should be recorded only when supported by detail6 of foreseen e%peaditures. Following the Board’s observations , and in line with the polioy of increased decentralisation, the Administration has issued stricter guidelines with the purpose of minimising the problems and ensuring oompliance with UNDP Financial Bules. 93. It was revealed that foreign currency obligations are ported at the exchange rate of the period entered into. In order to reOOrd correctly changes in foreign currency ratea, such obligations should be rovaluea at the year-en& rate to properly match foreign exchange gains or lorser with the relatad period. 94. The Administration indicated that, although financial rule 114.3 (b) doer not require an emendment to an obligation because of fluctuations in exchange rates, the Office for Project Services was in the process of implementing a new procurement system that would allow the recording of obligations, both iB local currency and in the United States dollar equivalent, and that would also automatically adjust the outstanding ob?Agatioor to roflmt the latort united Rations operational rates of exchange. 95. The practices of recording unliquidated obligation8 at other agencies were not reviewed by us. -32, 96. According to note 8 to the finanaial statements, there 5s a liability to be met by UNDP of approximately $US 1,568,676. However, in statement II, only $US 342,163 5s shown as liability. Under generally accepted aocounting principles, the whole amount has to be accrued if the probability of liability exists. We, therefore, recommended that, based on generally accepted accounting principles, additional accrual be effected for the difference of $US 1,226,513. 97. The Administration considered that, since most of the estimated future benefit payments were for widows end that they ceased when the widows died or remarried, it was more appropriate to report this as a contingent liability. We, however, feel 
**Analysis**
The text appears to be discussing financial management and accounting practices within the United Nations Development Programme (UNDP). The language used is technical and focused on financial regulations, policies, and procedures. The context suggests that the document is an audit report or a review of UNDP's financial practices, rather than a report on a specific project or sector.

**Category**
International trade, Finance