Audit of AID"s rural satellite program

Program results audit covers the period 8/80-12/87 and is based on site visits to the long distance teaching center at the University of the West Indies (UWI) in Jamaica, review of project expenditures, and interviews with project, UWI, and contractor staff. The project successfully accomplished many of its objectives. Two pilot projects were implemented (in Indonesia and the West Indies) that effectively demonstrated the importance of satellite communications in rural development and helped develop associated technologies. The project also assisted in the design of a Mission-funded satellite communications project in Peru, and undertook extensive information dissemination activities to publicize the benefits of satellite technology. However, the original project goal of implementing seven to eight pilot projects could not be realized because of (1) budgetary constraints (while $22 million had been authorized for the project originally, subsequent spending ceilings imposed by Congress forced the project to abandon plans to expand beyond the two pilot projects), (2) a shift in program priorities within the Science and Technology Bureau"s Office of Education (towards formal primary education), and (3) lack of agreement between A.I.D. and officials in other potential participating countries. In addition, the major contractor (Academy for Educational Development) billed A.I.D. for $6,630 in non-allowable costs (airfare and office furniture for AED"s Washington office), and UWI did not have adequate controls for its local currency project expenditures, as required by the A.I.D. grant agreement. Recommendations center around the need to develop a viable implementation strategy for the remaining 15 months of the project. A realistic way to expand project activities should be found, or S&T should terminate the project. Other recommendations are for A.I.D. to recover the $6,630 in non-allowable costs reimbursed to AED, and to require UWI to institute adequate financial controls.