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United Nations |
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A/81/318 |
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General Assembly |
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Distr.: General 7 August 2026
Original: English |
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Eighty-first session
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Item 136 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 2025 to 31 July 2026
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 2025 to 31 July 2026. During the reporting period, the Independent Audit Advisory Committee held four sessions, of which the first (seventy-second session) was chaired by Anton V. Kosyanenko (Russian Federation), with Suresh Raj Sharma (Nepal) as Vice-Chair. The other three sessions (seventy-third through seventy-fifth sessions) were chaired by Mr. Sharma, with Jeanette Franzel (United States of America) as Vice-Chair. The other Committee members, namely, Dorothy A. Bradley (Belize), Sylvia Paola Mendoza Elguea (Mexico), Eric Oduro Osae (Ghana) and Denis Strizheusov (Russian Federation), attended the sessions. During the reporting period, Mr. Kosyanenko and Ms. Bradley ended their tenure on the Committee. |
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Section II of the report contains an overview of the activities of the Committee, and section III sets out detailed comments, recommendations and conclusions of the Committee. Section V provides an overview of the Committee’s plan for 2027. |
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Contents
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Amendments to the rules of procedure........................................ |
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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 nineteenth annual report covers the period from 1 August 2025 to 31 July 2026.
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 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.
Amendments to the rules of procedure
4. Paragraph 4 of the terms of reference of the Independent Audit Advisory Committee provide that the Committee may adopt its own rules of procedure, which shall be communicated to the General Assembly. Moreover, the Committee has established that it may review and amend its rules of procedure from time to time, provided they remain consistent with the terms of reference (see , para. 8).
5. At its seventy-fifth session, therefore, the Committee adopted amendments to update its rules of procedure (see annex II) to incorporate the Committee’s responsibilities to advise on measures to strengthen the independence of the Ethics Office, as provided in paragraph 65 of General Assembly resolution . These amended rules supplement the existing rules of procedure and shall be read together with the existing rules.
6. The Committee invites the General Assembly to take note of the amended rules of procedure.
II. Activities of the Committee
7. During the reporting period, the Committee held four sessions. One of these sessions (the seventy-fourth session) was held at the headquarters of the Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok.
8. During its seventy-second session, in December 2025, the Committee members unanimously elected Suresh Raj Sharma (Nepal) as Chair and Jeanette Franzel (United States of America) as Vice-Chair for 2026. Furthermore, the Committee co?hosted, jointly with the United Nations Development Programme (蘑菇视频DP), the tenth meeting of representatives (Chairs, Vice-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 ().
9. During the reporting period, the Committee published three reports: its annual report to the General Assembly for the period from 1 August 2024 to 31 July 2025 (); and two reports to the Assembly, submitted through the Advisory Committee on Administrative and Budgetary Questions, one 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 2026 to 30 June 2027 (), and the other on the proposed programme budget for 2027 of OIOS ().
III. Observations and recommendations of the Committee
10. Section III of the present report describes the Committee’s work, comments and advice on different categories of oversight: independent external oversight, internal oversight, and financial reporting and other related matters.
A. External oversight
11. The Committee discussed and, where relevant, provided input on the workplans of the two independent external oversight bodies – the Board of Auditors and the Joint Inspection Unit (JIU) – as well as on results, recommendations and follow-up actions.
1. Board of Auditors
12. At its seventy-third and seventy-fifth sessions the Committee met with the Audit Operations Committee of the Board of Auditors.
13. The Committee received a briefing on the Board’s audit of the financial statements of United Nations peacekeeping operations (volume II) for the 12-month period from 1 July 2024 to 30 June 2025 (). The Board had issued an unqualified (“clean”) audit opinion on those financial statements. The Board conducted four performance audits during the reporting period, including an audit of disarmament, demobilization and reintegration processes in peacekeeping operations.
14. Although the Board did not identify material deficiencies in the accounts and records that might affect the fair presentation of the financial statements, its findings pointed to several underlying control weaknesses which led to 19 new recommendations.
15. Of the 73 outstanding recommendations previously endorsed by the General Assembly, 36, or 49.3 per cent, had been fully implemented, representing a marked improvement over the 26 per cent implementation rate recorded in the 2023/24 fiscal period. Thirty-six recommendations remained under implementation, while one was overtaken by events. Of the 36 recommendations under implementation, 17 recommendations (47.2 per cent) had been pending for two or more years.
