2007/10

Joint UNDP and UNFPA report on the implementation of the international public sector accounting standards and reports on the implementation of the recommendations of the Board of Auditors, 2004-2005 (UNDP and UNFPA)

 

      The Executive Board

1.   Takes note of the reports of UNDP and UNFPA on the implementation of the recommendations of the Board of Auditors, 2004-2005 (DP/2007/14 and DP/FPA/2007/1) and of the reports of the United Nations Board of Auditors (A/61/5/Add.1 and A/61/5/Add. 7), and requests the Administrator of UNDP and the Executive Director of UNFPA to take rapid action to fully implement the audit recommendations within the prescribed time frame;

2.   Acknowledges that this was the first report of the Board of Auditors conducted after the implementation of the Atlas system, and requests the Administrator and the Executive Director to accelerate the implementation of the audit recommendations concerning Atlas;

3.   Notes the ongoing efforts to strengthen management and control systems, including risk management, ethical and professional conduct, and anti-fraud and anti-corruption measures, in accordance with Executive Board decision 2006/8;

4.   Takes note of  the efforts made by UNDP and UNFPA management to complete monthly bank reconciliations for country offices and headquarters units and to strengthen internal control, and requests that those efforts be intensified;

5.   Reiterates its request to continue to mainstream risk management in UNDP and UNFPA business processes, and encourages both organizations to ensure that risk management is integrated into the framework of management accountability;

6.   Reaffirms the need to promote, to the fullest extent possible, the use of national execution as a means to build national capacity, and therefore requests UNDP and UNFPA to inform the Executive Board of the measures they are taking to simplify the procedures associated with this mode of execution, and to propose safeguard measures to address the related recommendations in the reports of the Board of Auditors (A/61/5/Add.1 and A/61/5/Add. 7);

7.   Requests the Administrator of UNDP to accelerate the strengthening of internal staff capacity through the professional certification programme as a longer-term approach to addressing underlying audit issues, in anticipation of the implementation of the international public sector accounting standards;

8.   Takes note that the Administrator of UNDP is exploring alternative sustainable support structures for improving bank reconciliations, accounting and the implementation of Atlas, including, but not limited to, the implementation of shared subregional service centres, especially in regions where staff capacity is insufficient; and requests the Administrator to address this issue in consultation with other United Nations funds and programmes;

9.   Requests the Administrator of UNDP and the Executive Director of UNFPA to build on progress achieved and to continue to implement the recommendations of the Board of Auditors in a timely fashion and also requests the Administrator of UNDP and the Executive Director of UNFPA to provide the Executive Board with a report at its first regular session 2008, which will include a management response to the issues emphasized by the Board of Auditors and an update on the main recommendations contained in documents A/61/5/Add.1 and A/61/5/Add. 7;

10.   Takes note of the steps taken by the Administrator of UNDP and the Executive Director of UNFPA to work with UNICEF and other United Nations organizations to standardize their financial management in the context of the transition to the international public sector accounting standards; and requests the Administrator and the Executive Director to inform the Executive Board of their progress in that regard.

  26 January 2007