Executive Board 185 EX/32 Hundred and eighty-fifth session Part I
PARIS, 23 September 2010 Original: French
Item 32 of the provisional agenda
EXTERNAL AUDITOR’s NEW AUDITS
PART I
REPORT ON THE INTERNATIONAL FUND FOR THE PROMOTION OF CULTURE (IFPC), INCLUDING AN AUDIT AND AN EVALUATION OF THE PERIOD 1999-2009
Summary
Pursuant to 184 EX/Decision 21, the External Auditor submits the audit and evaluation report on the International Fund for the Promotion of Culture (IFPC). 185 EX/32 Part I
Office of the External Auditor of the United Nations Educational, Scientific and Cultural Organization
AUDIT AND EVALUATION REPORT ON THE INTERNATIONAL FUND FOR THE PROMOTION OF CULTURE (IFPC) 185 EX/32 Part I – page 3
TABLE OF CONTENTS
Page
1. FRAMEWORK AND SCOPE OF THE AUDIT AND EVALUATION...... 5
2. A FUND “WITH VERY BROAD TERMS OF REFERENCE” ...... 5 2.1 THE IFPC’s MISSION WHEN IT WAS ESTABLISHED IN 1974 ...... 5 2.2. RECURRENT DEBATES ON THE IFPC’s PURPOSES AND STATUTES ...... 6
3. IFPC ADMINISTRATION FROM 1999 TO 2009 ...... 8 3.1 GOVERNING BODIES...... 8 3.2 DIRECTOR OF THE IFPC ...... 9 3.3 THE IFPC SECRETARIAT...... 9 3.4 GOVERNANCE CRISES ...... 10 3.4.1 Appointment of the Director in June 1999 ...... 10 3.4.2 Suspension of the Fund’s activity in November 2006...... 11 3.5 DRAFT AMENDMENT TO THE STATUTES IN 2010...... 11
4. ACCOUNTS REVIEW AND FINANCIAL ANALYSIS ...... 12 4.1 ACCOUNTS REVIEW ...... 12 4.1.1 Accounts Findings ...... 12 4.1.2 Financial flows between the IFPC and the Aschberg Bursaries Programme...... 13 4.2 FUND RESOURCES: VOLATILITY AND CONTINUOUS DECLINE...... 14 4.2.1 Resources dry up...... 14 4.2.2 The Fund’s short-term investment...... 15 4.3. FUND EXPENDITURE: THE BURDEN OF OVERHEADS...... 16 4.4 ACTIVITY REPORTS: REQUIREMENTS MET ONLY IN PART ...... 17
5. PROJECTS SUPPORTED BY IFPC FROM 1999 TO 2009...... 18 5.1 PROJECT EXPENDITURE...... 18 5.2 PROCEDURES...... 18 5.2.1 Criteria...... 18 5.2.2 Evaluations...... 19 5.3 EXAMINATION OF A SAMPLE OF PROJECTS ...... 20 5.4 PARTNERSHIPS ...... 20 5.4.1 The Harmony List ...... 20 5.4.2 Other initiatives...... 22
6. LIKELY REFORMS...... 23 6.1 CONSIDERATIONS...... 23 6.2 PROSPECTS ...... 24 6.2.1 Disestablishment of the IFPC?...... 24 6.2.2 Revamp IFPC?...... 24
185 EX/32 Part I – page 5
1. FRAMEWORK AND SCOPE OF THE AUDIT AND EVALUATION
1. At its 184th session, the Executive Board decided to “request the External Auditor to undertake a comprehensive review including an audit and an evaluation of the International Fund for the Promotion of Culture covering the period from 1999 to 2009 and to report to it at its 185th session”.1
2. The requested review took place from late May to early July 2010 on the premises of the Culture Sector. Based on a summary of the Special Account’s performance drawn up by the Bureau of Financial Management (BFM), it included an analytical review of the 1999-2009 accounts, an examination of the functioning of the bodies responsible for the Fund’s steering and management bodies, a study of projects supported and an analysis of the successive projects envisaged to reform the International Fund for the Promotion of Culture (IFPC).
3. The audit team examined the Fund’s accounts, minutes of its governing bodies and archives held by the Bureau of Financial Management and the Culture Sector on accounting entries and operations, submitted questionnaires to and interviewed senior officials in the Division of Cultural Expressions and Creative Industries (CLT/CEI) and the Administrative Officer of the Culture Sector and examined files in the Bureau of Human Resources Management and the Office of International Standards and Legal Affairs.
4. The IFPC’s occasionally incomplete archives2 and the unequal orderliness of the files found constituted an objective constraint on the audit.
5. The audit team met the Assistant Director-General for Culture serving until May 2010, the Fund’s successive directors since 1999 and several former IFPC staff. It also contacted a company that had been an IFPC partner. Two former ambassadors to UNESCO and administrators of the Fund agreed to be interviewed (France and Romania).
6. The External Auditor sincerely thanks the ambassadors and deputy delegates who have kindly conveyed their views on the Fund’s past action and future prospects to the team (Benin, India, Iran (Islamic Republic of), Saint Lucia, Senegal, Venezuela (Bolivarian Republic of)).
2. A FUND “WITH VERY BROAD TERMS OF REFERENCE”
2.1 THE IFPC’s MISSION WHEN IT WAS ESTABLISHED IN 1974
7. The 11 years covered by the audit accounted for only one third of IFPC’s lifetime, as it was in November 1974 that the General Conference, at its 18th session, decided to establish an International Fund for the Promotion of Culture (IFPC) and adopted the Fund’s Statutes.3 Recalling the recommendations of the 1970 Venice and Kingston conferences4 and the proceedings of its 16th and 17th sessions,5 the General Conference was “convinced of the urgent necessity of giving greater prominence to culture in the development of individuals and societies and of strengthening international cultural cooperation” and “mindful of the importance in this regard of providing assistance for artistic creation and cultural activities”.
1 184 EX/Decision 21, recalling 182 EX/Decision 33 and 35 C/Resolution 48. 2 Former Fund Managers referred to the pulping in 2003, 2006 and 2007 of a part of IFPC’s documents. Officials currently CLT/CEI managers contested the reference to 2007, when the Organization’s archiving rules were respected. 3 18 C/Resolution 3.322 of November 1974 (18 C/87). 4 The Intergovernmental Conference on Cultural Policies (15 C/Resolution 3.331 of 1968) and Regional Caribbean Cultural Conference, respectively. 5 16 C/Resolution 3.324 and 17 C/Resolution 3.323 (and 93 EX/Decision 4.5.2 and 94 EX/Decision 4.4.2). 185 EX/32 Part I – page 6
8. The Statutes adopted in 1974 set out the aims, operations and resources. The Fund must promote: “(a) national cultures,6 the values that they embody and the forms of expression that ensure their authenticity and identity; (b) artistic creation in all its forms, while respecting its independence and free expression; (c) international and regional cultural cooperation”. To that end, Fund-supported operations should contribute to cultural development strategies; the establishment or reinforcement of institutions, structures and facilities whose purpose is cultural or artistic; the training of specialists in cultural development and cultural action; cultural production and cultural circulation; and research into cultural development. The Fund’s operations should take such forms as: “intellectual or technical assistance”; “financial aid in different forms, including investment, loans, grants, or any other kind of financial participation”; “in general, all other forms of activities that its Administrative Council may consider as being in conformity with the fundamental aims of the Fund and with its operational policy”.
