Audit of Botswana agricultural technology improvement project

Initial audit covers the period 9/81-4/85 (with some financial information updated to 9/85) and is based on document review, site visits, and interviews with GOB, USAID/B, and contractor personnel. Although it has tested some new technologies on-farm and has provided long-term participant training, faulty design assumptions and a 3-year drought make it unlikely that the project can reach its goal without major design revisions, an extension of the Project Assistance Completion Date, and a reallocation of funding between components. The project agreement proviso calling for development of a comprehensive GOB strategy to guide future research activity has not been adhered to, due initially to reluctance on the part of the former Director of Agriculture Research, and more recently to procrastination by senior GOB officials. It has been determined that project funds earmarked for equipping and constructing a seed production facility are not needed due to the availability of an existing facility. These funds should be reprogrammed. GOB contributions to the project and their value have not been documented, leaving USAID/B unsure as to whether the GOB is providing the agreed-upon share of funding and resources. Finally, progressive appreciation of the U.S. dollar over the local currency has left the project with $1.3 million in excess funding. Future local currency expenditures will leave even more. USAID/B has not adequately monitored these transactions even though a system exists to do so, and as a result no action has been taken to deobligate or reprogram the excess funds. Recommendations address the above issues.