Citizens’ Report

The Fiscal Year 2008 Summary of Performance and Financial Results
 

A Message from the USAID Administrator 1

INTRODUCTION 2

Mission Statement 2

Strategic Framework and Organizational Structure 2

Foreign Assistance Performance Reporting 3

Budget, Performance, and Financial Snapshot 4

PERFORMANCE AND BUDGET HIGHLIGHTS 6

Overview 6

Strategic Goal on Achieving Peace and Security 8

Strategic Goal on Governing Justly and Democratically 10

Strategic Goal on Investing in People 12

Strategic Goal on Promoting Economic Growth and Prosperity 15

Strategic Goal on Providing Humanitarian Assistance 17

Rebuilding Iraq and Afghanistan 19

MANAGEMENT HIGHLIGHTS 21

Management Accomplishments 21

Management Challenges 22

FINANCIAL HIGHLIGHTS 23

Overview 23

Summary of Financial Statements Audit 23

Balance Sheet Summary 24

Net Cost Summary 25

TABLE of Contents

About This Report

The Citizens’ Report provides a 

summary of the U.S. Agency 

for International Development’s 

(USAID) performance for fiscal year 

(FY) 2008. The report is part of a series 

in the Office of Management and 

Budget’s (OMB) Pilot Program for 

Alternative Approaches to Performance 

and Accountability Reporting. The other 

reports in the series are: (1) the Agency 

Financial Report (AFR); (2) a Snapshot 

of the budget, and program and financial 

performance; (3) the Annual Performance 

Report (APR); and (4) the Annual Performance Plan (APP). USAID opted to 

participate in this voluntary pilot program 

for the second year in order to present 

more complete and readily accessible 

information on its performance to the 

American public and the U.S. Congress. 

The Agency will submit its FY 2010 APP 

in conjunction with the Congressional 

Budget Justification in spring 2009. 

Together, these reports fulfill the Agency’s 

compliance with the Government Performance and Results Act reporting requirements.

The USAID FY 2008 Citizens’ Report

includes:

•	 A message from the USAID Administrator;

•	 The budget, performance, and financial 

Snapshot; 

•	 The Agency’s mission statement and 

description of its organization and 

program structure; 

•	 Progress on key strategic goals, 

including candid assessments of 

whether the Agency met, partially 

met, or did not meet its FY 2008 

performance targets; 

•	 Budget and cost efficiency information linked to the strategic goals and 

program areas; 

•	 Summarized financial statements from 

the AFR;

•	 Summary of major management 

accomplishments, and key management issues and challenges;

•	 Supporting references and Internet 

links. 

The FY 2007 predecessor report, called the 

Highlights Report, was jointly prepared by 

USAID and the Department of State.
USAID FY 2008 CITIZENS’ Report | A MESSAGE FROM THE USAID ADMINISTRATOR 1

Henrietta H. Fore

A Message from the USAID Administrator and

Director of U.S. Foreign Assistance

USAID is one of the world’s 

largest foreign aid donors, and 

is a trendsetter for other aid 

groups in development and 

humanitarian assistance. During 2008, 

USAID advanced democracy, prosperity, 

and human well-being, and responded to 

humanitarian crises around the world 

with Agency-managed resources of about 

$13.9 billion. USAID delivered programs 

in economic growth and agriculture, 

education, health, food security, and good 

democratic governance mainly through its 

88 missions and field staff. The provision 

of assistance was guided by principles of 

effective development assistance, which 

include host country capacity building 

and ownership. Accomplishments include:

•	 Strengthened citizens’ abilities to 

demand accountable government in over 

80 countries, including domestic election 

monitoring in Afghanistan, Georgia, 

Kenya, Nigeria, Pakistan, Russia, 

Ukraine, Venezuela, and Zimbabwe.

•	 Increased capacity of financial institutions to lend to small businesses, due to 

Development Credit Authority guarantees, as evidenced by an increase in loans 

from $69.0 million in FY 1999 to $1.5 

billion in FY 2008. 

•	 Leveraged over $649 million in private 

sector resources and implemented 225 

new public-private partnerships. 

•	 Provided life-saving measures, including 

polio vaccinations to over 400 million 

children in 33 countries in Africa, Asia, 

and the Near East; and supported micronutrient fortification programs benefiting 160 million people in 23 countries. 

•	 Addressed the food crisis with 2.6 

million metric tons of Public Law 480 

Title II food aid valued at $2.6 billion, 

including $2.3 billion in emergency 

assistance to 39 countries, and $355 

million in development programs. 

•	 Responded to 81 life-threatening disasters and met the basic needs of affected 

populations in 63 countries. In all cases, 

responses were provided within 72 hours 

of declared disasters. Over $1.8 billion 

of assistance included nutrition, food 

security, water, sanitation and hygiene, 

and public health. 

USAID strengthened its capacity to meet 

the challenges of the 21st century by 

increasing the number and the diversity of 

its Foreign Service workforce. One hundred 

and fifty seven additional officers were 

recruited in FY 2008. The overall goal is to 

double the Foreign Service workforce by 

2012. USAID also formalized its relationship and policy for coordination with the 

Department of Defense, in recognition 

of the global security environment where 

instability threatens progress in development. This will lead to a more integrated 

approach to U.S. National Security 

Strategy and foreign assistance. 

USAID made significant improvements in 

its President’s Management Agenda (PMA) 

initiatives. It received a “green” score for 

current status in Human Capital, Financial 

Performance, Performance Improvement, 

and Faith-based and Community initiatives, 

while Commercial Services Management, 

E-Government, and Real Property Asset 

Management initiatives scored “yellow.” 

USAID earned “green” for progress in all 

the PMA initiatives. 

For the sixth consecutive year, USAID 

earned unqualified opinions on its financial 

statements, a representation that these statements fairly present the financial condition 

of the Agency. 

All these accomplishments are made 

possible by the commitment, talent, and 

technical expertise of USAID’s workforce. This was exemplified by a USAID 

employee, Richard Greene, named Federal 

Employee of the Year by the Partnership for 

Public Service, for his work on the President’s Malaria Initiative with a Service to 

America Medal. 

I am pleased to certify that the performance, financial, and budget data are 

complete and reliable. It is USAID’s policy1

that all performance data reported to 

the American public are assessed against 

standards of validity, integrity, precision, 

reliability, and timeliness to identify the 

strengths and weaknesses of the data and 

extent to which they can be trusted for 

programmatic decisions. Every Chief of 

Mission endorses the validity of the performance data when transmitting its annual 

performance report. A fuller discussion of 

FY 2008 performance and data sources is 

available in the 2008 Annual Performance 

Report2.

Henrietta H. Fore

USAID Administrator and

Director of U.S. Foreign Assistance

January 15, 2009

1. http://www.usaid.gov/policy/ads/200/203.pdf

2. http://www.usaid.gov/policy/budget/apr08/
2 USAID FY 2008 CITIZENS’ Report | INtroduction

Strategic Framework and Organizational Structure

Mission Statement

USAID accelerates human progress in developing countries by reducing poverty, advancing democracy, 

building market economies, promoting security, responding to crises, and improving quality of life. 

Working with governments, institutions, and civil society, we assist individuals to build their own futures 

by mobilizing the full range of America’s public and private resources through our expert presence overseas.

S

ecretary of State Condoleezza 

Rice’s vision of “transformational 

diplomacy” requires that U.S. 

diplomacy and foreign assistance function 

in an integrated fashion to advance the 

Nation’s security interests, its development efforts, and its democratic ideals. 

USAID’s joint strategic framework with 

the Department of State (Department), 

anchored by the President’s National 

Security Strategy, defines the primary aims 

of U.S. foreign policy and development 

assistance. This framework is described in 

the agencies’ Joint Strategic Plan for Fiscal 

Years 2007-2012 at http://www.usaid.

gov/policy/coordination/stratplan_fy07-12.

html. The USAID-specific strategic goals 

and priority program areas are found at 

http://www.usaid.gov/policy/budget/apr08/

apr08_sgppa.pdf. 

USAID’s organizational structure can be 

found at http://www.usaid.gov/about_usaid/

orgchart.html. The Agency’s mission is 

carried out through five regional bureaus 

in Washington: Africa, Asia, Middle East, 

Latin America and the Caribbean, and 

Europe and Eurasia. The regional bureaus 

are supported by three functional bureaus: 

the Bureau for Democracy, Conflict, and 

Humanitarian Assistance, which provides 

expertise in democracy and governance, 

conflict management and mitigation, 

and humanitarian assistance; the Bureau 

for Economic Growth, Agriculture, 

and Trade, which provides expertise in 

economic growth, trade opportunities, 

agricultural productivity and technology, 

and education; and the Bureau for Global 

Health, which provides expertise in global 

health challenges, such as maternal and 

child health, malaria, and HIV/AIDS.

USAID’s Bureau for Management 

administers a centralized support services 

program for the Agency’s worldwide 

operations. The Bureau for Legislative 

and Public Affairs develops and implements outreach programs to promote 

understanding of USAID’s missions 

and programs.

USAID implements programs in 88 

countries overseas known as “field 

Missions.” The U.S. Ambassador serves 

as the Chief of Mission for all U.S. 

Government agencies in a given country 

and the USAID Director reports to the 

Ambassador. The USAID Director or 

Representative is responsible for USAID’s 

operations in a given country or region 

and also serves as a key member of the 

U.S. Government’s “country team.”

The field mission workforce is typically 

composed of three major categories of 

personnel: U.S. Direct Hire (USDH) 

employees (including program-funded 

Foreign Service Limited [FSL] appointments), U.S. Personal Services Contractors (USPSC), and Foreign Service 

Nationals (FSN). USDHs are career 

Foreign Service employees assigned to 

Missions for two to four-year tours. 

Program-funded FSLs are hired under 

a special authority granted by Congress 

to replace contracted personnel, such as 

USPSCs. FSNs, professionals recruited in 

their host countries by USAID, make up 

the core of the USAID workforce. FSNs 

are the bridge to effective contacts with 

key host country officials and decisionmakers, and they provide the institutional 

memory for and continuity of USAID’s 

country programs. They are the backbone 

of USAID’s overseas workforce.

Introduction
USAID FY 2008 CITIZENS’ Report | INtroduction 3

Foreign Assistance Performance Reporting

In recent years, the United States significantly increased foreign assistance funding 

to its partners around the world. Foreign 

assistance reforms, initiated by Secretary 

of State Condoleezza Rice, enable the 

U.S. Government to improve stewardship 

of public resources and to achieve best 

results. The reforms, which include the 

alignment of Department of State and 

USAID strategic goals, provide direction 

by focusing U.S. foreign assistance on 

the ultimate goal of helping to build and 

sustain democratic and well-governed 

states that respond to the needs of their 

people and conduct themselves responsibly in the international community. 

USAID and the Department of State 

are committed to using performance 

management to promote greater transparency and accountability to their primary 

stakeholders, the American people. The 

two agencies have taken steps to improve 

the budget coordination and performance 

planning and reporting in order to achieve 

the most effective U.S. foreign policy and 

development outcomes. With the creation 

of the Joint Strategic Framework, USAID 

and the Department of State defined the 

goals of U.S. foreign policy and development assistance, and specifically, the 

strategic priorities within each of those 

goals for the coming years.

The distinct, though complementary 

missions of USAID and the Department 

of State make it difficult to accurately 

capture the scope of both agencies’ operations in a joint report. For this reason, 

USAID and the Department of State are 

issuing individual Citizens’ Reports and 

Annual Performance Reports for FY 2008.

