Audit of USAID/Nicaragua"s agricultural activities

Audit report covers the period 1999-7/01 and focuses on programs undertaken by Cooperative of the U.S.A. (CLUSA), CARE, Catholic Relief Services (CRS), Chemonics, and World Relief Corporation (WRC). All but three of USAID/Nicaragua"s agricultural activities are on schedule to achieve the planned outputs. (1) Most elements of CLUSA"s program to improve coffee quality are behind schedule. This program needs to be replanned. (2) CLUSA"s agreement also called for the planned $2.4 million economic development fund to be self-sustaining over the long term. However, USAID reduced the credit fund to $1.1 million, and CLUSA has been unable to find a local entity to manage the credit fund. According to a CLUSA official, these developments called into question the feasibility of creating a self- sustaining credit fund by the end of the reconstruction program. USAID/Nicaragua needs to find a use for unused credit funds that would contribute to the reconstruction effort. (3) As of November 2000, CARE had rehabilitated about 321 KM of its revised project target of 850 KM of rehabilitated roads. This leaves 529 KM to be completed before the 12/31/01 PACD. To accomplish this goal, CARE must: (1) complete the selection of the roads to be rehabilitated; (2) negotiate and sign agreements with the local municipalities where the roads are located; (3) perform detailed planning for each project selected; and (4) execute and complete the projects during the dry season in Nicaragua. Firm milestones for these actions are needed to help ensure that planned road segments can be rehabilitated before the PACD. In addition, USAID/Nicaragua must obtain mapping information from CARE to facilitate the monitoring of CARE"s activities. Although the Mission has implemented a system to monitor its agricultural activities, it has not developed a performance monitoring plan as required by USAID guidance. Also, the Mission has not performed reliability assessments of the data received from the implementing sponsors that is used in Mission performance reporting. Recommendations, concurred in by the Mission, address the above issues.