Audit of AFL - CIO labor institutes

Audit report covers the period 1961-80 and is based on document review, visits to eight countries, and interviews with A.I.D. and LI officials. Although the LI"s have complied with legislative mandates and have gained considerable expertise, A.I.D. has inadequately integrated the work of LI"s into bilateral development programs. A.I.D. does not wish to formally relinquish LI oversight to the State Department (SD), but many Missions view LI activities as political and have delegated management and evaluation of LI programs to U.S. embassies, making it difficult to monitor LI programs or ensure compliance with the Foreign Assistance Act. Regarding AID/W, a permanent LI coordinating committee with representatives from the Office of Labor Affairs (OLAB) and regional Bureaus is defunct; definitive goals, objectives, or evaluation criteria for LI programs have not been established; and officials have largely relied on the inadequate data found in LI progress reports (i.e., no specific data on seminars, training courses, expenses, or participants). Independent audits of LI"s are of little value since uniform criteria have not been used. Fortunately, the financial accounting, reporting, and internal control systems of the LI"s are adequate. However, it appears that increasing and excessive administrative costs are siphoning off funds at the expense of LI program activities. It is recommended that AID/Bureau for Program and Policy Coordination: (1) outline Mission responsibility for integrating LI activities with development programs; (2) evaluate all LI programs; and (3) require regional Bureaus to reassess current LI reporting requirements and reaffirm the types of data most needed. Further, AID/Bureau for Program and Management Services should: (1) review delegation of authority between Missions and the SD to ensure A.I.D. contract and grant requirements are being fulfilled; (2) evaluate the functions, duties, and staffing of OLAB; (3) determine if there are legal or personnel impediments to the continued use of SD personnel to direct OLAB; (4) consolidate, coordinate, and include evaluation and reporting requirements in LI contracts/grant; and (5) ensure independent audits of LI"s.