November 19, 2009

UN Office for Project Services: Management Reforms Proceeding but Effectiveness Not Assessed, and USAID's Oversight of Grants Has Weaknesses

Stated by the United States Government Accountability Office, the United Nations (UN) Office for Project Services (UNOPS) provides numerous services for its clients, including procurement and project management. Recent audits and investigations of UNOPS have revealed alleged violations of law, weak internal controls, and financial mismanagement. UNOPS officials misused some of the $400 million awarded to UNOPS by the U.S. Agency for International Development (USAID) from 2004 through 2008. GAO was asked to assess the extent to which UNOPS has addressed key concerns about its internal controls, and evaluate USAID's oversight of UNOPS-implemented projects. To address these objectives, GAO reviewed UNOPS and USAID policies and grant documentation. GAO recommends that the Secretary of State work with other member states to encourage UNOPS's continued reform in areas of vulnerability identified by UN auditors and assessment of the effectiveness of the reform effort. It is also recommend that the USAID Administrator ensure that USAID document its approach for assessing PIOs? eligibility for USAID funding and improve its guidance, training, and monitoring relating to the use of PIO audit provisions.