Financial statements

A/73/5/Add.1

United Nations

United Nations Development Programme

Financial report and audited financial statements

for the year ended 31 December 2017 and

Report of the Board of Auditors

General Assembly

Official Records Seventy-third Session Supplement No. 5A

A/73/5/Add.1

General Assembly Official Records Seventy-third Session Supplement No. 5A

United Nations Development Programme

Financial report and audited financial statements

for the year ended 31 December 2017 and

Report of the Board of Auditors

A/73/5/Add.1

United Nations ? New York, 2018

Note Symbols of United Nations documents are composed of letters combined with

figures. Mention of such a symbol indicates a reference to a United Nations document.

ISSN 0257-0815

Contents

Chapter

Page

Letters of transmittal and certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

I. Report of the Board of Auditors on the financial statements: audit opinion . . . . . . . . . . . . . . . . 7

II. Long-form report of the Board of Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

A. Mandate, scope and methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

B. Findings and recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

1. Follow-up of recommendations from previous years . . . . . . . . . . . . . . . . . . . . . . . . . . 17

2. Financial overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3. Programme and project management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

4. Harmonized approach to cash transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

5. Assets management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

6. Human resources management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

7. Cash and bank management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

8. Contributions management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

9. Common shared services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

10. Information and communications technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

C. Disclosures by management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

1. Write-off of losses of cash, receivables and property . . . . . . . . . . . . . . . . . . . . . . . . . . 46

2. Ex gratia payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

3. Cases of fraud and presumptive fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

D. Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Annexes

I. Status of implementation of recommendations up to the year ended 31 December 2016 . 48

II. Disclosure by management of cases of fraud and presumptive fraud . . . . . . . . . . . . . . . . . 71

III. Financial report for the year ended 31 December 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

A. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

B. Summary financial results and highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

C. Financial performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

D. Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

E. Budgetary performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

F. Financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

18-10119

3/176

G. Accountability, governance and risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 H. Looking forward to 2018 and beyond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 IV. Financial statements for the year ended 31 December 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 I. Statement of financial position as at 31 December 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 II. Statement of financial performance for the year ended 31 December 2017 . . . . . . . . . . . . 103 III. Statement of changes in net assets/equity for the year ended 31 December 2017 . . . . . . . 104 IV. Cash flow statement for the year ended 31 December 2017 . . . . . . . . . . . . . . . . . . . . . . . . 105 V. (a) Statement of comparison of budget and actual amounts (regular resources) for the

year ended 31 December 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 (b) Statement of comparison of budget and actual amounts (regular resources) for the

biennium 2016?2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Notes to the financial statements 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

4/176

18-10119

Letters of transmittal and certification

Letter dated 29 March 2018 from the Administrator, the Assistant Secretary-General and Director, Bureau for Management Services, and the Chief Finance Officer and Comptroller of the United Nations Development Programme addressed to the Chair of the Board of Auditors

Pursuant to financial regulation 26.01, we have the honour to submit the financial statements of the United Nations Development Programme (UNDP) for the year ended 31 December 2017, which we hereby approve.

Copies of these financial statements are also being transmitted to the Advisory Committee on Administrative and Budgetary Questions.

We, the undersigned, acknowledge that:

? The management is responsible for the integrity and objectivity of the financial information included in these financial statements.

? The financial statements have been prepared in accordance with the International Public Sector Accounting Standards (IPSAS) and include certain amounts that are based on management's best estimates and judgments.

? Accounting procedures and related systems of internal control provide reasonable assurance that assets are safeguarded, that the books and records properly reflect all transactions and that, overall, policies and procedures are implemented with an appropriate segregation of duties. UNDP internal auditors continually review the accounting and control systems. Further improvements are being implemented in specific areas.

? The management provided the Board of Auditors and UNDP internal auditors with full and free access to all accounting and financial records.

? The recommendations of the Board of Auditors and UNDP internal auditors are reviewed by the management. Control procedures have been revised or are in the process of being revised, as appropriate, in response to those recommendations.

We each certify that, to the best of our knowledge, information an d belief, all material transactions have been properly charged in the accounting records and are properly reflected in the appended financial statements.

(Signed) Achim Steiner Administrator

(Signed) Susan McDade Assistant Secretary-General and Director

Bureau for Management Services

(Signed) Darshak Shah Chief Finance Officer and Comptroller

Bureau for Management Services

18-10119

5/176

Letter dated 24 July 2018 from the Chair of the Board of Auditors addressed to the President of the General Assembly

I have the honour to transmit to you the report of the Board of Auditors on the financial statements of the United Nations Development Programme for the year ended 31 December 2017.

(Signed) Rajiv Mehrishi Comptroller and Auditor General of India

Chair of the Board of Auditors

6/176

18-10119

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download