Sumatra agricultural research

Audit report covers the period 9/77-10/82 and is based on document review, site visits, and interviews with Government of Indonesia (GOI), contractor, and USAID/I personnel. The project, several years behind schedule owing to early recruitment difficulties, will not be able to meet its objectives, but significant progress is being made. Construction of at least three research stations has begun, expatriate housing is nearly ready, and vehicles have been provided at most sites. The project"s success is jeopardized, however, by serious shortfalls in GOI budget contributions (less than 35% of the planned amount) and in training of researchers (only 9% of graduate degree training funds have been expended due to lack of English-speaking candidates and a competitive program which offers larger stipends). Problems in filling expatriate advisor positions persist, and grant funds have been used to pay prospective employees" travel costs, a practice subject to possible abuse. The accounting system is also inadequate; the contractor"s home office has failed to provide detailed supporting documentation with vouchers and to distinguish between loan- and grant-funded expenses. Home office overhead expenses seem high and transfer of funds between home office and field accounts has been inefficient. Documentation of field expenses is generally adequate; $1,674 disbursed to a consultant for personal expenses has not been repaid. In addition, the performance of a local construction contractor was substandard and funds withheld from his payment are insufficient to correct deficiencies. The importance of preconstruction land and water surveys needs to be reemphasized. The GOI quarterly reports often dealt with the accomplishments of other research projects. In several cases, research stations had to be relocated due to GOI failure to obtain land rights. Vehicle control ranged from good to nonexistent. Finally, few vehicles and no research stations exhibited A.I.D. markings. It is recommended that the project be redesigned if the GOI does not provide funding as agreed. Twelve other recommendations address specific problems noted above.