MEMORANDUM AUDIT REPORT NO. 1-520-80-13, EDUCATION SECTOR

AUDIT WAS CONDUCTED THROUGH REVIEW OF MISSION FILES, DISCUSSIONS WITH MISSION AND CONTRACTOR PERSONNEL, AND LIMITED TESTS OF FINANCIAL RECORDS. SELECTED SCHOOL CONSTRUCTION SITES WERE ALSO VISITED. OVERALL, THE EDUCATION SECTOR WAS SELECTED FOR AUDIT BECAUSE THE SLOW RATE OF DISBURSEMENT SUGGESTED THE EXISTENCE OF PROBLEMS TO WHICH THE APPLICATION OF AUDIT TECHNIQUES MIGHT BE USEFUL. CONCERNING THE BASIC RURAL EDUCATION PROJECT (5200228) IT IS FELT THAT THE TRAINING ASPECTS HAVE BEEN PERFORMED SATISFACTORILY. THE NON-FORMAL EDUCATION PROGRAM, HOWEVER, WILL NOT BE EXPANDED INTO NEW AREAS DURING THE LIFE OF THIS PROJECT. MAJOR CIRCUMSTANCES CONTRIBUTING TO THIS SITUATION INCLUDE LACK OF BASELINE STUDIES FOR NEW TARGET AREAS, BOTTLENECKS IN PROGRAM IMPLEMENTATION, AND LACK OF POLICY DECISIONS. THE RURAL PRIMARY EDUCATION PROJECT HAS BEEN DELAYED, AND THE TERMINAL DISBURSEMENT DATE HAS BEEN EXTENDED TO 12/31/80. QUALITATIVE REFORMS WHICH WERE FINANCED INCLUDE THE PURCHASE OF 223,000 TEXTBOOKS AND 8000 TEACHER GUIDES, AND THE TRAINING OF 803 DIRECTORS, SUPERVISORS, TEACHERS, AND OTHER EDUCATION RELATED PERSONNEL. AS OF 3/31/80 NO FUNDS HAVE BEEN DISBURSED UNDER THE PRIMARY SCHOOL RECONSTRUCTION PROJECT. A LIST OF PROPOSED SITES FOR SCHOOL CONSTRUCTION HAS BEEN SUBMITTED TO USAID; HOWEVER, THE SCHOOLS TO BE CONSTRUCTED HAVE NOT BEEN DESIGNED. ALSO, NONE OF THE QUALITATIVE REFORMS TO BE FINANCED UNDER THIS PROJECT HAVE BEEN ACCOMPLISHED. IN THE BILINGUAL EDUCATION PROJECT INITIAL OPERATING PROCEDURES HAVE BEEN ESTABLISHED AND THE CONDITION PRECEDENT TO FIRST DISBURSEMENT HAS BEEN MET. OVERALL IT IS FELT THAT THERE IS A NEED FOR ASSISTANCE IN THE GUATEMALAN EDUCATION SECTOR.