International Eye Foundation - accounting for grant funds

Audit report covers the period 1972-82 and is based on a review of financial records and interviews with IEF officials. Through 14 projects (four still active), the IEF has: provided surgical teaching teams to 30 countries; contributed the services of over 200 U.S. ophthalmologists to teach ophthalmic surgery; trained over 200 foreign fellows in U.S. institutions; rotated 250 U.S. fellows overseas; developed long-term exchange training programs in Haiti, Honduras, El Salvador, Peru, Ethiopia, and Bangladesh; established training programs for nurses and opthalmic assistants in the Philippines, Indonesia, Bangladesh, Pakistan, Kenya, Barbados, and El Salvador; and implemented integrated eye care programs in El Salvador, Honduras, Egypt, Ethiopia, Kenya, Bangladesh, and Ghana. Because its system for recording and controlling costs was inadequate, the IEF was suspended from receiving further A.I.D. funds on 7/9/81. With the assistance of its accountant, the IEF implemented a new system and developed a new accounting procedures manual. As a result, the suspension was lifted on 8/4/81, retroactive to 7/1/81. Of the eight grants reviewed, 14% of claims were questioned ($168,048) or unresolved ($176,166); however, the latter might be accepted on a discretionary basis. The IEF was specifically faulted for treating funds advanced for performance of services as expenses and not requiring any further accounting; transferring monies between grant and private IEF accounts without reimbursements; inappropriately crediting refunds; arbitrarily allocating direct and indirect salary expenses; maintaining incomplete records for consultant costs; and for not complying with one or several A.I.D. travel policies and regulations. Moreover, a final voucher for a grant which expired 12/78 has not been prepared, claims on two other grants exceeded those incurred and booked by IEF, and equipment lists are lacking. It is recommended that grant officers review and settle questioned and unresolved costs, and assure that future IEF claims are more timely and accurate.