Audit of Uganda Manpower for Agricultural Development ...pdf.usaid.gov/pdf_docs/PDABD027.pdf · Y-//J&/ - 397 Audit of Uganda Manpower for Agricultural Development Project No. 617-0103

Y-Jamp - 397

Audit of Uganda Manpower for

Agricultural Development Project No 617-0103

Audit Report No 3-617-91-10 July 19 1991

The long-term impact of the Uganda Manpower for Agricultural Development Project will depend on the Government of Ugandas success in implementing its cecent agricultural extension plans and its willingness to fund the projects recurrent costs Also USAIDUganda has used project funds to supplement its operating expense budget and did not adequately monitor the Government of Uganda and the technical assistance corractor to give reasonable assurance that commodities were adequately accounted for and used effectively and efficiently

UNITED STATES OF AMERICA AGENCY FOR INTERNATIONAL DEVELOPMENT

REGIONAL INSPECTOR GENERALAUDIT

UNITED STATES POSTAL ADDRESS INTERNATIONAL POSTAL ADDRESSBOX 232 POST OFFICE BOX 30261APO NY 09675 NAIROBI KENYA

July 19 1991

MEMORANDUM

TO Keith W Sherper Director USAIDUganda

FROM Toby L Jarman RIGANairobi 4 (7 SUBJECT Audit of Uganda Manpower for Agricultural Development

Project No 617-0103

Enclosed are five copies of our audit report number 3-617-91-10 on the subject audit

We reviewed your comments on the draft report and included them as an appendix to this report Based on the actions taken by the Mission Recommendation Nos 34 and 35 with estimated procedural and efficiency savings of $25780 are closed Recommendation Nos 21 and 33 are resolved and can be closed upon receipt of evidence showing that the actions cited have been implemented Recummendation Nos 1 31 and 32 will be resolved when we obtain your agreement to take the corrective action cited in each of those recommendations In addition Recommendation No 22 remains unresolved as you have not concurred with the estimated efficiency savings of $201212

I appreciate the cooperation and courtesies extended to my staff during the audit

Started on August 26 1983 the Uganda Manpower for Agricultural Development Project was desigrnd to assist the Government of Uganda (GOU) to stimulate small farmer agricultural j -oduction The purpose was to rehabilitate retrain and redirect its agricultural manpower Ad institutional capability in food crops production To achieve this AID authoi Uicd $249 million to the GOU in life-of-project funding As of September 30 1990 USAIDUganda obligated $195 million and incurred project expenditures of about $155 million

Between August 20 1990 and October 19 1990 we audited the project in accordance with generally accepted government auditing standards (see Appendix I) and found the following

The project has progressed satisfactorily towards achieving many of its targeted outputs However the long-term impact of the project will depend in part on the success of the GOUs recent plans to ensure that agricultural research results are spread to the small farmers (see page 5)

USAIDUganda has funded the projects recurrent costs in absence of a GOU phaseshyin of funding If not corrected inappropriate AID funding of such costs could total about $13 million by the projects completion date (see page 6)

USAIDUganda followed AID policies and procedures in the obligation and expenditure of project funds except that it improperly used $201212 of project funds to fund operating expenses of the Mission As a result that amount was not available for project use to for example strengthen the projects extension component (see page 9)

Although USAIDUganda followed AID procedures in obtaining necessary and eligible commodities it did not adequately monitor commodity management procedures by the host government and the technical assistance contractor As a result over $29 million of commodities are subject to inefficient use loss or theft and abuse (see page 13)

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This report contains three recommendations principally for the Mission Director to suspend AID funding of recurrent costs if a plan is not implemented by October 31 1991 to assure the host government assumes such funding as called for by AID policyreimburse de-commit and then re-program $201212 of project funds spent or committed to meet USAIDUgandas operating expenses suspend planned procurement of commodities valued at $1044932 until a system is implemented for adequately monitoring commodities in accordance with approved procedures develop and implement a re-distribution plan for idle equipment valued at $182734 and issue a bill for collection of $25780 to an exshyemployee if two project vehicles are not returned to the project

The report also presents our assessment of internal controls (see page 22) and includes a summary of significant areas of noncompliance with applicable laws regulations and agreements (see page 25)

Office of the Inspector General July 19 1991

ii

Table of Contents

Page

EXECUTIVE SUMMARY

INTRODUCTION

Background

Audit Objectives 3

REPORT OF AUDIT FINDINGS 5

What is the progress of the project in achieving targeted outputs and in providing for long-term impact 5

Did USAIDUganda follow AID policies and procedures concerning AID funding of recurrent costs 6

USAIDUganda is funding recurrent costs without a plan to phase in GOU funding 6

Did USAIDUganda follow AID policies and procedures in the obligation eaimarking and expenditure of project funds 8

Project funds were sed to supplement USAIDUgandas operating expense budget 9

Did USAIDUganda follow AID procedures in obtaining necessary and eligible commodities and in monitoring for their (a) adequate accounting of receipt storage and use (b) effective and efficient use and (c) safeguarding against waste loss and misuse 13

Pagze

USAIDUganda did not establish an adequate commodity monitoring system 13

REPORT ON INTERNAL CONTROLS 22

Audit Objective One 23 Audit Objective Two 23 Audit Objective Three 23 Audit Objective Four 24

REPORT ON COMPLIANCE 25

MANAGEMENT COMMENTS AND OUR EVALUATION 27

APPENDIX I - SCOPE AND METHODOLOGY 30

APPENDIX II - MANAGEMENT RESPONSE 35

APPENDIX III - COMMODITY MANAGEMENT PROBLEMS 41

45APPENDIX IV - REPORT DISTRIBUTION

Background

The overall goal of the Manpower for Agricultural Development Project is to assist the Government of Uganda (GOU) to stimulate small farmer agricultural production This is to be accomplished by assisting the GOU to rehabilitate retrain and redirect its agricultural manpower and institutional capability in food crops production The major outputs expected from the project included

(a)

(b)

an educated agricultural staff at the Ministry of Agriculture (MOA) and the Faculty of Agriculture of Makerere University the rehabilitating re-equipping and re-supplying of selected facilities of the

MOA and Makerere University and

(c) an agricultural system linking research with extension

Project implementation on the GOUs part was by the MOA and Makerere University in collaboration with a technical assistance contractor that was contracted by USAIDUganda--Ohio State University Research Foundation Ohio State University as prime contractor contracted with various subcontractors for partial fulfillment of its obligations and was responsible for the implementation of the project on behalf of both USAIDUganda and the GOU Responsibility for the overall management of the project however was USAIDUgandas

The project was initiated on August 26 1983 and was to be completed by August 15 1988 at a cost to USAID of $9 million However the project experienced substantial delays (including suspension of project activities due to civil insurrection) and increased costs Thus the accomplishment of project objectives proved to be more difficult than originally envisioned For these reasons and because of a recommendation by an evaluation team in November 1987 to extend the project by five years the projects completion date was extended to August 26 1993 on May 10 1988

1

The project extension included an increase in life-of-project funding to $249 million The GOU agreed to life-of-project contributions totalling about $15 million Thus total projectcost is planned to be about $399 million As of September 30 1990 USAIDUganda had obligated $195 million and incurred expenditures of about $155 million

OBLIGATIONS amp EXPENDITURES As of September 30 1990

Million $$ 256

195 20

553

15

102

5 208 17 095

Total TA Commodities Training Other

Budget Categories

MObligations M Expenditures

Other in the above graph includes rehabilitation and commodities

2

Audit Objectives

The Office of The Regional Inspector General for AuditNairobi audited the UgandaManpower for Agricultural Development Project to answer the following objectives

1 What is the progress of the project in achieving targeted outputs and in providing for long-term impact

2 Did USAIDUganda follow AID policies and procedures concerning AID funding of recurrent costs

3 Did USAIDUganda follow AID policies and procedures in the obligation and expenditure of project funds

4 Did USAIDUganda follow AID procedures in obtaining necessary and eligiblecommodities and in monitoring for their (a) adequate accountiag of receipt storageand use (b) effective and efficient use and (c) safeguarding against waste loss and misuse

