Audit of the 1984 national census project with the General Directorate of Statistics and Census in Costa Rica : Public Law 480, Title I funds

480 Title I funds to enable Costa Rica"s General Directorate of Statistics and Census (GDSC) to conduct the 1984 national census. Non-A.I.D. audit, conducted by Price Waterhouse of Costa Rica, covers the period 7/16/84-9/30/85 and is based on reviews of documents, bank accounts, and procedures and on interviews with officials. No conclusion could be reached regarding project income and expenditures, as the GDSC has not prepared financial reports and does not keep separate statistics by source of funds used for the census. Accordingly, GDSC"s system of internal controls is judged to be inadequate for A.I.D."s purposes. The incorporation of P.L. 480 funds into the Costa Rican budget as a direct transfer obviated the need for the signing of written agreements which would have been the subject of review. Further, the Office of the Controller General of Costa Rica, the Supreme Court"s Investigative Organization, and the Costa Rican Development Corporation (CODESA) are looking into possible irregularities, frauds, or abuses in connection with the project. These investigations, however, have not yet been completed. For these reasons, the present audit expresses no opinion regarding GDSC compliance with applicable laws, regulations, and agreements affecting project income and expenditures. It is recommended that the Mission: (1) suspend funding to the GDSC pending proof that the GDSC has instituted adequate internal controls; and, (2) establish a policy requiring written agreement for all uses of Title I funds.