Please note the following caveats related 

to 2008 performance of foreign assistance 

programs:

•	 First, the foreign assistance reform 

process is only in its third year. This 

year marks the second performance 

reporting cycle for the integrated 

USAID and Department of State 

indicators. Many of the indicators use 

2007 as the base line year; hence, it will 

take at least one more year before sufficient prior-year data for some performance indicators can be collected and 

associated trends analyzed to inform 

decision-making. 

•	 Second, the reforms are still generating 

important process changes to better 

coordinate USAID and the Department’s foreign assistance program 

planning and implementation. For 

example, beginning with the FY 2011 

budget cycle, the joint Department/

USAID initial resource request from 

each field mission must link directly 

to performance information, which 

will in turn inform the remainder 

of the full budget and performance 

cycle. The breadth and complexity 

of these programs precludes linking 

resources to each indicator individually, but the performance indicators are 

grouped under clearly defined strategic 

priority areas, which are in turn linked 

to budget requests and higher-level 

outcomes.

•	 Lastly, the foreign assistance reform 

effort, including the coordination 

of USAID and the Department’s 

budget and performance management 

processes, is complex and multifaceted, 

requiring collaboration, creativity, 

determination, and the ability and 

willingness to review and adjust these 

new processes as they are tested. 

Despite these challenges, the Administration believes the improved process 

and anticipated results are well worth 

the effort.

The resources we commit must empower developing countries to strengthen security, to consolidate 

democracy, to increase trade and investment, and to improve the lives of their people. America’s 

foreign assistance must promote responsible sovereignty, not permanent dependency.”

— Secretary Condoleezza Rice, January 19, 2006

“

Since 2002, some 100,000 Afghani 

students, 70% of whom are female, 

have benefited from U.S. assistance 

to rebuild schools in both provincial 

centers and rural areas. 

Photo: Daniel Wilkinson/State Department
4 USAID FY 2008 CITIZENS’ Report | INtroduction

Budget, Performance, and Financial Snapshot—Fiscal Year 2008

Who We Are

Mission. USAID accelerates human progress 

in developing countries by reducing poverty, 

advancing democracy, building market economies, promoting security, responding to crises, 

and improving quality of life. Working with 

governments, institutions, and civil society, we 

assist individuals to build their own futures by 

mobilizing the full range of America’s public and 

private resources through our expert presence 

overseas. The Agency’s Joint Strategic Plan with 

the Department of State can be found at www.

usaid.gov/policy/coordination/stratplan_fy07-12.

html. 

Organization. USAID is the U.S. Government’s lead institution for reducing poverty in 

the developing world. USAID pursues this aim 

by mobilizing the full range of U.S. public and 

private capabilities and resources and by linking 

those resources effectively with the governments 

and people served through an outstanding, 

on-the-ground presence. USAID implements 

programs in 88 countries through its five regional 

and three functional bureaus in Washington and 

more than 88 field missions. The Agency’s organization chart can be found at http://www.usaid.gov/

about_usaid/orgchart.html. 

Personnel. USAID’s workforce consists of 

approximately 8,000 individuals, more than 

75% of whom work overseas in field offices. 

The overseas workforce is typically composed 

of three major personnel categories: Foreign 

Service Officers (FSOs) including Foreign Service 

Limited appointments, Foreign Service Nationals 

(FSNs), and U.S. Personal Service Contractors 

and other non direct-hire Americans. Foreign 

Service employees are assigned to Missions for 

1 or 2-year tours, with many of the tours being 

two-tour posts. FSNs, both professional and 

support staff, recruited in their host countries 

make up approximately 80% of the USAID 

overseas workforce, providing institutional 

memory, local and cultural knowledge, and 

technical and operational know-how that is 

unique in international development agencies. 

Budgetary Resources. USAID-managed 

resources for FY 2008 totaled $13.9 billion, or 

approximately $46.39 per capita. This amount 

includes the FY 2008 653(a) base plus FY 2008 

enacted supplemental funds.

Budget Snapshot (In Millions)

Performance

Snapshot

Accomplishments. USAID’s performance 

scores on the President’s Management Agenda 

(PMA) improved significantly this year with 

Financial Performance, Human Capital Management, Performance Improvement, and Faithbased and Community initiatives achieving 

“green” rating for status and progress. Improved 

recruitment strategies resulted in hiring the largest 

number of FSOs in over 15 years in the shortest 

time frame. The Agency earned an unqualified opinion on its financial statements for the 

sixth consecutive year. Better outreach, in-reach, 

and capacity-building initiatives have resulted 

in greater opportunities for faith-based and 

community organizations to establish partnerships with USAID. The Agency disposed of 55 

assets abroad with total proceeds of $174 million 

since FY 2006. The Agency earned an A+ in 

information security for the fourth consecutive 

years. A USAID employee, Richard Greene, was 

recognized as the Federal Employee of the Year 

for his work on the President’s Malaria Initiative. 

Challenges. In the area of Financial Management, USAID continues to make necessary 

improvements to its accruals system for more 

accurate financial reporting. In the Acquisitions 

and Assistance area, the Agency is focusing on 

improving its functionality through advanced 

technology such as the introduction of the 

GLobal Assistance and Acquisition System and 

business process improvements within its resource 

constraints. To address staffing gaps arising from 

a disconnect between the pace of recruitment 

and an increase in overall funding, the Agency 

developed a Human Capital Strategic Plan and 

successfully launched a multiyear Development 

Leadership Initiative aimed at rebuilding a diverse 

workforce. In the area of Information Technology 

Management, the Agency is challenged by limited 

resources and issues of integrating and coordinating with other U.S. Government agencies to 

implement the Homeland Security Presidential 

Directive (HSPD-12).

0

2,000

4,000

6,000

8,000

10,000

0

2000

4000

6000

Total Spending FY 2005-2009 Top 5 Programs By Budget

2005 2006 2007 2008 2009

Mandatory — — — — — 

Discretionary $7,268 $8,309 $8,794 $9,368 $9,048

Total $7,268 $8,309 $8,794 $9,368 $9,048

 Health Education Infrastructure Protection, 

Assistance, and 

Solutions

 Good 

Governance

2008 $5,158.9 $920.6 $870.9 $817.6 $745.8

Footnote:(1) Top 5 Programs by Budget for FY 2008 refer to the top 5 Program Areas, and were determined by disaggregating USAID and Department of State combined foreign assistance budget 

data for FY 2008. The Global HIV/AIDS Initiative (GHAI) account is jointly administered by USAID and the Department of State. USAID implements approximately 60% of the GHAI account. 

Therefore, funding levels reflect this portion.(2) P.L. 480 funds are not included in funding levels. (3) Funding levels do not include funds attributed to crosscutting program support. Funding for crosscutting program support is drawn from all programs and is not fully articulated until operational plans are submitted.

Financial Snapshot ($ in Millions)

Clean Opinion on Financial Statements Yes

Timely Financial Reporting Yes Material Weaknesses 1

Improper Payment Rate 1% Total Assets $ 24,366

Total Liabilities $8,381 Net Cost of Operations $ 8,921
USAID FY 2008 CITIZENS’ Report | INtroduction 5

Ratings for Fiscal Year 2008

FY 2008 Performance Results per Strategic Goal:

n Met/Exceeded n Not met but improved over prior years n Not met target 

Budget per Strategic Goal 

($ in Millions)

Strategic Goal: Achieving Peace and Security

To strengthen the capability of the U.S. Government and of international 

partners to prevent or mitigate conflict, stabilize countries in crisis, promote 

regional stability, protect civilians, and promote the just application of the law.

1 Indicator

50%

1 Indicator

50% 2008 Actual

$930

Performance Measure(s)* 2006 

Results

2007 

Results

2008 

Target

2008 

Results

2009 

Target

Number of People Trained in Conflict Mitigation/Resolution 

Skills with U.S. Government Assistance N/A 17,965 5,449 12,578 24,574

Strategic Goal: Governing Justly and Democratically

Promote and strengthen effective democracies and move 

them along a continuum toward democratic consolidation. 3 Indicators

42.9%

2 Indicators

28.6%

2 Indicators

28.6%

2008 Actual

$1,709

Performance Measure(s)* 2006 

Results

2007 

Results

2008 

Target

2008 

Results

2009 

Target

Number of U.S. Government-Assisted Courts with Improved Case 

Management-Joint Indicator with the Department of State N/A 350 477 351 500

Strategic Goal: Investing in People

Focus on improving the lives of individual citizens by extending the basic 

values U.S. citizens hold dear: good health, access to quality education, 

and protection for vulnerable populations.

7 Indicators

58.3%

1 Indicator

8.3%

4 Indicators

33.3%

2008 Actual

$6,370

Performance Measure(s)* 2006 

Results

2007 

Results

2008 

Target

2008 

Results

2009 

Target

Number of People Receiving HIV/AIDS Treatment in 15 Focus 

Countries-Joint Indicator with the Department of State 822,000 1,358,500 1,700,000 2,007,800 2,000,000

Strategic Goal: Promoting Economic Growth and Prosperity

Achieve rapid, sustained, and broad-based economic growth for 

the United States, its trading partners, and developing countries. 4 Indicators

33.3%

8 Indicators

66.7% 2008 Actual

$2,640

Performance Measure(s)* 2006 

Results

2007 

Results

2008 

Target

2008 

Results

2009 

Target

Percent of U.S. Government-Assisted Microfinance Institutions 

that Have Reached Operational Sustainability 71 69 70 74 70

Strategic Goal: Providing Humanitarian Assistance

Providing protection, assistance, and solutions; preventing and mitigating 

disasters and promoting orderly and human means for migration management. 1 Indicator

25%

1 Indicator

25%

2 Indicators

50%

2008 Actual

$927

Performance Measure(s)* 2006 

Results

2007 

Results

2008 

Target

2008 

Results

2009 

Target

Percent of Targeted Disaster-Affected Households Provided with Basic 

Inputs for Survival, Recovery, or Restoration of Productive Capacity N/A 85 80 84 85

* This measure was selected from a number of performance measures aimed at the specific strategic goal
6 USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS

PERFORMANCE AND BUDGET HIGHLIGHTS

Overview

S

ecretary of State Condoleezza 

Rice’s vision of “transformational 

diplomacy” requires that U.S. 

diplomacy and foreign assistance function 

in an integrated fashion to advance the 

Nation’s security interests, its development efforts, and its democratic ideals. 

USAID’s joint strategic framework with 

the Department of State, anchored by 

the President’s National Security Strategy, 

defines the primary aims of U.S. foreign 

policy and development assistance. This 

framework is described in the agencies’ 

Joint Strategic Plan for Fiscal Years 2007-

2012. 

USAID has a proven record of managing 

for results and a long history of assessing 

its programs annually. Performance 

management represents the Agency’s 

commitment to improve development 

outcomes and to hold itself accountable 

to the American people. As illustrated in 

the chart, USAID follows a four-part 

performance management process: (1) 

planning and setting goals, (2) collecting 

data and analyzing results, (3) using data 

for decision-making, and (4) communicating results.

All USAID operating units are guided by 

Agency policies requiring that: (1) they 

develop and annually report progress 

toward their program objectives against a 

Performance Management Plan; (2) all 

performance data reported to the U.S. 

public are assessed on the merits of validity, 

integrity, precision, reliability, and timeliness; and (3) every program conducts at 

least one evaluation in its life cycle. 

Annual Performance Report at http://www.

usaid.gov/policy/budget/apr08/, includes full 

discussions of the FY 2008 performance, 

including robust analysis of the performance indicators, and a statement from the 

Performance Improvement Officer http://

www.usaid.gov/policy/budget/apr08/apr08_

piol.pdf. 

