TAB D

The cost of cablegrams are also assigned to each program on a monthly basis. Each program director is responsible for identifying cable charges on the monthly bill.

Enclosed is an example of an annotated cablegram bill showing the method AAI uses to allocate charges for outgoing cables.

Question 8. I am also concerned that grant funds are used efficiently. I understand that last year your office of private sector programs conducted a worldwide survey with your overseas posts on the efficiency and effectiveness of the groups with which you have had long standing associations. You continue to support groups with high ratings such as operation crossroads Africa. This seems a sensible approach to work with those who maintain a proven track record. But I am disturbed that USIA continues to support the groups which received the very lowest ratings. These included partners of the Americas, sister cities, and council of International programs.

Why do you continue such substantial support to these groups when your own posts indicate they are, at best, of marginal use in meeting USIA objectives? Answer. The survey was limited to ten grantee organizations. Posts were asked to rank the organizations relative to each other. While the Agency believes the survey results to be useful as an indication of the relative value of these programs to the responding posts, the survey was not designed to determine the effectiveness of the programs in any more specific sense. A copy of the survey summary is attached.

Partners of the Americas and the Council of International Programs both received high ratings in the field evaluation. Over 90 percent of posts responding to the survey recommended that USIA sustain or even increase the level of funding of those organizations.

While it is true that, by comparison, Sister Cities International received only a "fair" rating, 50 percent of the responding posts recommended that the level of Agency support to the organization be maintained or increased. Several posts described SCI activities in quite positive terms. The report quotes a response from USIS Monrovia, for example, that states "there seems to be a certain magic associated with Sister Cities in Liberia; almost every city and town is interested, and SCI's activities in Liberia certainly justify a continuation or increase in Agency support."

The Bureau of Educational and Cultural Affairs is currently planning a thorough reevaluation later this fiscal year of all "traditional" grants programs. In addition, the Agency negotiates with all potential grantees upon submission of grant proposals to ensure that proposed activities meet the standards and longterm objectives of the Agency.

Question 9. Have these groups lobbied this Agency for continued funding? Answer. All current and potential grantee organizations promote the interests of the programs for which they submit proposals. Program officers are, in fact, encouraged to maintain a dialogue with requesting organizations to determine the quality of proposed projects. The Agency values close and continuing dialogue with the many private organizations that assist the Agency in carrying out its mission. We are, of course, conscious and watchful of the impropriety of grantee organizations charging to U.S. Government funds any expenses incurred in the promotion of their own activities.