International Food Aid: Better Agency Collaboration Needed to Assess and Improve Emergency Food Aid Procurement System
Highlights
What GAO Found
Although the U.S. Department of Agriculture (USDA) and U.S. Agency for International Development (USAID) jointly manage international emergency food aid procurement, the agencies disagree about the usefulness of the Web Based Supply Chain Management system (WBSCM) to manage the entire process. WBSCM had significant deficiencies when it was implemented in April 2011, which led USAID to discontinue using it to procure ocean freight for bulk commodities, manage prepositioned or stockpiled commodity inventory, and track food aid shipments. For example, WBSCM was slow and time consuming to use and its process to procure ocean freight for bulk commodities was not compatible with USAID's process to negotiate contracts with ocean freight vendors. USDA currently uses WBSCM to procure food aid commodities, while USAID procures ocean freight using other systems not connected to WBSCM. Since March 2012, USDA has made changes to WBSCM, and USDA officials assert that these changes address some of the problems that led to USAID's decision to discontinue use of the system.
Since USAID uses systems outside of WBSCM, USAID and USDA lack information on individual food aid shipments, which, in turn, hinders USDA's ability to use WBSCM to prepare reports and efficiently file claims against ocean carriers to recover U.S. government funds. GAO's Standards for Internal Control in the Federal Government state that information should be accurately recorded and communicated to those who need it and in a form that enables them to carry out their internal control and other responsibilities. USAID relies on freight forwarders to track and periodically provide information on shipments. In GAO's work for a recent report, we found that freight forwarders did not collect complete or consistent information on emergency food aid shipments. Without accurate information from its freight forwarders, USAID is limited in its ability to generate accurate information on food aid shipments. In addition, GAO found that USAID and its warehouse contractors did not always accurately record all prepositioned commodity inventory transactions. USAID provides this potentially inaccurate information to USDA officials who enter this information into WBSCM to generate quarterly financial statements. Moreover, USAID's data collection outside WBSCM makes it more difficult for USDA to file claims efficiently against ocean freight vendors and recover U.S. funds because USDA officials must manually enter USAID information. According to USDA officials, USDA filed 131 such claims in fiscal year 2012 valued at $1.2 million.
USDA and USAID are not collaborating effectively to resolve their disagreement on the usefulness of WBSCM. In prior work, GAO identified key elements of effective collaboration that can enhance and sustain collaboration among federal agencies. Although USDA and USAID's collaborative efforts have incorporated some of these elements to develop WBSCM, they have not incorporated others. Specifically, USDA and USAID do not agree on the roles and responsibilities of key participants in the process, do not share a defined outcome for their collaboration, and do not have a written agreement stating how the agencies will collaborate. An upcoming functional upgrade of WBSCM offers an opportunity to make substantial changes that are mutually agreeable.
Why GAO Did This Study
USDA and USAID spent about $9.2 billion to provide international emergency food aid during fiscal years 2007-2012. USDA developed WBSCM with USAID's input to manage domestic and international food aid procurements. USDA spent about $187 million to develop and implement the system. GAO was asked to examine the international emergency food aid procurement process.
This report examines (1) the extent to which agencies agree to use WBSCM to manage the process, (2) how the agencies' use of WBSCM and other systems affects USDA's ability to have accurate information, and (3) the extent to which the agencies are collaborating on how to use WBSCM. GAO reviewed the procurement process and observed WBSCM in use. We analyzed inventory spreadsheets used to compile USDA's financial reports. We compared agencies' efforts to collaborate against key elements for effective interagency collaboration.
Recommendations
GAO recommended the agencies work together to ensure USDA receives accurate prepositioned inventory data, improve WBSCM's functionality by testing modified functions, and develop a written agreement that clearly outlines outcomes and roles and responsibilities for using WBSCM. USAID noted its view that prepositioned commodities move off USDA's books and onto those of USAID but agreed in general with our other two recommendations. USDA agreed with our recommendations and stated that the Commodity Credit Corporation retains ownership of prepositioned commodities.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | To improve the efficiency and accountability of the emergency food aid procurement process, the Secretary of Agriculture and Administrator of USAID should direct their staffs to work together to take steps to improve USDA's ability to account for U.S. government funds by ensuring that USAID provides USDA with accurate prepositioned commodity inventory data that USDA can independently verify. |
In March 2014, GAO reported that that the U.S. Agency for International Development (USAID) and U.S. Department of Agriculture's (USDA) systems for tracking food aid commodities that USAID had prepositioned in overseas warehouses may have insufficient internal controls, hindering the agencies' abilities to verify commodity inventories. In addition, GAO reported that independent audits showed instances where USDA had insufficient internal controls to verify commodity inventories that it received from USAID, which was reported as significant deficiencies in these audits. GAO recommended that USAID and USDA take steps to improve USDA's ability to account for U.S. government funds by ensuring that USAID provides USDA with accurate prepositioned commodity inventory data that USDA can independently verify. In June 2019, USAID demonstrated to GAO officials the functionality of its prepositioned warehouse database system (PREPO) to track shipments of food aid commodities for prepositioning from when it is loaded onto a ship, through when it is given to an implementing partner and leaves the prepositioning warehouse. USAID coordinated with USDA officials to ensure that inventory reports coming from the system would meet USDA's needs. In October 2019, USDA officials confirmed that the reports they had received from USAID on prepositioning inventory were sufficiently accurate and verifiable to meet its needs. As a result, USDA is better able to account for U.S. government owned food aid commodities that are stored in overseas prepositioning warehouse.
