NCJ Number
67996
Date Published
1979
Length
4 pages
Annotation
THIS LETTER DISCUSSES PROBLEMS WITH ACCOUNTING PROCEDURES AND EFFICIENCY FOLLOWING A COMPLETE AUDIT OF THE INTER-AMERICAN FOUNDATION AND RECOMMENDS WAYS TO RECONCILE THESE PROBLEMS.
Abstract
TO IMPROVE ITS INTERNAL CONTROLS, THE FOUNDATION SHOULD EXPAND ITS INTERNAL AUDIT FUNCTION, PROVIDE FOR REVIEW OF INDIVIDUAL PAYROLL TRANSACTIONS IN THE COMPREHENSIVE PAYROLL REGISTER, REQUIRE THAT THE SUBSIDIARY LEDGERS AND DETAIL SCHEDULES BE RECONCILED MONTHLY TO THE GENERAL LEDGER, AND REQUIRE ADEQUATE SUPPORT FOR ALL ADJUSTING ENTRIES FOR THE GENERAL LEDGER ACCOUNTS. THE INTERNAL AUDIT FUNTION SHOULD INCLUDE AN EXAMINATION OF FINANCIAL TRANSACTIONS, ACCOUNTS, AND REPORTS, INCLUDING AN EVALUATION OF COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS; A REVIEW OF WHETHER RESOURCES ARE USED EFFICIENTLY AND ECONOMICALLY; AND A REVIEW TO DETERMINE WHETHER DESIRED RESULTS ARE EFFECTIVELY ACHIEVED. THE FOUNDATION FELL SHORT OF THESE GOALS IN ITS FINANCIAL STATEMENTS FOR FISCAL YEAR 1977 AND 1978. (JLF)