16. The Committee commends management for the sustained improvement in the implementation of Board of Auditors’ recommendations pertaining to peacekeeping operations and encourages management to build on this progress, with particular attention to recommendations outstanding for more than two years.
17. The Committee notes the persistence of audit findings with respect to the financial estimation of presumptive fraud cases and reiterates its recommendation that management finalize the necessary measures to address this issue. This matter is discussed further in other sections of the present report.
18. With regard to recommendations pertaining to the regular United Nations budget (volume I), the Committee received an advance copy of the report of the Board of Auditors for the year ended 31 December 2025 (). As was the case with volume II, the Board issued an unqualified (“clean”) audit opinion on the financial statements. Although the Board did not identify material deficiencies in the accounts and records that might affect the fair presentation of the financial statements for volume I, the Board’s findings pointed to several underlying control weaknesses which led to 18 new recommendations.
19. Of the 137 recommendations from prior reporting periods, 94 (69 per cent) were assessed as fully implemented, compared with 84 (45 per cent) in 2024. In addition, six recommendations (4 per cent) were overtaken by events. The Committee was further informed that, of the 37 prior-period recommendations under implementation, 10 (27 per cent) had been outstanding for more than two years.
20. The Committee commends management for the effort to implement the recommendations of the Board, especially those that have been outstanding for more than two years.
2. Joint Inspection Unit
21. The Committee provided input to JIU during the preparation of its workplan. The Committee also continued its annual interaction with the JIU in this regard. The Committee noted that JIU initiated nine reviews in 2025 in addition to five reviews carried over from 2024. The Unit issued six reports in 2025, covering governance, administration, sexual exploitation and abuse prevention, donor oversight requirements, programme support costs, ombudsman functions and health services. The six reports contained 50 formal recommendations.
Acceptance of Joint Inspection Unit recommendations
22. The Committee also notes that the acceptance rates of JIU recommendations for the United Nations Secretariat for the eight-year period from 2017 to 2024[1] stood at 77.7 per cent, the same rate as was reported for the preceding period, from 2016 to 2023. The acceptance rate for the United Nations system was 78.8 per cent – an improvement from the rate of 74.0 per cent recorded for the 2016–2023 period. In the same vein, the average acceptance rate for the entities under the purview of the Secretariat[2] also improved, from 63.7 per cent to 82.8 per cent, over the same period.
23. The Committee, in its 2025 report (), noted a concerning trend of non?response to JIU recommendations by management. The Committee expressed concern that the rising rate of non-response posed a risk in respect of accountability and reduced the effectiveness of the oversight mechanism; hence, the Committee called on management to address the issue as a matter of priority. The Committee noted that the proportion of recommendations for which no response was received had declined from 10.2 per cent in the preceding period to 5.2 per cent. The Committee is pleased to note the improvement in the rate of response to JIU recommendations.
Implementation of recommendations of the Joint Inspection Unit
24. The Committee notes that the implementation rate of accepted JIU recommendations for the United Nations Secretariat for the 2017–2024 period improved significantly to 88.3 per cent, up from 81.2 per cent reported for the 2016–2023 period. This is compared with the United Nations system-wide implementation rate of 81.2 per cent, which was an improvement – albeit a modest one – from the 80.1 per cent rate recorded for the 2016–2023 period. Likewise, the average implementation rate for entities under the purview of the Secretariat improved from 75.3 per cent to 80.9 per cent over the same period.
25. The Committee notes the overall improvement in both acceptance and implementation rates of JIU recommendations and encourages the Management Committee to sustain these improvements while also continuing to increase acceptance and implementation rates across all entities under its purview.
B. Internal oversight
1. Office of Internal Oversight Services
General
26. At each of its sessions during the reporting period, the Committee met with the Under-Secretary-General for Internal Oversight Services and senior OIOS officials to review the implementation of the workplans and the proposed workplans related to the support account budget for 2026/27 and the proposed programme budget for 2027. The Committee also reviewed the impact of the Organization’s financial situation on OIOS operations, investigation trends, the protection against retaliation framework and the status of external quality assessments. The Committee’s observations and recommendations on the budgets are contained in the two reports referred to in paragraph 9 above.
27. The report on OIOS activities on peace operations for the period from 1 January to 31 December 2025 () indicates that OIOS issued 487 oversight reports on peacekeeping operations, comprising 56 audits, 10 evaluations and 421 investigations, which resulted in 761 recommendations.