In answering these audit objectives we tested whether USAIDUganda (1) followed applicable internal control procedures and (2) complied certainwith provisions of regulations policies grants and contracts Our tests were sufficient to provide reasonable shy-but not absolute --assurance of detecting abuse or illegal acts that could significantly affect the audit objectives However because of limited time and resources we did not continue testing when we found that for the items tested USAIDUganda followed AID proceduresand complied with legal requirements Therefore we limited our conclusions concerningthese positive findings to the items actually tested But when we found problem areas we performed additional work

to conclusively determine that USAIDUganda was not following a procedure

or not complying with a legal requirement

to identify the cause and effect of the problems and

to make recommendations to correct the condition and cause of the problems

Appendix I contains a complete discussion of the scope and methodology for this audit

3

FRANCE ROMANIA SOVIET UNION

(PORT O a s ITALY U TURKEY

Azs s V REECSULLE GI~r SRI

CasablanCa TUNISA Tripoli CaROCC Alexandria iE

Bangh~zi N Kwat

El Asai Tindout ALGERIA LIBYA

We QATAR

T~u AC(r AIJawf Aljawt SAUDI I Tarrarnit ARABIA

AOMAN

D a a om bouctou N IG ER P Y-Dakar i -- MALl sgadez Khartoum lmr Banjul

GAMRIA Bamako SUDAN Bissau AI Fishlr GUINEA- GUINEA uagecougo Kanou

1 jD O BISSAU

ConakryrFreetowo NIGERIA

SIERA LEONE o Morva AA vo ETHIOPIA

LIBampRIA L CAa End SOMALIA Malabo bull I JI1

EQUATORIALGUINEA Yaound4 a Mogadishu

SAO TOME AND al snKEARI

Annob~n 0 mARWAND 1ali

0o010 I A IR E al-Mile 0 t G50 O

Gu I aville BURUNDI

L Mombasa ANGOLA Kinshasa

Cabn~a]Kalmk TNZAIA o Dar es Salaam

AI E- A Proec1ion SEYCHELLES

Lobito amp MALAWIw Moroni Antsiranana

ZAMBIA I BIuNacala

St11 4luara(UWEbull+ i

ZIMBABWE Eir

SOUTHAFRICA~~tse (Walyvs Bay)

ro sesaiy uhriajsLilderitz Johannesburg abane

Maer SWAZILAND

4051 ADurban 154147 4

vLESO)THO Scale 148000000 SOUTH AFRICA

0 500 1000 Kilometers Cape Town PdEizbt

0 560 1000 Nautiral Miles

Azimuthal Equal-Area Projection

lyauthoultii not n

801514 (54 714 7) 490

REPORT OF AUDIT FINDINGS

What is the progress of the project in achieving targeted outputs and in providing for long-term impact

The project has progressed satisfactorily towards achieving many of its major targeted outputs However sustainable long-term impact of the projects activities will depend on the Government of Ugandas (GOU) success in implementing its recent agricultural extension plans and its willingness to fund the projects recurrent costs

The planned outputs under the second five years of the project -- Phase Ir-- that are progressing as planned include the following

As of the time of the audit 32 of the 36 planned long-term participants under the training component have been sent to the US for training and three have already returned to Uganda Based on their departure dates for the US and their scheduled lengths of schooling all those currently in the US are expected to be back in country approximately by the projects completion date

The planned rehabilitation and re-equipping of facilities is at least 90 percent complete Although four research stations were to be rehabilitated according to the Phase II project design the Serere station is situated in a high security risk area and has been informally dropped from rehabilitation and reshyequipping plans The Kawanda Namulonge and Kabanyolo research stations have benefitted from the project The Faculty of Agriculture building at Makerere University has also been substantially rehabilitated and the Ministry of Agriculture facilities have been re-equipped

There was however little evidence to show that an effective extension system was beingestablished as planned to eventually transfer agricultural technologies developed under the project to large numbers of small farmers At the time of the audit only 38 extension agentshad been trained out of the 120 called for in the project paper and the extent of their

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training was unclear Also the GOU had not provided the annual extension and research linkage plans required in the project agreement that could enhance the rate of disseminating research to small farmers if implemented

In their response to a draft report of this audit USAIDUganda submitted several documents approved by the GOU subsequent to the audit These documents included a lengthy report on agricultural extension planning that adequateiy addresses the issues discussed above and defines the role the extension component will play in stimulating the agricultural production of the small farmer In c r opinion the long-term impact of the project will depend in part on the success of these extension plans

Furthermore despite the progress in achieving many of the targeted outputs the sustainable long-term impact of the project is in doubt because there is no plan in effect to have the GOU assume responsibility for funding recurring operational and maintenance expenses of the project This problem and other aspects of project management requiring corrective action are discussed in this report under the remaining audit objectives

Did USAIDUganda follow AID policies and procedures concerning AID funding of recurrent costs

In our opinion USAIDUganda did not follow AID policies and procedures concerning AID funding of recurrent costs

The GOU has neither provided the funding for recurrent costs of this project nor established a plan to eventually fund these costs USAIDUganda has not followed AID policy on recurrent costs that requires recurrent costs of development assistance projects to be funded by the host government or have a plan to phase-in their funding of these costs In the absence of GOU funding AID project funds have been used to cover these costs and USAIDUganda vill have provided an estimated $13 million in recurrent costs for this project through the project completion date

USAIDUganda Is Funding Recurrent Costs Without A Plan to Phase in GOU Funding

AIDs policy on recurrent costs requires that development assistance projects be sustainable by the host government and accordingly the recurrent costs of such projects are to be funded by the host government All funding for the recurrent costs of this eight-yearold project however has been provided through USAID project funds with no provision or plan for the phasing in of funding by the GOU As a result USAIDUganda will provide

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an estimated $12 million for recurrent costs through the project assistance completion date More importantly the sustainability of the project is questionable without evidence of current or future host government funding for these costs

Recommendaton No 1 We recommend that the Mission Director USAIDUganda require the Government of Uganda to provide the recurrent cost plan called for by the project agreement by October 31 1991 and if such a plan is not ttablished by that date suspend all recurrent cost funding for the project until an acceptable plan is implemented

AIDs Policy Paper on Recurrent Costs dated November 1984 (Handbook 1) defines recurrent costs simply as those costs that recur as opposed to fixed (or capital) costs which are concentrated at the beginning of a projects life Recurrent costs would include the annual operational costs of salaries utilities maintenance materials and replacement of worn-out capital which continue as long as in this case agricultural research continues to be carried out In addition among the factors that AID has linked to the sustainability of development projects is the availability of host government financial resources to cover the projects operational costs The policy paper also states direct funding of some recurrent costs by USAID is only justifiable under fairly narrow conditions One of those conditions is that a carefully phased plan exists for shifting the entire recurrent cost burden to the host government Further AID recurrent cost policy states that it makes little sense to invest in programs that are predicated on a given level of recurrent financial support if that support is unlikely to be forthcoming

When Phase II of the project was initiated in 1988 with Amendment No 4 to the ProjectAgreement the issue of recurrent costs was considered of sufficient importance to add it as a special covenant That covenant required the GOU to develop and implement a recurrent cost plan beginning July 1 1989 that would phase out USAIDs funding of recurrent costs by the project completion date Further according to GOU and USAIDUganda officialskey implementing officials of the GOU have recognized that future success of the projectdepends on adequate funding by the GOU for various inputs and recurrent costs

No plan has been prepared by the GOU however for the shifting of the projects recurrent costs from AID to the GOU and AID continues to fund all recurrent costs of the projectFor example USAID was paying for routine maintenance of buildings and facilities that were rehabilitated under the project These costs included materials and services providedby the contractors that were hired to do some of the rehabilitation work under the project

7

as well as for salary supplements and incentives paid to GOU personnel involved in performing maintenance services

The problem has worsened because USAIDUganda has not effectively followed up on the requirement for a recurrent cost plan Thus USAIDUganda has in effect provided funding by default and further reduced the incentive for the GOU to comply with the special covenant of the project agreement

USAIDUgandawillprovidean estimatedtotalofestimated total of $13 million of recurrentcosts through the project completion date

Consequently without recurrent cost payments forthcoming from the GOU USAIDUganda will provide an estimated total of $13 million of recurrent costs through the projectcompletion date This estimate is based upon a March 1990 study of the projects building maintenance costs performed by a short-term contractor under the project and on the technical assistance (TA) contractors current year local currency budget which includes various recurrent costs of the project In addition to the building maintenance discussed earlier this $13 million consists of numerous research extension and training programs vehicle operational costs and several other minor cost categories

