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102487 1 (1977-06-10)

handle is hein.gao/gaobacxol0001 and id is 1 raw text is: DOCUMENT SESUME 02487 - [A1812851) (Restricted) (Agency for International Development's Loan Accounting System]. J'ine 10, 1977. 2 pp. Report to John F. Owens, Acting Assistant Administrator, Agency for- Internatianal.Delelopment: Bureau for Prograw and Manage0 ent Services; by Prank M. Zappacosta, Assistant Director, International Div. Issue Area: Accounting and Financial Peporting (2800). Contact: International Div. Budget Function: Miscellaneous: Financial Management and Information Systems (1002). Progress has been made in automating the loan accounting operations of the Agency for International Development (AID) . Findings/Conclusions: All loan accounting has been converted from the manual system approved by GAO in 1968, and the implementation problems then identified have been resolved. Full documentation of the new, complex, automated system is warranted to replace the existing loan accounting manuil. There is still a need for periodic internal financial audits of the Loan Program and for regularly recurring independent tests of source data and established procedures. Although the current manual has always provided for semiannual internal cherk procedures to verify the validity of loan data used by the system, such tests were first performed by AID in 1975. Without adequate internal audit activities, management cannot ensure that its accounting responsibilities are being effectively met. Recommendations: AID should u)roduce a manual of the current system, describing jrocedures and controls, including provisions for periodic internal financial audits and independent tests of source data and established procedures, and should submit the documented system to the Comptroller General for approval. (DJP) 0