Eightieth session
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* Reissued for technical reasons on 17 September 2025. ** . |
Item 135 of the provisional agenda**
Review of the efficiency of the administrative and financial functioning of the United Nations
Activities of the Independent Audit Advisory Committee for the period from 1 August 2024 to 31 July 2025
Report of the Independent Audit Advisory Committee
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Summary |
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The present report covers the period from 1 August 2024 to 31 July 2025. During the reporting period, the Independent Audit Advisory Committee held four sessions, which were chaired by Anton V. Kosyanenko (Russian Federation), with Suresh Sharma (Nepal) as Vice-Chair. The other Committee members attended all of the sessions. |
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Section II of the report contains an overview of the activities of the Committee, while section III sets out the detailed observations, recommendations and conclusions of the Committee. Section IV provides an overview of the Committee¡¯s plans for 2026. |
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Contents
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Annex |
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Workplan of the Committee from 1 August 2025 to 31 July 2026........................ |
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I. Introduction
1. The General Assembly, by its resolution , established the Independent Audit Advisory Committee as a subsidiary body to serve in an expert advisory capacity and to assist it in fulfilling its oversight responsibilities. By its resolution , the Assembly approved the terms of reference for the Committee.
2. In accordance with its terms of reference, the Committee submits an annual report containing a summary of its activities and related advice to the General Assembly. The present eighteenth annual report covers the period from 1 August 2024 to 31 July 2025.
3. The Committee is required to advise the General Assembly on management¡¯s compliance with audit and other oversight bodies¡¯ recommendations; the effectiveness of the internal oversight function; risk management procedures; deficiencies in the internal control systems; the operational implications of the issues and trends set out in the financial statements and the reports of the Board of Auditors; and the appropriateness of the accounting and disclosure practices in the Organization. The Committee also advises the Assembly on the steps necessary to facilitate cooperation among the oversight bodies. In accordance with General Assembly resolution , paragraph 65, the Committee also advises the Assembly on measures to strengthen the independence of the Ethics Office.
II. Activities of the Independent Audit Advisory Committee
4. During the reporting period, the Committee held four sessions. One of its sessions (the seventieth session) was held at the headquarters of the Economic Commission for Africa headquarters in Addis Ababa.
5. During the sixty-eighth session, in December 2024, the members unanimously elected Anton V. Kosyanenko (Russian Federation) as Chair and Suresh Sharma (Nepal) as Vice-Chair for 2025. Furthermore, the Committee co-hosted, jointly with the Universal Postal Union, the ninth meeting of the representatives (Chairs or members) of the United Nations system oversight committees to discuss best practices, lessons learned and other issues of importance to the United Nations oversight community. Additional information about the Committee can be found on its website ().
6. During the reporting period, the Committee published three reports: the Committee¡¯s annual report to the General Assembly for the period from 1 August 2023 to 31 July 2024 (); and two reports to the Assembly, through the Advisory Committee on Administrative and Budgetary Questions, on the proposed budget of the Office of Internal Oversight Services (OIOS) under the support account for peacekeeping operations for the period from 1 July 2025 to 30 June 2026 () and the proposed programme budget of OIOS for 2026 ().
III. Observations and recommendations of the Committee
7. Section III of the present report covers six major areas consistent with the Committee¡¯s terms of reference, namely, recommendations of United Nations oversight bodies; the effectiveness of the internal oversight function; the ethics function; risk management and the internal control framework; financial reporting; and cooperation and coordination among oversight bodies, as well as other, related topics.
A. Status of the recommendations of United Nations oversight bodies
8. The Committee is mandated to advise the General Assembly on measures to ensure the compliance of management with audit and other oversight recommendations. The Committee maintains that when the observations made by the oversight bodies are fully addressed in a timely manner, the likelihood of the Organization achieving its objectives is greatly enhanced.
9. During the reporting period, the Committee reviewed the status of implementation by management of the recommendations of United Nations oversight bodies. The Committee notes that, overall, implementation of the recommendations of the Board of Auditors, OIOS and the Joint Inspection Unit has improved, except in the case of a few entities that exhibited concerning trends. The Committee encourages management to make significant progress with regard to such entities.
Board of Auditors
10. The Committee received the advance copies of the reports of the Board of Auditors for the period ending 31 December 2024. According to the concise summary of the principal findings and conclusions for the annual financial period 2024 (), the average implementation rate of outstanding prior period recommendations for the entities under the Secretariat¡¯s purview[1] was 44 per cent in 2024 ¨C a slight improvement over the previous year¡¯s rate of 42 per cent (although this is still below the overall average of 52 per cent). As shown in the trend analysis below, this rate continues to lag behind that of entities outside the Secretariat¡¯s purview, which stood at 61 per cent, although the gap is narrowing (see figure I).
Figure I
Trends in the implementation rate of recommendations of the Board of Auditors, 2019¨C2024
Source: Concise summary of the principal findings, conclusions and recommendations contained in the reports of the Board of Auditors for the annual financial period 2024 ().
