Audit of the private sector investment program"s fiscal year 1991 annual financial statement under the CFOs act of 1990

Audit report covers the period FY 1991. Key findings are as follows. (1) The accounting system did not accumulate the total cost of operating the PSIP. Costs not accumulated include -- but are not necessarily limited to -- inter-agency overhead allocations and the Development Assistance Funds disbursed by other A.I.D. components on behalf of the PSIP. (2) Monitoring of program participants was insufficient. This affected both participant compliance with contractual agreements and the attainment of project objectives by management. (3) The lack of adequate policies and procedures was prevalent in many areas, as evidenced by internal control weaknesses. To comply with the Chief Financial Officer"s (CFO) Act of 1990, it is recommended that PSIP make elimination of internal control deficiencies a priority. In addition, A.I.D. should include PSIP as a material weakness in the 1992 Federal Manager"s Financial Integrity Act (FMFIA) report.