AUDIT REPORT USAID/LAOS AGRICULTURE DEVELOPMENT SECTOR

Audit was compiled through review of USAID, contractor, ADO, and RLG records, discussions with responsible personnel, and visits to project sites. Findings of the audit include: (1) Agricultural Development Organization (AGO) monthly financial statements did not include all costs associated with ADO operations and accounts receivable cards were inaccurate; and (2) Nam Tan Irrigation Project, when completed will not be able to irrigate total hectarage originally planned. Recommendations are that: (1) AID should require ADO to perform a periodic international audit of balance sheet accounts; (2) USAID require ADO to inform the mission concerning total proceeds derived from sales of rice and that proceeds be reverted back to the trust fund; (3) USAID and RLD conduct a cadastral survey to determine differences between farmers" land claims and land distrisbution records; (4) USAID request ADO to take action to eliminate the liability presently recorded in favor of government of Japan; (5) USAID obtain a legal opinion concerning payment of $120,000 made by ADO to GOJ; (6) USAID require ADO to perform a detailed review of available pump group records; (7) USAID periodically review the result of surveys to ascertain the acceptability and interest by LAO farmers for carp raising; and (8) USAID assure that beef or other commodities determined unfit for human consumption are properly marked.