United States Government Accountability Office

Washington, DC 20548

January 30, 2013

The Honorable Dianne Feinstein

Chairman

The Honorable Charles Grassley

Co-Chairman

Caucus on International Narcotics Control

United States Senate

Subject: Status of Funding for the Central America Regional Security Initiative

In Central America, violent criminal and drug trafficking organizations, transnational youth 

gangs, and other criminal networks operate with virtual impunity and take advantage of 

weak government institutions, undermining citizen security and the rule of law. The United 

States created the Mérida Initiative and later the Central America Regional Security Initiative 

(CARSI) to help Central American countries respond to these threats.1 From fiscal years 

2008 through 2011, U.S. agencies allocated $350 million in assistance funding for CARSI 

activities in Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and 

Panama. CARSI assistance employs an integrated approach to support anti-corruption, 

judicial reform, anti-gang, community policing, and corrections efforts, as well as crime 

prevention, law enforcement, and counternarcotics programs. Assistance to fund these 

activities has come from four accounts: International Narcotics Control and Law 

Enforcement (INCLE); Economic Support Fund (ESF); Nonproliferation, Anti-terrorism, 

Demining, and Related Programs (NADR); and Foreign Military Financing (FMF). 

In this correspondence, we are providing information on the status of funding provided under 

CARSI to support programs in partner countries as of September 30, 2011. Specifically, we 

describe how much funding U.S. agencies have disbursed each fiscal year for partner 

countries. In addition, in enclosure I, we describe—by year of appropriation—how much 

INCLE, ESF, and NADR funding U.S. agencies have allocated, obligated, and disbursed 

under CARSI; in enclosure II, we describe how U.S. agencies have allocated and committed 

FMF funds (by year of appropriation) toward activities in CARSI partner countries.2

 

To determine the status of CARSI funding provided, we collected data from the Department 

of State (State) and the United States Agency for International Development (USAID), 

including data on funds allocated, obligated, and disbursed for CARSI activities from fiscal 

years 2008 through 2011. Recognizing that agencies may use slightly different terms, we 

 

1

For the purposes of this review, the term CARSI will be used to refer to both funding provided under the earlier

Mérida Initiative, as well as the more recent CARSI, to support activities in CARSI partner countries. 

2

We are not able to present data on the FMF account used to support CARSI activities in the same way as other 

CARSI accounts in enclosure I. FMF funds are budgeted and tracked in a different way than the other CARSI 

accounts and the DOD system that is used does not track FMF information consistent with the way we are 

presenting the data for the other accounts. In enclosure II, we present data on FMF allocations and 

commitments—by year of appropriation—toward activities in CARSI partner countries. 
Page 2 GAO-13-295R CARSI Funding

provided agencies with definitions from GAO’s A Glossary of Terms Used in the Federal 

Budget Process and asked agencies to provide the relevant data according to these 

definitions.3 To the extent possible, we worked with agencies to ensure that they provided 

data that met these definitions. Because FMF funds are budgeted and tracked in a different 

way than the other CARSI accounts, we collected information on CARSI FMF allocations 

and commitments. We reviewed funding data and documents from State and USAID and 

interviewed relevant agency officials regarding these documents and data, including the 

reliability of data provided by these agencies. For the purposes of this review, we 

determined that the data provided were sufficiently reliable. We conducted work on this 

correspondence as part of a broader review of CARSI. We will complete that review, which 

will include updated information on the status of CARSI funding, later in 2013. See 

enclosure III for a complete description of our scope and methodology.

We conducted our work from August 2012 through January 2013 in accordance with all 

sections of GAO’s Quality Assurance Framework that are relevant to our objective. The 

framework requires that we plan and perform the engagement to obtain sufficient and 

appropriate evidence to meet our stated objectives and to discuss any limitations in our 

work. We believe that the information and data obtained, and the analysis conducted, 

provide a reasonable basis for any findings and conclusions in this product. 

Background

In 2007, President George W. Bush and Mexican President Felipe Calderón announced the 

Mérida Initiative, a multiyear assistance package to Mexico and Central America, to help 

address increasing violence and criminal activity, especially from drug trafficking 

organizations and other criminal organizations. Under the Mérida Initiative, the United States 

funded programs in Central America for capacity building and other support to improve law 

enforcement institutions, promote economic and social development, and conduct 

interdiction training. According to a report by the United States Senate Caucus on 

International Narcotics Control4 and other reporting, the security situation in Central America 

has deteriorated in recent years as Mexican drug trafficking organizations, transnational 

gangs, and other criminal groups have expanded their activities, contributing to escalating 

levels of crime and violence. Violence is particularly high in El Salvador, Guatemala, and 

Honduras, with homicide rates among the highest in the world.

Recognizing these evolving threats, in 2010 the Obama administration separated the 

Central America portion of the Mérida Initiative and renamed it CARSI. CARSI is designed 

as a collaborative partnership between the United States and the region, focused on 

meeting the needs of the region. The five primary goals of CARSI are to: 

• create safe streets for citizens in the region; 

• disrupt the movement of criminals and contraband to, within and between the nations 

of Central America; 

• support the development of strong, capable, and accountable Central American 

governments; 

• re-establish effective state presence and security in communities at risk; and 

• foster enhanced levels of security coordination and cooperation between the nations 

of the region. 

 

3

GAO, A Glossary of Terms Used in the Federal Budget Process, GAO-05-734SP (Washington, D.C.: Sept. 

