CADASTRAL SURVEY PROPERTY (MEMORANDUM OF 9/22/80)

1-526-80-16 of 7/31/80 and describes the actions which USAID/Paraguay will take to meet the auditors" recommendations. The memorandum corrects errors noted in the audit report and gives the following updated project information: (1) over 90% of the tax-paying properties have been identified; (2) over 500,000 tax records have been up-dated or corrected; (3) urban cadasters for all 172 districts have been completed and improvements noted, raising the tax base as much as 1,000%; (4) 80-90% of the rural tax base has been cadastered, including some 170,000 rural properties; and (5) a procedure to plot rural properties on topographical maps and to introduce the information directly into the tax system has been developed and used. The auditors" eight recommendations are discussed. Citing misrepresentations and misinterpretations by the auditors, the Mission states that its violations of Loan agreement provisions and AID/W procurement regulations are minor and thus disagrees that an investigative panel should be convened to examine its exercise of authority in these areas. To improve maintenance of Mission vehicles, it was recommended that a suitable repair facility be completed and that spare parts be adequately stored and controlled. The Mission"s answer is that its repair facility will be completed and stocked by 12/80. The auditors also recommended that USAID sell the 44 Rokon motorbikes which were found inappropriate for use in the project. As of 9/80 the Paraguayan Ministry of Finance had been granted permission to sell the bikes. As recommended, a technician from AID/W"s Office of Data Management will spend two weeks at the Mission in 10/80 to assist in utilizing data processing equipment. USAID also established procedures to ensure effective project monitoring, as recommended. Finally, USAID followed the recommendations for securing necessary technical assistance, controlling grant and counterpart funds, and recording advances made to Special Development Activity grantees.