oversight

Uncertain Political and Security Situation Challenges U.S. Efforts to Implement a Comprehensive Strategy in Yemen

Published by the Government Accountability Office on 2012-02-29.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                United States Government Accountability Office


GAO             Report to Congressional Committees




                Uncertain Political
February 2012



                and Security Situation
                Challenges U.S.
                Efforts to Implement a
                Comprehensive
                Strategy in Yemen




GAO-12-432R
United States Government Accountability Office
Washington, DC 20548




    February 29, 2012


    Congressional Committees


    Subject: Uncertain Political and Security Situation Challenges U.S. Efforts to Implement a
    Comprehensive Strategy in Yemen

    Yemen is an important U.S. partner in the fight against terrorism and violent extremism.
    According to U.S. officials, al Qaeda in the Arabian Peninsula (AQAP)—which is based in
    Yemen—is one of the top national security threats facing the United States. AQAP has shown
    the intent and capability to carry out attacks against U.S. targets both in Yemen and in the
    United States, including the September 2008 bombing of the U.S. embassy in the Yemen
    capital, Sanaa, and the failed attempts to blow up a U.S.-bound airplane in December 2009 and
    to send packages containing explosives on two separate airplanes bound for the United States
    in October 2010. Further, Yemen faces severe economic and social challenges, such as
    escalating unemployment at a time when over half of the population is under 18 years old.
    These challenges have not only made the country internally unstable, they have also created an
    attractive environment for recruiting militants. As a result, in recent years, U.S policymakers
    have dedicated greater attention and resources to addressing threats emanating from Yemen.

    Recognizing both the variety of threats emanating from Yemen, as well as the significant
    increase in U.S. assistance to Yemen, a Senate report directed the Comptroller General to,
    among other things, review this assistance. 1 This report describes (1) U.S. strategies and
    activities for assistance to Yemen and (2) the amounts and types of assistance that the U.S.
    government has provided to Yemen since fiscal year 2007. This description does not include
    information related to any covert activities that the United States may fund in Yemen. To
    address these objectives, we analyzed budget and financial data from the Department of State
    (State), the U.S. Agency for International Development (USAID), and the Department of
    Defense (DOD), which have provided the vast majority of U.S. assistance to Yemen. In
    addition, we reviewed governmentwide and agency-specific documents related to assistance to
    Yemen and interviewed relevant officials from each agency. Enclosure I contains additional
    information on our scope and methodology.



    1
     Senate Report 111-201, which related to the Ike Skelton National Defense Authorization Act of 2011,
    Pub. L. No. 111-383, Jan.7, 2011, directed the Comptroller General to report on several questions
    pertaining to Yemen. Given the country’s political unrest and deteriorating security situation throughout
    2011, we worked with the appropriate congressional committees to agree upon a two-phased reporting
    process. In this first phase, we assessed assistance strategies and plans, as well as amounts and types.
    We agreed to perform additional work at a later date as the security situation allows and in consultation
    with the appropriate congressional committees.


                                                                       GAO-12-432R U.S. Assistance to Yemen
We conducted this performance audit from August 2011 to February 2012 in accordance with
generally accepted government auditing standards. Those standards require that we plan and
perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that the evidence obtained
provides a reasonable basis for our findings and conclusions based on our audit objectives.

Summary

According to senior State officials, the overarching U.S. policy goal in Yemen is to create a
stable and secure state. To achieve that goal, the U.S. assistance strategy has for years
included both a security element focused on counterterrorism activities and a civilian element
focused on development activities. In 2009, in response to the increasing economic, social, and
political challenges facing Yemen, the U.S. government undertook a comprehensive review of
its policy toward Yemen. This review led to a whole-of-government strategy that still includes
both security and civilian assistance, but that, according to U.S. officials, is more integrated than
in prior years. The strategy seeks to simultaneously address security needs as well as the
underlying economic, social, and political grievances that can lead to violent extremism. U.S.
officials told us that assistance activities under this strategy have had to adjust to the changing
security situation on the ground. Further, officials told us they have recently begun reviewing
the strategy itself in light of the political changes under way in Yemen.

Since fiscal year 2007, U.S. agencies have allocated more than $642 million in security 2 and
civilian assistance to Yemen. Specifically, DOD, State, and USAID have allocated
approximately $326 million for security assistance and more than $316 million for civilian
assistance. Allocations reached their peak in fiscal year 2010, after a failed bomb attack on a
U.S.-bound airline by a Yemeni-trained Nigerian citizen in December 2009. In fiscal year 2011,
however, allocations declined sharply due primarily to the political turmoil in Yemen and the
difficulty of implementing training and equipping programs in such an environment, according to
U.S. officials.

Background

Yemen is the most impoverished country in the Middle East and North Africa region, faced with
numerous economic and social challenges. With a mostly mountainous interior, the country has
a scarcity of natural resources and is facing both severe water and fuel shortages. Oil is
Yemen's primary export, but oil production is in a steady decline. U.S. officials estimate that at
least 43 percent of the population lives on less than $2 per day. More than half of the
population of 23 million is under 18 years of age, and, according to UN estimates, the total
population is projected to double before the year 2040. At the same time, the UN estimates that
the unemployment rate for youth is 53 percent, and the overall illiteracy rate in Yemen is over 47
percent. USAID’s 2010-2012 Yemen Country Strategy reports that the capacity of the Yemeni
government to provide services is weak and is further undermined by widespread corruption
and the growing population pressure. Moreover, internal conflicts have created over 400,000

2
 State and DOD officials told us that there is no consensus about whether some funding accounts that
support security cooperation or security sector reform should be labeled “assistance”. For the purposes
of this report, however, we consider those accounts that funded overt security-related activities in Yemen
to be security assistance. Specifically, these funding accounts include: Foreign Military Financing,
International Narcotics Control and Law Enforcement, International Military Education and Training,
Nonproliferation, Antiterrorism, Demining and Related Programs, and Section 1206 Authority.


Page 2                                                              GAO-12-432R U.S. Assistance to Yemen
internally displaced persons throughout Yemen in need of not only basic government services
but also humanitarian assistance.

These economic and social challenges are exacerbated by the political tensions Yemen has
experienced for years. Since shortly after the unification of North Yemen and South Yemen in
1990, the government has countered secessionist movements in the south. In addition, the
government has had long-standing conflicts with various tribes, most notably with the Houthi
tribe in the north. Beginning in early 2011, mass protests against the 33-year regime of
President Ali Abdullah Saleh added to the unrest in the country (see fig. 1). Many of these
protests ended in bloodshed when government troops fired on the protestors or clashed with
troops that had sided with the protestors. In late November, after repeated vows to step aside,
Saleh signed an agreement put forth by the Gulf Cooperation Council 3 laying out a transfer of
power to his Vice President and calling for elections within 90 days. Protests have continued,
however, over the agreement’s immunity provision for Saleh and his subordinates.


