Audit of USAID/Jamaica Public Law 480 Title I and economic support fund local currency programs

480 Title I programs. Economy and efficiency audit covers CY1986-87 and is based on review of USAID/J expenditure reports and methods for monitoring local currency uses. Not only has USAID/J not adequately monitored the Government of Jamaica"s (GOJ) uses of local currency, the GOJ itself has not complied with all the provisions of the ESF and Title I agreements. The audit resulted in four findings: (1) In accordance with A.I.D. Policy Determination No. 5, USAID/J had relied on the GOJ"s accounting and auditing systems to monitor the approximately $133 million worth of local currency generated during 1986-7, but the reports submitted by the GOJ were inaccurate and late. (2) Although the 1986 Title I sales agreement with the GOJ stipulated that sales proceeds be deposited within 120 days after the arrival of each commodity shipment, less than 6% of these sales proceeds had been deposited in a timely fashion during the audit period. (3) Since the GOJ was not required to account for the end use (foreign debt payment) of U.S. dollar cash transfers, $11.5 million was used by the Bank of Jamaica to reimburse itself for debts that were previously paid, and the dollars could not be traced to their end use. (4) USAID/J did not report to the GOJ a withdrawal of approximately $9.6 million from the ESF trust fund to defray operating costs, as both the USAID/J-GOJ agreement and A.I.D. Handbook 19 require. Recommendations to address these four problems are being acted upon by the Mission.