The President’s Management Agenda 

(PMA) is President Bush’s strategy for 

improving the management and perforA representative set of 37 indicators 

illustrate USAID’s FY 2008 performance. 

These indicators come from a variety of 

third party and primary data sources and 

reflect major areas of U.S. Government 

funding and foreign policy priorities. In 

FY 2008, USAID met or exceeded its 

targets for 40.5% of its performance 

indicators, improved over prior year, but 

did not meet 21.6% of its targets, and did 

not meet 37.9% of its targets, as illustrated 

in the chart below. The Agency’s 2008 

USAID FY 2008 PERFORMANCE RESULTS

Did not meet

target

 14 Indicators 

(37.9%) Met or Exceeded

Target

 15 Indicators 

(40.5%) Improved, but

did not meet target

 8 Indicators 

(21.6%)

USAID PERFORMANCE MANAGEMENT PROCESS
USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS 7

mance of the Federal Government. Since 

2001, USAID demonstrated steady 

improvement in its PMA ratings reflecting 

the Agency’s commitment to improving the 

performance and management of its 

programs. During FY 2008, Strategic 

Management of Human Capital, Improved 

Financial Performance, Performance 

Improvement, and Faith-based and 

Community initiatives scored “green” for 

current status while Commercial Services 

Management, Expanded Electronic Government, and Federal Real Property Asset 

Management initiatives scored “yellow.” 

USAID earned “green” on all aspects of 

progress against the PMA initiatives, the 

top rating an agency can receive from OMB 

on these scorecards. For more information 

on the PMA and USAID’s status, see http://

www.usaid.gov/policy/pma_fy08.html. 

USAID uses OMB’s Program Assessment 

Rating Tool (PART) to direct program 

improvements and hold managers accountable for those improvements. To date, 

OMB assessed 14 USAID programs with 

the PART, three of which are jointly administered with the Department of State. Of 

the 14 programs, 64% have been assessed as 

“Moderately Effective” and 36% as 

“Adequate.” In FY 2008, USAID met or 

exceeded 50% of its PART indicator 

targets, and improved over the prior year on 

44% of its performance targets. Ninety-one 

percent of USAID’s PART-assessed 

programs have at least one outcomeoriented measure; 100% have efficiency 

measures; and 100% of the improvement 

plans for FY 2008 have been completed on 

time. Independent evaluations affirm that 

81% of the programs are effective. For 

additional information on the PART 

assessments, see http://www.whitehouse.gov/

omb/expectmore/agency/184.html. 

The following chapters discuss the public 

benefits of and achievements in each of the 

five foreign assistance strategic goals areas, 

including representative indicators and 

their ratings. The scope and complexity of 

the Agency’s programs preclude directly 

linking resources to each indicator. 

However, the performance measures are 

grouped under clearly defined strategic 

priority areas, which in turn are linked to 

budget requests and higher level outcomes. 

For the FY 2008 net cost by program areas, 

see http://www.usaid.gov/policy/afr08/

usaidfy08afr_lowres_508.pdf (page 16).

USAID measures performance based on 

the assumption that results achieved in any 

given fiscal year draw on funding appropriated by Congress in the previous fiscal 

years, largely as a result of delays in the 

appropriations cycle and timing of funding 

transfers. Therefore, this report presents 

Agency-managed resources for two fiscal 

years, 2007-2008, for a fuller understanding 

of the budget that contributed to FY 2008 

results. FY 2009 targets are set at a preliminary level and will be updated when the 

FY 2009 budget is appropriated.

Agency-managed resources for FY 2007 

reflect the “actual” level, and for FY 2008 

reflect the 653(a) final base plus enacted 

supplemental level, as shown in the charts 

below. Both the fiscal year levels include 

60% of the GHAI account, but do not 

include P.L. 480 funds. The FY 2007 level 

does not include the Andean CounterDrug Program funds or $110 million of 

Economic Support Fund transfer from 

the Department of Defense.

FY 2007 USAID-MANAGED RESOURCES

Program Support

 7.17%

Providing Humanitarian

Assistance

 5.30%

Promoting Economic 

Growth and Prosperity

 23.02%

Achieving Peace and 

Security

 13.47%

Governing Justly and 

Democratically

 11.68%

Investing in People

 39.35%

USAID-Managed Resources

$12,712,484

FY 2008 USAID-MANAGED RESOURCES

Program Support

 7.3%

Providing Humanitarian

Assistance

 6.6% Promoting Economic 

Growth and Prosperity

 18.9%

Achieving Peace and 

Security

 6.7%

Governing Justly and 

Democratically

 12.2%

Investing in People

 45.6%

Unallocated Supplementals

(Georgia, Caribbean)

2.6%

USAID-Managed Resources

$13,965,426
8 USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS

Strategic Goal on Achieving

Peace and Security

Public Benefit

The United States promotes peace, 

liberty, and prosperity for all people 

by helping nations effectively 

establish the conditions and capacity for 

achieving peace, security, and stability. 

The security of U.S. citizens at home and 

abroad is best guaranteed when countries 

and societies are secure, free, prosperous, 

and at peace. To address peace and security 

concerns around the world, USAID, 

together with the Department of State, 

directly confronts threats to national 

and international security by working 

with other U.S. Government agencies 

and international partners to prevent 

or mitigate conflict, stabilize countries 

in crisis, promote regional stability, and 

protect civilians. The five program priority 

areas within this strategic goal are: Counterterrorism, Stabilization Operations and 

Security Sector Reform, Counternarcotics, 

Transnational Crime, and Conflict Mitigation and Reconciliation. 

USAID-MANAGED RESOURCES 

(In Thousands)

2008 2007

$ 930,214 $ 1,712,819

STRATEGIC GOAL 

PERFORMANCE 

In FY 2008, USAID-managed resources 

for the Peace and Security strategic goal 

were 6.7% of the total Agency budget 

for the year. Two representative indicators illustrate USAID program performance for this objective, of which one 

exceeded the performance target, and 

one did not meet the target. USAID 

conducted 15 evaluations, assessments, 

and special studies under this strategic 

goal in FY 2008. Of these, 47% were 

A Burundi woman being interviewed 

by a journalist from Studio Ijambo, a 

conflict resolution radio station. 

Photo: USAID

used to make programmatic decisions and 

47% were used to identify best practices 

and analyze lessons learned. For a fuller 

description of performance, data sources, 

and data quality, refer to the 2008 Annual 

Performance Report strategic goal chapter 

at http://www.usaid.gov/policy/budget/

apr08/apr08_psc.pdf. 

Counterterrorism. Terrorism is the 

greatest challenge to U.S. national security. 

Combating it will continue to be the focus 

of development, diplomatic, and defense 

efforts as long as the proponents of violent 

extremist ideologies find support in 

unstable and failing states. To complement 

other U.S. Government activities that build 

local capacity to combat terrorism, USAID 

uses public information campaigns as a 

strategy to prevent the recruitment of 

individuals into terrorist organizations. For 

example, in FY 2008 USAID’s Middle East 

Youth Media Initiative in partnership with 

an Egyptian television production company 

and the Middle East Broadcasting 

Company, the region’s largest satellite cable 

broadcaster, worked on developing an 

educational drama targeting 100 million 

young people in the region with messages 

about religious tolerance, the empowerment of young women, and civic activism. 

However, the performance target was not 

met in 2008 because the original strategy to 

create television programs for multiple age 

groups was revised to develop one program 

to target older youths who are particularly 

susceptible to recruitment by extremist 

groups. USAID also invests in the positive 

potential of the region’s youth though the 

Peace Scholars program which provides 

scholarships for up to 30 young people 

from the Middle East and North Africa for 

one year of undergraduate study in the 

United States. This year 22 students from 

seven countries were selected for the 

inaugural cohort.

Stabilization Operations and 

Security Sector Reform. Activities in 

this program area support U.S. Government and civilian partners’ participation 

in ongoing, existing, or potential operations, including peacekeeping, peace 

support, and humanitarian operations. 

USAID activities under this program area 

supported non-armed interventions to 

promote the security and fundamental 

rights of civilians caught in conflict and 

facilitated the economic and social 

re-integration of ex-combatants through 

community reconciliation and reparation 

activities. For example, in Iraq, Provincial 

Reconstruction Teams have been the 

primary vehicle for the delivery of U.S. 

and international foreign assistance. 

Another example is the effort to reintegrate Congolese ex-combatants into stable 

and productive community lives. 

Counternarcotics. USAID supports 

counternarcotics efforts through alternative development programs that promote 

sustainable and equitable economic 

growth alternatives in regions vulnerable 

to drug production and conflict. In 

Colombia, in FY 2008, USAID alternative development efforts exceeded its 
USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS 9

targets and assisted 217,214 families, 

created or supported 128,674 jobs, and 

supported the development of 155,219 

hectares of alternative crops. In Afghanistan, USAID’s projects promoted rural 

economic growth through marketable 

high-value commodities that provided 

alternative sources of income. In FY 2008, 

USAID-supported efforts in Afghanistan 

provided 109,000 individuals with 

agricultural, farm management, and 

business training; and benefited over 

123,000 families, including over 3,000 

women and 15 women’s organizations, 

resulting in almost $23 million in 

increased sales of licit farm products.

Transnational Crime. Activities in this 

area contribute to decreasing and minimizing cross-border crimes that threaten 

the stability of countries, particularly 

where criminal activities involve crossborder connections or have cross-border 

effects. The trafficking of persons is fueled 

by demand for cheap labor and by 

commercial sexual exploitation and is 

exacerbated by porous borders. The U.S. 

Government encourages partnership and 

increased vigilance in the fight against 

forced labor, sexual exploitation, and 

modern-day slavery. USAID plays a 

leading role in coordinating and directing 

activities to combat trafficking in persons, 

contributing to the U.S. Governmentwide anti-trafficking mission. 

Conflict Mitigation and Reconciliation. Mitigating, managing, and 

responding to violent conflict are priority 

areas for USAID assistance. Activities in 

this area seek to lessen the threat of 

violent conflict by promoting the peaceful 

resolution of differences, reducing 

violence that has already broken out, or 

establishing a framework for peace and 

reconciliation in an ongoing conflict. If 

ignored, such conflicts will have a 

significant negative impact on national 

stability and development and threaten 

USAID’s programmatic investments and 

U.S. national interests. Training and 

technical assistance programs strengthened local capacity to resolve land 

disagreements and to involve young 

people in peace and reconciliation 

programs. In FY 2008, by training 12,578 

people in conflict mitigation and resolution skills, USAID significantly exceeded 

its target of training 5,449 people. 

Specifically, Uganda, Haiti, and Kosovo 

had very successful training programs.

Representative

Performance Indicator

2005 

Results1

2006 

Results1

2007 

Results

2008 

Target

2008 

Results

2008 

Rating

2009

Preliminary

Target2

Number of Public Information Campaigns 

Completed (Counterterrorism) N/A N/A 14 29 1 Not Met 40

Number of People Trained in Conflict 

Mitigation/Resolution Skills N/A N/A 17,965 5,449 12,578 Met/

Exceeded 6,000

1. FY 2007 was the first reporting cycle under the new Foreign Assistance Framework. A full cycle of performance data for indicators under the framework, including past year results, is 

therefore available in 2008.

