AUDIT REPORT : PL-480, TITLE II PROGRAMS, USAID/PERU

Evaluation covers the period 7/77-3/80 and is based on an audit of project documents, site visits, and interviews with Mission and implementing agency personnel. Despite their capability for effective food distribution, CWS, CRS, and SAWS should use commodities more economically. CRS and CARITAS (its counterpart agency) altered the number of projects and beneficiaries without A.I.D."s authorization. Food losses at port, in delivery, and through robbery and graft were not reported. CRS/CARITAS should submit food program revisions and update project lists; report and file claims for all food losses; and implement accurate inventory and warehousing procedures. CRS should also make regular field visits of CARITAS project sites. Reports on the CWS program, which provides food to workers in reforestation projects, were inaccurate and long delayed. It is unclear whether project objectives are truly being met. CWS should make scheduled site visits; provide technical assistance to reduce tree losses; submit a revised accomplishment report for 4/79-3/80; improve inventory reporting procedures; establish a petty cash fund in each department; and file food loss claims. The SAWS program has expanded food delivery to Lima"s urban poor, but has not entirely met its aims. SAWS should provide instruction in treating infested food; report actual quantities of food on hand and distributed; and pay USAID for food losses. Finally, the national school lunch feeding program (PAE) needs to be restricted to specific regions, with improved logistic support. Differences in commodity reports between the MOH and ONAA should be reconciled. A comprehensive evaluation of PAE should be made, and CRS, SAWS, and CWS should implement recommendations made under prior evaluations. Greater publicity on the source of PL 480 assistance is also needed. A list of all 30 recommendations is appended.