The program areas are (1) tax policy and administration, which is to help countries establish tax systems that are fair and objective and that generate necessary revenues for government operations; (2) financial institutions, policy, and regulation, which is to develop policies and activities relating to privatization of state-owned commercial banks and improve their management; (3) budget policy, formulation, and execution, which is intended to help strengthen ministries of finance by helping introduce modern budget processes; (4) government debt issuance and management, which is to provide advice to host-government officials on developing markets for the sale of government securities; and (5) law enforcement, which is to enhance enforcement capabilities of the government to address crimes that can undermine privatization, developing financial systems, and other economic reforms. OTA Oversight of the Program

The advisor program has been carried out with little formal structure. We noted that other documents that OTA officials told us they used for program oversight, such as country agreements, work plans, and reports of supervisor visits, were not available. OTA’s oversight of its advisor financial disclosure reporting requirements was also lax. OTA officials told us they frequently used informal means, such as electronic mail and telephonic communication, to oversee the work of resident advisors. Conclusions and Recommendation

Treasury advisors in Romania and Russia have provided advice on a variety of economic reform efforts. Treasury Advisor Qualifications

The Treasury’s Office of Technical Assistance (OTA) requires general personnel qualifications for the advisors in its program. 2. Comments From the Department of the Treasury

The following are GAO’s comments on the Department of the Treasury’s letter dated February 5, 1999. GAO’s Comments

1. 3. 4. In addition, we provided information on advisor qualifications, program cost, fund transfers between USAID and the Treasury, and the location of the Treasury’s senior advisors to its program. In completing our review, we examined in detail advisor activities in Russia and Romania and visited OTA’s advisors working in these countries.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Department of the Treasury's Office of Technical Assistance (OTA) foreign aid program, focusing on: (1) the types of technical assistance OTA advisors have provided to Russia and Romania; (2) oversight by OTA of advisors' activities; (3) advisor qualifications, program cost, fund transfers between the Agency for International Development and the Treasury; and (4) the location of the Treasury's senior advisors to its program.

What GAO Found

GAO noted that: (1) the Treasury's technical assistance advisors in Russia and Romania have assisted in efforts to reform tax and budget systems, improve banking and debt management policies, and enhance law enforcement; (2) in support of these initiatives, Treasury advisors have helped countries devise new systems and approaches to management of their finances, drafted legislation and procedures, and developed economic models; (3) host-government officials for the most part indicated that the advice received from the Treasury's advisors was beneficial to their reform efforts; (4) the advisor program has been carried out with little formal structure; (5) the only clear mandatory requirement is the filing of monthly reports, and reports of varying content were generally filed on a regular basis; (6) however, other documents OTA officials say they use in their oversight, such as host-country agreements, work plans, and the results of supervisory trips, were not available; (7) OTA has also been lax in enforcing advisors' financial disclosure requirements; and (8) in response to GAO's observations, OTA told GAO that they use informal means such as electronic mail and telephone calls to carry out their oversight of advisor activities.