Working Group on Audit Chaired by Dagfinn Knutsen, Director, Internal Audit Division, OIOS, UN Secretariat Achievements for 2007

Tasking memorandum items 2007 A. Guidelines on auditing of Joint offices; A. Guidelines on auditing of Joint offices; B. Policy on auditing of common services; B. Policy on auditing of common services; C. Framework on auditing MDTFs; C. Framework on auditing MDTFs; D. Framework on auditing common funds; D. Framework on auditing common funds; E. Clarification on IAS roles in respect to HACT guidance and oversight. E. Clarification on IAS roles in respect to HACT guidance and oversight.

A. Guidelines on auditing of Joint Offices (Cap Verde) Agreement on division of work and report format before the audit began; Agreement on division of work and report format before the audit began; The joint audit mission with UNDP, UNICEF and WFP was conducted from 12 to 23 November and feedback is awaited. The joint audit mission with UNDP, UNICEF and WFP was conducted from 12 to 23 November and feedback is awaited. May not be replicable if One UN Offices follow different management arrangement May not be replicable if One UN Offices follow different management arrangement

B. Policy on auditing of common services Managing agency or the participating UN organizations may request a “common services feedback” survey (or questionnaire) to be applied, to assist in the planning of the forthcoming audit of the managing agency; Managing agency or the participating UN organizations may request a “common services feedback” survey (or questionnaire) to be applied, to assist in the planning of the forthcoming audit of the managing agency; Participating UN organizations should also raise, through the Resident Coordinator, any specific concerns about the management of common services, as and when the need arises, and specifically when an audit is scheduled; Participating UN organizations should also raise, through the Resident Coordinator, any specific concerns about the management of common services, as and when the need arises, and specifically when an audit is scheduled; Where common services have been audited, members of the participating UN organizations will be invited to the exit meeting dealing with this part of the audit; Where common services have been audited, members of the participating UN organizations will be invited to the exit meeting dealing with this part of the audit; The audited agency will also notify participating UN organizations at the country level of any high risk or significant weakness identified in the final audit report, and of the action planned or taken to address those risks. The audited agency will also notify participating UN organizations at the country level of any high risk or significant weakness identified in the final audit report, and of the action planned or taken to address those risks.

C. Framework on auditing MDTFs: To facilitate periodic summary reporting of the management of risks, the status of internal controls and recommendations made by the Internal Audit Services of UN organizations participating in MDTFs; To facilitate periodic summary reporting of the management of risks, the status of internal controls and recommendations made by the Internal Audit Services of UN organizations participating in MDTFs; The IASs of the participating organizations will conduct a coordinated risk assessment to be coordinated by the IAS of the Administrative Agent; The IASs of the participating organizations will conduct a coordinated risk assessment to be coordinated by the IAS of the Administrative Agent; The assessment should be done within an agreed time period and as soon as possible after the signing of the MDTF agreement; The assessment should be done within an agreed time period and as soon as possible after the signing of the MDTF agreement;

C. Framework on auditing MDTFs IAS of each participating UN organization will prepare a summary report on an agreed format highlighting important risk areas and the adequacy of risk management by the audited entity, with observations and recommendations; IAS of each participating UN organization will prepare a summary report on an agreed format highlighting important risk areas and the adequacy of risk management by the audited entity, with observations and recommendations; Overall summary audit report to be prepared by the IAS of the Administrative Agent will follow the agreed format; Overall summary audit report to be prepared by the IAS of the Administrative Agent will follow the agreed format; Final overall summary report will be submitted by the IAS of the Administrative Agent to the Administrative Agent, the MDTF Steering Committee, the IASs of participating organizations and the Fiduciary Management Oversight Group. Final overall summary report will be submitted by the IAS of the Administrative Agent to the Administrative Agent, the MDTF Steering Committee, the IASs of participating organizations and the Fiduciary Management Oversight Group.