2005). 

4

United States Senate Caucus On International Narcotics Controls, Responding to Violence in Central America

(Washington, D.C: Sept. 2011).
Page 3 GAO-13-295R CARSI Funding

Funding for CARSI has come from four foreign assistance accounts: 

• INCLE: The INCLE account provides assistance to foreign countries and 

international organizations to assist them in developing and implementing policies 

and programs that maintain the rule of law and strengthen institutional law 

enforcement and judicial capabilities, including countering drug flows and combating 

transnational crime. 

• ESF: The ESF account assists foreign countries in meeting their political, economic, 

and security needs by funding a range of activities, including those designed to 

counter terrorism and extremist ideology, increase the role of the private sector in the 

economy, develop effective legal systems, build transparent and accountable 

governance, and empower citizens. 

• NADR: The NADR account funds contributions to certain organizations supporting 

nonproliferation, and provides assistance to foreign countries for nonproliferation, 

demining, antiterrorism, export control assistance, and other related activities. 

• FMF: The FMF account provides grants and loans to foreign governments and 

international organizations for the acquisition of U.S. defense equipment, services, 

and training. 

Summary

As of September 30, 2011, of the $350 million that U.S. agencies had allocated to support 

CARSI activities, State and USAID had disbursed over $75 million of INCLE, ESF, and 

NADR funds.5 In addition, State had committed almost $22 million of FMF funds to support 

CARSI activities. The two principal accounts for CARSI are the INCLE and ESF accounts. 

U.S. agencies also allocated funds for Central America from the NADR and FMF accounts. 

From fiscal years 2008 through 2011, State and USAID disbursed about $44.4 million in 

INCLE funds, $25.9 million in ESF funds, and almost $5 million in NADR funds to support 

CARSI activities in partner countries. The agencies used the funds to support programs in 

Central American countries that strengthen law enforcement and maritime interdiction 

capabilities, support capacity building and training programs, and deter and detect border 

criminal activity. To demonstrate how funding for CARSI activities has been allocated, 

obligated, and disbursed—by year of appropriation—we are providing this information in 

enclosure I. In addition, we present data on how funding for CARSI activities under FMF has 

been allocated and committed—by year of appropriation—in enclosure II.

Agencies Disbursed over $75 Million in Funds to Support CARSI Activities from Fiscal 

Years 2008 through 2011 

As of September 30, 2011, State and USAID had disbursed over $75 million for CARSI 

activities and committed almost $22 million of FMF funds. Funding for CARSI has primarily 

come from two accounts—INCLE and ESF. Funding also came from the NADR and FMF 

accounts. State manages the INCLE, NADR, and FMF accounts, while State shares 

responsibility with USAID to manage and administer the ESF account. Within State, the 

Bureau for International Narcotics and Law Enforcement Affairs (INL) administers INCLE. 

The Bureau for Political-Military Affairs administers the FMF account, while the Department 

of Defense (DOD) oversees the actual procurement and transfer of goods and services 

purchased with these funds. State’s Bureau of International Security and Nonproliferation 

and its Bureau of Counterterrorism administer NADR. State's Bureau of Western 

Hemisphere Affairs administers a portion of ESF and its Bureau of Educational and Cultural 

 

5

USAID disburses only ESF funds while State disburses INCLE, ESF, and NADR funds to support CARSI 

activities. 
Page 4 GAO-13-295R CARSI Funding

Affairs also previously administered some ESF funds. However, USAID oversees the 

implementation of most programs funded from ESF.

INCLE Funding for CARSI Activities 

As of September 30, 2011, State disbursed approximately $44.4 million of CARSI INCLE 

funds from fiscal years 2008 through 2011 to support CARSI partner countries. State used 

these funds to support strengthening the ability of Central American law enforcement 

institutions to fight crime, violence, and trafficking in drugs and firearms. For example, it 

used funds to support law enforcement units, such as vetted units; to support an expansion 

of a prison management initiative; and to provide technical assistance to enhance 

prosecutorial capacity and encourage cooperation among prosecutors, judges, and police.6

State used almost 30 percent of disbursed funds for regional activities, such as equipment 

and training for law enforcement activities (see table 1). State disbursed the largest amount 

of INCLE funds for CARSI activities in fiscal year 2011, with the largest portions going, in 

decreasing order, to Guatemala, Panama, and El Salvador. 

Table 1: INCLE Funding Disbursed to Support CARSI Activities, Fiscal Years 2008 

through 2011

Dollars in thousands

Country FY2008 FY2009 FY2010 FY2011 Total

Belize 0 13 746 675 1,434

Costa Rica 0 1 768 1,872 2,641

El Salvador 0 353 1,482 4,048 5,883

Guatemala 0 1,001 1,630 6,501 9,132

Honduras 0 0 100 3,596 3,696

Nicaragua 0 23 157 770 950

Panama 0 267 2,813 4,686 7,766

Regional 0 35 9,318 3,518 12,871

CARSI INCLE Total 0 1,693 17,014 25,666 44,373

Source: GAO analysis of State data. 

Notes: Data as of September 30, 2011. Amounts rounded to the nearest thousand. Figures in table may not sum 

correctly due to rounding. In State’s financial tracking for the INCLE account, disbursed amounts are labeled as 

dispensed amounts.