11. The Committee commends management for the effort it has put into improving the implementation rate of recommendations under the Secretariat¡¯s purview. The Committee, however, believes that there is still room for improvement and recommends that entities under the Secretariat¡¯s purview intensify efforts to implement outstanding recommendations, with a particular focus on addressing systemic barriers to implementation.
12. The rates of implementation of recommendations by underlying entities varied widely, even among those entities under the Secretariat¡¯s purview. For instance, while the implementation rate of regular budget (volume I) recommendations has steadily improved since 2021 (from 35 per cent to 45 per cent), the rate for peacekeeping budget (volume II) recommendations has steadily declined during that time. Specifically, the implementation rate for peacekeeping recommendations dropped from a high of 60 per cent in 2021 to a low of 26 per cent (see table 1).
13. The Committee recommends that targeted measures be developed to address the declining implementation rate of peacekeeping budget (Volume II) recommendations. This should include a root cause analysis of the barriers to implementation, enhanced oversight mechanisms, and strengthened coordination between relevant departments.
Table 1
Status of implementation of outstanding recommendations of the Board of Auditors for entities under the purview of the Secretariat
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Total number of recommendations |
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Implementation rate (percentage) |
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2024 |
2023 |
2022 |
2021 |
2020 |
2019 |
2024 |
2023 |
2022 |
2021 |
2020 |
2019 |
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United Nations (Vol. I) |
187 |
220 |
262 |
278 |
279 |
224 |
45 |
40 |
42 |
35 |
34 |
22 |
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United Nations peacekeeping operations (Vol. II) |
53 |
41 |
41 |
89 |
116 |
103 |
26 |
32 |
46 |
60 |
36 |
23 |
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ITC |
16 |
16 |
19 |
21 |
23 |
17 |
56 |
44 |
42 |
38 |
30 |
24 |
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UNEP |
40 |
52 |
52 |
85 |
84 |
35 |
55 |
48 |
42 |
68 |
42 |
31 |
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UN-Habitat |
58 |
72 |
79 |
88 |
66 |
38 |
38 |
47 |
43 |
40 |
5 |
8 |
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UNODC |
25 |
24 |
33 |
29 |
41 |
50 |
44 |
42 |
67 |
45 |
61 |
42 |
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IRMCT |
25 |
23 |
25 |
32 |
29 |
19 |
64 |
43 |
24 |
41 |
28 |
37 |
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Total |
404 |
448 |
511 |
622 |
638 |
486 |
44 |
42 |
43 |
45 |
34 |
24 |
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Source: Concise summary of the principal findings, conclusions and recommendations contained in the reports of the Board of Auditors for the annual financial period 2024 ().
Abbreviations: ITC, International Trade Centre; UNEP, United Nations Environment Programme; UN-Habitat, United Nations Human Settlements Programme; UNODC, United Nations Office on Drugs and Crime; IRMCT, International Residual Mechanism for Criminal Tribunals.
14. With regard to its recommendations pertaining to Secretariat operations as reported in volume I (see ), the Committee was informed that for the year ended 31 December 2024, out of 187 prior-period recommendations, 84 (45 per cent) had been assessed as fully implemented, compared 40 per cent in 2023. Additionally, 17 recommendations (9 per cent), including 3 long-outstanding recommendations, had been overtaken by events. The Committee was further informed that, of the 86 prior period recommendations still under implementation, 8 (down from 11 reported last year) had remained outstanding for 7 to 10 years, having been issued between 2015 and 2019.
15. The Committee continues to be concerned about the relative utility and relevance of the recommendations that have been outstanding for almost 10 years. The Committee recommends that particular attention be given to resolving long-outstanding recommendations, particularly those pending for more than seven years. A focused action plan should be developed to (a) evaluate whether these long-outstanding recommendations are still relevant; and (b) address persistent implementation barriers, including by assigning clear accountability, setting time-bound targets and conducting periodic progress reviews. Addressing these legacy issues is essential to improving overall audit responsiveness and institutional accountability.
16. With respect to volume II recommendations, the Committee was informed that, for the year ending 30 June 2024, only 14 of the 53 prior period recommendations (26 per cent) had been assessed as fully implemented. This is a decline from the 38 per cent implementation rate reported in the 2023/24 fiscal year and a significant decline from the high of 60 per cent reported in 2021. One recommendation was noted as having been overtaken by events.
17. The Committee also expressed concern regarding the low implementation rates observed for the United Nations Human Settlements Programme (UN-Habitat) and the United Nations Office on Drugs and Crime (UNODC). In response, the Administration informed the Committee that, as part of its continuous improvement efforts, the Business Transformation and Accountability Division of the Department of Management Strategy, Policy and Compliance is enhancing oversight coordination. This includes adopting a more proactive approach to supporting managers in improving performance related to the closure of outstanding recommendations.
18. Considering the declining recommendation implementation rate for peacekeeping operations and persistent challenges faced by entities such as UN?Habitat, the Committee notes the efforts being made by the Business Transformation and Accountability Division and recommends that the Department of Management Strategy, Policy and Compliance enhance managerial support and training to address recurring implementation barriers, and that it continue to identify systemic issues contributing to delays.