9. In order to achieve these aims, the Fund's resources should consist of: “(a) voluntary contributions made by governments, organizations in the United Nations system, institutions constituted under public, private, municipal or international law, associations or private individuals; (b) fees collected for special purposes and profits from promotional activities; (c) interest accruing from the Fund's resources; (d) any other resources authorized by the Financial Regulations of UNESCO or by resolutions of the General Conference”.
10. The Fund is to be administered by an Administrative Council consisting of 15 members designated by the Director-General, on the basis of equitable geographical and cultural distribution, having regard to their competence and taking account of the origin of the Fund's resources. The Council enjoys “wide intellectual and operational autonomy within UNESCO”.7 The Statutes also provide for an Executive Committee consisting of the Chairman of the Council and four persons elected from among its members and for a Director who formulates proposals and executes decisions.
11. “Resources allocated to the Fund shall be paid into a special account set up by the Director- General of UNESCO […]”. The IFPC Special Account is managed in accordance with the Financial Regulations of UNESCO.
2.2. RECURRENT DEBATES ON THE IFPC’s PURPOSES AND STATUTES
12. In opening the Administrative Council’s first session in February 1976, the Director-General of UNESCO welcomed “the first international mechanism for the financing of cultural development seen as a vital factor in development”.8 The Fund’s operational activities began in 1977.9
13. Eight years later, in 1984, the first Chairman of the IFPC’s Administrative Council stressed that “the specific and original solutions that the Fund has found to a wide range of problems involving cultural creation, promotion, dissemination and research, have in several instances, already served as modes, for ventures in individual countries or in a regional context”.10
14. At the end of the decade, in a strategy document submitted to the Administrative Council,11 the Director of the Fund noted, however, that the Fund was still little known. He gave the impression that activities were dispersed: the average size of projects, some $24,000 in the early years for some outstanding initiatives,12 was a mere $7,500 in 1987-1988. In addition, its financial
6 The adjective national was deleted when the Statutes were revised in 2003. 7 Article 5, paragraph 7, of the 1974 Statutes. 8 Mr M’Bow, 9 February 1976 (address reproduced in International Fund for the Promotion of Culture. Origin, Characteristics, Activities, 1984, p. 113). 9 First extraordinary session of the Administrative Council, April 1977, Brussels. 10 Mr Felipe Herrera (aforementioned IFPC document, Origin, Characteristics, Activities, p. 8). 11 The IFPC in the 1990s, extraordinary session of 16-18 May 1989. 12 Mudra Afrique Dance School [Maurice Béjart] (Senegal, $50,000, 1977); Intercultural Music School of Venice ($12,000, 1977, with the assistance of the Calouste Gulbenkian Foundation); Contemporary manuscripts of authors from Latin America and the Caribbean (interregional cooperation, $25,000, 1983). 185 EX/32 Part I – page 7 situation was giving cause for concern, as the funding sources covered by its Statutes (sums accruing from services rendered and promotional activities, funds-in-trust) had not been tapped and administrative costs were too high in relation to funding for projects.13
15. In 1991, the Director-General reported an improvement in the image of the Fund, which had “earned respect and goodwill”, but that “efforts to increase its endowment [had] not borne fruit”. He proposed that “the Fund move towards a more ‘operating’ stance so as to be able to secure funds on a project by project basis” and that it work “in synergy with other units of the Culture Sector”. The Fund’s Administrative Council nevertheless recommended “caution”: “the idea of working in cooperation with units of UNESCO’s Culture Sector should not be overemphasized at the cost of losing the Fund’s specificity.”14 That notwithstanding, “the secretariat of IFPC was brought into the Division of the Arts and Cultural Life when the Culture Sector was reorganized”.15
16. In a coterminous report on the Fund commissioned from a consultant, IFPC was defined as a flexible mini-UNESCO, enabling each Director-General of UNESCO, an intergovernmental organization, to give practical expression to his or her own sensitivity and vision of global cultural dynamics. He proposed a return to basics with a strong element of innovation with emphasis on autonomy and flexibility in synergy with the public and private sectors drawing on the knowledge and techniques of cultural engineering in order to increase income. 16 In November 1993, the General Conference took a different approach by “endorsing the decision to concentrate the activities of the Fund on an international programme entitled 'Artists Across Frontiers', intended mainly to benefit artists from developing countries”.17
17. This was followed by a period of little Fund activity. The Administrative Council did not meet for more than four years between April 1995 and the convening of a wholly renewed Council on 9 November 1999.
18. The Director-General, who had submitted a revival strategy and new emphasis for the Fund to the General Conference,18 regretted at the time the Fund’s decline since the early 1990s, on account of problems encountered in increasing its financial resources in order to implement all of the programmes and operations listed in Articles 2 and 3 of its Statutes. Owing to those weaknesses on the funding and programme fronts, he had taken the initiative of launching UNESCO-Aschberg Bursaries for Artists, a programme that had become, since 1994, the only activity in which IFPC could take pride. 19 Hoping for “the functions of the Fund to be fully reactivated in situations that require priority attention to be given to the building of peace”, he had placed the Fund under the authority of the Assistant Director-General for Culture.20
19. His successor noted in February 2001 that the Fund had been given very broad terms of reference covering numerous fields, which gave it great operational flexibility, on which it had capitalized in the past. As its budget had shrunk, its activities had become somewhat dispersed and had little impact.21
20. In 2003, in view of the Fund’s financial situation, the Executive Committee considered suspending the Fund’s activities. In the presence of UNESCO’s Comptroller of, the Chairman decided to resume the debate on financial matters crucial to the decision on whether to continue the programme as usual or suspend it in 2003.”22 It was ultimately decided instead to amend the
13 On this point, the document referred to a report by the Inspectorate General of UNESCO. 14 Report on the activities of IFPC 1990-1991 (26 C/95), summary and paragraphs 7, 14 and 21. 15 Report on the activities of IFPC 1992-1993 (27 C/104, paragraph 2). 16 Report on IFPC, transmitted on 25 February 1993 to the Director-General by the Deputy Director-General for Programme, p. 6 and 23. 17 27 C/Resolution 3.18, based on document 27 C/104. 18 Report on the activities of IFPC 1998-1999, 30th session (30 C/INF.3). 19 Mr Mayor, meeting of the Administrative Council of 9 November 1999 (document IFPC/CA/1). 20 DG/Note/99/14 of 27 May 1999, signed by Mr Mayor. 21 Mr Matsuura, meeting of the Administrative Council of 21 February 2001. 22 Minutes of the annual meeting of the Executive Committee (Paris, 21 March 2003).
185 EX/32 Part I – page 8
Statutes of IFPC, to which the General Conference agreed. 23 The President of the General Conference was then assured that the adoption by IFPC of results-based management would lead rapidly to an improvement in the Fund’s effectiveness. The operation was mostly cosmetic. The meetings of the Administrative Council became annual.24 The rapprochement between the Fund and the Aschberg donation was recognized officially in Article 4.
