ctlyfrom40.TheAdministration willconsider oursuggestion. Procurement ofsupplies forUNDPheadquarters 41.Wenotedthatafterinformal consultations asupplier wasselected toprovide UNDPheadquarters withcommonofficesupplies onaregular basis. Theselection of thesupplier wasjustified bythefactthatthefirmconcerned wasabletokeep sufficient stockonhandandtodeliver smallquantities ofsupplies directly to thevarious requesting offices. Thesetwoconditions werestipulated togenerate savings inspaceandstaffresources forUNDP. 42.Ourauditdisclosed nevertheless thatalthough theindividual requisitions rarelyexceedafewhundred dollars, theiraccumulation onyear-basis mayreach substantial amounts (e.g.approximately $73,000 forthefirstsixmonthsof1984). 43.Inthisconnection, wepointed outthatsuchacontractor selection procedure doesnotcomplywithUNDPfinancial rules113.5to113.10, inpar.ticu1ar asregards submission ofthecasetotheContracts Committee, competitive bidding by advertising, comparative analysis ofquotations received andcontracting bymeans offormalwritten agreements. 44.TheAdministration, whilemaintaining thatthearrangements wereclearly made inthebestinterest ofUNDP,explained thattheprnb1em mayhavebeenduetothe factthatcertain aspect~ offinancial rules113.5to113.10couldhavebeenbetter defined. Inthisrespect, wenotedthattheissuehasnowbeenclearly defined in thenewrulesthatbecameeffective 1January 1985. Expendable andnon-expendable property Headquarters andlocalProperty SurveyBoards 45.Rev1ewing theactivities oftheheadquarters Property SurveyBoard, wenoticed thatasrecommended inourmanagement letterof6January 1981,theBoardnow indicates thedegreeofliability, ifany,devolving onanyofficial forproperty shortages ordamages. Thisenforcement ofUNDPfinancial rule114.32 (e)enables theAdministration todetermine theassessment tobemadeagdinststaffmembers for lossesordamages. 46.Onthismatter, ourauditdisclosed ·that,duetoprocedural constraints, decisions onfinancial assessment ofstaffmighttakeaconsiderable time,which couldleadincertain casestotheirrecoverabi1ity ofamounts due. 47.Wenotedalsothatinsomecasesthesurcharge assessed against astaffmember ismadepayable byinstalments, which,inprinciple, require financial follow-up in addition tocustodial measures. Onthismatter, wefoundthattherecovery process couldbeimproved, inparticular byproviding allnecessary information onthecase induetimetotheappropriate implementing unitsandbyrequesting alsothatthe Division ofPersonnel shouldnotifyseparation fromservice andotherrelevant information systematically totheProperty SurveyBoards. Finally, weadvised that an"accounts receivable" besetupforeachassessment caseinordertoassistthe AssetControl unitinitsfollow-up actions. -23-48.TheAdministration agreedthattheDivisions concerned shouldco-ordinate more closel~ inre-enforcing procedures toensureadequate implementation offinancial rule114.32(e).Ourproposal regarding "accounts receivable" willbeexamined to assessitsapplicability toUNDP. Project equipment infieldofficecustody oronloan 49.Ourauditinthefieldrevealed thatequipment itemsofcompleted projects regularly remaininfieldofficecustody forperiods inexcessof12monthsand thattheseitemsarenotrecorded separately inthefieldofficeyear-end invent0ry reports efnon-expendable property asprescribed (seememorandum circular UNDP!ADM!Field!397 of5November 1975,para.10).Similarly, property itemson loanfromprivate organizations asw~llasUNDPproperty itemslenttoother organizations arenot'alwaysrecorded inthefieldofficeyear-end inventory reports. 50.Weobserved, moreover, acasewhereproject vehicles infieldofficecustody have,infact,beenusedforextended periods oftimetomeetadditional transportation requirements ofUNDPandexecuting agencies. 51.Although wewere info~med inthefieldthatefforts hadbeenmaderecently to clearthissituation, werecommended thatallproject equipment inUNDPcustody as wellasallproperty onloanshould berecorded properly andseparately inthe fieldofficeyear-end inventory reports inthefuture. UNDPshouldalsofollow up closely withallparties concerned onthetimelyre-assignment ordisposal ofall suchproperty. . 52.TheAdministration agreedwithourrecommendations. Capital assets Housing construction underloanagreements withGovernments 53.Thereimbursement process inreGpect ofloanagreements signedpriorto
**Analysis**
This text appears to be related to the administrative and financial management of the United Nations Development Programme (UNDP). It discusses procurement of supplies, property management, and capital assets, which suggests that it is concerned with the internal operations and financial management of the organization. The text does not seem to be directly related to specific development projects or activities, but rather focuses on the organizational and administrative aspects of UNDP's operations.

**Category**
Administration, International Organizations