Audit of the USAID-financed Yungas development initiative

Audit report covers the period 7/00-7/02. YDI is not on schedule to achieve planned outputs. As of 12/31/01, 13 of the 19 outputs (or 68%) had achieved at least 90% of their planned targets. Six outputs, all related to health activities, had achieved less than 90% of their planned targets. For example, the health activity implementor had constructed only 4 of 10 planned school latrines. Non-achievement was primarily due to delays in initial implementation. First, local bureaucracies delayed implementation from 4/01 to 6/01. For example, it took longer than anticipated to get local governments to agree on the specific activities to be undertaken and provide titles so that the activities could proceed. In addition, according to a 12/01 progress report by one of the implementing partners, social unrest in the Yungas resulted in roadblocks and in implementing agencies that were associated with alternative development activities being asked to leave the area. Nonetheless, the auditors did not make a recommendation, this for three reasons. First, according to USAID/Bolivia officials, as of the end of 5/02, the social unrest in the Yungas has stabilized. Secondly, the initial issues with the local bureaucracy have been resolved by coming to agreements with local governments and/or changing site locations. Third, since the initial delays, both the Mission and implementers have taken steps, such as planning to hire an additional engineer to design, supervise, and inspect the construction activities, to speed up implementation in calendar year 2002. As a result, the Mission and its partners are confident that future outputs will be reached in a timely manner. The auditors believe this is feasible because the construction of latrines (relating to 4 of the 6 affected outputs) is relatively simple and the quantity to be constructed is not significant. USAID/Bolivia has implemented a monitoring system in accordance with USAID policies to track program outputs for all active agreements. The Mission has also monitored the quality, timeliness, and environmental impact of outputs in accordance with USAID policies. Mission management agreed with the report and its findings.