Office of Internal Oversight Services
19. In its report on activities for the 2023/24 period (), the Office of Internal Oversight Services (OIOS) noted that 99.4 per cent of its recommendations had been accepted by management. This is consistent with the previous three reporting periods, during which acceptance rates were similarly close to 100 per cent.
20. In paragraph 24 of its report contained in document , the Committee recommended that ¡°OIOS continue to evaluate its policy on long-outstanding recommendations with a view to analysing the root cause as to why some recommendations stay unimplemented for such a long time¡±. OIOS informed the Committee that it had made recent changes to the way it formulated its recommendations, with the aim of ensuring that they were actionable within 24 months. According to OIOS, these improvements are intended to reduce the number of recommendations closed without implementation and to improve the overall implementation rate.
21. In its report , OIOS reported that 289 recommendations (24 per cent) remained outstanding for more than two years, including 113 (9 per cent) that had been outstanding since 2020. Upon follow-up, the Committee was informed that OIOS had worked with all entities with recommendations older than 48 months to identify appropriate remedial actions, such as reformulation, revised target dates, or closure (in cases where the risk had been addressed or was no longer present). OIOS indicated that, as a result, only 19 such recommendations remained open at the beginning of the most recent review exercise, most of which related to regulatory framework or policy matters (including information and communications technology (ICT) governance).
22. The Committee acknowledges the efforts made by OIOS to ensure that its recommendations are actionable within a two-year time frame. It also recognizes the progress achieved in addressing long-outstanding recommendations and encourages OIOS and management to continue this momentum.
23. The Committee recommends that OIOS, in collaboration with relevant entities, continue to prioritize the timely implementation of long-outstanding recommendations. Particular attention should be given to those older than 48 months, with a view to achieving full resolution through targeted follow-up, periodic progress reviews and, where appropriate, reformulation or closure.
Joint Inspection Unit
24. In its annual report for 2024 and programme of work for 2025 (), the Joint Inspection Unit observed a decline in the average acceptance rate of its recommendations for system-wide reports and notes covering multiple organizations. Specifically, the acceptance rate fell from 76.5 per cent for the period 2015¨C2022 to 74 per cent for the period 2016¨C2023. However, the implementation rate for the same period showed a modest improvement, rising from 79.4 per cent to 80.1 per cent.
25. The Joint Inspection Unit also reported an increase in the proportion of recommendations for which entities provided no data. This figure rose from 7.5 per cent in the 2015¨C2022 period to 10.2 per cent in the 2016¨C2023 period, indicating a concerning trend in reporting compliance.
26. Figure II presents an eight-year trend analysis, by year. The data reflect a troubling trajectory: since 2019, the number of recommendations for which there was no reported information has steadily increased, while the number of accepted recommendations has continued to decline. If this pattern continues, the number of recommendations for which no data is available may soon surpass those that are accepted.
Figure II
Trends in the rate of acceptance of and availability of information concerning recommendations of the Joint Inspection Unit, 2016¨C2023
Source: Report of the Joint Inspection Unit for 2024 and programme of work for 2025 ().
27. The Committee discussed this trend with the Joint Inspection Unit and was informed that there was a delay in entities entering information in the Unit¡¯s web-based system used for tracking recommendations. The Unit further noted that the new recommendation tracking system, when finalized and rolled out, should help facilitate entry of information.
28. While the average implementation rates of accepted Joint Inspection Unit recommendations have consistently remained high, the Committee believes that the trend of declining acceptance rates and rising non-response rates poses a risk as far as accountability is concerned and reduces the effectiveness of the oversight mechanism itself. The Committee calls on management to address this matter as an issue of priority.
29. In its report on its activities for the 2020/21 period (), the Committee expressed concern over the persistently low acceptance rate of Joint Inspection Unit recommendations by certain entities under the Secretariat¡¯s purview, notably UNODC and UN-Habitat. The Committee subsequently recommended that the Unit, the Secretariat and the entities concerned jointly examine the causes of the low acceptance and implementation rates.
30. The Committee observed some progress in the average acceptance rates for some entities and a downturn in the rates of others. Of particular concern to the Committee was the growing percentage of recommendations for which the Joint Inspection Unit listed the status as ¡°information not available¡±. This lack of response remains troubling, especially in the case of UN-Habitat, in whose case there had been no formal response to over 70 per cent of recommendations for the last three periods. (see figure III).
Figure III
Percentage of Joint Inspection Unit recommendations for which information was not available
Source: Report of the Joint Inspection Unit for 2024 and programme of work for 2025 ().
Abbreviations: ITC, International Trade Centre; UNCTAD, United Nations Conference on Trade and Development; UNEP, United Nations Environment Programme; UN-Habitat, United Nations Human Settlements Programme; UNODC, United Nations Office on Drugs and Crime.
31. The Committee followed up with the Joint Inspection Unit and management on the status of the acceptance and implementation rate and was informed that management had taken note of the status of acceptance and implementation rates pertaining to the Secretariat and other entities under its purview and would continue to engage with the relevant entities to enhance their implementation efforts ahead of the Unit¡¯s next annual report.