USAID ESF Funding for CARSI Activities

As of September 30, 2011, USAID and State disbursed approximately $25.9 million of 

CARSI ESF funds from fiscal years 2008 through 2011 to support CARSI partner countries. 

According to agency officials, USAID utilized ESF funding for CARSI to support various 

types of capacity building and training programs, such as work to help at-risk youth, set up 

youth outreach centers, and encourage justice reform. For fiscal year 2010, almost half of 

the funds USAID disbursed went to support programs and activities in El Salvador (see table 

2). For fiscal year 2011, USAID disbursed the largest amount of funds to support 

Guatemala, while programming for the Regional Sustainable Development Program and El 

Salvador received the second and third largest amounts. 

 

6

Vetted units are groups of partner-nation law enforcement officials who undergo background checks, including 

polygraph examinations. These vetted units conduct complex investigations in areas such as firearms and 

narcotics trafficking, gangs, bulk cash smuggling, and money laundering. 
Page 5 GAO-13-295R CARSI Funding

Table 2: USAID ESF Funding Disbursed to Support CARSI Activities, Fiscal Years 

2008 through 2011

Dollars in thousands

Countrya FY2008 FY2009 FY2010 FY2011 Total

El Salvador 0 0 2,031 3,082 5,113

Guatemala 0 0 311 3,973 4,284

Honduras 0 0 850 2,001 2,851

Nicaragua 0 0 372 342 714

Panama 0 54 221 1,746 2,021

Central America Regional 

Programb 0 0 0 0 0

Regional Sustainable 

Development Programc 0 0 487 3,184 3,671

CARSI ESF (USAID) Total 0 54 4,272 14,328 18,654

Source: GAO analysis of USAID data. 

Notes: Data as of September 30, 2011. Amounts rounded to nearest thousand. Figures in table may not sum 

correctly due to rounding. 

a

USAID has no assistance programs in Belize or Costa Rica, thus neither country directly received ESF funding 

from USAID.

b

The Central America Regional Program is administered out of El Salvador. According to USAID officials, its 

location is advantageous for programs that support the Central American Integration System (SICA), which is 

headquartered in El Salvador. SICA is the institutional framework for regional integration in Central America; it 

was created by Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama.

c

The Regional Sustainable Development Program is managed out of Washington, D.C., and is targeted to 

programs in El Salvador, Honduras, Guatemala, Nicaragua, and Panama.

State ESF Funding for CARSI Activities

According to agency officials, State utilized ESF funding to support high-impact, sustainable 

engagements that focus on at-risk youth (such as job training and after school programs) 

and communities that are experiencing high levels of crime and violence. In addition, as 

directed in the Supplemental Appropriations Act for fiscal year 2008, State made $5 million 

of State CARSI ESF funding available for an Economic and Social Development Fund for 

Central America to help support educational exchange programs.7 According to State 

officials, State ESF funding for CARSI is, as appropriate, aligned with complementary 

USAID ESF and INCLE activities to ensure that State is leveraging its resources. Between 

fiscal year 2008 and fiscal year 2011, State disbursed the largest amount of CARSI ESF 

funding in fiscal year 2009 to help support educational exchange programs with funds being 

used to support activities in all seven CARSI countries (see table 3). In fiscal year 2010, 

State disbursed CARSI ESF funding to support activities only in Belize; in fiscal year 2011, 

over half of the funds State disbursed went to support activities in Costa Rica. 

 

7

See Supplemental Appropriations Act, 2008, Pub. L. No. 110-252, § 1407, June 30, 2008. 
Page 6 GAO-13-295R CARSI Funding

Table 3: State ESF Funding Disbursed to Support CARSI Activities, Fiscal Years 2008 

through 2011

Dollars in thousands

Country FY2008 FY2009 FY2010 FY2011 Total

Belize 0 468 11 308 787

Costa Rica 0 808 0 1,304 2,112

El Salvador 0 694 0 0 694

Guatemala 0 1,100 0 399 1,499

Honduras 0 412 0 0 412

Nicaragua 0 869 0 133 1,002

Panama 0 651 0 83 734

CARSI ESF (State) Total 0 5,002 11 2,227 7,240

Source: GAO analysis of State data. 

Notes: Data as of September 30, 2011. Amounts rounded to the nearest thousand. Figures in table may not sum 

correctly due to rounding. 

NADR Funding for CARSI Activities

As of September 30, 2011, State disbursed almost $5 million of CARSI NADR Export 

Control and Related Border Security (EXBS) and Counterterrorism (CT) funds from 2008 

through 2011 to support CARSI partner countries. NADR-EXBS seeks to prevent the 

proliferation of weapons of mass destruction and advanced conventional weapons by 

helping to build effective national export control systems in countries that possess, produce, 

or supply strategic items, as well as in countries through which such items are most likely to 

transit. NADR-CT seeks to prevent terrorism and plays a key role in implementing a 

comprehensive approach to preventing and countering terrorist attacks on U.S. citizens and 

interests, at home and abroad, and helping to mitigate the impact of any attacks that may 

occur. From fiscal years 2008 through 2011, over 80 percent of CARSI NADR funds 

disbursed were from NADR-EXBS (see table 4). According to State officials, it is not 

possible to provide a country-by-country breakout of CARSI NADR-EXBS funds disbursed 

because the programs are intended for regional programming. State used NADR funds in 

