text: auditing standards adopted bythePanelofExternal Auditors oftheunitedNations, thespecialized agencies andtheInternational Atomic Energy Agency. The examination wasmadeatUNHCRheadauarters atGeneva andatUNHCRfieldoffices in Malaysia, Singapore, Uganda andZaire. 3.Duringtheyearunderreview, theBoardofAuditors continued itsnormal practice ofreporting theresults ofspecific audits andissuinq management letters containing detailed auditobservations totheAdministration andthispractice once againhelpedinmaintaining acontinuous dialogue withtheAdministration. 4.TheBoardofAuditors hasnotedwithappreciation theexpeditious manner in whichtheAdministration hasdealtwiththematters brought toitsattention and thecontinued efforts beingmadetoimprove thefinancial management andcontrol systemofUNHCR. Ourrecommendations areintended toassisttheAdministration in considering andimplementing further improvements. Thefollowing areconsidered themostsignificant matters arising fromour1984auditexamination. Wehave discussed thesematters withtheAdministration, whoseresponses arereferred toas appropriate. Summary offindings 5.Ourreviewofbudgetary control indicated thatexpenditure control procedures shouldfurther bestrengthened andeffectively applied. 6.Weobserved thatrepayments ofloansgranted over20yearsagohavenotbeen regular andrecommend thataccounting records maintained fortheloansbe improved. Similarly, loanbalances should beperiodically reconciled andconfirmed. 7.Wefurther notedthatefforts forthecollection ofoutstanding pledaesstill neededtobeintensified. Additionally, theauditdisclosed thatexisting internal control procedures forreconciling bankbalances should beapplied toenhance the effectiveness ofcashmanagement. 8.Ourexamination alsodisclosed thattheaccounting systeminthefieldoffices should beimproved andthatrecovery oftraveladvances should bemademore effective. 9.Ourreviewofprocurement practices disclosed thatapplicable financial rules werenotfollowed inallcaseswhenthevalueofthecontract wasoverandabove thestipulated limitof$40,000. Furthermore, therewastheneedtostrengthen the internal control andmonitoring system onprocurement. -1-10.Weobserved fromourreviewofproject activities thatalthough the AdmirJistration tookstepstoimprove theproject management system, certain internal control weaknesses stillreauire urgentattention toensurethatproject activities aremoreeconomically andeffectively carried out. 11.TheInternal AuditDivision oftheUnitedNations notedandreported acaseof fraudestimated at$400,000 thatwasperpetrated atanimplementing agency. Budgetary control Inadeauate expenditure control 12.Our applied. receivedreviewindicated thatbudgetary control procedures werenoteffectively Conseauently, instances werenotedwhereexpenditures exceeded allotments orexpenditures wereincurred without corresponding allotments. 13.Inthisregard, excesses totalling $201,004 werenotedbetween foursections andunits,whileexpenditures totalling $51,156 werealsoincurred without allotments. Werecommended thatthebudgetary.control procedures inplaceshould bestrengthened withaviewtoensuring adeauate andeffective budgetary control. 14.Initsresponse, theAdministration indicated thatthedeficit of$201,004 in 4outofthe47organizational divisions orsections wasmainlytheresultof over-expenditures undertravel, temporary assistance andcontractual services, and thatitwaspartlyoffset bysavings underotherobjects ofexpenditures. Those undertravel weremorethanoffset bysavings ontravelinotherorganizational units, Whilethoseover-expenditures ontemporary assistance andcontractual services werecovered bysavings underotheritemsofexpenditure. 15.TheAdministration, however, statedthatefforts werebeingcontinued to strengthen budgetary control toensuretheestablishment ofsub-allotments taking intoaccount thecurrent year'sneedsandusingprevious years'experience. In thiscontext, measures arebeingexplored thatwouldbothfacilitate control and makeitmoreeffective. Moreover, acomputerized budgetary control systemisbeing
analysis: This text appears to be related to the auditing of financial activities and internal controls within an organization, specifically the United Nations High Commissioner for Refugees (UNHCR). The content focuses on the examination of budgetary control, procurement practices, and financial management, which suggests a connection to the administrative and financial aspects of humanitarian aid and relief.