Audit of utilization and maintenance of selected equipment in Pakistan

Audit covers the period 1983-11/87. Since 1983, A.I.D. has provided $31 million in equipment to the Provincial Irrigation Departments (PID"s) under the project. A substantial amount of this equipment has not been used effectively as required by U.S. Government management standards, largely because of USAID/P"s failure to identify project needs, clearly delineate monitoring responsibilities, obtain PID reports on equipment use, and take corrective action when notified by the PID"s of low utilization problems. (1) Up to $14 million proved to be not specifically needed. (2) Inadequate Mission monitoring, combined with cumbersome procedures and inadequate funding, made the PID"s preventive maintenance program for the equipment ineffective; as a result, over $24 million in A.I.D.-funded equipment, which has been in-country for up to 4 years, is vulnerable to rapid deterioration. (3) Under the Agricultural Commodities and Equipment Program, USAID/P provided $3 million worth of equipment for six workshops aimed at overhauling the PID"s heavy equipment fleets. Much of this machinery is yet to be used. The PID"s had not budgeted the funds needed for the overhaul and USAID/P had not taken this into account. Despite these problems, USAID/P has proposed funding an additional $31 million for new equipment and overhauling older equipment under an amendment to the ISMP. Recommendations - including one that USAID/P reevaluate its planned $31 million equipment purchase - address these problems. The Mission concurred with all the findings and recommendations.