from the Agency by an amount commensurate with a projected 4. RSC consider requesting Agency approval for a vehicle standardization plan (MOA IV 962.3). (Findings IV.C., Page 4) B. RSC Director RSC Director It is requested that the Chief Auditor be notified in writing, with a copy to the Associate Director for Management, within 45 days from the date of this report of the action taken by the organizational component identified with the responsibility for initiating corrective action. The response should answer the action taken regarding each recommendation and administrative deficiency. A second response is required after an additional 30 days for actions that have not been completed when the initial response is submitted. (Note: It is recognized that most of the details of administration are performed for the Regional Service Center, Manila by the Administrative Staff of the Embassy on the basis of reimbursement for administrative support services. It is the responsibility of the Center Director to bring the recommendations in this report to the attention of the Embassy Staff, so that appropriate adjustments may be made to enable the Center Director to comply with the recommendations. If the Embassy Administrative Officer is unable to make the necessary adjustments, or has objections, this should be stated in the Center Director's report on the action taken, together with a clear statement of the Embassy's comments.) III SCOPE OF AUDIT The audit was made to verify the accuracy and propriety of financial and management operations of RSC Manila. It included a review of internal controls and administrative records maintained by RSC and the Administrative Section of the Embassy. The Auditor examined records at RSC and the Embassy to the extent he considered necessary. A detailed examination was not made of all transactions. IV DISCUSSION OF MAJOR RECOMMENDATIONS 1982. Approximately 600 purchase orders were issued by RSC in Fiscal Year Excluding incoming shipments covered under an Embassy open-end contract, it appears that about 500 orders were issued which could have been executed by RSC if the Director had a from the Agency Contracting Officer. indicates that RSC has the capability most cases RSC already seeks out tre order for the Embassy General Services total control over the flow of paper. realize some savings under Foreign A Under the circumstances, the redelegat redelegation of procurement authority 3 Administrative Support (FAAS). UNRESOLVED RECOMMENDATIONS United States Information Agency Washington AUDIT REPORT FINANCIAL AND MANAGEMENT OPERATIONS Period Covered by Audit: August 14, 1977 January 31, 1983 Dates of Audit: February 7 - 18, 1983 Date Report Issued: July 5, 1983 Office of Audits During the period shown above, the Auditor examined the administrative and management operations of the United States Information Service (USIS) Philippines. The audit was conducted concurrently with an inspection of Post operations by members of the Agency's Office of Inspections. The combined audit and inspection provided a complete review of the Post's operations. The major finding of the audit was that no serious administrative deficiencies were found. The audit did disclose, however, administrative areas which the Post should improve upon. These areas are summarized as follows: The number of vehicles in the fleet appears excessive to the needs of the Post. A reduction seems feasible. Controls over gasoline and vehicle usage should be consistently maintained. Program property at the Branch Posts and on loan should be reconciled to the property cards. The PAO should review the program need for long-term loans. The Post should continually assess the need for the large number of accountable audio-visual property items. At present, it approximates 300 separate items. Requisitioning and the usage of administrative supplies should be closely monitored. Recommendations were not made for less important findings. A list covering these items is included as Exhibit "A" to the audit report. While the items are minor in nature, the Post should take affirmative action to correct them. If the Post disagrees with any of the minor findings, this should be noted when the Post replies to the report. II MAJOR RECOMMENDATIONS A. It is recommended that: 1. The Post reduce the level of authorized vehicles to a number commensurate with program need. (Findings IV.A.1, Page 3) Recommended Action Assigned to: PAO 2. The Post ensure the following controls over vehicle usage are consistently maintained for each vehicle: (a) monthly gasoline usage on a miles per gallon basis, and (b) daily trip reports. (Findings IV.A.1, Page 3) 3. (a) The Cebu Branch Post physical inventory of January 1983 be reconciled to the property cards, and (b) the the Davao Branch Post perform a physical inventory and the inventory be reconciled to the property control records (Findings IV.A.2, Page 4) 4. The Post ensure: (a) accountable program property is supported by Program Property Cards and appears on the Property Inventory Register, and (b) program property on loan is supported by a current loan receipt and approved by the PAO if the loan is for more than 90 days. (Findings IV.A.2, Page 4) 5. The Post ensure grantees submit adequate and timely reports in compliance with grant terms. (Findings IV.A.3, Page 5) 6. The Post ensure work count documentation supports invoices submitted for payment under non-personal services Purchase Order No. USIS-32234 for the services of Ms. Leticia M. Cifra. (Findings IV.A.3, Page 5) 7. The Post review unobligated balances of $27,042.90 and $7,288.87 pertaining to "M" Year and Fiscal Year 1981 respectively and return to the Agency funds not supported by valid obligating documentation (MOA VII 933.1.c). (Findings IV.A.4, Page 7) 8. The Post review the requistioning of administrative supplies from the Embassy General Services Office and determine whether controls over usage are adequate. (Findings IV.A.5, Page 7) 9. The Bureau for Educational and Cultural Affairs (E/XB): (a) reconcile the December 31, 1982 Program Status Report of the Philippine-American Educational Foundation (PAEF) to E/XB records, and (b) advise PAEF of any necessary adjustments to PAEF records resulting from the reconciliation. (Findings IV.B, Page 8) 10. The Post ensure the public accountants reports for PAEF: (a) include program status data for the last three program years and the active commitments for all other prior years and not include data from inception of the Fundation in 1948, (b) reflect approved budgets and not proposed budgets, and (c) include approved budget amounts for non-grant costs. (Findings IV.B, Page 8) PAO PAO PAO PAO PAO PAO PAO E/X PAO UNRESOLVED RECOMMENDATIONS United States Information Agency AUDIT REPORT FINANCIAL AND MANAGEMENT OPERATIONS Period Covered by Audit: May 1, 1980 - January 31, 1983 Dates of Audit: January 19 - February 16, 1983 Date Report Issued: June 27, 1983 Office of Audits |