Council 2009 Highlights

N°5*

Next »

• Document 61

This document was presented by Frank Sap, ITU Internal Auditor, to the Standing Committee on Administration and Management (ADM). Mr Sap outlined the responsibilities of an Audit Committee and, based on the mapping of these responsibilities to the existing functions of Group FINREGS and the MBG, he presented the recommendation to change the Terms of Reference of these two existing Council Groups.

The delegate of the United States raised the need to establish a separate Audit Committee composed of external and independent experts, and therefore proposed to modify the Terms of Reference of the Group FINREGS as follows:

“1.5 [MODIFIED] to ensure that the Financial Regulations and other ITU processes include provisions for effective internal controls, oversight, and risk management frameworks are in line with those of other United Nations organizations, and to establish and maintain an external, expert Audit Committee, in line with the Position Statement from the Representatives of Internal Audit Services of the United Nations Entities and Multilateral Institutions (RIAS) on generally accepted audit committee principles and good practices, that will report to and advise Council and the Secretary-General on deficiencies in ITU internal controls, oversight, and risk management systems…” (Annex D – Section 1.5)

Some delegates noted that the External Auditor supported, during his earlier intervention, the creation of an independent Audit Committee. Furthermore, one delegate proposed to have the external auditor involved in the process of defining and creating such a committee.

Several delegates also shared the opinion of the United States, stressing the need for an independent expert Audit Committee and requested information on how other organizations of the United Nations system have dealt with the issue of implementing an independent Audit Committee. It was mentioned that such information had already been provided by the secretariat for the June 2009 meeting of Group FINREGS (Document WG-RG-16/11).

The Chairman of the ADM Committee noted that while there was strong support, there was no consensus on the proposal of the United States. Some delegations raised questions concerning, among others, the organization, the funding, and the definition of independence, that should be addressed before adopting a final decision. The Chairman of the Group FINREGS also recalled that an exhaustive list of issues had already been identified and addressed in his report to Council 2009 (Document 18).

The Chairman of the ADM Committee concluded that the principle of creating an audit committee had received strong support and that the proposal of the United States will be issued as an information document for councillors and subsequently included in his report to the Plenary session as a way forward. The issues raised by delegates should be further discussed and analysed by Group FINREGS. The Chairman of the Group FINREGS should include the conclusions in his report to the MBG and to the Council session of 2010.

* Editor’s note: This issue of the Highlights only covers the discussion on a proposal to establish a separate Audit Committee at ITU.  The discussion took place in the Standing Committee on Administration and Management on Monday morning (26 October). The Committee is scheduled to table a report on the conclusions of its work to the Plenary on Thursday, 29 October (afternoon). We will bring you highlights from that report once it has been approved in Plenary.