Fifth Committee - Item 136: Report on the Activities of the Office of Internal Oversight Services - Australian Permanent Mission to the United Nations

Australian Permanent Mission to the United Nations

New York

Permanent Mission address: 150 East 42 Street, Level 33, New York, New York 10017 - Telephone: 1 212 351 6600 - Fax: 1 212 351 6610

Statement by Phillip Taula, First Secretary and Permanent Mission of New Zealand , on behalf of Canada, Australia and New Zealand to the United Nations Fifth Committee on Items 136 Report on the Activities of the Office of Internal Oversight Services. As deliverd on 10 October 2007.

(As delivered)

Mr Chairman

I have the honour to speak on behalf of the delegations of Australia, Canada and New Zealand. I thank Ms Ahlenius for introducing her report on the activities of the OIOS for the period 1 July 2006 to 30 June 2007 and Mr Jonathan Childerly for introducing for the Secretary General’s note.

I underscore the high importance we attach to an effective, highly professional, and operationally independent internal oversight function in the UN. The OIOS role is a key feature of governance arrangements and provides confidence for member states that resources are being used appropriately. The effective discharge of that role is a tough balancing act because while reporting to the General Assembly as required, the function is internal oversight. Support and advice for the Secretary-General in the sound stewardship of the Secretariat is its central task. As far as we can discern, further efforts are required to secure the desired close and frank dialogue and partnership between the administration and the OIOS, one based on mutual confidence.

The Under Secretary-General’s preface to the report makes important observations that member states cannot ignore. We are told that the Organisation does not have a formal and structured internal control framework that would provide reasonable assurance that financial resources are being handled effectively and that these deficiencies leave the UN vulnerable to corruption and fraud. These are alarming statements. We would like to know more precisely what the gaps are and what specific recommendations OIOS has for helping management to address them. We would also appreciate from the Secretary-General information on how he intends to respond to these observations.

The OIOS has important and sensitive responsibilities vested in it, and is going through a necessary period of further professionalisation and refocusing. The many activities underway include: the review of the investigations function; the formulation of the first fully risk-based audit workplan; the planned enhancement of inspection and evaluations functions; the procurement task force, and; proposed measures to strengthen OIOS’ operational independence. We believe that OIOS must also work hand-in-hand with management on the development and implementation of the Enterprise Risk Management Framework. While these elements may come forward on separate tracks, it is important for the Fifth Committee to be able to form a coherent view of what is expected of the OIOS and what it requires to deliver. We certainly appreciate the measures being taken within the OIOS to enhance professionalism, such as the skill assessment now underway and the creation of a professional practices unit.

We appreciate the presentation of findings within risk categories. The findings shed light on management issues and system deficiencies that require attention.

We look forward to discussing these issues further during the informals.

Thank you, Mr. Chairman.