USAID OIG Afghanistan and Pakistan Oversight Report, April-June ...

assessments of potential first-time recipients. The intent of these assessments is to determine whether therecipients can effectively manage and account for these funds.OIG’s audit on USAID/Pakistan’s management of preaward assessments found that mission’s preawardprocess provided a reasonable basis for identifying significant financial management vulnerabilities;however, the audit noted weaknesses in the mission’s management of the preaward process. The missiondid not prioritize or follow up on significant vulnerabilities identified in assessments. Of the 28 assessmentreports completed during fiscal year 2010, the 8 selected for testing noted over 250 weaknesses in thepotential recipients’ ability to manage funds properly. The mission included 55 of the reported weaknessesin the recipients’ agreements and stipulated that the weaknesses should be adequately addressed before orafter the initial disbursement of funds. The mission did not include or otherwise address the remaining 195weaknesses because it did not have a comprehensive plan for prioritizing and determining which of the 250weaknesses should or should not be prioritized.Many weaknesses resulted from the mission not including in the recipients’ agreements information on therecipients’ payment mechanisms and systems for procurement, accounting and overall monitoring andassessment.Audit of USAID/Pakistan’s Flood Relief Efforts as Administered by Local NongovernmentalOrganizations (Report No. G-391-11-003-P, January 24, 2011)Heavy rainfall in multiple regions of Pakistan led to devastating flooding in July 2010. The flooding affected82 of Pakistan’s 122 districts and displaced 12 million people, half of whom required humanitarianassistance.USAID/Pakistan committed $10 million for emergency flood relief efforts through cooperative agreements.Five million dollars was awarded to two Pakistani NGOs: the Pakistan Poverty Alleviation Fund (PPAF) andRural Support Programmes Network.The two NGOs were to provide immediate relief in the provinces of Balochistan, Punjab, Sindh, and KhyberPakhtunkhwa in the form of food hampers and hygiene kits, and medical supplies to an affected populationof 190,058 people.OIG conducted this audit to determine whether USAID/Pakistan’s flood relief efforts were meeting theimmediate needs of the flood victims. To answer the audit objective, we reviewed mission documentationrelated to managing and monitoring the program, including implementation plans, implementing partneragreements, performance measures, and performance results.Auditors found that USAID/Pakistan’s implementing partners delivered food hampers, hygiene kits, andmedical supplies to meet the immediate needs of the flood victims. As of November 15, 2010, the twoimplementers reported distributing food and hygiene kits to 80,098 households and administering medicalsupplies and treatment to an affected population of 159,620 people and 307,116 livestock.Auditors observed that PPAF issued food hampers and hygiene kit tokens to each household. PPAFestablished separate teams for token registration, token distribution, and distribution of the relief items. InUSAID OIG Afghanistan and Pakistan Oversight Report 91