MEMORANDUM AUDIT REPORT NO. 5-279-81-11-AUDIT OF SELECTED RURAL DEVELOPMENT ACTIVITIES IN YEMEN

Audit report covers the period 9/77-3/81 and is based on document review, site visits, and discussions with contract, USAID/Y, and Yemeni personnel. Serious implementation difficulties were encountered in project 2790031, leading to a decision to phase out the project as of 3/31/81. Save the Children Federation (SCF), the grantee, did not provide an expatriate staff with the requisite professional skills and their four project coordinators had neither prior rural development experience nor prior work experience with SCF. Also, SCF was unable to recruit four Yemeni field coordinators until almost 2 years after the project was underway. As a result, most activities had an expatriate flavor, which contributed to communication problems regarding political matters, cultural sensitivities and office contacts and made the project unworkable. Phase-out activities were adequate and careful measures were taken to prevent recurrence of these problems in the follow-on project, 2790045. Implementation of the follow-on project was slowed by late selection of the contractor, Chemonics International Consulting Division, and a 9-month delay in their development of an approved project work plan. Nonetheless, during the first 6 months after the contract team"s arrival, many potential subprojects (SP"s) were surveyed and preliminary drawings and cost estimates prepared, resulting in the submission of several matching grant SP"s for approval. The training component became operational in 1/81. An administration/accounting course is planned for 30 personnel of the Confederation of Yemeni Development Associations and of local development associations. One participant will begin graduate study in public administration, specializing in development administration. Cornell University is undertaking a socioeconomic survey and studies of selected districts to assist in the design of more effective and economical rural development activities. Although these studies are used for staff orientation and as background material, closer monitoring is needed to ensure that findings are utilized in project activities. Chemonics is not maintaining adequate inventory records on project commodities.