Report of the External Auditor: report of the Programme, Budget and Administration Committee of the Executive Board to the Seventy-first World Health Assembly

SEVENTY-FIRST WORLD HEALTH ASSEMBLY A71/48 Provisional agenda item 16.1 21 May 2018 Report of the External Auditor Report of the Programme, Budget and Administration Committee of the Executive Board to the Seventy-first World Health Assembly 1. The External Auditor introduced the report,1 highlighting its unmodified audit opinion on the Organization’s financial statements for the financial year 2017, in compliance with the International Public Sector Accounting Standards (IPSAS). The External Auditor commended WHO for good financial management activities such as the Global Inventory Management System and improvements highlighted in the 2017 Statement of Internal Control. Regarding procurement, the External Auditor pointed out that the framework and policies on procurement are now in place at global level, and future audits will need to consider progress of implementation. 2. The Committee welcomed the report and the External Auditor’s recommendations, and urged their prompt implementation. It also noted with appreciation that 58% of External Audit recommendations of prior years have been implemented, 19% are closed and only 6 (or 23%) are still in progress. 3. The Committee expressed its appreciation for the work done and encouraged the Secretariat to continue to follow up with outstanding direct financial cooperation reports at the country level, which remain of concern to Member States, despite the good progress in this area. In that regard, the Secretariat reiterated its commitment towards full compliance and highlighted the shared responsibility with hosting countries. RECOMMENDATION TO THE HEALTH ASSEMBLY 4. The Committee, on behalf of the Executive Board, recommended that the Health Assembly adopt the following draft decision: The Seventy-first World Health Assembly, having considered the report of the External Auditor to the Health Assembly; 1 and having noted the report of the Programme, Budget and Administration Committee of the Executive Board to the Seventy-first World Health Assembly, 2 decided to accept the report of the External Auditor to the Health Assembly. = = = 1 Document A71/32. 2 Document A71/48.