Audit of USAID West Bank/Gaza and PVO recipients" capability to implement USAID programs

Audit report covers the period 1994-95. Following the 1993 Declaration of Principles between the Palestinian Liberation Organization and Israel, the United States dramatically increased its economic assistance to the West Bank and Gaza to a level of about $75 million a year for the next 5 years. USAID established a field Mission in late 1994 and early 1995 with offices in Tel Aviv and Jerusalem and transferred responsibility for project monitoring from Washington to the new field office (USAID/West Bank and Gaza). USAID/West Bank and Gaza has now assumed project officer responsibility for USAID programs in the West Bank and Gaza and has personnel in place in Tel Aviv and Jerusalem to adequately monitor these programs -- although access can always be limited due to security consideration. The Agency has also shifted contractor and grant officer responsibility from Washington to the Regional Contracting Office in Amman, thus making it easier for the Mission to handle contracts, grants, and agreements. USAID/West Bank and Gaza has also worked closely with other U.S. government and UN agencies, the World Bank, the Palestinian Housing Council, and contractors to assist with project implementation. PVO recipients in the West Bank and Gaza generally have the capability to implement USAID programs. West Bank and Gaza offices of four of the six PVOs covered by this audit (Agricultural Cooperative Development International, Catholic Relief Services, Save the Children Federation, and the Society for Care of the Handicapped) had personnel and procedures in place to adequately administer and monitor their cooperative agreements. Further, four of the six PVOs (in this instance, ACDI, CRS, SCF, and American Near East Refugee Aid) appeared to have adequate financial capability to account for funds provided by USAID under these agreements. (Author abstract, modified)