Smaller agricultural projects may be evaluated by direct observation and by obtaining first-hand information from field staff, specialists, and other individuals connected with project implementation.
For major projects, evaluation is typically based on periodic written reports, which may be enhanced with charts, graphs, and illustrations to add value to the reports.
Post Project Evaluation (Post Audit)
Post project evaluation, also known as post audit or post completion audit, assesses the project after its completion. During the appraisal phase, estimates are made regarding project costs and completion timelines. After the project’s completion, a post audit evaluates the actual project costs and the time taken to complete the project.
While project appraisal focuses on future projections, post project evaluation is an assessment of past performance. Ideally, a project is considered successful if it is completed on time, within budget, and delivers the expected performance levels.
For public agricultural projects, the evaluation also includes assessing the social cost-benefit factors and the extent to which the project’s objectives are achieved.
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Objectives of Post Audit
Experience is a valuable teacher in agricultural project implementation. The knowledge gained during this process benefits all involved, from the project owner to the management team, as they learn critical lessons that can be applied to future ventures.
Post project evaluation helps financial institutions that fund agricultural projects identify any shortcomings in their project appraisal and the control mechanisms that could have been employed for better monitoring.
For example, if the project implementation time exceeds the original estimate, the resulting time-overrun will lead to a cost-overrun. Adjustments to the loan repayment schedule may also be required.
Post project evaluation sheds light on several key aspects:
i. The adequacy of contingency provisions for unforeseen expenditures
ii. Normal project implementation timelines for different agricultural projects
iii. Comparative costs for similar projects.
Contractors who completed the project may have incurred unexpected costs, allowing them to use this experience in future bids. This also helps contractors guard against uncertainties in future projects.
The objectives of post audit can be summarized as:
1. Building a database to aid accurate project cost and time estimation.
2. Educating all stakeholders about the realities of project management.
3. Establishing the correct time-cost relationship.
4. Creating appropriate work standards based on suitable techniques.
5. Sharing audit information to build a better understanding of the project and its challenges to avoid similar issues in future agricultural projects.
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Phases of Post Audit
Post audit in agricultural projects occurs in two phases: immediately after project completion and after a period of two to three years.
1. Immediate Post Audit evaluates the differences between actual and estimated project costs, time, and the areas responsible for these variances. It distinguishes between avoidable and unavoidable variances and analyzes steps that could have been taken to avoid them.
2. Post Audit After Two to Three Years examines broader aspects such as whether the project’s goals and objectives have been met, whether the quality and volume of output meet expectations, and whether the product is accepted in the market.
The primary aim of post project evaluation, regardless of the timing, is to identify pitfalls and gray areas and suggest corrective measures.
Types of Post Audit
1. Technical Evaluation (Technical Audit): This focuses on evaluating the quality and quantity of agricultural production, operational costs, and comparing actual performance with the projections made in the feasibility report.
For some agricultural projects, immediate evaluation is possible upon project completion, while for others, the output stabilizes after a certain period due to varying raw material quality and skill levels of personnel. The evaluation also looks at utilities such as water, fuel, and power consumption and checks whether quality standards were met.
2. Financial Evaluation (Financial Audit): Financial evaluation verifies whether actual project costs, operating expenses, profitability, and cash flow align with the estimates made during project appraisal. While project cost assessment can be done immediately after completion, other financial metrics, such as profitability, can be analyzed only after the project has been operational for two to three years.
3. Economic Evaluation (Economic Audit): Economic evaluation is more challenging as it involves subjective aspects like social costs and benefits, especially for public sector and community development projects.
In agricultural projects, the focus is on whether the social benefits, which are quantified during the Social Cost Benefit Analysis (SCBA) at the appraisal stage, have been realized. The evaluation also checks for unforeseen negative impacts, which add to the social cost of the project.
Economic evaluation is essential for public agricultural projects, as these are often undertaken with social objectives in mind, beyond financial or operational goals. Although SCBA at the appraisal stage is well-established, post project evaluation from a social cost-benefit perspective is still developing.
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