanctioned entities, and (3) described the challenges responders experienced and the lessons learned. GAO reviewed financial and program documents; interviewed U.S., UN, and nongovernmental organization (NGO) officials; and traveled to Thailand and Burma.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
U.S. Agency for International Development	The Administrator of USAID should direct the appropriate mission and offices to improve management of grants related to Burma by taking actions, such as enhancing financial monitoring of agreements by including periodic reviews of grantee internal controls, transactions, and disbursement records.	Closed – Implemented USAID agreed with GAO's recommendation and took a number of actions to resolve the deficiencies. In response to GAO's recommendation, the Regional Development Mission for Asia's (RDMA) Agreement officer provided a 90 minute briefing on grant management and administration regulations and practices, which included a discussion of financial monitoring responsibilities, to staff that work primarily on oversight of Burma grants and cooperative agreements in November 2011. In addition, the RDMA mission included financial controls as one of the oversight items listed on the trip report template they developed in January 2012 for all technical teams conducting site visits in Burma.
U.S. Agency for International Development	The Administrator of USAID should direct the appropriate mission and offices to improve management of grants related to Burma by taking actions, such as providing grantees with specific guidance on the approval process for international travel requests, and ensuring that USAID staff monitor grantees' expenditures for compliance with related laws, regulations, and grant agreements, including international travel.	Closed – Implemented USAID agreed with GAO's recommendation and took a number of actions to resolve the deficiencies. In response to GAO's recommendation, the Regional Development Mission for Asia's (RDMA) Contracting Officer sent USAID recipients in the Burma Operating Unit a letter as a reminder of the Mandatory Standard Provisions for US and Non-U.S. Nongovernmental Recipients, A Mandatory Reference for ADS Chapter 303, and in particular the Standard Provision titled: INTERNATIONAL AIR TRAVEL AND TRANSPORTATION (JUNE 1999) in October 2011. Then in November 2011, the RDMA Agreement Officer provided a 90 minute briefing on Grant Management and Administration regulations and practices to staff that work primarily on oversight of Burma grants and cooperative agreements. Lastly, in January 2012, USAID developed standard post-award presentation materials related to USG Cost principles that are a standard feature of the RDMA post award briefings.
U.S. Agency for International Development	The Administrator of USAID should direct the appropriate mission and offices to improve management of grants related to Burma by taking actions, such as reinforcing the requirement for staff to formally document site visits to grantees.	Closed – Implemented USAID agreed with this recommendation and USAID's Regional Development Mission for Asia (RDMA) developed a new trip report template in January 2012 that is being utilized by all technical teams for reporting on site visits in Burma. Further, in November 2011, the RDMA Agreement Officer provided a 90 minute briefing on Grant Management and Administration regulations and practices to staff that work primarily on oversight of Burma grants and cooperative agreements.
U.S. Agency for International Development	The Administrator of USAID should direct the appropriate mission and offices to improve management of grants related to Burma by taking actions, such as ensuring all relevant offices are made aware of audit findings in a timely manner.	Closed – Implemented USAID agreed with GAO's recommendation and took action to resolve the deficiency. In response to GAO's recommendation, USAID's Regional Development Mission for Asia (RDMA) published the RDMA Audit Management and Resolution Program Mission Order in April 2012. The mission order outlines audit management responsibilities by role, including assigning responsibility for ensuring all relevant offices are made aware of audit findings in a timely manner.
U.S. Agency for International Development	The Administrator of USAID should direct the appropriate mission and offices to follow-up on the questionable costs associated with international travel that we identified in this report and take action as appropriate on any identified unallowable costs.	Closed – Implemented USAID agreed with our recommendation and in July 2011, the Regional Development Mission for Asia (RDMA) made a determination on questioned costs in the GAO report. The RDMA technical office (Governance and Vulnerable Populations) reviewed questioned costs in the GAO report. Then, the RDMA procurement office (the Regional Office of Procurement) made a decision as to whether the travel was appropriate for program monitoring.

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Topics

International Affairs

Allowable costsDisaster recoveryDisaster recovery plansDisaster relief aidEmergency responseFederal aid to foreign countriesForeign financial assistanceFunds managementGrant monitoringInternational organizationsInternational relationsInternational reliefInternational travelMilitary governmentMilitary regimesNatural disastersSanctionsDisaster grants funding