Audit of the private voluntary organization humanitarian/development initiatives project (project no. 180-0032)

PVOs to provide developmental assistance under the PVO Humanitarian/Development Initiatives project, which was implemented following the collapse of communist regimes in central and eastern Europe. Audit covers the period 1/91-1995 and is based on a review of 15 of the 21 developmental activities initiated under the project. Considerable progress has been made in meeting the project"s purposes. U.S. PVOs have provided visible developmental assistance which met the immediate needs of targeted populations in areas deemed to have the most need. Eight of the activities addressed the needs of the unemployed, elderly, handicapped, and youth. Assistance included medical care for the elderly, rehabilitation and alternative living centers for the handicapped, and employment training and counseling for the unemployed. Three of the activities provided medical assistance to at-risk populations, e.g., via AIDS education, prenatal care, and health professional training. Four of the activities targeted the development of small to medium businesses. Under 10 of the activities, U.S. PVOs created local NGOs to ensure continuation of the programs after the project ends, and U.S. PVOs identified funding sources to replace USAID assistance for 13 of the 15 activities reviewed. However, funding arrangements to replace USAID assistance under grants to Citizen"s Democracy Corps (CDC)/Prague, and Technoserve, Inc. (Poland) have not been made, rendering the financial viability of these programs questionable. In response to this finding, the Mission noted that (1) CDC"s Prague office is scheduled to close when the USAID grant expires, and (2) recent grants to Technoserve will support its activities until additional funding sources are identified. The audit identified several political, economic, and legal constraints to sustainability: lack of legislation ensuring the rights of NGOs; negative social attitudes (e.g., the condescending attitudes of doctors towards nurses); and financial constraints, such as taxation on NGO income.