OMVS AGRONOMIC RESEARCH PROJECT (MEMORANDUM AUDIT)

Evaluation covers the period 10/78-8/80 and is based on an audit review of OMVS accounting records and financial management practices and discussions with project officials. Evaluation investigates alleged mishandling of local currency funds by OMVS officials and was requested by the OMVS Director. To date, OMVS has incurred $590,554 in local currency expenditures, several of which were not properly authorized or documented. At least $128,482 (22%) are of questionable validity. For example, A.I.D. inadvertently reimbursed OMVS $64,256 in excess of reported expenditures between 10/78 and 12/79. Instead of returning this amount, OMVS spent it without A.I.D."s knowledge. OMVS also failed to submit expenditures from 1-8/80. Disbursements totalling $53,163 remain unsupported by documentary evidence, e.g., invoices. USAID/S, which has already sent OMVS a bill of collection for $70-80,000, should continue its review of expenditures and keep the Area Auditor General abreast of the situation. Although the possibility of negligence or deceit is being investigated, the problem appears rather to be due to OMVS"s lack of internal controls over expenditures and inadequate accounting procedures. OMVS"s project manager, for example, assumed the responsibility of the OMVS accountant in 1/79. Similar situations obtain at the project"s three research stations. It is recommended that USAID/S assist OMVS to establish adequate internal controls (a list of which is provided) over local currency disbursement and to develop adequate accounting procedures. Thirdly, the project officer"s approval of OMVS reports was not based on any substantive review or knowledge of OMVS"s financial management practices. Since the OMVS Office of Financial Management in Dakar, which is ultimately responsible for approving OMVS financial reports, lacks sufficient staff to review them in depth, it is recommended that they be regularly reviewed by USAID/S.