Agricultural Trade: Improvements Needed in Management of Targeted Export Assistance Program
NSIAD-90-225
Published: Jun 27, 1990. Publicly Released: Jun 27, 1990.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed the Department of Agriculture's (USDA) management of its Targeted Export Assistance (TEA) Program.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to comply with federal standards for internal controls by adequately documenting major program decisions, including the funding allocation decision process, to clearly show how funding criteria were applied and ranked and the basis for those decisions, and the rationale for determining the type and amount of contributions from each participant. |
Closed – Implemented
Procedures were established that require reasons for change made to application forms by Under Secretary level and below. On type and amount of contributions, MPP interim regulations require the amount to be a minimum of 5 percent of CCC resources expended.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to better ensure that TEA funds are allocated for those commodities and markets with the greatest potential for successful market development by performing in-depth market analyses, improving the coordination between TEA and Cooperator Programs, and enhancing the information-sharing among FAS commodity divisions. |
Closed – Implemented
Effective in 1992, program regulations require a 3-year strategic plan and an expansion and standardization of the FAS application review summary. The summary includes a market basis for the prior years, the current year, and the following 2 years for U.S. exports (volume and value), U.S. market share, and TEA/MPP and Foreign Market Development program funding.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to require that participants in the generic portion of the program contribute a minimum of 5 percent of the TEA resources approved, as proposed in FAS draft regulations. |
Closed – Implemented
MPP interim regulations require participants to contribute a minimum of 5 percent of MPP resources expended.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to develop formal technical training programs for program specialists in such areas as marketing and business. |
Closed – Implemented
FAS is hiring some applicants with general economic degrees, planning to hire some specialists with marketing backgrounds, and is contracting with universities and consultants to provide in-house marketing training. FAS developed and held a 3-day marketing seminar in 1991 which was attended by 30 market specialists. FAS pays for marketing courses for participants in its Upward Mobility Program.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to develop a management information system that will provide easy access for program managers to basic summary data on participants and program operations for market development programs. |
Closed – Implemented
The developing management information system will be examined as part of the GAO general management review of FAS.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to combine the TEA and Cooperator Programs, if the TEA Program is reauthorized, to facilitate program administration and to maximize program effectiveness. |
Closed – Not Implemented
FAS believes that the legislative authority, purpose, and funding sources of the two programs make its merger into a single program impracticable. FAS is developing similar regulations for each program, except where legislative authority, purpose, or funding source preclude it. For example, FAS is carrying over certain aspects of the MPP to the Cooperator Program.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to conduct more oversight of participants in the branded program to ensure accountability for TEA funds and compliance with TEA guidelines. |
Closed – Implemented
FAS published a proposed rule in April 1990 that calls for specific planning activities for each market area, identification of constraints to expanding U.S. exports of the branded product, and who will conduct and supervise the activities.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to establish a 50-percent reimbursement rate for all commodities in the branded program, as proposed in FAS draft regulations. |
Closed – Implemented
MIPP interim regulations provide for a 50-percent reimbursement rate in the branded program.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to require nonprofit cooperator groups administering the branded program to evaluate the success of all branded activities for which they are responsible. |
Closed – Implemented
Program regulations require not-for-profit organizations to submit activity plans for branded programs that indicate anticipated export increases. Regulations also require activity evaluations.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to provide more specific guidance to participants concerning evaluation requirements in order to prevent confusion and to facilitate compliance. |
Closed – Implemented
The guidelines contain a chapter devoted to the planning, conduct, and utilization of evaluations in program design and implementation. Also, activity plans address the outcome of prior year evaluations and describe their effect on proposed activities, provide specific goals and benchmarks for planned activities, and describe how, when, and by whom progress will be documented.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to clearly document how evaluation results affect funding allocation decisions. |
Closed – Implemented
Fiscal year 1991 program summaries address specific instances of program redirection or refinement based on recommendations from evaluations of past and ongoing programs.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FAS, to conduct cross-commodity analyses and evaluations of the program overall to assist the Assistant Administrator, Commodity and Marketing Programs in making policy decisions concerning program direction and administration. |
Closed – Implemented
The extent of participant evaluations will be covered in the GAO general management review of FAS.
|
Full Report
Office of Public Affairs
Topics
Agricultural productsAgricultural programsCommodity marketingExportingFunds managementInternal controlsInternational tradeProgram managementSales promotionAgricultural trade