21. In March 2004, 30 years after the Fund’s creation, the Administrative Council decided to devote a part of the Fund’s activities to its own promotion “in order to raise its profile”.25
22. The Executive Board has already been informed that “in early 2008, at the request of the Secretariat, an independent assessment of the IFPC and its activities was carried out” and that it “concluded that the IFPC activities were far too ambitious in the light of the available budget”.26 The assessment, which concerned the period from 2003 to 2006, had been entrusted to a supernumerary hired for the purpose in January 2008.27
3. IFPC ADMINISTRATION FROM 1999 TO 2009
3.1 GOVERNING BODIES
23. During the period under consideration, the statutory Administrative Council – Executive Committee – Director triad failed to ensure optimum operation of the Fund.
24. The statutory principles of the Administrative Council (Article 5 of the Statutes) – geographical and cultural equity, competence of members and origin of resources – were only partly respected.
25. The IFPC received contributions from 33 States, for the most part before 1980. The main contributors were France, India, Iran (Islamic Republic of), Kuwait, Netherlands, Saudi Arabia, Sweden. Funds were also provided by 16 institutions or private donors in Kuwait and the Netherlands in particular. From 1997 to 2009, however, only two of these countries, France and Venezuela (Bolivarian Republic of), were represented on the Administrative Council. As the Delegation of the country concerned pointed out to the auditing team, “it is surprising that no Iranian has been appointed (to the Administrative Council) throughout the 36 years that the IFPC has existed” even though the Islamic Republic of Iran “has many experts in this field”.
26. In regard to geographical distribution, there are a high number of representatives from Europe and South America (six members each), while Africa counts two seats, as do North America and South-East Asia. There are also only two representatives from Middle-Eastern countries, the region that provides the majority of funding.
27. In the 1999-2009 period, the Administrative Council was chaired by three eminent public persons.28 The available archives comprise seven records of Administrative Council meetings that are highly variable in terms of precision. The tables reviewed reveal a moderate level of absenteeism. The appointment of one of the attendees had lapsed since 2005. No attendance records signed by meeting participants were found.
23 Adopted by the General Conference at its 32nd session (16 October 2003). 24 1974: in ordinary session once every two years. 25 Administrative Council meeting, 22 March 2004. 26 Report in 184 EX/INF.6, paragraph 11. 27 A 27-year-old supernumerary appointed for two months (January-February 2008, $14,323) and subsequently then employed by the Organization as a project assistant on an ALD (CLT/CEI/DCE) contract. 28 Former Minister of Education and Defensor del Pueblo (Spain), former Deputy Director-General of UNESCO for Programme and President of the General Conference at it’s 29th session (Brazil). 185 EX/32 Part I – page 9
1999 2000 2001 2001 2002 2003 2004 2005 2006 2007 2008 2009 extra
Members ? ? 13 14 15 ? 15 15 15 15 15 15 Present ? ? 8 9 12 ? 12 11 ? - - - Meetings 1 0 1 1 1 1 1 1 1 0 0 0 Source: External Auditor, IFPC archives.
28. The Fund’s Statutes provide that “the Council shall decide how the Fund's resources are to be used”. 29 Yet many decisions on expenditure have been taken without the Administrative Council’s prior authorization, or even its endorsement. For example, at the beginning of the period under consideration, the Director-General of UNESCO decided, in April 1999, to allocate financial aid for the publication of a thesis and to charge the amount in question to the IFPC;30 the IFPC’s Administrative Council met in November 1999 but there is no record in the minutes of the meeting of that decision being endorsed. No amounts charged to the IFPC since 2007, with the exception of those connected to expenditure decided on previously (the balance of a project’s funding, for example), could have been approved by the Administrative Council since it had not met since 2006.
29. The Executive Committee provides a measure of continuity in between sessions of the Administrative Council, which elected its members. Venezuela (Bolivarian Republic of) was the only donor country to hold a seat on the Committee. It met only three times during the period under consideration (1999, 2002 and 2003).
30. The Administrative Council and the Executive Committee may be regarded as more of a college of experts rather than administrative bodies. Their main role is to give direction to and select projects, but they cannot easily manage the Fund along the lines set forth in the Statutes (Article 5).
3.2 DIRECTOR OF THE IFPC
31. According to Article 7 of the Statutes, the Fund’s Director is required to formulate proposals for decision by the Administrative Council and to execute such decisions. He/she shall be appointed by the Director-General of UNESCO after consulting the Administrative Council. One of the Fund Director’s main duties is to seek financial contributions to further action taken by the Fund. There have, however, been few such contributions.
32. The IFPC Director, who actually took office in January 1999, as the Fund’s third Director, was appointed in 1988. His successor was an outside figure, who had worked for the Organization as a consultant. Since 2001, the Director-General has assigned this post to UNESCO staff members such as the Deputy Assistant Director-General for Culture, the Director of the Division of Arts and Cultural Enterprise,31 and a divisional Professional (acting Director).
3.3 THE IFPC SECRETARIAT
33. In addition to the Director, between 2003 and 2007 there were three people working for IFPC. The main duty of this administrative unit were to manage the processing of applications for projects funding and the Aschberg bursaries. There was, however, no substantive basis on which auditors could assess the content of the operations carried out in this context or the resulting workload. Yet, a substantial share of related staff costs, including the salary of the Director or Acting Director responsible for drafting the progress report, was charged to UNESCO’s regular budget.
29 Article 5 B-11 (see also articles 7.1 and 7.2 of the Financial Regulations). 30 Letter from the Director-General dated 14 April 1999 ($7,000 in aid). 31 Administrative Council meeting, 21 February 2001, in the presence of Mr Matsuura; decision DG/Note/01/03 of 3 March 2001.
185 EX/32 Part I – page 10
34. During the audit period, in which the Fund’s activities shrank before being suspended, the IFPC’s operating resources should logically have dwindled but they did not – administration costs remained high until recently (see below).
