Why We Did This Audit
- In 2021, USAID provided $845.1 million in Economic Support Funds under the cash transfer program for general budget support to the Government of Jordan.
- As of April 2022, the cash transfer to Jordan was the largest amount of government-to-government (G2G) budget support given to any country, according to the Congressional Research Service.
- Given the high volume of funding to Jordan, we conducted this audit to determine the extent to which USAID managed the cash transfer program in accordance with the grant agreement and Agency policy.
What We Found
- USAID followed the grant agreement and Agency policy in managing the Jordan cash transfer program with two exceptions: (1) not updating its risk assessment for the Central Bank of Jordan and Jordan’s Ministry of Planning and International Cooperation; and (2) not documenting its deviation from Agency guidance for approving the cash transfer program.
- Otherwise, USAID verified that Jordan met select conditions that aligned with USAID’s development objectives and the Country Development Cooperation Strategy. USAID/Jordan also managed the cash disbursements in accordance with grant agreement and implementation letters.
Why It Matters
- USAID has requirements for G2G programs to ensure the accountability, capacity, and governance of public financial management institutions when entrusting other governments with USAID funds.
- Absent full compliance with due diligence requirements, USAID/Jordan will continue to have an outdated and incomplete view of the public financial management capacity of Jordanian institutions that receive cash transfer funds.
- For FY 2022 and beyond, USAID’s updated policy provides increased flexibility for missions in applying the risk management process for G2G assistance. Accordingly, documenting deviations from policy will remain important for USAID/Jordan in managing the cash transfer program for future years.
- Our recommendations will strengthen USAID/Jordan’s execution of due diligence requirements and help memorialize its approach to complying with policy requirements.