Figure 1: Recent Yemeni Political Events (2011-2012)




Various U.S. agencies have worked with the government of Yemen to try to address these
economic, social, and political challenges. In particular, State and USAID have led
development and humanitarian activities while State and DOD have conducted counterterrorism
activities. Amidst the political turmoil of 2011, the Yemeni government struggled to address the
terrorist challenges throughout the country, although it increased its cooperation with the United
States on intelligence sharing and counterterrorism operations, according to U.S. officials.

U.S. Assistance Strategy Emphasizes Both Security and Civilian Assistance

U.S. assistance strategy and activities support the U.S. goal of a stable and secure Yemen. In
2009, the U.S. government undertook a comprehensive review of its policy toward Yemen. The
result was an integrated strategy that emphasizes both security and civilian assistance.
According to State officials, this assistance strategy is twofold as follows:



3
 The Cooperation Council for The Arab States of the Gulf, or Gulf Cooperation Council, was established
in 1981 between the countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates.
According to the Council’s charter, its objectives include effecting coordination, integration and inter-
connection between member states in all fields in order to achieve unity between them. The Gulf
Cooperation Council is a regional common market with a defense planning council as well.


Page 3                                                             GAO-12-432R U.S. Assistance to Yemen
   •     Strengthen Yemen’s ability to promote security and minimize threats. DOD security
         assistance activities have been focused on building Yemeni counterterrorism capacity.
         According to DOD officials, DOD’s activities have helped its Yemeni counterparts take
         direct counterterrorism action, increase their border security, and build both airlift and
         maritime capacity. However, they also said that in 2011 DOD suspended the majority of
         its security-related activities due to the deteriorating security situation. For example,
         DOD officials told us they had to stop the large training component of their assistance,
         because it was no longer safe to keep the trainers in Yemen.

   •     Mitigate economic crisis and governance deficiencies. USAID has led the
         implementation of civilian assistance activities. Prior to 2010, USAID activities focused
         on sector-based development interventions, such as separate programs for health or
         education, in five remote, impoverished, rural governorates. Given the deteriorating
         security context and the escalating development challenges, USAID determined that a
         new stabilization approach was necessary, transitioning to more integrated activities
         addressing the key grievances and drivers of instability in targeted, disadvantaged
         communities. Under this strategy, for example, the Community Livelihoods Program
         brings programs for health, education, and poverty reduction together under one
         implementation mechanism. In addition, USAID shifted the geographic focus of its
         programs. According to USAID officials, the deteriorating security situation denied
         program implementers access to certain areas, and they could not travel or establish a
         long-term presence in more remote locales. As a result, USAID began to focus
         assistance activities on large urban areas, which were more secure and accessible.
         Officials added that the collapse of government services, decline in economic activity,
         and other drivers of instability were also greatest in these areas, providing USAID the
         greatest potential for maximizing the impact of its interventions.

Given Yemen’s ongoing political unrest and security situation, U.S. officials told us they are
monitoring developments as they relate to future assistance activities. State and USAID officials
said that the overall twofold U.S. assistance strategy continues to guide their planning, but that
under a directive from the National Security Council, they have also recently begun a new
interagency strategic development process. They expect this process to last several months
and will allow agencies to react to the situation on the ground following the recent February
2012 presidential elections. DOD officials also said that once DOD is able to fully resume
security assistance activities in Yemen, it will continue to work toward its goal of building
Yemeni counterterrorism capacity. However, both State and DOD officials expressed some
concerns about future security assistance activities, including identifying who will be the key
U.S. partners in the Yemeni security forces. Until 2011, the United States trained and equipped
specialized security forces focused on counterterrorism that members of the Saleh family led.
While the implementing mechanism for the Gulf Cooperation Council political transition
agreement calls for the reorganization of the armed services, it is unclear how or when the
military will be reorganized and who will lead it.

U.S. Agencies Have Allocated More Than $642 Million in Security and Civilian Assistance
to Yemen Since Fiscal Year 2007, Peaking in 2010

Against the backdrop of security threats and worsening economic and humanitarian conditions,
DOD, State, and USAID have allocated more than $642 million in security and civilian
assistance to Yemen since fiscal year 2007 (see fig. 2). Security assistance has focused largely
on counterterrorism and border security activities, including training and the provision of
transport planes and helicopters, spare parts, and ammunition. Civilian assistance has sought to


Page 4                                                          GAO-12-432R U.S. Assistance to Yemen
address economic, social, and political inequities largely through development and humanitarian
activities targeted at vulnerable populations. (See enclosure II for more detailed information on
U.S. security and civilian assistance since fiscal year 2007.)
Figure 2: Total Allocations of U.S. Assistance to Yemen, Fiscal Years 2007–2011




As shown in figure 2, allocations of U.S. assistance peaked in fiscal year 2010. U.S. officials
told us the significant increase in fiscal year 2010 was largely in response to the attempted
bombing of a U.S.-bound airplane on Christmas Day, 2009. In fiscal year 2011, however,
overall allocations declined significantly. State and DOD officials said this decline was due
primarily to the political turmoil in Yemen and the difficulty of providing training in an insecure
environment. While many civilian assistance activities continued operating in 2011, DOD
officials suspended the majority of security assistance activities. Despite continued political
unrest and security concerns, agencies plan to provide significant security and civilian
assistance to Yemen in both fiscal years 2012 and 2013. 4

Concluding Observations

Terrorist threats emanating from Yemen have been a concern to U.S. policymakers for more
than a decade. To help the government of Yemen counteract the threat posed by AQAP as well
as other crises, the United States has provided assistance in a variety of areas, including
security assistance to Yemeni military and counterterrorism units. To mitigate the effects of
economic and humanitarian crises facing Yemen, State and USAID have provided
4
 While the 2012 Appropriations Acts have passed Congress and were signed into law by the President,
the agencies have decided allocations for some, but not all, of the relevant accounts for Yemen. The
fiscal year 2012 numbers we include in enclosure II remain as estimates. Agency budget requests for
fiscal year 2013 include increases in both bilateral security and civilian assistance over fiscal year 2011
actual allocations.


Page 5                                                               GAO-12-432R U.S. Assistance to Yemen
development, humanitarian, and other assistance. While the United States continued to provide
assistance through 2011, and remains committed to assisting Yemen in 2012, instability in
Yemen forced U.S. agencies to adjust and, in some cases, reduce, their planned assistance,
according to U.S. officials. Significant uncertainties, however, persist regarding the outcome of
the ongoing political transition in Yemen and the identity of future U.S. partners in Yemeni
security forces. These uncertainties may present challenges to U.S. agencies in developing
appropriate assistance plans and delivering assistance in support of U.S. policy goals.

Agency Comments

We provided a draft of this report to DOD, State, and USAID for review. None provided formal
comments, although each one provided technical comments, which we have incorporated
where appropriate.
                                             -----
We are sending copies of this report to the appropriate congressional committees, the
Secretaries of Defense and State, and the Administrator of USAID. The report is 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 key
contributions to this report are listed in enclosure IV.




