of changes to the master file, all listings have to be corrected and subsequently reconailed to the first version, with differences documented and approved. 68. The Administration agreed with the audit observation. Measures would be taken to ensure #at the same source data were used in producing various statements, and changes to the original version would be documented as suggested. 69. We reviewed bank confirmations circularised a8 of year-end. It was revealed that certain differences between the confirmations received and the accounting reaords had not been followed up in all cases , nor had the follow-up that had been taken been properly documented. In order to have proper control over custody of assets, it should be a clearly established rule that the existence of investments must be verified by confirmations with the related custodian and that there be follow-up on differences resulting from such confirmations, IO. The Administration replied that procedures had been established to reconcile all investment record8 against individual confirmations received from the investment bank6 . In those instances, the error had not been detected. Such errors were infrequent. Kowever, the confirmation was rent to the correct bank snd follow-up was ertsblirhed with the bank to obtain corrected year-end confirmation. 71. Accrued interest oa bonds is calculated msnually although a computer system for interert calculation i8 availsble. However, the electronic data-processing system does not support the method of calculating interest on these bonds. An examination should be carried out as to whether the system caa be adjusted to avoid cumbersome manual work for the calculation. 72. UNDP agreed with the audit comment. Measures would be taken to ensure that this procedure was included in future computer syrtem enhancements. -28- 73. In one agenay file, it wae noted that no correspondence from that agency was 
**Analysis**
The text appears to be discussing internal control and financial management practices within an organization, specifically related to accounting and record-keeping. The topics mentioned, such as bank confirmations, interest calculations, and documentation of changes, suggest a focus on financial governance and compliance.

**Category**
Finance, Administration