AFR/RC63/INF.DOC/2 6 September 2013
REGIONAL COMMITTEE FOR AFRICA Sixty-third session Brazzaville, Republic of Congo, 2–6 September, 2013 Agenda item 20.2
ORIGINAL: ENGLISH
REGIONAL MATTERS ARISING FROM REPORTS OF THE WHO INTERNAL AND EXTERNAL AUDITS Information Document
CONTENTS Paragraphs BACKGROUND ............................................................................................................................... 1–2 ACHIEVEMENTS IN COMPLIANCE MANAGEMENT ............................................................ 3–12 WHO Management Reform – Accountability and Transparency ........................................... 3–4 AFRO Action Plan to Strengthen Internal Controls................................................................. 5–6 Regional Director’s Compliance Team ................................................................................... 7–8 Member States’ Responsibility for Direct Financial Cooperation (DFC) agreements .......... 9–10 Status of External and Internal Audits ................................................................................. 11–12 Page ANNEX: Status of implementation of internal and external audit recommendations – as at 26 June 2013 .............................................................................................................. 3
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BACKGROUND 1. This information document has been prepared in accordance with a request by the Fiftyseventh session of the Regional Committee in 2007 for a regular update of its members on progress made in strengthening compliance with administrative rules, regulations, policies and procedures. The document sets forth the challenges and achievements in the area of compliance management since the last session of the Regional Committee in Angola in November 2012 and provides an update on the status of implementation of the recommendations of internal audits and external audits. 2. As part of the ongoing WHO management reform, WHO headquarters and all WHO regions have increased their efforts to strengthen compliance management, taking into account the new Global Management System (GSM) environment and the scarcity of the available financial resources. Risk and compliance management remains a priority for WHO budget centres in the African Region. ACHIEVEMENTS IN COMPLIANCE MANAGEMENT WHO Management Reform – Accountability and Transparency 3. The Sixty-sixth World Health Assembly that took place in Geneva from 20 to 28 May 2013 discussed audit and compliance issues in both its Committees A and B. Committee A addressed accountability and transparency issues. In particular, WHO committed itself, among other things, to establishing a new Compliance, Risk Management and Ethics Office at WHO headquarters; further issuing Standard Operating Procedures in areas such as Travel, Procurement, Human Resources and Finance; developing an Organization-wide risk register; and recruiting additional staff for the Office of Internal Oversight Services (IOS). The above measures are intended to further strengthen risk management in WHO including the African Region in addition to ensuring considerable increase in audit coverage for WHO country offices. 4. Committee B considered the reports of the internal auditors and external auditors. The Report of the Internal Auditors (World Health Assembly document A66/35) mentioned in particular the Regional Office for Africa (AFRO), the Intercountry Support Team/West Africa and the WHO country offices (WCOs) in Mozambique, Liberia, Central African Republic and Uganda. It highlighted audit queries on eImprest, procurement, Direct Financial Cooperation and inventory management. The Report of the External Auditors (World Health Assembly document A66/58) mentioned in particular AFRO and WCO/Ghana and made reference to audit queries on eImprest, inventory management and Direct Financial Cooperation. AFRO Action Plan to Strengthen Internal Controls 5. Analysis of the queries raised by the Internal Auditors and External Auditors in 2012 showed that similarities in control weaknesses exist in many WHO country offices in the African Region. This analysis was confirmed during compliance missions conducted by the Regional Director’s Compliance Team which found that the weaknesses have common root causes such as unclear definition of responsibility, inadequate control procedures and tools, and shortcomings in supervision and compliance management.
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6. Consequently, the relevant Units in the Regional Office’s General Management Cluster and the Regional Director’s Compliance Team will be strengthened to enhance oversight over country office operations and to overcome generic weaknesses in risk management at WHO country offices and the Regional Office, especially in areas such as eImprest accounts, Logistics, Inventory, Procurement, Travel and Human Resources management. Regional Director’s Compliance Team (CT/RDO) 7. The Regional Office has a Compliance Team with three audit professionals and support staff to manage AFRO’s compliance programme on a day-to-day basis and to serve as the focal point for all compliance issues in the African Region. The Compliance Team, which reports directly to the Regional Director, is headed by a senior compliance officer. 8. During the reporting period, the Compliance Team carried out compliance reviews of WHO country offices in Gabon, Uganda, Tanzania, Comoros and IST/Central Africa. The Compliance Team also reviewed selected activities in the Regional Office and assisted Regional Office managers to close old audit reports. In addition, the Compliance Team participated in training and staff meetings to raise awareness among Regional Office staff of internal controls and other compliance issues.
Member States’ Responsibility for Direct Financial Cooperation (DFCs) agreements
9. In the past years, WHO Member States have frequently stressed the importance of an effective framework for internal control of WHO activities. Direct Financial Cooperation (DFC) agreements with governments have, in this context, received more and more scrutiny from auditors especially in the Africa Region where DFC constitutes the second highest area of expenditure after staff-related expenses. The late submission or non-submission of financial and technical reports by Member States justifying the use of DFC funds has been the subject of audit queries. 10. In November 2012, WHO drew the attention of the honourable ministers to outstanding DFC advances in their respective countries. Since then, progress has been made and the total amount of outstanding DFC expenditures has decreased. However, to avoid audit queries in the future, further progress needs to be made and WHO country offices will continue to work closely with their counterparts in the national ministries of health to ensure effective accounting for these expenditures. Status of External and Internal Audit
11. Internal and external audit reports are important management tools for continuous improvement of compliance and risk management in the African Region. The Regional Office has been able to close all internal audit reports issued prior to 2012. Significant efforts are currently underway to close all audit reports issued during 2012. 12. The Regional Committee is invited to take note of this information document and provide any specific guidance to the Regional Office, as appropriate.
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Annex: Status of Implementation of External and Internal Audit Recommendations as at 26 June 2013
Nº Internal Audits 1
Audit title
Audit report time
Audit report number
No of recommendations (1)
Closed to date (2) 0
Open recommendations (3)=(1)-(2) 32
Comments
Integrated Audit of WHO in Angola Regional Office for Africa PostGSM implementation Integrated audit of WHO in Uganda WHO Country Office in Central African Republic WHO Country Office in Mozambique Intercountry Support Team for West Africa WHO Country Office in Guinea WHO Country Office in Liberia WHO Country Office in Burundi
Feb. 2012
11/872.
32
2.
March 2012
11/874
46
1
45
3.
June 2012
12/883
32
4
28
4.
July 2012
12/891
53
8
45
5.
Nov. 2012
12/903
52
13
39
Implementation and communication between WCO and IOS ongoing. Implementation and communication between WCO and IOS ongoing Implementation and communication between WCO and IOS ongoing Implementation and communication between WCO and IOS ongoing Implementation and communication between WCO and IOS ongoing Not yet due
6.
Jan. 2013 March 2013 Jan. 2013 April 2013
11/882
9
9
7. 8. 9. External Audits
12/904 12/908 13/915
25 28 35
25 28 35
Not yet due Not yet due Not yet due
1
Management letter on the audit of the Regional Office Management letter on the audit of the Country Office/Ghana
April 2013
MLFY201224
33
33
2
April 2013
Implementation and communication between the Regional Office and external auditors ongoing. Implementation and communication between WCO and external auditors ongoing.