Audit of the South Pacific private and voluntary organization co-financing project, no. 879-0001

Program results audit is based on review of the USAID/Philippines Controller"s records and internal controls, testing of the accounting systems of selected PVO"s, interviews with beneficiaries and project and PVO personnel, and site visits to the country offices of selected subprojects (SP"s). Three findings are reported: (1) most small project activities funded under the project could not demonstrate a development impact because they were too diverse (for example, SP"s funded by a PVO in Papua New Guinea range from building outrigger canoes to capitalizing a shoe repair business) and so were uneconomical and inefficient to manage; (2) the financial management systems of six of the eight grantee field offices reviewed were deficient; and (3) commodities and other assistance provided by the PVO"s often were inadequately identified to beneficiaries as American aid. Recommendations are made to fund only those activities that are concentrated technically or geographically and have a demonstrable economic development focus, to provide more specific guidance to grantees concerning A.I.D."s requirements for accountability, to assist grantees in improving accounting systems, and to provide better guidance about marking A.I.D.-funded commodities. (Author abstract, modified)