AUDIT REPORT ON REVIEW OF FOOD AND NUTRITION SECTOR USAID/NEPAL AS OF SEPTEMBER 30, 1978

EVALUATION COVERS THE PERIOD FROM EACH PROJECT"S INCEPTION THROUGH 9/30/78 AND IS BASED ON STANDARD AUDIT PROCEDURES. AUDIT CONTAINS EVALUATIONS OF PROJECTS 3670102, 3670144, 4980251, 9310209, AND 9310234. PRESENT EVALUATION CONCERNS A PROJECT TO DEVELOP AND CONSTRUCT A FULLY OPERATING SCHOOL OF AGRICULTURE IN RAMPUR FOR THE INSTITUTE OF AGRICULTURE AND ANIMAL SCIENCE (IAAS). CONSULTANT AND CONSTRUCTION PROBLEMS, AND INSUFFICIENT GOVERNMENT OF NEPAL (GON) SUPPORT INHIBIT PROJECT IMPLEMENTATION. THE MIDWEST UNIVERSITIES CONSORTIUM FOR INTERNATIONAL ACTIVITIES (MUCIA), CONTRACTED TO DEVELOP ACADEMIC AND TRAINING PROGRAMS, WAS UNABLE TO MAINTAIN A FULL FOUR-MEMBER CONSULTANT STAFF AS PLANNED, AND ITS SUPPORT STAFF AND FACILITIES ARE EXCESSIVE FOR THE LIMITED ADVISORY STAFF. AUDITORS RECOMMEND THAT USAID MONITOR THE LEVEL OF MUCIA ADVISORY STAFF TO DETERMINE THE APPROPRIATE LEVEL OF SUPPORT STAFF. DESPITE THESE DIFFICULTIES, A NEW CURRICULUM LEADING TO UNDERGRADUATE DEGREES AND TEACHING METHODS WERE ESTABLISHED, AND SCHOOL ORGANIZATION WAS IMPROVED. ARCHITECTURAL FIRMS, CONTRACTED TO PROVIDE MASTER CAMPUS PLANS, COST ESTIMATES, SITE PREPARATION, CONSTRUCTION, AND SUPERVISION, HAVE PERFORMED UNSATISFACTORILY. USAID AND IAAS ARE DISSATISFIED WITH DESIGNS; THE FIRST PHASE OF CONSTRUCTION IS ONE YEAR BEHIND SCHEDULE; AND THE PROJECT WILL COST SUBSTANTIALLY MORE THAN BUDGETED. IT IS RECOMMENDED THAT USAID, IAAS, AND MUCIA REVIEW THE CAMPUS MASTERPLAN FOR ADEQUACY; TEMPORARILY HALT CONSTRUCTION EXCEPT IN ANCILLARY BUILDINGS NEARING COMPLETION; AND OVERSEE DEVELOPMENT OF ACCEPTABLE PLANS CONSONANT WITH APPROVED DEVELOPMENT PLANS AND AVAILABLE FUNDING. GON HAS NOT PROVIDED MEDICAL FACILITIES, TELEPHONES, PUBLIC TRANSPORTATION, OR RELIABLE ELECTRICAL POWER NEEDED TO ESTABLISH AND MAINTAIN A SCHOOL IN A REMOTE LOCATION. A PEACE CORPS NURSE MAINTAINED A SMALL CLINIC, HOWEVER, BUT IT CLOSED WITH HER DEPARTURE. AUDITORS RECOMMEND THAT USAID REVIEW GON SUPPORT TO IAAS AND TAKE MEASURES TO ENSURE OPERATIONAL EFFICIENCY.