32. The Committee notes an overall improvement in the acceptance and implementation rates of Joint Inspection Unit recommendations. The Committee, however, is concerned that despite the remedial efforts aimed at the underperforming entities, these efforts have had negligible improvement in the case of UN-Habitat. The Committee calls on the Management Committee to review and address the challenges associated with those entities¡¯ acceptance and implementation of the Unit¡¯s recommendations.
B. Effectiveness, efficiency and impact of the audit, investigation, inspection and evaluation activities of the Office of Internal Oversight Services
33. Under its terms of reference, the Committee has the responsibility to advise the General Assembly on aspects of internal oversight (resolution , annex, para. 2 (c)¨C(e)). In fulfilling that mandate, the Committee has maintained its standard practice of meeting with the Under-Secretary-General for Internal Oversight Services and other senior OIOS officials during its sessions. The discussions have been focused on the OIOS workplan and budget execution, significant findings reported by OIOS, operational constraints (if any), post-incumbency, the status of implementation by management of OIOS recommendations, including critical recommendations, and the strengthening of the investigations function.
34. During the current period, the Committee continued to focus its assessment on (a) risk-based planning, OIOS effectiveness and performance measurement; (b) the quality and impact of OIOS recommendations; (c) matters associated with the Investigations Division; and (d) the role of OIOS in the context of the 2030 Agenda for Sustainable Development. The assessment continued to be conducted against the backdrop of the OIOS priorities referred to in paragraph 3 of the report of the Committee entitled ¡°Internal oversight: proposed programme budget for 2025¡± ().
External quality assessments
Overall assessment of the Office of Internal Oversight Services
35. The Committee continued to follow up with OIOS on the status of the comprehensive review of the Office, which will integrate the findings of the three external quality assessments of its divisions. The Committee was informed that the review, which was intended to evaluate OIOS overall, had commenced, but that the engagement of the review panel had been paused so that developments related to the UN80 Initiative could be taken into account. The target completion date for the review is still set for 2026.
36. Given the critical importance of this review in assessing the overall effectiveness, governance and accountability of OIOS, the Committee strongly recommends that the review process be prioritized and expedited. Any delays risk undermining the value of the external quality assessments and the potential enhancements to the oversight function. Timely completion is essential to ensure that insights gained can meaningfully inform ongoing reforms and strengthen the Office¡¯s capacity to deliver on its mandate.
37. Following the completion of the external assessment of all three divisions of OIOS, the Committee discussed further the status of implementation of the recommendations that arose from the reviews.
Assessment of the Investigations Division
38. With respect to the external quality assessment of the Investigations Division, the Committee was informed that 15 of the 22 recommendations had been implemented, while three policy recommendations addressed to the Secretariat had been closed without implementation. The recommendations closed without implementation related to the sharing of investigation reports with the subjects and the requirement to use alternative dispute resolution mechanisms, including prior to filing complaints. According to OIOS, the Office and the Administration expect to complete the implementation of the remaining four recommendations by 31 December 2025.
39. The Committee notes the effort OIOS has put into implementing the recommendations of the external quality assessments of the Investigations Division. The Committee will continue to monitor OIOS progress in implementing the remaining recommendations and will inquire of OIOS why certain recommendations were closed without implementation and whether actions should be taken in those areas.
Assessment of the Internal Audit Division
40. With respect to the external quality assessment of the Internal Audit Division, the Committee was informed that nine recommendations had been issued, addressing both attribute and performance standards. As of the reporting date, three of the recommendations had been implemented, while the remaining six were still in progress. In its report , the Committee noted that all but one of the recommendations were expected to be implemented by 31 December 2024. However, upon follow-up, the Committee was informed that the target date for implementing the remaining recommendations had been extended to 31 December 2025.
41. Given the importance of these recommendations in enhancing the effectiveness and credibility of the Internal Audit Division, the Committee urges OIOS to prioritize and expedite implementation to ensure timely improvements in audit quality and performance.
Assessment of the Inspection and Evaluation Division
42. The committee was informed that the external quality assessment of the Inspection and Evaluation Division had resulted in recommendations in seven broad areas, which the Division had operationalized into an action plan with 25 different initiatives. OIOS noted that 13 initiatives had already been implemented, and nearly all of the remaining 12 were in progress and on track for completion by the second quarter of 2026. The initiatives that have been implemented fall under two general recommendations in the areas of balancing learning and accountability objectives through clear strategies and guidelines, and enhancing evaluation support services.
43. The 12 outstanding initiatives come under five broad areas, as follows: (a) enhancing outcome-focused evaluations with standardized principles and training; (b) strengthening strategic planning and alignment with Secretariat needs; (c) optimizing resource utilization and efficiency by streamlining processes and improving knowledge-sharing; (d) enhancing external relations and visibility through improved communication strategies and broader dissemination of findings; and (e) diversifying and strengthening evaluation methodologies, including through better documentation.
44. Given the importance of addressing the findings from the external quality assessment of the Inspection and Evaluation Division, the Committee calls on OIOS to ensure the timely implementation of the remaining recommendations as a matter of priority.