A requirement is already in place for a GOU recurrent cost plan We believe the GOU should be able by October 31 1991 to establish and begin implementing an acceptable plan to begin phasing in host country recurrent cost payments as required by the project agreement and AID policy After that date USAIDUganda should suspend all funding of recurrent costs until an acceptable recurrent cost plan is in place

Did USAIDUganda follow AID policies and procedures in the obligation earmarking a~ad expenditure of project funds

For the items tested USAIDUganda generally followed AID policies and procedures in the obligation earmarking and expenditure of project funds However USAIDUganda improperly used project funds to meet certain USAIDUganda operating expenses

AID authorized $249 million in life-of-project funding for the Manpower for Agricultural Development (MFAD) project Of this amount USAIDUganda had obligated $195 million

8

as of September 30 1990 USAIDUganda used the project agreement to obligate initial funds Additional amounts were obligated by project agreement amendments based on project needs The amounts obligated were properly committed to the project elements in accordance with project budget categories

We found that

(1) with the exceptions discussed below obligated project funds were properly used to fund activities in the project budget

(2) obligated funds were properly earmarked

(3) unearmarked balances were periodically reviewed

(4) fund balances were accurately recorded in USAIDUganda appropriation records and

(5) accruals were recorded on a quarterly basis

However USAIDUganda used some project funds to supplement its operating expense budget

Project Funds Were Used to Supplement USAIDJgandas Operating Expense Budget

AID policies and procedures require that costs of all general management support such as the mission motor pool be charged to the mission operating expense budget However USAIDUganda allocated some of its operating expenses to the MFAD project This occurred because USAIDUganda incorrectly interpreted AID Handbook guidance for allocating project and operating costs Consequently $201212 intended for project implementation was unavailable for project use

Recommendation No 2 We recommend that the Mission Director USAIDUganda

21 establish a cost allocation system that clarifies and emphasizes Handbook 19 Chapter 11 guidance for preparing and implementing USAIDUgandas budget

22 reimburse decommit and then reprogram $201212 of project funds spent or committed to meet USAIDUgandas operating expenses and

9

23 report internal control weaknesses associated with incorrectly charging general management support costs to the Assistant Administrator in the next annual Federal Managers Financial Integrity Act reporting cycle

AID Handbook 19 Chapter 11 Section B3 states that salaries and support costs of consultants contractors and all personnel engaged in Agency management are operating expenses Support services such as office space utilities mission motor pool and costs of contractors consultants and other personnel not exclusively engaged in project design implementation and evaluation are also identified as part of the missions operating expenses In addition Handbook 19 Chapter 11 section C states that the costs of personnel engaged in financial management program support services management support services program planning and budgeting functions are allocated to operating expenses

USAIDUganda obligated and committed $201212 of project flunds to meet its operatingexpenses

However USAIDUganda allocated salary and support costs of contractors involved in management support costs to the MFAD project Project funds were also used to procure a truck for the USAIDUganda motor pool As of September 30 1990 USAIDUganda had incorrectly obligated and committed $201212 of project funds to meet its operating expenses (see chart on next page) Of this amount $109195 had been disbursed and $92017 was still earmarked for such expenses These misallocated expenses included the following

$62345 was obligated to fund a personal services contract for an accountant The role of the accountant was to advise on fiscal and management considerations on local currency projects and participate in planning and maintaining the Missions local currency accounting systems and records As of the time of the audit $29728 of project funds had been spent on this contract This amount represents an operating expense of the USAIDUganda because the accountant is not exclusively working for the project

$69420 was obligated to fund a management services contract This individuals duties included serving as acting executive officer during absences of the USAIDUganda executive officer working closely with the general services office to ensure maintenance services and supplies are received in a timely manner and providing general support services for USAIDUganda A total of $53520 was disbursed for this contract as of the time of audit

10

$43500 was committed for support of contractors not exclusively working for the project according to Project Implementation Letter No 51 and financial records

$25947 was used to purchase a 5-ton truck for the general use of USAIDUganda The truck is a USAIDUganda motor pool vehicle and its use iscontrolled and assigned by the central motor pool unit just as any other operating expense-funded mission vehicle

OPERATING EXPENSES ALLOCATED TO PROJECT

Thousand $$ 280

201212200

180 _______________________________

100

80

0 Commitments Expenditures

Accountant Manaoement services support Mislon Truck

As of September 30 19g0

11

USAIDUganda allocated operating expenses to the project because it incorrectly interpreted Handbook 19 guidance for allocating project and operating costs Further USAIDUganda did not establish an effective internal control system to give reasonable assurance that AID policy for budgeting and allocating expenses was followed

Incorrect interpretation of Handbook guidance is evidenced by USAIDUgandas officials explanation of why the cited costs were paid out of project funds According to USAIDUganda officials personnel costs for the accountant were allocated to the project because the project uses some local currency USAIDUganda officials believed that the accountants costs can be allocated to projects that use local currency because the incumbent is in charge of all local currency-generating projects and programs such as the PL 480 food programs As regards the contract for management services USAIDUganda officials explained that the individual assists in maintenance of residences occupied by project personnel

USAIDUganda officials explanation shows that they misinterpreted the Handbook criteria for allocating costs Using this explanation of the basis for allocating costs it is conceivable that all personnel costs of USAIDUganda could be allocated to project costs Sections B and C of AID Handbook 19 Chapter 11 clearly distinguish what is or is not an operating expense We have thereby concluded that the items or activities discussed earlier are clearly operating expenses of USAIDUganda

Consequently $201212 originally intended for project implementation was unavailable for project use Funds used to meet the operating expense budget of USAIDUganda could have been used for project activities such as strengthening the projects extension component and reaching extension targets set out in project design documents By doing so the possibility of this projects long-term impact would have been increased

We believe that USAIDUganda should establish a system for ensuring that Handbook 19 guidance for allocation of costs is strictly followed In addition USAIDUganda should refund and re-program the MFAD project funds spent and committed on supplementing its operating expense budget The internal control weaknesses associated with these allocations of expenditures need to be reported to the Assistant Administrator in the next annual Federal Managers Financial Integrity Act reporting cycle

12

Did USAIDUganda follow AID procedures in obtaining necessary and eligible commodities and in monitoring for their (a) adequate accounting of receipt storage and use (b) effective and efficient use and (c) safeguarding against waste loss and misuse

For the items tested USAIDUganda generally followed AID procedures in obtaining necessary and eligible commodities However USAIDUganda did not adequately monitor the GOU and the technical assistance (TA) contractor to give reasonable assurance that commodities were (a) adequately accounted for as to their receipt storage and use (b) used effectively and efficiently and (c) safeguarded against waste loss and misuse

As of September 30 1990 AID obligated a total of nearly $4 million for purchasing project commodities As of that date over $29 million of that total were recorded as expenditures The University of Minnesota under a subcontractual arrangement with Ohio State University is responsible for major commodity procurement This includes personal computers educational materials laboratory equipment and supplies laboratory chemicals books and periodicals Other commodities for the project include farm tractors and equipment and rehabilitation materials Rehabilitation materials were to be purchased through a local procurement services agent in Nairobi Kenya All motor vehicles and household appliances for TA personnel are being purchased by USAIDUganda

We found that USAIDUganda adequately reviewed assessed and identified commodity needs and specifications Our review did not identify any ineligible or restricted commodities funded by AID However because of an inadequate monitoring system over commodity management we could not determine whether (1) all commodities ordered and paid for arrived in country (2) commodities delivered met required specifications and if not whether required action was taken and (3) commodities were used for intended purposes In addition we found that the commodity inventory control accounting system was inadequate and were unable to locate payment vouchers and receiving reports for some commodity purchases

USAIDUganda Did Not Establish An Adequate Commodity Monitoring System

AID offices are responsible for ensuring that a monitoring system is in place to give reasonable assurance that AID-financed commodities comply with the Agencys commodity procurement policies However USAIDUganda had not established an effective monitoring system to ensure that commodities were properly recorded upon receipt used effectively

13

and efficiently and safeguarded against waste loss and misuse This happened because USAIDUganda officials were unclear as to who was responsible for retaining a complete list of commodities who was responsible for commodity inspections and who was responsible for the recording use and disposition of commodities As a result AIDshyprocured commodities valued at over $29 million are subject to inefficient use loss or theft and abuse Further planned AID-funded procurement of commodities of at least $1044932 will be subject to the same ineffective monitoring and idle equipment valued at about $182734 will remain idle if a re-distribution plan is not developed and implemented Also two project vehicles valued at $25780 were never returned to the project by the former Serere Research Station Director Effective use and control of project commodities is essential for the successful implementation of the project


