CRS sponsored PL-480 Title II program in Djibouti and two AID grants to CRS/Djibouti

480, Title II program implemented by Catholic Relief Services (CRS) in Djibouti. Audit report covers the period 9/79-12/81 and is based on site visits, a review of program records, and interviews with appropriate officials. Food valued at $4.6 million has reached a targeted 25,000 refugees per year. However, since repatriation of refugees may be delayed two to five years, continuation of the program as a "dole" type program should be reassessed in favor of an expanded Food For Work program. CRS"s ability to implement the program has been strained by its role in other A.I.D. projects and in efforts to improve the Government of the Republic of Djibouti"s (GROD"s) ability to receive, store, transport, and distribute food. Controls over rations are lacking at two district warehouses; some commodities have been stored too long and have become infested. Food-For-Work projects were undertaken by the GROD without authorization and were poorly managed; 60% of project workers were already receiving food from the refugee feeding program. Also, it is unclear what use was made of participant contributions to the maternal child health (MCH) program. District warehouses and program food and vehicles were not identified as being financed by A.I.D.; the GROD is very sensitive to this issue and has removed identification in some cases. Questioned program costs totaled $396,773. To alleviate these problems, it is recommended that the AAO/Djibouti: develop and implement an alternative to the current feeding program by 10/82; advise CRS of their primary obligation to A.I.D. programs; establish commodity accounting procedures; ensure that CRS/Djibouti inspects food in district warehouses, disposes of spoiled food, and develops management mechanisms for Food For Work projects; reassess recipient food requirements; require the Ministry of Health and CRS/Djibouti to account for all funds collected under the MCH program and to use these funds in accordance with regulations; and advise the GROD of the program publicity requirements or obtain a waiver. A.I.D. should also review questioned costs and recover the applicable amounts from CRS.