1.

ACCOUNTING/SUPPORT STAFF

Observation
A number of significant accounting problems have occurred due to the
insufficient number of accounting personnel to record the day-to-day
transactions. These problems include the following:
- lack of segregation of duties as all accounting functions have been
handled by only one personnel.
- delays in the preparation of various schedules as the bookkeeper
needs to prepare these documents while simultaneously recording the
transactions for the day.

Recommendation
It appears that in order for the Foundation to strengthen its
accounting function, it will need to add or assign people who will take
some of the responsibilities of the present accounting staff. In this
way, the needed reports, schedules and updating of books of accounts
can be done immediately.
Another way would be to adopt a computerized accounting system
which can automatically provide the needed reports and schedules.
This system can be tailored to meet the other requirements of the
Foundation. This would also mitigate the errors associated with
manual recording such as wrong footing, extensions and postings.
Furthermore, this would be very useful in view of the potential
increase in the volume of transactions in the subsequent periods,
making it difficult to record the day-to-day activities using only a
manual system.

Managements Response
An Administrative Officer has been hired to oversee the accountant.
Responsibility for the preparation of checks and the handling of
accountable forms and petty cash, as well as collection and deposit of
cash is no longer under the accountants responsibility. She is now
only responsible for the preparation of financial statements and
ensuring that all financial transactions are properly recorded and
documented. The Facilities Manager handles petty cash, and
responsibility for collections of liquidations and issuance of receipts is
lodged in another person, thus ensuring that in spite of our lean staff,
we have a system of internal control.
We have also received approval to computerize our accounting
system. This will start July 2003.
In addition, we will be retaining the services of an internal auditor to
do a midyear internal audit. As resources become available, we shall
be performing this activity on a quarterly basis.