Effectiveness of the investigations function
45. The Committee continued to examine some of the indicators being used by OIOS, including the timeliness of completing investigations and referrals to gauge the effectiveness of the investigations function. The Committee continued to advocate timeliness for the completion of oversight work (in the present case, investigations) as an essential element of an effective accountability system. During the reporting period, the Committee met with senior officials both at Headquarters and at a field mission. During the discussions, the main concerns of the Committee were: (a) the rapid growth in the number of cases reported; (b) the length of time taken for investigations; (c) the number of cases referred back to management; (d) the number of fraud and presumptive fraud investigations; (e) the staffing situation; and (f) the implementation of external quality assessment recommendations.
Growth in the caseload
46. The Committee, in its previous reports, indicated that it was concerned about the rapid growth in the number of cases reported, the number of referrals back to management and the overall investigation workload. During the reporting period, the Committee continued to follow up with OIOS regarding these trends. The Committee was provided with the case intake trend analysis for the period 2017¨C2025. According to OIOS, a record was expected to be set in 2025 for the total case intake, referrals back to management and investigation decisions. As shown in table 2, the total expected intake for 2025 reflects a 185 per cent increase since 2017, with corresponding increases of 190 per cent for referrals and 266 per cent for investigation decisions.
Table 2
Office of Internal Oversight Services investigation case volume and status, 2017 compared with 2025
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2017 |
2025 |
Change (percentage) |
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Total case intake |
656 |
1 868 |
185 |
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Referrals back to management |
294 |
854 |
190 |
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Investigation decisions |
152 |
556 |
266 |
Source: Briefing on OIOS activities.
47. The Committee was informed that the increase in the number of reported complaints could be considered a positive indicator of a maturing system, reflecting growing staff confidence in the accountability framework, greater staff awareness of the obligation to report misconduct, and more accessible and user-friendly reporting mechanisms. However, the Committee observes that a pressing concern accompanies these trends: the limited resources available to manage the rising caseload. Without adequate staffing and support, there is a heightened risk of investigator burnout, delays in completing investigations and a potential erosion of the accountability framework. The Committee emphasizes that sustaining the integrity of the system would require an investment in resources combined with efficiencies and improvements in the process to ensure timely, thorough and credible investigations.
48. The Committee, in its report , while reiterating its concern over the rising volume of complaints received by the Investigations Division, urged OIOS to conduct a comprehensive analysis of its caseload.
49. The Committee continues to believe that these trends are unsustainable. The Committee therefore reiterates its recommendation that OIOS perform an analysis of its caseload to gain insights about possible root causes. This analysis should go beyond surface-level trends and examine systemic, organizational and behavioural factors contributing to the increased caseload. Following such analysis, OIOS is encouraged to coordinate with management and other stakeholders to discuss the factors contributing to the ever-increasing caseload and make proposals to the appropriate bodies, if required. In the meantime, the Committee further recommends that OIOS continue to prioritize high-risk and high-impact cases in order to manage the growing backlog more effectively, while exploring opportunities to streamline the investigative processes.
Length of investigations
50. The Committee continues to follow up with OIOS regarding the trends in the completion and ageing of cases. The Committee was informed that, as at 30 June 2025, the average time taken to complete investigations had improved, decreasing from 15.8 months in the previous reporting period to 11.4 months. Similarly, the average age of cases had fallen from 11 months to 7.5 months. These improvements are noteworthy, particularly given that the overall caseload increased during the same period. In paragraph 40 of its report , the Committee recognized that investigation timelines are influenced by factors such as case complexity and information availability but, nonetheless, reiterated its recommendation to further reduce the average time it takes to complete investigations.
51. The Committee continues to be of the view that timeliness of investigation is an essential element of an accountable Organization, as it minimizes impunity. Hence, an average completion time of 11.4 months is still problematic. The Committee is aware that improving timeliness would involve, inter alia, additional resources, which the Committee has consistently supported. The Committee, however, believes that addressing the root causes of the growing caseload is also a key factor in addressing the issue of the timeliness of completing investigations.
Independence of the Office of Internal Oversight Services
52. One of the key pillars for the independence of OIOS is the single fixed-term non-renewal appointment of the head of OIOS, as provided for in paragraph 5 (b) (iii) of General Assembly resolution B.
53. This provision is intended to ensure that the incumbent remains independent and can provide objective advice to both the General Assembly and the Secretary-General, free from influence or expectation of reappointment. It serves as a cornerstone of the perceived and actual independence of the head of OIOS. The decision of the Assembly at its seventy-ninth session to approve the extension of the incumbent for a two-year period deviates from this provision. The Committee is concerned that the extension of a fixed-term appointment could raise questions about the independence of the Office.
C. Ethics function
54. In paragraph 65 of its resolution , the General Assembly approved a new mandate for the Committee, aimed at strengthening the independence of the Ethics Office. This includes direct presentation of the Office¡¯s annual report to the General Assembly and an enhanced role for the Independent Audit Advisory Committee in reinforcing the accountability framework. The Committee continues to engage with the Ethics Office and relevant stakeholders to monitor and assess developments concerning the Office¡¯s status.
