UNHCR 91st STANDING COMMITTEE - Agenda Item 3 a: Finance and Oversight

UNHCR 91st STANDING COMMITTEE

12-13 September 2024

Agenda Item 3 a: Finance and Oversight

Statement on behalf of the EU and its Member States

Thank you, chair.

I am speaking on behalf of the European Union and its Member States.

We thank you for the overview on finance and oversight, as well as the presentation of the Annual report of the Independent Audit and Oversight Committee for 2023-2024.

We welcomeUNHCR's efforts in strengthening internal controls, fraud prevention, and detection, as demonstrated by the unqualified audit opinion for 2023. In the face of an ever-growing number of complaints received, we reiterate the central role of the Inspector General's Office in launching timely and efficient investigations.

It is reassuring that UNHCR remains sound in terms of oversight and accountability, and has made progress on the business transformation programme, decentralisation and other innovations. We also note UNHCR's efforts in engaging with the external auditors 'Cour des Comptes' of France, and its willingness to address difficulties and delays encountered in producing the financial statements.

The EU and its Member States encourage UNHCR to prioritise the consolidation of the systems and processes underpinning the financial statements, including the business transformation programme systems, the framework of internal controls and related fraud prevention mechanisms. We further recommend exploring specific tools and best practices that can improve transparency and cost tracking, to ensure resources are used as efficiently as possible. We would be interested to know when such difficulties and delays are expected to be fully resolved.

We share the Independent Audit and Oversight Committee's concern with the lack of progress in the scheduled review of internal audit arrangements at UNHCR, as well as regarding delays in the implementation of internal oversight recommendations. We also support a more effective classification of audit recommendations.

We look forward to the results of the evaluation on decentralisation and regionalisation. We call on UNHCR to consult widely on the draft rolling work plan of the Evaluation Office for the period 2025-2026.

We recognise the progress achieved on protection against sexual exploitation and abuse and sexual harassment, including through the adoption of UNHCR's new policy on addressing sexual misconduct in May 2024. We strongly encourage UNHCR to continue tackling sexual exploitation and abuse and sexual harassment as a top priority, applying a zero-tolerance policy and a victim-centred approach. We stress the importance of ensuring an effective balance between prevention and response. These efforts should extend to the management of implementing and collaborating partners, including governments. In this context, we call to further strengthen the overall joined-up approach with other UN agencies and in an Inter-Agency Standing Committee-wide framework.

We commend UNHCR's commitment to a safe and respectful workplace, and stress the importance of continuously promoting a speak-up culture and ensuring protecting against retaliation. In terms of identifying and mitigating risks, including fraud and corruption, we would like to hear more about the results of the corporate risk appetite approach piloted in Ethiopia, Kenya, Sudan and Ukraine. We would also welcome if UNHCR could provide more detailed information on how these risk management strategies are integrated with broader inter-agency collaboration efforts, particularly with IOM, to ensure a cohesive approach.

Finally, the EU and its Member States call on UNHCR to carefully take into account the findings of the Board of Auditors, internal audit reports and the Office of Internal Oversight Service'sinternal advisory reports. We underlinethe necessity for UNHCR's senior management to address the root cause of irregularities in the field and at headquarters, and to ensure timely implementation of all audit recommendations.

Thank you.

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