2. FY 2009 targets are set at a preliminary level and will be updated when the FY 2009 budget is appropriated.

Rating: n = met or exceeded; n = improved over prior, but not met; n = not met target

Voices From The Field

Women’s Group Connects Elected Officials and Internally 

Displaced Persons. Elected officials in Burnt Forest, near Eldoret, Kenya, 

have been criticized for not visiting the Rukuini internally displaced persons 

(IDP) camp in the town. Animosities between various ethnic groups prevent 

government officials from participating in reconciliation efforts. Prior to the 

January 2008 election, ethnic communities coexisted in relative peace but the 

underlying mistrust became apparent during post-election violence. USAID

worked with the Rural Women’s Peace Link (RWPL) to create opportunities 

for reconciliation, using women and youth as key entry points. Despite initial 

resistance, during follow-up visits RWPL members were welcomed with open 

arms. Following a dialogue between council members and camp residents, the 

council’s chairman said, “The visit opened my eyes to the plight of IDPs, my 

own constituents. Now that IDPs have embraced peace, I have realized there 

is hope for peaceful coexistence, and I am determined to make a difference.” 

In the aftermath, USAID expanded its conflict mitigation and reconciliation 

program to include 13 new partners, for a total of 15, who will use lessons 

learned from the crisis to contribute to a draft National Policy on Conflict 

Management and Peace Building.
10 USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS

Strategic Goal on Governing Justly

and Democratically

Public Benefit

The U.S. Government supports just 

and democratic governance as a 

matter of principle, to advance 

U.S. national security, and as an integral 

part of the broader U.S. development 

agenda. Governments that respect human 

rights, respond to the needs of citizens, 

and govern by the rule of law are more 

likely to conduct themselves responsibly 

toward other nations. Furthermore, 

effective democratic states are best able 

to promote broad-based and sustainable 

prosperity. The four priority program areas 

within this strategic goal are: Rule of Law 

and Human Rights, Good Governance, 

Political Competition and Consensusbuilding, and Civil Society. 

USAID-MANAGED RESOURCES 

(In Thousands)

2008 2007

$ 1,709,595 $ 1,484,899

STRATEGIC GOAL 

PERFORMANCE 

In FY 2008, USAID-managed resources for 

the Governing Justly and Democratically 

strategic goal were 12.2% of the total 

Agency budget. For seven representative 

indicators, USAID met or exceeded three 

performance targets and did not meet four 

targets. For two of the latter, USAID 

improved performance over FY 2007. 

USAID conducted 97 evaluations, 

assessments, and special studies under this 

strategic goal in FY 2008, which represents 

21.5% of the Agency’s total. Of these, 34% 

helped make programmatic decisions and 

45% were used to identify best practices 

and analyze lessons learned. For a complete 

description of performance, data sources, 

and data quality, please refer to the 2008 

Annual Performance Report strategic goal 

chapter at http://www.usaid.gov/policy/

budget/apr08/apr08_gjd.pdf. 

Rule of Law and Human Rights.

This program area advances human rights 

and promotes accountability to laws 

consistent with international standards 

through training justice personnel. In 

FY 2008, USAID exceeded its target of 

training 50,309 justice sector personnel 

due in part to training on a new Trafficking in Persons law in Mexico. 

Improved case management increases the 

efficiency, compliance, and accountability 

of justice systems, specifically decreasing 

case backlog and disposition times, 

reducing administrative burdens on 

judges, increasing transparency of judicial 

procedures, and improving compliance 

with procedural law. Program results in 

this area are achieved jointly by USAID 

and the Department of State in 19 

countries. In FY 2008, 351 U.S. Government-assisted courts reported improved 

case management, improving performance 

over 2007, but fell short of the 2008 

target, in part due to reductions in 

Department of State funding in Africa. 

Good Governance. The U.S. Government promotes effective government 

institutions through activities that support 

public oversight and institutional checks 

and balances. USAID tracks government 

effectiveness in five Middle Eastern 

countries using the World Bank’s 

Worldwide Governance Indicators which 

show slight improvements for Jordan and 

Iraq in 2008, and declines for Egypt, the 

West Bank/Gaza, and Lebanon.

Political Competition and 

Consensus-Building. Assistance in this 

area supports peaceful political competition and a representative political process. 

An open and competitive electoral system 

is a fair barometer of the health of 

democratic institutions and values. Free 

and fair elections give citizens a voice in 

the transfer of power, assisted through 

monitoring by trained domestic election 

observers. In 2008, USAID fell short of 

its target of training 27,536 domestic 

election observers, as a result of a 

reduction in the number of elections to be 

monitored overall, and a shift of priorities 

in the Philippines from election monitoring to election administration. USAID 

A K’iche’ woman proudly displays 

her ink stained finger after voting in 

Guatemala’s rural highlands. USAID 

assistance increased inclusion of rural 

indigenous women voters, improved 

election logistics, implemented 

public information campaigns, 

and supported a national election 

observation effort in Guatemala.

Photo: Maureen Taft-Morales / USAID
USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS 11

also works to increase the participation of 

underrepresented groups in politics, and 

an increase in the number of women in 

politics is used as a proxy to measure 

increased access for all underrepresented 

groups. In FY 2008, 130 U.S. Government-assisted political parties implemented programs promoting women’s 

political participation, which is an 

improvement over 2007, but short of the 

target of 152 parties.

Civil Society. The U.S. Government 

seeks to strengthen democracy by 

supporting the means through which 

citizens can freely organize, advocate, and 

communicate. By monitoring the number 

of U.S.-assisted civil society organizations 

(CSOs) engaging in advocacy and 

watchdog functions, USAID can gauge its 

effectiveness in improving CSOs’ ability 

to impact public participation in government decision-making. In FY 2008, 1,315 

U.S.-assisted CSOs engaged in these 

functions, exceeding the target of 1,223. 

The sustainability of the non-governmental organization (NGO) sector is 

another measure of the strength of civil 

society and democratic governance. The 

NGO Sustainability Index for Europe and 

Eurasia monitors the progress of U.S. 

Government-assisted NGO sectors in 

seven areas: legal environment, organizational capacity, financial viability, 

advocacy, service provision, infrastructure, 

and public image. NGO sectors in Europe 

met the target improvement, collectively 

increasing sustainability over the prior 

year. NGO sector sustainability in Eurasia 

remained mostly stable through 2007, 

falling short of the targeted improvement.

Representative

Performance Indicator

2005 

Results1

2006 

Results1

2007 

Results

2008 

Target

2008 

Results

2008 

Rating

2009

Preliminary

Target4

Number of Justice Sector Personnel Who 

Received U.S. Government Training N/A N/A 110,041 50,309 56,001 Met/

Exceeded 60,000

Number of U.S. Government-Assisted Courts 

with Improved Case Management2 N/A N/A 350 477 351 Improved 500

Number of Domestic Election Observers 

Trained with U.S. Government Assistance N/A N/A 53,258 27,536 24,629 Not Met 30,000

Number of U.S. Government-Assisted Political 

Parties Implementing Programs to Increase the 

Number of Candidates and Members Who are 

Women

N/A N/A 127 152 130 Improved 162

Number of U.S. Government-Assisted Civil 

Society Organizations that Engage in Advocacy 

and Watchdog Functions

N/A N/A 1,039 1,223 1,315 Met/

Exceeded 1,300

Europe NGO Sustainability Index3

3.8 3.8 3.8 3.7 3.7 Met/

Exceeded 3.6

Eurasia NGO Sustainability Index3 4.5 4.6 4.6 4.5 4.6 Not Met 4.5

1. FY 2007 was the first reporting cycle under the new Foreign Assistance Framework. A full cycle of performance data for indicators under the framework, including past year results, is 

therefore available in 2008.

2. Program results for this indicator are achieved jointly by USAID and the Department of State.

3. Results for this indicator are based on prior year data, i.e., 2008 results are based on 2007 data. 

4. FY 2009 targets are set at a preliminary level and will be updated when the FY 2009 budget is appropriated. 

Rating: n = met or exceeded; n = improved over prior, but not met; n = not met target

Voices From The Field

Promoting Free Media. A 

USAID-funded program in Tanzania 

trained 250 journalists on a recently 

formed public expenditure tracking 

process which resulted in over 600 

stories in the media on corruption, 

good governance, and accountability. 

The most profound impact of the 

project occurred between January 

and June 2008 when the media 

exposed several corruption scandals. 

As a result, four cabinet ministers, 

including Tanzania’s powerful Prime 

Minister, reluctantly resigned.
12 USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS

Strategic Goal on Investing in People

Public Benefit

Disease and lack of education 

destroy lives, ravage societies, 

destabilize regions, and deprive 

future generations of prosperity and 

participation in democracy. The U.S. 

Government’s strategic approaches to 

this goal help nations achieve sustainable improvements in the well-being and 

productivity of their citizens and build 

sustainable capacity in recipient countries 

to provide services that meet people’s 

needs. The three priority program areas 

within this goal are: Health, Education, 

and Social Services and Protection for 

Especially Vulnerable Populations. 

USAID-MANAGED RESOURCES 

(In Thousands)

2008 2007

$ 6,370,419 $ 5,002,922

STRATEGIC GOAL 

PERFORMANCE 

In FY 2008, USAID-managed resources for 

the Investing in People strategic goal were 

45.6% of the Agency’s total budget for 

the year. Twelve representative indicators 

illustrate USAID program performance for 

this goal, of which seven met or exceeded 

the performance targets; four improved 

performance over the prior year but did 

not meet the targets; and one did not meet 

the target. HIV/AIDS results are jointly 

achieved by USAID and other U.S. 

Government agencies, such as the Departments of State and Health and Human 

Services (HHS). USAID conducted 219 

evaluations, assessments, and special studies 

in this strategic goal area in FY 2008. Of 

these, 52% were used to make programmatic decisions and 44% were used to 

identify best practices and analyze lessons 

learned. For a fuller description of performance, data sources, and data quality, refer 

to the 2008 Annual Performance Report

strategic goal chapter at http://www.usaid.

gov/policy/budget/apr08/apr08_iip.pdf. 

Health

Activities in this program area improve 

child, maternal, and reproductive health; 

prevent and treat infectious diseases and 

other public health threats; and increase 

access to improved drinking water and 

sanitation services. Critical interventions combat HIV/AIDS, tuberculosis, 

malaria, avian influenza, neglected 

tropical diseases, polio, pneumonia, and 

diarrhea. Mothers and children are two 

special target groups for most of these 

interventions. As an integral part of health 

programming, U.S. Government investments strengthen local capacity in disease 

outbreak detection and response; improve 

delivery of health services, essential drugs, 

and commodities; and support advances 

in health technology. Ten representative 

indicators illustrate USAID program 

performance for this area. The Agency 

met or exceeded six of these performance 

targets; improved over prior year, but did 

not meet three targets; and did not meet 

one target.

HIV/AIDS. The President’s Emergency 

Plan for AIDS Relief program is a comprehensive approach to HIV/AIDS prevention, treatment, and care in developing 

countries that is undertaken in close 

partnership with host country governments and national and international 

partners. The Emergency Program targets 

15 “focus” countries as well as additional 

bilateral programs around the world. The 

15 focus countries are: Botswana, Cote 

d’Ivoire, Ethiopia, Guyana, Haiti, Kenya, 

Mozambique, Namibia, Nigeria, Rwanda, 

South Africa, Tanzania, Uganda, Vietnam, 

and Zambia In FY 2008, the Emergency 

Plan program treated over 2.0 million 

individuals with anti-retrovirals, exceeding 

the target of 1.7 million individuals. The 

Program exceeded its target of 8.2 million, 

providing care to 9.7 million people 

affected by HIV/AIDS, including support 

to nearly 4 million orphans and vulnerable children. The program exceeded its 

targets as a result of rapid scale-up of these 

programs in partnership with host nations. 

