Botswana"s rural sector grant shows progress on major objectives, but its financial and administrative affairs need improvement

Audit report covers the period 6/80-8/84 and is based on document review, site visits, and interviews with GOB and USAID/B personnel. Although not without its problems, the project has made progress in meeting some of its major objectives. More than 15,000 villagers have benefited from 155 small agricultural production projects, small enterprises such as shoemaking have been initiated, and food produced on one of the project"s horticultural estates is being marketed at hospitals and secondary schools. However, planning problems - related to environmental considerations, the viability and location of subactivities, and GOB policies - have hampered horticultural, forestry, and wildlife activities. In addition, there have been several implementation problems which have reduced project outputs - including a serious shortage of trained GOB personnel, late arrival and underutilization of technical advisors, the lack of organization and weak management systems of the implementing agencies, competing GOB priorities, and cumbersome administrative and financial procedures. Progress has also been impeded by unforeseen events such as a severe 3-year drought. Because completion of the project may require more time than originally anticipated, USAID/B has implemented a review process to monitor expenditure rates so that excess funds can be periodically reprogrammed or deobligated. USAID/B will also be systematically reprogramming funds which were allocated to cover local currency costs, but have been accumulating as a result of GOB currency devaluations. It is recommended that: (1) the GOB appoint a full-time implementation coordinator (currently the GOB"s Communal Areas Coordinator is responsible for coordinating both project and non AID-funded activities; (2) USAID/B modify its information system to better monitor program goals, financial management, and GOB contributions; and (3) USAID/B establish a procedure to review, on a test basis, supporting documents for expense reimbursement vouchers submitted by the GOB.