31 implement an internal control system which provides for commodity monitoring as called for in AID Handbook 15

32 suspend planned procurement ofAID-funded commodities of at least $1044932 until a system is designed and implemented for monitoring receipt use and disposition of commodities

33 develop and implement a re-distribution plan for laboratory equipment and other idle items of about $182734 at the research stations and the Ministry of Agriculture

34 recover two project vehicles never returned to the project by the former Serere Research Station Director or issue a bill for collection for $25780 and

35 report internal control weakness associated with commodity inventory and monitoring systems to the Assistant Administrator in the next annual Federal Managers Financial Integrity Act reporting cycle

According to AID Handbook 15 each USAID office is responsible for maintaining a current description of (a) the grantees commodity arrival and disposition system (b)USAIDs evaluation of the system and (c) the monitoring procedures established by the USAID office

14

The grantee is required to maintain a system of records documenting arrival and disposition of commodities financed by AID Chapter 10 of Handbook 15 requires that USAID offices monitor the grantees system to ensure that commodities financed by AID are effectivelyutilized The Handbook also requires that AID-funded commodities be used for intended purposes and be used within a prescribed time period usually one year To implement this policy the tchnical assistance contract required the contractor to submit an annual report on all non-expendable property detailing acquisitions disposal and balances of property on hand

As of the time of audit over $29 million worth of commodities had been procured and financial reports list $1044932 in planned procurement of additional commodities However the contractor had not submitted the required annual reports and neither USAIDUganda the GOU nor TA contractor officials could identify where all commodities were located This was because USAIDUgandas inventory records were incomplete and unreliable and the contractor had just started to establish an inventory control system--seven years after the project started

This system was being designed to track only large-value items though large-value was not defined In addition a perpetual inventory card system that was in use at the research stations was not effective because it tracked only a portion of delivered items Further movements of items between research stations were not recorded In one instance for example items destined for the Serere Research Station were taken to the Namulonge Research Station without being recorded as received at Namulonge

We also found related commodity management problems as follows

Commodities were not properly inspected upon receipt For example projectshyfunded laboratory commodities at the Kawanda Research Station and at the University of Makarere were delivered without necessary accessories with wrong voltage ratings or with factory defects

Commodities costing about $182734 were idle or excess to the projects shortshyterm needs

Commodities worth $59871 were unusable because they were either unserviceable or lacked necessary accessories

15

USAIDUganda had not implemented procedures to assure that commodities were safeguarded against loss abuse and misuse

Five motor vehicles costing about $70825 were stolen Information on these vehicles has been provided to the Office of The Regional Inspector General for InvestigationNairobi for possible investigation

Five motor vehicles costing about $59722 were misused including two worth $25780 that a former Serere Research Station Director refused to turn over and continued to use for non-official duties

USAIDUganda did not know whether parts which cost $1895 for a 5shyton truck procured in 1985 were ever delivered even though they were paid for

Commodities such as security lights vehicle spare parts and rehabilitation materials were lost

More information on the above problems is provided in Appendix III On the following pages are photographic examples

16

Figure 1 Spectrophotometer at the Faculty of Agriculture of Makerere University that cannot be used because it was delivered without necessary accessories

C

Figure 2 Excess bicycles in crates at the Namulonge Research Station The bicycles

were purchased for extension agents and field workers

17

-T-

Figure 3 Idle photocopier at Makerere University

Figure 4 Unserviceable power stabilizer at Makerere University

18

Figure 5 Unserviceable computer at Makerere University

Figure 6 Idle rehabilitation materials at Kawanda Research Station

19

The problems discussed above occurred because USAIDUganda relied upon the TA contractor and the GOU to track commodities without evaluating the contractors or the GOUs commodity management systems as required by AID Handbook 15 An evaluation of the system would have shown that neither the TA contractor nor the GOU had a system in place to track project commodities Contractor officials stated that it was not easy to establish a system because purchase orders and commitment documents are not always available to the contractor Thus it was difficult if not impossible to compare actual receipts against orders Further the system that the contractor recently initiated cannot identify cost of the procured items--a necessary feature of any inventory control system

USAIDUganda officials were unclear regarding who was responsible for

(a) retaining a complete record of procured commodities

(b) inspecting commodities

(c) recording receipts and

(d) disposing of commodities

In addition there were no trip reports to evidence that USAIDUganda officials made site visits (except for one recent trip) to test inventory records or inspect commodities Further USAIDUganda did not require the grantee or the contractor to send periodic reports on commodity purchases use and disposition for its review USAIDUganda officials noted that given the high security risk conditions during implementation of this project normal commodity control procedures were not always possible

over $375000 inproject commoditieswere specifically identified as idle lost or misused

Consequently AID-procured commodities valued at over $29 million are subject to inefficient use loss or theft and abuse As shown in Appendix III over $375000 in project commodities were specifically identified by the audit as idle lost or misused As the TA contractor had not established adequate commodity controls and USAIDUganda did not effectively monitor the project to give assistance in this area a significant and costly effort will now be required This effort is needed to reconstruct records spanning approximately

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seven years to provide an acceptable accounting for AID-funded commodities The monitoring system should reasonably assure that existing commodities are not subject to loss abuse and misuse Further the system should provide reasonable assurance that procured items are inspected used and accounted for as required by AID regulations If these corrections are not implemented then all internal control weaknesses discussed here and associated with USAIDUgandas commodity inventory control and monitoring systems need to be reported to the Assistant Administrator in the next annual Federal Managers Financial Integrity Act reporting cycle

Furthermore USAIDUganda should suspend planned procurement of additional commodities worth $1044932 until the recommended monitoring system is implemented In addition a re-distribution plan should be developed and implemented for the commodities--worth about $182734--which were idle at the research stations and at the Ministry of Agriculture Finally USAIDUganda should either recover the two project vehicles being used by the former Serere Research Station Director or issue a bill for collection for $25780 the cost of the vehicles

21

REPORT ON INTERNAL CONTROLS

This section provides a summary of our assessment of internal controls for the audit

objectives in our audit of USAIDUgandas Manpower for Agricultural Development Project

Scope of Our Internal Control Assessment

We conducted our audit in accordance with generally accepted government auditing standards which require that we (1) assess the applicable internal controls when necessary to satisfy the audit objectives and (2) report on the controls assessed the scope of our work and any significant weaknesses found during the audit

We limited our assessment of irternal controls to those controls applicable to the audits objectives and not to provide assurance on the auditees overall internal control structure

We have classified significant interral control policies and procedures applicable to the audit objectives by categories For each category we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation -- and we assessed control risk We have reported these categories as well as any significant weaknesses under the applicable section heading for each audit objective

General Background on Internal Controls

Recognizing the need to re-emphasize the importance of internal controls in the Federal Government Congress enacted the Federal Managers Financial Integrity Act (the Integrity Act) in September 1982 Under this Act and Office of Management and Budget implementing policies the management of AID including USAIDUganda is responsible for establishing and maintaining adequate internal controls Also the US General Accounting Office has issued Standards for Internal Controls in the Federal Government to be used by agencies in establishing and maintaining such controls

22

The objectives of internal controls and procedures for Federal foreign assistance are to provide management with reasonable --but not absolute -- assurance that resource use is consistent with laws regulations and policies resources are safeguarded against waste loss and misuse and reliable data is obtained maintained and fairly disclosed in reports

Because of inherent limitations in any internal control structure errors or irregularities may occur and not be detected Moreover predicting whether a system will work in the future is risky because (1) changes in conditions may require additional procedures or (2) the effectiveness of the design and operation of policies and procedures may deteriorate

Conclusions for Audit Objective No 1

The first audit objective was to gather and verify information the sources of which included USAIDUganda project implementation reports evaluation reports financial reports and interviews For this objective the categories of applicable internal controls and the reportable problems are covered under audit objective two


This objective concerned USAIDUgandas compliance with USAID policies and procedures for funding recurrent costs In planning and performing our audit of recurrent costs we considered the applicable internal control policies and procedures cited in AID Handbook 1 For the purposes of this report we have classified policies and procedures into the following category conditions precedent and covenants process

