Why We Did This Audit
On January 20, 2025, Executive Order 14169 directed a government-wide pause and review of all U.S. foreign assistance. As of March 2025, USAID had terminated over $76.5 billion (almost 50 percent) in foreign assistance awards. As a result, implementers began disposing of government-funded assets. In response to the award terminations, we initiated a series of audits examining asset disposition processes for eight USAID missions around the world. The objective of this audit was to determine the status of the disposition of USAID-funded physical assets procured under selected terminated awards in the Philippines. We identified 30 awards the USAID Mission for the Philippines (USAID/Philippines) managed that were terminated between January 20 and March 25, 2025. Of the 30 awards, we selected a judgmental sample of 8 awards and examined a sample of 297 assets procured under those selected awards.
What We Found
USAID/Philippines approved implementer disposition plans for selected awards, and implementers began disposing of assets largely by donating them. For the eight selected terminated awards that we reviewed, USAID/Philippines approved asset lists and disposition plans covering assets valued at approximately $1.5 million, including information technology equipment, vehicles, and laboratory equipment. As of May 29, 2025, USAID/Philippines had approved implementers to donate 253 of the 297 assets (85 percent) under the eight awards. Because of USAID’s closure and the U.S. government scaling back foreign assistance in the Philippines, options to redistribute assets for use within USAID operations or transfer them to another U.S. government agency were not feasible in most cases. During our site visits in April and May 2025, we determined that three implementers began disposing of assets in accordance with their approved plans.