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119784 1 (1981-12-02)

handle is hein.gao/gaobacxut0001 and id is 1 raw text is: WASHING&TON, D.C. zo4O . ii ~ ~ 3 rr!WTPO/ ./V'1501 l DEC 2.1981 Mr. R. T. Rollis, Jr. Assistant to the Administrator for Manage:ient Agency for International Development Dear Tom: As a result of recent interest in AID to address what is seen as a serious iimpediment to the Agency's programmiing and impleuen- tation process, the General Accounting Office has done some back- ground work on th.e topic of doobligation authority. As you know, AID had this authority through fiacal year 1978. At. our meeting on November 6, 1981, you may recall that Administrator NcPherson suggested that GAO look into the pros and cons of AID's need for deobligation-reobligation authority. AID bas cjencrally acknowledged that such authority tends to lesson congressional budgetary control but would be especially useful where AID funds are earmarked for particular countries and also where AID is forced by legislation or other reasons to terminate a program. As we understand it, present AID thinking goes somewhat like this: When problem situations arise in certain c6untries, funds providced in a prior year could be deobligated and roobligated in a. subsequent year for similar activities; deoblicjated funds would not be lost by reverting back to the Treasury. The authority would prcsuiaably give AID greater incentive to terminate older, floundrinq projects. The authority is perceived as a useful manageraent tool which would permit AID to restructure projects not meeting their objectives and relieve the continuing buildup of AID pipeline funds. While gathering background materiacl, our staff has examined some of the history of deob-reob authority as well as prior GAO participation in addressing the issue. On two occasions GAO has £ taken a look at the deob-roob issue at the request of the Senite Appropriations Subcommittee. Following are brief cominients based on these two efforts. Copies of the statement and the letters are being provided for your information as enclosures to this letter. 119784