“Foremost among the challenges confronting transition this quarter was the U.S. government’s effort to ensure that the remaining money in the Iraq Relief and Reconstruction Funds (IRRF) was obligated by the September 30, 2006 statutory deadline. It appears that the goal of full and effective obligation of the IRRF was met. As the U.S.–led phase of Iraq reconstruction nears its conclusion, it is vital that the Iraqi government attract broader international donor and private–sector support to finance continued development and reconstruction efforts. The Iraqi government faces several serious challenges in this endeavor: a deteriorating security situation; the inability of Iraqi ministries to execute their capital budgets; a lack of transparency within Iraqi ministries that inhibits anticorruption efforts; and the breakdown of the asset transfer process. With the October 2006 Quarterly Report to Congress, SIGIR identifies a number of areas where continued U.S. assistance is necessary.”