office of the inspector general 2009 annual and activity reports summary presented by oscar chavera,...
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Office of the Inspector General 2009 Annual and Activity Reports
Summary Presented by Oscar Chavera, Acting Inspector General
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OIG Overview• The internal audit function is established by Article 117 of the General Standards.• Executive Order 95-05 declares the responsibility, purpose and authority of the
Office of the Inspector General with respect to internal audits.•Internal auditing is a management control that operates by measuring and
evaluating the effectiveness of other management controls.
• The internal audit function undertakes the following audit types:• Compliance and Performance• Operational and Financial• Investigative• Information Technology
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OIG Overview
The OIG during 2009 had 7 staff members to perform the audit functions, including those that are administrative.
6 Positions financed by the Regular Fund 1 Position financed by ICR
OIG Staff
• The OIG reports directly to the Secretary General on the results of the audits.
• OIG Annual and Activity Reports are transmitted to the Permanent Council and CAAP.
• OIG is responsible for reporting to the Board of External Auditors on the issuance of all reports submitted to the SG.
• While performing its functions the OIG have no direct authority over or responsibility for any of the operations or activities reviewed.
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2009 Internal Audit Activities
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2009 Audit Activities The OIG activities that were completed or initiated during 2009 issued 9 audits and 1 investigation. All OIG submitted reports were approved by the Secretary General.
Our work was focused with particular emphasis on the proposals made by the Board of External Auditors and operations with the highest potential for increased effectiveness, economy and efficiency.
Additionally, our activities also consider the GS/OAS annual operating plan and include:• Investigations requested by the SG and Member States• Audits of specific operations, processes, areas or departments at
Headquarters• Audits of the Offices and Units of the General Secretariat in the Member
States and specific fund projects• Audits or Evaluations not contemplated in the Work Plan
Most of the audits are performed in-house; however when a different level of expertise is required, outsource services with in-house management is used.
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Audits and Investigations during 2009 AUDIT STATUS OF RECOMMENDATIONS
TOTAL % ofTotalAUDIT # Name Type ● ● ●
01/09 OASES Data Integrity Operational 4 3 7 27.0
02/09 GS/OAS El Salvador Compliance 0 0.0
03/09 GS/OAS Costa Rica Compliance 1 1 3.8
04/09 GS/OAS Dominica Compliance 1 1 3.8
05/09 GS/OAS St. Lucia Compliance 2 2 7.7
06/09 GS/OAS Jamaica Compliance 3 3 11.5
07/09 GS/OAS Peru Compliance 0 0.0
08/09 Scholarship Operational 4 2 6 23.1
09/09 Portal of the Americas Operational 2 2 7.7
INVESTIGATIONS STATUS OF RECOMMENDATIONSTOTAL %
INV. # Name Type ● ● ●
01/09 GS/OAS Bolivia Compliance 4 4 15.4
TOTAL 15 9 2 26 100.0
In accordance with Article 119 of the General standards, OIG reports are available to the Permanent Council upon request.
● IMPLEMENTED ● IN PROGRESS ● OUTSTANDING
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Summary of RecommendationsThe number of recommendations issued during 2009 represents a significant reduction of at least of 50% in comparison to previous years. This reduction is a good indicator of the efforts made by the GS/OAS for continuous improvements in internal control and policy implementation.
YEARNo. of Recommendations
Total ● ● ● % to previous yearHigh Medium Low
2009 12 12 2 26 15 5 6 -50.0%
2008 33 18 1 52 52 0 0 -3.7%
2007 34 20 0 54 54 0 0 -27.0%
2006 48 23 3 74 70 4 4
TOTAL 127 73 6 206 191 9 10
● IMPLEMENTED ● IN PROGRESS ● OUTSTANDING
During the auditing process, many findings identified were corrected prior to finalizing the report and therefore were not considered as recommendations.
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•To the GS/OAS Offices in the Member States: (a) effective supervision and training and (b) improve financial and administrative processes.• Improvements in the administration and monitoring of FEMCIDI projects.•Improve Fellowship Management System (FMS) online application mechanism.•Comply with OAS directives regarding the Scholarships Capital Fund.•Educational Portal of the Americas improvements to: (a) technical infrastructure, (b) website, (c) search engine and (d) financial management of virtual courses. •Develop and implement vendor policy based on industry best business practices.•Develop, test and implement OASES alerts
Sample of Recommendations
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Follow-UpThe OIG monitors all recommendations issued. To be effective and facilitate achievements of programs and objectives, audit recommendations must be implemented.
Outstanding recommendations from prior years – 2006: four (4) are still in progress.
YEAR 2009 No. of RecommendationsStatus
● ● ●
High 12 6 4 2
Medium 12 8 4
Low 2 1 1
Total 26 15 9 2
● Implemented
● In Progress
● Awaiting Management Response
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Effect on GS/OAS activities as a result of OIG recommendations
The OIG relies on actions taken by management to implement the recommendations. Results of recommendations implemented or in progress include the following:
• Segregation of duties - Vendors administration moved from DFAMS to OPS
• New OASES alerts were implemented• New appointments in GS/OAS Bolivia• Improvements of internal control in the following offices:
GS/OAS JamaicaGS/OAS PeruGS/OAS Costa Rica
• Virtual Courses - New platform being implemented for EPA• Updates to FMS functionality
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2010 Work Plan Annex 3 of CP/doc. 4536/11
2010 Audit activities were based on the OIG Work Plan and focused on areas of Significant Risk and recommendations from the Board of External Auditors and include:
Audit Technical Area/Subject LastAudit Current Status Audit Number
1 Credit Cards - Completed SG/OIG/AUDIT-01/10
2 Office of Procurement - Draft sent for comments SG/OIG/AUDIT-05/10
3 Travel 2004 Drafted SG/OIG/AUDIT-04/10
4 Payroll Processes - 80% Progress SG/OIG/AUDIT-06/10
5 Taxes 2001 80% Progress SG/OIG/AUDIT-07/10
6 CPR Processes 2006 Not Performed
7 GS/OAS Guyana 2007 Completed SG/OIG/AUDIT-03/10
8 GS/OAS St. Vincent and Grenadines 2002 Completed SG/OIG/AUDIT-02/10
9 Selected Chile FEMCIDI Projects 1994 Not Performed
10 Colombia FEMCIDI and Specific Projects 1994 Drafted SG/OIG/AUDIT-08/10
11 GS/OAS Mexico and Selected Projects 2002 Drafted SG/OIG/AUDIT-09/10
12 Dominica Republic 2003 Drafted SG/OIG/AUDIT-10/10
13 Honduras 2006 Not Performed
14 OASES 2009 Not Performed
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Thank YouTo the Member States, the Secretary General and the General Secretariat for their continued support to the Office of the Inspector General.
To the OIG team for their dedication, hard work and commitment.
OIG contact information Hotline (202) 458-3467 202-458-6888
[email protected] 202-458-3757 (fax)
The OIG is responsible for maintaining a Hotline which allows allegations to be reported to the Inspector General in person, by telephone, by e-mail, by facsimile, by regular mail or anonymously.