FC 102/9

Finance Committee

1. The Finance Committee, in its 100th Session, decided to review with the External Auditor his proposal for examination of selected areas of a Major Programme¹. This proposal is made in response to this decision.

2. We have decided to examine the management of TCP projects under the Major Programme 4.1 Technical Cooperation included in Chapter 4 of the PWB 2002-2003. Our audit will cover value for money issues in the management of the TCP projects.

3. We have taken into account the areas audited by our predecessor Cour des Comptes in the last three biennia and considered the necessity of selection of topics which will add value to the efficient operation of FAO.

4. TCP is the second largest Major Programme funded by the Regular Budget. It is significant in terms of allocation of resource and its impact on the efficient operation of the organisation. There is regular flow of requests for TC projects from the member countries. This indicates the relevance of this programme in activities of FAO. The Finance Committee have expressed concern regarding slow delivery of TCP. Following decentralisation, operational responsibility of projects has been transferred to the field units and this has introduced new risks for implementation of projects.

5. We will examine the management of TCP projects in the TC Department and other departments in the Headquarters and the operation of the projects in the field units through field visits of the Regional Offices and the FAORs. We have started issuing management letters pertaining to projects reviewed in the field units.

6. We hope to report on our findings and recommendations to Management by
October 2003.

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¹ Reference: Report of the 100^th Session of the Finance Committee, paragraph 58