List of Open Audit Committee Recommendations on Internal Audit and Oversight

Wipo

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Part I: List of Open Audit Committee Recommendations on Internal Audit and Oversight Division WIPO Audit Committee – (First to Sixteenth Meeting) As at June, 2010 RECOMMENDATION NOT YET FULLY MANAGEMENT COMMENTS ON THE STATUS OF LINK TO RISK BENCHMARK IAOD COMMENTS IMPLEMENTED IMPLEMENTATION REGISTER Document WO/AC/3/2 – Report of the Third Meeting of the WIPO Audit Committee (October 30 to November 2, 2006) Action taken: 22. Taking all the above into account, the A Director of IAOD was appointed in January 2007 following Audit Committee could not escape the the transfer with post (P5) of the Senior Internal auditor/Acting conclusion that, as of the date of this report, Director. IAOD currently has three permanent and a short term internal audit at WIPO is deficient, casting staff members. In addition, UNOG have loaned IAOD an serious doubt on the overall effectiveness of investigator until end 2009. The Director General has agreed an internal control. Consequently, the Audit extension to this loan if possible. There are no plans for the Committee urges the WIPO Secretariat to outsourcing of internal audit. The internal audit strategy foresees undertake the outsourcing of the principal the contracting of expert support for oversight activities to the internal audit functions, until such time as the full extent that it is possible to properly manage such contracts. Internal Audit and Oversight Division becomes The highest current ...

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Last update

11/06/2010

8:18:35

Part I: List of Open Audit Committee Recommendations on Internal Audit and Oversight Division

WIPO Audit Committee – (First to Sixteenth Meeting)

As at June, 2010

RECOMMENDATION NOT YET FULLY

IMPLEMENTED

MANAGEMENT COMMENTS ON THE STATUS OF

IMPLEMENTATION

BENCHMARK

LINK TO RISK

REGISTER

IAOD COMMENTS

Document WO/AC/3/2 – Report of the Third

Meeting of the WIPO Audit Committee

(October 30 to November 2, 2006)

22.

Taking all the above into account, the

Audit Committee could not escape the

conclusion that, as of the date of this report,

internal audit at WIPO is deficient, casting

serious doubt on the overall effectiveness of

internal control.

Consequently, the Audit

Committee urges the WIPO Secretariat to

undertake the outsourcing of the principal

internal audit functions, until such time as the

Internal Audit and Oversight Division becomes

fully operational.

Further, the Audit Committee

requests that it is provided with a progress

report on this matter in time for its informal

meeting with the Program and Budget

Committee on 14

th

December 2006.

Action taken:

A Director of IAOD was appointed in January 2007 following

the transfer with post (P5) of the Senior Internal auditor/Acting

Director.

IAOD currently has three permanent and a short term

staff members. In addition, UNOG have loaned IAOD an

investigator until end 2009.

The Director General has agreed an

extension to this loan if possible. There are no plans for the

outsourcing of internal audit.

The internal audit strategy foresees

the contracting of expert support for oversight activities to the

full extent that it is possible to properly manage such contracts.

The highest current priorities are to obtain approvals for more

auditors and investigators

posts for administrative staff;

and to

recruit as soon as possible a replacement for the Chief Evaluator.

IAOD proposals for an increase of posts in the 2009 revised

budget and 2010/11 budget have not been agreed by WIPO.

Approved posts were reduced from 7 to 6 in 2008

Responsibility:

IAOD (Mr. Treen)

Status:

In progress

Deadline for implementation: End of 2010

Document WO/AC/4/2 – Report of the

Fourth Meeting of the WIPO Audit

Committee (March 26 to 29, 2007):

13.

The Audit Committee makes the

following recommendations:

c)

the development of policy and guidelines

for conducting investigations and

inspections should be given high priority;

Action taken

:

c)

The development of a draft manual and guidelines for

investigations was started by a contractor in late 2007 and

will now be finalized in 2010 with the help of special

resources approved by the DG.

Drafts of the policy and an

outline of the manual have been presented to the AC in 2008.

This development work has been delayed because of very

(*)

- This is considered as a critical/significant recommendation.

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RECOMMENDATION NOT YET FULLY

IMPLEMENTED

MANAGEMENT COMMENTS ON THE STATUS OF

IMPLEMENTATION

BENCHMARK

LINK TO RISK

REGISTER

IAOD COMMENTS

urgent needs for actual investigations.

