Audit of local currency generated from Somalia"s commodity import and PL-480 programs

480 programs conducted during FY"s 82-85. Audit covers the period 5/82-9/86 and is based on document review, interviews with GOS and USAID/S officials, and site visits. A generally effective system for programming local currency proceeds has been established and USAID/S has been actively engaged in the programming process. The system, however, has been marred by inadequacies in accounting for local currency generations and in controlling their use. In the first case, Title I agreements were not specific in defining the amounts to be deposited. As a result, as much as $7.1 million in local currency may be lost to development purposes. In the second case, the GOS was able to use some Title I proceeds for unauthorized purposes because USAID/S had inadequate oversight control over the GOS bank account in which Title I funds were originally deposited. Recommendations to correct these problems include immediate deposit of arrearages, more specific Title I agreement language, a role for the Controller"s office in reviewing Title I agreement financial provisions, and procedures to monitor Title I local currency proceeds. (Author absract, modified)