55. The Committee was informed that, through these engagements, particularly with field office personnel, regular interaction with the Ethics Office had contributed to increased transparency and bolstered participation in key initiatives.
56. The Director of the Ethics Office reaffirmed the Office¡¯s commitment to implementing its core initiatives, including the financial disclosure programme, protection against retaliation, advisory support to staff on ethical matters, and the leadership dialogue. He also highlighted the Office¡¯s active role in fostering international collaboration, notably by participating in the Ethics Network of Multilateral Organizations, chairing the Ethics Panel of the United Nations and contributing to policy development, training efforts and workplace protection strategies.
57. While the Committee acknowledged ongoing efforts to promote ethical awareness through training, it was informed that staff participation was frequently hindered by heavy workloads, which limited access to these programmes.
58. The Committee expressed concern regarding the effectiveness of the protection against retaliation programme, particularly considering the low confirmation rate of initial complaints. Given the considerable investigative efforts involved, a high rate of unconfirmed cases could indicate potential systemic shortcomings. As a result, the Committee will seek further information and continue to examine this matter. Additionally, the Committee urged the Director to enhance reporting mechanisms, focusing not only on outputs, but also on tangible outcomes and impacts of the Office¡¯s activities.
D. Risk management and internal control framework
59. The terms of reference of the Committee require the Committee to advise the Assembly on the quality and overall effectiveness of risk management procedures and on deficiencies in the internal control framework of the United Nations (see General Assembly resolution , annex, para. 2 (f) and (g)).
Enterprise risk management
60. The Committee has long recognized enterprise risk management as a vital and integral management tool for the Organization. It has consistently emphasized the need for sustained attention and leadership from top management to ensure that risk identification and mitigation become standard practices across all levels of the Organization. During the current reporting period, the Committee continued its engagement with management to monitor progress in embedding enterprise risk management as a core component of organizational decision-making.
61. The Committee was informed that a revised enterprise risk management risk register was approved on 16 July 2025, in line with the principle that the register is a living document. The updated register identifies 14 critical risks, assigned to 11 corporate risk owners, and 24 very high risks.
62. At the entity level, the Committee was informed that 65 Secretariat entities have established risk registers and corresponding governance mechanisms. Furthermore, 36 of the 40 entities with very high risks have developed and finalized their risk response plans. The Business Transformation and Accountability Division is actively working with the remaining four entities to close this gap.
63. The Committee commends the progress made in institutionalizing enterprise risk management across the Secretariat, particularly the approval of the revised risk register and the widespread establishment of entity-level risk registers and governance structures. The Committee continues to be of the view that embedding and mainstreaming enterprise risk management activities more deeply into the culture and operations of the Organization will enhance resilience, strategic foresight and overall effectiveness. To build on this momentum, the Committee recommends that senior leadership continue to champion enterprise risk management as a strategic management tool, ensuring that it remains integrated into planning, budgeting and performance monitoring processes; that the Business Transformation and Accountability Division accelerate support to the remaining entities to finalize their risk response plans, with clear timelines and accountability; and that periodic reviews and updates of the risk register continue to be made, to reflect the evolving risks and ensure responsiveness.
Initiatives to strengthen the enterprise risk management process
64. The Committee was informed that the roll-out of the Umoja enterprise risk management module was progressing steadily, with 54 of the 57 initially selected entities now using the module. According to the Business Transformation and Accountability Division, the module serves as a centralized repository for standardized risk information, facilitates consistent reporting and supports the overall enterprise risk management process. The Division is also supporting the ongoing migration of entity-level risk registers to the Umoja platform, thereby improving the quality and consistency of data and alignment with the Organization¡¯s internal control framework.
65. Regarding the statement of internal control, the Committee was informed that the Business Transformation and Accountability Division, in close collaboration with the Office of the Controller, continued to strengthen the alignment between enterprise risk management and the statement of internal control. Internal controls associated with risks identified in both Secretariat-wide and entity-level registers had been harmonized, and their effectiveness was assessed annually through the statement of internal control process. The Business Transformation and Accountability Division and the Office of Programme Planning, Finance and Budget jointly reviewed and validated those controls on the basis of the internal control framework, following which they were made available in the Umoja enterprise risk management tool for assignment to relevant risks.
66. The Committee was also informed that the Administration had launched the enterprise risk management module within the management dashboard, a centralized platform for organizational performance information. This module was designed to help entities monitor critical risk areas. The module, which is updated daily from the Umoja risk management solution, provided a granular view of individual risks at the entity level.
67. On risk mitigation in information technology and cybersecurity, the Committee was informed that the terms of reference for ICT governance bodies had been updated, and all relevant bodies and committees were currently active. Guidance had also been issued to support the establishment of local ICT governance frameworks across entities. The Committee was further informed that all mitigation actions related to ICT governance and cybersecurity risks were currently on track.