28. Of the 310 audit and evaluation recommendations issued during that period, 306 (98.7 per cent) were accepted by management, consistent with the high acceptance rates that OIOS has recorded in recent years. OIOS closed 344 peacekeeping-related audit and evaluation recommendations in 2025, compared with 310 newly issued recommendations, leaving 415 recommendations open at year-end. Of these, 89 per cent had been open for less than 24 months, compared with 78 per cent in 2024, indicating a continued reduction in the proportion of long-outstanding peacekeeping recommendations.
29. The Committee welcomes the sustained high rate of acceptance by management of OIOS peacekeeping recommendations and the improvement in the ageing profile of open recommendations. It encourages OIOS to sustain this positive trend.
Internal Audit Division
30. The Committee reviewed the workplan of the Internal Audit Division of OIOS under the regular budget for 2026 and under the peacekeeping operations budget for 2025/26. In this regard, the Committee discussed with OIOS its approach to planning its work in accordance with its strategic priorities and risk-based assessment and coverage.
31. OIOS reported that it is generally on track to implement its 2026 programme of work for the Internal Audit Division, although a substantial number of internal audit engagements that are targeted to be completed during 2026 are still in progress. OIOS also presented its approach to planning and assessing risk coverage for internal audits. The Committee reiterates that OIOS should ensure transparency for relevant stakeholders regarding gaps in risk coverage that might arise due to resource constraints.
Inspection and Evaluation Division
32. The Inspection and Evaluation Division of OIOS completed all 10 programme budget assignments carried over from 2025, including evaluations of the Office of Counter-Terrorism, the Office of the United Nations High Commissioner for Human Rights and the United Nations Assistance Mission in Afghanistan, as well as triennial reviews of the implementation of recommendations arising from prior OIOS evaluations of the Economic Commission for Latin America and the Caribbean, the Economic Commission for Africa and the Development Coordination Office.
33. The Committee was further informed that the Division was on track in implementing its 2026 workplan, and that it was proactively using technology tools, including artificial intelligence, to assist with the evaluation process. The Division is also continuing its efforts to provide evaluation support and learning to organizations and programmes across the Secretariat.
34. The Committee encourages the Inspection and Evaluation Division to continue to build evaluation capacity and learning across the Organization.
Investigations Division
35. The Investigations Division of OIOS continued to experience sustained growth in its workload during 2025. The total case intake increased to 2,051 cases, compared with 1,868 in 2024, while referrals to management rose to 906 from 854 reported in 2025, and the number of formal investigations opened increased to 583. Between 2014 and 2025, OIOS investigated 2,044 allegations of misconduct involving Secretariat personnel, of which 1,326 resulted in investigation reports with findings of some evidence of misconduct.
36. The Division’s open caseload stood at 456 cases at year-end in 2025. The average time taken to complete investigations improved, to 10.6 months, from a recent peak of 13.8 months; and the average age of cases stabilized, to around 7.2 months.
37. The Committee notes that OIOS has implemented data analytics and performance indicators to assist with the investigation workflow, as well as selected artificial intelligence tools to streamline certain work processes. That progress notwithstanding, the Committee reiterates its concern, expressed in its 2025 report (), that the sustained growth in the caseload of the Investigations Division, combined with the constraints on its capacity to fill approved posts, risks eroding the timeliness and rigour of the Organization’s accountability framework.
38. The Committee welcomes the efficiency gains reflected in reduced completion times and stabilized case ageing achieved despite these resource constraints, including through enhanced case monitoring, streamlined reporting and exploratory use of artificial intelligence and data analytics. The Committee encourages the Investigations Division to continue identifying further opportunities to streamline its processes, while maintaining high-quality work.
Life cycle of complaints
39. The Committee invited the four entities involved in the complaint and investigation process – the OIOS Investigations Division, the Ethics Office, the Administrative Law Division of the Office of Human Resources, and the Office of the United Nations Ombudsman and Mediation Services – to participate in a panel discussion. The objective was to better understand the role of each stakeholder and the factors contributing to the rising number of complaints.
40. The Committee noted the emphasis on informal resolution of complaints, thorough investigation, followed by a thorough review by the human resources division in cases of findings of misconduct. The Committee encouraged panellists to be alert to additional opportunities for coordination, including opportunities to resolve complaints before they become investigation cases. The Committee encourages the entities to continue to coordinate and share information.