Tuberculosis (TB). The focus of 

USAID’s TB program is to combat 

multi-drug resistant TB (MDR-TB) and 

extremely drug resistant TB (XDR-TB). 

A strong Directly Observed Treatment 

Short-course program is the primary 

defense against development of MDR-TB 

These Ugandan children will 

be protected from malariatransmitting mosquitoes 

while they sleep under an 

insecticide-treated bed net. 

The nets save lives by repelling 

and blocking mosquitoes which 

primarily feed at night, spreading malarial parasites. USAID 

leads the President’s Malaria 

Initiative to halve malarial 

deaths in 15 African countries 

over five years.

Photo: © 2007 Gilbert Awekofua, 

courtesy of Photoshare
USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS 13

and XDR-TB. Resources are used to 

conduct drug resistance surveys, introduce 

and help scale-up effective infection 

control practices, and build desperately 

needed national laboratory capacity. In 

FY 2008, the TB program was unable 

to meet its targets for increasing the 

treatment success and case detection rates 

due to the high rates of HIV co-infection, drug resistance, and especially the 

continuing internal conflicts disrupting 

health services in the Democratic 

Republic of Congo. 

Malaria. In June 2005, President Bush 

launched the President’s Malaria Initiative 

(PMI), pledging to increase U.S. Government funding by more than $1.2 billion 

over five years to reduce deaths due to 

malaria by 50% in 15 African countries. 

This increased funding enables the U.S. 

Government to expand the PMI program 

at an accelerated level to achieve the President’s target. The two critical emphases of 

PMI are insecticide-treated mosquito nets 

and indoor residual spraying, which when 

properly used are the best ways to prevent 

malaria infections and are proven and 

highly effective malaria control measures. 

In FY 2008, PMI protected about 25 

million people against malaria, meeting 

the year’s target. 

Maternal and Child Health. This 

program aims to increase the availability 

and use of proven life-saving interventions 

that address the major killers of mothers 

and children. These interventions include 

effective maternal and newborn care; 

management of obstetric complications; 

routine immunization; polio eradication; 

micronutrients; and improved maternal, 

infant, and young child feeding. In 

FY 2008, progress in this area contributed to an increase in global coverage 

for the third dose of diphtheria/pertussis 

(whooping cough)/tetanus vaccine. 

Nearly 3.4 million premature deaths were 

averted from 2000 to 2008 through the 

USAID-supported Global Alliance for 

Vaccine Initiative, an increase of 600,000 

deaths averted compared to the previous 

estimate. In addition, the use of skilled 

birth attendants increased considerably in FY 2008, more than doubling in 

Nepal, Indonesia, Bangladesh, and Egypt. 

Increasing the frequency of attendance of 

skilled birth attendants is more likely to 

result in timely recognition of complications, initiation of treatment, and lives 

saved. Population surveys found that 

48.2% of births were attended by skilled 

birth attendants during FY 2008, slightly 

exceeding the target of 47.8%.

Family Planning and Reproductive 

Health. This program aims to expand 

access to high-quality, voluntary family 

planning services and information and 

to reproductive health care, in order 

to reduce unintended pregnancy and 

promote healthy reproductive behaviors. 

Use of modern contraception increases 

and birth spacing improves when people 

know about the health and other benefits 

of family planning and where they can 

obtain voluntary family planning services; 

when such services are easily accessible 

and of high quality; when a wide range of 

temporary, long-acting, and permanent 

methods are available and affordable; and 

when family planning use is an accepted 

normative behavior. Forty-nine percent of 

births in FY 2008 were spaced more than 

three years apart, the healthiest interval 

for infants and mothers, exceeding the 

target of 48.6%. 

Water Supply and Sanitation.

Access to clean, reliable, and economically sustainable drinking water supply is 

key to a country’s ability to attain health, 

security, and prosperity for its population. 

This access is achieved through diverse 

approaches, including both direct support 

for small and large-scale infrastructure 

development, as well as indirect support 

in institutional development, communitybased systems, demand creation, facilitation of private sector supply of products 

and services, and financing to ensure 

long-term sustainability and expansion of 

access. The representative indicator on the 

number of new people who gained access 

to an improved water source improved 

over the prior year but did not meet the 

target, primarily because of a delay in the 

start-up of the program in India, and the 

suspension of all regularly planned water 

and sanitation activities in Bangladesh, 

due to Cyclone Sidr, as partners focused 

on emergency responses. 

Education

Education activities promote the creation 

and maintenance of effective, equitable, 

high quality educational services and 

systems, from primary education and 

literacy programs to strengthening the 

institutional capacities of public and 

private higher educational institutions. 

Investments in basic education generally 

yield high returns, particularly in the 

developing world, through improvements 

USAID-funded educational programs have 

provided better books 

for teachers to use to 

educate Egypt’s school 

children

Photo: BEN BARBER/USAID
14 USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS

in labor productivity and participation in 

democratic processes, as well as improved 

health. All programs dedicate special focus 

to reducing the barriers to education for 

girls. The FY 2008 results improved over 

the prior year, but did not meet the target 

because a few countries like Indonesia 

and Uganda shifted focus to a limited 

number of schools to ensure long-term 

sustainability of the programs, reducing 

the number of new learners enrolled 

in schools. However, India demonstrated notable success as implementing 

partners worked with state governments 

and private sector entities to scale up 

successful education interventions.

Representative

Performance Indicator

2005 

Results1

2006 

Results1

2007 

Results

2008 

Target

2008 

Results

2008 

Rating

2009

Preliminary

Target3

Number of People Receiving HIV/AIDS 

Treatment in the 15 Focus Countries2 401,233 822,000 1.3M 1.7M 2.0M Met/

Exceeded 2.0M

Number of People Receiving HIV/AIDS Care 

and Support in the 15 Focus Countries2 2.9 M 4.4M 6.6M 8.2M 9.6M Met/

Exceeded 10.0M

Number of Countries Achieving a Tuberculosis 

Treatment Success Rate of 85% or Greater 4 6 7 8 7 Not Met 9

Number of Countries Achieving a Tuberculosis 

Case Detection Rate of 70% or Greater 1 3 3 5 4 Improved 7

Number of People Protected Against Malaria 

with a Prevention Measure in President’s 

Malaria Initiative Countries

N/A 3.7M 22.3M 25.0M 25.0M Met/

Exceeded 30.0M

Percentage of Children with DPT 3 Coverage 60.4% 61.1% 60.5% 61.5% 61.7% Met/

Exceeded 62.0%

Percentage of Live Births Attended by 

Skilled Birth Attendants 46.8% 47.8% 47.7% 47.8% 48.2% Met/

Exceeded 48.3%

Modern Contraceptive Prevalence Rate 36.9% 37.9% 38.6% 39.9% 39.2% Improved 40.9%

Percentage of Births Spaced Three or More 

Years Apart 46.8% 47.6% 48.8% 48.6% 49.0% Met/

Exceeded 49.3%

Number of People in Target Areas with 

Access to Improved Drinking Water Sources N/A N/A 2.1M 3.4M 3.0M Improved 5.5M

Number of Learners Enrolled in U.S. 

Government-Supported Primary Schools 

or Equivalent Non-School-Based Settings, 

Disaggregated by Sex

N/A N/A

27.1M

(48% 

girls)

31.8M

(48% 

girls)

28.3M 

(47% 

girls)

Improved 30.0M 

(49% girls)

Number of People Benefiting from 

U.S. Social Services and Assistance N/A N/A 1.8 M 2.7M 5.3M Met/

Exceeded 3.0M

1. FY 2007 was the first reporting cycle under the new Foreign Assistance Framework. A full cycle of performance data for indicators under the framework, including past year results, is 

therefore available in 2008.

2. HIV/AIDS results are achieved jointly by USAID and other U.S. Government agencies, such as the Departments of State and HHS.

3. FY 2009 targets are set at a preliminary level and will be updated when the FY 2009 budget is appropriated.

Rating: n = met or exceeded; n = improved over prior, but not met; n = not met target

Social Services and 

Protection for Especially 

Vulnerable Populations 

Activities in this program area help 

manage risks and gain access to opportunities that support vulnerable populations’ full and productive participation in 

society. Social services assist those whose 

needs are not addressed under humanitarian assistance or other programs, 

facilitating a transition from humanitarian 

relief to longer-term development and 

growth where needed. The representative 

indicator for this program tracks improvement in the coverage of a nation’s social 

assistance and social service programs 

for vulnerable people and is also a proxy 

indicator of a government’s commitment 

to poverty reduction. USAID exceeded 

its FY 2008 target because countries like 

Armenia and West Bank/Gaza saw a sharp 

increase in their recipient populations. 

Furthermore, an additional 14 countries 

submitted FY 2008 results for this 

indicator that were not part of the original 

FY 2008 target countries, increasing the 

number of people benefiting from USAID 

services by another 1.36 million.
USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS 15

Strategic Goal on Promoting

Economic Growth and Prosperity

Public Benefit

The United States benefits from 

a stable, resilient, and growing 

world economy. USAID programs 

promote economic transformation that 

creates more jobs; higher productivity 

and wages; improved working conditions; 

more effective protection of labor rights; 

and more opportunities for the poor, 

women, and other disadvantaged groups 

to participate in expanding markets. The 

eight priority program areas within this 

goal are: Macroeconomic Foundation for 

Growth, Trade and Investment, Financial 

Sector, Infrastructure, Agriculture, Private 

Sector Competitiveness, Economic 

Opportunity, and the Environment. 

USAID-MANAGED RESOURCES 

(In Thousands)

2008 2007

$ 2,640,464 $ 2,926,607

STRATEGIC GOAL 

PERFORMANCE 

In FY 2008, USAID-managed resources 

for the Promoting Economic Growth and 

Prosperity strategic goal were 18.9% of the 

total Agency budget. Twelve representative 

indicators illustrate USAID program 

performance for this goal, of which four 

met or exceeded the performance targets, 

and eight did not meet the targets. USAID 

conducted 117 evaluations, assessments, 

and special studies in this strategic goal. 

For a complete description of performance, 

data sources, and data quality, refer to the 

2008 Annual Performance Report strategic 

goal chapter, at http://www.usaid.gov/policy/

budget/apr08/apr08_eg.pdf. 

Macroeconomic Foundation for 

Growth. Macroeconomic stability, 

including sound fiscal policy, is essential 

for sustainable economic growth. The 

U.S. Government strengthens foundations for growth by establishing a stable 

and predictable macroeconomic environment. To monitor long-term performance 

in this program area, USAID tracks the 

ratio of deficit to gross domestic product 

(GDP). The most recent data available is 

for the period 2004-2006, when the ratio 

was 3.2%.

Trade and Investment. Trade and 

investment are the principal mechanisms 

through which the market forces of 

competition and innovation generate 

economic growth. To assess progress in 

this area, USAID tracks World Bank data 

on the number of days needed to import 

and export goods in countries that receive 

assistance. In FY 2008, USAID missed 

the target of 33 days by one day due in 

part to the deteriorating security situation 

in Afghanistan, which disproportionately 

impacted the overall result.

Financial Sector. USAID is committed 

to improving corporate governance, 

financial transparency, and to combating 

corruption. USAID assistance improves 

financial sector governance and access 

to financial services for entrepreneurs, 

enterprises, and consumers. To track 

progress of assisted countries in this area, 

USAID monitors a World Bank indicator, 

credit to the private sector as a percent of 

GDP. The FY 2008 result, 53.3%, fell short 

of the target of 58.5% due in part to the 

downturn in the global economy, which 

has reduced lending to the private sector. 

