Opportunities industrialization centers, international

funding of the efforts of Opportunities Industrialization Center, International (OICI) to establish manpower training and development programs in various African countries. Audit report cover the period 7/75-9/77; no methodology is given. Despite marked improvement in OICI"s administrative and operating procedures since the last audit, OICI monitoring and reporting still require further attention. Specifically, OICI"s evaluation branch makes insufficient field trips; the management information system is not providing up-to-date information; reports are not being submitted to A.I.D. on time; and no independent audits have been conducted. Auditors found costs totalling $2,72l,59l to be eligible; claims of $5,557 were questioned. Most questioned claims arose during the transition to the current OICI management. Since the transition, internal control procedures have been implemented which have markedly decreased unallowable expenses. OICI procedures for allocating costs bewteen AID- and non-AID-funded activities are burdensome. For its part, A.I.D."s Office of Financial Management (FM) has failed to collect $26,582 in costs questioned during a previous audit and has failed to record payments of $228,697 claimed and recorded by OICI. The following recommendations are made. A.I.D."s Office of Contract Management should resolve presently questioned costs; negotiate a simplified indirect cost and refund distribution procedure; in cooperation with the Office of Private and Voluntary Cooperation (PDC/PVC), ensure adequate OICI field monitoring and assess the need for semi-annual OICI reports; and require annual audits, beginning with older OICI programs in Ghana, Zaire, and Sierra Leone. (2) FM should bill OICI for previously disallowed costs; ensure its records reflect correct grant/contract expenditures; and strengthen the effectiveness and accuracy of A.I.D."s Voucher Examination Board. (3) PDC/PVC should require OICI to enforce reporting policies regarding the management information system. (4) Finally, OICI should reassess staff levels given A.I.D."s needs and the need for the above improvements.