CARSI partner countries to deter and detect drug smuggling, bulk currency smuggling, and 

other trans-border criminal activity. 
Page 7 GAO-13-295R CARSI Funding

Table 4: NADR Funding Disbursed to Support CARSI Activities, Fiscal Years 2008 

through 2011

Dollars in thousands

FY2008 FY2009 FY2010 FY2011 Total

NADR-EXBSa 0 974 2,283 713 3,970

NADR-CT 

(Regional Total)

0 376 103 386 866

Belize 0 4 0 179 183

Costa Rica 0 3 23 35 61

El Salvador 0 14 5 34 53

Guatemala 0 142 2 32 177

Honduras 0 133 0 14 147

Nicaragua 0 4 1 4 9

Panama 0 0 5 32 36

Costs of Grants to 

Organization of 

American States

0 77 67 55 199

CARSI NADR Total 0 1,350 2,386 1,099 4,835

Source: GAO analysis of State data. 

Notes: Data as of September 30, 2011. Amounts rounded to the nearest thousand. Figures in table may not sum 

correctly due to rounding. NADR includes both NADR-CT and NADR-EXBS funding. CARSI NADR funds came 

from the fiscal year 2008 Supplemental Appropriations Act and were used to fund activities for Mérida-Central 

America. 

a

NADR-EXBS programming is allocated regionally and not by country.

FMF Funding for CARSI Activities 

As of September 30, 2011, State had committed almost $22 million of FMF funds from fiscal 

years 2008 through 2011 to support CARSI countries.8 These funds were used to support 

the strengthening of the maritime interdiction capabilities of Central American countries, 

such as protecting their national territory and maritime borders against transnational 

threats. According to State officials, CARSI FMF has funded equipment (such as boats in 

Costa Rica, Belize, and El Salvador9 and communications equipment), maintenance and 

sustainment of maritime assets, and training. 

State was unable to provide data on annual fiscal year disbursements for CARSI FMF funds 

because FMF funds are budgeted and tracked in a different way than the other CARSI 

accounts and the system that is used does not track information consistent with the way we 

are presenting financial data. The Defense Security Cooperation Agency (DSCA) and the 

Defense Financing and Accounting Services (DFAS) are responsible for the financial 

systems that account for FMF funds, as well as tracking the implementation and expenditure 

of those funds. According to DSCA officials, DSCA’s system can only track FMF 

commitments, not annual disbursements. DFAS uses the Defense Integrated Finance 

System to track disbursements; however, there is no direct link between the DSCA and 

DFAS systems, and the DFAS system does not track funding for specific initiatives, such as 

CARSI. See enclosure II for further details on how FMF funds were allocated and 

committed—by year of appropriation—toward activities in CARSI partner countries. 

 

8

FMF commitments are funds “committed” for a specific purpose.

9

According to State officials, CARSI FMF funds were used to procure eight boats—two for Costa Rica, two for 

Belize, and four for El Salvador. 
Page 8 GAO-13-295R CARSI Funding

Agency Comments

We provided State and USAID with a draft of this report for their review. Both agencies 

provided technical comments on this report, which we incorporated, as appropriate.

We are sending copies of this report to the appropriate congressional committees, the 

Secretary of State, and the Administrator of USAID. In addition, the report will be available 

at no charge on the GAO website at http://www.gao.gov. 

If you or your staff members have any questions about this report, please contact me at 

(202) 512-7331 or johnsoncm@gao.gov. Contact points for our Offices of Congressional 

Relations and Public Affairs may be found on the last page of this report. GAO staff who 

made contributions to this report are listed in enclosure IV.

Sincerely yours,

Charles Michael Johnson, Jr.

Director, International Affairs & Trade

Enclosures (4)
Page 9 GAO-13-295R CARSI Funding

Enclosure I: Status of Central America Regional Security Initiative Funds 

To demonstrate how funding for Central America Regional Security Initiative (CARSI) 

activities have been allocated, obligated, and disbursed, we are providing the status of 

CARSI funds as of September 30, 2011. The following tables show CARSI funds by 

account, describing how U.S. agencies have allocated, obligated, and disbursed funds (by 

year of appropriation) toward activities in CARSI partner countries. In addition, the tables 

show unobligated balances, which is the portion of an obligational authority that has not yet 

been obligated, and unliquidated obligations (or obligated balance), which is the amount of 

obligation already incurred for which payment has not yet been made.10 

Status of CARSI International Narcotics Control and Law Enforcement Account Funds

The Department of State’s (State) Bureau for International Narcotics and Law Enforcement 

Affairs administers the CARSI International Narcotics Control and Law Enforcement (INCLE) 

funds. Between fiscal year 2008 and fiscal year 2011, State allocated the largest amounts of 

its CARSI INCLE funds to regional programs, Guatemala, and El Salvador (see table 1). 