68. The Committee commends the significant progress made in strengthening enterprise risk management across the Secretariat, particularly the successful roll-out of the Umoja enterprise risk management module, the integration of enterprise risk management with the statement of internal control, and the proactive steps taken in ICT risk mitigation. To build on this momentum, the Committee recommends that the Business Transformation and Accountability Division expedite the full adoption of the enterprise risk management module in the remaining entities and institutionalize the regular reviews of the management dashboard.
Financial contributions
69. According to the revised risk register, financial contributions have been identified as among the critical risks of the Organization. According to the Controller, from whom the Committee received regular updates during the year, the key drivers for this risk include the following: (a) the challenges in liquidity planning caused by unpredictable payment patterns from Member States; and (b) cash shortfalls that exacerbate the inherent weaknesses and rigidities in budget methodologies and the regulatory framework. According to the Controller, both the regular and the peacekeeping budgets are facing challenging liquidity situations, making the management of that risk all the more urgent.
70. The Committee continues to note the deteriorating liquidity situation, which is disruptive to operations and has the potential to upend the Organization¡¯s programmes and missions. The Committee reiterates its position that this risk can be addressed by Member States taking the steps outlined in the reports of the Secretary-General ( and ) and the associated report of the Advisory Committee on Administrative and Budgetary Questions (). The Committee also notes that the General Assembly continues to be fully seized of this matter, with a view to providing working alternatives and a sustainable solution.
E. Financial reporting
71. During the reporting period, the Committee engaged in discussions with the Board of Auditors, the Under-Secretary-General for Management Strategy, Policy and Compliance and the Controller on issues relating to financial reporting. The issues discussed included the following: (a) the statement of internal control; (b) fraud and presumptive fraud; (c) the status of the risk mitigation plan for extrabudgetary management and implementing partners; (d) after-service health insurance liability; and (e) issues and trends apparent in the financial statements of the Organization and the reports of the Board of Auditors.
Fraud and presumptive fraud
72. With respect to fraud and presumptive fraud, as in previous years, the Committee considered the number of cases and value of reported fraud and presumptive fraud since 2019 (see figure IV). Whereas the number of presumptive fraud matters averaged about 218 cases per year, the number of confirmed fraud cases proven through investigations was much lower, at about 30 cases per year. On the other hand, although the value of presumptive fraud averaged $25 million per year, the value of the confirmed fraud was negligible, averaging only $0.30 million per year. In 2024, the number of presumptive fraud matters stood at 270 cases, with an associated value of $67.06 million, whereas the number of confirmed fraud cases reported for the year was 19 cases with a value of $0.57 million.
Figure IV
Trends in fraud and presumptive fraud, 2019¨C2024
Note: For the purposes of the period covered, the volume I and volume II cycles have been combined to reflect the general trends.
73. The Committee has continued to engage with management on this issue to promote a clearer understanding of the underlying factors and to improve the quality of reporting. The Committee was informed that, although a system-wide definition of fraud and presumptive fraud existed, and had been promulgated by the United Nations Chief Executives Board for Coordination, it was unclear whether current reporting was consistently aligned with that definition.
74. The Committee, therefore, recommends that management, under the guidance of the Controller¡¯s Office, in collaboration with OIOS and consultation with the Board of Auditors, clarify and standardize the criteria for classifying and reporting fraud and presumptive fraud in the context of the reports of the Board of Auditors, in line with the definition of the United Nations System Chief Executives Board for Coordination, and enhance training and guidance for staff to ensure that their reporting of fraud and presumptive fraud is in accordance with the regulatory framework. The Committee believes that these steps will help strengthen the credibility of fraud reporting and support more effective risk management across the Organization.
F. Coordination and cooperation among United Nations oversight bodies
75. During the reporting period, in addition to its regularly scheduled meetings with OIOS, the Committee met with other oversight bodies, including the Joint Inspection Unit and the Board of Auditors, through its Audit Operations Committee. The dialogue allowed for the sharing of perspectives on matters of mutual concern and provided a valuable opportunity for cooperation among United Nations oversight bodies.
76. The Committee continued to seek comments from the three oversight bodies, each of which emphasized, in its comments, the existing coordination mechanisms, including the sharing of their programmes of work. In separate meetings with the Board of Auditors, the Joint Inspection Unit and OIOS, the Committee noted the positive relationship fostered through the tripartite coordination meetings of the oversight bodies and the sharing of workplans to avoid duplication.
77. The Committee continues to maintain that such coordination among the Board of Auditors, the Joint Inspection Unit and OIOS provides a valuable platform for additional opportunities for cooperation. The Committee therefore supports such cooperation and coordination among the oversight bodies to avoid both duplication and oversight gaps and to provide sufficient oversight of significant risks.
78. In December 2024, the Committee co-hosted, jointly with the Universal Postal Union, the ninth meeting of the representatives of the United Nations system oversight committees. A total of 38 representatives from 22 oversight committees, from organizations within the Secretariat, the funds and programmes and the specialized agencies, attended the meeting.