D. Framework on auditing common funds (under discussion) Facilitate audit of programmes supported by multiple agencies in the UN system and financed by a combination of funds, other than the Multi donor Trust Funds (MDTFs); Facilitate audit of programmes supported by multiple agencies in the UN system and financed by a combination of funds, other than the Multi donor Trust Funds (MDTFs); The Secretary General, and/or the Chief Executives Board may request through heads of agencies an overall summary report of the audits conducted of a programme; or The Secretary General, and/or the Chief Executives Board may request through heads of agencies an overall summary report of the audits conducted of a programme; or The overall programme manager may request the preparation of a consolidated report on the activities of a programme; or The overall programme manager may request the preparation of a consolidated report on the activities of a programme; or One of the agency’s Internal Auditing Service (IAS) auditing a programme may initiate a consolidated report if, in its view, the conditions so demand. One of the agency’s Internal Auditing Service (IAS) auditing a programme may initiate a consolidated report if, in its view, the conditions so demand.

D. Framework on auditing common funds Coordinating and sharing risk assessments in order to plan audits; Coordinating and sharing risk assessments in order to plan audits; Taking into account the results of the coordinated risk assessment in planning the audits and coordinating the audit approach of horizontal audits as applicable; Taking into account the results of the coordinated risk assessment in planning the audits and coordinating the audit approach of horizontal audits as applicable; Coordinating the timing of audits; Coordinating the timing of audits; Sharing the results of audits with the IASs of the agency and allow the preparation of a summary report reflecting a fair overall presentation of audit results of the participating UN organizations; Sharing the results of audits with the IASs of the agency and allow the preparation of a summary report reflecting a fair overall presentation of audit results of the participating UN organizations; Formalizing an overall summary report through a template similar to that of the Framework on auditing of MDTFs; Formalizing an overall summary report through a template similar to that of the Framework on auditing of MDTFs; IASs commit themselves to sharing information on issues of combating fraud and corruption. IASs commit themselves to sharing information on issues of combating fraud and corruption.

E. Clarification on IAS roles in respect to HACT guidance and oversight Each Agency IAS’ internal audit guidelines apply for the audit of management practices, including those related to cash transfers under HACT; Each Agency IAS’ internal audit guidelines apply for the audit of management practices, including those related to cash transfers under HACT; Assurance activities must be commensurate with the results of the macro and micro assessments. The quality of these assessments and the scope, implementation and results of programmatic and financial assurance activities by the country office (including audits of implementing partners commissioned by the country office) are subject to review when the country office is audited; Assurance activities must be commensurate with the results of the macro and micro assessments. The quality of these assessments and the scope, implementation and results of programmatic and financial assurance activities by the country office (including audits of implementing partners commissioned by the country office) are subject to review when the country office is audited; Reasons for delays in HACT implementation scheduled to start in 2007 should be evidenced in response to audit observations. Reasons for delays in HACT implementation scheduled to start in 2007 should be evidenced in response to audit observations.

Additional tasks undertaken in 2007 UNICEF represented the Working Group (Audit) in the joint missions to the One UN pilots for Tanzania, Rwanda and Mozambique; UNICEF represented the Working Group (Audit) in the joint missions to the One UN pilots for Tanzania, Rwanda and Mozambique; OIOS represented the WG (Audit) in the finalization of the MDTF Oversight Framework in Rome. OIOS represented the WG (Audit) in the finalization of the MDTF Oversight Framework in Rome.

Tasking memorandum items for 2008 Share information on internal audit report disclosure policies amongst agencies; Share information on internal audit report disclosure policies amongst agencies; Finalize a framework for auditing UN system coordinated Programmes supported by multiple agencies; Finalize a framework for auditing UN system coordinated Programmes supported by multiple agencies; Share lessons learnt from coordination of Risk assessments of programmes/Trust Funds; Share lessons learnt from coordination of Risk assessments of programmes/Trust Funds; Share lessons learnt from coordination of audits of programmes/Trust Funds; Share lessons learnt from coordination of audits of programmes/Trust Funds; Share lessons learnt from audits of joint offices; Share lessons learnt from audits of joint offices; Clarification on IAS roles in respect to audits of implementing partners and other assurance activities related to HACT Clarification on IAS roles in respect to audits of implementing partners and other assurance activities related to HACT