Audit of USAID/Thailand"s emerging problems of development II, project no. 493-0341

The audit covers the period 1985-8/89. USAID/T management of the project has been inefficient and uneconomical. Since monitoring guidelines were not covered in the project design, the developmental impact of the $18 million grant could not be determined. Moreover, due to the lack of information, managers may have missed opportunities for early intervention to solve implementation problems. Mission officials are now planning to revise ongoing and proposed subprojects, as well as guidelines for subproject proposals, and will not commit additional funds for subprojects until revisions are completed. USAID/T also failed to adequately monitor GOT inputs. As a result, the Mission was not aware that GOT funding amounted to only 18% of the total, rather than the required 25%. At the current rate of contribution, overall GOT project funding would be about $2.2 million less than pledged. The Mission neglected to perform an administrative review of a coastal resources management subproject for which A.I.D./W provided $1 million. As a result, several unauthorized and questionable expenses were made, including $748 in honoraria for GOT employees participating in project meetings and workshops and a 37% contractor salary increase over a one-year period.