In addition to its regular  program and financial controls, USAID set up some additional oversight  measures, such as hiring accounting firms to oversee a host country’s  expenditures. USAID Coordinated with U.S. Government Entities and International Donors

USAID worked with the 12 U.S. departments and agencies that  implemented about $96 million in disaster recovery activities to help plan  their efforts and provide administrative support. USAID officials noted, however, that  some agencies provided needed technical expertise. USAID also coordinated with other bilateral and multilateral donors  through formal consultative group meetings and informal contacts among  mission staff and other donors. USAID Did Not Begin Expending Supplemental Funds Until 2000

With a few exceptions, USAID began expending disaster recovery funds  from the supplemental appropriation in January 2000, about 7 months after  the supplemental appropriation of $621 million was approved. USAID then had to complete its contracting processes and ensure  that program management and oversight were in place. During 1999, before the supplemental funds were available for use, USAID  missions used $189 million in other funds for emergency relief and initial  reconstruction programs, such as food-for-work activities to rebuild  infrastructure in hurricane-affected areas. Conclusions

USAID and the other U.S. departments and agencies provided disaster  recovery assistance that helped the affected countries recover from the  devastating effects of Hurricanes Mitch and Georges. Increased oversight of the disaster recovery program  helped ensure that funds were spent for intended purposes and not  misused. Available USAID mission staff were also involved in providing emergency  relief, initial reconstruction assistance, and continuing regular  development programs. Scope and Methodology

To determine whether the program and projects funded by USAID and the  other U.S. departments and agencies addressed the intended purposes of  disaster recovery and reconstruction, we conducted work at the  headquarters offices of USAID and other U.S. government entities and  made more than 30 trips to the countries affected by Hurricanes Mitch or  Georges. Accountability

USAID’s Bureau for Latin America and the Caribbean and mission staff, the  Office of Management and Budget, and we conducted most of the oversight  and review of the other U.S. departments and agencies.
What GAO Found

In the fall of 1998, when hurricanes Mitch and Georges struck Central America and the Caribbean, the United States and other donors responded by providing emergency relief, such as food, water, medical supplies, and temporary shelter. Also, In May 1999, Congress passed emergency supplemental legislation that provided $621 million for a disaster recovery and reconstruction fund for the affected countries, as well as reimbursement for costs incurred by U.S. departments and agencies during the immediate relief phase. The U.S. Agency for International Development (USAID) and other departments and agencies made significant achievements in helping the affected countries rebuild their infrastructure and recover from the hurricanes. USAID and others used the disaster recovery assistance to bring about economic recovery, improve public health and access to education, provide permanent housing for displaced families, and improve disaster mitigation and preparedness. To achieve these broad objectives, USAID funded infrastructure construction and repair, technical assistance and training, loans for farmers and small businesses, and some equipment. In addition to its normal controls, USAID ensured that the funds were spent for intended purposes. USAID coordinated its activities with 12 other departments and agencies that were allocated $96 million for disaster recovery efforts. USAID also coordinated with other bilateral and multilateral donors through formal consultative group meetings and informal contacts among mission staff and other donors. USAID attempted to strengthen the capacity of host government audit in situations as a means to resist corruption. However, USAID was not successful in this area, mostly due to country conditions. USAID did not begin expending the supplemental funds until January 2000, 7 months after the appropriation was enacted. Some of the factors that added time included arranging for additional program staff and contractor support; ensuring that financial controls and other oversight measures were in place; coordinating with and planning for the involvement of numerous other departments and agencies; and providing for U.S. contractors and other organizations to compete for most of the contracts, grants, and cooperative agreements that were awarded.