AUDIT REPORT; PL-480, TITLE II FOOD PROGRAM USAID/BOLIVIA

Evaluation covers the period 5/1/76 to 12/31/79 and is based on onsite visits and an audit review of files from the above institutions. During 1978, 50% of the overall distribution target was achieved. Improvements made in 1979 led to attainment of 73% of the distribution target. CRS, doubling its activity, achieved precisely that percentage. CARE tripled its 1978 output to reach 77% of its target. The NCDS met 37% of its expected food allocation output. The causes for these low figures were as follows: CRS was affected by the delayed opening of Bolivian schools, its own inadequate warehouse facilites, and its inability to pay for transportation costs; NCDS set its distribution targets too high, and its project funding was inadequate; CARE was affected by the weak management and susceptibility to political influence of its counterpart agencies. This situation resulted in the misuse of 23% of CARE"s food stocks and the temporary suspension of CARE"s program in 1/80. In addition, CARE was unable to pay transportation costs, and two of its warehouses (Cochabamba and Oruro) were built inadequately, leading to food spoilage and theft. Recommendations are made to correct the above noted deficiencies. Aside from distribution targets, the three sponsors have maintained an excess food inventory, which is costly and should be reduced; have not submitted required project reports (USAID/B should not approve call-forwards and future programs when current reports are unavailable); and have not implemented adequate end-use inspections needed to identify problems. Also, they have not implemented programs to teach recipients how to prepare the food distributed to them. To fill this gap, USAID published and distributed a recipe book. USAID was unable to manage the program adequately. It is therefore recommended that AID/W review the project in order either to consolidate it or to increase USAID staff.