Table 1: CARSI INCLE Funding Allocated and Disbursed toward Activities in CARSI 

Partner Countries (by Year of Appropriation)

Dollars in thousands

Country FY2008 FY2009 FY2010 FY2011 Total

Belize

Allocated 1,152 2,569a 3,388a 2,416 9,525

Unobligated balance 0 0 2b 0c 2

Unliquidated obligationsd 94 2,411 3,289 2,295 8,089

Disbursede 1,058 158 97 121 1,434

Costa Rica

Allocated 2,118 5,120 3,295 2,500a 13,033

Unobligated balance 0 0 0c 0 0

Unliquidated obligationsd 752 4,210 3,076 2,366d 10,404

Disbursede 1,366 909 219 134 2,628

Costa Rica Bilateral

Allocation 0 0 500 0 500

Unobligated balance 0 0 0 0 0

Unliquidated obligationsd 0 0 479 0 479

Disbursede 0 0 21 0 21

El Salvador

Allocated 4,452 12,781a 5,359a 6,159 28,751

Unobligated balance 0 1b 1b 0 2

Unliquidated obligationsd 1,935 10,210 4,634 6,042 22,821

Disbursede 2,517 2,570 723 117 5,927

Guatemala

Allocated 5,464 12,109 19,272a 16,675 53,520

Unobligated balance 0 2b 0 0 2

Unliquidated obligationsd 2,222 9,432 17,042 15,934 44,630

Disbursede 3,242 2,676 2,230 741 8,889

Guatemala Bilateral

Allocated 0 0 1,500 0 1,500

Unobligated balance 0 0 0 0 0

Unliquidated obligationsd 0 0 1,031 0 1,031

Disbursede 0 0 469 0 469

Honduras

Allocated 4,469 5,571 6,585 6,537 23,162

Unobligated balance 0 0 0 0 0

 

10GAO, A Glossary of Terms Used in the Federal Budget Process, GAO-05-734SP (Washington, D.C.: Sept. 

2005). 
Page 10 GAO-13-295R CARSI Funding

Unliquidated obligationsd 2,701 4,133 6,215 6,416 19,465

Disbursede 1,768 1,438 370 120 3,696

Nicaragua

Allocated 1,431 3,045 1,192 927 6,595

Unobligated balance 0 400b 8b 0 408

Unliquidated obligationsd 1,228 2,174 900 804 5,106

Disbursede 203 471 284 123 1,081

Panama

Allocated 2,097 10,782 5,186 5,546a 23,611

Unobligated balance 0 0 0 0 0

Unliquidated obligationsd 315 6,510 4,057 4,877d 15,759

Disbursede 1,783 4,272 1,129 669 7,853

Regional 

Allocated 3,752 18,023 8,135 30,747 60,657

Unobligated balance 0 0 0 29,209 29,209

Unliquidated obligationsd 2,468 7,039 8,074 1,494 19,075

Disbursede 1,284 10,984 61 44 12,373

Source: GAO analysis of State data. 

Notes: Data as of September 30, 2011. Amounts rounded to the nearest thousand. Figures in table may not sum 

correctly due to rounding. In INL financial tracking, disbursed amounts are labeled as dispensed amounts and 

allocated amounts are labeled as values allocated.

 

a

For the purpose of this report, “allocated” amounts include funds for vetted units in these countries. The funding 

for the vetted units is tracked in the year in which the funds were allocated as of September 30, 2011. Vetted 

units were not tracked separately until fiscal year 2012.

b

According to State officials, reported unobligated amounts have expired and are no longer available for 

obligation. 

c

Because we are presenting budget data in thousands of dollars, amounts under $1,000 are reported as zero. 

For Belize the amount is $156 and for Costa Rica the amount is $288. 

d

According to State officials, unliquidated obligations for INCLE are funds that have been obligated and are

waiting for payment to be recorded on an obligation in the accounting system. 

e

According to State officials, disbursements or liquidations for INCLE are payments applied to an obligation in the 

accounting system.

Status of CARSI Economic Support Fund Account Funds

State shares responsibility with the United States Agency for International Development 

(USAID) to administer the Economic Support Fund (ESF). State’s Bureau for Western 

Hemisphere Affairs administers State's portion of ESF, while USAID oversees the 

implementation of most programs funded from this account, according to USAID officials.

Status of USAID's CARSI ESF Account Funds

Between fiscal year 2008 and fiscal year 2011, USAID allocated the largest amounts of its 

CARSI ESF to Guatemala, El Salvador, and Honduras (see table 2). For fiscal year 2011, 

USAID officials said that some of these funds were not allowed to be obligated until fiscal 

year 2012. For example, USAID was not able to obligate any fiscal year 2011 appropriated 

funds until fiscal year 2012 for activities in Guatemala, Honduras, and Nicaragua.
Page 11 GAO-13-295R CARSI Funding

Table 2: ESF Funding Allocated and Disbursed by USAID toward Activities in CARSI 

Partner Countries (by Year of Appropriation)

