For more than 60 years, the United States provided assistance to food-insecure countries primarily in the form of food commodities procured in the United States and transported overseas. In recent years, the U.S. government has increasingly provided food assistance in the form of cash transfers or food vouchers. In fiscal years 2010 through 2015, USAID funding for Emergency Food Security Program (EFSP) for cash transfers and food voucher projects grew from about $76 million to nearly $432 million. GAO was asked to review USAID's monitoring and evaluation of cash-based food assistance. This report examines, among other things, (1) USAID's and implementing partners' processes for monitoring cash transfer and food voucher projects and (2) the extent to which monitoring data reported to USAID can be used to evaluate the performance of such projects. GAO analyzed program data, interviewed relevant officials; and conducted fieldwork in Kenya and Liberia, selected on the basis of criteria such as funding and types of projects. GAO also reviewed the final reports for a nonprobability sample of closed cash transfer and food voucher projects.

For over 60 years, the United States has provided assistance to food-insecure countries primarily in the form of food commodities procured in the United States and transported overseas. In recent years, the United States has joined other major donors in increasingly providing food assistance in the form of cash or vouchers. In fiscal year 2014, U.S.-funded cash and voucher projects in 28 countries totaled about $410 million, the majority of which was for the Syria crisis, making the United States the largest single donor of cash-based food assistance. GAO was asked to review USAID's use of cash-based food assistance. In this report, GAO (1) reviews USAID's processes for awarding and modifying cash-based food assistance projects and (2) assesses the extent to which USAID and its implementing partners have implemented financial controls to help ensure appropriate oversight of such projects. GAO analyzed program data and documents for selected projects in Jordan, Kenya, Niger, and Somalia; interviewed relevant officials; and conducted fieldwork in Jordan, Kenya, and Niger. GAO is making recommendations to strengthen USAID's guidance for staff on approving award modifications and its guidance for partners on responding to changing market conditions. GAO is also making recommendations to strengthen financial oversight of cash-based food assistance projects by addressing gaps in USAID's guidance on risk assessments and mitigation plans and on financial control activities. USAID concurred with the recommendations.

For over 60 years, the United States has provided assistance to food-insecure countries primarily in the form of food commodities procured in the United States and transported overseas. In recent years, the United States has joined other major donors in increasingly providing food assistance in the form of cash or vouchers. In fiscal year 2014, U.S.-funded cash and voucher projects in 28 countries totaled about $410 million, the majority of which was for the Syria crisis, making the United States the largest single donor of cash-based food assistance. GAO was asked to review USAID's use of cash-based food assistance. In this report, GAO (1) reviews USAID's processes for awarding and modifying cash-based food assistance projects and (2) assesses the extent to which USAID and its implementing partners have implemented financial controls to help ensure appropriate oversight of such projects. GAO analyzed program data and documents for selected projects in Jordan, Kenya, Niger, and Somalia; interviewed relevant officials; and conducted fieldwork in Jordan, Kenya, and Niger.

For over 60 years, the U.S. has provided assistance to food-insecure countries primarily in the form of food commodities procured in the U.S. and transported overseas. In recent years, the U.S. has joined other major donors in increasingly providing food assistance in the form of cash or vouchers. In FY 2014, U.S.-funded cash and voucher projects in 28 countries totaled about $410 million, the majority of which was for the Syria crisis, making the U.S. the largest single donor of cash-based food assistance. This report (1) reviews the U.S. Agency for International Development's (USAID's) processes for awarding and modifying cash-based food assistance projects; and (2) assesses the extent to which USAID and its implementing partners have implemented financial controls to help ensure appropriate oversight of such projects. Table and figures. This is a print on demand report.

The U.S. approach of providing in-kind food aid has assisted millions of hungry people for more than 50 years. But, there have been reports on limitations to its efficiency and effectiveness. To improve U.S. food assistance, Congress has authorized some funding for local and regional procurement (LRP) -- donors' purchase of food aid in countries affected by food crises or in a country within the same region. Through analysis of agency documents, interviews with agency officials, experts, and practitioners, and fieldwork in four African countries, this report examines: (1) LRP's impact on the efficiency of food aid delivery; (2) its impact on economies where food is procured; and (3) U.S. legal requirements that could affect agencies' use of LRP. Illus.

INTERNATIONAL CASH-BASED FOOD ASSISTANCE: USAID Has Established Processes to Monitor Cash and Voucher Projects, but Data Limitations Impede Evaluation

INTERNATIONAL CASH-BASED FOOD ASSISTANCE: USAID Has Processes for Initial Project Approval but Needs to Strengthen Award Modification and Financial Oversight