Evaluation of the assistance to the Controller General of the Republic of Honduras

External evaluation covers the period 8/88-10/90. Despite delays in long-term TA, all project objectives were either met or surpassed. CGR now has the capability to perform modern-style audits. As of 9/90, it has conducted 5 such audits, 2 financial-related audits, and 3 financial statement audits. All were extremely well done. One of the most significant project achievements was the training of virtually all CGR auditors in a 4-month intensive course. Response to the course was favorable among all involved, including students, CGR management, clients, and long-term TA personnel. Additional highlights of the project included the following: (1) modernization of the CGR"s administration and structure through new training and standards offices, a personnel classification manual, and a data processing department with computer applications for administrative areas; (2) drafting of legislation to improve CGR"s legal basis for performing the new style of audits and charging audited entities for CGR services; and (3) introduction of generally accepted auditing standards. The project"s success can be attributed to the high level of competence and dedication among project management and Price Waterhouse TA staffs. Sustainability will depend on the passage of the draft legislation, CGR budget allocations, and the attitudes of future CGR management appointees. Three major lessons were learned. (1) CGR upgrading required only modest amounts of TA combined with support from a receptive government. (2) Auditing productivity is likely to increase measurably as the result of project training. (3) Initial training needs to be followed up with increased supervision and quality control to ensure that newly acquired knowledge is put into practice.