Audit of USAID/Philippines" direct AID contracting for technical assistance

The audit, conducted between 6/91 and 4/92, reviewed a sample of 60 active and 32 expired contracts, totaling obligations of $62.4 million, and expenditures of $23.7 million. The audit"s conclusions are qualified because Mission officials would not confirm in writing that to the best of their knowledge they followed A.I.D. policies and procedures and reported to the auditors all known irregularities and instances of material noncompliance. The audit did conclude, however, that for the items tested the Mission planned for TA, procured it in a timely manner, through the appropriate contract type and with full and open competition, and obligated and accounted for funds. Four problems were identified: (1) contractor work statements were not always adequately defined and did not always include performance indicators; (2) procurement practices could be improved to ensure that TA is procured at a fair price and from qualified contractors; (3) monitoring procedures did not always ensure that contractors prepared workplans, submitted progress reports that objectively measured their performance, or established controls over nonexpendable property, or that the Mission planned and documented site visits; and (4) procedures for reviewing reimbursable costs and determining final indirect cost rates could be improved. (Author abstract, modified)