decreased by$0.2million andfutureyearobligations by$0.9million. The operating reserve, established inaccordance withthefinancial rulesoftheFund, increased by$0.3million. Deferred incomedecreased by$0.8million. Deferred incomecomprises pledges totheFundforfutureyears. -3-II.REPORT OFTHEBOARDOFAUDITORS Introduction 1.Asrequired byGeneral Assembly resolution 74(I)andarticle XIofthe special annextotheFinancial Regulations andRulesoftheUnitedNations forthe UnitedNations Industrial Development Fund,theBoardofAuditors hasaudited the accounts oftheUnitedNations Industrial Development Fund(UNIDF) fortheyear ended31December 1984. Theannualreporting isconsistent withfinancial rules 401.1and402.1oftheFundrecommended intheBoard's reportfor1983.1/ 2.Theexamination wasmadeinaccordance witharticle XIIoftheFinancial Regulations andtheannexthereto andwiththecommonauditing standards adopted by thePanelofExternal Auditors oftheUnitedNations, thespecialized agencies and theInternational Atomic Energy Agency. Theexamination wasconducted atthe headquarters atVienna, andtheBoardfollowed itspractice ofreporting the results ofspecific auditsandissuing management letters containing detailed audit observations totheAdministration. 3.Thefollowing arethemostsignificant matters arising fromouraudit examination. Wehavediscussed thesematters withtheAdministration, whose responses arereferred toasappropriate. Summary offindings 4.Ourreviewofcashmanagement revealed thatalthough fundsavailable for investm~nts aresteadily increasing, theexisting arrangements donotprovide adequate policies, procedures andguidelines foraneffective investment function. 5.Wenotedalsothatproject budgetary procedures andproject planning and implementation should beimproved andstrengthened toensureeconomic andefficient utilization offunds. 6.Wefurther observed thatmonitoring procedures onsupplies andequipment to fieldoffices should bemademoreeffective. 7.Theofficial submission ofcertified financial accounts andstatements tothe BoardofAuditors asrequired byfinancial rules411.6and111.4(a)wasdelayed by overtwomonths. 1/Official Records oftheGeneral Assembly, Thirty-ninth Session, Supplement No.51(A/39/5/Add.9), sect.II. -4-- Investment 8.Finan oftheFun determined invested b 9.Inli Administra necessary management 10.Oure averaged $ forcashm following: (a) procedures (b) (c) 11.Init withUNIDF theUnited included t theestabl' 12.Furth involvemen regular mee investment. 13.Inadd investment interest ra anditcons thisregard include act further. Pro'ectbud 14.Werec improve pro Administrat specialatt implementatCashmanagement Investment offunds 8.Financial rule409.1oftheFundprovides that,bearing inmindtheobjectives oftheFundandinthelightofspecific requirements ofitsoperations as determined bytheExecutive Director, moniesnotrequired immediately maybe invested bytheSecretary-General. 9.Inlinewiththisprovision, theBoardofAuditors recommended andthe Administration established in1982anInvestment Advisory Boardtoprovide the necessary advisory andconsultative framework toensureeconomic andefficient management offunds. 10.Ourexamination ofcashmanagement indicated thatalthough investment balances averaged $11million amonthduring 1984,thepresent organizational arrangements forcashmanagement andinparticular investment procedures donotprovide forthe following: (a)Provision anddocumentation ofresponsibilities for,andpolicies and procedures tobefollowed intheinvestment function; (b)Effective involvement oftheInvestment Advisory Board; (c)Adequate investment reporting toenhance investment evaluation procedures. 11.Initsresponse, theAdministration stated, amongotherthings, thatinline
**Analysis**
The text appears to be an audit report of the United Nations Industrial Development Fund (UNIDF), discussing its financial management, investments, and operational procedures. The report highlights the need for improvements in cash management, investment procedures, and project planning and implementation. It also mentions the existence of an Investment Advisory Board and the importance of monitoring supplies and equipment. Given the focus on financial management and industrial development, it is likely that the report is related to economic development and international cooperation.

**Category**
Economic development, Industry