UNDP's Treasury Division failed in 2007 Audit

An audit report covering the activities of the Treasury Division that was issued on 9November 2007 resulted in an “unsatisfactory” overall audit opinion mainly due to the following major observations:

- Bank reconciliations not completed in a timely manner; unreconciled items accumulated and investigations not performed in a timely manner;

- The Atlas General Ledger system contains numerous incorrect balances dating back to January 2004, is not optimally configured, lacks adequate functionality and formal security measures;

- Overall lack of sufficient resources and limited guidance/guidelines within the Treasury Division ;

- Inadequate or non-existent access controls surrounding Atlas, Treasury shared drives and other relevant Treasury servers;

- Inadequate segregation of duties exists within the Bank Reconciliations, Deposit Operations, Investments Unit and Cash Management processes;

- Very high reliance on the use of Excel spreadsheets for the conduct of Treasury functions and duties;

UNDP Watch sources at 21st floor tell us that both Kemal and Ad are running out of control and has demanded that Khoury and OAPR re-write immediately their report and their recommendations they made in 05 Dec 07.

But how are member states reacting to all this ?

We will have to wait and see.