MEMORANDUM AUDIT REPORT NO 81-37, REVIEW OF FAMILY PLANNING INTERNATIONAL ASSISTANCE AT SELECTED OVERSEAS LOCATIONS

Evaluation covers the period 2/77-2/80 and is based on an audit review of FPIA and subgrantee (SG) files. Four areas were examined: commodity and financial accounting, bookkeeping, and FPIA"s regional office cash flow recording procedures. Three SG"s displayed commodity accounting problems. In Thailand, reports submitted to FPIA"s central office by one SG between 2/78-12/79 demonstrated a discrepancy of 74,000 condoms. FPIA did not attempt to resolve this contradiction. Another Thai SG had no commodity distribution records and its inventory records were not kept up to date. Between 2/77-5/80, this SG should have had 50,056 condoms in stock, yet none were reported as of 6/80. In Bangladesh, one SG"s progress and distribution reports were found to be inaccurate. Since this review, FPIA accounting and monitoring staff have visited SG"s more frequently. Also, FPIA has drafted new monitoring guidelines and initiated onsite training. A meeting held in 2/81 in New York laid the groundwork for further revisions. In Thailand, the second aforementioned SG also kept almost no financial records and between 10/79-2/80 there existed a possible discrepency of $7,896. This SG"s staff was weak in accounting and had not been visited by a qualified FPIA examiner. FPIA has since included one qualified financial examiner in each region to oversee financial activities. FPIA also established bookkeeping standards and will publish a bookkeeping manual by 6/30/81. Only one FPIA regional office displayed significant documentation problems. The East Asia and Southern Pacific Regional FPIA Office did not have adequate control over its cash flow activities. Dollar deposits and the involvement of two banks complicated the monitoring of currency transactions. Now, a single bank is used for all transactions. Also documentation is used which covers all aspects of dollar/peso transactions and cash managemnent procedures were drafted. FPIA has been responsive to all of AID/W/POP/DSB recommendations.