Participant training program USAID/Indonesia

Audit report covers the period 9/76-12/81 and is based on a review of project records and discussions with project officials and returned participants. The participant training program has operated effectively, but there have been a few potentially serious deficiencies in the handling of program funds. USAID/I"s financial status report for the quarter ended 12/31/81 reported that $700,000 had not yet been subobligated under Project 497-0248, funded by Loan 497-V-042-A. Actually, there was only $56,000 available for subobligation under that project. The discrepancy arose because participant training disbursements totaling $644,056 which should have been charged to Loan 042-A were instead charged to Loan 042. In sum, the amount unsubobligated from Loan 042 has been overstated by $644,056 and the disbursements from Loan 042-A understated by a like amount. As such, a potential for oversubobligation of funds exists. In addition, under Project 497-0261, $119,000 was subobligated to cover health insurance for participants contrary to A.I.D. regulations requiring that particpant health insurance be paid by the contractor. The training program has been successful in that returned participants are working in the professional and organizational areas for which they were trained. From interviews with 11 participants who had completed training between 1969 and 8/81 it was learned that all 11 had experienced significant post-training career advancement in their professions. Review of accounting files for 50 trainees showed no deficiencies in budgetary accuracy or in required signatures and authorizations. Selection and tracking files for 169 participants and follow-up files for 26 returned participants were also reviewed and were found to be complete. It is recommended that USAID/I properly sub-obligate funds available under Loan 042-A and charge disbursements to the proper loans. In addition, USAID/I should de-subobligate the $119,000 for health insurance.