2007/29
Internal audit and oversight:  UNDP, UNFPA and UNOPS

    The Executive Board

1.     Takes note of the reports on internal audit and oversight of UNDP (DP/2007/37) and UNFPA (DP/FPA/2007/14), and of the report of the UNDP Office of Audit and Performance Review on internal audit services to UNOPS in 2006 (DP/2007/38);

2.     Welcomes the greater attention of the internal audit reports to key and recurrent management issues; the clarity and format of the recommendations; and risk-based audit planning;

3.     Urges UNDP, UNFPA and UNOPS to continue to submit management responses to the Executive Board; and stresses that the continuous improvement of audit reporting and the submission to the Executive Board of management responses provide assurance regarding the functioning of internal controls;

4.     Recalls General Assembly resolution 59/250, which calls upon United Nations organizations to use, to the fullest extent possible, national execution and available national expertise and technologies as the norm in implementing operational activities;

5.     Calls upon UNDP and UNFPA to further strengthen the national execution modality by addressing the operational risks and weaknesses identified in the audit reports, with particular  attention given to capacity-building, and requests UNDP and UNFPA to inform the Executive Board of the implementation of the proposed actions; 

6.     Also requests the Administrator of UNDP to pay particular attention to risks related to the Atlas system, bank reconciliations and the management of trust-fund deficits, and to inform the Executive Board of the actions taken to mitigate those risks;

7.     Further requests the Executive Director of UNFPA to pay particular attention to risks related to business processes and information technology, and to inform the Executive Board of the actions taken to mitigate those risks;  

8.     Urges the implementation of the recommendations of the audit reports by the management of UNDP and UNFPA, and requests UNDP and UNFPA to report on the implementation of these recommendations in their respective management responses, to be submitted to the annual session 2008 of the Executive Board; 

9.     Requests the Executive Director of UNOPS to ensure that the new audit mechanism to be implemented in July 2007 is effective and that adequate staff are provided to implement it, and further requests the Executive Director of UNOPS to provide an oral report to the second regular session 2007 of the Executive Board on the new audit mechanism;

10.   Notes that accountability and transparency are integral to sound management;

11.   Requests the Administrator of UNDP and the Executive Director of UNFPA to submit, for consideration and approval by the Executive Board at its first regular session 2008, an oversight policy that also defines the concepts of accountability and transparency as well as disclosure and confidentiality in the management of the operational activities of UNDP, UNFPA and UNOPS. In that regard, the Board further requests the Administrator of UNDP and the Executive Director of UNFPA to keep the Board regularly informed, including through an oral report submitted to the second regular session 2007 of the Board, on progress made in developing the components and principles of the oversight policy prior to its submission to the Board at its first regular session of 2008;

12.   Recalls the establishment of the UNDP and UNFPA Audit Advisory Committees, and requests that the role of the Audit Advisory Committees, including their independence, relationship with the Executive Board, and appointment procedures, is clarified in the oversight policy.

22 June 2007