The USAID Office of Inspector General (OIG) is highlighting key observations and challenges associated with managing the asset disposition process for foreign assistance awards. In our recent work, we determined that USAID and its implementers generally disposed of assets as intended. However, we observed issues that impacted USAID’s efforts to manage the disposition of assets by implementers. They include unique consideration needed for the disposition of sensitive or high-value assets, limited staff from USAID and implementers, unclear guidance, incomplete inventories, and the need for closeout audits to strengthen oversight.
As of July 1, 2025, more than 1,000 awards had been transferred from USAID to the Department of State (State). Of those awards,
approximately 700—valued at $45 billion—support development and humanitarian activities. With many of these awards scheduled to end in calendar year 2026, State may face similar issues managing asset disposition. Addressing these issues could mitigate the potential for fraud, waste, and abuse of U.S.-funded assets.