TNAG-1542-FCO40-2106-United-Nations-High-Commissioner-for-Refugees-(UNHCR)-Execut-1986 — Page 80

CONFIDENTIAL

37TH SESSION OF THE EXECUTIVE COMMITTEE OF A UNITED NATIONS HIGH COMMISSIONER

FOR REFUGEES:

Brist 5 (cl) 5(a)

A/AC.96/678

SUB-COMMITTEE ON ADMINISTRATIVE AND FINANCIAL MATTERS ITEM 3)

[ITEM & IN PLENARY]

VOLUNTARY FUNDS ADMINISTERED BY THE UN HIGH COMMISSIONER FOR REFUGEES: ACCOUNT

FOR 1985 AND REPORT OF BOARD OF AUDITORS

UK AIM

To accept the financial statements but to ensure that adequate steps are being

taken to put right the deficiencies reported.

LINE TO TAKE

Welcome the High Commissioner's plans to strengthen internal audit coverage.

2. Pleased to see that there were no cases of fraud reported in 1985 and that

of an earlier arrangements are in hand for reimbursement in respect case reported last year. What steps has UNHCR taken to remedy the deficiencies identified by the auditors in this report? Understand that UNHCR consider that some of the criticisms result from poor performance of implementing partners and from the fact that UNHCR donations to implementing agencies are not always main- tained in separate accounts. What is UNHCR doing to tighten up monitoring

procedures with its implementing partners.

3. Does the High Commissioner expect some of the problems identified to be overcome by his reorganisational changes and strengthening of field posts?

BACKGROUND

4.

The problems reported in last year's report caused some concern for the Americans, mainly because the report issued, following US Congress's adoption of the "McCollum amendment" which called for annual audited UNHCR reports to be carried out by independent consultants; there was also talk of US payments being withheld unless this could be arranged. The US were finally persuaded not to introduce their Congressional requirement at EXCOM. EXCOM does not have the power to appoint external auditors but the UN Board of Auditors does. At the informal

CONFIDENTIAL