Trends in the composition of investigations
41. The Committee recalled that, in its report on the OIOS proposed programme budget for 2026 (, paras. 46–48), it had noted that fraud- and corruption-related misconduct and personnel-related misconduct continued to account for most of the caseload of the Investigations Division, representing approximately 60 per cent of its workload. The Committee observed that this trend may point to vulnerabilities in internal controls, organizational culture and accountability mechanisms across the Organization. As at 31 March 2026, the proportion of investigations in these two categories had risen to 74 per cent of the open caseload, with fraud- and corruption-related investigations increasing from 32 per cent to 41 per cent and personnel-related investigations increasing from 28 per cent to 33 per cent.
42. The Committee recommends that OIOS perform an analysis to identify any common themes or causes that led to these types of cases in order to determine whether improvements are needed in certain areas to help prevent or reduce the number of such cases in the future. The Committee further recommends that the results be included in OIOS risk assessments, as appropriate, when considering workplan priorities for internal audits and inspections.
External quality assessments
43. The Committee continued to follow up on the implementation of the recommendations of the three external quality assessments of OIOS divisions. Of the 22 recommendations addressed to the investigations function (14 to OIOS and 8 to the Secretariat), 17 have been implemented and 3 remain in progress. The two recommendations addressed to the Secretariat concerning the sharing of investigation reports with subjects and the mandatory use of alternative dispute resolution were closed without implementation, consistent with existing administrative issuances.
44. Of the nine recommendations addressed to the internal audit function, eight have been implemented and one remains in progress, targeted for completion in December 2026. The recommendation that is still in progress pertains to the need to improve documentation of the linkage and contribution of individual assignments to providing assurance over identified Secretariat-wide and individual entity risks.
45. Of the seven recommendations addressed to the inspection and evaluation function, five have been implemented and two remain in progress. The recommendations in progress pertain to streamlining processes and improving knowledge-sharing, and diversifying and strengthening evaluation methodologies.
46. The Committee noted that OIOS has implemented most recommendations, and those that remain pending are to be completed by December 2026. Given the importance of addressing the findings of the external quality assessment, the Committee calls on OIOS to fully implement the remaining recommendations as a matter of priority. The Committee also recommends that OIOS continue to review and articulate the resulting impact of the implementation of these recommendations.
47. Regarding the overarching external assessment (capping review) of OIOS, the Committee was informed that it had been completed. The Committee subsequently received a copy of the report of the independent panel shortly before the finalization of the present report.
48. The Committee intends to consider the report, its findings and recommendations in detail during its forthcoming sessions and to comment thereon in its future reports.
2. Ethics function
49. Pursuant to paragraph 65 of General Assembly resolution , the Committee continued to engage with the Ethics Office to monitor and assess developments relating to its independence and effectiveness. During its seventy-second and seventy-fourth sessions, the Committee met with the Director of the Ethics Office and took note of the draft annual report of the Office.
50. The Ethics Office reported sustained growth in the number of advisory requests and cases under its protection-against-retaliation framework in 2025, driven in part by staff uncertainty associated with the reforms under 蘑菇视频80 Initiative. The Office also reported that staff compliance with the financial disclosure programme remained strong. The Office noted that, in 2025, it had recorded the highest number in five years of both prima facie findings and confirmed retaliation cases following investigation, which it viewed as evidence that the framework is functioning as intended. It also reported an increase in the number of secondary reviews conducted through the Ethics Panel of the United Nations, reflecting heightened staff awareness of available mechanisms.
51. The Office noted that, in 2026, the number of advisory requests continued to grow as a result of increased awareness of its services and the ongoing organizational restructuring. Its priorities for the year therefore include expanding access to its services, including through artificial intelligence-assisted enhancements to its knowledge products, while maintaining its core advisory, disclosure and outreach functions under continuing resource constraints. The Office also anticipates a growing number of pre-appointment reviews and requests for advice in light of the forthcoming transition in the Secretariat’s leadership.
52. The Committee is concerned that the Ethics Office may lack the capacity to meet the anticipated demand and encourages the Office to raise any capacity concerns with the responsible parties in light of the forthcoming transition in the Secretariat’s leadership.
C. Financial reporting and other related matters
53. During the reporting period, the Committee engaged in discussions with the Controller and other stakeholders on issues relating to financial reporting. The issues discussed include: (a) the financial situation of the United Nations; (b) the statement of internal control; (c) fraud and presumptive fraud; (d) after-service health insurance liability; (e) issues and trends apparent in the financial statements of the Organization; and (f) the reports of the Board of Auditors.
