Audit of the ASEAN watershed project

Program results audit covers the period 7/83-6/87 and is based on document review and interviews. Most project objectives are not being met, but the project has had some success. For example it has provided short-term training to more participants than planned. Inadequate progress in other areas (research, information exchange, long-term training) is due to limited A.I.D. managerial oversight and lack of participation by ASEAN countries. The A.I.D. Project Liaison Specialist, contracted to facilitate project start-up, did not begin work until 2 years after the project started. ASEAN participation during early project implementation was minimal. Further, institutionalization was never addressed in planning documents during project design or subsequently during implementation. The ASEAN Regional Development Officer (RDO) and the Controller for the ASEAN program did not provide adequate financial monitoring. For example, travel and per diem expenses were not verified and the implementation advance issued in 1984 had not been liquidated at the time of audit. Also, some disbursements were not properly administered. Since the audit field work was performed, much has been done to satisfy audit issues discussed with the Controller and the ASEAN RDO. For example, some evidence shows A.I.D. project monitoring has improved, this been primarily attributable to the arrival of the project liaison specialist. Also, ASEAN contributions are now reported by the RDO to be $1.5 million. However, this amount could not be verified. Recommendations are to: establish realistic project outputs; provide effective management oversight; monitor and verify ASEAN contributions; identify and monitor institutional development objectives; and improve financial management.