Charles Michael Johnson, Jr.
Director, International Affairs & Trade

Enclosures (4)




Page 6                                                       GAO-12-432R U.S. Assistance to Yemen
List of Committees

The Honorable Carl Levin
Chairman
The Honorable John McCain
Ranking Member
Committee on Armed Services
United States Senate

The Honorable John F. Kerry
Chairman
The Honorable Richard G. Lugar
Ranking Member
Committee on Foreign Relations
United States Senate

The Honorable Howard P. McKeon
Chairman
The Honorable Adam Smith
Ranking Member
Committee on Armed Services
House of Representatives

The Honorable Ileana Ros-Lehtinen
Chairman
The Honorable Howard L. Berman
Ranking Member
Committee on Foreign Affairs
House of Representatives




Page 7                              GAO-12-432R U.S. Assistance to Yemen
Enclosure I


                                     Scope and Methodology

To describe U.S. strategies and activities for assistance to Yemen, we reviewed relevant
documents from the Department of State (State) and the U.S. Agency for International
Development (USAID) including Mission Strategic and Resource Plans and Operational Plans
for fiscal years 2007–2012. We also interviewed relevant officials from State, USAID, and the
Department of Defense (DOD) in Washington, D.C.

To describe the amounts and types of assistance that the U.S. government has provided to
Yemen since fiscal year 2007, we analyzed budget and financial data, including Congressional
Budget Justifications, from State, DOD, and the USAID Mission in Sanaa. In particular, State
provided data on the status of allocations, obligations, unobligated balances, and disbursements
as of September 30, 2011, for all of the funding accounts that support civilian assistance in
Yemen, as well as those security assistance accounts that State administers (Foreign Military
Financing; International Narcotics Control and Law Enforcement; International Military
Education and Training; and Nonproliferation, Antiterrorism, Demining and Related Programs).
State collected the data directly from each account’s manager if it was a State-implemented
account and from the USAID Mission if it was a USAID-implemented account. DOD collected
and provided data on the security-related accounts that DOD implements. All data are on overt
activities and are nominal numbers that have not been adjusted for inflation. Recognizing that
different agencies may use slightly different accounting terms, we provided each agency with
the definitions from GAO’s A Glossary of Terms Used in the Federal Budget Process (GAO-05-
734SP ) and requested that each agency provide the relevant data according to those
definitions. To assess the reliability of the data provided, we requested and reviewed
information from officials from each agency regarding the agency’s underlying financial data
system(s) and the checks, controls, and reviews used to ensure the accuracy and reliability of
the data provided. For purposes of this report, we determined that the data provided were
sufficiently reliable.

For the detailed account information we include in this report’s enclosures, we chose a selection
of accounts that included consideration of these factors: (1) the overall level of assistance
provided to Yemen since fiscal year 2007 (2) significant shifts or changes in funding levels
between fiscal years, and (3) category or type of assistance (i.e., security, civilian, bilateral, and
humanitarian, etc.).

We conducted this performance audit from August 2011 to February 2012 in accordance with
generally accepted government auditing standards. Those standards require that we plan and
perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that the evidence obtained
provides a reasonable basis for our findings and conclusions based on our audit objectives.




Page 8                                                           GAO-12-432R U.S. Assistance to Yemen
                                               Enclosure II
                                                   Overview: U.S. Security Assistance to Yemen
                                                   U.S. Agencies Provided Over $326 million from Fiscal
                                                   Years 2007 through 2011
Security Assistance Background
                                                   From fiscal year 2007 through fiscal year 2011, total allocations of security assistance to
DOD and State provided security                    Yemen were over $326 million (see fig. 3). In 2010, security assistance to Yemen more
                                                   than doubled as part of an effort to combat AQAP and, according to DOD officials, was
assistance to Yemen primarily in the form
                                                   primarily in response to the failed bomb attack on a U.S.-bound airplane by a Yemeni-
of counterterrorism and border security
                                                   trained terrorist. The main goal of security assistance has been to build the Yemeni
training and equipment. The major sources
                                                   government’s CT capacity. Section 1206 Authority provided the majority of this
of funding for security assistance come
                                                   assistance through fiscal year 2010, but provided no funds in 2011 due to the
from Section 1206 Authority and Foreign
                                                   deteriorating security situation, according to DOD officials.
Military Financing, with a large increase
estimated for International Narcotics              Figure 3: Allocations of U.S. Security Assistance to Yemen, Fiscal Years
Control and Law Enforcement funds in               2007-2012
fiscal year 2012. DOD and State estimate
over $36 million in bilateral security
assistance for fiscal year 2012 but have not
yet determined the level of assistance from
Section 1206 Authority.

                                    1
Contingency Security Assistance
Funding from Section 1206 Authority
makes up the contingency security
assistance going to Yemen and is intended
to address U.S. military priorities and
urgent and emergent counterterrorism and
stabilization needs. From 2006—when the
1206 Authority was established—through
2010, Yemen was the largest overall
recipient of 1206 funds globally.

Bilateral Security Assistance
This assistance is made up of a number of
accounts and programs with various goals.
However, State and DOD officials told us
that the central focus of bilateral security
assistance in Yemen has been to enable
and assist the counterterrorism strategy           a
                                                   Fiscal year 2012 estimates for Section 1206 are not currently available.
currently in place.
                                                   According to U.S. officials, security assistance to Yemen includes programs funded
The following slides will include more             through the following appropriation accounts managed either jointly or separately by
                                                                    2
detailed information on Section 1206               DOD and State. (Dollar figures are total amounts allocated for fiscal years 2007-2011):
Authority, Foreign Military Financing, and         Contingency Security Assistance
International Narcotics Control and Law
Enforcement. Detailed tables for remaining         •   Section 1206 Authority ($249 million)
accounts can be found in enclosure III.
                                                   Bilateral Security Assistance
                                                   • Foreign Military Financing (FMF) ($48.9 million)
                                                   • Nonproliferation, Antiterrorism, De-mining, and Related Programs (NADR) ($20.5
                                                     million)
                                                   • International Military Education and Training (IMET) ($5.2 million)
                                                   • International Narcotics Control and Law Enforcement (INCLE) ($3.2 million)


                                               1
                                                For the purposes of this report, we use the term “contingency” to refer to accounts that are
                                               managed globally and do not typically request funds on a bilateral, country-specific basis
                                               2
                                                State and DOD officials told us that there is no consensus about whether some funding accounts
                                               that support security cooperation or security sector reform should be labeled “assistance”. For the
                                               purposes of this report, however, we consider these accounts security assistance. These accounts
                                               do not include any covert, classified assistance that the United States may have provided.

