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114995 1 (1981-03-30)

handle is hein.gao/gaobacxtr0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 INTENATIONAL DIVIION MAR 3 0 19 81 Mr. Gerald T. West, Acting President -wRoverseas Private Investment Corporation 1129 Twentieth Street, N.W. 1111111 Washington, D.C. 20527 114995 Dear Mr. West: We have recently completed ourudit of the Overseas Private Investment Corporation's fisa.J year 1980 financial statementsjand would like to thank you for the cooperation and courtesy extended to us by your entire staff. We thought it would be useful to you to summarize the observa- tions we made during our audit which were not included in our report to the Board of Directors. These matters, presented in detail below, have been discussed with Mr. Leslie V. Porter and other members of your staff, who promised to give them consi- deration and take appropriate action. These issues did not have a material effect on the fair- ness of your September 30, 1980, financial presentation. We believe they are important, however, because they identify some areas in which better internal accounting controls could improve your operations and the timeliness of our audit work. NEED TO UPDATE ACCOUNTING MANUAL - The accounting manual has not been updated to show changes which have occurred since 1976. The manual' contains accounts which have not been used for at least 3 fiscal years; misused accounts, especially those related to the former method of re- cording claims settlements; and accounts-which are misnomers of transactions they represent, such as-the interest income. account 4740, which actually represents fees.. An pp-to-date accounting manual is an important part of a sound internal control system and helps to ensure accurate and reliable accounting records. It should contain the policies and procedures necessary for prompt, accurate, and consistent recording of accounting transactions; periodic reconciliation and review of accounts; and effective control over documents and records. //7/9q9~j