PL-480 Title II program in Morocco should be phased out

480, Title II food distribution program in Morocco, administered by Catholic Relief Services (CRS) and Entraide Nationale, a Government of Morocco (GOM) agency. Audit report covers the period 1977-83 and is based on document review, site visits, and interviews with USAID/M, CRS/M, and GOM officials. The recommendation of the 1977 audit to phase out this, one of A.I.D."s largest Title II programs, has not been carried out and the program has become the hub of a large portion of Morocco"s welfare system. A certificate of indigence is still being used as the criterion for entry into the Maternal/Child Health (MCH) program rather than as recommended in 1977, a prequalifying standard to identify nutritionally substandard children. Also, the recommendation to develop a plan to graduate children from the nutritionally at risk category was not followed, despite a low annual turnover rate and evidence that 90% of the children in Marrakech Province have at least normal weight. The American Joint Distribution Committee"s (AJDC) distribution of Title II foods to Morocco"s small Jewish community should also be phased out as inconsistent with the intent of P.L. 480 legislation and A.I.D. guidelines: the AJDC does not target the neediest group (mothers with children between 0-5 years) and its strictly humanitarian program lacks any developmental aspects. Recipient contributions for the MCH program have generated a substantial surplus of funds over the past 4 years, but these funds have not been accounted for or placed under USAID/M controls to ensure their proper use. A review of records at two orphanages showed that they had received more food than the approved distribution list allowed, making it likely that other centers received less than their alloted share. Three separate accounting systems were used to control the receipt and distribution of Title II commodities, leading to a duplication of effort and a reduction in time for program oversight. Finally, information obtained from end checks was not used effectively by program managers and the U.S. origin of the foods was not publicized as required. Recommendations are made to correct the program"s shortfalls and ultimately to phase it out.