The attached report dated July 22, 1993 by Price Waterhouse presents the results of a financial audit of MPWWR Preventative Maintenance locally incurred costs under Project No. 263-0132 funded by USAID/Egypt. The Preventative Maintenance component of the IMS Project No. 263-0132 is comprised of two phases. The initial phase involves the establishment of a preventative maintenance organization in the Gharbia Directorate. Once operating, this unit should serve as a model extension to the other 18 Directorates in the irrigated areas. The second phase is to provide technical assistance for planning the system in the remaining Directorates and commodities for implementation in five Directorates.