AUDIT REPORT ON YEMEN DEVELOPMENT PROGRAM

EVALUATION WAS CONDUCTED THROUGH A REVIEW OF PROJECT PAPERS AND EVALUATION REPORTS AND DISCUSSIONS WITH APPROPRIATE PERSONNEL. THE CONSTRAINTS TO MANAGING THE USAID PROGRAM ARE DEEMED SEVERE AND NUMEROUS. HOUSING IS MARGINAL AND EXPENSIVE; HEALTH CONIDTIONS ARE POOR; AND RECREATIONAL FACILITIES ARE LIMITED. IN ADDITION, THE LACK OF HOST COUNTRY FINANCIAL AND TECHNICAL CAPABILITY AND THE NON-EXISTENCE OF INSTITUTIONAL CAPABILITY CONTRIBUTE TO THE PROBLEM OF RECRUITING AND KEEPING AN ADEQUATE NUMBER OF PERSONNEL IN YEMEN. RECOMMENDATIONS INCLUDE: 1) THE ASSISTANT ADMINISTRATOR FOR THE NEAR EAST SHOULD REVIEW MANAGEMENT CONSTRAINTS AND TAKE APPROPRIATE ACTION IF IT IS DETERMINED THAT THE UNIQUE CONDITIONS EXISTING IN YEMEN WARRANT MORE INTENSIVE CORRECTIVE ACTION; 2) USAID SHOULD DETERNIME THE ACTUAL AMOUNT OF YARG CONTRIBUTIONS TO AID-FUNDED PROJECTS IN YEMEN, AND REQUIRE YARG, WHERE NECESSARY, TO MEET THE 25% MINIMUM CONTRIBUTION; 3) USAID SHOULD ESTABLISH APPROPRIATE PROCEDURES TO ENSURE THAT THE 25% COST SHARING REQUIREMENT IS ACTUALLY MET IN THE FUTURE OF THAT WAIVERS ARE OBTAINED FOR EACH PROJECT WHERE THE REQUIREMENT WILL NOT BE IMPOSED; 4) USAID SHOULD PHASE OUT CURRENT PRACTICES OF FUNDING LOCAL PROJECT EMPLOYEE SALARIES AND SALARY TOPPING-OFF EXPENSES; 5) AID/W SHOULD EXPEDITE CONTRACT EXTENSION OF THE UNIVERSITY OF ARIZONA CONTRACT IN ORDER THAT SUITABLE REPLACEMENT RESEARCH CANDIDATES CAN BE OBTAINED; 6) USAID SHOULD REQUIRE PARTICIPANTS TO FULFILL PROJECT EMPLOYMENT RESPONSIBILITIES, OR OBTAIN A REFUND FROM THE YARG FOR THE FULL COST OF TRAINING; 7) USAID SHOULD REQUIRE THE CONTRACTOR FOR THE HORTICULURE IMPROVEMENT PROJECT TO SUBMIT A DETAILED WORK PLAN; 8) USAID SHOULD REQUIRE THE SAVE THE CHILDREN FEDERATION TO SUBMIT ALL PROGRESS REPORTS NOW DUE & NOT EXTEND THE PROJECT UNLESS THE EVALUATIOT NOW IN PROGRESS INDICATES THAT EXTENSION IS WARRANTED; AND 9) USAID SHOULD ESTABLISH AN IN-HOUSE CAPABILITY TO CONDUCT A PARTICIPANT TRAINING FOLLOW-UP PROGRAM.