Non-federal audit report of the family planning services and training center under the family planning and health services project

project-funded entity which supports nongovernmental family planning organizations in Bangladesh. The audit covers the period 10/87-9/89. In general, FPSTC"s expenditures were properly supported, and only $360 in questionable costs needs to be recovered. However, FPSTC is characterized by the following deficiencies in internal controls: (1) lapses in its control systems for payment procedures and the recording of funds received from A.I.D. and other donors; (2) failure to segregate certain incompatible functions relating to recording and custody of contraceptive stocks; (3) an inadequate internal audit system; and (4) weak control over subgrantees. The resolution of these problems would lower the risk of undetected errors or irregularities.