2006/13
Internal audit and oversight: UNDP, UNFPA and UNOPS

The Executive Board

1. Welcomes the UNDP report (DP/2006/31), the UNFPA report (DP/FPA/2006/4) and the UNOPS report (DP/2006/32) on internal audit and oversight and the creation of an independent audit and oversight committee in UNDP and in UNFPA, respectively; as well as the more detailed analysis of important risk areas, such as those described in DP/2006/31;

2. Reiterates the need for timely submission of the reports;

3. Recalls its decision 2005/19, welcomes the progress made in executing the decision, and requests that UNDP, UNFPA and UNOPS take further steps to comply with it;

4. Expresses support for continued strengthening of the internal audit and oversight services of UNDP, UNFPA and UNOPS, and requests an assessment of the resources required;

5. Recognizes the need to strengthen ongoing monitoring systems in order to address audit findings;

6. Expresses support for the initiatives of the audit offices in promoting a risk-management culture in UNDP, UNFPA and UNOPS, and requests them to accelerate the development of appropriate, compatible enterprise risk management systems, taking into account the costs and benefits of introducing such systems;

7. Takes note of the new reporting format of UNFPA, and requests UNDP, UNFPA and UNOPS to take further steps to include clearer, more analytical content, so that the reports presented to the Board identify risk areas, show the evolution of the risk areas, analyse the causes of the risk, and recommend systems for improvement;

8. Requests that the findings as well as the risk-based analyses be included in the reports presented to the Board;

9. Requests the Administrator of UNDP and the Executive Directors of UNFPA and UNOPS to also include in their respective annual audit and oversight reports: (a) a summary containing key and recurrent findings, (b) a table identifying the unresolved audit findings by year and prioritization category, and (c) an explanation of findings that have remained unresolved for 18 months or more;

10. Urges the Administrator of UNDP and the Executive Directors of UNFPA and UNOPS to take further steps to harmonize their audit and management response systems, including by standardizing the audit terms and definitions referred to in annex 6 of DP/2006/31, and aligning them with internationally recognized standards; and to provide an interim report at the annual session 2007;

11. Requests the Administrator of UNDP and the Executive Directors of UNFPA and UNOPS to provide separate management responses to the key and recurring issues identified in their annual internal audit reports;

12. Taking into account the necessity to mitigate the high-risk areas identified in DP/2006/31, DP/FPA/2006/4 and DP/2006/32, requests the Administrator of UNDP and the Executive Directors of UNFPA and UNOPS to inform the Board, at its annual session 2007, on the development of measures to promote, to the fullest extent possible, the use of national execution, bearing in mind the importance of building national capacity, simplifying procedures and aligning them with national procedures; and fostering appropriate financial management of UNDP/UNFPA/UNOPS operational activities.

16 June 2006