Audit of controls over Government of Sri Lanka contributions to AID-financed projects in Sri Lanka

projects. Audit report is based on document review, interviews with USAID/SL and GSL officials, and Mission staff responses to a questionnaire on host country contributions. As of 4/1/87, USAID/SL had 11 active projects requiring GSL contributions of about $203.2 million, or about 45% of the overall project costs. USAID/SL did attempt, especially in the past year, to monitor these contributions - a 4/87 Mission order established procedures to ensure that required financial contributions were made, and the Mission also required that its quarterly project implementation reports, beginning with the last quarter of 1986, list host country financial contributions and personnel problems. In the last analysis, however, USAID/SL"s system and related controls for monitoring these contributions was inadequate, and the GSL did not, in fact, always make its required contributions to projects, especially in the area of project staffing. The result was an inefficient use of A.I.D. funds and a loss of economic benefits to the Government and people of Sri Lanka. It is recommended that USAID/SL establish policies and procedures in specific areas for better controls over host country contributions. Comments of the Mission, which generally disagreed with the recommendation, are appended. (Author abstract, modified)