3.4 GOVERNANCE CRISES
3.4.1 Appointment of the Director in June 1999
35. In September 1998, the Director-General relieved the Director of IFPC of his responsibilities for the IFPC Secretariat and appointed him Director of the Cultural Policies for Development Unit “to ensure follow-up to the Intergovernmental Conference on Cultural Policies for Development”. 32 His salary [would] no longer be paid from IFPC funds as from document 30 C/5.33
36. At the same time, the Director-General called on the consultant who had written the above- mentioned report on IFPC in February 1993 to prepare “a study on new ways of revitalizing IFPC’s action”.34 The Director-General endorsed certain courses of action from the study and appointed the consultant as “Acting Director of IFPC pending consultation of the Fund’s Administrative Council, in accordance with IFPC Statutes, and of the Executive Board concerning the post.” He also instructed him to “use the opportunity afforded by the 30th session of the General Conference to carry out the necessary consultations with a view to laying down guidelines for the Fund’s action in the future”.35
37. The Director-General decided on 1 June 1999 to establish a temporary D-1 post, financed from savings against the post of the previous Director, to which he appointed for six months the Acting Director, whose consultant contract had been terminated on 31 May. 36 The new Administrative Council met on 9 November. On 12 November 1999, on the very day on which his successor was elected, the Director-General appointed the Acting Director to the post of IFPC Director, in a decision that took immediate effect.37 The General Conference nonetheless invited the Director-General to reduce the number of high-level posts and to review all promotions and appointments made during the 1998-1999 biennium.38
38. The new Director-General, who took office on 15 November 1999, appointed a Task Force on the Secretariat’s structure, staffing and management and suspended the implementation of decisions relating to reclassifications, promotion and appointments taken by his predecessor between 1 October and 14 November 1999.39 The temporary six-month appointment in June 1999, thus came into effect again and was extended.40 The Task Force noted the failure to conduct a competitive procedure before appointment of the Director; the reservations of the Culture Sector, which had supported neither the candidate nor the appointment; and the need to source funds to finance the reclassification of the post from P-5 to D-1.41 In August 2000, the Director was informed that owing to the current financial situation of the Organization and the IFPC medium-term budget projections, CLT regrettably could not recommend that his temporary appointment be extended beyond the agreed term of 30 September 2000.42 A Director of IFPC was appointed in March 2001,
32 DG/Note/98/67. 33 Memo/CLT/CIC/DIR/99/53 of 28 April 1999. 34 Assist in thinking out new concepts leading to tangible interdisciplinary and intersectoral projects for promoting a culture of peace based on the idea of a living cultural identity, which respects diversity and is open and tolerant towards the culture of others (consultant contract No. 370.004.8 dated 21 September 1998, effective 1 January 1998 and extended to 31 May 1999 by undated amendment CLT/AD/99/202). 35 DG/Note/99/14 of 27 May 1999 signed by Mr Mayor. 36 CAB/1/99/Memos 231 of 25 June 1999 and 395 of 13 October 1999. 37 Decision in DG/Note/99/69 of 12 November 1999 signed by Mr Mayor. 38 30 C/Resolution 72. 39 DG/Note/99/5/KM of 26 November 1999, by Mr Matsuura. 40 PER/ADM.1B/99/1002 of 20 December 1999 (and subsequent decisions). 41 TF/SSM, Review of 30 C/5 Staff establishment and Structure, 11 February 2000, ADG/ODG/00 Memo 117 of 22 May 2000, CLT/ADG/00/017 of 27 October 2000. 42 HRM/ADM.2B/00/560 of 11 August 2000, signed by the Acting Director of HRM. Special leave with three months’ pay was granted until 31 December 2000 (HRM/ADM.1B/00/638 of 18 September 2000). 185 EX/32 Part I – page 11 after serving as Acting Director.43 She was concurrently at the head of IFPC and a division in the Culture Sector.
39. The former Director has brought four cases before the UNESCO Appeals Board. 44 The Secretariat replied to the appeals in July and August 2004. Since that date, the Chairman of the Appeals Board has granted the former Director successive prolongations of the time allowed for rejoinder.
40. Those events have not been without implications for the governance of IFPC. After several years of very little activity, during which the Administrative Council did not meet, action was taken in 1999 to give fresh impetus to the Fund.45 However, no realistic evaluation was made of its financial scope and of the funding of its structural costs, which resulted in arbitration proceedings in 2000-2001. Those proceedings were contested not only before the Appeals Board, but also entailed a number of letters and memoranda addressed, in particular, to the Director-General, which, on reading, intimate that the Director appointed in June 1999 continued to head IFPC. Such a situation could only weaken the IFPC management, which was restructured in 2001.
3.4.2 Suspension of the Fund’s activity in November 2006
41. Yet another governance crisis has arisen from the decision taken in November 2006 by the Assistant Director-General for Culture to suspend the Fund’s activities and to audit its operations carried out between 2003 and 2006. The terms of office of members of the Administrative Council appointed in 2003 expired in 2007. Some members were summoned to a Council meeting scheduled for January 2009 but which was cancelled because there was no quorum.
3.5 DRAFT AMENDMENT TO THE STATUTES IN 2010
42. A review of the Statutes was initiated in 2007. With regard to the 2005 Convention on the Protection and Promotion of the Diversity of Cultural Expressions, the Programme and Budget for 2008-2009 provides that the Organization “will review any operational mechanism with similar objectives, such as the Global Alliance for Cultural Diversity or the International Fund for the Promotion of Culture.”46 After examination by the Executive Board47 and debate by the General Conference at its 35th session,48 draft amendments to the statutes were submitted to the Executive Board at its Spring 2010 session (184 EX/21).
43. Under the proposed amendments, changed were made in much greater depth than in 2003: resource categories were simplified (Article 4); details are given as to the management of the UNESCO-Aschberg Bursaries for Artists (Article 5, para. 13) was spelled out; a “fundraising strategy” was included in the Statutes (Article 5, para. 14); the frequency of meetings of the Administrative Council was reduced and provisions were made for distance ordinary sessions (Article 5, para. 16 and 17); the Executive Committee was disestablished (former Article 6); and it was confirmed that the Director of the Division whose duties included those relating to the Secretariat of the 2005 Convention “shall serve as Director of the Fund” (new Article 6, para. 2).
44. Project management was amended to a smaller extent. The selection criteria (Article 2) were reworded to include the concepts of sustainable development (instead of overall) and cultural
43 Decision in ADG/ODG/00/209 of 25 October 2010. 44 Appeal of 19 December 2002 against the decision of 11 August 2000 and Appeal of 19 January 2003 against a decision of 23 January 2001 (travel expenses), a letter dated 13 December 2000 (special leave) and the decision of 8 March 2001 appointing his successor. 45 Report on the activities of the International Fund for the Promotion of Culture, 1998-1999 (30 C/INF.3) mentioned above. 46 34 C/5 Approved, para. 04015. 47 182 EX/Decision 33 in the light of documents 182 EX/33 and 182 EX/72. 48 35 C/ Resolution 48 (in the light of the report in 35 C/57) which “delegates to the Executive Board the authority to consider and possibly adopt the amendments to the Statutes of the International Fund for the Promotion of Culture, taking into consideration the recommendations of the Administrative Council of the Fund”.
185 EX/32 Part I – page 12 expressions (which replaced values and forms of expression). Emphasis was laid on training for cultural professionals and practitioners, intercultural respect and a culture of peace. It should be noted that the outgoing Administrative Council did not seem to have swung into action on the subject.49
4. ACCOUNTS REVIEW AND FINANCIAL ANALYSIS
4.1 ACCOUNTS REVIEW
4.1.1 Accounts Findings
45. The team audited paid-in contributions for the period by scrutinizing bank statements, audited interest earnings by reviewing bank confirmations for a selection of investments and audited and validated the cash flow accounts on the balance sheet. It ran tests on the charge accounts and analysed the balance sheet and operating account for the 1999-2009 period.
IFPC Operating Account 1999-2009
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Contributions 38 76 100 100 100
Interest earned 201 262 219 87 49 73 100 128 185 133 67
Income 201 300 219 163 49 173 200 228 185 133 67
Operations 33 70 119 131 130 74 98 147 32 3 -1
Staff and administration 276 148 72 48 51 64 64 68 75 106 1
Increase (decrease) in provisions -14 -24 -2 95 -82 37 -19 -8 -20 -6 for unliquidated obligations
Expenditure 295 194 189 274 99 175 143 207 87 103 0
Result -94 106 30 -111 -50 -2 57 21 98 30 67
46. The contributions paid into by the Fund for the 1999-2009 period were limited and amounted to $413,000, specifically: $37,600 from Sweden (account entries on contributions received in 1998) and the Philippe Charriol Foundation in 2000, $76,000 from the Ford Foundation ($50,000) and the Inter-American Development Bank ($26,000) in 2002, $300,000 from IDEAM between 2004 and 2006. No anomalies were found during the audit checks on paid-in contributions.
