Audit of the ASEAN energy conservation and management project no. 498-0285

Audit covers the period 7/85- 10/89. The project has generally contributed, especially through its institutional and human resource development activities, to energy efficiency in the region. Yet its success in attaining specific objectives cannot be determined due to the failure of the ASEAN Regional Development Office (RDO) to include quantifiable progress indicators in the project design, conduct the required baseline studies, and develop a system to gather information on project accomplishments. The ASEAN RDO also failed to establish an effective participant training monitoring system; as a result, participants trained at the Asian Institute of Technology (AIT) in Bangkok were not reintegrated into the project, and at least $117,000 in training costs were either inappropriate or not fully authorized. Again, due to the RDO"s failure to utilize supporting documentation to validate project expenditures, some $2.8 million in technical assistance funds has been disbursed without effective review and administrative approval of vouchers. There are also weak controls over grant disbursements: over $72,000 inproject advances are outstanding an average of 19 months, several erroenous accounting entries were made, and $1,705 was paid for unauthorized maid service. Finally, ASEAN host country contributions have been considerably less than planned; of a planned $2.1 million, the only identifiable contribution to date has been $34,471 from the Philippine Government. After reviewing the draft audit, the ASEAN RDO agreed to make most of the recommended changes or requested additional information in order to determine how best to respond.