79. During the meeting, discussions resumed regarding common challenges and potential identification of good practices in the work and conduct of the United Nations system oversight committees. Participants focused on: (a) updates on unified principles for donor conditionalities and rapid response mechanisms; (b) the importance of United Nations feedback on global sustainability standards such as the climate disclosure standards; (c) emerging issues, including the challenges and opportunities presented by technology such as artificial intelligence; (d) discussion of the Joint Inspection Unit reports and challenges concerning delayed responses from entities in relation to acceptance and implementation of the Unit¡¯s recommendations; (e) progress on Secretariat support for oversight advisory committees; (f) continued discussion of organizational culture, stressing the need for a ¡°lived culture¡±, the promotion of shared values, the right leadership tone, psychological safety and two-way communication; and (g) continued discussion on the role of oversight bodies with respect to the environmental, social and governance reporting initiative as an element of the 2030 Agenda.
80. At the meeting, the participants also resolved to formalize the network of oversight advisory committees of United Nations system organizations and adopted an operational modus operandi.
81. Following the conclusion of the meeting, the participants agreed to convey their observations outlined above to the Secretary-General, in his capacity as Chair of the United Nations System Chief Executives Board for Coordination, and other members of the Board. In his letter of reply, the Secretary-General highlighted the Organization¡¯s progress in that respect. The network will meet in December 2025.
G. Cooperation and access
82. The Committee reports that it received good cooperation from OIOS and management in the Secretariat, including the Department of Management Strategy, Policy and Compliance, in discharging its responsibilities. The Committee was given appropriate access to the staff, documents and information needed to conduct its work. The Committee is pleased to report that it continued to work closely with the Joint Inspection Unit and the Audit Operations Committee of the Board of Auditors. The Committee looks forward to continued cooperation with the entities with which it interacts in order to discharge its responsibilities, as set out in its terms of reference, in a timely manner.
H. Meeting with the Secretary-General and the Chair of the Advisory Committee on Administrative and Budgetary Questions
83. The Committee undertook its responsibilities, as set out in its terms of reference, in accordance with the scheduling of the sessions of the Advisory Committee on Administrative and Budgetary Questions and the General Assembly. In addition, the Committee had informal meetings with the Secretary-General and the Chair of the Advisory Committee during its seventy-first session, in July 2025, to brief them on the work of the Committee and seek any feedback in that regard.
IV. Overview of the plans of the Committee for 2026
84. The Committee will continue to schedule its sessions and activities to ensure coordinated interaction with intergovernmental bodies and the timely availability of its reports. In a preliminary review of its workplan, the Committee identified the areas that will be the main focus for each of its four sessions for fiscal year 2025/26 (see annex I).
V. Conclusion
85. In the context of its terms of reference, the Independent Audit Advisory Committee presents the preceding observations, comments and recommendations, as contained in paragraphs 9, 11, 13, 15, 18, 22, 23, 28, 32, 36, 39, 41, 44, 47, 49, 50, 51, 58, 63, 68, 70, 74 and 77, for the consideration of the General Assembly.
Annex
Workplan of the Committee from 1 August 2025 to 31 July 2026
|
Session |
Key focus area |
Intergovernmental consideration of the report of the Committee |
|
|
|
|
|
Seventy-second |
Review of the 2026 workplan of the Office of Internal Oversight Services (OIOS) in the light of the workplans of other oversight bodies |
Advisory Committee on Administrative and Budgetary Questions, first quarter of 2026 |
|
|
Proposed budget of OIOS under the support account for peacekeeping operations for the period from 1 July 2026 to 30 June 2027 |
General Assembly, second part of the resumed eightieth session |
|
|
Operational implications of issues and trends in the financial statements and reports of the Board of Auditors |
|
|
|
Coordination and cooperation among oversight bodies, including hosting a coordination meeting of oversight committees |
|
|
|
Election of the Chair and Vice-Chair for 2026 |
|
|
Seventy- third |
Status of implementation of oversight bodies¡¯ recommendations |
General Assembly, second part of the resumed eightieth session |
|
Report of the Committee on the OIOS support account budget |
||
|
Review of the enterprise risk management and internal control framework in the Organization |
||
|
Seventy-fourth |
Operational implications of issues and trends in the financial statements and reports of the Board of Auditors |
Advisory Committee on Administrative and Budgetary Questions, second quarter of 2026 General Assembly, main part of the eighty-first session |
|
|
Proposed programme budget for OIOS for the year ended 31 December 2027 Consideration of relevant aspects of the Ethics Office programme of work |
|
|
|
Coordination and cooperation among oversight bodies |
|
|
|
Transformational projects and other emerging issues |
|
|
Seventy-fifth |
Preparation of the annual report of the Committee |
General Assembly, main part of the eighty-first session |
|
Review of the enterprise risk management and internal control framework in the Organization |
||
|
|
Status of implementation of oversight bodies¡¯ recommendations |
|
|
|
Coordination and cooperation among oversight bodies |
[1] This includes United Nations operations as reported in volumes I and II, the International Trade Centre (ITC), the United Nations Environment Programme (UNEP), the United Nations Human Settlements Programme (UN-Habitat), the United Nations Office on Drugs and Crime (UNODC) and the International Residual Mechanism for Criminal Tribunals (IRMCT), as contained in the concise summary of the principal findings of the Board of Auditors ().
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