Black belly sheep development project in Barbados

Audit report covers the period 7/31/78-5/31/79 for financial transactions and 7/31/78-7/31/79 for general project activities, and is based on an examination of financial and project records, meetings with A.I.D. officials, and inspection of project sites. The project, although worthwhile, has made little progress. A.I.D. selected and awarded funds to a PVO -the Caribbeana Council - to implement the project without adequately investigating the Council"s financial and management capabilities. The PVO is now insolvent, and $49,250 of the $148,429 provided the Council has been used for non-project purposes. Project activities are at least 6 months behind schedule and do not appear to have been assigned high priority by the GOB. Project sites are ill-kept and the GOB has not provided all the promised resources. It is recommended that the project be continued under new management, possibly by an indigenous organization already involved in the project. In addition, the Council"s accounting system was inadequate in accumulating and segregating direct and indirect costs and in maintaining timekeeping records to separate time spent on this project from that on other projects. Accounting records disagree with costs billed to A.I.D.; the Council"s books have not been posted since 5/31/79. The Council may also have billed A.I.D. for equipment never purchased or for amounts greater than purchase prices. It is recommended that A.I.D. reassess the Caribbeana Council"s qualifications to remain registered as a PVO and discontinue funding the Council until it can demonstrate financial and management viability. It is also recommended that the Council be required to give a detailed accounting of the funds advanced and properly dispose of any remaining balance. Since a 15% initial project overhead rate appears to be too low, it is recommended that a more realistic rate be negotiated.