Audit of USAID/Senegal"s PL-480 Title I program 1986 to 1990

480), the United States is to use its agricultural productivity to combat hunger and malnutrition, to encourage economic growth and development in developing countries, to expand U.S. markets, and to promote the production of local foodstuffs. Senegal was provided about $10 million of P.L. 480 Title I rice for 1986 and 1987 and about $5 million per year in 1988 through 1990 under this concessional loan program. Each program year is a distinct activity and agreements between the governments of the United States and Senegal detail that program year"s requirements and the purposes for which the proceeds from the sale of the rice are to be used. The majority of funds generated from the Title I program have been used to reduce banking debt owed by the government of Senegal on the defunct agricultural organization, ONCAD (Office National de Cooperation et d"Assistance pour le Developpement). Between 10/90 and 1/91, the program was audited in accordance with generally accepted government auditing standards and the following was found. (1) Counterpart funds generated by the sale of Title I rice for the program years 1988 through 1990 had not been fully transferred to the required account and applied to approved development uses. (2) USAID/Senegal was not assured and could not verify that the sales proceeds were being used as agreed to by the two governments. (3) The approved uses of the sales proceeds did not meet the intent of the P.L 480 legislation to target the country"s poorest as the beneficiaries of the program. The report contains two recommendations. It also presents an assessment of internal controls and reports on USAID/Senegal"s compliance with applicable laws and regulations. (Author abstract)