Evaluates the use of P.L. 480 Title I funds by Costa Rica's National Commission of Loans for Education (CONAPE) for its Program for Education and Training of Human Resources in Farming and Fishing. Non-Federal audit, conducted by Price Waterhouse of Costa Rica, covers the period 9/83-9/85 and is based on standard auditing procedures. Overall, CONAPE's management of P.L. 480, Title I funds was acceptable. CONAPE's statement of income and expenditures presents fairly the results of operations carried out with Title I funds. On the other hand, a few minor deficiencies were noted in CONAPE's internal control system and in its compliance with applicable agreements. In the former case, CONAPE's Internal Audit Unit carries out periodic reviews of records and procedures, but not specifically for P.L. 480, Title I funds. In the latter case, CONAPE commingled P.L. 480 funds with funds from other sources and failed to get written approval from The Ministry of National Planning and Economic Policy (MIDEPLAN), the entity charged with overseeing CONAPE, for individual loans granted prior to the effective date of the education program. It is recommended that USAID/CR: (1) obtain evidence from CONAPE that it has implemented Price Waterhouse's recommendations to correct the above deficiencies; and (2) include in future agreements provisions concerning the use of idle funds or income generated with project funds. USAID/CR and CONAPE were in basic agreement with the audit and offered suggestions which have been incorporated into the final report.