Responsibility:

IAOD (Mr. Treen)

Deadline for implementation:

In progress

Document WO/AC/7/2 – Report of the

Seventh Meeting of the WIPO Audit

Committee (December 3 to 6, 2007):

a)

The Secretariat embarks on a more

vigorous recruitment process for vacant

posts and that, in the interim, the Director

of IAOD, with backing from the Controller,

enhances and intensifies outsourcing of

IAOD activities and recruitment of

temporary staff;

b)

The Director of IAOD gives greater priority

to the completion of Divisional Manuals

using, as far as possible, existing material

developed by other UN system

organizations;

Action taken:

a)

IAOD very much welcomes the Committee’s support for

more staff and resources.

More staff resources for internal

audit, investigations, evaluation, and administrative support

are still urgently required.

More posts for IAOD have

continued to be requested from past and present Director

Generals on several occasions and for each revision of the

Program Budget since 2007.

Responsibility:

IAOD (Mr. Treen)

Deadline for implementation:

End 2010

Action taken:

b)

The Committee interest in the development of Oversight

procedures and processes is very welcome indeed and will

help ensure a proper level of quality control is achieved.

The

Committee has been informed that it was IAOD policy to use

as base existing UN good practices, manuals and norms for

developing its own procedures and manuals.

Manuals and

procedures are being developed as scarce resources allow.

It

is hoped that a manual will be finalized for internal audit,

investigation and evaluation in 2010.

Responsibility:

IAOD (Mr. Treen)

Deadline for implementation:

End 2010

Action taken:

d)

It was agreed that this would be considered as part of the

(*)

- This is considered as a critical/significant recommendation.

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MANAGEMENT COMMENTS ON THE STATUS OF

IMPLEMENTATION

BENCHMARK

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IAOD COMMENTS

d)

The Director of IAOD prepares new draft

provisions to be included in the Audit

Charter to address special cases which may

involve the Director General and other

high-ranking officials; and,

preparation of the investigation policy and manual.

It is good

that a further provision to the Internal Audit Charter will be

made to cover the procedures to be followed for the

investigation of senior officials (including the Director

General) at WIPO as this matter had not been covered by the

changes to the Charter agreed by the General Assembly in

September 2007.

Responsibility:

IAOD (Mr. Treen)

Deadline for implementation:

August 2010

Document WO/AC/9/2 – Report of the Ninth

Meeting of the WIPO Audit Committee

(May 19 to 22, 2008):

a)

Concerning staffing, the Director of IAOD,

in consultation with the Controller and the

Director of HRMD, should ensure the full

establishment of IAOD’s regular budget

posts, including recruitment of a second

auditor;

d)

Action taken:

a)

The recruitment of a second auditor is still underway.

The

Internal Audit assessment of audit risks and audit needs for

2010 indicates clearly that the shortfall in needs for internal

audit activity is over 3 person years.

The Committee has

also been informed of the significant overall shortfall in

IAOD staff compared to the JIU’s norms for UN bodies.

Annex I to the JIU report on Oversight Lacunae

(JIU/REP/2006/2) sets out criteria and ranges for

determining the numbers of auditors, investigators and

evaluators that a UN organization or agency should have.

These ranges, if applied to WIPO, are:

four to eight auditors;

one to two investigators; and two to four evaluators (plus

adequate support staff).

IAOD would suggest that adequate

levels of staff based on risk assessments, needs analysis and

work loads is three auditors, two investigators, two

evaluators, two admin support staff and the Director.

A total

of 10 posts compared to the 6 posts currently allocated and

the current headcount of 5

Responsibility:

IAOD (Mr. Treen), HRMD

Deadline for implementation:

End 2010

(*)

- This is considered as a critical/significant recommendation.

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RECOMMENDATION NOT YET FULLY

IMPLEMENTED

MANAGEMENT COMMENTS ON THE STATUS OF

IMPLEMENTATION

BENCHMARK

LINK TO RISK

REGISTER

IAOD COMMENTS

Document WO/AC/10/2 – Report of the

Tenth Meeting of the WIPO Audit

Committee (October 6 to 9, 2008):

c)

Establishment and Preparation of a Proper

Internal Control System at WIPO

The Director of IAOD should present a

progress report on the internal control gap

assessment study to the Committee at its

next meeting in December 2008.

c)

Management is fully responsible for the development and

effective working of internal control, not internal audit.

However IAOD engaged two well-known audit experts who

have undertaken the IC Gap Assessment under the

supervision of IAOD in line with the Terms of Reference that

have been shared with WIPO Management and the Audit

Committee. INTOSAI guidance and the COSO framework

has been used as part of the approach: initially focusing on an

entity level controls and the control environment. The draft

report has been sent to the ODG for their feedback

/comments.

