Emergency Food Assistance in Ethiopia: Gaps in USAID’s Award Administration, Monitoring, and Incident Reporting Hindered Its Ability to Detect Widespread Food Diversion

Evaluation
Report Number
E-000-25-002-M

Why We Did This Evaluation

Ethiopia is one of the most food-insecure countries in the world. Since 2020, this food insecurity has been exacerbated by armed conflict, severe drought, and economic shocks including COVID-19.  Between fiscal years (FY) 2021 and 2023, USAID’s Bureau for Humanitarian Assistance (BHA) obligated more than $3.3 billion in humanitarian assistance for Ethiopia.

On May 3, 2023, USAID paused its food assistance in Ethiopia’s northern Tigray region after finding that food aid intended for Ethiopians suffering under famine-like conditions was being diverted and sold on the local market. One month later, USAID expanded the pause to the entire country after finding widespread food aid diversion throughout Ethiopia. 

We initiated this evaluation to assess USAID’s oversight of emergency food assistance awards in Ethiopia prior to the discovery of widespread diversion. Our objectives were to evaluate the effectiveness of BHA’s (1) award administration, (2) monitoring, and (3) management of incident reporting.

What We Found

BHA Lacked Controls to Allocate the Appropriate Number of Agreement Officer Representatives for Ethiopia and to Maintain Award Records in the Agency’s Official System. BHA did not have a method to determine the number of agreement officer representatives (AORs) necessary for its emergency food assistance awards in Ethiopia—a gap that resulted in too few AORs to effectively manage the awards. BHA also lacked controls to ensure that required award administration activities were properly recorded in USAID’s official electronic repository of all award documentation, increasing the risk of award mismanagement. 

BHA Failed to Effectively Monitor Emergency Food Assistance in Ethiopia. BHA neither developed a country monitoring plan nor completed required formal assessments of the need for a third-party monitoring program. Instead, BHA relied on virtual meetings and unverified implementer reporting to monitor emergency food assistance. Additionally, limited capacity and staffing strained BHA’s ability to monitor awards effectively, despite significant increases in humanitarian assistance funding in the country. BHA likely would have detected the widespread food diversion earlier if it had resourced and implemented a more robust monitoring approach. 

BHA Did Not Enforce Timely Reporting, Had Unclear Reporting Requirements, and Did Not Fully Document or Respond to Implementer Incident Reports. USAID does not define timeliness in its incident reporting requirements, which makes it more difficult for BHA to enforce its own requirements. In addition, BHA did not consistently record incident-related documentation in the three required information systems. Further, BHA did not consistently respond to incident reports it received related to emergency food assistance. 

What We Recommend

We made 11 recommendations to improve BHA’s award administration, monitoring, and incident reporting policies and procedures. USAID agreed with 10 recommendations and disagreed with one.
 

Recommendations

Recommendation
1

We recommended BHA develop and implement a process to determine the appropriate number of AORs needed for a given award portfolio based on factors including, but not limited to, the number of awards, amount of funding, and operating environment.

Questioned Cost
0
Funds for Better Use
0
Recommendation
10

We recommend BHA develop and implement a process to ensure the storage and transfer of incident documentation between team files, Abacus, and ASIST, in accordance with BHA guidance.

Questioned Cost
0
Funds for Better Use
0
Recommendation
11

We recommend BHA Update incident guidance to require (1) documentation of BHA's course of action for reported incidents, to include determinations that no additional action is necessary and (2) documentation of incident closure after BHA's response.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
2

We recommend BHA develop and implement a process to regularly assess the completeness of required award documentation in ASIST and address identified gaps.

Questioned Cost
0
Funds for Better Use
0
Recommendation
3

We recommend USAID/Ethiopia's Office of Humanitarian Assistance fully implement the country monitoring plan for Ethiopia in accordance with recommended guidance.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
4

We recommend BHA update guidance for monitoring in nonpermissive environments to include criteria that trigger an assessment by BHA at the start of a response whether a country monitoring plan is necessary, and perform and document this assessment periodically, as applicable.

Questioned Cost
0
Funds for Better Use
0
Recommendation
5

We recommend BHA establish a mechanism to enforce the use of guidance for monitoring in nonpermissive environments, to include assessing and determining the need for a third-party monitor and identifying and defining context-specific approaches to verify data.

Questioned Cost
0
Funds for Better Use
0
Recommendation
6

We recommend BHA assess BHA's third-party monitor contracting processes and timelines, determine if adjustments are necessary to strengthen BHA's acquisition of third-party monitor support, and update BHA guidance accordingly.

Questioned Cost
0
Funds for Better Use
0
Recommendation
7

We recommend BHA establish a mechanism to enforce BHA's use of internal guidance for Response Team Staffing to develop a DART staffing strategy for disaster responses.

Questioned Cost
0
Funds for Better Use
0
Recommendation
8

We recommend BHA update BHA award language to clarify (1) the relationship with incident reporting requirements in USAID standard provisions and (2) ambiguous terminology related to reporting timeliness and incident impact.

Questioned Cost
0
Funds for Better Use
0
Recommendation
9

We recommend BHA develop and implement a framework to address implementer noncompliance with BHA incident reporting requirements that defines response options and identifies triggers for escalation.

Questioned Cost
0
Funds for Better Use
0