AGRICULTURAL RESEARCH PROJECT

AUDIT COVERS THE PERIOD 3/9/71 TO 5/31/74. PROJ IS ONE YR BEHIND SCHEDULE DUE TO DELAYS IN SIGNING CONTRACTS WITH TWO US UNIVERSITIES. THE UNIV OF WISCONSIN,THE UNIV OF FLORIDA,AND PURDUE UNIV WERE CONTRACTED FOR ASSISTANCE. ADDITIONAL DELAYS WERE CAUSED BY THE ESTABLISHMENT OF A NEW GOB AGRI RESEARCH CORP,EMPRESA BRASILEIRA DE PESQUISA AGROPECUARIA (EMBRAPA),IN 1973 (THE PREVIOUS EXECUTING AGENCY WAS ABOLISHED DUE TO ITS UNRESPONSIVENESS TO AGRI NEEDS.) IN ADDITION,THERE WERE PROBLEMS OBTAINING COMMODITY IMPORT PERMITS FROM CACEX,THE RESPONSIBLE GOB AGENCY. CACEX EITHER RETURNED REQUESTS FOR FURTHER DOCUMENTATION OR SPENT UNDUE TIME DETERMINING WHETHER LOCAL ITEMS WERE AVAILABLE. AUDITORS RECOMMEND THAT THIS FUNCTION BE TRANSFERRED TO EMBRAPA"S PROCUREMENT OFFICE. USAID"S MONITORING OF THE PROJ NEEDS IMPROVEMENT IN TWO AREAS: FIRST,A REPORTING PROVISION MUST BE MADE TO ASSURE THAT THE GOB MEETS ITS FINANCIAL COMMITMENTS; AND SECONDLY, EMBRAPA SHOULD COMPLY WITH THE 60-DAY ADVANCE NOTIFICATION REQUIREMENT REGARDING COVERAGE OF INDEPENDENT AUDITS. MOREOVER,EMBRAPA"S INDEPENDENT AUDIT DID NOT EVALUATE PROJ PROGRESS. REORGANIZATION BY EMBRAPA HAS PREVENTED CONTRACT STAFF FROM ADEQUATELY PLANNING EITHER FACULTY DEVELOPMENT OR RESEARCH FOR THE 1974-75 CROPPING SEASON. ASSISTANCE IS BEING PROVIDED AT THE SIX NATL RESEARCH CENTERS AS FOLLOWS: PURDUE -- EDIBLE BEANS (VICOSA) & CORN SORGHUM (SETE LAGOAS);FLORIDA -- CATTLE(BRASILIA);AND WISCONSIN -- RICE (PELOTAS),SOYBEAN (PORTO ALEGRE),AND RESOURCE DEVEL (RECIFE) AS OF 5/31/74, 32 CONTRACT STAFF MEMBERS WERE SERVING IN-COUNTRY & 34 EMBRAPA PARTICIPANTS HAD RECEIVED OR WERE IN TRNG FOR MS & PHD DEGREES OUTSIDE BRAZIL. SEVENTY-ONE MS & 49 PHD CANDIDATES ARE SCHEDULED FOR TRNG BY THE END OF THE PROJ. DEGREE TRNG IN BRAZIL EXCEEDED THE NUMBER PROGRAMMED,WITH 279 PARTICIPANTS IN TRNG RATHER THAN THE 125 PLNND. SIXTY-FOUR PERSONS RECEIVED IN-COUNTRY TRNG IN RSRCH METHODOLOGY & TECHNIQUES. IN ADDITION,180 EMBRAPA TRAINEES WERE INSTRUCTED IN FIELD & LAB TECHNIQUES. LOAN AGREEMENT PROVIDED $11,930,000.