Dollars in thousands

Countrya FY2008 FY2009 FY2010 FY2011 Total

El Salvador

Allocated 4,000 2,750 5,744 7,850 20,344

Unobligated balance 0 0 0 0 0

Unliquidated obligationsb 0 1,649 5,731 7,850 15,230

Disbursedc 4,000 1,101 13 0 5,114

Guatemala

Allocated 6,750 2,750 5,750 5,500 20,750

Unobligated balance 0 0 0 5,500d 5,500

Unliquidated obligationsb 2,466 2,750 5,750 0 10,966

Disbursedc 4,284 0 0 0 4,284

Honduras

Allocated 2,000 4,250 5,500 7,425 19,175

Unobligated balance 0 0 0 7,425e 7,425

Unliquidated obligationsb 0 3,530 5,368 0 8,898

Disbursedc 2,000 851f 0f 0 2,851

Nicaragua

Allocated 1,000 1,000 1,000 1,000 4,000

Unobligated balance 0 0 0 1,000d 1,000

Unliquidated obligationsb 577 709 1,000 0 2,286

Disbursedc 423 291 0 0 714

Panama

Allocated 3,650 1,000 2,350 0 7,000

Unobligated balance 10g 0 0 0 10

Unliquidated obligationsb 1,664 977 2,328 0 4,969

Disbursedc 1,976 23 22 0 2,021

Central America Regional Programh

Allocated 0 0 0 5,224 5,224

Unobligated balance 0 0 0 2,575d 2,575

Unliquidated obligationsb 0 0 0 2,649 2,649

Disbursedc 0 0 0 0 0

Regional Sustainable Development 

Programi

Allocated 2,600 4,250 1,300 501 8,651

Unobligated balance 0 1g 0 251d 252

Unliquidated obligationsb 1,359 2,243 877 250 4,729

Disbursedc 1,241 1,874f 555f 0 3,670

Source: GAO analysis of USAID data. 

Notes: Data as of September 30, 2011. Amounts rounded to the nearest thousand. Figures in table may not sum 

correctly due to rounding. 

a

USAID has no assistance programs in Belize or Costa Rica, thus neither country directly received CARSI ESF 

funding from USAID.

b

According to State officials, unliquidated obligations for ESF are amounts that have been obligated but not 

disbursed or expensed and remain as uninvoiced or unpaid.

c

According to State officials, disbursements for ESF are payments made by the agency to other parties using 

cash, checks, or electronic transfers. 

d

Although these funds were appropriated in fiscal year 2011, they were not obligated until fiscal year 2012. 

According to USAID officials, because the funds for this appropriation were not received until late in fiscal year 

2011 and congressional notification is required prior to obligation, USAID was delayed in obligating these funds. 

In this case, according to agency officials, a hold was placed on the congressional notification until September 

22, 2011, which resulted in very limited time to obligate the funds prior to the end of fiscal year 2011.

e

Although appropriated in fiscal year 2011, $1,925,000 of these funds was not obligated until fiscal year 2012. 

According to USAID officials, because the funds for this appropriation were not received until late in fiscal year 

2011 and congressional notification is required prior to obligation, there was a delay in obligating these funds. In 
Page 12 GAO-13-295R CARSI Funding

this case, according to agency officials, a hold was placed on the CARSI congressional notification until 

September 22, 2011 which resulted in very limited time to obligate the funds prior to the end of fiscal year 2011.

f

According to USAID officials, a discrepancy of about $132,000 between Honduras and the Regional Sustainable

Development Program appears because there was a trade between the two operating units to ensure that all 

funds were obligated. At the end of fiscal year 2010, funds appropriated in 2009 for the Regional Sustainable 

Development Program were expiring and USAID’s Bureau for Latin America and the Caribbean was not able to 

obligate them. These funds were transferred to USAID Honduras, which obligated them before they were going 

to expire. In exchange, an equal amount of 2010 funding to USAID Honduras was transferred back to the 

Regional Sustainable Development Program for obligation.

g

According to USAID officials, these funds are no longer available for obligation. 

h

The Central America Regional Program is administered out of El Salvador; its location is advantageous for 

programming that supports the Central American Integration System (SICA), which is headquartered in El 

Salvador.

i

The Regional Sustainable Development Program is administered out of Washington, D.C., and is targeted to 

assist the countries of El Salvador, Honduras, Guatemala, Nicaragua, and Panama.

Status of State's CARSI ESF Account Funds

Between fiscal year 2008 and fiscal year 2011, State allocated the largest amounts of its 

CARSI ESF funding to Costa Rica, Belize, and Guatemala (see table 3).11 

Table 3: ESF Funding Allocated and Disbursed by State toward Activities in CARSI 

Partner Countries (by Year of Appropriation)

Dollars in thousands

Country FY2008a FY2009 FY2010 FY2011b Total

Belize

Allocated 468 450 300 600 1,818

Unobligated balance 0 0 0 600 600

Unliquidated obligationsc 0 130 300 0 430

Disbursedd 468 320 0 0 788

Costa Rica

Allocated 808 800 879 1,000 3,487

Unobligated balance 0 0 0 1,000 1,000

Unliquidated obligationsc 0 115 260 0 375

Disbursedd 808 685 619 0 2,112

El Salvador

Allocated 694 0 0 94 788

Unobligated balance 0 0 0 94 94

Unliquidated obligationsc 0 0 0 0 0

Disbursedd 694 0 0 0 694

Guatemala

Allocated 1,100 400 0 69 1,569

Unobligated balance 0 0 0 69 69

Unliquidated obligationsc 0 1 0 0 1

Disbursedd 1,100 399 0 0 1,499

Honduras

Allocated 412 150 0 341 903

Unobligated balance 0 150e 0 341 491

Unliquidated obligationsc 0 0 0 0 0

Disbursedd 412 0 0 0 412

Nicaragua

Allocated 869 200 0 208 1,277

Unobligated balance 0 0 0 208 208

Unliquidated obligationsc 0 67 0 0 67

Disbursedd 869 133 0 0 1,002

 

11Costa Rica and Belize do not have USAID bilateral missions; therefore, State’s Bureau of Western Hemisphere 

Affairs allotted funds to these embassies for obligation at post.
Page 13 GAO-13-295R CARSI Funding

Panama

Allocated 651 0 177 189 1,017

Unobligated balance 0 0 0 189 189

Unliquidated obligationsc 0 0 94 0 94

Disbursedd 651 0 83 0 734

Source: GAO analysis of State data.

