REGIONAL EDUCATIONAL DEVELOPMENT, ADMINISTERED BY USAID/THAILAND THROUGH SEAMEO (SOUTHEAST ASIA MINISTERS OF EDUCATION ORGANIZATION)

Evaluation covers the period 7/1/76-12/31/80 and is based on an audit examination of financial records and discussions with project personnel. The project has provided financial support to the Southeast Asian Ministers of Education Organization (SEAMEO) through a series of Letters of Agreement (LOA). Since 1973, A.I.D. has written 28 LOA"s with a total value of $5 million. SEAMEO has successfully established six regional centers -- the Regional Center for Tropical Biology in Indonesia, the Regional Center for Educational Innovation and Technology (INNOTECH) in the Philippines, the Regional Center for Education in Science and Mathematics in Malaysia, the Regional Language Center in Singapore, the Southeast Asian Regional Center for Graduate Study in Research and Agriculture in the Philippines, and the Regional Project for Tropical Medicine and Public Health in Thailand. In addition, SEAMEO"s headquarters in Bangkok appear to be operating smoothly, with many ongoing activities and projects. Two questions remain with regard to INNOTECH operations -- one issue involves the FY 76-77 operational fund and the other concerns whether or not INNOTECH met its matching requirements under LOA 198-6021. Accounting records at USAID/Thailand revealed that A.I.D. provided the full amount ($211,200) by writing three "paid" vouchers for $160,633 and one "no pay" voucher for $50,567 against disbursed, but unobligated carryover funds from prior years. USAID should send a copy of the "no pay" voucher together with an explanation to SEAMEO headquarters. The transfer of funds should be recorded in LOA 198-6021 and 198-5016. In addition, USAID should determine if savings from INNOTECH"s FY 78-79 Capital and Operating Fund can be applied to Other Category Costs incurred in subsequent years. As a result of the fragmented accounting by individual LOA"s, a great deal of time was spent reconstructing records. In the future, central project ledgers should be maintained.