Audit of CARE"s PL-480 Title II program in the Philippines

480 Title II program in the Philippines finds that CARE had generally complied with rules and regulations. However, CARE needed to improve its management system for reviewing and adjusting target beneficiary levels and commodity deliveries; improve storage facilities at the distribution centers; and rectify several administrative problems. CARE had instituted a commodity call forward system, a delivery order system for commodities to reach the distribution centers, and a system to identify inland claims. Implementation manuals for the School Nutrition Program and the Targeted Food Assistance Program had been adopted. CARE, through the Philippine Government"s cooperating agencies, had developed a system for beneficiary identification. A beneficiary target group and level had been set for every program beneficiary area. Internal controls and accounting records at the CARE central office were adequate. CARE"s management system for reviewing and adjusting target levels needed to be improved in order to better direct commodity deliveries and to preclude distribution to individuals who were not included in the target group. Distribution centers failed to report commodity losses. Although storage facilities existed at major distribution points, many distribution centers did not have adequate storage facilities for the commodities. CARE had not implemented a suitable publicity program at distribution sites; therefore, recipients were not aware of the source of commodities. Commodity and recipient nutritional records at distribution centers were not maintained. There was limited accountability over local currency proceeds. This report recommends that CARE"s management system be made more responsive to changes in the programs" target levels, that more instruction on recordkeeping and reporting be provided to program implementors at the distribution center level, that better instruction on the basic requirements for storage facilities be provided and that a plan to upgrade storage facilities at the ultimate distribution centers be developed. (Author abstract)