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| U.S. Agency for International Development | To improve the efficiency and accountability of the emergency food aid procurement process, the Secretary of Agriculture and Administrator of USAID should direct their staffs to work together to take steps to improve USDA's ability to account for U.S. government funds by ensuring that USAID provides USDA with accurate prepositioned commodity inventory data that USDA can independently verify. |
In March 2014, GAO reported that that the U.S. Agency for International Development (USAID) and U.S. Department of Agriculture's (USDA) systems for tracking food aid commodities that USAID had prepositioned in overseas warehouses may have insufficient internal controls, hindering the agencies' abilities to verify commodity inventories. In addition, GAO reported that independent audits showed instances where USDA had insufficient internal controls to verify commodity inventories that it received from USAID, which was reported as significant deficiencies in these audits. GAO recommended that USAID and USDA take steps to improve USDA's ability to account for U.S. government funds by ensuring that USAID provides USDA with accurate prepositioned commodity inventory data that USDA can independently verify. In June 2019, USAID demonstrated to GAO officials the functionality of its prepositioned warehouse database system (PREPO) to track shipments of food aid commodities for prepositioning from when it is loaded onto a ship, through when it is given to an implementing partner and leaves the prepositioning warehouse. USAID coordinated with USDA officials to ensure that inventory reports coming from the system would meet USDA's needs. In October 2019, USDA officials confirmed that the reports they had received from USAID on prepositioning inventory were sufficiently accurate and verifiable to meet its needs. As a result, USDA is better able to account for U.S. government owned food aid commodities that are stored in overseas prepositioning warehouse.
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| Department of Agriculture | To improve the efficiency and accountability of the emergency food aid procurement process, the Secretary of Agriculture and Administrator of USAID should direct their staffs to work together to take steps to assess WBSCM's functionality by testing the international procurement functions that have been modified since April 2011 and documenting the results. |
As of October 2017, USDA and USAID have participated in several meetings and training sessions to test web-based supply chain management's (WBSCM) functions, and USDA has solicited USAID feedback. For example, USAID helped test a change to the process for creating preposition purchase requisitions, and the prototype reporting strategy that will provide them with easier access to data and dashboards. In 2016, USAID began using WBSCM to solicit for all bulk ocean freight transportation, and USAID officials noted that WBSCM's user interface improved the reporting functionality for international food aid shipments and allows for more streamlined procurement processes. Meetings with USAID as part of its Business Management Improvement initiative, to assess Web Based Supply Chain Management's (WBSCM) functionality and test the international procurement functions, have documented some of the results of some of those meetings.
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| U.S. Agency for International Development | To improve the efficiency and accountability of the emergency food aid procurement process, the Secretary of Agriculture and Administrator of USAID should direct their staffs to work together to take steps to assess WBSCM's functionality by testing the international procurement functions that have been modified since April 2011 and documenting the results. |
As of October 2017, USDA and USAID have participated in several meetings and training sessions to assess and test web-based supply chain management (WBSCM) functions, and USAID has provided feedback to USDA. For example, USAID helped test a change to the process for creating preposition purchase requisitions, and the prototype reporting strategy that will provide them with easier access to data and dashboards. In 2016, USAID began using WBSCM to solicit for all bulk ocean freight transportation and USAID officials noted that WBSCM's user interface improved the reporting functionality for international food aid shipments and allows for more streamlined procurement processes.
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| Department of Agriculture | In preparation for WBSCM's functional upgrade, the Secretary of Agriculture and Administrator of USAID should direct their staffs to work together to take steps to develop a written agreement signed by both agencies that clearly outlines the desired outcomes of their collaboration and the roles and responsibilities of participants, such as freight forwarders. |
USDA agreed with this recommendation and made plans to prepare the written agreement. USAID also agreed with this recommendation and made plans to work with USDA to clarify roles and responsibilities and outcomes for collaboration. In January 2017, the Director of USAID Office of Food for Peace signed a memorandum of understanding (MOU) that was signed by the USDA Farm Service Agency Administrator in August 2016. This MOU outlines each agency's roles and responsibilities in the international food aid process, as well as goals for collaborating, such as working together to improve the Web Based Supply Chain Management program (WBSCM) and conducting regularly scheduled meetings to review the status of WBSCM improvements.
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| U.S. Agency for International Development | In preparation for WBSCM's functional upgrade, the Secretary of Agriculture and Administrator of USAID should direct their staffs to work together to take steps to develop a written agreement signed by both agencies that clearly outlines the desired outcomes of their collaboration and the roles and responsibilities of participants, such as freight forwarders. |
USAID agreed with this recommendation and made plans to work with USDA to clarify roles and responsibilities and outcomes for collaboration. In January 2017, the Director of USAID Office of Food for Peace signed a memorandum of understanding (MOU) that was signed by the USDA Farm Service Agency Administrator in August 2016. This MOU outlines each agency's roles and responsibilities in the international food aid process, as well as goals for collaborating, such as working together to improve WBCSM and conducting regularly scheduled meetings to review the status of WBSCM improvements.
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