Audit of the enterprise in community development project no. 492-0395

The audit covers the period 9/86-4/91. The Mission cannot adequately evaluate progress because the quantitative indicators established during project design are no longer valid. Instead of making 60-90 grants with an average size of $35,000-$50,000, the project has funded only 12 grants with an average size of over $520,000. Changes were made because no grantees were interested in co-financing small subprojects costing less than $50,000. USAID/P"s system for monitoring grantee activities is not as effective as it could be. Quarterly progress reports by grantees do not compare accomplishments with planned outputs and frequently lack quantitative information. Additionally, some problems identified during site visits have not been addressed due to the Mission"s lack of a follow-up system. As a result, some community development activities have been less effective than expected. The Mission has not planned for the sustainability of successful projects, nor have the grantees prepared plans or provided additional funding to ensure that project efforts will be continued. Improvements are also needed to ensure that grantees make required counterpart contributions. Several activities requiring continued maintenance, beneficiary participation, and additional funding. Some examples include: 17 artesian wells that are not producing potable water, a poorly constructed reservoir, and a reforestation activity that does not ensure proprietary rights for beneficiary farmers.