The programs focus on development research (science  objective), digital development (technology objective), innovation ventures  (innovation objective), and private-sector engagement (partnerships  objective). Examples of the Lab’s programs and activities include the following (see  app. Program Funding for the Lab Has Decreased since Fiscal Year 2015

Allocations of program funds from USAID to the Lab have decreased over  the past few fiscal years, from $170.7 million in fiscal year 2015 to $77  million in fiscal year 2017. The Lab Documented Its Oversight of Awards with Non- USAID Contributions, but Some Data Are Outdated and Public Reporting Lacks Transparency

		The Lab’s Documented Oversight of Awards with Non-USAID Contributions Followed USAID and Lab Guidance

Our review of Lab documents showed that, for all 24 Lab-managed  awards we reviewed, the Lab consistently documented certain oversight  requirements for non-USAID contributions (i.e., committed, rather than  actual, contributions from the private sector, the public sector, and other  U.S. government agencies). We reviewed 24 Lab-managed awards that  included non-USAID contributions to determine whether the Lab  documented its compliance with key award oversight requirements we  identified in USAID and Lab guidance. Our analysis of data in the Lab’s management information system found  that one of two tables used to develop a number of internal and external  reports contained outdated data for 10 of the 24 awards we reviewed and,  in some cases, had not been updated for more than 2 years. The Lab’s Internal Guide Does Not Require Its Public Reporting of Leverage Data to Disclose Types of Non-USAID Contributions Represented

The Lab’s internal guide does not require its public reporting of data on  non-USAID contributions, or leverage, to disclose the types of  contributions represented. In addition,  according to Standards for Internal Control in the Federal Government,  management should externally communicate complete and accurate  information to achieve an entity’s objectives. Agency integration. Conclusions

Since its establishment as a USAID bureau more than 4 years ago, the  Lab has supported the agency’s efforts to address science, technology,  innovation, and partnerships. Further, the Lab has funded and managed  opportunities for innovators to propose new ideas, approaches, and  technologies that tie into USAID’s overall development goals and  programming. Moreover, because the Lab’s Internal Guide to Accounting for  Leverage does not require its public reporting of leverage data to identify  the types of contributions represented, the Lab’s public reporting lacks  transparency. (Recommendation 1)
The USAID Administrator should ensure that the Executive Director of  the Lab assures that the Lab’s Internal Guide to Accounting for  Leverage requires that the Lab’s public reporting of leverage data  discloses the types of non-USAID contributions represented. In its  letter, USAID concurred with, and indicated that it is already addressing,  both recommendations. Appendix I: Objectives, Scope, and Methodology

In this report, we examine (1) the Global Development Lab’s (the Lab)  programs, funding, and staffing resources, (2) the extent to which the Lab  has documented its oversight of awards with non-U.S. Agency for  International Development (USAID) contributions and clearly reported  these contributions, and (3) the tools that the Lab uses to assess its  performance as well as results that such assessments have shown. In addition, we reviewed and analyzed obligation  data on Lab-managed activities for fiscal years 2014 to 2017. Among other guidance documents, we  reviewed the Lab’s Global Development Lab Internal Guide to Accounting  for Leverage, and the Lab’s “Indicator Reference Sheet.” We also  interviewed Lab officials responsible for implementing the Lab’s guidance  for accounting for non-USAID contributions, as well as officials from  USAID’s office of Policy, Planning, and Learning who are responsible for  developing and updating ADS guidance on non-USAID contributions.
Why GAO Did This Study

The Lab was created as a USAID bureau in April 2014. The Lab was intended to institutionalize and improve USAID's ability to harness and leverage science, technology, innovation, and partnerships in addressing development issues and goals worldwide. The Lab supports projects and activities and announces, issues, and manages awards—or funding opportunities—for innovators to propose new ideas, approaches, and technologies. The Lab also incorporates external (i.e., non-USAID) contributions into its programming.
Senate Report 114-290 included a provision for GAO to review the Lab. GAO's report examines, among other things, (1) the Lab's programs, funding, and staffing resources and (2) the extent to which the Lab has documented its oversight of awards with non-USAID contributions and clearly reported these contributions. GAO reviewed and analyzed agency documents and interviewed agency officials in Washington, D.C., and from six missions. GAO also analyzed selected Lab documentation for fiscal years 2014 through 2017.

What GAO Found

The U.S. Agency for International Development's (USAID) Global Development Lab (the Lab) has programs and activities for each of its five strategic objectives: science, technology, innovation, and partnerships (STIP) and agency integration of STIP. The Lab comprises five centers and two support offices (see figure). The centers house more than 25 Lab programs focused on issues such as development research, digital development, innovation ventures, and private sector engagement. The Lab's funding for its programs has generally been decreasing, as have its staffing numbers, since fiscal year 2015. USAID allocations of program funds to the Lab decreased from $170.7 million in fiscal year 2015 to $77 million in fiscal year 2017.
Although the Lab has documented its oversight of awards that include non-USAID contributions, some data it collects for these contributions are outdated and its public reporting of such data lacks transparency.
For awards GAO reviewed, the Lab consistently documented its compliance with key award oversight requirements. However, its Internal Guide to Accounting for Leverage (internal guide) does not include instructions for ensuring the data for these contributions are current. As a result, GAO found the Lab's management information system contained outdated data for non-USAID contributions in 10 of 24 awards GAO reviewed.
The Lab publicly reports a broader range of non-USAID contributions than the types described in USAID policy. However, the Lab's internal guide does not require the Lab to disclose the types of contributions represented in its public reporting. As a result, the Lab's public reporting of such contributions lacks transparency.
USAID policy and standards for internal control in the federal government require the use and communication of timely and reliable information. Revising the Lab's internal guide to include instructions for updating data on non-USAID contributions and requiring the Lab's public reporting to disclose the types of contributions represented would help the Lab ensure accuracy and transparency in the information it reports to Congress and the public.

What GAO Recommends

GAO recommends that USAID ensure that the Lab revises its Internal Guide to Accounting for Leverage to (1) include instructions for updating data on non-USAID contributions for awards and (2) require its public reporting of non-USAID contributions to disclose the types of contributions represented.
USAID concurred with both recommendations.