Hi Luiz. Below is my friend's - Mr. Bambang Samekto - explanation. Just skip the Indonesian Paragraph. I hope his explanation will suit your needs. Cheers Sherry Suryantie -----Original Message----- From: Bambang Samekto [mailto:[EMAIL PROTECTED]] Sent: Thursday, January 18, 2001 10:06 AM To: [EMAIL PROTECTED] Subject: re: audit Hi Sherry, Maaf. Saya butuh waktu untuk memformulasikan jawaban yang diperlukan teman di Brazil. Berikut ini jawaban saya atas pertanyaan teman tersebut. tentu saja, methode yang saya ajukan ini sangat relative sesuai dengan kebutuhan dan keadaan dari proyek tersebut. Untuk uraian lebih jauh mengenai methode-methode ini akan membutuhkan waktu, pikiran dan tenaga yang banyak. Oleh karena itu, saya hanya menyampaikan hal-hal yang pokok saja. Saya yakin teman-teman di Brazil juga tahu mengenai methode-methode ini. Mudah-mudahan jawaban ini yang mereka perlukan. Terima kasih. -------------------------------------------------------- So, there are two aspects that will be examined/audit: 1. Financial legal aspects of the program/project 2. Program/Project performance Financial legal aspects: There are three principles used in conducting financial audit: a. Allowable costs. Project money can only be used to pay for services or purchase goods that allowed by the existing local government or donor agency laws, regulations and guidance. For example, USAID money cannot be used to pay per diem of training participants who join training conducted in the same city of the participant's resident. b. Allocable costs. Project money can only be used to pay for services or purchase goods that stated, listed or planned and mutually agreed in the project budget. For example, the fund cannot be used to buy equipment or pay for services that are not listed in the budget plan. c. Reasonable costs. All cost must be reasonable. Price of services or equipment has to be comparable with market price. Project management must be careful in providing or deciding approval for payment of the services or equipment. For example, in order to get good and reasonable price of a computer, project coordinator will request bids from at least three vendors. The project coordinator will use existing market price as general guide before deciding winner of the bids. So, the auditor should follow these principle carefully. All expenses that are not in line with these principles will be considered as fraudulence. Project performance: In most cases there is no straightforward method being used to analyze or assess how project money is impacting the quality of health service. While there are some methods can be used to measure quality of health service, all stakeholders (donor agency, implementing or cooperating agency and local government/counterpart) should carefully discuss and agree in advance on the method(s) will be used for measuring project results. The simple way to assess project performance is comparing the project objectives and outputs as stated in the project proposal and the real situation after the project is being or has been implemented. The assessment can be conducted one year after the project implemented, at mid or end of project life. However, the reality is not as easy as this statement. A good project should have specific, measurable, achievable, reasonable and time-bounded objectives. These objectives will usually be broken down to more specific outputs. In order to facilitate the consultant who will conduct the analysis, the project should have also baseline data and performance indicators. Project objectives and outputs, use of base line data and performance indicators, plan of activities should be discussed carefully and agreed upon in advance by all project stake holders (donor agency, implementing or cooperating agency and local government/counterpart). There are three methods that could be employed individually or in combination for analyzing project performance. This is in order to know: Is the project accountable or not? These methods are: a. Cause and effects chains analysis. This technique is reviewing and assessing carefully each part of the project and how it relates to each other and as whole. The elements of this analysis include: inputs-process-outputs-effects-impacts. b. Cost-benefit analysis (CBA). CBA is a technique for comparing the monetary costs and monetary outcomes of alternatives. It will analysis what benefit will be gain by a project compared to the cost spent for the project. Once, we know the benefit and cost, we could then count the benefit-cost ratio (B/C ratio). The assumption is that if the B/C ratio of a project is more than one means that the project has an advantage value. With B/C ratio, the project can be compares with other project or alternative project. The B/C ratio can be used to assess a project: is the project valuable or not and can be justified. c. Cost-effectiveness analysis (CEA). CEA is a technique for comparing the costs and the effectiveness of alternative ways of achieving the same objective. In this technique, we should identify and analyze the costs, identify and analyze effectiveness of outcomes, and identify and analyze cost-effectiveness of outcomes. Of course, outcome criteria and measures will be used have to be developed, developed and agreed in advance. Using of cause and effects chains analysis may help the evaluator. ----------------------------- Sherry, I am not sure if I have to explain in details each of the method. I believe that your friend in Brazil knows better than me about these methods. I hope this will help. Please send me E-mail if you need more information. Cheers. Bambang Samekto USAID/HPN ------------- --------------------------------------------------------------------- Mulai langganan: kirim e-mail ke [EMAIL PROTECTED] Stop langganan: kirim e-mail ke [EMAIL PROTECTED] Archive ada di http://www.mail-archive.com/envorum@ypb.or.id