Infrastructure. USAID supports the 

creation, improvement, and sustainability 

of physical infrastructure to improve 

economic productivity. The four indicators 

in this program area measure access to 

modern energy services, cellular and 

Internet service, as well as transportation 

infrastructure projects. In FY 2008, USAID 

did not meet its target due to delays in 

program start-ups and significant spikes in 

the prices of oil and other energy products.

Agriculture. USAID promotes expanded 

agricultural trade and market systems and 

broadened application of scientific and 

technological advances. In FY 2008, 3.42 

million rural households benefited directly 

from U.S. Government interventions in 

agriculture, exceeding the target. USAID 

agricultural assistance also works to lower 

barriers of trade. USAID increased the 

Road rehabilitation 

in Afghanistan makes 

goods and services more 

accessible to families 

and businesses, and 

allows local producers 

to sell to wider markets.
16 USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS

percent change in value of international 

exports of targeted agricultural commodities 

to 63.3%, exceeding the target of 37.8%. 

Private Sector Competitiveness.

USAID’s activities in this program area 

provide assistance to countries to improve 

policies, laws, and regulations affecting 

the private sector’s ability to compete 

nationally and internationally. The 

indicator, number of commercial laws 

put into place with U.S. Government 

assistance, reflects efforts to put laws in 

place to streamline business regulations 

and improve commercial governance. 

In FY 2008, the target was not met.

Representative

Performance Indicator

2005 

Results1 2006 Results1 2007 Results

2008 

Target

2008 

Results

2008 

Rating

2009

Preliminary

Target3

Time Necessary to Comply with Procedures 

Req. to Export/Import Goods (days) 89.9 36.6 34 33 34 Not Met 28

Credit to Private Sector as a Percent of GDP 54.9% 54.4% 57.7% 58.5% 55.3% Not Met 59.0%

No. of People with Increased Access to 

Modern Energy Services2 N/A N/A 1.87M 436,280 371,409 Not Met 450

No. of People with Access to Cellular Service2 N/A N/A 4.8M 5.7M 1.89M Not Met 2.0

No. of People with Access to Internet Service2 N/A N/A 6.55M 6.68M 1.5M Not Met 2.0

No. of People Benefiting from U.S. 

Government-Sponsored Transportation 

Infrastructure Projects

N/A N/A 1.77M 459,467 68,758 Not Met 100,000

No. of Rural Households Benefiting Directly 

from U.S. Interventions in Agriculture N/A N/A 1.88M 2.15M 3.42M Met/

Exceeded 2.20M

Percent Change in Value of International 

Exports of Targeted Agricultural Commodities N/A N/A 41.1% 37.8% 63.3% Met/

Exceeded 42.0%

No. of Commercial Laws Put into Place that 

Fall in the 11 Core Legal Categories for a 

Healthy Business Environment

N/A N/A 41 47 30 Not Met 35

Percent of U.S. Government-Assisted 

Microfinance Institutions that have Reached 

Operational Sustainability

71% 71% 69% 70% 74% Met/

Exceeded 70%

Quantity of Greenhouse Gas Emissions 

Reduced or Sequestered (million metric tons) 117 129 180 149 142(est.) Not Met 159

No. of Hectares under Improved National 

Resource or Biodiversity Management 

(millions)

N/A N/A 121.61 113 126 Met/

Exceeded 150

1. FY 2007 was the first reporting cycle under the new Foreign Assistance Framework. A full cycle of performance data for indicators under the framework, including past year results, is 

therefore available in 2008.

2. Program results for this indicator are achieved jointly by USAID and the Department of State.

3. FY 2009 targets are set at a preliminary level and will be updated when the FY 2009 budget is appropriated.

Rating: n = met or exceeded; n = improved over prior, but not met; n = not met target

Economic Opportunity. Activities 

include efforts to enhance the incomegenerating prospects of poor households, 

as well as efforts to ensure that these 

households can accumulate and protect 

productive assets. USAID supports 

microfinance institutions (MFI) that 

provide financial services to those who 

would otherwise lack access. The Agency’s 

performance indicator reflects the share of 

USAID-assisted MFIs that have attained 

operational sustainability. The FY 2008 

result, 74% of USAID-assisted MFIs 

reached operational sustainability, 

exceeded the target. 

Environment. Environmental issues 

such as climate change, the protection of 

natural resources and forests, and transboundary pollution continue to play 

increasingly critical roles in U.S. diplomatic and development agendas. In 

FY 2008, USAID did not meet the target 

of 149 million metric tons of greenhouse 

gas emissions reduced or sequestered. 

However, 126 million hectares were under 

improved natural resource or biodiversity 

management as a result of USAID 

assistance, exceeding the target.
USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS 17

Strategic Goal on Providing

Humanitarian Assistance

Public Benefit

The U.S. Government’s commitment to humanitarian response 

demonstrates the Nation’s compassion for victims of natural disasters, armed 

conflict, forced migration, persecution, 

human rights violations, widespread 

health and food insecurity, and other 

threats. Providing humanitarian assistance 

requires urgent responses to rapid-onset 

emergencies, concerted efforts to address 

hunger and protracted crisis situations, 

and the ability to build capacity to prevent 

and mitigate the effects of conflict and 

disasters. The two priority program areas 

within this strategic goal are: Providing 

Protection, Assistance, and Solutions; and 

Disaster Readiness. Regional priorities 

include addressing the acute and ongoing 

needs in Burma, Chad, Colombia, Darfur, 

Iraq, Somalia, and the West Bank/Gaza. 

USAID-MANAGED RESOURCES 

(In Thousands)

2008 2007

$ 927,376 $ 673,860

STRATEGIC GOAL 

PERFORMANCE 

In FY 2008, USAID-managed resources 

supporting the Humanitarian Assistance 

strategic goal were 6.6% of the total 

Agency budget. Four indicators illustrate 

USAID program performance for this goal, 

one of which exceeded the performance 

target, two improved performance over the 

prior year but did not meet the targets, and 

one did not meet the target. In FY 2008, 

USAID conducted three evaluations, assessments, and special studies in this strategic 

goal. For a complete description of 

performance, data sources, and data 

quality, refer to the 2008 Annual Performance Report strategic goal chapter at 

http://www.usaid.gov/policy/budget/apr08/

apr08_ha.pdf. 

Provide Protection, Assistance, 

and Solutions. U.S. Government 

assistance provides life-saving disaster 

relief, including protection, food aid, and 

other humanitarian assistance to people 

affected by natural disasters and complex, 

human-made crises. Assistance activities 

include distributing food aid and other 

relief supplies to affected populations; 

providing health services, including 

feeding centers; and providing clean water 

and shelter materials. Certain displaced 

populations require support for many 

years, and humanitarian assistance 

helps them become as self-supporting 

as possible.

Nutritional status is a key indicator for 

assessing the severity of humanitarian 

crisis. An internationally accepted 

indicator, the global acute malnutrition 

(GAM) rate measures the nutritional 

status of vulnerable populations. The 

first performance indicator in the table 

highlights the percent of USAID-monitored sites with dispersed populations 

(IDPs and victims of conflict) worldwide 

with a GAM rate of less than 10%. In 

FY 2008, the result for this indicator, 

34%, fell short of the target. The major 

reason was an increased number of 

monitored sites in Chad, Ethiopia, Niger, 

Pakistan, Somalia, and Sudan with GAM 

levels higher than 10%. Another major 

contributor is that from 2000-2006 

Sudan had an average 16% GAM rate. 

Achieving a GAM rate below 10% in 

Sudan requires beating the overall country 

GAM average in its most vulnerable 

communities—a highly improbable 

occurrence. 

USAID dispatched a Disaster 

Assistance Response Team soon after 

Cyclone Sidr struck Bangladesh, and 

provided more than $19 million for 

relief and early recovery efforts.

Photo: Sue McIntyre / USAID

Voices From The Field

Storm Relief. To date, USAID

provided more than $28 million for 

emergency relief commodities and 

programs toward mitigating the 

impact of Cyclone Nargis in Burma. 

USAID commodities such as hygiene 

kits, plastic sheeting, mosquito nets, 

water containers, water treatment 

units, Zodiac boats, and water 

storage bladders benefited at least 

445,000 individuals. Additionally, 

USAID provided $29 million 

worth of humanitarian assistance 

in response to hurricanes in Haiti. 

In September 2008 alone, USAID

air-lift deliveries of emergency relief 

supplies to Port-au-Prince benefited 

more than 200,000 people.
18 USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS

From the broadest perspective, all 

humanitarian assistance has a protection 

component. Efforts to protect vulnerable 

populations derive from international 

refugee, human rights, and humanitarian 

laws, and include activities to reduce or 

manage risks to those populations. The 

second performance indicator highlights 

the percent of targeted beneficiaries 

assisted by protection and solution 

activities funded by USAID. In FY 2008, 

USAID improved its performance over 

FY 2007, reaching 77% of beneficiaries. 

USAID did not meet the target of 80% 

due to a lack of access to protection and 

solution activities on the part of beneficiaries, particularly in Afghanistan, Sri 

Lanka, and Sudan.

USAID prioritizes emergency food aid to 

reach the most vulnerable populations. 

The third performance indicator, which is 

also tracked by the PART, measures the 

percent of planned emergency food aid 

beneficiaries reached by USAID. In 

FY 2008, USAID’s emergency food aid 

reached more than 25 million people, or 

92% of planned beneficiaries, an improvement in performance over FY 2007. This 

result is slightly below the target of 93%, 

which is attributable to dramatic increases 

of costs to purchase and transport food. 

USAID is countering the increased costs 

through selectively purchasing commodities, using pre-positioned stocks, and 

concentrating resources for greater 

impact.

The fourth performance indicator 

illustrates USAID’s progress toward 

providing disaster-affected households 

with basic inputs for survival, recovery, 

or restoration of productive capacity. In 

FY 2008, performance slightly exceeded 

the target and was in line with FY 2007 

performance. USAID is unable to reach 

100% of targeted households due to the 

lack of access to beneficiary populations 

by humanitarian agencies and workers, 

or lack of qualified implementing partners 

in some relief environments.

Disaster Readiness. U.S. Government assistance builds and strengthens 

the capacity of affected countries, 

U.S. responders, and the international 

community to reduce risks, prepare for 

rapid response, and increase the affected 

population’s ability to cope with and 

recover from the effects of a disaster. It is 

estimated that 90% of disaster responders 

in the Western Hemisphere have been 

trained through USAID programs 

that have been ongoing for more than 

30 years.

Representative

Performance Indicator

2005 

Results1

2006 

Results1

2007 

Results

2008 

Target

2008 

Results

2008 

Rating

2009

Preliminary

Target2

Percent of USAID-Monitored Sites with 

Dispersed Populations (Internally Displaced 

Persons, Victims of Conflict) Worldwide with 

Less than 10% Global Acute Malnutrition 

(GAM) Rate

20% 23% 41% 50% 34% Not Met 55%

Percent of Targeted Beneficiaries Assisted by 

Protection and Solution Activities Funded by 

USAID

N/A N/A 70% 80% 77% Improved 90%

Percent of Planned Emergency Food Aid 

Beneficiaries Reached by USAID 85% 84% 86% 93% 92% Improved 93%

Percent of Targeted Disaster-Affected 

Households Provided With Basic Inputs 

for Survival, Recovery, or Restoration of 

Productive Capacity

N/A N/A 85% 80% 84% Met/

Exceeded 85%

1. FY 2007 was the first reporting cycle under the new Foreign Assistance Framework. A full cycle of performance data for indicators under the framework, including past year results, is 

therefore available in 2008.