 

Notes: Data as of September 30, 2011. Amounts rounded to nearest thousand. Figures in table may not sum 

correctly due to rounding. 

a

For fiscal year 2008, $5 million of State CARSI ESF funding was made available for an Economic and Social 

Development Fund for Central America to help support educational exchange programs. 

b

According to State officials, because the funds for this appropriation were not received until late in fiscal year 

2011 and congressional notification is required prior to obligation, State was delayed in obligating these funds.

c

According to State officials, unliquidated obligations for ESF are amounts that have been obligated but not 

disbursed or expensed and remain as uninvoiced or unpaid.

d

According to State officials, disbursements for ESF are payments made by the agency to other parties using 

cash, checks, or electronic transfers. 

e

According to USAID officials, these funds were initially obligated and de-obligated at State and have since been 

returned to USAID. 

Status of CARSI Nonproliferation, Anti-terrorism, Demining, and Related Programs Account 

Funds

State’s Bureau of International Security and Nonproliferation and its Bureau of 

Counterterrorism administer CARSI Nonproliferation, Anti-terrorism, Demining, and Related 

Programs (NADR) funds. NADR funds were allocated for Central American countries under 

the Mérida Initiative only for fiscal year 2008. NADR Export Control and Related Border 

Security (EXBS) and Counterterrorism (CT) funds were used to support activities in CARSI 

partner countries; the largest amount of funds was allocated for NADR-EXBS activities (see 

table 4). 

Table 4: CARSI NADR Funding Allocated and Disbursed toward Activities in CARSI 

Partner Countries (by Year of Appropriation)

Dollars in thousands

Regionala FY 2008 Total

NADR-CT NADR-EXBS

Allocated 1,100 5,100 6,200

Unobligated balance 0 10b 10

Unliquidated obligationsc 234 1,121 1,355

Disbursed 866 3,969 4,835

Source: GAO analysis of State data.

 

Notes: Data as of September 30, 2011. Amounts rounded to nearest thousand. Figures in table may not sum 

correctly due to rounding. 

a

NADR includes both NADR-CT and NADR-EXBS funding. NADR-EXBS programming is allocated, obligated, 

and tracked regionally for CARSI; therefore, State officials informed us that a break-out by country is not 

possible. CARSI NADR funds came from the fiscal year 2008 Supplemental Appropriations Act and were used to 

fund activities for Mérida-Central America.

b

According to State officials, these funds were never obligated and the obligation period for these funds expired 

on September 30, 2009; therefore, these funds were no longer available for obligation and reverted back to the 

Department of the Treasury. State officials explained that these funds were never obligated because contracts 

for NADR-EXBS activities were awarded on a competitive basis and actual costs were lower than estimated. 

These funds could not be applied to a different program prior to the obligation period expiring. 
Page 14 GAO-13-295R CARSI Funding

c

According to State officials, for NADR-CT, unliquidated obligations are amounts that have been obligated, but 

not disbursed or expensed and remain as uninvoiced or unpaid, and for which the service may not yet have been 

rendered. According to State officials, while these data represent the balance of unliquidated funds as of 

September 30, 2011, the majority of these funds has since been disbursed. 
Page 15 GAO-13-295R CARSI Funding

Enclosure II: Status of Central America Regional Security Initiative Foreign Military 

Financing Account Funds

This enclosure provides the status of Central America Regional Security Initiative (CARSI) 

Foreign Military Financing (FMF) funds as of September 30, 2011. Table 1 describes how 

U.S. agencies have allocated and committed FMF funds (by year of appropriation) toward 

activities in CARSI partner countries. The presentation of FMF allocations and commitments 

is different from presentations on allocations, obligations, and disbursements on the other 

CARSI accounts in enclosure I because FMF funds are budgeted and tracked in a different 

way.

The Defense Security Cooperation Agency (DSCA) and the Defense Financing and 

Accounting Service (DFAS) are responsible for the financial systems that account for FMF 

funds, as well as tracking the implementation and expenditure of those funds. According to 

DSCA officials, FMF funds are obligated upon apportionment. Further, DSCA’s system can 

only track FMF uncommitted and committed amounts, not unliquidated obligations or 

disbursements. DFAS tracks disbursements using the Defense Integrated Finance System; 

however, there is no direct link between the DSCA and DFAS systems and the DFAS 

system does not track funding for specific initiatives, such as CARSI.

The Department of State (State) allocated FMF funds for Central American countries for 

activities under the Mérida Initiative from fiscal year 2008 to 2010. Between fiscal year 2008 

and fiscal year 2010, State allocated the largest amounts of these FMF funds to El Salvador, 

Costa Rica, and Panama. 