We noted one reportable condition relating to this process USAIDUganda did not enforce the project agreement covenant that required the development and implementation of a plan to phase out AID funding of recurrent costs


This objective concerned USAIDUgandas compliance with USAID policies and procedures for the obligation and expenditure of project funds In planning and performing our audit of obligation and disbursement procedures we considered applicable internal control policies and procedures in AID Handbook 19 for obligating allocating and using project funds For purposes of this report we have classified the relevant policies and procedures into the following categories obligation process expense allocation process and disbursement process

23

We noted one reportable condition relating to the expense allocation process

USAIDUganda allocated and used project funds to supplement its operating expense budget Project funds were used to pay salaries and procure commodities that according to AID Handbook 19 and allocation policy should be met from the mission operating expense budget


This objective concerned the procurement and use of project commodities In planning and performing our audit of these commodities we considered the applicable internal control policies and procedures cited in AID Handbook 15 For the purposes of this report we have classified the relevant policies and procedures into the following categories procurement planning process commodity inspection process commodity use and safeguarding process and commodity accounting process

We noted the following reportable conditions relating to the commodity procurement use and accounting processes

USAIDUganda did not follow established procedures in AID Handbook 15 for assessing the technical contractors and the Government of Ugandas (GOU) commodity accounting and control systems and

USAIDUganda did not monitor the technical contractors and the GOUs system for accounting for arrival receipt storage and use of commodities as required by AID Handbook 15

The above deficiencies in internal controls resulted in inadequate inspection misuse and loss of project commodities

24

REPORT ON COMPLIANCE

This section provides a summary of our conclusions on USAIDUgandas compliance with

applicable laws and regulations dealing with audit requirements

Scope of Our Compliance Assessment

We conducted our audit in accordance with generally accepted government auditing standards which require that we (1) assess compliance with applicable requirements of laws and regulations when necessary to satisfy the audit objectives (which includes designing the audit to provide reasonable assurance of detecting abuse or illegal acts that could significantly affect the audit objectives) and (2) report all significant instances of noncompliance and abuse and all indications or instances of illegal acts that could result in criminal prosecution that were found during or in connection with the audit

We tested USAIDUgandas compliance with the project agreement technical assistance contract and the Federal Managers Financial Integrity Act of 1982 as they relate to our audit objectives However our objective was not to provide an opinion on USAIDUgandas overall compliance or enforcement of such provisions

General Background on Complianc

Noncompliance is a failure to follow requirements or a violation of prohibitions contained in statutes regulations contracts grant and binding policies and procedures governing an organizations conduct Noncompliance constitutes an illegal act when there is a failure to follow requirements of laws or implementing regulations including intentional and unintentional noncompliance and criminal acts Noncompliance with internal control policiesand procedures in the AID Handbooks generally does not fit into this definition and is included in our report on internal controls Abuse is distinguished from noncompliance in that abusive conditions may not directly violate laws or regulations Abusive activities may be within the letter of the laws and regulations but violate either their spirit or the more general standards of impartial and ethical behavior Compliance with the project agreementtechnical assistance contract and Federal Managers Financial Integrity Act of 1982 is the overall responsibility of USAIDUgandas management

25

Conclusions on Compliance

The results of our test of compliance are summarized as follows

Audit Objective No 1 - The Government of Uganda (GOU) did not establish an extension and research linkage plan as required by Section 511 of Amendment Number 4 to the project agreement (see page 5)

Audit Objective No 2 - The GOU did not establish a recurrent cost )lan as required by Section 513 of Amendment Number 4 of the project agreement (see page 6)

Audit Objective No 4 - The technical assistance (TA) contractor did not comply with Section 18 of the general clause in the TA contract that requires the contractor to report annually on physical inventory of non-expendable property

Audit Objective No 4 - USAIDUganda did not comply with Section 2 of the Federal Managers Financial Integrity Act of 1982 that requires safeguards against unauthorized use of property

26

MANAGEMENT COMMENTS AND OUR EVALUATION

USAIDUganda partially agreed with the reports recommendations as follows

In response to Audit Objective No 1 (page 5) management submitted several documents approved by the Government of Uganda (GOU) after audit work was completed that outline the GOUs plans in the area of extension and researchextension linkages and adequately address the issues discussed under this audit objective

Concerning Recommendation No 1 (page 7) management agreed that the GOU should establish a recurrent cost plan but did not concur with the recommendation to suspend funding for these costs Management believes that suspension of funding at this time would stop important needed maintenance activities and not be in the interest of project objective achievement Management states that a consultant is in Uganda and assisting in the development of a recurrent cost plan and that discussions on this issue have been held with Ugandan officials As an alternative recommendation management suggests it issue a project implementation letter giving the GOU until October 1991 to submit a recurrent cost plan If no plan is provided USAIDUganda can cease recurrent cost funding as it considers appropriate

Concerning Recommendation No 2 (pages 9 and 10) management stated that it is currently implementing a definitive contractor logistical support cost allocation system which will meet the requirements of Handbook 19 Chapter 11 and will facilitate more definitive accounting for charge-outs to projects Supplemental guidance expected from AIDWashington will also be used in establishing this system (Recommendation 21) Management also agreed to report outstanding internal control weaknesses in this area in the next annual Federal Managers Financial Integrity Act reporting cycle (Recommendation 23) However management did not agree with the recommendation to reimburse decommit and reprogram $201212 in project funds spent or committed to meet mission operating expenses (Recommendation 22) Management states that operating expenses used to provide logistical support to the project since 1983 are far in excess of the $201212 cited in the report and that it would not be cost effective to implement a retroactive cost collection and charge out

27

system for these costs Management also states that $25000 of the $201212 were project expenses

Concerning Recommendation No 3 (page 14) management agreed to re-distribute idle equipment (Recommendation 33) and report outstanding internal control weaknesses in this area in the next annual Federal Managers Financial Integrity Act reporting cycle (Recommendation 35) In addition the vehicles cited in Recommendation 34 have been returned to the project However management does not believe its commodity monitoring is a weakness and stated that the limited dollar value of the audit finding may not justify the implementation of an internal commodity monitoring system (Recommendation 31) Management agreed to perform a cost benefit analysis of the recommendation and report the results to the IG by August 1991 Management also did not agree with Recommendation 32 to suspend planned procurement of commodities until an adequate monitoring system was developed Management temporarily suspended procurement in November 1990 to review the audit findings and is monitoring requests for commodities on a case by case basis Management also states that further programmed procurements only total $524000 rather than $1044932

We appreciate USAIDUgandas comments On the basis of these comments we consider Recommendation Nos 34 and 35 to be closed Also based on these comments we consider Recommendation Nos 21 and 33 as resolved These recommendations can be closed upon receipt of evidence that a cost allocation system has been implemented and that idle equipment has been redistributed Our evaluation of managements response to the remaining recommendations follows

Concerning Recommendation No 1we have reworded the recommendation to give the GOU until October 31 1991 - 8 years after the project began - to submit a recurrent cost plan USAIDUganda has made extensive efforts without success to get the GOU to establish a plan to phase in GOU funding for these costs and it is our opinion that suspending funding for recurrent costs is the only appropriate action to take in these circumstances Project accomplishments can not be sustained if the GOU is unwilling to fund recurrent costs and any adverse impact this action may have on the project would occur in two years anyway with the completion of the project

Concerning Recommendation No 22 management has not addressed the issue of program funds that have been spent or committed to support USAIDUgandas operating expenses The items totaling $201212 we identified in this report are clearly described in Handbook 19 as mission operating expenses None of these

28

items are FAAS or guard service costs as stated in managements response USAIDUganda should not dismiss the recommendation by claiming a similar offsetting error was made when it did not charge the project for certain operating costs

Concerning Recommendation Nos 31 and 32 we continue to believe that USAIDUganda should implement an internal commodity monitoring system as required by AID Handbook 15 We do not accept USAIDUgandas contentions that (1) the inability of the TA contractor and the GOU to track project commodities is not an internal control weakness and (2) establishing a commodity monitoring system for $29 million in commodities is not economically justified We also continue to believe that additional commodities should not be procured until an effective commodity monitoring system has been established to control the existing inventory of commodities Our figure of $1044932 in planned procurement of additional commodities isbased on items specifically identified as commodities (under the commodities and other costs elements) in AIDs Mission Accounting and Control System (MACS) These recommendations can be closed when USAIDUganda provides evidence that it is implementing an internal commodity monitoring system