47. Interest earned on short-term investments amounted to $1,505,000 in the audit period. UNESCO made non-pool investments until the 2007 period at a fixed interest rate of 1.13% to 6.86%, depending on the market. Owing to the interest-rate volatility, Fund resources fluctuated widely. In 2007, IFPC fund management was centralized in the UNESCO pool. The table shows IFPC’s blocked fund at the end of each period in relation to interest earnings. No anomalies were found during the audit checks on interest earnings.
49 “The Secretariat, having contacted individually every member of the outgoing Administrative Council noted that only three of the 12 members would have wished to take part in such a meeting of the Council” (184 EX/21, para. 4). 185 EX/32 Part I – page 13
US $ Blocked funds Interest earned 1999 3,932 201 2000 4,005 262 2001 4,102 219 2002 3,780 87 2003 3,850 49 2004 3,700 74 2005 3,700 100 2006 3,700 128 2007 3,700 185 2008 3,700 133 2009 3,700 67 1,505
48. Projects amounting to $573,000 were financed from 1999 to 2009. Project financing activity plummeted in 1999-2000. No project was financed in 1999. Financing resumed between 2000 and 2005 and peaked in 2006 when 213 projects were considered and $131,000 were expended on projects. After project financing was suspended, operational expenditure was recorded in 2007 and 2008 only for the final disbursement on projects selected in previous years. No significant anomaly was found during tests on the validity of recorded operational expenditure.
49. Staff and administrative costs include salaries and related charges for the Fund’s staff and other administrative expenditure. No anomaly was found in the recording and validity of charges during accounting and payroll reconciliations, the analytical review of staff costs and detailed tests on a sample of invoices for expenditure incurred in organizing Administrative Council meetings.
1999-2009 Balance Sheet Assets 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Bank deposits 3,932 4,005 4,102 3,988 3,856 3,797 3,750 3,742 3,850 3,875 3,941 Interest receivable 32 33 21 26 29 Other debtors 10
Total assets 3,965 4,049 4,102 3,988 3,856 3,818 3,777 3,773 3,850 3,875 3,942
Liabilities and own funds Accounts payable 27 6 30 97 15 52 33 26 6 Own funds 4,032 3,937 4,042 4,072 3,890 3,841 3,766 3,743 3,746 3,845 3,875 Period result -94 106 30 -111 -50 -2 57 21 98 30 67 Aschberg deficit absorption -70 -73 -79 -17
Total liabilities and own funds 3,965 4,049 4,102 3,988 3,856 3,818 3,777 3,773 3,850 3,875 3,942
50. “Bank deposits” investments were validated by confirmation letters sent to the IFPC by the banks on the investment date. Those letters confirmed the amount invested and the interest rate. No errors or anomalies were found during the tests.
4.1.2 Financial flows between the IFPC and the Aschberg Bursaries Programme
51. The UNESCO-Aschberg Bursaries for Artists Programme, established in 1994, uses the interest earned on the sale of a property in Essonne donated to UNESCO in 1956 by two Swedish philanthropists to fund artists’ residencies.50 IFPC’s participation in the programme’s management
50 Headquarters Committee decision, 3 October 1988 (UNESCO/98 HQ/4), 136 EX/Decision 8.8 of June 1991, 27 C/Resolution 3.18 of November 1993 (in view of the report in document 27 C/104), Financial Regulations adopted in November 1993 (142 EX/Decisions 5.5.5).
185 EX/32 Part I – page 14 was endorsed when the Statutes were amended in 2003: “The Fund shall also administer the fund created by the sale of property constituting the Aschberg donation, which fund is managed separately by the Secretariat of the Fund, in consultation with an International Artistic Committee, for the purpose of financing the UNESCO-Aschberg Bursaries for Artists”. 51 The Bursaries Programme, too, was suspended at the end of 2006 and reactivated in June 2008.
52. The IFPC has on several occasions (2002, 2004, 2005 and 2006) financed shortfalls in the Aschberg Bursaries Programme amounting to $240,065. The necessary sums were debited from the Fund’s operating surplus ($148,758) and the remainder from the IFPC’s own capital ($91,307). The IFPC’s capital was therefore lower between early 1999 and late 2009, but would have grown were it not for the Aschberg Programme subvention.
53. The Administrative Council seems to have been apprised of those fund transactions, for the Executive Committee agreed in December 2002 to a drastic $332,832 withdrawal from the IFPC capital in order to cover the deficit incurred in 2002 and to continue minimally to fund cultural projects and grant bursaries to artists in 2003.52
54. The IFPC has also financed on several occasions expenditure that should have been charged to the Aschberg account, such as a programme evaluation ($6,498 in 2007). Lastly, the IFPC has financed that account indirectly by covering the total remuneration of persons working practically full-time (80-100%) for the Bursaries Programme, in particular a grade G-5 staff member (see below).
Conclusion: It is recalled that only expenditure relating to an account’s purpose may be charged to a special account (UNESCO’s Financial Regulations, Article 1.6-c).
4.2 FUND RESOURCES: VOLATILITY AND CONTINUOUS DECLINE
4.2.1 Resources dry up
55. Most of IFPC’s capital (almost $6 million since it was established) was paid up in its early years in the form of voluntary government contributions. The three “founding” countries, Venezuela, Iran and Saudi Arabia,53 provided nearly 80% of public contributions to the Fund. They were joined in the 1980s and 1990s, albeit to a smaller extent, by another two countries, Kuwait and France.54
56. Since 1999 the Fund has not drawn any more public funds, showing a poor capacity for mobilizing funding other than in its first few years of existence.
57. Nor have its resources been diversified. Private financing has never really taken off. During the period under review, only three partnerships were established, namely with the Ford Foundation ($50,000), the Inter-American Development Bank ($26,000) and the Crédit Agricole ($300,000).
US $ 1974-1980 1981-1998 1999-2009 TOTAL Governments 4,154,323 877,050 0 5,031,373 Private sector 97,698 446,152 378,570 922,420 Interest 1,028,208 6,593,784 1,503,678 9,125,670 Grand total 5,280,229 7,916,986 1,882,248 15,079,463
51 Article 4.2 (new) of the IFPC Statutes (165 EX/Decision 6.4). 52 Executive Committee resolution dated 2 December 2002 (the actual deficits amounted to a smaller sum of $181,560). 53 Contributions of $1,999,744, $992,693 and $909,645 respectively. 54 $300,000 (and $100,000 from the Emir) and $295,168 respectively. 185 EX/32 Part I – page 15
58. Owing to the drastic fall in interest earned on the investment of the Fund’s capital since the mid-1990s, it has been difficult to manage commitments. In order to mitigate the effects of a sharp drop in resources as a result of plummeting interest rates, and to maintain a minimum base of commitments, the Administrative Council of IFPC decided, on several occasions, to draw on the Fund’s capital and lower the level of the reserve. Deficits were recorded at the end of the 1999, 2002, 2003 and 2004 financial years.
Trends in IFPC interest earnings (US $)
300 000
250 000
200 000
150 000
100 000
50 000
0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
59. Resources reached their nadir in 2009. They barely covered the overheads needed to keep the Fund operational, estimated at $68,000 if 2006, when IFPC experienced significant activity and overheads were contained, is used as the base year.
