Audit of USAID /Ghana non-emergency Title II food aid programs implemented through PVOs/CDOs

480 Title II program, which consists principally of the monetization of the proceeds of Title II commodity sales to increase food security, agricultural productivity, and farmer income in rural areas. The program is being implemented by three NGOs: Adventist Development and Relief Agency (ADRA), Catholic Relief Services (CRS), and TechnoServe (TS). Audit report focuses on FY 1996. USAID/Ghana"s Title II activities for FY 1996 were programmed to monetize 29,300 MTs of wheat, valued at approximately $5 million, to support country efforts of the three NGOs in the areas of agroforestry, Food-for-Work (FFW), school lunch programs, and rural enterprise development operations. In addition, the USAID Country Strategy for FYs 1997-2001 projected the monetization of another $7 million annually in Title II funds to finance activities to enhance food utilization and to provide support for communities in various rural enterprises. Most of the wheat, the principal commodity received by the NGOs, is monetized. Two of the NGOs are also receiving additional commodities for their FFW activities. The audit found that USAID/Ghana and its cooperating sponsors had adequate management structures to ensure that food aid was targeted to the most needy beneficiaries. However, for 1996, CRS"s food deliveries were made late. This occurred because the processing at CRS"s Tamale Office of distribution lists for food beneficiaries was not being made early enough to allow for the processing of waybills and delivery schedules at its Accra office. It is recommended that the Mission ensure that CRS better coordinate the actions of its various offices to provide for the timely delivery of food assistance. USAID/Ghana and its cooperating sponsors are also making progress towards achieving the intended results of program activities. (1) CRS is providing assistance to Ghanaians at 554 sites in Northern Ghana, with a focus on its school feeding program, designed to provide necessary meals to over 67,000 school children at pre-school and primary schools, and its Maternal Child Health Program, which is attending to the needs of over 26,000 malnourished mothers and children. (2) ADRA has decreased the incidence of guinea worm and other water-borne illnesses by helping in the construction of hand-dug wells, which provide a safe alternative to contaminated water sources; over 94 wells have been built to date. Langa, a village of 1,459 people, provides an example of the effectiveness of hand-dug wells in fighting guinea worms. There were 123 cases of guinea worm in Langa from 1989-1992. After the construction of the hand-dug wells, no case of guinea worm has been reported. (3) TechnoServe, through assistance to farmers" service cooperatives, has decreased post-harvest crop losses to these cooperatives by training the farmers in better storage techniques. An example is the Nsutu cooperative, where members stated that prior to TechnoServe assistance in 1994, they lost about 40% of their crop to spoilage. Previously, they stored corn "on the cob", but now they break the corn kernels from the cob and store the corn kernels in sacks, resulting in greatly decreased spoilage. On the down side, certain practices taking place in the program needed to be corrected. In particular, the policy of one cooperating sponsor regarding the personal use of project vehicles exceeded what is allowed by USAID guidance. It is recommended that the Mission establish a policy on the personal usage of project vehicles. There is also need for management actions to ensure the sustainability of activities related to farmers cooperatives, small-scale palm oil processing mills, and nurseries. It is recommended that a mechanism for the continuation of the Inventory Credit Program to farmer"s cooperatives be determined, an assessment of the future viability of small palm oil processing mills be made, and a way be found to make nurseries self-sustaining and self-sufficient. The Mission agreed with all audit recommendations and has taken steps to implement them.