Financial situation of the United Nations
54. According to the current risk register, the timeliness of assessed contributions has been deemed as one of the critical risks facing the Organization. The Controller provided a candid update on the Organization’s financial position, noting that collections in 2025 trended poorly, compared to 2024. The Committee noted that the cash-pooling mechanism has traditionally helped to buffer peacekeeping operations. The Committee considers that cash pooling offers potential benefits for regular budget operations as well.
55. The Committee, nevertheless, was encouraged by the General Assembly resolution modifying the long-standing practice regarding the return of credits to Member States, as it will provide greater flexibility in managing cash resources and mitigating liquidity pressures. The Committee welcomes this development as an important step towards addressing the Organization’s liquidity challenges. It is nevertheless of the view that the measure addresses only one aspect of the underlying causes of the liquidity challenges.
56. The Committee is of the opinion that the General Assembly may also wish to consider another option to strengthen the capacity to implement approved programmes in a timely manner. The option would be to allow the Secretariat to treat cash as a single pool and use it with appropriate safeguards (which is a standard and prudent financial management practice). That practice would not affect the separate identity or accountability of funds. Accordingly, the Committee recommends that the cash-pooling arrangement that has been in practice for peacekeeping operations be applied to the regular budget as well.
Fraud and presumptive fraud
57. With respect to fraud and presumptive fraud, as in previous years, the Committee continued to assess the number and value of reported fraud and presumptive fraud matters since 2019. The Committee notes that the number of presumptive fraud matters was about 219 cases per year on average; the number of confirmed fraud cases proven through investigations was much lower at about 29 cases per year. The value of presumptive fraud averaged $27 million per annum, whereas the value of the confirmed fraud was negligible, averaging $0.37 million per annum. In 2025, there were 219 cases of presumptive fraud with an associated value of $36.44 million, whereas the number of confirmed fraud cases was 26, with a value of $0.23 million.
58. The Committee continued its engagement with management on this matter in order to promote a clearer understanding of the underlying issues and to improve the quality and consistency of reporting. Accordingly, the Committee recalled its prior recommendation that the Administration, in collaboration with OIOS and the Controller’s Office: (a) clarify and standardize the criteria for classifying and reporting fraud and presumptive fraud, in line with the definition of the United Nations System Chief Executives Board for Coordination (CEB); (b) reconcile reported figures with OIOS findings to enhance data integrity and transparency; and (c) strengthen training and guidance for relevant personnel to ensure the accurate and consistent application of reporting standards.
59. The Committee followed up with management on the status of these recommendations and was informed that the Administration has taken steps to improve fraud reporting by adding data fields on financial losses, updating reporting guidance, limiting volume I reporting in 2025 to cases involving financial loss to the United Nations, and conducting outreach through year-end briefings and sessions on the ALD Connect platform. The Administration further noted that additional resources would be required to fully implement the recommendations.
60. The Committee notes that these efforts are ongoing and the persistent gap between reported presumptive fraud and confirmed fraud highlights the importance of consistent reporting standards and robust investigative and validation processes.
61. While the Committee recognizes that fraud and corruption investigations play a critical role in promoting accountability, deterrence and organizational integrity, the relatively low level of financial recoveries continues to warrant closer examination.
After-service health insurance
62. The Organization’s after-service health insurance liability continued its upward trend, increasing from $5.61 billion at the beginning of 2025 to $5.99 billion by year-end. Most of the liability relates to the regular budget ($4.66 billion), with extrabudgetary funds accounting for $1.33 billion, highlighting the growing long-term obligations associated with post-employment benefits across the United Nations system.
63. The Committee reiterates its view that the continued growth of after-service health insurance liability requires continued attention. The Committee is also aware that the General Assembly is seized of this matter.
D. Risk management and internal controls
1. Enterprise risk management
64. The Committee has a mandate to advise the General Assembly on the quality and overall effectiveness of risk management within the Secretariat. In this context, the Committee engaged with various entities involved in the risk management processes as presented below.
65. The Committee received a briefing from the Department of Management Strategy, Policy and Compliance on key issues related to enterprise risk management. The Committee was informed that the Administration had finalized the revision of the Secretariat-wide risk register, and had identified 15 critical risks and 24 very high risks. The Committee was further informed that 66 entity-level offices have completed their risk registers, and that approximately 14 additional entities have risk registers in development, with completion expected by September 2026.
