Audit of the Regional Crops Research Institute for the Semi-Arid Tropics in Zimbabwe, grant no. 613-0224-G-00-3029

Financial and compliance audit covers the period 9/83-3/87 and is based on document and financial records review and on interviews with participating officials. ICRISAT is generally complying with applicable A.I.D. rules and regulations, i.e., the majority of costs were proper grant expenditures, staff salaries were within established ceilings, post differential costs were correctly paid, and the accounting system used by ICRISAT/Zimbabwe comformed with that of ICRISAT/India and is adequate. However, of the $6.3 million in expenditures examined, $48,724 are questionable for two basic reasons: (1) benefits paid to principal staff did not comply with allowances available to U.S. government employees, and (2) some costs were not allocable to the project. In addition to the questioned costs, there is a need to resolve several policy matters regarding personnel benefits, ownership of property, and allocation of costs among the project donors and ICRISAT headquarters. (1) ICRISAT benefits differ from those of A.I.D. in terms of home and annual leave. Thus, one staff member took home leave in the United States when his home was actually in India. (2) ICRISAT used A.I.D. funds to purchase nine houses in Bulawayo for professional staff, retaining title in its own name and then making certain improvements on them. ICRISAT has decided to pay for these improvements itself and negotiations are under way regarding titles and disposal policy following the grant. (3) The procedures for approving this construction and for the numerous official trips to the United States and outside of the Southern Africa Development Coordination Committee (SADCC) area need to be formalized; USAID/Z has not been approving these in advance. (4) ICRISAT"S policy on paying short-term consultants on leave from ICRISAT headquarters is questioned both for the size of the costs and for the procedure of paying separate costs (salary and per diem) in one sum. (5) Finally, due to USAID/Z"s lack of relevant guidelines, A.I.D. has absorbed certain costs relating to other donors and to ICRISAT"s regional operations. As most of the problems stem from ambiguities or silences in the agreements between A.I.D. and ICRISAT, six recommendations, with which USAID/Z concurs, are made to clarify costs and policies between the parties. The recommendation regarding payments to consultants was closed prior to the audit. Since then, ICRISAT has agreed to apportion salary and travel costs, especially for regional-level staff, more equitably among donor projects and ICRISAT headquarters.