FC 93/16

Finance Committee

Table of Contents

I. Mission and Scope of Work

II. Accountability

III. Authority

IV. Independence

V. Responsibility

VI. Communication of Results

VII. Practice Standards

I. Mission and Scope of Work

1. The Office of the Inspector-General has responsibility for internal audit and inspection as well as monitoring and evaluating the adequacy and effectiveness of the Organization's system of internal control, financial management and use of assets. The Office also has responsibility for investigating misconduct and other irregular activities.

2. The Office of the Inspector-General and the unit dealing with evaluation, together, provide comprehensive internal oversight coverage of the Organization.

3. The Office of the Inspector-General provides the Director-General and the functions and programmes audited with analyses, recommendations, counsel and information concerning the activities reviewed. The Office places emphasis on identifying possible means of improving the efficiency and economy of operations and the effective use of resources while promoting control at reasonable cost.

II. Accountability

4. The Director-General shall appoint a technically qualified individual as Inspector-General after consultation with the Finance Committee of the Food and Agriculture Organization. Likewise, the Director-General shall consult with the Finance Committee before the termination of the incumbent of that Office.

5. The Inspector-General shall report directly to the Director-General.

III. Authority

6. The Office of the Inspector-General shall have full, free and prompt access to all accounts, records, property, personnel, operations and functions within the Organization which, in the opinion of the Office of the Inspector-General, are relevant to the subject matter under review. Staff at all levels shall cooperate fully in making available any relevant material or information requested during the course of a review.

7. The Office of the Inspector-General is authorized to communicate directly with all levels of staff and management in order to discharge its responsibilities. The Inspector-General shall be advised of any breakdown of the Organization's financial control system.

8. The Office of the Inspector-General shall be available to receive complaints or information concerning the possible existence of fraud, waste, abuse of authority or other irregular activities and practices. Confidentiality shall be respected at all times and no reprisals shall be taken against staff members providing such information, unless it is determined that this was wilfully provided with the knowledge that it was false or with intent to misinform.

IV. Independence

9. The Office of the Inspector-General shall have an adequate professional audit and investigation staff with sufficient knowledge, skills and experience to meet the requirements of the Charter. The Office of the Inspector-General shall have the ability to allocate assigned resources, set frequencies, select subjects, determine scope of work and apply those techniques required to accomplish its objectives in accordance with a plan of work concurred in by the Director-General.

10. Staff of the Office of the Inspector-General shall not have operational responsibilities for activities subject to audit by that Office.

V. Responsibility

11. The Office of the Inspector-General shall ascertain that the Organization's network of control processes, as designed and represented by management, is adequate and functioning in a manner as to provide assurance on the reliability of the accounts and that the Organization is achieving value for money. More specifically, the Office of the Inspector-General shall ascertain that:

• employee actions comply with the legal and regulatory framework including applicable policies, standards and procedures - especially, with respect to the receipt, custody and disbursement of funds and other resources of the Organization and conformity with the appropriations or other financial provisions voted by the Conference;
• the Organization applies reliable and adequate accounting, financial management, administrative and other controls and protects its assets;
• the Organization acquires and uses its resources in an economic and efficient manner;
• the Organization carries out its operations effectively; and
• significant financial, managerial and operational information is accurate, reliable and timely.

12. The Office of the Inspector-General also provides assurance that suitable measures have been taken to guard against fraud, waste and malfeasance.

VI. Communication of Results

13. The Office of the Inspector-General shall report the results of its work and make recommendations to Management for action with a copy to the Director-General and the External Auditor. At the discretion of the Inspector-General, any such report may also be submitted to the Finance Committee together with the Director-General's comments thereon.

14. The Inspector-General shall submit a summary report annually to the Director-General with a copy to the External Auditor on the activities of the Office of the Inspector-General, including the orientation and scope of such activities as well as comments on the implementation status of recommendations. This report shall be submitted to the Finance Committee together with any further comments deemed necessary.

15. The Director-General shall ensure that all recommendations from the Inspector-General are responded to by the responsible functional unit and implemented as deemed appropriate.

VII. Practice Standards

16. The Office of the Inspector-General shall meet or exceed the standards for the professional practice of internal auditing (including the Code of Ethics) adopted by the various Internal Audit and Oversight Services of the United Nations and Specialized Agencies.