66. The Committee was also briefed on progress in implementing enterprise risk management across the Secretariat. The Department of Management Strategy, Policy and Compliance reported that most entities had migrated to the Umoja enterprise risk management module, with the remaining entities expected to complete onboarding by early 2026. Discussions focused on advancing enterprise risk management maturity from a compliance-driven reporting exercise to a more strategic management tool. In this regard, the Department outlined plans to enhance the analytical use of risk information by strengthening linkages between risk events, controls, audit and oversight findings, and by leveraging data analytics to support more informed risk-based decision-making.
67. The Committee welcomes the progress in implementing enterprise risk management, including the roll-out of the Umoja dashboard and the increased availability of standardized and comparable risk information across the Organization. The Committee considers that the focus of implementation of enterprise risk management should increasingly shift from system deployment and compliance metrics towards demonstrating improvements in risk-informed decision-making and organizational performance. The Committee will follow up to monitor progress.
68. As part of its review of risk management practices across the Secretariat, the Committee met with the Department of Operational Support to discuss key operational risks, including procurement fraud, fuel and asset management, aviation safety, mission transitions, and the implementation of reforms under the 蘑菇视频80 Initiative. The Department outlined a range of mitigation measures, including strengthened monitoring mechanisms, policy enhancements and the use of digital solutions. While acknowledging those efforts, the Committee noted that these areas continue to present significant financial, operational and reputational risks, particularly in the context of mission drawdowns, complex supply chains and ongoing organizational transformation.
69. The Committee also notes that several of the risks discussed by the Department, including fuel management, asset management and procurement oversight, continue to feature prominently in reports issued by the Board of Auditors and OIOS. In the Committee’s view, the recurrence of these issues suggests that, notwithstanding progress achieved, underlying control deficiencies and implementation challenges persist and require sustained management attention.
70. The Committee welcomes the measures undertaken by the Department of Operational Support to strengthen its risk-management framework. Nevertheless, given the scale of ongoing organizational transformation and mission transitions, the Committee encourages the Department to expedite the documentation, institutionalization and implementation of measures introduced in support of the reforms under the 蘑菇视频80 Initiative. The Committee further recommends that the Department strengthen data-integrity controls, enhance risk-based aviation safety management and ensure that transformation-related risks are systematically incorporated into enterprise risk management processes and regularly monitored by senior management.
71. The Committee sought and received clarification from the Business Transformation and Accountability Division on the rationale for the proposal in the 蘑菇视频80 Initiative to relocate the enterprise risk management and evaluation functions to Valencia. The Committee also noted the Division’s assurances regarding phased implementation and continued headquarters-based engagement with intergovernmental bodies.
72. While acknowledging these assurances, the Committee recommends that Management closely monitor the effectiveness of enterprise risk management coordination arrangements during and after the transition to a satellite-office model. Particular attention should be given to maintaining effective strategic risk identification, reporting, cross-functional coordination and intergovernmental engagement to ensure that the transition does not adversely affect the Organization’s risk management capabilities.
2. Internal control
73. In its previous reports, the Committee highlighted the importance of aligning the enterprise risk management framework with the statement on internal control process. The Committee continues to underscore the need for enterprise risk management, internal control and assurance activities to operate as integrated and mutually reinforcing components of the Organization’s governance framework. In this regard, the Committee noted Management’s efforts, led by the Business Transformation and Accountability Division in close collaboration with the Office of the Controller, to further strengthen the alignment of the enterprise risk management framework with the statement on internal control process. The Committee was informed that the 2025 statement on internal control exercise covers 92 entities, compared with 90 entities in 2024. Management also advised that the statement on internal control remains the Organization’s most comprehensive control assessment exercise since 2020 and continues to serve as an important source of assurance for both auditors and donors.
74. The Committee further noted several enhancements introduced to the 2025 statement on internal control self-assessment process, including: (a) simplification of the questionnaire and streamlining of the assessment process, resulting in a reduction in the number of questions to 118, compared with 131 in 2024 and 151 in 2023; (b) stronger engagement with process owners and subject matter experts in the design of questions and interpretation of results; and (c) the retention of open-ended questions to enable entities to provide additional context and information in support of their responses. The Committee was also informed that, to improve operational efficiency and facilitate timely reporting, the statement on internal control reporting cycle has been moved to the third quarter of the year.
