Audit of selected local currency - financed activities of the national plan for basic rural sanitation in El Salvador

Audit covers 1.84 million in local currency expenditures during the period 1985-87. PLANSABAR fell far short of achieving its 1985, 1986, 1987 objectives because it lacked institutional capacity, its action plans had been poorly designed, and it spent funds on activities not related to its objectives. Also, PLANSABAR did not always comply with Government of El Salvador (GOES) regulations, action plan requirements, or sound management principles. PLANSABAR"s action plans authorized $1.3 million in local currency for specific job positions. However, PLANSABAR used at least $63,565 and possibly as mush as $346,600 to (1) fill unauthorized positions, (2) hire persons for work in other agencies, and (3) pay wages in an unauthorized pay period. PLANSABAR did not properly manage its personnel budget, and the Technical Secretariat for External Financing did not adequately monitor the National Plan"s use of budgeted funds. PLANSABAR did not properly use and/or account for at least $14,798 and possibly as much as $46,147 in fuel because it lacked an adequate control system. The report recommends that the GOES reimburse $63,565 and $14,798 to the extraordinary budget (for personnel and fuel expenditures, respectively) and review the appropriateness of other personnel and fuel expenditures. USAID/El Salvador agreed with these findings, but disagreed with the audit"s projections regarding possibly misspent funds, and disagreed with the recommendations. The report does not contain recommendations relating to the finding on limited accomplishment of objectives because USAID/ES decided not to fund PLANSABAR beyond December 1988 and because important factors contributing to the nonaccomplishment of objectives, such as inadequate overall local currency program guidance and management, are discussed in a separate overall local currency management report. (Author abstract, modified)