Audit of Lesotho basic and non-formal education systems (BANFES), project no. 632-0222

The audit covers the period 7/84-10/90. The audit showed that USAID/L needed to develop more effective internal control systems in four areas. (1) The Mission did not ensure that A.I.D.-funded instructional materials valued at about $827,000 were accounted for, controlled, and used for project purposes. Both storage conditions and distribution records for the materials were inadequate in some cases. (2) The Mission also failed to ensure that project vehicles were used for project purposes only. Three vehicles were stolen (one was recovered) and another was destroyed in an accident, costing the project a loss of vehicle usage valued at about $38,000. (3) Returned participants were not monitored. Although all 32 participants sent to the U.S. for training returned to Lesotho, 7 did not fulfill the requirement to return to work for an operational unit involved in the project. As a result, the project will not receive benefits of A.I.D.-funded training valued at $212,200. (4) The Mission did not always follow A.I.D. procedures for allocating administrative support costs to the project. The project was overcharged by an estimated $88,419, including costs for direct-hire personnel that should have been charged to the Mission"s operating expenses and other items that should have been charged to other projects.