29

APPENDIX I

SCOPE AND METHODOLOGY

Scope

We audited USAIDUgandas Manpower for Agricultural Development Project in accordance with generally accepted government auditing standards Our audit was conducted from August 20 1990 through October 19 1990 and covered obligations of $195 million and incurred expenditures of about $155 million The audit covered systems and procedures relating to project inputs from August 26 1983 the project inception date through October 19 1990 Our audit work was conducted in the offices of USAIDUganda the contractors at the Government of Uganda (GOU) at various agricultural research stations and at the University of Makerere

The audit did not cover the following areas

The audit did not include an in-depth examination of outputs for the first phase of the project The audit was concerned with the projects progress in relation to its overall outputs The audit work for the first phase was limited in that all AID officials familiar with the project were new to their positions and documents available to us could not provide all details necessary for an in-depth examination

The audit did not include an examination of the contract award process The project used contractors and sub-contractors for rehabilitation and for partial procurement of project commodities In addition we did not perform work to determine whether commodity shipments met delivery service requirements or whether commodities were obtained at reasonable prices We did not determine the contractors pricing and payment process nor did we establish whether the contractors performed efficiently effectively and in a timely manner

30

The audit did not determine whether the technical assistant (TA) contractors billings were appropriate and included all eligible and allowable costs This was due to the fact that the contractors billing is through AIDWashington and amounts are posted into USAIDUgandas accounting systems through Advices of Charge These Advices of Charge do not provide detailed information needed to audit eligible and allowable costs

In regard to training the audit did not review the participant selection and monitoring process Audit coverage was limited to determination of whether candidates have been identified for training as required by the project agreement

The audit did ot include a review of detailed documentation supporting expenditure of funds such as invoices and time cards

Methodology

The methodology for each audit objective follows

Audit Objective One

The first audit objective consisted of gathering and verifying information to determine

the status of the project in achieving targeted outputs and

the status in providing for long-term impact

We reviewed and verified findings of November 1987 and August 1990 evaluation reportsWe examined project implementation reports TA contractor progress reports and plans Regional Engineers trip reports minutes of implementation progress meetings financial reports and short-term contractor reports on maintenance and rehabilitation We also attended a meeting that was held by the August 1990 project evaluation team for the purpose of reviewing their project evaluation draft report with all key implementing officials In addition we conducted interviews with USAIDUganda officials GOU officials TA contractor team members Makerere University officials farmers and extension agents We also visited all sites (except the Serere Research Station) benefitting directly from the project Further we visited farmer demonstration plots to help make our assessment of the extension efforts of the project

31

Audit Objective Two

In order to accomplish audit objective two we reviewed the project agreement and associated amendments and discussed with USAIDUganda officials their efforts to achieve compliance with AID recurrent cost policies We also reviewed a short-term contractors 1990 study of the projects building maintenance costs and the TA contractors current yearlocal currency budget to determine the level of recurrent costs currently being paid by AID

Audit Objective Three

Audit objective three consisted of gathering and verifying information to determine whether

USAIDUganda followed AID policies and procedures in the obligation and expenditure of project funds

payments made by USAIDUganda were authorized and made according to commitment documents

obligations and expenditures were properly recorded

expenditures did not exceed obligations and

obligated funds were properly allocated and spent on project-related activities

In order to accomplish the objective we examined the project agreement and related amendments--the obligating documents--to ensure that obligated funds did not exceed authorized project funding We examined a judgmental sample of commitment documents earmarking documents vouchers accrual records and commodity supplier and services contracts to determine whether documents were properly recorded in the financial records of the project We also examined the projects commitment liquidation recordscomprehensive pipeline reports Section 1311 Analysis Reports of unliquidated commitments to determine whether funds were properly allocated among the various project elements

The audit included appropriate tests of supporting records and reports including review of existing TA contractor and GOU accounting systems

In reviewing payments we scrutinized the commitments and disbursements included in the commitment liquidation records We obtained all necessary documents supporting unusual commitments and disbursements We also examined vouchers to determine whether they were administratively approved certified for payment and appropriately recorded

32

Discussions were also held with USAIDUganda and TA contractor officials

Audit Objective Four

In order to accomplish audit objective four we determined whether

commodity needs and specifications were adequately reviewed and assessed

amp AID funds were used to procure eligible and unrestricted commodities

0 ordered commodities were received in accordance with purchase specifications

bull commodities were properly stored

bull commodities were used efficiently effectively and for intended purposes and

0 commodities were properly recorded and accounted for

To establish the above we examined the procurement plan included in the project paperwaivers commodity procurement contracts project implementation reports and the project agreement We also reviewed USAIDUganda commitment liquidation records and the TA contractors inventory records All payment vouchers and receiving reports for commodities that could be located were examined but in some cases these documents could not be located as discussed in the audit finding

During the audit we visited three of four research centers the Makerere Universitys Faculty of Agriculture the Ministry of Agriculture and the technical contractors to establish whether commodities in these locations were being efficiently and appropriately used and recorded We examined the warehousestores records for each of the field sites we visited and a physical inventory report for one of the research stations During field visits we tested the accuracy of recording systems by randomly selecting items from the floor and reconcilingthem with the records and vice versa We also interviewed responsible GOU contractor and USAIDUganda personnel who explained the project commodity records system and provided information concerning commodity status

33

Commodities totalling over $375000 that were specifically identified as lost idle or misused were determined neither from a judgmental or scientific sample Rather as records were not detailed enough to select such sampling methods the amount was derived from on-site observations and inquiries and from examination of records that were available at those sites as well as from USAIDUganda and the TA contractor

34

UNITED STATES OF AMERICA APPENDIX IIAGENCY FOR INTERNATIONAL DEVELOPMENT

USAID MISSION TO UGANDA

UNITED STATES POSTAL ADDRESS INTERNATIONAL POSTAL ADDRESS USAIDKAMPALA P 0 BOX 7007 AGENCY FOR INTERNATIONAL DEVELOPMENT R 3Ci D KAMPALA UGANDA WASHINGTON DC 20520

May 20 199121 NI 1991 Mr N Greene rARIGA ANtaU9 REDSO -

Nairobi

Dear Mr Greene

SUBJECT Draft Report of Uganda Audit Manpower for Agricultural Development Project 617-0103

The following constitutes USAIDKampalas response to the subject draft audit report The Mission requests that this letter be placed in the Executive Summary of the report rather than in the appendices section

USAIDUganda is satisfied at the excellent progress being made in achieving project outputs to-date Full achievement of these outputs is expected by the end of the project in 1993and is dependent on the continuation of political stability and Government of Uganda reform The Mission is also encouragedthat in some instances project activities are being taken-upby other donor agencies notably the World Bank This new and broader focus of other donors is a result of the catalitic activities initiated under the MFAD project

USAIDKampala finds nothing in project implementation to suggest that relatively low priority was placed on extension Yet on page 13 of the Auditors report the Mission is quoted as recognizing this as a fact The research beingdone is actually adaptive research Adaptive research seeks practical solutions to problems of a specific nature This requires on-farm testing to test varieties under the same conditions that exist on cooperating farmers fields

The number of farmers working directly with extension agents is only a partial indication of the total number of farmers beingreached Each cooperating farmer serves as an example for 10 to 20 neighboring farmers living in the area Other farmers in turn observe and follow the example of their innovative neighbors and the cycle continues The effect has to be measured by the number of the farmers ho learn from the cooperating farmers The Mission is confident that the spread effect reaches far beyond the cooperating farmers fields and this position was supported by the MFAD mid-project evaluation team This team consisted of highly qualified and experienced technical agriculturalists that spent two weeks of field visits versus the one day the non-agricultural experiencedauditors spent in the field

35

-2 -

Several documents have been approved by the GOU within the pastfew weeks which outline the GOU plans for both research and extension These documents were not available during the auditors visit One of these entitled Government of UgandaAgricultural Policy Committee Volume I shows that substantial progress is being made in the area of extension and researchextension linkages Please refer to pages v-ix and pages 77 - 93 of attachment I for further supportive details

It is regrettable considering the cost and time required of the Mission and RIG Auditors that this audit was not more management useful As we understand the auditors were attempting to take on a new role in program auditingUSAIDKampala suggests that future audits of this style be re-examined with full consideration being given to Mission opinions and concern for management needs

