Audit of Russian officer resettlement program under USAID project 110-0008

Audit report covers the period 1/94-8/95. USAID/Moscow implemented a pilot activity, which provided 452 housing units for discharged officers, and then a follow-on activity, which provided a total of 4,498 housing solutions (2,370 housing certificates and 2,128 new units). The Mission has reasonably ensured that the housing units are being provided on schedule and in accordance with applicable construction standards and social norms, and that they are being allocated to and resided in by eligible officers. Additionally, the Mission monitored payments to ensure reasonableness of cost. Finally, steps were taken to mitigate the risk of default by Russian subcontractors, including a provision that the Government of Russia (GOR) would complete any construction project if a contractor defaulted. The Mission concurred with the audit, adding that strong GOR support and participation at each stage of implementation have been crucial in solving problems and keeping the program moving.