AUDIT REPORT - PROJECT HOPE

medical techniques to health personnel in developing countries. Evaluates the period 1/1/58-12/31/79 and was based on an audit review of documents, interviews with program personnel, and site visits. This report examined HOPE"s internal financial and management systems, as well as the systems of the American Schools and Hospitals Abroad (ASHA) program. HOPE"s management and financial systems are well orgranized and appropriate to its aims. A project plan is developed to reflect the aims of both host country and HOPE, including objectives, methodologies, and progress indicators. Site visits, independent evaluations, and annual reviews are conducted regularly, the latter serving as a basis for future planning. The financial system is on an accrual basis, accounting for revenue by source, while budget controlled cost centers monitor expenditures. Monthly country financial reports compare actual with budgeted performance. Independent public accountants annually audit PPHF"s financial statements. HOPE programs in Guatemala (4), Barbados (2), and Jamaica (2) -- which aim at training counterparts to teach medical skills -- were found generally well implemented with continual difficulties of obtaining and retaining competent counterparts. ASHA, however, needs to strengthen its procedures of reviewing evaluations written by the institutions it sponsors with A.I.D. funds. ASHA, which has used A.I.D. grants to fund 40-50% of HOPE"s international programs, had none of HOPE"s progress reports for the previous year because HOPE had not filed any. Recent budget restrictions have limited ASHA"s project site inspections, exposing A.I.D. to an unwise and inappropriate degree of risk. In addition, ASHA has no documented procedures to administer and monitor their grants. It is recommended that ASHA develop and implement an internal process to review and document periodic grantee reports; coordinate a periodic site review process with A.I.D. Regional Bureaus; and establish a set of formalized grant management procedures.