Office of the Inspector General April 2013 OIG

Office of the Inspector General April 2013

OIG Reporting • General Standards - Article 118: Activity Plan. • General Standards - Article 121: Audit Reports. • Program-Budget for the OAS - AG/Res. 1 (XLIII-E/12) Quarterly reports - Section 6: Evaluation and audits: The Inspector General’s Office shall provide a list of all projected (including dates) internal audits and evaluations, as approved by the CAAP. The Inspector General shall provide a short summary of the findings and recommendations as per the reports submitted to the Permanent Council through the CAAP. 2

Board of External Auditors (2011 Report) 3. 1. Requests the new Inspector General do a full organizational review of OIG operations and provide the Board with an action plan for improved operations by December 31, 2012. The Inspector General was appointed on November 1, 2012 and presented the action plan for improved operations during these meetings. 3

Annual Audit Process • Deliv. 1 - Management Control Policy • Deliv. 2 - OIG Charter • Deliv. 7 - Follow-up Procedures Risk Assessment • Deliv. 3 - Risk Assessment Methodology Reassess Annual Risks Plan Follow-up • Deliv. 5 - Type of Assurance Opinions and Rating Definitions • Deliv. 6 - Audit Report Prototype Communicate Results Plan and Perform Audit • Deliv. 4. a - Planning Memo Templates • Deliv. 4. b - Assurance Eng. Letters • Deliv. 4. c - Consulting Eng. Letters 4

Board of External Auditors (2011 Report) 3. 2. Reaffirms its recommendation of the need for a peer review evaluation to be performed on the Office of Inspector General. In an effort to prepare the Office of the Inspector General for the peer review evaluation, in November 2012, the OIG audit staff underwent training in Internal Audit Quality Assessment Program. The first peer review evaluation is scheduled to be received during the first semester of 2014. 5

Board of External Auditors (2011 Report) 3. 3. Reaffirms that the Inspector General report to the Permanent Council annually by March 31 on the status of completion of the planned audits for the previous year, the status of management actions regarding outstanding audit recommendations, and the proposed plan of audits for the new fiscal year. The Inspector General is presenting the activity and annual reports for the years 2010, 2011, and 2012. The Inspector General is proposing the plan for the Office of the Inspector General for 2013 and 2014. 6

Open Recommendations by Year Level of Risk Total High Medium Low 2006 1 1 - 2 2009 3 2 - 5 2010 33 21 6 60 2011 19 12 2 33 2012 8 3 2 13 Total 64 39 10 113 7

Open Recommendations by Area Department of Procurement Coordinating Office for the National Offices Department of Human Resources Department of Financial and Admin. Mgnt. Svcs. Secretariat for Administration and Finance Mission to Sup. the Peace Process in Colombia Department of General Services Department of Human Dev. Education and Culture Secretariat for Multidimensional Security Other areas with one or two recommendations Total Level of Risk Total High Medium Low 19 10 8 8 2 3 1 3 3 7 5 11 7 5 5 1 2 3 1 1 2 1 1 1 3 25 22 17 13 8 5 4 3 3 13 64 39 10 113 8

2013 -2014 Action Plan • Audits; Inspections and Evaluations; and Investigations • Full organizational review of OIG operations • Implement a continuous audit process • Report periodically to PC and CAAP • Peer review evaluation (first semester of 2014) • OIG staff training to meet the educational requirements as specified by the Institute of Internal Auditors 9

OIG Areas of Interest • Enterprise Risk Management: needs to perform a comprehensive assessment of Organization’s current approach to risk management • Results-based budget initiative • Transition from the current budgetary and financial rules to IPSAS • OAS business processes are not fully defined, automated, nor integrated 10

2013 Plan (Audit, Evaluation and Inspection) (*) Goal # 2 AUD. 13/01 DFAMS – Cash Management Services Audit 2 AUD. 13/02 DOITS – Information Security Review 2 AUD. 13/03 DP – Vendor Master File Audit 2 AUD. 13/04 DHR – ICR Audit 3 AUD. 13/05 GS/OAS Office in Barbados 3 AUD. 13/06 GS/OAS Office in Honduras 3 AUD. 13/07 GS/OAS Office in Uruguay 3 AUD. 13/08 Inter-American Children's Institute 3 ASM. 13/01 2013 Online Assessment 2 AUD. 13/09 OGS – Building Management and Maintenance Section (*) 1 AUD. 13/10 DP – Monitoring of Compliance of Economy Class Travel From 2012 Audit Plan Name 11

Thanks • To the Member States, the Secretary General and the General Secretariat for their continued support to the Office of the Inspector General • To the OIG Team for their dedication, hard work, and commitment 12