1.

ACCOUNTING MANUAL

Observation
At present, the Branch operates without the benefit of an accounting
policy and procedures manual. As the Branch continues to expand its
operations, it becomes increasingly important to formalize operating
and accounting procedures in order to maintain effective control.

Recommendations
An accounting manual should be prepared with the objective of
documenting the accounting system and policies. The accounting
manual should include, but not limited to, the following:

A descriptive chart of accounts

Procedures for the preparation and approval of documents and
supporting entries to the accounting records
Description of standard journal entries
Capitalization policies
Daily, monthly, and annual closing schedules and procedures
Job descriptions of accounting personnel
A listing of reports that should be prepared by the accounting
department which should include the description and distribution
of the reports.

Managements Response
We agree to your observation and your recommendation will be
adopted.