AUDIT REPORT OF USAID/INDIA AND CRS PL-480 PROGRAM IN INDIA

Evaluation covers the period 10/1/74-9/30/75 and is based on a standard audit review and interviews with CRS and USAID personnel. CRS in FY 75 distributed approximately 167 million pounds of commodities to 1.175 million beneficiaries through its Mother-Child Health and Food for Work (FFW) programs. These levels of distribution, however, were only 69.9% of the totals planned and only 78.1% of the total amount of commodities available. The total tonnage distributed to beneficiaries was no doubt even lower due to inefficiencies at the distributor level. The auditors" assessment of CRS management is so disparaging that they recommend witholding approval of FY 76 funding until improvements are made. Problems were noted especially in CRS monitoring of its individual distributors, reporting losses and damages to USAID, and feeding ineligible recipients. Although similar problems were noted in earlier audits, little was done to make the necessary changes. It was decided, therefore, that the program had grown beyond CRS means and a recommendation was made to cut back the program to a more manageable level. USAID"s supervision of the program was also found to be deficient, primarily because of insufficient manpower. The auditors recommend that the personnel level in USAID"s Food and Agriculture Division be increased. Twelve specific recommendations aimed at improving CRS management are made. These include requiring CRS to: (1) improve its control records for loans and cash transfers; (2) report on the correct status of outstanding loans and transfers; (3) give complete details of its utilization of PL 480 commodities distributed for emergency relief; (4) improve its reporting of losses/damages and their disposal; (5) improve the project review procedure; (6) intensify monitorship of FFW projects; (7) redesign its reporting requirements for distributors; and (8) remove ineligible beneficiaries from the roles and more strictly enforce eligibility requirements.