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Viewing cable 08GENEVA926, WMO Audit Committee Read Out

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Reference ID Created Released Classification Origin
08GENEVA926 2008-11-05 13:50 2011-08-25 00:00 UNCLASSIFIED US Mission Geneva
VZCZCXRO3615
RR RUEHAST RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHTM
DE RUEHGV #0926 3101350
ZNR UUUUU ZZH
R 051350Z NOV 08
FM USMISSION GENEVA
TO RUEHC/SECSTATE WASHDC 7386
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 2857
UNCLAS GENEVA 000926 
 
SIPDIS 
 
STATE FOR IO/T FOR GROBERTS 
STATE PASS NOAA FOR GENERAL J.KELLY AND DR. B.BOLHOFER 
 
E.O. 12958: N/A 
TAGS: SENV EFIN WMO UN ECOSOC
SUBJECT:  WMO Audit Committee Read Out 
 
1. Summary.  The World Meteorological Organization (WMO) Audit 
Committee (AC) met at WMO headquarters October 20 - 21, 2008 to 
report on the status of implementation of audit recommendations 
generated by the Internal Oversight Office (IOO) and the UN Joint 
Inspection Unit. A representative from NOAA's Chief Financial Office 
attended with support staff from NOAA and the U.S. Mission.  This 
was the 11th Audit Committee since it was first established in 2004 
to address fraud and waste within the WMO.  Of particular interest 
to the U.S. was discussion on the internal progress report, planning 
for the introduction of IPSAS (the accounting standard the WMO will 
switch to in 2010) and the working capital fund.  AC-XII is planned 
for spring 2009.  The U.S. Delegation was successful in meeting all 
of its goals.  End Summary 
 
------------------------ 
Internal Progress Report 
------------------------ 
2. The Audit Committee (AC) reviewed and accepted the proposed audit 
plans by the Internal Oversight Office (IOO) Director and agreed 
that the IOO has done a commendable job in prioritizing its actions. 
 The IOO reported that upwards of 75 percent of the auditor's 
recommendations had been addressed.  While members appreciated this 
good news, they commented that the information about performance 
tended to be more quantitative than qualitative.  For example, 
members had no way of understanding the relative impact on WMO 
management of the recommendations that have been implemented, nor 
the scope of its undertaking. Members questioned whether the 
remaining 25 percent of recommendations still to be implemented 
could be those that might have the most significant impact on 
avoiding future fraud and mismanagement.  Lastly, the AC asked the 
IOO to provide more information about the risks associated with 
delaying implementation on any of the recommendations. 
 
----- 
IPSAS 
----- 
3. The Implementation of Internal Public Sector Accounting Standards 
(IPSAS) is required throughout the UN by 2010, consequently the 
market for expert consultants is competitive and the risk of missing 
this deadline is high throughout the UN.  While some organizations 
have to build IPSAS from the ground up, WMO believes that the 
implementation will not be as major as once thought.  A consultant 
is in the process of determining what needs to be done.  Certainly 
the Oracle system will need to be upgraded and an RFP has been 
signed to hire a consultant for this work. 
 
-------------------- 
Working Capital Fund 
-------------------- 
4. Given an anticipated shortfall to the Working Capital Fund (WCF), 
the US delegations had some concerns as to how the IOO proposed to 
meet the level approved by Congress.  Fortunately, the IOO reported 
that they expect to fund the shortfall through all interest to be 
earned from short-term investments of the capital of the WCF in the 
four-year Financial Period (15th) ending in 2011.  The remaining 
shortfall of CHF 465,293 (approximately USD 404,600) will be 
addressed through interest earned during the 16th Financial Period. 
 
 
5.  Members also questioned whether 7 million francs (USD 6 million) 
is a sufficient balance for the Working Capital Fund, particularly 
as it is apparently an arbitrarily determined sum.  The question of 
how much should reside in the Working Capital Fund will need to be 
determined during the 16th Financial Period.  If desirable, a study 
should be done to determine the appropriate level of funding for the 
WCF. 
 
------- 
COMMENT 
------- 
6.  As a sign of its success and maturity, the proceedings were calm 
and deliberate.  This meeting had few controversial issues, and so 
the USG delegation met all of its goals. 
 
STORELLA#