REPORT ON REVIEW OF MANAGEMENT AND PERFORMANCE BY AID/W OF THE PATHFINDER FUND

IT WAS RECOMMENDED THAT CERTAIN QUESTIONED COSTS BE DISALLOWED & A REFUND OF $204198.53 BE OBTAINED. OF 60 PROJECT FILES REVIEWED, 7 DID NOT HAVE SUBGRANT AGREEMENTS. THOSE PROJECTS WITH SUBGRANT AGREEMENTS DID NOT ADEQUATELY ALLOW FOR THE FOLLOWING: RETURN OF UNUSED FUNDS, TERMINATION OF A GRANT FOR UNSATISFACTORY PERFORMANCE, THE RIGHT OF THE US GOVERNMENT TO AUDIT, THE MAINTENANCE OF PROPER ACCOUNTING RECORDS BY SUBGRANTEES, & THE PENALTY FOR SUBGRANTEES" NONPERFORMANCE. THERE WAS NO ADEQUATE METHOD FOR IDENTIFYING DELINQUENT SUBGRANTEE FINANCIAL REPORTS ON ADVANCE PAYMENTS. AID SHOULD ASSURE THAT CONTRACTOR ENTERS INTO SUBGRANTS PROTECTIVE OF INTERESTS OF AID, CONTRACTOR & SUBGRANTEE; THAT CONTRACTOR COLLECTS DELINQUENT FINANCIAL REPORTS FROM SUBGRANTEES & INSTITUTES A BETTER REPORTING SYSTEM; THAT CONTRACTOR HAS AUDITS MADE OF AID-FINANCED SUBGRANTS & THAT CONTRACTOR ISSUE GUIDELINES CONFORMING TO THE AID GRANT REQUIREMENTS. CONTRACTOR DID NOT MAINTAIN ADEQUATE PROPERTY CONTROL RECORDS. COSTS CHARGED TO CONTRACT # AID/CSD-1573 & GRANT # AID/CSD-1870 SHOULD BE REVIEWED FOR EQUIPMENT PURCHASED & ALL ACCOUNTABLE PROPERTY BE REPORTED TO AID. THE CONTRACTOR REIMBURSED ITS TRAVELLERS NOT ONLY FOR THE MAXIMUM PER DIEM RATES ALLOWED BY THE US GOVERNMENT BUT ALSO FOR THE ACTUAL COSTS OF LAUNDRY PLUS BUSINESS MEALS. CONTRACTOR SHOULD ESTABLISH AN AID-APPROVED TRAVEL REIMBURSEMENT PROCEDURE & AID SHOULD INSTRUCT CONTRACTOR THAT BUSINESS MEALS ARE NOT REIMBURSEABLE. CONTRACTOR BASED OVERHEAD COSTS ON ESTIMATED RATHER THAN ACTUAL COSTS FOR PAYMENT & WAS DIRECTED TO INCLUDE ONLY ACTUAL COSTS. GRANT # AID/CM/PHA-G-73-15 SHOULD BE AMENDED SO THAT CONTRACTOR CAN CHARGE HOME OFFICE OVERHEAD COSTS TO IT. CONTRACTOR NEEDS TO STATE EACH PROJECT"S GOALS IN WRITING,SINCE THIS HAD NOT BEEN CONSISTENTLY DONE. CONTRACTOR SHOULD DEVELOP AN ADEQUATE EVALUATION SYSTEM,SINCE THERE WAS NO WRITTEN POLICY ON IN-HOUSE EVAL OF PROJECTS,NO SET OF CRITERIA FOR PROJECT"S SUCCESS,AND A LACK OF TECHNICAL EXPERTISE.