BOP Program Statement 8510.02 § 15

execution in UNICOR is accomplished through the accounting and

internal control system. The purposes of the accounting system

and internal control procedures are as follows:

a. Accounting. UNICOR's accounting system provides essential

and reliable information on assets, liabilities, disbursements,

revenues, costs, and expenses. The accounting system provides

for identifying classifying, recording, controlling, summarizing,

reporting, analyzing, and interpreting financial data. The

system is a management tool designed to:

— show the cost of producing each job or process;

— evaluate performance on each job or process by

comparing actual cost with pre-determined estimates;

— provide a basis for financial and production planning;

— show the status of financial condition and results of

operations;

— safeguard public funds and other resources; and

— ensure compliance with applicable laws and regulations.

PS 8510.02

1/21/2003

Page 11

b. Internal Control. UNICOR's internal control system

comprises the plan of organization and coordinated methods

adopted to:

— safeguard assets,

— check the accuracy and reliability of accounting data,

— promote efficiency and economy of operations, and

— encourage adherence to prescribed managerial policies.

UNICOR's internal control system encompasses:

— internal administrative control;

— internal accounting control; and

— internal checks (accounting procedures or statistical,

physical, or other controls which safeguard assets

against waste, loss, fraud or other improper or

unwarranted use).