4.2.2 The Fund’s short-term investment
60. The IFPC’s Statutes are silent on short-term investment. The IFPC’s Financial Regulations provide for the constitution of a reserve fund “with the resources of the fund”.55 “The amount of this Reserve Fund shall be determined by the Director-General from time to time.” In the early 1980s, “the Administrative Council considered that the Fund should in future be able to operate on the basis of the interest derived from its banking holdings alone. This development will, of course, depend on trends on the money markets, and on the mobilization of further voluntary contributions”.56
61. The amount of the funds invested has varied over time at around $3.7 million. The Administrative Council of the Fund does not seem to have set the desirable amount of the reserve fund in accordance with the regulations on the use of the Fund’s resources. The only document found is the record of a meeting of the Administrative Council held in 2004.57
62. The Director-General decides on the Fund’s investment policy, in consultation with the Administrative Council. 58 The IFPC’s Administrative Council voiced concern on numerous occasions (2003, 2004 and 2006) about the low capital investment return. The minutes of its various meetings show that it was properly informed by the Bureau of Financial Management. In 2004, it did not follow the advice of the Bureau of the Comptroller, which counselled against long-
55 Article 6.1. 56 Above-mentioned IFPC document, 1984, p. 26. 57 Meeting of 22 March 2004: investment of $2.5 million in a three-year plan proposed by a bank, investment of $1 million in a conventional shorter-term deposit. 58 Article 10.1 of the Financial Regulations of IFPC and Article 9.1 of the Financial Regulations of UNESCO.
185 EX/32 Part I – page 16 term investment at a time when interest rates were expected to rise, and its funds were blocked for three years at 2.57% as market rates again rose to 4.76%.59
4.3. FUND EXPENDITURE: THE BURDEN OF OVERHEADS
63. The weight of overheads (staff costs and travel costs, including travel by members of the Administrative Council) in relation to operational costs (funding for individual or group projects) became clear from the late 1980s.60 Overheads accounted for an average of 68.2% of expenditure during the audit period. Operational costs exceeded overheads in 2003 and 2006 only.
Expenditure 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Overheads 100 78.5 62.1 60.1 35.9 67.0 66.6 39.2 80.1 69.0
Projects 0 21.5 37.9 39.9 64.1 33.0 33.4 60.8 19.9 31.0
Source: External Auditor, drawing on BFM financial statements.61
Trends in IFPC income and expenditure (1999-2009) US $
350 000 300 000 250 000 200 000 150 000 100 000 50 000 0 -50 000 -100 000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Project assistance Staff costs Other Total income
64. Staff costs charged to IFPC funds accounted for only a part of the Fund’s management charges. Since 2001, the Director of IFPC has been a UNESCO staff member remunerated under the regular programme. Other staff members from the Culture Sector, also remunerated under the regular programme, have worked for IFPC. Only one person (in the General Service category) was remunerated from IFPC during the period under consideration.
65. In an attempt to list chronologically the staff working for IFPC, ten persons were found:
(1) the Director serving on 1 January 1999 was remunerated until 31 December 1999;
(2) his successor (D-1) was remunerated from June to December 1999; he was placed on special leave on 1 October 2000;
59 Meeting of the Administrative Council of 27 February 2006, paragraph 10. 60 The IFPC in the 1990s (Administrative Council, May 1989) above-mentioned. 61 The cost of the meetings of the Administrative Council, included under operating (project) expenditure in the BFM table, has been moved into the overheads category. 185 EX/32 Part I – page 17
(3) a P-3 staff member was remunerated under the regular programme throughout 1999;
(4) the above-mentioned General Service staff member (G-4 then G-5) was remunerated full-time by IFPC from January 1999 to January 2009, but she was actually working for the Aschberg Programme;62
(5) a consultant was remunerated from IFPC from March to December 2000 under a fee contract;
(6) a P-3 staff member of the Organization was remunerated from the regular budget from November 2000 to June 2001; she worked for both IFPC and the Aschberg Programme;
(7) the new IFPC Director, the third in the period under examination, was remunerated from the regular programme from March 2001 to December 2005 (D-2); she divided her time between IFPC and her duties in the Culture Sector;
(8) a P-3 staff member was remunerated from the regular budget from June 2001 to March 2004; she worked for the Aschberg Programme;
(9) a P-4 staff member from the Culture Sector, remunerated under the regular programme, acted as Director until January 2007; she worked full-time for IFPC;
(10) a supernumerary was remunerated from IFPC from the first quarter of 2008 to draft an evaluation report at the request of the Division of Cultural Expressions and Creative Industries (CLT/CEI) (see above).
66. Owing to the transfer of funds from the IFPC to the Aschberg Programme, total staff and administrative costs allocated to the Programme were under-reported in the financial statements, while those charged to IFPC were, conversely, overestimated. When calculated, the overall ratio of IFPC overheads to the Aschberg Programme overheads63 seems to be reasonable for biennia between 2001 and 2006, when the two funds’ volume of activity was normal, but is very high for the years in which the IFPC was reactivated (1999, 2000) and very low when its activity was suspended (2007, 2008).
Conclusion: The audit of the financial statements of the International Fund for the Promotion of Culture drawn up every year by the Bureau of Financial Management (BFM/FRA) and the supporting financial documents does not call into the question the reliability of those statements.
4.4 ACTIVITY REPORTS: REQUIREMENTS MET ONLY IN PART
67. According to the IFPC Statutes, “The Director-General shall submit a report on the Fund's activities to the General Conference of UNESCO, at each of its ordinary sessions. The report shall also be submitted to legal entities or individuals who have contributed to the Fund's resources” (Article 9).
68. Reports on the Fund’s activities were indeed submitted to the General Conference for 1998- 1999, 2000-2001, 2002-2003 and 2004-2005. 64 Conversely, no report was drawn up for succeeding years, until the report that was submitted to the Executive Board at its last session.65
62 In 2007 she also continued to monitor contracts connected with the extrabudgetary programme for the Global Alliance for Cultural Diversity (Spanish Agency for International Development Cooperation). 63 Staff and administrative costs in relation to total expenditure. 64 Documents 30 C/INF.3 (August 1999), 31 C/INF.4 (August 2001), 32 C/INF.4 (June 2003) and 33 C/INF.5 (July 2005). 65 184 EX/INF.6 (March 2010).
185 EX/32 Part I – page 18
5. PROJECTS SUPPORTED BY IFPC FROM 1999 TO 2009
69. It has already been noted that IFPC’s archives are incomplete, which hampers analysis of the Fund’s activity to “promote: (a) national cultures, the values that they embody and the forms of expression that ensure their authenticity and identity; (b) artistic creation in all its forms, while respecting its independence and free expression; (c) international and regional cultural cooperation”.66
5.1 PROJECT EXPENDITURE
70. During the audit period, IFPC funded 67 projects amounting to $573,000 or on average $8,552 per project. Far less was allocated for projects than for overheads ($1.24 million). The assistance granted by the Fund had little impact because of its small size.
71. In 1999, no Fund expenditure was recorded on the financing of projects. Funding resumed between 2000 and 2005. In 2006, 213 projects were considered and $131,000 in assistance were granted. The Fund’s activity was then suspended. In 2007 and 2008, expenditure corresponded to the final payments on earlier projects.
Projects 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Considered ? ? ? 37 73 73 185 213 0 0 Selected 0 9 6 13 10 6 8 15 0 0 Source: Office of the External Auditor on the basis of the records of and preparatory work for the meetings of the Administrative Council of the International Fund for the Promotion of Culture.