Table 1: CARSI FMF Funding Allocated and Committed toward Activities in CARSI 

Partner Countries (by Year of Appropriation) 

Dollars in thousands

Country FY2008 FY2009 FY2010 Total

Belize

Allocated 0 2,978 200 3,178

Unobligated balance 0 0 0 0

Uncommitteda 0 0 0 0

 Committedb 0 2,978 200 3,178

Costa Rica

Allocated 2,800 1,764 325 4,889

Unobligated balance 0 0 0 0

Uncommitteda 0 311 0 311

Committedb 2,800 1,453 325 4,578

El Salvador

Allocated 600 7,272 1,000 8,872

Unobligated balance 0 0 0 0

Uncommitteda 0 933 427 1,360

Committedb 600 6,339 574 7,513

Guatemala

Allocated 0 0 1,375 1,375

Unobligated balance 0 0 0 0

Uncommitteda 0 0 0 0

Committedb 0 0 1,375 1,375

Honduras

Allocated 0 0 1,514 1,514

Unobligated balance 0 0 0 0

Uncommitteda 0 0 1,514 1,514

Committedb 0 0 0 0

Nicaragua

Allocated 0 746 786 1,532

Unobligated balance 0 0 0 0

Uncommitteda 0 146 786 932
Page 16 GAO-13-295R CARSI Funding

Committedb 0 600 0 600

Panama

Allocated 600 2,159 1,800 4,559

Unobligated balance 0 0 0 0

Uncommitteda 0 141 109 250

Committedb 600 2,019 1,691 4,310

Source: GAO analysis of State data. 

Notes: Data as of September 30, 2011. Amounts rounded to nearest thousand. Figures in table may not sum 

correctly due to rounding.

a

For the purposes of this report, “uncommitted” amounts represent FMF obligations not yet committed for 

expenditure.

b

For the purpose of this report, “committed” amounts include FMF funding that has been committed, but not yet 

disbursed, and FMF funding that has been disbursed to a case.
Page 17 GAO-13-295R CARSI Funding

Enclosure III: Scope and Methodology

To describe the status of Central America Regional Security Initiative (CARSI) funding, we 

obtained data from the Department of State (State) and the United States Agency for 

International Development (USAID) concerning funds allocated to support programs in 

Central American countries under the Mérida Initiative in 2008 and 2009 and under CARSI 

in 2010 and 2011 through four accounts—International Narcotics Control and Law 

Enforcement (INCLE); Economic Support Fund (ESF); Nonproliferation, Anti-terrorism, 

Demining, and Related Programs (NADR); and Foreign Military Financing (FMF). We 

obtained the data from each bureau at State that administers those accounts (International 

Narcotics and Law Enforcement, Western Hemisphere Affairs, International Security and 

Nonproliferation, Counterterrorism, and Political-Military Affairs). We also obtained data from 

USAID, which also allocates and implements the ESF account. In particular, State and 

USAID provided data on the status of allocations, unobligated balances, unliquidated 

obligations, and disbursements for the ESF account; State also provided this data for the 

INCLE and NADR accounts. State’s bureaus and USAID administer the accounts separately 

and utilize their own data collection systems and budgeting terms. To address differences 

between their systems, we provided State and USAID with the definitions from GAO’s A 

Glossary of Terms Used in the Federal Budget Process (GAO-05-734SP) and requested 

that State and USAID provide the relevant data according to those definitions. To the extent 

possible, we worked with agencies to ensure that they provided data that met these 

definitions. However, FMF funds are budgeted and tracked in a different way than the other 

foreign assistance accounts that support CARSI. The Defense Security Cooperation Agency 

(DSCA) and the Defense Financing and Accounting Service (DFAS) are responsible for the 

financial systems that account for FMF funds, as well as tracking the implementation and 

expenditure of those funds. DSCA’s system can only track FMF uncommitted and committed 

amounts, not unliquidated obligations or disbursements. DFAS tracks disbursements using 

the Defense Integrated Finance System; however, there is no direct link between the DSCA 

and DFAS systems and the DFAS system does not track funding for specific initiatives, such 

as CARSI. Therefore, State was not able to provide data on unliquidated obligations or 

disbursements, but they were able to provide us with data on CARSI FMF allocations and 

commitments. We also interviewed officials from each of State’s bureaus and USAID on 

their budgeting process and terms to determine the best method for collecting comparable 

data across accounts. We then reviewed the data and consulted with State and USAID on 

the accuracy and completeness of the information. When we found discrepancies, we 

contacted relevant agency officials and worked with them to resolve the discrepancies. We 

noted any differences in the ways the agencies collected, categorized or reported their data 

in notes to the tables in this report. To assess the reliability of the data provided, we

requested and reviewed information from agency officials regarding the underlying financial 

data systems and the checks, controls, and reviews used to generate the data and ensure 

its accuracy and reliability. For the purposes of this review, we determined that the data 

provided were sufficiently reliable. 

We conducted our work from August 2012 through January 2013 in accordance with all 

sections of GAO’s Quality Assurance Framework that are relevant to our objective. The 

framework requires that we plan and perform the engagement to obtain sufficient and 

appropriate evidence to meet our stated objectives and to discuss any limitations in our 

work. We believe that the information and data obtained, and the analysis conducted, 

provide a reasonable basis for any findings and conclusions in this product. 
Page 18 GAO-13-295R CARSI Funding

Enclosure IV: GAO Contact and Staff Acknowledgments

GAO Contact

Charles Michael Johnson, Jr., (202) 512-7331, or johnsoncm@gao.gov

Staff Acknowledgments

In addition to the contact named above, Valérie Nowak, Assistant Director; Ian A. Ferguson; 

Marisela Perez; Ryan Vaughan; and Bruce Kutnick made major contributions to this report. 

Martin de Alteriis, Mary E. Moutsos, Ernie Jackson, Juan Gobel, and Karen Deans also 

provided assistance.

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