MEMORANDUM REPORT ON EXAMINATION OF AID SPECIAL SELF-HELP DEVELOPMENT ACTIVITIES IN LESOTHO

AUDIT WAS CONDUCTED THROUGH PROJECT SITE VISITS, REVIEW OF PROJECT DOCUMENTATION AND FILES MAINTAINED BY EMBASSY LESOTHO, AND REVIEW OF FINANCIAL RECORDS MAINTAINED BY THE EAST AFRICA ACCOUNTING CENTER. IT WAS CONCLUDED THAT THE PROJECTS SELECTED BY THE EMBASSY IN LESOTHO MET THE CRITERIA TO A)IMPROVE BASIC ECONOMIC AND SOCIAL CONDITIONS AT THE LOCAL COMMUNITY LEVEL; B)STIMULATE LOCAL COMMUNITY ACTION; AND C)GENERATE GOOD WILL TOWARD THE UNITED STATES. THE AUDITORS, HOWEVER, WERE UNABLE TO MEASURE SUCCESS BECAUSE 1)THE EMBASSY HAD NOT REQUESTED COMPLETION REPORTS FROM THE BENEFICIARIES UPON PROJECT COMPLETION AND 2)THE INDIVIDUAL ACTIVITY AGREEMENTS (IAA"S) DID NOT CONTAIN SOME BASIC INFORMATION SUCH AS THE FINAL DATE FOR ISSUING IMPLEMENTING DOCUMENTS. THE FOLLOWING RECOMMENDATIONS ARE PROVIDED: 1)WHEN PROCESSING IAA"S THROUGH THE APPROVAL PROCESS USE A CHECKLIST APPROACH TO ENSURE THAT THE REQUIREMENT FOR PROJECT SUPERVISORS TO SUBMIT A COMPLETION REPORT UPON PHYSICAL COMPLETION OF THE PROJECT IS INCLUDED IN THE IAA. IN INSTANCES WHERE THE REQUIREMENT IS NOT SUBSEQUENTLY MET THE EMBASSY SHOULD PREPARE A COMPLETION REPORT PURSUANT TO MANUAL ORDER 1321.1.2; 2)EMBASSY/LESOTHO SHOULD DEVELOP AN ESSENTIAL ITEMS CHECKLIST TO ENSURE THAT IAA"S ARE PREPARED IN ACCORDANCE WITH PROVISIONS OF MANUAL ORDER 1323.1.2.