                                               Page 9                                                     GAO-12-432R U.S. Assistance to Yemen
                                             Enclosure II
Security Assistance                          Status of Funds: Section 1206 Authority
Section 1206 Background
                                             •   From fiscal year 2007 through fiscal year 2010, State and DOD
State and DOD jointly administer                 allocated a total of $249 million5in Section 1206 assistance for
Section 1206 assistance. Funded                  Yemen (see fig. 4 and table 1). DOD reported that all allotted funds
                                                 had been obligated and $244 million had been disbursed. Funds
from the DOD operation and                       remaining for disbursement from the unliquidated obligation total $4
maintenance account, Section 1206                million.
funds remain available for 1 year for
obligation. Once the period of               •   According to DOD officials, 1206 funds were not allocated to Yemen
                                                 in fiscal year 2008 because other countries such as Pakistan took
availability for new obligations                 priority. Additionally, no allocation was made in fiscal year 2011
expires, the funds are available for             due to the political unrest that began early that year. Further, DOD
an additional 5 years to liquidate the           put the delivery of a CN-235 aircraft and some other equipment on
obligations. 3                                   hold until U.S. officials determine that delivery is appropriate.
                                             •   State and DOD have not yet determined any 1206 allocation to
The National Defense Authorization               Yemen for fiscal year 2012; funds for this account are requested
Act for fiscal year 2006, as                     globally, rather than on a country-specific basis. DOD officials said
amended, established the authority               that a decision has not yet been reached about whether funds will
                                                 be allotted to Yemen, but they are developing contingency plans for
for Section 1206 programs to train               that possibility.
and equip foreign military and
nonmilitary maritime forces, such as         Figure 4: 1206 Assistance to Yemen, Fiscal Years 2007-2012
coast guards, to conduct
counterterrorist operations or to
support military and stability
operations in which the U.S. armed
forces are a participant. 4

Beginning in fiscal year 2009,
Section 1206 funding became a
significant source of U.S. security
assistance to Yemen. The majority
of Section 1206 assistance, over 60
percent, was allocated in fiscal year
2010. These funds were used to
enhance the counterterrorism (CT)
capability of Yemeni Special
Operations Forces and to provide
small airplanes and helicopters and
other aircraft support to the Yemeni
Air Force to enable it to support
Yemeni CT units.




                                             a
                                              State and DOD have not yet determined any allocation to Yemen for FY 2012. 1206 funds are
                                             requested globally, rather than on a country-specific basis.




                                         3
                                          Expired funds may also be used for certain contract modifications.
                                         4
                                          National Defense Authorization Act for Fiscal Year 2006, Pub. L. No. 109-163, Jan. 6, 2006.
                                         5
                                          Figures here may differ slightly from table below due to rounding errors.

                                         Page 10                                              GAO-12-432R U.S. Assistance to Yemen
Table 1: 1206 Programs by Fiscal Year of Allocation from 2007 through 2010, as of 9/30/11
(Dollars in millions)
                                                                         Value of defense
 DESCRIPTION
                                                                     articles and training
 Fiscal year 2007
 Counterterrorism Units and Mobile Training Teams: This program was intended to
 enhance Yemen’s border security capability. It included equipment such as cargo
 transport vehicles, infantry light armored vehicles, light tactical wheeled vehicles, spare
 parts, crisis action center equipment, and transportation.
                                                                                                                  $26
 Fiscal year 2009

 Aerial Surveillance Counterterrorism initiative: This program was designed to build
 the capacity of the Yemini Air Force to conduct CT operations by providing aerial
 surveillance capability for internal stability and combating terrorism within and at its
 borders. It included helicopter spare parts and surveillance cameras.
                                                                                                                  $5.9

 Counterterrorism Initiative for Increased Border Security: This program was
 designed to provide the Yemeni Border Security Force with the capability to deter,
 detect, and detain terrorists along the Yemen, Saudi Arabia, and Oman borders. It
 included trucks, radio systems and operations/maintenance training.
                                                                                                                 $25.4

 Coast Guard Patrol Maritime Security Counterterrorism Initiative: This program is
 intended to enhance Yemeni Coast Guard capability to provide internal stability and CT
 within its territorial waters. It is intended to help build the capacity of Yemen’s maritime
 security forces to conduct CT operations by providing equipment and training to the
 Yemeni Coast Guard to improve its ability to identify, detain, and apprehend terrorists,
 and to respond to terrorist incidents within its area of responsibility. Some training
 and/or deliveries are still pending for this program.
                                                                                                                 $30.1

 Explosive Ordnance Disposal Counterterrorism Initiative: This program is intended
 to assist Yemen's Ministry of Defense in improving its improvised explosive device
 ordnance mitigation and response to counter resurgence in terrorist activity. Some
 training and/or deliveries are still pending for this program.
                                                                                                                  $5.8
 Fiscal year 2010
 Special Operations Force Counterterrorism Enhancement Package: This program
 is intended to improve tactical effectiveness of Yemeni Special Operations Force
 (YSOF). The program was intended to build the capacity of Yemen’s national military
 forces to conduct CT operations by providing equipment and training to enhance the
 YSOF’s mobility, situational awareness, survivability, communications, and tactical
 proficiency in support of YSOF’s CT mission. It includes vehicles, weapons,
 ammunition, and night vision goggles. Some training and/or deliveries are still pending
 for this program.
                                                                                                                 $34.5
 Rotary-Wing Medium Lift: This program is intended to help build the capacity of
 Yemen’s national military forces to conduct CT operations by providing equipment and
 training to increase Yemen’s rotary-wing medium-lift capability. This program is
 intended to allow the Yemen Air Force to transport small units to participate in day- or
 night-time operations at high altitude. It includes Huey II helicopters (4), spare parts,
 maintenance and training. Some training and/or deliveries are still pending for this
 program.                                                                                                        $82.8
 Fixed-Wing Tactical Heavy Lift: This program is intended to provide equipment and
 training to improve the operational reach and reaction time of CT forces. Includes a
 CASS CN-235 aircraft for 51 troops, parts, tools, and maintenance. Some training
 and/or deliveries are still pending for this program.
                                                                                                                  $38
Source: GAO analysis of DOD data.




                                     Page 11                                            GAO-12-432R U.S. Assistance to Yemen
                                           Enclosure II
Security Assistance
                                           Status of Funds: Foreign Military Financing
FMF Background

State administers FMF funding,             •   From fiscal year 2007 through fiscal year 2011, State allocated a
with significant input from the                total of $49 million from this account for Yemen (see fig. 5). 9 State
embassies, DOD, and the regional               reported that all allocated funds had been obligated and $21 million
military commands. DOD’s Defense               had been disbursed. Funds remaining for disbursement from the
                                               unliquidated obligation balance total $28 million.
Security Cooperation Agency
executes the program. This                 •   According to DOD officials, the security situation on the ground in
funding is available for obligation            2011 led to discussions about what would be appropriate to provide
for 1 year 6 and is considered                 to Yemen. DOD put a hold on some deliveries but resumed
obligated upon apportionment                   delivering nonlethal items in September 2011.
based on annual appropriations bill
language. 7 Once the period of             •   The estimated fiscal year 2012 funding would keep FMF funding to
                                               Yemen steady at $20 million. Actual funding may vary from the
availability for new obligations               amount estimated.
expires, the funds are available for
an additional 5 years to liquidate         Figure 5: FMF Assistance to Yemen, Fiscal Years 2007-2012
the obligations. 8 The funds remain
entirely within the U.S. government
until the point at which payments
are made to defense companies for
goods and services rendered.


