United Nations: Funding Arrangement Impede Independence of Internal Auditors

The recommendations in this report were made to the Secretary of State and the Permanent Representative of the United States to the UN to work with other member states to encourage the Secretary-General to take various actions to improve UN internal oversight. State endorsed the report's recommendations and stated that it would work with other UN member states to encourage the Secretary-General to take action on the recommendations. For these recommendations, we reviewed not only State's actions but also the UN's progress in addressing the recommendations before making a final determination on their implementation status. The UN has taken actions to implement this recommendation. In its annual reports, the UN Office of Internal Oversight Services (OIOS) reports to the General Assembly on the status of any significant risk and control issues in the UN, and potential consequences if risks and control weaknesses are not addressed. For example, in its 2008 annual report, OIOS oversight findings cover seven risk categories (strategy, governance, compliance, financial, operational, human resources, and information). The Office also raises any significant concerns with the Independent Audit Advisory Committee (IAAC). For example, IAAC reported the high number of vacancies in OIOS to the General Assembly in February 2009, raising the concern that the high number of vacant posts, in particular at the senior management levels, would have an adverse effect on the capacity and ability of OIOS to accomplish its program of work. The 2010-2011 OIOS budget submission also stipulated the amount of resources required to address high-risk areas identified through the Office's risk-based work plans. According to OIOS, the General Assembly makes the ultimate determination on the funding level allotted to OIOS to address risk areas.

The recommendations in this report were made to the Secretary of State and the Permanent Representative of the United States to the UN to work with other member states to encourage the Secretary-General to take various actions to improve UN internal oversight. State endorsed the report's recommendations and stated that it would work with other UN member states to encourage the Secretary-General to take action on the recommendations. For these recommendations, we reviewed not only State's actions but also the UN's progress in addressing the recommendations before making a final determination on their implementation status. The UN has taken several actions related to this recommendation, but additional actions are required to fully implement it. According to the UN Office of Internal Oversight Services (OIOS), the Internal Audit Division (IAD) and Inspection and Evaluation Division (IED) determine staff resource requirements through annual work planning exercises. Since 2008, OIOS annual work plans are based on an assessment of the risks facing audited entities. For instance in IAD, audit assignments are identified from the risk registers and IAD endeavors to audit all high and medium risk areas within 4 years of their first inclusion in the risk register. Beginning in June 2009 for posts funded from the Peacekeeping Support Account, and in January 2010 for posts funded from the Regular Budget, IAD determines the number of days required to conduct identified assignments within the desired time frame, and compares it with the actual number of audit days available based on current authorized posts. If there is a shortfall, IAD requests additional posts to enable it to conduct the assignments on the work plan. Similarly, IED develops its work plan through a strategic risk-based planning approach, which is based on Secretariat-wide data on a set of 12 proxy risk indicators, review of key strategic issues identified in upcoming inter-governmental conference and meetings agenda, and systematic, cyclical coverage of the 27 main Secretariat programs. With the goal of attaining coverage of all programs in an 8-year cycle, IED will also make proposals in their budget submission for additional staff resources required to complete their work plan. With regard to its Investigations Division, OIOS said that the resource planning methodology was discussed within the context of the Investigation Division's restructuring. In addition, the General Assembly (GA) approved a pilot structure for the Investigations Division and mandated the Secretary-General to submit the report on restructuring within the context of the 2012-2013 budget. Recognizing that the restructuring of the Investigations Division is ongoing, which requires the GA's approval, and that a workforce planning methodology has not been finalized, this recommendation remains open, acknowledging that implementation is under way but not yet complete.

The recommendations in this report were made to the Secretary of State and the Permanent Representative of the United States to the UN to work with other member states to encourage the Secretary-General to take various actions to improve UN internal oversight. State endorsed the report's recommendations and stated that it would work with other UN member states to encourage the Secretary-General to take action on the recommendations. For these recommendations, we reviewed not only State's actions but also the UN's progress in addressing the recommendations before making a final determination on their implementation status. The UN needs to take additional steps to implement this recommendation. According to the UN's Office of Internal Oversight Services (OIOS), in all audit assignments audit teams perform the necessary procedures to satisfy themselves with the reliability of data used to support their opinions. These procedures may include verification with third party and data analysis using source data. In addition, OIOS states that its manuals for audit, evaluation, and investigations address the matter of obtaining, assessing, and analyzing data (or evidence) for oversight findings. While the manuals discuss the importance of data reliability and accuracy, the manuals do not provide sufficient guidance and procedures to OIOS' staff for assessing data reliability.