Accountability and Compliance in EURO

Imre HolloDirector, Administration and Finance

Effective controls are in place• IOS audited 7 country offices (Turkey, Tajikistan, Turkmenistan, Uzbekistan, Belarus,

Republic of Moldova and Montenegro) in the past 3 years and found that the management and control processes were all satisfactory or partially satisfactory

• 78% of the tested controls were operating effectively in the Regional Office (IOS assessment end 2014)

• External auditors assessed the Regional Office twice and several country offices: Albania, Estonia and Ukraine (2011), Kyrgyzstan and Turkey (2013).

• All 2011 recommendations are closed and only 6 recommendations from 2013 pending• No long-outstanding open audit recommendations in EURO• A Management Group was established to go into the details of various management

reports and identify follow-up actions• SCRC is regularly informed of financial situation through extensive oversight reports • Review of audit recommendations by the RC

Issues Identified ActionsNo competitive selection for procurement of services

pre-checks and post-checks by the Compliance Team introduced

No externalization of back-up files. procedures developed implementation in progress

Internet connectivity problems systematic review advise on status and improvements

Key systemic issues identified during past audits

Key systemic issues identified during past auditsIssues Identified Actions

Anomalies in the recruitment of project personnel in country offices

guidelines developed clearance by the Regional Office

introduced

Management of fixed assets new guidelines developed comprehensive check performed

Most recent audit – DAF division, IOS • Objective: assessment of effectiveness of the governance, risk management and

control processes of DAF – Jan 2013 to May 2015• Overall controls implemented by EURO to mitigate key risks were deemed to be

satisfactory• Issues highlighted:

– Full implementation in GSM of the Delegation of Authority from RD is pending– Post-checks of the completeness and adequacy of deliverables to be introduced– Enhancement of the control of overlapping or fragmented contracts needed– Adherence to criteria for bid evaluations to be strengthened– Creation of Compliance function in 2011 significantly improved the assurances,

reporting line and coordination with the Global Service Center. HQ and/or other regional compliance units needs to be strengthen to have a harmonized approach

Good practices to share with other Regional Offices

• Monthly reports for the Executive Management Committee on achievement of results, budgeting, resources, salary financing situation, award management and compliance

• Communication structure with focal points in each technical unit and country office. Regular meetings on finance, compliance and procurement issues – positive impact as a systemic feedback channel

Investigation Case• IOS investigation revealed a misconduct by a Head of Country Office:

– use of WHO vehicle for personal use, together with close family – inappropriate delegation of authority to a unauthorized non-staff

member• Appropriate disciplinary measures were taken

New initiatives to further strengthen the controls

• Link performance appraisals with compliance targets• Roll-out the new responsibility matrix for COs and ROs• Strengthen administrative capacity in countries• Expand compliance checks to non-staff contracts• Work closely with CRE in HQ on implementing a risk register• Increase transparency through publishing tenders on internet as

part of the implementation of the new procurement strategy of WHO

Thank you