FMF provides grants and loans to
foreign governments and
international organizations for the
acquisition of U.S. defense
equipment, services, and training.
In Yemen, FMF funds help
Yemen’s Air Force to sustain its
two C-130H aircraft, as well as a
handful of its serviceable F-5
fighter aircraft. The United States
also has provided Yemen’s Coast
Guard with fast response boats
(Archangel and Defender Class)
using FMF grants. FMF funds also
are used to supplement training for
Yemen’s Ministry of Interior Forces,
specifically from the U.S.-funded
Counter Terrorism Unit inside the          Notes : FMF funds are obligated at the same time they are apportioned.
Central Security Force.                    a
                                           Figures in table may not sum correctly due to rounding error.




                                       6
                                         According to agency officials, pursuant to authority generally provided in the annual Department of
                                       State, Foreign Operations and Related Programs Appropriations Act, certain funds that have been
                                       deobligated remain available for obligation for an additional four years from the date on which the
                                       availability of such funds would otherwise expire if the funds are initially obligated before they would
                                       have expired.
                                       7
                                         Annual appropriations for FMF generally have contained language that states that FMF funds shall
                                       be obligated upon apportionment. For the most recent appropriations containing this language see
                                       the Consolidated Appropriations Act, 2012, Pub. L. No. 112-74, Dec. 23, 2011.
                                       8
                                         Expired funds may also be used for certain contract modifications.
                                       9
                                         Figures here may differ slightly from table below due to rounding errors.

                                       Page 12                                                 GAO-12-432R U.S. Assistance to Yemen
                                          Enclosure II

Security Assistance                       Status of Funds: International Narcotics
                                          Control and Law Enforcement
INCLE Background
                                          •       From fiscal year 2007 through fiscal year 2011, State allocated a
State administers INCLE funding
                                                  total of $3.3 million from this account for Yemen (see fig. 6). Of that
and uses it to assist the
                                                  amount, State reported that $1.5 million had been obligated, and $.4
Government of Yemen in
                                                  million had been disbursed. Funds remaining for disbursement from
developing its law enforcement and
                                                  the unliquidated obligation balance total $1 million. From the fiscal
judicial capacity. These funds are
                                                  year 2011 funding, $1.8 million remains to be obligated.
generally available for obligation for
2 years. Once the period of
availability for new obligations          •       As of September 2011, State had not yet obligated or expended
expires, the funds are available for              fiscal year 2011 INCLE funds due to political instability and the
an additional 5 years to liquidate                Embassy’s ordered departure status from March-September 2011.
the obligations. 10
                                          •       The estimated fiscal year 2012 assistance would significantly
INCLE funding levels from fiscal                  increase INCLE funding to Yemen for programs that are intended to
years 2007 to 2011 were relatively                support efforts towards the development of a more responsive,
low compared with the funding                     professional, and accountable criminal justice system. Actual funding
level requested for fiscal year 2012.             may vary from the amount estimated.
State expects the 2012 funds to
provide technical assistance,             Figure 6: INCLE Assistance to Yemen, Fiscal Years 2007-2012
training, and equipment to Yemen’s
civilian law enforcement and
judicial institutions. Specifically,
State intends the funds to support
efforts to enhance the Yemeni
government’s delivery of basic
policing and justice services that
respond to citizens’ crime and
public safety concerns, particularly
in underserved regions, and that
combat the influence of AQAP.




                                          a
                                              Figures in table may not sum correctly due to rounding error.




                                         10
                                              Expired funds may also be used for certain contract modifications.


                                         Page 13                                                  GAO-12-432R U.S. Assistance to Yemen
                                                 Enclosure II

                                                 Overview: U.S. Civilian Assistance to Yemen
                                                 U.S. Agencies Provided Over $316 million from Fiscal
                                                 Years 2007 through 2011
Civilian Assistance                              From fiscal year 2007 to fiscal year 2011, total allocations of civilian assistance to Yemen
Background                                       were over $316 million (see fig. 7). Civilian assistance funds a variety of programs and
                                                 activities meant to aid vulnerable populations and address the underlying drivers of
The U.S. government, through USAID
                                                 instability in Yemen. Reflecting the increased focus on a whole-of-government approach,
and State, provides civilian assistance to
                                                 a significant increase in these funds appears in fiscal year 2010. In fiscal year 2011,
Yemen, including:
                                                 funding dipped slightly but remained relatively high compared with years prior to 2010.
Development Assistance                           Estimated figures for fiscal year 2012 are not currently available for humanitarian and
These bilateral accounts primarily fund          contingency accounts but do include figures for accounts under development assistance.
programs designed by USAID to meet               However, USAID and State officials noted that it’s likely that funding will be provided
the goals of its country strategy. Most          through those accounts in fiscal year 2012, as there will remain a need to fund activities
recently, funds have been drawn upon             such as aiding internally displaced persons, increasing institutional capacities, and
for various activities under two                 assisting in any electoral technical assistance during any political transition.
overarching programs, the Community
Livelihoods Project (CLP) and the                Figure 7: Allocations of U.S. Civilian Assistance to Yemen, Fiscal Years 2007-2012
Responsive Governance Project (RGP).
These are the main implementing
mechanisms for USAID’s stabilization
strategy; the CLP attempts to improve
standards of living, reduce poverty and
unemployment, and improve access to
public services, while the RGP aims to
strengthen government institutions and
improve the delivery of public services
while encouraging more citizen
participation in the government
processes.

Humanitarian Contingency Assistance
State and USAID provide humanitarian
assistance to populations including
internally displaced persons (IDP),
refugees, and other individuals affected
by the conflict in the north and fighting
                                                 a
between Yemeni forces and militant                Humanitarian and other contingency accounts do not request funds on a country-specific basis, so no
groups in the south. Current U.S.                2012 estimates are available at this time.
funding supports shelter, food aid,
emergency relief supplies, safe water            According to U.S. officials, civilian assistance to Yemen includes programs funded
supplies, sanitation assistance, camp            through the following appropriation accounts (Dollar figures are total amounts allocated
coordination and management,                     for fiscal years 2007-2011):
protection, health and nutrition, and
medical supplies.                                Development Assistance
                                                 • Economic Support Fund (ESF) ($61.8 million)
Other Contingency Assistance                     • Development Assistance (DA) ($52.1 million)
Funds under this category have various           • Global Health and Child Survival- USAID (GHCS) ($22.9 million)
specific purposes; however, they are             Humanitarian Contingency Assistance
                                                                                                 11
generally used to provide aid during
times of crisis, instability, or other similar   •   Migration and Refugee Assistance (MRA) ($50.6 million)
circumstances.                                   •   Food for Peace (FFP) ($37.3 million)
                                                 •   International Disaster Assistance (IDA) ($31.7 million)
The following slides will include more           •   Emergency Refugee and Migration Assistance Fund (ERMA) ($11.4 million)
detailed information on some of the              Other Contingency Assistance
accounts receiving the largest levels of
                                                 • Section 1207 Authority ($18.9 million)
funding, including ESF, DA, GHCS,
                                                 • Complex Crises Fund (CCF) ($12.8 million)
MRA, and FFP. Detailed figures for
                                                 • Transition Initiatives (TI) ($9.3 million)
remaining accounts can be found in
                                                 • Middle East Partnership Initiative (ESF) ($3.5 million)
enclosure III.                                   • Conflict Management and Mitigation (USAID). (Via ESF) ($2.6 million)
                                                 • USAID/DCHA/DG (Via DF) ($ 1.2 million)
                                                 • Conflict Management and Mitigation (USAID). (Via DA) ($ 0.7 million)

