withUNIDFfinancial rule401.1,theprovisions ofrelevant financial rulesunder theUnitedNations financial regulation 8.1andotherfinancial instructions included thefunction ofinvestment. However, further attention wouldbegivento theestablishment ofspecific investment policies forUNIDF. 12.Furthermore, theAdministration agreedthattherecouldbemoreeffective involvement oftheInvestment Advisory Boardandthatalthough ithadnotheld regular meetings, itsmembers received monthly statements oncashflowand investment. 13.Inaddition, theAdministration indicated thatthemonthly reporton investment atpresent provided information onsources offunds,namesofbanks, interest rates,periodofinvestment andamounts invested anddollars equivalent, anditconsidered thisinformation sufficient fortheevaluation ofinvestment. In thisregard, theBoardofAuditors recommended thattheinvestment reportshould include actualinterest earnedtoimprove theinvestment evaluation procedures further. Project activities Project budgetary procedures andproject planning 14.Werecommended inourreportfor19831/thattheAdministration should improve project delivery andensure thecompletion ofprojects onschedule. The Administration initsresponse indicated, amongotherthings, thatitwouldpay special attention totherealistic phasing ofprojects toimprove therelative implementation rate. -5-15.Ourreviewofproject activities for1984disclosed thatunderanumberof projects, levelsofimplementation weresignificantly belowanticipated deliveries. Inthisregard, forexample, outofatotalamountof$21,495,973 approved forrephasing ofprojects in1984,deliveries amounted to$14,492,220, leavinq anunspent balance of$7,003,753. 16.Thesituation againindicated thatbudgetary procedures, particularly for rephasinq ofprojects, required further improvement andstrengthening, andwe advised theAdministration toreviewthecurrent project budgetary procedures to ensurethattheyprovide asatisfactory basisforefficient andeffective management ofproject activities. 17.TheAdministration notedourobservations andrecommendations andinformed us thatrephasing instructions for1985provided forstrongemphasis ontheneedfor realistic budgets. Project management system 18.Wealsonotedthatinanumberofcases,project implementation wasadversely affected byanumberofconstraints and,inparticular, delaysinrecruiting suitably qualified personnel forprojects andintheprovision ofproject equipment. Thesituation notonlycausedinordinate delaysinproject implementation butalsoresulted insignificant unutilized fundsandunproductive commitment offunds. 19.Inthisconnection, weobserved, forexample, thataproject approved in1978 withabudgetof$46,150 hadnotcommenced bythefirsthalfof1985duetothe factthatatechnical expertfortheproject couldnotbeappointed andalsothe difficulty intheprocurement ofproject equipment. Furthermore, notwithstanding thestatusoftheproject, asecondproject wasapproved for$296,900 in1983asa continuation ofthefirstproject. 20.Werecomm~nded thatprocedures onproject planning andimplementation andin particular fortheprovision ofproject inputsshould beimproved further toensure economic andefficient application offundsandeffective project delivery. The Administration agreedtotherecommendations andexpressed concern forimprovement. Supplyofproject equipment andsubmission ofdelivery reports 21.Procurement procedures governing delivery ofequipment andsupplies tothe fieldoffices require thatproject managers should acknowledge receipt ofequipment andsupplies ondelivery. Thereportwillenableheadquarters totakeearlYaction oncasesofdamaged ormissing equipment oritemsshortsupplied. 22.Ourreviewdisclosed anumberofomissions anddelaysinthesubmission of suchreports and,asaresult, wenotedforexample thataninsurance claimcould notbemadeforanestimated costof$21,920, (or$32,466 accordinq toan engineer's report) duetothedelayinthesubmission oftheclaim. 23.Werecommended thatmonitoring procedures fordeliveries onsupplies and
**Analysis**
This text appears to be a report on the financial management and project activities of the UNIDF (United Nations Industrial Development Fund). The report discusses various issues related to financial rules, investment policies, project budgetary procedures, project management, and supply of project equipment. It seems that the report is focused on the financial and administrative aspects of the organization, with a goal of improving the effectiveness and efficiency of its operations.

**Category**
Economic development, Humanitarian aid and relief