FRAMEWORK FOR AUDITING UN SYSTEM COORDINATED PROGRAMMES SUPPORTED BY MULTIPLE AGENCIES

1. FRAMEWORK FOR AUDITING UN SYSTEM COORDINATED PROGRAMMES SUPPORTED BY MULTIPLE AGENCIES Presented by Anjana Das on behalf of the UN RIAS Operational Subgroup on Audit UNDG: September 24, 2008

2. Need for such a Framework • Increasing number of programmes supported by multiple agencies in the UN system and financed by a combination of funds (e.g. tsunami relief effort and the Oil-for-Food Programme); • The Representatives of Internal Audit Services in the United Nations Organizations and Multilateral Financial Institutions (RIAS) requested the Group to determine the areas of cooperation for audits of inter-agency programmes and operations, and develop procedures on how cooperation modalities could best be implemented.

3. What is the Framework? Elements of cooperation • 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; • Coordinating the timing of audits; • Sharing the results of audits with the Internal Audit Service of the coordinating or lead 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 and process similar to that of the Framework on auditing of MDTFs; • Internal Audit Services commit themselves to sharing information on issues of combating fraud and corruption.

4. Purpose of cooperation • Enable preparation of consolidated summaries and periodic reporting on the management of risks for the programmes supported by multiple agencies in the UN system; • Provide the programme managers and, as applicable, the governing bodies with a holistic feedback of the results of audit of programme activities; • Help identify gaps in programme design and implementation to enable the use of lessons learnt in planning new programmes.

5. Framework could be initiated by…. • Secretary-General and/or the Chief Executives Board requests through heads of agencies an overall summary report of the audits conducted of a programme; • Programme manager of the lead or coordinating agency, if any, requests the preparation of a consolidated report on the activities of a programme, and the IAS of the coordinating agency requests the preparation of an associated report on the audit activities undertaken by the IAS’ of the participating agencies; • At the suggestion of the Internal Audit Service of one agency, the majority of Internal Audit Services of the participating agencies decide to initiate a consolidated report.

6. Principles of cooperation • Entities in receipt of a combination of funding for programmes supported by multiple agencies shall be subject exclusively to the internal and external auditing procedures provided for in the financial regulations, rules and directives of the participating UN organizations; • No specific commitments regarding auditing should be made in agreements on programmes supported by multiple agencies, unless these are agreed to by the Internal Audit Services of participating UN organizations; • This understanding on cooperation recognizes and is subordinate to the individual mandate of the participating Internal Audit Services.

7. Participating agencies • Internal Audit Services (IASs) of the United Nations, FAO, ILO, ITU, UNDP, UNESCO, UNFPA, UNICEF, UNIDO, WFP, WMO and IFAD.