                                                 11
                                                   DOD provides some humanitarian assistance through its Overseas Humanitarian Disaster
                                                 Assistance Civil Aid office which is not included here.

                                                 Page 14                                                GAO-12-432R U.S. Assistance to Yemen
                                      Enclosure II
Civilian Assistance                   Status of Funds: Development Assistance
DA Background
                                      •      From fiscal year 2007 through fiscal year 2011, USAID allocated a
USAID administers DA-funded                  total of $52 million from this account for Yemen (see fig. 8). 13 Of that
programs in Yemen. These funds               amount, USAID reported that all allocated funds had been obligated
are available for obligation for 2           and $22 million had been disbursed. Funds remaining for
years. Once the period of                    disbursement from the unliquidated obligations total $30 million.
availability for new obligations
expires, the funds are available      •      Officials noted that problems with operational security,
for an additional 5 years to                 implementation capacity, and ongoing political instability in Yemen in
liquidate the obligations. 12                2011 created a difficult environment for providing assistance which
                                             contributed to delays in the implementation and operation of some
DA funded programs support                   programs.
U.S. engagement with developing
countries on critical global issues   •      According to State and USAID officials, no funds were requested
such as efforts to improve food              from DA in fiscal years 2011 or 2012 because funds drawn from ESF
security and to address the                  would allow for more programming flexibility and be more appropriate
causes and impacts of climate                for intended uses.
change. For example, in Yemen,
USAID sponsored two women’s           Figure 8: DA Assistance to Yemen, Fiscal Years 2007-2012
political platform development
workshops promoting female
political participation in public
policy that were attended by 75
women activists and leaders
representing diverse political
parties and affiliations.




                                      12
                                           Expired funds may also be used for certain contract modifications.
                                      13
                                           Figures here may differ slightly from table below due to rounding errors.

                                      Page 15                                                  GAO-12-432R U.S. Assistance to Yemen
                                              Enclosure II

Civilian Assistance                           Status of Funds: Economic Support Fund

ESF Background                                •   From fiscal year 2007 through fiscal year 2011, USAID allocated a
                                                  total of $62 million from this account for Yemen (see fig. 9). 15 Of that
USAID and State offices administer                amount, USAID reported that $35 million had been obligated and
ESF-funded programs in Yemen.                     $29 million had been disbursed. Funds remaining for disbursement
                                                  from the unliquidated obligations total $6.3 million. From the fiscal
These funds are available for                     year 2011 funding, $27 million remains to be obligated.
obligation for 2 years. Once the
period of availability for new                •   Officials noted that problems with operational security,
obligations expires, the funds are                implementation capacity, and ongoing political instability in Yemen
available for an additional 5 years to            in 2011 created a contentious environment for providing assistance
liquidate the obligations 14                      which contributed to delays in the implementation and operation of
                                                  some programs.
The ESF advances U.S. interests by            •   The estimated fiscal year 2012 funding for ESF includes ongoing
helping countries meet short- and                 support for programs aligned with USAID’s country strategy in
long-term political, economic, and                Yemen. Actual funding may vary from the amount estimated.
security needs. USAID and State
address these needs through a                 Figure 9: ESF Assistance to Yemen, Fiscal Years 2007-2012
range of activities, from countering
terrorism and extremist ideology to
increasing the role of the private
sector in the economy; assisting in
the development of effective,
accessible, independent legal
systems; supporting transparent and
accountable governance; and the
empowerment of citizens. For
example, in Yemen funds have gone
to programs such as a 4-year, $17
million agreement to provide support
in education through the Basic
Education Support and Training
Project.




                                         14
                                          Expired funds may also be used for certain contract modifications.
                                         15
                                          Figures here may differ slightly from table below due to rounding errors.


                                         Page 16                                              GAO-12-432R U.S. Assistance to Yemen
                                              Enclosure II

Civilian Assistance                           Status of Funds: Global Health and Child
                                              Survival-USAID
GHCS Background                               •   From fiscal year 2007 through fiscal year 2011, USAID allocated a
                                                  total of $23 million from this account for Yemen (see fig. 10). 17 Of
USAID administers GHCS-funded                     that amount, USAID reported that $14 million had been obligated
programs in Yemen. These funds                    and $6 million had been disbursed. Funds remaining for
are available for obligation for 2                disbursement from the unliquidated obligations total $8 million.
years. Once the period of                         From the fiscal year 2011 funding, $9 million remains to be
availability for new obligations                  obligated.
expires, the funds are available for          •   Officials noted that problems with operational security,
an additional 5 years to liquidate the            implementation capacity, and ongoing political instability in Yemen
obligations 16                                    in 2011 created a difficult environment for providing assistance
                                                  which contributed to delays in the implementation and operation of
The GHCS account funds health-                    some programs.
related foreign assistance.
                                              •   The estimated fiscal year 2012 funding for GHCS includes ongoing
Investments in global health                      support for programs aligned with USAID’s country strategy in
strengthen fragile or failing states,             Yemen. Actual funding may vary from the amount estimated.
promote social and economic
progress, and support the rise of             Figure 10: GHCS Assistance to Yemen, Fiscal Years 2007-2012
capable partners that can help to
solve regional and global problems.
In 2011, the Community Livelihoods
Project used GHCS funds to provide
11 Yemen Ministry of Health Mobile
Medical Teams with essential
equipment, medical supplies, and
materials. The teams provide
needed primary health care services
to over 4,000 patients per month.




                                         16
                                          Expired funds may also be used for certain contract modifications.
                                         17
                                          Figures here may differ slightly from table below due to rounding errors.


                                         Page 17                                              GAO-12-432R U.S. Assistance to Yemen
                                              Enclosure II

Civilian Assistance                           Status of Funds: Migration and Refugee
                                              Assistance
MRA Background
                                              •    From fiscal year 2007 through fiscal year 2011, State allocated a total of
State administers MRA funding.                                                                           18
                                                   $51 million from this account for Yemen (see fig. 11). State reported that
These funds are generally                          all allocated funds had been obligated and that $48 million had been
considered “no year” money and                     disbursed. Funds remaining for disbursement from the unliquidated
remain available until expended.                   obligations total $2 million.