5.2 PROCEDURES
72. No reference was found to a system of calls for projects. Information on the compilation of files is contained in the record of the Administrative Council meeting held on 17 and 18 June 2002. In 2006, a guide was posted on the UNESCO website detailing the content of files, and setting 15 November 2006 as the deadline for the receipt of files on projects for financial assistance for 2008.
73. Applications were examined by the Fund’s secretariat, which pre-selected a number of projects.
5.2.1 Criteria
74. The Statutes of the Fund seem to lay down project selection criteria, since they require IFPC resources to be “used to provide intellectual, technical and financial collaboration in areas such as:
(a) the formulation of strategies of cultural development regarded as an aspect of the overall development of individuals and of societies;
(b) the establishment or reinforcement of institutions, structures and facilities whose purpose is cultural or artistic, and of national or regional machinery for aid to cultural action and artistic creation;
(c) the training of specialists in cultural development and cultural action, such as planners, administrators, cultural activities organizers and technicians;
(d) cultural production and cultural circulation;
(e) research into cultural development;
66 Statutes, Article 2.1. 185 EX/32 Part I – page 19
(f) the organization of exchanges and meetings to encourage the mutual appreciation of cultures and understanding among peoples, in a spirit of peace and international cooperation”.67
75. Those numerous objectives seemed doubly ambitious: first, for the Fund, which could be undertaking a technical and financial support procedure requiring considerable resources; and second, for the applicants, who were required to submit particularly structured projects.
76. In 2002, the criteria were revised in the light of the Secretariat’s proposals based on the Administrative Council’s earlier decisions and an analysis of applications submitted for financing over the past few years.68 An exclusionary principle was introduced: IFPC support would not cover the publication of dictionaries, atlases or encyclopaedias, or the regular running of magazines or other periodicals, the making of fiction feature films, meetings other than those organized by the Fund itself (sole organizer or co-organizer), fellowships, study tours, projects designed in a country other than the country of implementation without being endorsed by the authorities or communities concerned and, lastly, projects that have not been approved by the authorities or communities concerned.
77. Project proposals that are not so excluded must meet several of the following ten criteria: serve the cause of safeguarding cultural diversity, promote national cultures, respect the cultural traditions of the country or region, respect human rights, participate actively in the enhancement of gender equality and tolerance and in the fight against racism, provide proof of the financial feasibility of the first phase of the project, foresee a minimal contribution in economic, social and educational benefits to an underprivileged social group, presuppose the creation of stable jobs, include a component on the improvement of know-how in the field of cultural management and, lastly, imply an innovative use of new technologies.
78. Since the Fund’s activity was suspended in 2006, it is difficult to measure the impact of those new rules.69 Moreover, project selection reports contain few explanations on the reasons behind the decisions. The quest for equitable geographical distribution of assistance was discernible and was mentioned at the end of the analytical reports on project applications. However, the Secretariat’s proposals, adopted without amendment by the Administrative Council, were not supported by a detailed analytical guide. The decisive factor is the financial criterion. Despite their importance, projects were rejected most frequently because they exceeded the scope of the Fund.
79. It should be noted that the Fund confines its action to financial operations only, although its Statutes also provided for “intellectual or technical cooperation” and “all other forms of activities that its Administrative Council may consider as being in conformity with the fundamental aims of the Fund and with its operational policy” (Article 3). Indeed, the Administrative Council decided in 2003 to create an IFPC label, a sort of recognition of the value of some projects, materialized by moral support, that could help applicants to raise funds more easily.70 The effect of the IFPC label has been unclear, to say the least, and there is no sign that it has contributed to raising the Fund’s profile.
5.2.2 Evaluations
80. Evaluations do not form part of IFPC’s customary management practices. No post-operation review was found in the Administrative Council’s documents and reports. Project reports, however brief, were very rarely compiled. Moreover, the IFPC evaluation report drafted by a supernumerary in February 2008 pointed out that there were no indicators that could be used “to express and
67 Statutes, Article 2.2. 68 Annual meeting of the Administrative Council of 17 and 18 June 2002. 69 The Fund did, however, receive a contribution of $50,000 to finance bursaries for artists, which was not authorized. 70 Report of the annual meeting of the Executive Committee (21 March 2003).
185 EX/32 Part I – page 20 measure the project results” in respect of, for example, the “notions of profitability and job creation that are crucial selection criteria”.
5.3 EXAMINATION OF A SAMPLE OF PROJECTS
81. Of the 23 files examined for 2000 to 2002, there were no supporting documents in three files and no final report in another six.
82. Of the 21 project files examined for 2003-2004, four were amendments to 2002 activity financing contracts (AFCs) liquidated at the end of the 31st biennium, though disbursements were still outstanding. Only one of the other 17 files – albeit a regularization file – contained a clear description of the project supported;71 five others were regularization files, as the contracts had been signed after action had been completed. There is no financial statement in one closed file and no progress report in three files. One file could not be closed because there were no supporting documents and no reply had been received to the request for reimbursement of the advance.72
83. In 2005, the IFPC supported eight projects. Two of which concerned the Harmony List (see below). Two others were regularization files. The files were sometimes poorly kept, but complete. A documentary on the work of the Timor-Leste Truth and Reconciliation Commission, backed by the IFPC, won awards at several international festivals.73 A list of 160 projects rejected was found. Another 25 projects were “labelled”.
84. The Administrative Council selected 15 projects ($140,000) at its session on 27 February 2006, including one placed on the Harmony List. Only the initial disbursement was made on one of the files.74 There was no progress report in two files, which primarily concern the purchase of equipment. The overall provisional budget, showing non-IFPC funding and crucial in ascertaining the multiplier effect of the Fund’s operations, was included in the files of only five projects. The IFPC had stressed, however, that an endeavour to achieve “multiplier effects” was a “prime requirement” for its involvement.75
Conclusion: The conclusion drawn from the examination of projects and their management is that the files of projects financed are sometimes incomplete and that the subsequent development and impact of projects are not monitored.
5.4 PARTNERSHIPS
5.4.1 The Harmony List
85. In November 2003, UNESCO, through the IFPC, signed a “partnership agreement for the creation of an international list of best cultural practices contributing to sustainable development (Harmony List)”76 with a French portfolio management company (a subsidiary of Crédit Agricole) that specializes in socially responsible investment. A “yearly Harmony practice” was to be jointly selected as the keynote of an annual cultural and media event.
86. The partner contributed a sum corresponding to 0.10% of the outstanding Sustainable Development assets of one of its SICAV funds, and a guaranteed minimum of $100,000 per annum. The guarantee was met in each of the three years of the partnership.77
71 Multidisciplinary festival in Sarajevo and Strasbourg, April and October 2002 (AFC of 22 January 2003, $8,072). 72 Sur la route des caravanes (AFC of 31 December 2003, $6,000, advance of $4,800). 73 Passabe – Justice traditionnelle et recherche de la réconciliation au Timor-Oriental (AFC of 5 May 2005, $4,700 for the subtitling of the documentary). 74 An Art School in Dandora, Kenya (AFC of 7 August 2006, $7,630). 75 Above-mentioned IFPC document – Origin – Characteristics – Activities, 1984, p. 32. 76 Agreement with IDEAM (Integral Development Asset Management), 20 November 2003. 77 Raising contributions of $70,505 in 2003, $97,737 in 2004 and $81,370 in 2005 to $100,000. 185 EX/32 Part I – page 21
87. The partnership was managed by a joint committee that met once a year. As minutes of meeting or records of decisions were available, it was difficult to form a clear view of its activity. It was required each year to examine approximately ten proposals chosen by the Culture Sector.78 It selected one or two practices. A pamphlet was published on the best practice selected and an event was held locally (Amman in January 2005, World Forum on Cultural Diversity in Hangzhou in November 2005, Tapoa Camp in January 2007).