2. FY 2009 targets are set at a preliminary level and will be updated when the FY 2009 budget is appropriated.

Rating: n = met or exceeded; n = improved over prior, but not met; n = not met target
USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS 19

Rebuilding Iraq and Afghanistan

Iraq

The rebuilding of Iraq is the largest 

reconstruction effort undertaken 

by the U.S. Government since the 

Marshall Plan. Since 2003, USAID has 

been a key player in this effort, working 

in Iraq to encourage economic growth, 

support democracy and build the capacity 

of national and local government, bring 

agricultural products to market, and 

provide humanitarian assistance to 

displaced and vulnerable populations. 

USAID has also helped to rehabilitate 

Iraq’s critical infrastructure and health and 

education systems. Many of its activities are implemented by USAID partners 

working together with provincial reconstruction teams throughout the country. 

In areas prone to high levels of insurgency 

and violence, USAID works with 

community groups, local government 

officials, and provincial reconstruction 

teams to provide stability through 

activities centering on conflict mitigation 

and employment generation, such as 

public works projects, vocational training, 

and apprenticeships. Micro-grants and 

business training are also available to 

encourage small business development. 

To engage marginalized and vulnerable 

youth, USAID supports recreational 

clubs, sports tournaments, drama 

presentations, and other activities for 

young Iraqis.

USAID’s work in Iraq bridges the 

transition from the short-term provision 

of essential services to long-term, integrated, and Iraqi-led development. 

Providing a focused approach to essential 

issues, USAID is committed to working 

closely with the people of Iraq to build 

the foundation for a prosperous and 

secure nation.

Summary of USAID’s achievements 

during FY 2008:

•	 Promoted entrepreneurialism through 

business skills training to 1,800 entrepreneurs and by opening four new 

Small Business Development Centers.

•	 Expanded employment opportunities, 

including 45,000 short-term jobs and 

approximately 14,000 long-term jobs.

•	 Stimulated private sector growth 

through the establishment of a sustainable micro, small and medium-scale 

enterprise sector which distributed 

$200 million in cumulative loans to 

more than 95,000 beneficiaries.

•	 Enhanced the capacity of local government by training 15,000 Iraqi local 

government officials in development 

planning and public finance.

•	 Assisted displaced and vulnerable Iraqis 

through $75.3 million in emergency 

assistance to renovate vital infrastructure, such as schools and roads; 

improve health facilities; repair water 

and sanitation networks; create jobs; 

and distribute non-food items.

•	 Assisted over 625,000 victims of war 

through the Marla Ruzicka Iraqi War 

Victims Fund.

•	 Strengthened counterinsurgency efforts 

by providing over 4.6 million days of 

employment to Iraqi nationals and 

involving nearly 170,000 Iraqi youth in 

soccer, the arts, and life skills programs.

Please refer to the following for additional 

information:

USAID Iraq website: http://www.usaid.gov/

iraq/

USAID Office of Inspector General 

(OIG), Reports to Management, 

FY 2008: http://www.usaid.gov/oig/iraq_

reports_fy08.html

Government Accountability Office 

(GAO), “Provincial Reconstruction Teams 

in Afghanistan and Iraq,” October 1, 

2008: http://www.gao.gov/new.items/

d0986r.pdf
20 USAID FY 2008 CITIZENS’ Report | PERFORMANCE and Budget HIGHLIGHTS

Special Inspector General for Iraq 

Reconstruction, “Quarterly Report to the 

United States Congress,” October 30, 

2008: http://www.sigir.mil/reports/

quarterlyreports/Oct08/pdf/Report_-_

October_2008.pdf

Afghanistan

In 2001, when the Taliban was forced out 

of power, half of Afghanistan’s people 

lived in absolute poverty, and virtually all 

of the country’s institutions and much of 

its infrastructure were destroyed. To 

rebuild the country and combat terrorism, 

USAID provides the largest bilateral 

civilian assistance program to Afghanistan, 

working to create economic growth, 

effective and representative governance, 

and a healthy, well educated population.

USAID is helping Afghanistan grow its 

economy through building functioning 

transportation and electricity networks, 

developing a market-driven agricultural 

sector, providing business support 

services, and strengthening property 

rights. To promote a just and democratic 

government, USAID focuses on strengthening governance and civil society and 

improving the management of human 

resources, financial resources, and service 

delivery. In the areas of health and 

education, USAID is rehabilitating clinics 

and schools, providing vital vaccines, 

training teachers, and distributing 

textbooks to students. 

Throughout Afghanistan, USAID works 

with a team of outstanding local and 

international partners. Delivery of 

assistance at the provincial level is assisted 

through provincial reconstruction teams, 

which are small, joint civilian-military 

teams designed to improve security, 

extend the reach of the Afghan government, and facilitate reconstruction. 

USAID’s work in Afghanistan is an 

excellent example of how the American 

people are helping the people of Afghanistan build a better future.

Summary of USAID’s achievements 

during FY 2008:

•	 Expanded the licit economy by 

providing 109,000 individuals with 

agricultural, farm management, and 

business training, benefiting over 

123,000 families, including over 3,000 

women and 15 women’s organizations. 

This resulted in almost $23 million in 

increased sales of licit farm products.

•	 Stimulated economic growth by 

providing over 88,000 loans, for a 

total of $55 million, to micro and 

small businesses in 21 of 34 provinces. 

Fifty-one percent of these loans went to 

women.

•	 Expanded the outreach of the financial 

sector through the establishment of 12 

new credit unions and three microfinance branches, increasing the total 

number of financial service outlets to 

over 115.

•	 Improved transportation routes by 

constructing 167 kilometers of roads 

generating over half a million labor 

days of local employment and over 

$2.9 million in local wages.

•	 Helped keep the lights on for over 

415,000 people in five cities through 

operational and maintenance support 

to diesel generators and training to 

48 employees of the Afghan electric 

utilities.

•	 Improved maternal and child health 

services by training 224 community 

midwives who are now assisting women 

with their deliveries.

•	 Expanded community-based health 

services by recruiting over 1,500 

new volunteer community health 

workers, resulting in a total number of 

8,445 trained volunteers in USAIDsupported provinces.

•	 Helped Afghanistan improve its 

management of renewable natural 

resources by training 5,500 people, 

including almost 1,000 women, in 

conservation and protection of natural 

resources.

Please refer to the following for additional 

information:

USAID Afghanistan webpage: 

http://www.usaid.gov/locations/asia/

countries/afghanistan/

USAID OIG, Reports to Management, 

FY 2008: http://www.usaid.gov/oig/

afghanistan_reports_fy08.html

GAO, “Provincial Reconstruction Teams 

in Afghanistan and Iraq,” October 1, 

2008: http://www.gao.gov/new.items/

d0986r.pdf

Special Inspector General for Afghanistan 

Reconstruction, “Quarterly Report to the 

United States Congress,” October 30, 

2008: http://www.sigar.mil/reports/

quarterlyreports/Oct08/pdf/Report_-_

October_2008.pdf
USAID FY 2008 CITIZENS’ Report | Management Highlights 21

MANAGEMENT HIGHLIGHTS

Management Accomplishments

To meet the challenges of transformational diplomacy, USAID 

is strengthening its management 

capabilities. In FY 2008, the Agency 

demonstrated significant improvements 

in key management systems. For more 

detailed information, see http://www.usaid.

gov/policy/budget/apr08/apr08_ma.pdf. 

Human Capital

In FY 2008, USAID released its Human 

Capital Strategic Plan for FY 2009-FY 

2013. This plan focuses on achieving the 

Agency’s goal to “advance freedom for 

the benefit of the American people and 

the international community by helping 

to build and sustain a more democratic, 

secure, and prosperous world composed 

of well-governed states that respond to the 

needs of their people, reduce widespread 

poverty, and act responsibly within the 

international system.” This strategy will 

drive USAID’s human capital activities 

on all fronts, such as talent management, 

succession planning, and diversity.

The Development Leadership Initiative 

is a new program to enable the Agency 

to achieve its development and national 

security objectives through a strong 

workforce. The goal is to double the 

USAID Foreign Service workforce by hiring 

1,200 junior and mid-level FSOs by 2012. 

USAID received funding for this Initiative 

because of the strong support from the 

Secretary of State and the U.S. Congress. 

In FY 2008, the Agency hired 157 FSOs. 

According to OMB’s PART, USAID 

is meeting its human capital goals. For 

2008, USAID met 100% of its Agencywide recruitment goals and 90% of its 

critical staffing needs. Furthermore, 100% 

of its employees’ performance approval 

plans incorporate the Agency’s mission, 

goals, and outcomes. On the September 

30, 2008 PMA scorecard, USAID was 

upgraded to “green,” or successful status 

for Human Capital.

USAID strives to increase diversity in its 

workforce. In FY 2008, applications from 

minority-serving colleges rose from 50 to 

over 1,100. USAID also launched a new 

diversity-focused internship program that 

recruited 14 interns in its first year. Seven 

hundred thirty-five employees received 

diversity training to build a vibrant and 

accountable Federal agency. 

Electronic

Government (E-Gov)

In support of the PMA, the USAID E-Gov 

program strengthens the Agency’s management capabilities by expanding electronic 

activities and reducing redundancy in 

Agency Information Technology systems. 

Introduced in FY 2008, the Electronic 

Official Personnel Folder (eOPF) 

automates the paper Official Personnel 

Folder. Employees now access their own 

personnel record online from any Agency 

or secure Government workstation. USAID 

also implemented the webTA Electronic 

Time Keeping System (webTA) for all 

direct-hire employees. webTA provides 

web-based access to the Agency’s time 

keeping system, allowing timecards to be 

completed from anywhere in the world. 

USAID launched the web-based E2 

Solutions Travel System (E2), a Federal 

Government-wide system that reduces costs 

because there are no software licensing fees 

or hardware maintenance costs. The system 

allows unlimited access to users from any 

Internet connected computer. E2 is fully 

deployed in USAID/Washington. Deployment to overseas offices will be completed 

in FY 2009. 

To support the management of business 

transactions, USAID is merging its acquisition and assistance functionalities into an 

integrated system. The new GLobal Acquisition and Assistance System (GLAAS) has 

real-time integration with the Agency’s 

financial management system and is fully 

interfaced with other Federal Electronic 

Government procurement systems. 

Preparations for worldwide deployment 

of GLAAS began in FY 2008 and testing 

occurred in December 2008.

Manage to Budget

USAID established the Manage to Budget 

initiative to improve the transparency and 

accountability of the cost of its operations. 

FY 2008 was the first full year of implementation, and the Agency made notable 

progress in budgeting and managing costs. 

Accomplishments include a new standard 

set of codes to capture operating expenses 

and program-funded administrative costs 

(to improve understanding of the full 

cost of doing business at USAID) and a 

compensation tracking system to report on 

the USDH budgets of each operating unit 

(to provide transparency on budgets and 

surpluses). As a result, USAID delegated 

full control to the operating units over their 

human resource budgets, increasing the 

flexibility on the number, type, and mix of 

staffing they can recruit to meet their needs.
22 USAID FY 2008 CITIZENS’ Report | Management Highlights

Management Challenges

E

very year, USAID’s OIG identifies Management Challenges that affect the ability of the Agency to deliver foreign assistance. 