                                              •    According to State officials, some factors that might contribute to higher
The MRA supports programs of                       levels of disbursement from some humanitarian accounts such as MRA,
international humanitarian                         include the fact these programs are focused on humanitarian interventions,
organizations such as the UN High                  which require a quick response by partners, have a specific set of
Commissioner for Refugees                          interventions with standard approaches, are focused on IDPs and conflict
(UNHCR), as well as                                victims, and have a more experienced/established set of implementers and
nongovernmental organization                       staff.
partners to address pressing
                                              •    Although the fiscal year 2012 budget request for MRA does not identify a
humanitarian needs. These funds                    country-specific amount for Yemen, it does indicate that it includes support
support programs that meet basic                   for Yemeni IDPs and conflict victims affected by the civil war in northern
needs to sustain life and provide                  Yemen. This assistance will continue to focus primarily on providing
protection and assistance to the                   shelter, food and water, medical care, protection services, and other
most vulnerable, particularly women                emergency assistance.
and children and the elderly.
                                              Figure 11: MRA Assistance to Yemen, Fiscal Years 2007-2012
In Yemen, U.S. humanitarian
partners provide protection services,
basic assistance, and education to
IDPs, conflict victims, and refugees
and migrants from the Horn of Africa
who have fled to Yemen. In 2011,
UNHCR reported assisting over
460,000 IDPs in Yemen, and does
not expect a large number of returns
in 2012 due to ongoing unrest and
security concerns, as well as a lack
of infrastructure or services in IDPs’
areas of origin.




                                              Note: MRA funds are not appropriated or allotted at the country level, and funding is determined
                                              internally each year. There are therefore no unobligated balances for Yemen.
                                              a
                                              Figures in table may not sum correctly due to rounding error.
                                              b
                                               According to agency officials, MRA funds are requested globally, rather than on a country-specific
                                              basis. State has not yet determined any MRA allocation to Yemen for fiscal year 2012.


                                         18
                                          Figures here may differ slightly from table below due to rounding errors.

                                         Page 18                                                 GAO-12-432R U.S. Assistance to Yemen
                                          Enclosure II
Civilian Assistance                       Status of Funds: Food for Peace
FFP Background

USAID administers FFP funding.            •   From fiscal year 2007 to fiscal year 2011, USAID allocated a total of
The funds are considered “no year”            $37 million from this account for Yemen (see fig.12). USAID
money and remain available until              reported that entire amount as obligated and disbursed. This rate of
expended.                                     disbursement is higher than that of other accounts reviewed over
                                              this period. A USAID official noted that a large amount of FFP
                                              assistance is disbursed by simply purchasing and transporting food,
Title II of the Food for Peace Act
authorizes the provision of direct            which increases the rate of disbursement funds.
donation of U.S. agricultural
commodities for emergency relief          •   Food for Peace activities assisted IDPs and conflict-affected
and development around the world              Yemenis in fiscal year 2011 by providing 17,430 metric tons of food
and funds nonemergency,                       assistance to address continuing food needs of those most
development-oriented resources to             impacted by the conflict in the North.
help address the underlying causes
of food insecurity.                       •   USAID does not allot FFP funds at the country level, and funding is
                                              determined internally each year. Therefore, no fiscal year 2012
According to USAID, FFP and its               estimates for Yemen are currently available.
implementing partners support a
humanitarian response program for         Figure 12: FFP Assistance to Yemen, Fiscal Years 2007-2012
meeting existing needs in the north
resulting from the protracted conflict
between Yemini forces and al-
Houthi opposition. This conflict has
displaced some hundreds of
thousands of people and affected at
least a million people. IDPs have
had limited access to food, shelter,
education, and health care.




                                          a
                                           USAID has not yet determined any allocation to Yemen for FY 2012. FFP funds are requested
                                          globally, rather than on a country-specific basis.




                                         Page 19                                          GAO-12-432R U.S. Assistance to Yemen
Enclosure III


                  Additional U.S. Assistance to Yemen, By Year of Appropriation


Security Assistance
Bilateral Security Assistance (IMET, NADR)
International Military Education and Training (IMET)
 $ in thousands                              FY 07               FY 08               FY 09              FY 10               FY 11
 Allocated                                    1,006                 945              1,000               1,153              1,100
 Unobligated balance                               0                  0                   0                   0                     0
 Unliquidated obligations                       288                 336                396                 250                899
 Disbursed                                      718                 609                604                 903                201
Note: According to State officials, IMET expenditures are not finalized until all course costs are paid, which may be years after
the fiscal year of obligation.


 Nonproliferation, Antiterrorism, De-mining, and Related Programs (NADR)
There are several programs below funded through the Department of State’s NADR appropriations account. For
the purposes of our report they are listed individually here.
 Antiterrorism Assistance - NADR
 $ in thousands                              FY 07               FY 08               FY 09              FY 10               FY 11
 Allocated                                    1,197                 744                790               2,000              2,500
 Unobligated balance                               0                  5                  26                 52              2,500
 Unliquidated obligations                       421                  94                336                 126                      0
 Reprogrammed                                      0                  0                   0              1,550                      0
 Disbursed                                      776                 645                428                 272                      0
Note: According to State officials, due to internal political unrest in Yemen, it was not viable for ATA to continue conducting
training there in 2011. Accordingly, $1,550,000 of FY 10 NADR-ATA bilateral funding was reprogrammed. The provision of
training and equipment over the last several years in Yemen has become increasingly difficult to implement due to Yemen’s
complicated security environment. Consequently, $5,000 of FY 08 NADR/ATA Yemen funding, $26,000 of FY 09 NADR/ATA
Yemen funding, and $52,000 of FY 10 NADR/ATA Yemen funding was not obligated and has expired.

 Counterterrorism Financing - NADR
 $ in thousands                    FY 07                         FY 08               FY 09              FY 10               FY 11
 Allocated                                      300                 298                100                 375                      0
 Unobligated balance                               0                  0                   0                   0                     0
 Unliquidated obligations                          0                  0                   0                   0                     0
 Disbursed                                      300                 298                100                 375                      0
 Export Control and Related Border Security Assistance - NADR
 $ in thousands                     FY 07           FY 08                            FY 09              FY 10               FY 11
 Allocated                                      350                 500                410                 820              1,000
 Unobligated balance                               0                  0                   0                   0                     0
 Unliquidated obligations                          0                  0                  99                220              1,000
 Disbursed                                      350                 500                311                 600                      0
 Conventional Weapons Destruction - NADR
 $ in thousands                    FY 07                         FY 08               FY 09              FY 10               FY 11
 Allocated                                         0                  0                   0                   0             1,000
 Unobligated balance                               0                  0                   0                   0                     0
 Unliquidated obligations                          0                  0                   0                   0               500
 Disbursed                                         0                  0                   0                   0               500



Page 20                                                                             GAO-12-432R U.S. Assistance to Yemen
Enclosure III


 Humanitarian Demining Program - NADR
 $ in thousands                   FY 07                 FY 08            FY 09            FY 10            FY 11
 Allocated                                375                0              400            1,000                0
 Unobligated balance                        0                0                0                0                0
 Unliquidated obligations                   0                0                0                0                0
 Disbursed                                375                0              400            1,000                0
 Small Arms Light Weapons Destruction - NADR
 $ in thousands                    FY 07                FY 08            FY 09            FY 10            FY 11
 Allocated                                525                0                0                0                0
 Unobligated balance                        0                0                0                0                0
 Unliquidated obligations                   0                0                0                0                0
Disbursed                                 525              0               0              0             0
Note: Beginning in FY 2011, funding for the Humanitarian Demining and Small Arms/Light Weapons Programs
are consolidated under Conventional Weapons Destruction.

