Audit progress on implementation of audit recommendations audit

Audit - progress on implementation of audit recommendations - audit plan for 2021 Session D – item 3 10 mins Mohamed Robleh, Oversight Officer Management, Advisory and Compliance Service UN-Habitat Thursday, 26 November 2020

BEST PRACTICES APPLIED IN UN-HABITAT AUDIT UN-Habitat audit complies with international best practices in auditing a. Two distinct audit functions (Internal/external) b. Risk-based audit methodology c. International auditing standards d. Operationally independent from UN-Habitat e. Public disclosure of audit reports 1

UN-HABITAT AUDIT COVERAGE Projects Regional Operations (indirect audit by internal/external audit) (mixed internal/external audit coverage) Sub-programme Operations (internal audit coverage) Country Operations (mixed internal/external audit coverage) Global consolidated Operations (external audit coverage) Critical Business Processes (internal audit coverage) 2

UN-HABITAT 2020 AUDIT COVERAGE 8 AUDIT ASSIGNMENTS UNDERTAKEN IN 2020 Area Scope Type Status Country Operations (2) • Laos, Egypt External Audit • Ongoing Regional Operations (1) • Regional Office for Africa (Nairobi, Kenya) External Audit • Ongoing Consolidated Operations (2) • Audit of the financial statements of UN-Habitat for the year that ended 31 December 2019 External Audit • Completed Critical business processes (3) • Audit of grants management at UNON, UNEP and UN-Habitat Audit of the management of data classification and data privacy at UNON, UNEP and UN-Habitat Audit of Programme Support Cost at UN-Habitat Internal Audit • Completed • Draft • •

ANALYSIS OF OPEN AUDIT RECOMMENDATIONS (FINANCIAL YEAR 2020) Area Evaluation Governance Knowledge Management Project Management Strategic / Programme planning Enterprise Risk Management Result-based Management Financial Management TOTAL Internal Audits 3 2 2 6 4 6 16 39 External Audits 2 2 3 6 53 66 Total % 5 5% 4 2 4% 2% 9 4 9% 4% 6 6 6% 6% 69 105 66% 100%

IMPLEMENTATION STATUS OF 2020 AUDIT RECOMMENDATIONS Status Internal Audit (OIOS) External Audit (BOA) Total Due in 2020 39 66 105 Implemented 15 30 45 Rate of Implementation 38% 45% 43% Under Implementation 24 36 60 Explaining low implementation rate: - Limited capacity ( Financial Management Area in particular) - Competing priorities - Increasing number of audit recommendations

SOME NOTABLE IMPACT OF AUDIT RESULTS Improved Management of Implementing Partners • Risk-based policy and procedures • Selection process: transparent, competitive, integrity &Value-for-money checks • Automation: Umoja GMP Module Strengthened Management of Risks • Risk Framework • Governance mechanism • Training • Project risk management Evidence-Based Performance Reporting • Database for evidence collection • Linking performance & evidence

INTERNAL AUDIT PLAN 2021 Title 1) Audit of financial management at UN-Habitat 2) Audit of Management Advisory and Compliance Service at UN-Habitat.

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