preparation ofanaging schedule~ 25.Werecommended thatlong-outstanding itemsberevi~wed andsettled in accordance withtheprovision ofarticle 46(£),thataperiodic reviewof outstanding itemsbeinstituted, asrecommended bytheinternal auditors, andthat acomputer programme thatcangenerate anagingschedule bedeveloped. The Administration assured usthatalldeficiencies brought toitsattention wouldbe cleared immediately andthatthecomputer programme wouldberequested.Benefits entitlements underthetwo-track system I20.Inourreviewofpension benefit calculations andpayments, weobserved that ]overpayments orunderpayments occurred withregularity foragroupofnewpension entitlements determined underthetwo-track system. Ouranalysis disclosed that theseerrorsoccurred whenfiveconditions werepresent, including thechangein theoperational exchange ratesbetween thetimeofbenefits calculation andthe timeofpayment•. 1 " , 1 i :1' I~t 1 it in )f ) of ems at , I . !Reconciliation ofaccounts Bankaccounts 26.Ourreviewofthebankreconciliation statements forthethreeprincipal payment accounts disclosed outstanding cheaues anddrafts, amounting to $157,706.44, thatwereissuedin1981,1982and1983. 27.Werecommended theperiodic reviewofoutstanding items,thecar.cellation of stalecheaues anddrafts, together withtherecognition ofthecancelled itemsas payables, properly supported byasubsidiary ledger. TheAdministration informed usthatithadstarted toinvestigate theseitemsandwassetting upprocedures for theirfollow-up anddisposition. Likewise, theAdministration wasconsidering a newliability account forthecancelled itemsandthepossibility ofamechanized application togenerate aschedule thatcouldfacilitate itswork,including the reversion totheFund'sprincipal oftheforfeited benefits. Pension benefit accounts 28.Thereconciliation ofthepension benefit accounts wascompleted onlyin mid-April 1985.Thereconciliation work,whichinvolves ahighvolumeof transactions, isdonemanually byonepersonalthough therecords beingreconciled havelongbeencomputer-generated. Inaddition, accounts supervisors failedto reviewthemonthly reconciliation. Welikewise observed thatthecomputerized payments systemforretirement benefits implemented latein1984failedtoconsider therequirements ofreconciliation. 29.Whenthesematters andtherelated recommendations werebrought toits attention, theAdministration informed usthattheworkvolumeandestablished priorities hadresulted "inthedelaysobserved byusandthatthecomputer ~rogramme modification hadbeenmade. Withdrawal settlement account 30.Ourreviewdisclosed thefailure toundertake therequired monthly reconciliacion ofthewithdrawal settlement account. Initial reconciliation work was unde~taken onlyinmid-year andalmosthalfoftheworkwasdonein1985. 31.Werecommended andtheAdministration ag'reedthatdoingtheworkonaregular basiswouldfacilitate theworkandhelpalleviate theyear-end workload. Emergency Fund 32.Present accounting procedures fortheEmergency FundprOVide fortherecording oftheannualappropriation onlyatyear-end ratherthanatthestartoftheyear whentheauthorization isreceived. Wealsoobserved thattheunexpended balance ofthisfundisnotreverted tothePension Fund,considering thatthe appropriation isvalidforonlyoneyear.Accordingly, werecommended andthe Administration agreedthattheappropriation berecorded atthestartoftheyear andthebalance ofthefundbereverted tothePension Fundatyear-end. -53-I:'Comments onmatters dealtwithinthe1983reportof theBoardofAuditors 33.Weobserved thattheAdministration hastakensatisfactory actiononmatters raisedinthe1983report, ~/exceptwithrespect totheformalization inwriting oftheservice agreements withthebankandtheconsulting actuaries, although discussions wereheldwiththeparties concerned. Acknowledgement 34.TheBoardofAuditors wishestoer-pressitsappreciation fortheco-operation andassi.stance extended bytheSecretary oftheUnitedNations JointStaffPension BoardandtheAssistant Secretary-General forFinancial Services, theirofficers andmembers oftheirstaff. (Signed) R.T.NELSON Auditor General ofGhana (Signed) A.DEFOY SeniorPresident oftheCourt