 Terrorist Interdiction Program - NADR
 $ in thousands                      FY 07              FY 08            FY 09            FY 10            FY 11
 Allocated                                257              992              425              600                0
 Unobligated balance                        0                0                0                0                0
 Unliquidated obligations                   0                0                0                0                0
 Disbursed                                257              992              425              600                0
 Global Threat Reduction - NADR
 $ in thousands                        FY 07            FY 08            FY 09            FY 10            FY 11
 Allocated                                  0                0              100            1,230            2,257
 Unobligated balance                        0                0                0                0                0
 Unliquidated obligations                   0                0                0                0            1,801
 Disbursed                                  0                0              100            1,230              456


Civilian Assistance
Humanitarian Contingency Assistance (IDA, ERMA)
 International Disaster Assistance (IDA)
 $ in thousands                       FY 07             FY 08            FY 09            FY 10            FY 11
 Allocated                                  0                0              599           10,928           20,212
 Unobligated balance                        0                0                0                0              265
 Unliquidated obligations                   0                0               50            1,507           18,466
 Disbursed                                      0               0             549               9,421       1,481
According to State officials, one of the IDA programs implementing partners experienced setbacks in starting their
project in Yemen in 2011 and as a result they modified their technical approach to accommodate the shortened
food assistance duration. The difference of $265,445 was the amount that they requested their budget be reduced
by for fiscal year 2011 in order to carry out the modified program in the remaining life of the project.




Page 21                                                                  GAO-12-432R U.S. Assistance to Yemen
Enclosure III


 Emergency Response and Migration Assistance (ERMA)
 $ in thousands                   FY 07         FY 08                                 FY 09               FY 10              FY 11
 Obligated                                       650              2,950                    0              7,800                      0
 Unobligated balance                                0                  0                   0                   0                     0
 Unliquidated obligations                           0                  0                   0                   0                     0
 Disbursed                                       650              2,950                    0              7,800                      0
According to State officials, Emergency Response and Migration Assistance is not appropriated or allotted at the country level,
and funding is determined internally each year. There are therefore no unobligated balances in those accounts for Yemen.


Other Contingency Assistance (CCF, 1207, TI, MEPI, USAID/CMM,
USAID/DCHA/DG)
 Complex Crises Fund (CCF)
 $ in thousands                               FY 07               FY 08               FY 09               FY 10              FY 11
 Allocated                                          0                  0                   0             12,807                      0
 Unobligated balance                                0                  0                   0                   0                     0
 Unliquidated obligations                           0                  0                   0              6,995                      0
 Disbursed                                          0                  0                   0              5,812                      0



 Section 1207 Authority (1207)
 $ in thousands                               FY 07               FY 08               FY 09               FY 10              FY 11
 Allocated                                    8,845                    0                   0             10,034                      0
 Unobligated balance                                0                  0                   0                   0                     0
 Unliquidated obligations                     5,052                    0                   0              7,769                      0
 Disbursed                                    3,793                    0                   0              2,265                      0
Note: According to State officials, funding from the original FY 07 allocation was obligated and disbursed in FY 08, FY 09, FY 10,
and FY 11.Due to the late appropriation in FY 10, the 1207 program did not obligate any funds from the FY 10 allocation during
that fiscal year. All funding was carried over to FY 11, at which point USAID/OTI received the funds and began the obligation
process.


 Transition Initiatives (TI)
 $ in thousands                               FY 07               FY 08               FY 09               FY 10              FY 11
 Allocated                                          0                  0                   0              5,492               3,850
 Unobligated balance                                0                  0                   0                   0                     0
 Unliquidated obligations                           0                  0                   0                174               3,395
 Disbursed                                          0                  0                   0              5,318                 455


 MEPI: Bilateral Funding
 $ in thousands                               FY 07               FY 08               FY 09               FY 10             FY 11
                                                                                                                            To be
 Obligated                                    1,055                  167              1,958                 332
                                                                                                                       determined
 Unobligated balance                                0                  0                   0                   0                0
Note: According to State officials, these numbers only reflect MEPI bilateral projects. MEPI oversees many projects that are
multi-country or regional in nature, making it very difficult to disaggregate participant costs accurately which are therefore not
captured here. State's ability to obligate funds in Yemen has been hampered by the ongoing security situation. As such, they
have reported that it is impossible to predict at this time how much FY 11 funding MEPI will obligate in Yemen.




Page 22                                                                              GAO-12-432R U.S. Assistance to Yemen
Enclosure III



 Conflict Management and Mitigation
 (USAID/CMM) (via ESF)
  $ in thousands                    FY 07                FY 08   FY 09         FY 10          FY 11
 Allocated/Allotted                                 0     200    1,200          1,200             0
 Unobligated balance                                0       0        0             0              0
 Unliquidated Obligations                           0       0      407           923              0
 Disbursed                                          0     200      793           277              0

  Conflict Management and Mitigation
 (USAID/CMM) (via DA)
  $ in thousands                     FY 07               FY 08   FY 09         FY 10          FY 11
  Allocated/Allotted                              300       0      400             0              0
  Unobligated balance                               0       0        0             0              0
  Unliquidated obligations                         58       0        0             0              0
  Disbursed                                       242       0      400             0              0


  USAID/DCHA/DG (via DF)
  $ in thousands                                 FY 07   FY 08   FY 09         FY 10          FY 11
  Allocated/Allotted                                0       0        0             0          1,250
  Unobligated balance                               0       0        0             0          1,250
  Unliquidated obligations                          0       0        0             0              0
  Disbursed                                         0       0        0             0              0
Sources: GAO analysis of USAID and State data.




Page 23                                                          GAO-12-432R U.S. Assistance to Yemen
Enclosure IV


                        GAO Contact and Staff Acknowledgments

GAO Contact

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

Staff Acknowledgments

Major contributors to this report were Jason Bair, Assistant Director; Judith Williams; Brian
Tremblay; and Bruce Kutnick. Martin de Alteriis, Debbie Chung, Marie Mak, Mary Moutsos, and
Pierre Toureille also provided assistance.




(320859)




Page 24                                                    GAO-12-432R U.S. Assistance to Yemen
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