The attached report dated November 3, 1992 presents the results of a financial audit of CH2M Hill International Corporation locally incurred costs, under a contract relating to the Water Supply II Project, funded by USAID/Egypt. Through the direct contract with USAID/Egypt, CH2M provides necessary assistance to improve the level of services (pressure, quantity and time of availability) of Rod El Farag Water Distribution System, and to ensure the full production capacity of the recently expanded Rod El Farg treatment plant.