Internal Audit
Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.1
The Internal Auditing team of the Office of the Inspector General plans its work on a biennial basis, using risk assessment planning methodology coupled with its institutional knowledge and current policy directions. It responds to emerging needs such as requests from senior management for special reviews.
The Headquarters Activities group headed by a Senior Auditor, deals with most issues relating to financial, accounting and treasury functions, as well as office technology, special assignments relating to headquarters and conducts the monthly review of ODG expenses. The group houses expertise in the financial management systems at FAO and current practices outside the Organization and advises the Inspector General on financial, accounting and auditing issues, as well as personnel, budget, training, audit committee and reporting matters. Its advice on financial and administrative matters is frequently sought by various levels of management, both in AF and in the technical divisions. Most notable has been the group's contribution to the Private Sector Partnerships Advisory Committee, and a review of Letters of Agreement.
Decentralized Activities also headed by a Senior Auditor, deals with audits carried out at the Country, Regional, Subregional, and Liaison Offices, and selected projects in the various regions, in addition to special assignments relating to the field. The group's expertise includes field activities and the headquarters elements of such activities. The group is also AUD's focal point for matters pertaining to reports received from the local audit firms operating in the field. In addition, it is responsible for the orientation of FAORs and other senior staff in the field, and for their evaluation and separation arrangements.
Audits are coordinated, as appropriate, with the work of the External Auditor, the FAO Legal Office and the FAO evaluation unit (PBEE) to ensure that activities are complementary without wasteful overlaps. Upon completion of audits, the Office of the Inspector General makes recommendations based on the results that are meant to improve efficiency and effectiveness, enhance internal controls and raise fraud awareness among the staff as a whole.
Special activities
In addition to its scheduled internal audits, the Inspector General staff takes on special activities as they arise. For example, the Office has been involved in oversight of the Avian Influenza control operations of FAO. In addition, the Office of the Inspector General served as the focal point for liaison with the Independent Inquiry Committee (IIC) for the Oil-for-Food Programme established by the UN Secretary General. The Office has fielded missions around the world to follow up emergency operations such as tsunami recovery and the Desert Locust Programme. These missions provide oversight on administrative and procurement activities and identify areas for further attention.
1Institute of Internal Auditors (IIA) definition, adopted by FAO and other UN offices in June 2002