UNDP, UNFPA and UNOPS: report on internal audit and oversight

The Executive Board

1. Takes note of the reports of the Administrator (DP/2005/26), the Executive Director of UNFPA (DP/FPA/2005/9), and the Executive Director of UNOPS (DP/2005/27) on internal audit and oversight;

2. Supports the continued strengthening and reorganization of the internal audit and oversight services of UNDP, UNFPA and UNOPS;

3. Urges UNDP and UNFPA to base their oversight and accountability activities on a corporate risk model and develop risk-assessment functions in their audit offices;

4. Encourages UNDP and UNFPA to use monitoring and financial control data systems to better mitigate the risks related to programme implementation;

5. Notes the importance of adequate audit coverage of headquarters functions;

6. Concurs with the need to strengthen analysis of the outcomes of audits; nationally executed projects; the follow-up actions taken by project management to address audit observations and recommendations; and requests UNDP, UNFPA and UNOPS to provide adequate training, particularly for field-based staff, to interpret and follow up on the audit findings and recommendations;

7. Requests UNDP and UNFPA to provide an explanation, in their next reports, of the selection criteria of the country offices audited;

8. Welcomes the presentation of audit recommendations by frequency of occurrence and by priority, and requests a further analysis of the present figures regarding the underlying causes of audit remarks;

9. Requests that this analysis and presentation be maintained in future reports on internal audit and oversight;

10. Requests UNDP, UNFPA and UNOPS to provide an analysis and presentation of the follow-up on previous internal audit recommendations in the reports of 2003 and 2004, and to report on the status of the most frequent and highest-priority recommendations in the next report, according to the framework approved in decision 2004/39, containing concrete objectives, a time line, and indicators as verified by the internal audit;

11. Requests UNDP and UNFPA to carry out an in-depth review of the level of internal audit resources so as to align them with best practices and adequately cover the strategic areas identified above;

12. Also requests the Administrator of UNDP and the Executive Directors of UNFPA and UNOPS to provide a management response to their internal audit reports at the annual session of the Executive Board , including the status of follow-up to recommendations of previous audit reports ;

13. Further requests UNDP to arrange for the Board of Auditors to make a present ation of their repor t to the Executive Board.

23 June 2005