Recommendation No 1

We recommend that the Mission Director USAIDUganda

11 More clearly define the role that the extension componentis to play in stimulating the agricultural production of the small farmer

12 Define what constitutes appropriate training of extension personnel

13 Implement a system to assure that the Government of Ugandaputs in place its first annual research and extension linkage plan by July 1 1991

Response

The Ministry of Agriculture Working Group on Extension(See Attachment I) has completed its report which defines and addresses the issue of extension on a national level

USAIDUganda Recommendation

We recommend that this recommendation be closed The Mission will continue to work with other donors and MFAD to improve extension in Uganda

36

-3 -

Recommendation No 2


21 Require that the Government of Uganda provides the recurrent cost plan called for by the project agreementand that such plan is implemented by July 11991 and ifsuch a plan is not implemented by that date suspend all recurrent cost funding for the project until an acceptable plan is implemented

Response

The Mission agrees with the recommendation that the GOUestablish a recurrent cost plan We do not concur withthe recommendation to suspend all recurrent cost fundingfor the project until an acceptable plan is implementedSuspension of funding at this time would stop importantneeded maintenance activities and not be in the interest of project objective achievement

A consultant is in-country and assisting with thedevelopment of this plan In addition discussions have been held with Ugandan counterparts reminding them of the urgency and importance in budgeting recurrent costs in this years national budget

USAIDUgandas Recommendation

USAID issue a PIL providing that the GOU be given untilOctober 1991 to submit a recurrent cost plan If no plan is provided then cease recurrent cost funding as USAID considers appropriate

22 Implement a system to ensure that USAIDUganda complieswith AID recurrent cost policy

Response

The Mission feels it is in compliance We could concurwith the auditors recommendation if a clear AID policydefinition was available The Mission has consistentlyurged the GOU to fund recurrent costs and it has been inthe Ministries Annual Budget requests Consideringother key economic problems in Uganda the Mission does not see this as an issue to stop the project Further guidance from AIDW on definition of this issue might beappropriate if RIG considers this a major policy issue USAID will continue to monitor and urge GOU as appropriate


This recommendation be closed

37

-4 -

Recommendation No 3


31 Issue a Mission Order clarifying and re-emphasizingHandbook 19 Chapter 12 guidance for preparing and implementing the Mission budget

Response

USAIDUganda concurs and awaits guidance of AIDW We understand AIDW is in the process of assisting in clarifying procedures for USAIDs to better account and charge out the true costs to provide logistical support to contractors

32 Reimburse decommit and then reprogram $201212 of project funds spent or committed to meet the Missions operating expenses

Response

USAID disagrees with 32 The actual use of OE funds to provide logistical support to the MFAD project since project inception in 1983 properly chargeable to the project and never charged out is believed to be far in excess of this $201212 Also $25000 of the $201212is clearly project identified expenses (FAAS and guardservice costs)

USAIDUganda is currently implementing a definitive contractor Logistical Support Cost Allocation SystemThis system will be fully documented and will meet the requirements of Handbook 19 Chapter 11 and will include supplemental guidance expected from AIDWashington This system will facilitate much more definitive accounting for charge-outs to projects

Current cost estimates for providing FY 1991 logisticalsupport to two MFAD contractors for the first half of the fiscal year and to ten MFAD long term contractors for the second half of the fiscal year is estimated to be $145000 It can be seen from this that supportcosts are material USAID does not believe it is cost beneficial to the USG to implement a retroactive cost collection and charge out system for logistical supportprovided to MFAD and never billed out for fiscal years1983-1990



38

-5 shy

33 Report any outstanding internal control weakness to the Assistant Administrator in the next annual Federal Managers Financial Integrity Act reporting cycle

Response

USAIDUganda concurs

41 Implement an internal system which provides for commodity monitoring as called for in AID Handbook 15

Response

The Mission vulnerability project monitoring and assessment did not see this as a weakness Based uponthe limited dollar value of audit findings it may not be economically justified We will howeverinvestigate this further and will analyze the practicability of the recommendation on a cost benefit basis


USAIDOganda will do a cost benefit analysis of the recommendation and report to RIG in August 1991 its find ings

42 Suspend planned procurement of AID-funded commodities of at least $1044932 until a system is designed and implemented for monitoring receipt use and disposition of commodities

Response

We do not concur with this recommendation However based upon the Auditors recommendation USAID temporarily suspended procurement in November 1990 and reviewed the Auditors findings USAIDUganda will continue to review MFAD requests on a case by caseindividual basis For the record less than $524000 rather than $1044932 as noted by auditors is programmed for further procurement under this project


Based upon the analysis as suggested in 41 we will implement the recommendation if this is practical from a cost benefit point of view

43 Develop and implement a re-distribution plan for laboratory equipment and other idle items of about $183000 at the Research Stations and the Ministry of Agriculture

39

-6 -

Response

We concur The majority of the items have been re-distributed except for the items at Serere Research Station which is in an insecure zone USAIDKampala is satisfied with the re-distribution and usiqe The few items remaining will be closely monitored



44 Issue a bill of collection to the former Serere Research Station Director for $25780 the cost of vehicles in his use

Response

USAIDUganda understands and supports that the Auditors have closed this recommendation



Mission concurs since this is the same recommendation as 33

Thank you for your continued assistance

Acting Mission Director

40

APPENDIX III

COMMODITY MANAGEMENT PROBLEMS

1 Commodities were not properly inspected upon receipt For example we noted that at the Kawanda Research Station and at Makerere University project-funded laboratory commodities were delivered (a) without necessary accessories (b) with wrong voltage ratings and (c) with factory defects These items included solar regulators a sterilizer an electronic balance a projector and a mill Since no inspection was made when they were delivered it is not possible to establish whether necessary accessories were lost by transporters or were never shipped at all

2 USAIDUganda did not have an effective system in place to assure the effective efficient and timely use of project commodities Listed on the following page are various idle and excess commodities which cost about $182734 For example in one case a computer was allocated to the Ministry of Agriculture (MOA) where it was not being optimally used while in another case three photocopiers were allocated to the Faculty of Agriculture of Makerere University where one would have been enoughMission management stated that the Serere Research Station was in an insecure zone As a result commodities at this location cannot be redistributed until the situation stabilizes

41

IDLE AND EXCESS COMMODITIES

Description Location Value

Lab equipment Kawanda $50000 Incubator Kawanda 3616 Incubator Namulonge 3616 Photocopiers (2) Makerere University 25802 Bicycles Namulonge 12300 Computer MOA Entebbe 10000 Ford truck Reg UA0414 Serere $7700 Ford truck Reg UA0598 Serere 7700 Farm tractor Serere 62000 Plow Serere Appliances for 3 houses Serere Water pump Serere Generator Serere

Total $182734

In the table above all commodities except the Ford trucks were estimated to have a total value of $62000 and thus are included in the farm tractor line item

3 Commodities valued at about $59871 were unusable because they were either

unserviceable or lacked necessary accesories Details by location and value follow

UNUSABLEUNSERVICEABLE COMMODITIES


Spectrophotometer Kawanda $15000 Xerox typewriters Makerere University 9871 Computer Makerere University 10000 Power Stabilizer Makerere University 10000 Spectrophotometer Makerere University 15000

Total $59871

42

4 During our site visits we noted various rehabilitation materials laboratory equipment and chemicals which were unused for long periods of time We could not determine the value of these particular items because of the inadequate records available

5 In still another area of commodity management we found that USAIDUganda had not implemented procedures to assure commodities are safeguarded against loss abuse and misuse AID spent about $70825 on five motor vehicles which were stolen while another five vehicles which cost about $59722 were misused In one instance for example an ex-employee of the project refused to turn over two project vehicles costing $25780 and continued to use them for non-official duties As of the time of audit field work these vehicles had not been returned to the project even though USAIDUganda had requested their return Details by vehicle follow

STOLEN AND MISUSED VEHICLES

STOLEN

Description Reg No Value

Ford 10-ton truck UA0568 $28500 Pajero UA0573 11250 Ford pick-up UA0930 13625 Pajero UXY0102 9750 Ford pick-up UXX0377 7700

Total $70825

MISUSED

Minibus UA0617 $12280 Minibus UA0671 13500 Pajero UA0586 9750 Lancer UA0616 10192 Pajero UE0592 14000

