Secret Audit Document shows major deficiencies and more counterfeit - but advised "NO ACTION"

Today the UNDP Watch is publishing only a small portion of a secret document that Khoury the OIC of OAPR (Audit Office of UNDP) has presented to Kemal Dervis and Ad Melkert at the end of last year.

The document is self explanatory, and it enlist major problems with UNDP's programmes and projects, and how UNDP is conducting business in the world.

Today thanks to UNDP Watch insiders in the office of OAPR, we have obtained all 37 Audit Reports, and will be publishing them in their entirety to show the world the corruption of the UNDP and the level of miss-management and corrupt conduct which is being condoned in today's UNDP, under the leadership of Kemal Dervis and Ad Melkert.

During the 10-month period ending 31 October 2007, OAPR issued 37 audit reports pertaining to country offices . This includes 9 DEX audits, 2 follow-up audits, and 2 special audits.

The distribution of the audit reports issued so far is comparable to that of 2006, i.e. 32% Satisfactory, 38% Partially Satisfactory, 11% Unsatisfactory and 19% with no opinions. Altogether, the 37 OAPR audit reports contained 755 recommendations, 59% of which were ranked high priority.

Khoury makes some very disturbing revelations in this secret document, by admitting that: -"The major causes of audit issues were identified to be noncompliance and lack of effective supervision".

Among others Khoury admits that in today's UNDP the following still exist:

(1) Development Services

§ Weak system for monitoring and following-up on NGO/NEX audits: not having a system in place to ensure compliance with the audit scope, timely submission of NGO/NEX audits, and timely implementation of audit recommendations.

§ Inadequate project design, appraisal and approval process: inadequate or non-appraisal by the local programme advisory committee, non-inclusion of beneficiaries and other key stakeholders in the appraisal process, and project risks not being addressed in a systematic manner.

§ Ineffective project monitoring and evaluation: pertains mainly to not having a regular monitoring plan, non-use of project monitoring tools, and non-compliance with guidelines on project monitoring of development projects

§ Inadequate management of project inventory: misstatements in the inventory list, not updated fixed asset registers, incomplete documentation supporting the physical inventory, and non-adjustment of lost items.


(2) Financial Resources

§ Unresolved bank reconciliation issues: delays in the bank reconciliation process and, outstanding bank reconciliation items that have remained uncleared or unadjusted.

(3) Procurement

§ Weaknesses of the contracts, assets, and procurement committee (CAP): ineffective and/or a non-performing CAP, members of CAP unclear about their roles and responsibilities, weak competitiveness so as to increase best value for money.

(4) Human Resources

§ Deficiencies in the recruitment process for office staff, project staff, as well as consultants: non-transparent and non-competitive recruitment process, inadequate documentation to support recruitment, no reference checking, evidence of favoritism in the evaluation, excessive use of waivers, and non-compliance with HR rules.

But the most important finding of this Secret Document, is the revelation that UNDP "can account for only 86% of $ 2.1 Billion Dollars spent on NEX and NGOs around the world."

Khoury admits to Kemal and Ad that UNDP could not account in 2007 for almost $300 Million Dollars invested through NEX/NGOs.

Another major revelation of Khoury is on his old buddy Darshak Shah, for the first time since the North Korean controversy on counterfeit presence in the Office Safe (early 2007), Khoury blantedly gives the blame to Darshak Shah (Comptroller) and Julie Anne Mejia (Treasurer) :

• Two special reviews on counterfeit US Dollar bills were conducted by OAPR in 2007. The reviews highlighted:
  
  - The absence of specific procedures regarding the management of office safes; and
  - Absence of oversight exercised by the Office of Finance and Administration or the Treasury Division on the management of safes in country offices and business units at headquarters

Well after failing himslef (Khoury) to disclose the presence of counterfeit in North Korea during his audits in 2001 and 2004, now at the helm of Audit of UNDP, Khoury finds it easier to blame Darshak and Julie Anne.

But wait, David Morrison the spokesperson of UNDP has declared that North Korean counterfeit was the only one UNDP knew about. How come than OAPR conducted TWO special Reviews ? (UNDP Watch will publish both the Special Reviews on its draft and final versions)

But with the above revelation and fingerpointing of fault, we assume that Khoury would advise the management to take immediate actions for failure of doing their jobs and dismiss Darshak Shah and Julie Anne Mejia.

Well ....dont hold your breath on this. This document shows that Khoury, despite his tough findings, advised Kemal Dervis and Ad Melkert that "NO FURTHER ACTIONS" were required from high management on these Audit Findings.

Well done Khoury.....A+

Let's see if UNDP would be sharing this report with the Executive Board this week.