MEMORANDUM REPORT OF AUDIT NO. 1-596-73-30 AGRICULTURAL PLANNING-PROJECT NO. 596-11-140-026 ROCAP/GUATEMALA (7/25/72-9/8/72)

PROJECT PURPOSE WAS TO: 1)IMPROVE SECRETARIAT FOR CENTRAL AMERICAN INTEGRATION (SIECA)"S ABILITY TO DEVELOP AGRICULTURAL PRODUCTION AND CONSUMPTION; AND 2)IMPROVE INTER-AMERICAN INSTITUTE OF AGRICULTURAL SCIENCE (IICI)"S ABILITY TO COORDINATE, ANALYZE AND DISSEMINATE AGRICULTURAL RESEARCH INFORMATION AND EXTENSION ACTIVITIES. EVALUATION BASED ON DOCUMENTS AND ON-SITE OBSERVATIONS. AID HAS PROVIDED ASSISTANCE IN AGRICULTURAL PLANNING AND AGRICULTURAL RESEARCH COORDINATION. REGIONAL OFFICE OF CENTRAL AMERICA AND PANAMA (ROCAP) HAS PROVIDED TRAINING FOR 7 PARTICIPANTS FROM THE PAN AMERICAN AGRICULTURAL SCHOOL (PAAS) AND THE INTERNATIONAL REGIONAL ORGANIZATION FOR SANITATION CONTROL OF AGRICULTURE AND CATTLE (ORISA). ALSO,IICA HAS PROVIDED AGRICULTURAL TRAINING FOR 36 PUBLIC SECTOR PERSONNEL OF CENTRAL AMERICAN COUNTRIES. DESPITE TRAINING RECEIVED,AN EVALUATION OF PROJECT IS DIFFICULT SINCE REQUESTS AND DOCUMENTATION FOR FUNDING WERE LIMITED,AND FOLLOW-UP OR TRAINING WAS NOT CONDUCTED. FURTHER,IICA AND SIECA INCURRED COSTS WHICH WERE NOT ALLOWED UNDER PROJECT AGREEMENTS. RECOMMENDATIONS FOR IMPROVED PROJECT PERFORMANCE ARE TO: 1)INITIATE COLLECTION ACTION FROM IICA AND SIECA TO COVER UNAUTHORIZED PROJECT COSTS; 2)DETERMINE IICA"S JUSTIFICATION FOR TRAVEL COSTS AND THEN FILE THE NECESSARY REIMBURSEMENT CLAIMS FOR AIR CARRIERS WITH HEADQUARTERS LOCATED OUTSIDE THE US OR CENTRAL AMERICA; 3)DETERMINE IF SIECA SHOULD BE REIMBURSED FOR A SWEDISH CALCULATOR; 4)REIMBURSE IICA ONLY FOR INCURRED PROJECT COSTS AS OF 10/71 ($4,813,30 TO BE DEOBLIGATED FROM PROJECT AGREEMENT 17-3); 5)OBTAIN ROCAP APPROVAL FOR IICA"S STAFF COSTS BEFORE REIMBURSEMENT IS APPROVED; AND 6)REQUIRE THAT ROCAP AND IICA ESTABLISH AND UTILIZE PROCEDURES TO ASSURE SELECTION,POST EVALUATION,AND FOLLOW-UP OF PARTICIPANT TRAINING.