RURAL AND SELECTED DEVELOPMENT ACTIVITIES IN THE WEST BANK AND GAZA STRIP, GRANT NOS. NESA-G-1184, NE-G-1211, AND NE-G-1303

AUDIT COVERS THE PERIOD 1975-9/25/79, AND WAS BASED ON REVIEW OF PROJECT DOCUMENTATION, VISITS TO SELECTED PROJECT SITES, AND INTERVIEWS WITH EMBASSY, CONSULATE AND PRIVATE VOLUNTARY ORGANIZATION OFFICIALS. CATHOLIC RELIEF SERVICES (CRS) IMPLEMENTED SELF-HELP PROJECTS IN AGRICULTURE, HEALTH, AND EDUCATION FOR RESIDENTS OF ARAB VILLAGES. CRS REVIEWED PROJECT REQUESTS SUBMITTED BY VILLAGERS, SELECTED THE MOST APPROPRIATE PROJECTS, AND OBTAINED AID/W AND GOVERNMENT OF ISRAEL (GOI) APPROVAL FOR EACH. PROJECTS INCLUDED IMPROVEMENT OF VILLAGE AND ACCESS ROADS AND STREETS, AND DEVELOPMENT OF COMMUNITY INFRASTRUCTURE FACILITIES. AS OF 8/31/79, 44 PROJECTS WERE COMPLETED. ONE PROJECT WAS NOT COMPLETE DUE TO INTERNAL GOI DISPUTES. AUDITORS FOUND THAT PROJECTS WERE BENEFICIAL TO AREA RESIDENTS AND WERE MANAGED EFFICIENTLY. AUDITOR RECOMMENDS THAT THE REMAINING UNSPENT FUNDS BE RETURNED TO AID/W. CRS SUPPORTED INSTITUTION BUILDING AND SOCIO-ECONOMIC ACTIVITIES IN THE SAME AREA. DETAILED RECORDS OF THE PROJECT WERE UNAVAILABLE, HOWEVER AUDITORS VISITED BETHLEHEM UNIVERSITY WHICH RECEIVED SUBGRANTS FOR SCHOLARSHIPS AND PURCHASE OF MATERIALS AND EQUIPMENT. EQUIPMENT WAS BEING UTILIZED FOR INTENDED PURPOSES AND ALL ACTIVITIES WERE COMPLETED BY 12/31/77. THE COMMONITY DEVELOPMENT FOUNDATION (CDF) WAS TO ASSIST 5 NEW HOUSING SETTLEMENTS. HOWEVER, DUE TO GOI OBJECTIONS TO THE METHOD OF SELECTION, THE PROJECT WAS AMENDED TO ACCEPT SUBPROJECT PROPOSALS FROM COMMUNITY GROUPS IN THE GAZA STRIP FOR THE IMPROVEMENT OF SOCIAL AND ECONOMIC CONDITIONS. PROJECT PROGRAMS INCLUDED PUBLIC WORKS, COMMERCE, AND SOCIAL WELFARE. AS OF 8/31/79, CDF HAD APPROVED 34 PROJECTS, OF WHICH GOI HAD CLEARED 17. OF THESE, 2 PROJECTS WERE IMPLEMENTED AND 2 WERE IN PROCESS. CDF ENCOUNTERED DIFFICULTIES DUE TO INEXPERIENCE WITH LOCAL ORGANIZATIONS AND DIFFERENCES WITH GOI OFFICIALS REGARDING PROJECT ADMINISTRATION. TO GAIN CREDIBILITY, CDF IMPLEMENTED 2 PROJECTS BENEFITING HIGHER INCOME GROUPS. NO RECOMMENDATIONS WERE MADE BASED ON CDF NEED TO GAIN ACCEPTANCE.