Agency for International Development's Loan Accounting System

Gao ID: 102487 June 10, 1977

Progress has been made in automating the loan accounting operations of the Agency for International Development (AID).

All loan accounting has been converted from the manual system approved by GAO in 1968, and the implementation problems then identified have been resolved. Full documentation of the new, complex, automated system is warranted to replace the existing loan accounting manual. There is still a need for periodic internal financial audits of the loan program and for regularly recurring independent tests of source data and established procedures. Although the current manual has always provided for semiannual internal check procedures to verify the validity of loan data used by the system, such tests were first performed by AID in 1975. Without adequate internal audit activities, management cannot ensure that its accounting responsibilities are being effectively met.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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