Non-federal audit of Liberia"s primary health care project (669-0165) : financial review, six months ended December 31, 1984, performed by Management Control Systems of Monrovia, Liberia

Independent audit report covers the period 7/84-12/84 and is based on interviews with project personnel, document review, and testing of accounting and administrative procedures. The audit does not cover services provided under TA contracts. Proper books and records have not been established, apparently due to the failure of project management to take advantage of support resources available within the Ministry of Health and Social Welfare (MHSW). In addition, controls over both expendable and non-expendable project resources are weak or non-existent. Insufficient GOL funding is a major impediment to proper project implementation. None of the FY85 GOL budget and only 12.5% of FY84 budget have been received; if additional allocations are not received by 6/30/85, activities funded by the GOL may cease. Due to the slow pace of project start-up, resulting in part from lagging GOL disbursement, less than 10% of A.I.D. budget allocations for years one and two have been disbursed. A.I.D. disbursements appear to be in line with project design and are being utilized properly. The project structure poses the danger of centralizing decisionmaking within committees and limiting county- and village-level control; to guard against such centralization, the number of committees established by the project should be reviewed during implementation. In addition, support relationships within the MHSW should be cultivated. Recommendations call for the establishment of a realistic timetable for GOL subventions, and for the GOL to: establish permanent books and records - a general ledger, voucher register, check register, petty cash system, and payroll register - and include bank balances in monthly reporting; conduct annual inventories of project property and maintain adequate property records; purchase property insurance on project vehicles as required by Liberian law; and collect salary advances and other employee loans already made through salary deductions from project personnel.