Population planning project : memorandum audit report

Audit report covers the period 1970-80 and is based on document review, site visits, and interviews with RTG and USAID/T personnel. The audit confirmed findings of an outside team that the NFPP logistics system was notably deficient, e.g., stocks were imbalanced and stock records inaccurate, physical inventorying or recording of manufacture date was not provided for, and the central warehouse was overcrowded. A national survey, which the team recommended be conducted in 12/80, while still incomplete, has further confirmed the findings. One province had 268,000 pill cycles, worth over $50,000, which were mostly made in 1976. Some of the above conditions have persisted for over 4 years despite USAID/T"s reported action on recommendations of a 10/76 audit to improve commodity control. (USAID/T assured auditors that a senior NFPP person is now in charge of commodity management). In addition, monthly NFPP statistical reports contained significant discrepancies, e.g., regarding the per active user distribution rate. a local firm hired by the RTG to audit voluntary surgical contraception (VSC) had, as of mid-1980, audited only 1% of VSC"s, and not 3% as required, nor had the 3% figure been included in the contract; and irregular reporting by the provinces and the lack of detail in the vouchers makes USAID/T liable to duplicate payments. It is recommended that USAID/T: (1) document how it will resolve commodity control problems, implement the 13 recommendations made on the subject by the outside team, and have the NFPP reconcile provincial and warehouse differences with the records, taking corrective action in case of misuse; (2) present to the NFPP the recommendations it has made to improve NFPP reports (e.g., by making sure all personnel understand that "distributed" means actually dispensed, not just locally transported, and by conducting more frequent user surveys) and make sure the NFPP executes the recommendations; (3) reassess its VSC audit requirements, make sure the 3% figure is included in the audit firm"s contract, and require the firm to adhere to the figure; and (4) assure the adequacy of RTG reimbursement procedures and a cut-off date for reimbursement.