Audit of expansion of family planning services

The project is implemented by four agencies: the Guatemalan Family Welfare Association (APROFAM), Importers of Pharmaceutical Products/S.A. (IPROFASA), the Ministry of Health"s Family Planning Unit (MOH/FPU), and the Guatemalan Sex Education Association (AGES). The project has made satisfactory progress toward achieving most of its objectives, but knowledge of FP services among the indigenous population is much lower than planned. Most major problems have been encountered in IPROFASA"s contraceptive retail sales component. (1) According to a local legal opinion, IPROFASA is violating Guatemalan law by selling donated contraceptives. (2) Sales have been concentrated in urban areas despite project paper emphasis on marketing primarily in rural areas. This has occurred mainly because IPROFASA has been pressured to earn enough money to become self-sufficient and it is easier to market in urban areas. (3) IPROFASA has had to spend about $44,000 a year on import taxes on A.I.D. contraceptives, despite an agreement allowing A.I.D. to import these commodities duty free. USAID/G has not been importing the contraceptives on the corporation"s behalf because of concerns over a possible administrative burden and the legality of importing contraceptives for the corporation. Other problems include: lack of motivation among some APROFAM volunteers, which has limited the effectiveness of the association"s community-based distribution program; noncompliance with audit requirements by USAID/G and the implementing agencies; and the employment of two cousins to cosign AGES checks, which indicates weak internal controls, though no evidence was found of unauthorized use of A.I.D. funds.