The challenges relate to collecting and maintaining performance and financial data, streamlining the procurement process, meeting 

human resource needs, and creating secure information technology systems. In response to OIG’s recommendations, the Agency 

takes immediate remedial actions and develops plans to address longer term challenges. See http://www.usaid.gov/policy/afr08/usaidfy08afr_

lowres_508.pdf (page 106), for the OIG’s memorandum on this subject, dated October 16, 2008.

MANAGEMENT CHALLENGES

Financial Management—Accrual Accounting and Reporting

Management Challenge/

Significant Issue

Despite past efforts to strengthen its financial management process, USAID’s accrual expenditures and 

accounts payable system continues to contain inaccuracies.

Actions Taken Three thousand staff, including all Cognizant Technical Officers (CTO), completed mandatory training on 

the online web-based Phoenix Accruals system. Action completed on September 15, 2008. 

Actions Remaining The Agency will provide ongoing accruals training and hold CTOs accountable for estimating accruals. 

Managing for Results—Performance Improvement Initiative

Management Challenge/

Significant Issue

Managing a complex and diverse portfolio of worldwide activities carried out with multiple partners and 

stakeholders is an inherent challenge for USAID.

Actions Taken USAID made significant progress in its Performance Improvement Initiative, earning a score of “green” in 

both status and progress from OMB, an improvement over FY 2007. 

Actions Remaining The OIG will continue to monitor USAID’s progress in improving its performance management and 

reporting systems worldwide.

Acquisition and Assistance—Procurement Processes and Systems

Management Challenge/

Significant Issue Acquiring supplies and services remains a challenge that affects the Agency’s delivery of foreign assistance.

Actions Taken USAID began to roll out GLAAS, an online system that automatically links all transactions to Phoenix, the 

Agency’s central financial system, reducing the need for manual data entry. 

Actions Remaining The OIG will assess the risks associated with rolling out GLAAS and is planning an audit for FY 2009. The 

system is being piloted in two regions with full deployment planned for June 2011.

Human Capital Management

Management Challenge/

Significant Issue

USAID faces ongoing workforce and competency gaps that arise from increased demands on the Agency. 

These demands include intensified efforts to combat HIV/AIDS and malaria and rebuilding efforts 

following conflicts in Afghanistan, Iraq, Lebanon, and parts of Africa.

Actions Taken

In response to the PMA initiative on human capital and to address internal challenges, USAID developed 

the 2009-2013 Human Capital Strategic Plan, including a major effort to double the size of foreign service 

staff by 2012. USAID earned a score of “green” in status and progress from OMB on the initiative, a 

significant improvement over FY 2007. USAID is on track to hire 300 FSOs by 2012 through its Development Leadership Initiative.

Actions Remaining The OIG plans to audit USAID’s 2009-2013 Human Capital Strategic Plan in FY 2009.

Management Challenge/

Significant Issue

In FY 2008, GAO issued an audit finding that USAID’s acquisition and assistance staff competencies are 

uneven across overseas offices.

Actions Taken Strategic workforce planning efforts addressing this issue are underway.

Actions Remaining Under the Development Leadership Initiative, 175 Contracting Officers will be recruited to increase staff 

capacities in Acquisition and Assistance through 2012.

Information Technology—Strategic Planning

Management Challenge/

Significant Issue

USAID lacks the resources to implement HSPD-12 and faces challenges in coordinating efforts with other 

Federal agencies.

Actions Taken USAID issued 2,050 identification cards to domestic employees and contractors.

Actions Remaining USAID will develop an Agency-specific implementation plan for HSPD-12.
USAID FY 2008 CITIZENS’ Report | Financial HIGHLIGHTS 23

FINANCIAL HIGHLIGHTS

Overview

S

ince the enactment of the 1990 

Chief Financial Officer (CFO) Act, 

there has been a clear cultural change 

in how financial management is viewed or 

carried out and a recognition of the value 

and need for sound financial management. Transparent reporting on USAID’s 

stewardship and management of public 

funds is an integral part of USAID’s 

efforts to improve accountability to its 

customers, constituents, and the public. 

The Agency’s CFO staff has consistently 

improved USAID’s financial performance 

and will strive to maintain higher financial 

management standards in FY 2009.

USAID’s financial statements are audited 

by the Agency’s OIG. For the sixth consecutive year, USAID received an unqualified opinion, affirming that USAID’s 

financial statements for the year ended 

September 30, 2008, were presented fairly 

in all material aspects, and in conformity 

with U.S. generally accepted accounting 

principles (GAAP). The Independent 

Auditor’s Report can be found at http://

www.usaid.gov/oig/public/fy09rpts/0-000-

09-001-c.pdf. The auditor identified one 

material weakness (see table on the next 

page) related to unreconciled differences 

between the Agency’s Fund Balance and its 

cash balance reported by the U.S. Treasury, 

and four significant deficiencies. See page 

24 of USAID’s FY 2008 Agency Financial 

Report (AFR) at http://www.usaid.gov/

policy/afr08/usaidfy08afr_lowres_508.pdf. 

As indicated in the CFO Letter, see http://

www.usaid.gov/policy/afr08/usaidfy08afr_

lowres_508.pdf (page 25), corrective action 

plans are in place to resolve these findings 

and related audit recommendations by 

September 30, 2009. 

Complete details on relevant financial 

results are reported in USAID’s AFR at 

http://www.usaid.gov/policy/afr08/. The 

following presents summarized financial 

statement information based on the same 

underlying data as the financial statements 

presented in the AFR. This condensed 

information provides a high level analysis 

of the Agency’s financial performance 

and should not be viewed as a substitute 

for the financial statements and notes 

contained in the AFR.

Balance Sheet Summary

The table on the right presents the 

Agency’s assets, liabilities, and net 

position. The data reflect intraagency eliminations. USAID’s total assets 

are $24.3 billion as of September 30, 2008. 

The most significant assets are Fund Balance 

with Treasury and Loans Receivable which 

represent 79% and 16% of current period 

assets, respectively. The Agency’s liabilities are 

$8.4 billion of which 50%, or $4.2 billion, 

are Debt Due to U.S. Treasury. Accounts 

payable make up 23%, or $1.9 billion, of 

the total liabilities. USAID’s net position, as 

shown on the Consolidated Balance Sheet in 

the AFR(http://www.usaid.gov/policy/afr08/

usaidfy08afr_lowres_508.pdf, page 63) and 

the Consolidated Statement of Changes in 

Net Position (http://www.usaid.gov/policy/

afr08/usaidfy08afr_lowres_508.pdf, page 24), 

increased by $781.6 million, or 5%, from 

FY 2007. The variance was due to a reduction in the Agency’s operating expenses.

Condensed Balance Sheet

As of September 30, 2008

(In Thousands) Total Percentage of Total

Fund Balance with Treasury $ 19,181,073 79%

Loans Receivable, Net 3,988,662 16%

Accounts Receivable, Net 267,249 1%

Cash, Advances, and Other Assets 801,604 3%

Property, Plant and Equipment and Inventory, Net 126,998 1%

Total Assets $24,365,586 100%

Debt and Due to U.S. Treasury 4,215,289 50%

Accounts Payable 1,918,263 23%

Loan Guarantee Liability 1,606,876 19%

Other Liabilities 640,683 8%

Total Liabilities $ 8,381,111 100%

Unexpended Appropriations 14,982,084 

Cumulative Results of Operations $ 1,002,391 

Net Position $15,984,475 
24 USAID FY 2008 CITIZENS’ Report | Financial HIGHLIGHTS

Net Cost Summary

The charts on the right show 

USAID’s net cost, which represents 

the cost (net of earned revenues) 

of implementing the Agency’s six objectives of the Foreign Assistance Framework. 

Complete details on the net cost of 

program areas linked to these objectives 

are reported in the AFR (http://www.usaid.

gov/policy/afr08/usaidfy08afr_lowres_508.

pdf, page 16) The first five objectives 

correspond to the Agency’s strategic goals 

presented in the FY 2007-2012 Department of State-USAID Strategic Plan (http://

www.usaid.gov/policy/afr08/usaidfy08afr_

lowres_508.pdf, page 10), reflecting the 

integrated nature of the work of the two 

organizations. Two objectives, Investing in 

People and Economic Growth, represent 

the largest investments at 41% and 26% 

of net cost of operations, respectively. 

The objective related to Operating Unit 

Management includes costs that cannot be 

directly traced or reasonably allocated to 

strategic goals. However, these costs were 

captured and included in the total net cost 

of operations. Total net cost decreased 

by 8% from the prior fiscal year due to 

a reduction in the Agency’s operating 

expenses.

NET COST OF OPERATIONS

For the Year Ended September 30, 2008

(In Thousands)

Strategic Goals Net Cost Percentage of Total

Peace and Security $ 844,815 9%

Governing Justly and Democratically 1,410,122 16%

Investing in People 3,662,618 41%

Economic Growth 2,363,386 26%

Humanitarian Assistance 582,021 7%

Operating Unit Management 58,345 1%

Grand Total $ 8,921,307 100%

Summary of Financial Statements Audit

Summary of Financial StatementS Audit

Audit Opinion: Unqualified

Restatement: No

Material Weaknesses Beginning Balance New Resolved Consolidated Ending Balance

Reconciliations of Fund Balance with the U.S. Treasury 0 1 0 0 1

Total Material Weaknesses 0 1 0 0 1
 

CONTACT INFORMATION

Comments. USAID welcomes your comments about how it can improve this Citizens’ Report. Please provide comments to the 

relevant offices or the individual listed below:

Marc Griego, Bureau for Management/Office of Management Policy, Budget and Performance

Telephone: (202) 712-4092

Email: mgriego@usaid.gov

SECTION USAID OFFICE

Snapshot Office of Management Policy, Budget and Performance (202) 712-4092

Performance and Budget Highlights Office of Management Policy, Budget and Performance (202) 712-4092

Management Highlights Office of Management Policy, Budget and Performance (202) 712-4092

Financial Highlights Office of the Chief Financial Officer, Audit Performance and Compliance (202) 712-5339

An electronic version of this report is available on the Internet at http://www.usaid.gov/policy/budget/citrep08/. 

The USAID Citizens’ Report team, 

composed of Marc Griego, Mehlika 

Hoodbhoy, Subhi Mehdi, Diane Ray, Tara 

Thwing, Gloria White, and Elijah Wester, 

thanks the following bureaus, offices, and 

individuals for their invaluable assistance 

in preparing this report: 

•	 The Bureau for Global Health, the 

Bureau for Economic Growth and 

Trade, and the Bureau for Democracy, 

Conflict, and Humanitarian Assistance 

for information on the third party 

indicator results and other updates on 

the performance of respective strategic 

goal areas;

Acknowledgments

•	 The Bureaus for Asia and the Middle 

East for the updates on Afghanistan 

and Iraq;

•	 The Bureau for Legislative and Public 

Affairs for assistance with the photos, 

web posting, and the podcast;

•	 The Office of the Chief Operating 

Officer for the Message from the 

Administrator and the podcast;

•	 The Department of State/Office of the 

Director of Foreign Assistance for the 

budget and performance data reported 

from the Foreign Assistance Coordination and Tracking System, especially 

Dana Ott, Patricia Sommers, Andrea 

Sternberg, and Nick Vivio; and

•	 The DesignPond for the design and 

layout of this document.
PD-ACM-113

U.S. Agency for International Development

1300 Pennsylvania Avenue, N.W.

Washington, DC 20523

Tel: (202) 712-0000

Fax: (202) 216-3454

www.usaid.gov