Audit of the AID organizational structure for Central and Eastern Europe

Under the Act, A.I.D. operates as part of an interagency team, and serves as the principal implementing agency for an assistance strategy developed by the Deputy Secretary of State. The assistance program to Central and Eastern Europe was structured to respond to and provide quick support for the economic and political reforms occurring in the region. As a result, the program operates and is structured differently from the traditional A.I.D. program. In addition to the involvement of other Federal agencies, these differences include the program"s regional rather than bilateral approach to allocating funds, its demand driven nature based on the recipient country"s capacity to absorb U.S. assistance, and its Washington-based management. Also, A.I.D. streamlined its programming process in order to speed up project authorization. Within A.I.D., the organizational structure for Central and Eastern Europe consists of (1) various Bureau for Europe and Regional Mission for Europe offices in Washington, and (2) A.I.D. Representatives in ten countries overseas. The structure is still in process of development. While the Bureau for Europe and the Regional Mission for Europe have not yet fully developed or documented their internal control procedures, they are developing plans to do so. In reviewing these plans, the audit found that the Bureau and Mission still need to: (1) clarify the role of the A.I.D. Representatives; (2) further define and document operating procedures; and (3) ensure that other U.S. agencies include audit clauses in their grants to or contracts with foreign entities.