103rd Session Agenda item 4
EB103.R8 29 January 1999
Establishment of Audit Committee The Executive Board, Recalling earlier discussions on the subject of establishing an audit committee for the purpose of strengthening the Board’ s oversight role in financial matters; Noting the report by the Secretariat on the matter,1 DECIDES to establish an audit committee, as a separate committee set up by the Executive Board, composed of six members, one from each of the WHO regions, with the terms of reference set out below: (1) Objectives The objectives of the Audit Committee, in matters relating to external and internal audit, are: C to assist the Board in providing oversight of the Organization’ s financial and managerial operations; C to promote accountability and transparency in financial transactions; C to facilitate timely communication and corrective action. (2) Scope and functions
The Audit Committee shall devote its attention to both external and internal audit plans and activities, the review of internal controls, and the monitoring of corrective action. Within this framework, the functions of the Committee shall be: C to assist the Board, and through it the Health Assembly, to make informed decisions with regard to the financial and managerial policies and practices of the Organization; C to assess the extent of the maintenance of effective financial controls; C to assess the effectiveness of both external and internal annual audit coverage, ensuring that emphasis is laid on areas where the Committee believes special attention is necessary;
EB103.R8
C to review the scope and outcome of such audits as it deems appropriate, and their follow-up by the Secretariat; C to report to the Board on any matters arising from the above functions, and to submit such conclusions and recommendations thereon as the Committee deems appropriate. (3) Membership, selection and terms of office
Membership on the Audit Committee shall be open both to full members of the Board and to their alternates. In order to ensure the best quality of its members, candidatures for the Audit Committee shall be backed up by standard curricula vitae, highlighting the candidates’ background in financial, audit and managerial matters. The External Auditor shall participate in the meetings as an observer. Selection of members of the Audit Committee shall be undertaken during the short session of the Executive Board, immediately after the annual Health Assembly. A first meeting to constitute the Committee and select a Chairman should also be held at that time. Two other meetings of the Audit Committee shall be held annually, one immediately before the opening of the Health Assembly and one before the January session of the Board. The term of office of members of the Audit Committee shall be as determined by the Board in each instance, but, in order to ensure continuity, it would preferably be for at least two years.
Ninth meeting, 29 January 1999 EB103/SR/9
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