Arusha planning and village development project : needs increasing management attention

Audit report covers the period 1/78-7/82 and is based on document review, site visits, and interviews with project, Government of Tanzania (GOT), and USAID/T staff. Due primarily to procurement problems, some project objectives are behind schedule and others will not be achieved. Road and water system improvements are far behind schedule and have in fact been curtailed due to lack of GOT inputs. The road rehabilitation already done is of questionable value; road maintenance has been inadequate. The project has, however, developed an Integrated Rural Development Plan, established an Agricultural Implement Center, initiated local economic activity projects, and provided training to villagers and GOT agricultural officers. Procurement problems included: late arrival of Implement Center machine tools and of motorcyles to be sold to extension workers; suppliers" slow delivery of commodities because the AID-funded imprest account was insufficient for prompt payment; and short-receipt of other goods. The contractor, Development Alternatives, Inc. (DAI), was unaware of the latter until it was too late to file claims, but has now established inventory controls. Because DAI did not keep efficient vehicle use and maintenance logs, a $17,000 fuel use discrepancy was found. USAID/T contributed to project shortcomings by failing to adequately monitor DAI, make and/or report on site visits, and maintain a good working relationship with DAI. USAID/T has been unable to determine the value of GOT contributions to the project. It is recommended that: (1) the GOT implement a plan for motorcycle sales proceeds; (2) DAI keep proper vehicle maintenance and use logs and the GOT adequately control fuel payments; (3) project staff prepare and file trip reports; (4) road improvements be terminated if the GOT does not fund road maintenance; (5) the GOT enforce district reimbursement procedures so that imprest funds are provided promptly; (6) USAID/T determine the value of in-kind GOT project contributions and take appropriate action if insufficient; and (7) A.I.D."s Office of Contract Management recover $1,681 from DAI for missing commodities.