Total $59722

43

6 Besides project vehicles other commodities including security lights vehicle spare parts rehabilitation materials and numerous other items were lost The significance of these losses becomes even greater when considering the fact that USAIDUganda had no knowledge of a recent physical inventory at Namulonge that identified several losses

7 USAIDUganda did not know whether parts which cost $1895 for a 5-ton truck procured in 1985 were ever delivered even though they were paid for

SUMMARY

Description Value

1 Not improperly inspected NA 2 Idleexcess $182734 3 Unusableunserviceable 59871 4 Unused (inadequate records) 5 (a) Stolen vehicles 70825

(b) Misused vehicles 59722 6 Lost (inadequate records) 7 Parts unknown as to delivery 1895

Total $375047

Although numerous commodities are involved values could not be determined because of inadequate records

44

APPENDIX IV

REPORT DISTRIBUTION

American Ambassador to Uganda Mission Director USAIDUganda AAAFR AFREATU AFRCONT AAXA XAPR AALEG GC AAMS PFMFMFS SAASampT PPCCDIE MSMO REDSOESA REDSORFMC REDSOLibrary IG AIGA DAIGA IGAPPO IGLC IGRM AIGI RIGIN IGAPSA IGAFA RIGAC RIGND RIGAM RIGAS RIGArT

1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

UNITED STATES OF AMERICA AGENCY FOR INTERNATIONAL DEVELOPMENT

REGIONAL INSPECTOR GENERALAUDIT

UNITED STATES POSTAL ADDRESS INTERNATIONAL POSTAL ADDRESSBOX 232 POST OFFICE BOX 30261APO NY 09675 NAIROBI KENYA

July 19 1991

MEMORANDUM

TO Keith W Sherper Director USAIDUganda

FROM Toby L Jarman RIGANairobi 4 (7 SUBJECT Audit of Uganda Manpower for Agricultural Development

Project No 617-0103

Enclosed are five copies of our audit report number 3-617-91-10 on the subject audit

We reviewed your comments on the draft report and included them as an appendix to this report Based on the actions taken by the Mission Recommendation Nos 34 and 35 with estimated procedural and efficiency savings of $25780 are closed Recommendation Nos 21 and 33 are resolved and can be closed upon receipt of evidence showing that the actions cited have been implemented Recummendation Nos 1 31 and 32 will be resolved when we obtain your agreement to take the corrective action cited in each of those recommendations In addition Recommendation No 22 remains unresolved as you have not concurred with the estimated efficiency savings of $201212

I appreciate the cooperation and courtesies extended to my staff during the audit







i




ii

Table of Contents

Page

EXECUTIVE SUMMARY

INTRODUCTION

Background

Audit Objectives 3








Pagze










Background


(a)

(b)






1



Million $$ 256

195 20

553

15

102

5 208 17 095


Budget Categories



2

Audit Objectives












3





Bangh~zi N Kwat


We QATAR


AOMAN



1 jD O BISSAU








Gu I aville BURUNDI





ZAMBIA I BIuNacala


ZIMBABWE Eir



Maer SWAZILAND

4051 ADurban 154147 4





lyauthoultii not n

801514 (54 714 7) 490








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45







i




ii

Table of Contents

Page

EXECUTIVE SUMMARY

INTRODUCTION

Background

Audit Objectives 3








Pagze










Background


(a)

(b)






1



Million $$ 256

195 20

553

15

102

5 208 17 095


Budget Categories



2

Audit Objectives












3





Bangh~zi N Kwat


We QATAR


AOMAN



1 jD O BISSAU








Gu I aville BURUNDI





ZAMBIA I BIuNacala


ZIMBABWE Eir



Maer SWAZILAND

4051 ADurban 154147 4





lyauthoultii not n

801514 (54 714 7) 490








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45




ii

Table of Contents

Page

EXECUTIVE SUMMARY

INTRODUCTION

Background

Audit Objectives 3








Pagze










Background


(a)

(b)






1



Million $$ 256

195 20

553

15

102

5 208 17 095


Budget Categories



2

Audit Objectives












3





Bangh~zi N Kwat


We QATAR


AOMAN



1 jD O BISSAU








Gu I aville BURUNDI





ZAMBIA I BIuNacala


ZIMBABWE Eir



Maer SWAZILAND

4051 ADurban 154147 4





lyauthoultii not n

801514 (54 714 7) 490








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

Table of Contents

Page

EXECUTIVE SUMMARY

INTRODUCTION

Background

Audit Objectives 3








Pagze










Background


(a)

(b)






1



Million $$ 256

195 20

553

15

102

5 208 17 095


Budget Categories



2

Audit Objectives












3





Bangh~zi N Kwat


We QATAR


AOMAN



1 jD O BISSAU








Gu I aville BURUNDI





ZAMBIA I BIuNacala


ZIMBABWE Eir



Maer SWAZILAND

4051 ADurban 154147 4





lyauthoultii not n

801514 (54 714 7) 490








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

Pagze










Background


(a)

(b)






1



Million $$ 256

195 20

553

15

102

5 208 17 095


Budget Categories



2

Audit Objectives












3





Bangh~zi N Kwat


We QATAR


AOMAN



1 jD O BISSAU








Gu I aville BURUNDI





ZAMBIA I BIuNacala


ZIMBABWE Eir



Maer SWAZILAND

4051 ADurban 154147 4





lyauthoultii not n

801514 (54 714 7) 490








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

Background


(a)

(b)






1



Million $$ 256

195 20

553

15

102

5 208 17 095


Budget Categories



2

Audit Objectives












3





Bangh~zi N Kwat


We QATAR


AOMAN



1 jD O BISSAU








Gu I aville BURUNDI





ZAMBIA I BIuNacala


ZIMBABWE Eir



Maer SWAZILAND

4051 ADurban 154147 4





lyauthoultii not n

801514 (54 714 7) 490








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45



Million $$ 256

195 20

553

15

102

5 208 17 095


Budget Categories



2

Audit Objectives












3





Bangh~zi N Kwat


We QATAR


AOMAN



1 jD O BISSAU








Gu I aville BURUNDI





ZAMBIA I BIuNacala


ZIMBABWE Eir



Maer SWAZILAND

4051 ADurban 154147 4





lyauthoultii not n

801514 (54 714 7) 490








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

Audit Objectives












3





Bangh~zi N Kwat


We QATAR


AOMAN



1 jD O BISSAU








Gu I aville BURUNDI





ZAMBIA I BIuNacala


ZIMBABWE Eir



Maer SWAZILAND

4051 ADurban 154147 4





lyauthoultii not n

801514 (54 714 7) 490








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45





Bangh~zi N Kwat


We QATAR


AOMAN



1 jD O BISSAU








Gu I aville BURUNDI





ZAMBIA I BIuNacala


ZIMBABWE Eir



Maer SWAZILAND

4051 ADurban 154147 4





lyauthoultii not n

801514 (54 714 7) 490








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45








5









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45









6






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45






7









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45









8


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45


We found that












9







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45







10




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45




Thousand $$ 280

201212200

180 _______________________________

100

80




11






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45






12







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45







13









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45









14








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45








15







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45







16


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45


C



17

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

-T-



18



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45



19










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45










20



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45



21










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45










22










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45










23









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45









24









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45









25







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45







26






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45






27






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45






28



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45



29

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

APPENDIX I


Scope





30




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45




Methodology


Audit Objective One





31

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

Audit Objective Two












32












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45












33


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45


34





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45





Nairobi

Dear Mr Greene






35

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

-2 -



Recommendation No 1





Response




36

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

-3 -

Recommendation No 2



Response






Response




37

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

-4 -

Recommendation No 3



Response



Response






38

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

-5 shy


Response

USAIDUganda concurs


Response





Response





39

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

-6 -

Response





Response







40

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

APPENDIX III




41




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45




Total $182734







Total $59871

42




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45




STOLEN



Total $70825

MISUSED


Total $59722

43



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45



SUMMARY

Description Value



Total $375047


44

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

APPENDIX IV

REPORT DISTRIBUTION


1 5 1 1 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 1 2 1

12 1 1 1 1 1 1 1 1 1

45

Documents

Audit of Uganda Manpower for Agricultural Development ...pdf.usaid.gov/pdf_docs/PDABD027.pdf · Y-//J&/ - 397 Audit of Uganda Manpower for Agricultural Development Project No. 617-0103