75. While welcoming these improvements, the Committee encourages Management to continue strengthening the integration of enterprise risk management, internal control, and assurance processes to ensure a more risk-informed and coherent approach to governance and accountability. The Committee looks forward to reviewing the final 2025 statement on internal control results and will provide its observations and recommendations in its next report.
3. Information technology
76. The Committee had a discussion with leadership of the Office of Information and Communications Technology on matters pertaining to governance, cybersecurity, system resilience, funding constraints and emerging technologies, such as artificial intelligence. The Committee was informed that governance terms of reference for information and communications technology (ICT) bodies had been updated and that guidance had been issued to support local ICT governance frameworks across entities, with all related mitigation actions reported on track.
77. The Committee noted that, while progress has been made in strengthening ICT governance arrangements, continued reliance on legacy systems and constrained funding remain significant operational risks.
78. The Committee encourages management to provide clear timelines, replace outdated or fragile information technology systems, assess the Organization’s dependency on critical vendors, monitor trends in ICT risk to ensure residual risk continues to decline and assess the adequacy of cyber-resilience measures for critical systems.
4. Field visit to the headquarters of the Economic and Social Commission for Asia and the Pacific
79. During its seventy-fourth session, held at ESCAP headquarters in Bangkok, the Committee met with the Executive Secretary of ESCAP and senior leadership, the Strategy and Programme Management Division, the Division of Administration and the enterprise risk management leadership group.
80. The Committee took note of the Commission’s broad regional mandate across economic, social environmental and technological areas, and its significant reliance on extrabudgetary funding, within an operating environment marked by budget and staffing constraints that required prioritization and stronger communication of programme impact to intergovernmental bodies.
81. The Committee also acknowledged the Commission’s readiness to operate as a location under the Common Administrative Platform initiative and underscored the need for clear communication, defined implementation timelines and adequate consultation with affected entities to ensure a smooth transition.
82. The Committee found that the Commission’s Strategy and Programme Management Division maintains a structured approach to engaging with oversight bodies, supported by centralized monitoring, though coordination requirements remain significant. The Division of Administration reported a comprehensive delegation-of-authority framework and progress in strengthening internal controls through data-driven and artificial intelligence-assisted approaches, despite persistent gaps in areas such as human resources and travel compliance.
83. The enterprise risk management leadership group reported that there were risk management processes under way that were structured but still evolving. The Committee noted that reliance on an annual risk-register cycle may limit the Commission’s ability to respond promptly to emerging risks.
84. The Committee encourages ESCAP to continue streamlining its coordination with oversight bodies and to move towards using more agile, continuous risk-monitoring mechanisms rather than relying solely on an annual registry cycle.
85. While at ESCAP, the Committee also held discussions with the Regional Director for Asia-Pacific of the Development Coordination Office and the United Nations Resident Coordinator for Thailand.
86. In its discussion with the Resident Coordinator’s Office, the Committee reviewed country-level coordination, strategic priorities and resource constraints. The Committee noted the Office’s continued reliance on unpredictable extrabudgetary funding and the resulting challenges for medium-term planning and programme delivery. It further observed that the expanding scope of coordination responsibilities places increasing demands on governance, accountability and risk-management arrangements.
IV. Cooperation and coordination among oversight bodies
87. 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, during its seventy-fifth session in July 2026, the Committee had its annual meetings with the Secretary-General and informal meetings with the Chair of the Fifth Committee to brief them on the work of the Committee and seek any feedback in that regard.
88. The Committee continued to work closely with OIOS, the Board of Auditors and the Joint Inspection Unit, and is pleased to report that it received good cooperation from management across the Secretariat entities with which it engaged, including timely access to the staff, documents and information needed to conduct its work.
89. In December 2025, the Committee co-hosted, jointly with 蘑菇视频DP, the tenth meeting of the representatives of the United Nations system oversight committees. A total of 37 representatives from 24 oversight committees, from organizations within the Secretariat, the funds and programmes and the specialized agencies, attended the meeting.
90. 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) strategic insights from keynote addresses on navigating global shocks, strengthening organizational resilience and addressing the implications of the evolving funding and reform of the United Nations; (b) updates from JIU, including the status of recommendations, recent system-wide reviews and its future programme of work; (c) challenges in delivering assurance amid resource constraints and organizational transformation, with an emphasis on the evolving roles of audit, investigation and finance functions; (d) emerging approaches to risk management, particularly the concept of “connected risk” and the need to leverage technology in increasingly complex risk environments; (e) forward-looking discussions on the future of oversight committees, including independence, harmonization and capacity needs in areas such as artificial intelligence, data analytics and sustainability; and (f) the role of evaluation in strengthening accountability, learning, and transparency.
