Pre-award survey - National Office for Social Responsibility; audit report, 7/21/80

PVO which has submitted a proposal for a 3-year vocational training project in St. Lucia. Audit report is based on a visit to NOSR"s offices. NOSR"s financial capability is adequate for performing the services under the proposed grant, as is the accounting system. NOSR"s proposal included budgets for home office technical support, the St. Lucia Youth Development Program Office, and training centers. Except for the direct salaries of NOSR employees, the auditors are unable to comment on the reasonableness of the costs. Supporting documentation regarding salary levels and equipment costs in St. Lucia were unavailable. While the proposed overhead rate is fair, the fringe benefit rate of 14% is high (10.5% is deemed acceptable). Since NOSR has no overseas experience and is unfamiliar with A.I.D. procurement regulations, the grant should spell out the procurement practices NOSR is expected to follow. Since the grant appears to be a specifc support type grant, appropriate A.I.D. policies and procedures should also be enumerated in the grant.