1January 1981hasledtoserious 'fficulties because theagreements usually calledforpayment oftherental ~meintoadesignated government account, leaving thefullresponsibility o~theloanrepayment totheGovernment. Thenew loanagreements, therefore, provide thatrentsaretobecollected byUNDPfield offices anddeposit(!d inarental"advances recoverable locally" (ARL)account from whichtheloanisrepaiddirectly toUNDPheadquarters. 54.Ourexamination nevertheless disclosed thatevenunderthenew r~payment procedure problems maystillariseasindicated inthesucceeding paragraphs. Titleandownership ofrental incomeonARLaccounts 55.Weobserved thatthereimbursement ofaloanof$2,308,230 granted toa Government hadnotyetstarted atthetimeofourauditinNovember 1984although, according toprovision 1.03oftheagreement withtheGovernment, thefirst instalment shouldhavebeenpaidon1January 1981atthelatest. Onthismatter, wefoundthatthe·transfer toheadquarters oftheamounts actually collected bythe fieldofficearebeingheldinsuspense ontheARLaccount duetotheGovernment's intervening request ofcollecting therentals indollars andreimbursing theloan -24- ,,1\.inna reimb autho the stipu offic 56. field reimb have 57. encou hasb view Insuf 58. housi bere renta" will purpos 59.W operat suffer agreed suffic theex reveal $13,09 thepe 60.W Govern agreelJl 61.T apartm ofjun employ 75per 62.W insuff Govern ofthe thatp48.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 1January 1981hasledtoserious 'fficulties because theagreements usually calledforpayment oftherental ~meintoadesignated government account, leaving thefullresponsibility o~theloanrepayment totheGovernment. Thenew loanagreements, therefore, provide thatrentsaretobecollected byUNDPfield offices anddeposit(!d inarental"advances recoverable locally" (ARL)account from whichtheloanisrepaiddirectly toUNDPheadquarters. 54.Ourexamination nevertheless disclosed thatevenunderthenew r~payment procedure problems maystillariseasindicated inthesucceeding paragraphs. Titleandownership ofrental incomeonARLaccounts 55.Weobserved thatthereimbursement ofaloanof$2,308,230 granted toa Government hadnotyetstarted atthetimeofourauditinNovember 1984although, according toprovision 1.03oftheagreement withtheGovernment, thefirst instalment shouldhavebeenpaidon1January 1981atthelatest. Onthismatter, wefoundthatthe·transfer toheadquarters oftheamounts actually collected bythe
**Analysis**
The text appears to be discussing financial management and audit findings related to loans and project equipment management by the United Nations Development Programme (UNDP). The content does not seem to be directly related to specific sectors such as agriculture, industry, or healthcare, but rather focuses on the administrative and financial aspects of UNDP's operations.

**Category**
Economic development, International trade