91. Following the conclusion of the meeting, the participants agreed to convey their observations outlined above to the Secretary-General and other members of CEB. In his letter of reply, the Secretary-General highlighted the Organization’s progress on the issues highlighted. The next meeting of the representatives of the United Nations system oversight committees will be in December 2026.
V. Overview of the plans of the Committee for 2027
92. 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 focus for each of its four sessions in the coming fiscal year (see annex I).
VI. Conclusion
93. In the context of its terms of reference, the Independent Audit Advisory Committee presents the preceding observations, comments and recommendations, as contained in paragraphs 6, 16, 17, 20, 23, 25, 29, 31, 34, 37, 38, 40, 42, 46, 48, 52, 56, 60, 61, 63, 67, 68, 69, 70, 72, 75, 78 and 84, for the consideration of the General Assembly.
Annex I
Workplan of the Independent Audit Advisory Committee from 1 August 2026 to 31 July 2027
|
Session |
Key focus area |
Intergovernmental consideration of the report of the Committee |
|
|
|
|
|
Seventy-sixth |
Review of the 2027 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 2027 |
|
|
Proposed budget of OIOS under the support account for peacekeeping operations for the period from 1 July 2027 to 30 June 2028 |
General Assembly, second part of the resumed eighty-first 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 2027 |
|
|
Seventy-seventh |
Status of implementation of oversight bodies’ recommendations |
General Assembly, second part of the resumed eighty-first 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-eighth |
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 2027 General Assembly, main part of the eighty-second session |
|
|
Proposed programme budget for OIOS for the year ended 31 December 2028 Consideration of relevant aspects of the Ethics Office programme of work |
|
|
|
Coordination and cooperation among oversight bodies |
|
|
|
Transformational projects and other emerging issues |
|
|
Seventy-ninth |
Preparation of the annual report of the Committee |
General Assembly, main part of the eighty-second 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 |
Annex II
Amendments to the rules of procedure of the Independent Audit Advisory Committee
1. Pursuant to General Assembly resolutions and , and consistent with its mandate to supplement the terms of reference of the Independent Audit Advisory Committee (“the Committee”), the Committee has adopted amendments to its rules of procedure aimed at enhancing the independence and effectiveness of the United Nations ethics function.
2. The amendments to the rules of procedure, as adopted by the Committee, are set out below by section and article.
Section II
Article 2
3. The word “ethics” is inserted in article 2. The sentence will read as follows:
2. All members of the Committee must have recent and relevant senior level financial, audit, ethics, and/or oversight experience.
Section III
Article 10
4. The phrase “ethics function” is inserted in article 10. The paragraph will read as follows:
10. The responsibilities of the Committee are to provide independent advice to the General Assembly on the scope, results, and effectiveness of audit as well as other oversight functions, especially the Office of Internal Oversight Services, on measures to ensure the compliance of management with audit and other oversight recommendations and on various risk management, internal control, operational, accounting, ethics function and disclosure issues.
Section IV
Article 12
5. Under subparagraph (a), “ethics” is inserted after “audit”, and subparagraphs (j) and (k) are inserted in article 12 after subparagraph (i); the former subparagraphs (j) and (k) are renumbered accordingly as (l) and (m). Article 12 will read as follows:
12. The plan of activities of the Committee may include any of the following:
(a) Advising the General Assembly on the scope, results and effectiveness of audit, ethics, as well as other oversight functions;
…
(i) Advising the Assembly on the appropriateness of accounting policies and disclosure practices and assessing changes and risks in those policies;
(j) Reviewing and advising the Assembly on the workplans and performance of the Ethics Office;
(k) Reviewing and advising the Assembly on the adequacy of the ethics function, including its independence, the Code of Ethics, financial disclosure requirements, and whistleblower policies;
(l) Advising the Assembly on steps to increase and facilitate cooperation among United Nations oversight bodies;
(m) Advising on any other items requested by the General Assembly.
[1] See .
[2] Entities under the purview of the Secretariat include: the United Nations Secretariat, the United Nations Conference on Trade and Development, the International Trade Centre, the United Nations Environment Programme, the United Nations Human Settlements Programme and the United Nations Office on Drugs and Crime.
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