Audit of Sudan agricultural planning and statistics project, project no. 650-0047

Audit covers the period from mid-1985 until February 1988 and covers obligations of $14.5 million, commitments of $6.7 million, and expenditures of $5.2 million. Despite the problems listed below, the project seems to be improving the Ministry"s ability to operate, maintain, and expand a system to collect and report agricultural statistics on a regular basis. It has also helped introduce an improved method to statistically sample agricultural production, has gathered and published statistical information for many years, and has published studies and analyses of Sudanese agricultural projects. Four areas need improving. (1) Amendments in 1987 to both the Project Paper and Grant Agreement stated that the project would be more effectively linked to agricultural policy formulation. However, USAID/S has not ensured that changes needed to establish this link or to monitor project progress were adequately addressed by the conditions precedent or were adequately implemented. As a result, the project may continue without significant progress toward project objectives and without USAID/S or the host government having the means to identify and correct shortcomings. (2) Contrary to the requirements of the A.I.D. Handbook, the Mission finalized the 1987 amendment to the Grant Agreement without specifying the host government"s financial commmitment to the project and has not yet resolved this issue. This was because the host government believed its contribution was too large and USAID/S wanted to obligate funds quickly. As a result, future shortages of local currency threaten satisfactory achievement of project goals, a situation which has occurred in the past. (3) A.I.D.-financed commodities valued at $628,000 were not adequately controlled, increasing the risk of fraud and abuse. This was due to USAID/S"s failure to enforce relevant provisions of its contract with the TA contractor and to the latter"s failure to ensure that its staff in the Sudan performed in accordance with the contract. (4) The Mission"s failure to deobligate $260,0000 in excess project funds made that amount unavailable for other purposes. USAID/S agreed with the audit"s findings and recommendations.