Principal Recipient Audit Follow-up
Country Office Follow-up on Audit Recommendations
The Programme Management Unit (PMU), in coordination with the Country Office (CO), should be proactive in addressing the Office of Audit and Investigations (OAI) audit findings and ensure that the actions taken are reflected in the Comprehensive Audit and Recommendation Database System (CARDS). The designated audit focal point should follow-up on the fulfilment of the audit recommendations, which are to be included in the Project Management Unit (PMU)’s work plan. Examples of common actions that are taken include review of Sub-recipient (SR) monitoring plan; review of the modality of payment and engagement with SRs; and enhanced engagement on capacity building activities.
Audit recommendations are expected to be implemented as soon as possible and within a period not exceeding 18 months. The duration of 18 months is calculated from the date the audit report is issued. In effect, this means that the CO has more than 18 months for implementation since, in most cases, it is aware of the audit recommendations well before the audit report is issued by OAI.
A recommendation that is still “in progress” or “not implemented” after 18 months or more of the audit issuance is considered a long outstanding recommendation and is reported to the Executive Board, i.e. included in the OAI annual report to the Executive Board. The outstanding recommendation will also receive a “penalty/reduction” when the implementation rate is calculated in CARDS. A recommendation that is implemented within six months after the audit report is issued, on the other hand, will receive a “bonus” (increment) when the implementation rate is calculated in CARDS. If a recommendation is implemented between six and 18 months, there is no increment nor penalty.
It is important to note that the implementation status of an audit recommendation is based on the OAI assessment of its status and not by the update provided by the CO. The CO should accordingly ensure a timely review of its entries submitted in CARDS by OAI.
Global Oversight and Resources
The UNDP Global Fund/Health Implementation Support Team uses the UNDP OAI’s audit observations and recommendations to tailor its support, tools and guidance to COs. The Team monitors the fulfilment of audit recommendations on a bi-monthly basis and, where required, it is available to provide additional support.
OAI issues, on an annual basis, a consolidated report of OAI audits of UNDP-managed projects financed by the Global Fund. As part of a robust risk management approach, COs should review the consolidated report to identify recurring issues and OAI’s recommendations to address them. As with all UNDP audit reports, the consolidated report is made available on UNDP’s audit public disclosure website within 30 calendar days after it is internally issued to UNDP management.