Responsibility:

IAOD (Mr. Treen)

Deadline for implementation:

April 2010

.

Document WO/AC/13/2 – Report of the

Thirteenth Meeting of the WIPO Audit

Committee (June 8 to 11, 2009)

No IAOD related recommendations were made.

Document WO/AC/14/2 – Report of the

Fourteenth Meeting of the WIPO Audit

Committee (August 18 to 21, 2009)

b)

Serious consideration be given to the

resources available to and the methodology

followed by IOAD in the field of investigations

in order to reduce the time required to complete

them and accelerate the conflict resolutions in

the Organization.

b) IAOD plays a role in the Organization’s internal system of

justice but acceleration of “conflict resolution” in the

Organization is not IAOD responsibility.

IAOD will continue to

work collaboratively with HRMD, OLC and ODG to ensure the

professional and timely completion of investigations.

Sufficient

expert human resources for the investigation work load remains

essential for this as is the establishment of an investigation

manual.

As the Committee may appreciate, at present

(*)

- This is considered as a critical/significant recommendation.

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IAOD COMMENTS

investigation resources are not sufficient for IAOD to complete

its investigation workload in a timely manner.

This is clearly set

out in the 2009 and earlier Summary Annual Report for IAOD

provided to the General Assembly.

Document WO/AC/15/2 – Report of the

Fifteenth Meeting of the WIPO Audit

Committee (November 30 to December 4,

2009)

C.

External Audit Report on the Assessment of

the Internal Audit Function

The Committee recommends that IAOD

finalize, as soon as possible, the 2010/11

workplan, based on an assessment of risks and,

as far as possible, on the implementation of the

outcome of the assessment.

D.

Status of Implementation of Oversight

Recommendations

The Committee recommends that IAOD

undertake grouping and prioritization of the

outstanding recommendations for review by the

Committee at its next meeting in April

2010.

E.

Investigations

In line with observations and recommendations

made at its fourth, twelfth, thirteenth and

fourteenth meetings,

1

the Committee

recommends that the Investigation Manual be

finalized and that the Manual be tabled with a

draft Investigation Policy.

The Committee further recommends

finalization of investigation cases, to be

reflected in the 2009 Investigation Annual

Report, and expects to receive the 2009 Report

in time for its next meeting in April 2010

.

C)

As has been the procedure since 2007 the Internal Audit

Strategy, planning package and detailed Audit work plan for the

2010/2011 (“the plan”) biennium was prepared on a risk based

methodology.

The plan was sent to the DG and the External

Auditor for their comments and feedback, and copied to the

Audit Committee.

IAOD will finalize the audit work plan based

on the feedback/comments of the Director General in due course.

D) As the Audit Committee has been informed, the grouping and

prioritization of the outstanding recommendations will be done as

soon as the development work for the MS Access database of all

outstanding oversight recommendations be completed by the

IT

Division.

E)

The development of a draft manual and guidelines for

investigations is nearing completion and was copied to the Audit

Committee May 2010.

The 2009 Annual Investigation Report has been copied to the

Audit Committee already.

The Audit Committee has access to

the register of investigation cases which is provided to the

Director General every 6 months.

Progress on investigation is

also noted in the IAOD Quarterly Report to the Director General,

which is always copied to the Audit Committee.

Responsibility:

IAOD (Mr. Treen)

1

Documents WO/AC/4/2, paragraph 13(c), WO/AC/12/2, paragraphs 15 and 19(c), WO/AC/13, paragraph 19(b) and WO/AC/14/2, paragraphs 26 to 30, and 40(a).

(*)

- This is considered as a critical/significant recommendation.

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RECOMMENDATION NOT YET FULLY

IMPLEMENTED

MANAGEMENT COMMENTS ON THE STATUS OF

IMPLEMENTATION

BENCHMARK

LINK TO RISK

REGISTER

IAOD COMMENTS

Deadline for implementation:

September 2010

Document WO/AC/16/2 – Report of the

Thirteenth Meeting of the WIPO Audit

Committee (April 12 to 16, 2010

Recommendation 14:

Every effort should be

made by each service concerned to expedite the

filling of vacant IAOD posts

Recruitment of P5 posts for the Head of the Internal Audit

Section and the Head of the Evaluation Section are ongoing

Responsibility:

HRMD)

Deadline for implementation:

End 2010