Audit report on water use and management project; audit report, 6/10/80

Audit report covers the period 6/76-1/80 and is based on document review, site visits and interviews with Government of Egypt (GOE) personnel. It is highly doubtful the project purpose will be achieved because the contractor, the Consortium for International Development (CID), has concluded that, while the research techniques developed under the project are replicable, the research results are not. Moreover, the project is behind schedule because the CID is overextended and has not maintained the required staff. Regarding field administration, the project has been almost absorbed by the GOE"s Ministry of Irrigation; CID and USAID/E staff have lacked adequate financial management experience and knowledge of A.I.D. regulations; and considerable funds and equipment have been used improperly. USAID/E should: (1) redesign the project around an attainable purpose determined by USAID/E and the GOE, not the CID; (2) ensure that project vehicles are properly used and that repairs are funded only for project vehicles; (3) establish travel approval procedures; (4) collect from the CID LE 14,893.070 for unauthorized incentive, per diem, and expense payments and for improper lodging, insurance, vehicle use and repair, and entertainment expenses; (5) recover improper payments for supplemental employee post allowances, for tips and related Water Management and Irrigation Technologies Research Institute maintenance expenses, and for in-country per diem; (6) require CID project managers to comply with all contract terms and to use project funds wisely; and (7) either ensure that the GOE fulfills its budgetary obligations or limit the project. AID/W should forbid the use of project funds for shipping unauthorized personal items and recover funds so used and should review all CID contracts and refuse to extend contracts or enter into new ones until assured of adequate CID staffing.