Rural education sector program

Audit report covers the period 6/79-3/83 and is based on document review, site visits, and discussions with USAID/J and Ministry of Education (MOE) personnel. Results have been mixed. Output targets were largely achieved, especially the construction of educational facilities (although the A.I.D. emblem was largely omitted). However, only 50% of the planned technical assistance was provided, the goals of the continuing education effort had to be abandoned, and funds were used for purposes outside the strict scope of the project - i.e., the conversion of the Passley Gardens Secondary Agriculture School into an Agriculture College and the reprogramming of over $900,000 to repair schools damaged by the 1979 flood. Further, USAID/J did not monitor effectively; A.I.D. was charged for substandard and unnecessary construction. This is typical of USAID/J, which has not implemented seven of the nine recommendations of the 6/79 audit and ought to improve its internal controls in accordance with the Federal Managers" Financial Integrity Act of 1982. Many of the problems noted in the last audit resurfaced. Due to insufficient Government of Jamaica (GOJ) funding, the maintenance of completed buildings continues to be a major problem. Further, USAID/J"s financial controls are weak. USAID/J accepted copies, not originals, of GOJ reimbursement requests and did not review the supporting documentation; 38% of reimbursed costs lacked adequate support. In addition, over $700,000 will have to be deobligated. In regard to counterpart funding, USAID/J was not receiving adequate GOJ reports nor taking currency devaluations into account, and the GOJ has shifted funding without consulting USAID/J; the MOE has still not audited the project. Commodity management, especially at the schools, was weak; neither USAID/J nor the GOJ could determine how much of the $2.7 million in commodities was received and used. Finally, USAID/J authorized procurement of $282,867 worth of ineligible commodities without AID/W approval. Although the matter has now been rectified, A.I.D. Handbooks should be clarified to obviate future occurrences of this kind. A total of 14 recommendations are provided.