Audit of disaster assistance to the Philippines

The audit covers the period 1986-9/89. In general, USAID/P followed A.I.D. policies and procedures in authorizing program funds, using them to provide seeds, agricultural and construction hand tools, housing materials, and food assistance. Some assistance, however, would have been more appropriately funded through long-term rehabilitation or TA sources; these activities included: construction of five permanent, multi-purpose evacuation centers; construction of 4.3 km of concrete pathways and 670 m of concrete canals where none previously existed; the provision of carpentry, marketing, and sewing training for 71 persons; and the purchase of about $9,000 in office equipment. While both USAID/P and the Office of Foreign Disaster Assistance (OFDA) agree that these activities did more than restore self- sufficiency, they maintain that the activities, which were specifically authorized by OFDA, were legitimate rehabilitation expenses. The OFDA also hoped that its efforts would encourage USAID/P to pursue additional development activities in the disaster areas. It is recommended nevertheless that OFDA review and if necessary revise its criteria for approving short-term assistance to ensure their consistency with A.I.D. policy and to preclude the approval of requests for long-term rehabilitation assistance.