text: records hasrecently beenintroduced. Thenewsystemprovides fortherecording of property number, location, UnitedStatesdollarvalue,datereceived ordisposed of,serial number, purchase ordernumber, supplier's name, des~ription and comments. Therecords aremaintained onacurrent basis. Incompleting the transition fromtheoldcontrol cardsystemtothenewcomputerized one,the recommendations madebytheAuditors willbeconsidered and,asfaraspossible, implemented. Greeting CardOperation (audit, para.10andparas. 47-54) 19.Theprioryearsauditors' recommendations ontheGreeting CardOperation were discussed atthesession oftheUNICEFExecutive BoardinMay1982.Atthattime delegations welcomed theproposal toprepare present Greeting CardOperation plans andaccounts inanewformatthatwouldmoreadeauately express thecommercial natureoftheGreeting CardOperation. 11 20.Thenewsystem wasintroduced duringthe1983campaign. Aswiththesituation described forthePacking andAssembly Centre, re-adaptation ofsystems and procedures ofworkhadtobecarried outwhilemaintaining theability toproduce, distribute andsellGreeting CardOperation products, thusmakingitnecessary to maintain temporary procedures toensuretransition andcontinuation ofwork. The prOblems mentioned bytheAuditors areappreciated bytheAdministration and,as indicated bytheAuditors, thenecessary corrective measures arecurrently being implemented. 21.Withreference tothespecific pointsmentioned bytheAuditors, the Administration wouldliketoprovide thefollowing comments: (a)Accounting policies (audit, paras. 40-50) Priortothe1983campaign, thetotalcostofproduction wascharged tothe budget, thusresulting innovalueforresidual inventory carried forward tothe nextcampaign season. Withtheintroduction ofthenewaccounting system, -20-ired ;taff ion. :affto ily 1of m lort :y lingof Ised were time plans 1 uation :'luce, '{to The as ing :he :heinitiated duringthe1983campaign thevalueofinventory wasrecognized andthis newaccounting policyisnowreflected intheGreeting CardOperation's financial reportandaccounts. Itisrealized thatthepractical implementation ofthis policyrequires adjustments. Thesearebeingconsidered alongthelinesofthe Auditors' recommendations. Asfarasaccounts payable areconcerned, theGreeting CardOperation has alwaysvaluedthegoodsandservices received asbilledbythesuppliers in accordance withtherelated contract. Thevaluation ofaccounts payable at standard costasobserved bytheAuditors istheresultofanerrorthatisbeing rectified. (b)Electronic data-processing controls (audit, paras. 51-52) Somesystems thathavebeendeveloped fortheGreeting CardOperation in NewYorkhavenotbeenfUllytransferred totheOfficeinEurope (Geneva) ofthe Greeting CardOperation. Itisth~management's intention tofullyimplement all systems thathavebeenproveneffective assoonaspossible. Inthisprocess the comments andobservations madebytheAuditors onenhancement ofcontrol procedures, readandwriteaccess, historical back-Up, transfer ofdata,etc.,will begivenserious consideration. •(c) ~eporting period(audit, paras.53-54) Thismatteraffects policies andtheworking relationship withthenational committees forUNICEFandothernon-governmental organizations deeplyinterested in discussing andevaluating anychangethatmayaffecttheirpolicyandworking procedures. ItistheAdministration's intention toexamine thismatterwithall theparties concerned sothatagreedprocedures canbedeveloped inthebest interest oftheorganization. Rulesandregulations (audit, para.54) 22.Asi~dicated bytheAuditors, thematterisbeingconsidered andaprogress reportwillbesUbmitted bytheUNICEFsecretariat atthe1986session ofthe Executive Board. Acknowledgement 23.TheAdministration wishestoexpressitsappreciation fortheconstructive co-operation extended bytheauditteaminthecourseoftheirwork. -21-Iv.FINANCIAL STATEMENTS FORTHEYEARENDED31DECEMBER 1984 -23-l STATEMENT I COMPARATIVE STATEMENT OFINCOME ANDEXPENDITURES FORTHEYEARENDED31DECEMBER 1984
analysis: The text appears to be related to the administrative and financial management of a organization, likely UNICEF, as it mentions specific departments and operations such as Greeting Card Operation and Packing and Assembly Centre. The text also discusses accounting policies, electronic data-processing controls, and reporting periods, which suggests that it is related to the organization's financial management and internal control systems.