88. The proposals are drawn up in great detail and the Committee can genuinely choose. The pamphlets describing the prizewinning practices are well-made and interesting. However, the files reviewed are somewhat disappointing in regard to “downstream” action. They contain no information on the dissemination of the pamphlets despite the IFPC’s promised undertaking to “(circulate) this pamphlet through its information channels”. Furthermore, the communities whose practices have been honoured have received very little aid from UNESCO. The IFPC has nonetheless invited the practitioners of the prizewinning practices to request IFPC funding for a cultural project that contributed to their community development.79
89. The awards for prizewinning practices in 2004 comprised a $10,000 grant to Bedouin Hospitality (Jordan) for the development of a “marketing strategy for traditional Bedouin products”.80 In regard to the Cree Bush Schools (Canada), the only document found was a letter from the acting IFPC Director declaring the granting of a $10,000 grant; the project does not seem to have been implemented.81
90. The practice selected in 2005, Traditional medicine of the Chinese Miao community (China), was awarded $10,000 for a research and development project.82
91. In 2006, a press release announced the selection of two practices: Habbanae (“bond” in Fulani) (Niger) and Abuelas Cuentacuentos (Grandmother Story-Tellers) (Argentina). 83 The Habbanae project was rounded off by a pamphlet and an official ceremony, but the file perused containted no evidence of follow-up action on the funding request submitted by the Embassy of Niger.84 The Grandmother Story-Tellers situation is even more unclear. The acting IFPC Director announced in June 2006 to the Chaco Foundation – which supported the practice – that it had been selected as a best cultural practice: “The Foundation […] shall be invited by the IFPC to submit a request for funding that would benefit the Grandmother Story-Tellers programme.” That information was confirmed by an official letter dated August 2006. Submitted in October 2006, the project was considered “excellent” by the IFPC which then established an account code for the Foundation, which was informed that the $10,000 would not be released to it before May 2007”.85 However, no activity financing contract was concluded with the Argentine Foundation and no grant was paid.
92. Questioned by the auditing team about the 2006 practices, the Division replied that the two contracts had not been drawn up by [the acting Director], nor had they been authorized by the Director of the Division; furthermore, the letter from [the acting Director] and the press release did not suffice to justify the conclusion of a contract because [the IFPC Secretariat] could not provide written proof of the decision to award the grant.
78 Practice identified “in cooperation with the UNESCO LINKS (Local and Indigenous Knowledge Systems) project and UN-Habitat” (Note to the Administrative Council of the IFPC at a meeting on 22 March 2004). 79 IDEAM press release – IFPC – UNESCO, 5 July 2004. 80 AFC, 5 May 2005, balance paid in March 2006 on receipt of a project completion report and a statement of expenditure. 81 Letter dated 16 March 2006: Elders and youth sharing paths to well-being (Chisasibi First Nation). 82 AFC, 14 July 2006, Traditional Medicine of the Chinese Miao Community: research, development and organization, balance paid in 2007 on receipt of a statement of expenditure, but no narrative account was provided. 83 Press release IDEAM – IFPC – UNESCO dated 20 June 2006. 84 Letter dated 25 August 2006, Assistance for the recognition of the Habbanae tradition in the Wadaabe community ($22,847). 85 IFPC email dated 22 June 2006, letter CLT/ACE/IFPC/382 dated 7 August 2006, IFPC email dated January 2007, Vendor code created in the SAP (System Applications and Products) on 17 January 2007.
185 EX/32 Part I – page 22
93. As stated above, the IFPC has never produced a record of the decisions of the joint partner- UNESCO committee, which effectively constituted an anomaly that was not specific to 2006 and should be remedied by the Division. Accounting documents show that an “IFPC jury for the List of Best Cultural Practices in 2006” did indeed meet on 15 June 2006 and that the Organization defrayed the related costs and publication costs for the Habbanae pamphlet. Admittedly, the Administrative Council did not endorse the joint committee’s 2006 decisions, because it did not meet after its meeting on 27 February 2006 at which it approved the 2005 Harmony List. However, letters addressed to a person outside the Organization, bearing the UNESCO stamp and signed by a staff member in his capacity as acting Director of the IFPC could only be binding on the Organization. Furthermore, the Director-General of UNESCO had endorsed the procedure by informing the president of the partner company in writing that he had requested a chief of section from the UNESCO World Heritage Centre to represent him at the seminar held on the occasion of the forthcoming award of the Harmony Prize to the Habbanae tradition of the Fulani people of Niger. 86 The award of the prize in 2006 to the Habbanae tradition is mentioned in a report submitted to the Executive Board in March 2010.87 94. In short, with regard to the $300,000 provided to the IFPC by its partner, only two $10,000 grants (Bedouin Hospitality in 2004 and Traditional medicine of the Chinese Miao community in 2005) and the costs of producing the pamphlets outlining two best practices can be accounted for with any certainty.88 The operational costs ratio is abnormally low. 95. The private partner, good-naturedly, has demanded neither statements of expenditure nor narrative accounts, but has been content with the project’s effects on the company’s image.89 It has not been requested to renew the partnership for a fourth year, which was no longer consistent with its post-restructuring strategy. Conclusion: The operating costs ratio calculated for the Harmony List is not acceptable. In view of the efforts made by the Administrative Council, the IFPC’s Director and secretariat and the joint partner-UNESCO committee to select cultural practices worthy of the award, it is all the more incomprehensible that decisions have not been followed up.
Recommendation No. 1. Review the commitments made to practitioners of the Cree Bush Schools, Habbanae and Grandmother Story-Tellers best practices in order to uphold them.
5.4.2 Other initiatives
96. Other partnerships were not reflected in the IFPC accounts. According to the former Fund Director, who chaired the jury, the Postésie 2000 90 competition gave rise to some important partnerships.91 Some of those partners were involved in the KEO (satellite) project; UNESCO92 and the IFPC were mentioned in documents published by the designers and promoters of that project.
86 Letter DG/A.1/07/02 dated 20 February 2007 signed by Mr Matsuura. 87 Report in 184 EX/INF.6, para. 9. 88 Cree Bush Schools and Habbanae (€3,022 in 2007). 89 Apart from the financial performance of its funds, […] the company has notably sponsored the renovation programme of the Villa Médici for the last four years, and has been coordinating a humanitarian project in Niger in partnership with UNESCO since 2007. (wiki.jepargne-utile.com). 90 Presentation of trophies in UNESCO’s major conference hall, 19 December 2000. 91 La Poste, Arianespace, Atomic Energy Commission and Ricoh France, in particular. 92 Letters from the Director-General in 1999 (DG/22/58, 8 May 1999) and the president of the French National Commission for UNESCO (18 March 2005). 185 EX/32 Part I – page 23
6. LIKELY REFORMS
97. The idea of the IFPC making a comeback in its original form seems hardly feasible or relevant, given its methods of operation and the great change in the priorities set by UNESCO’s governing bodies for Major Programme IV – Culture.
98. Thought must therefore be given to likely reforms that will adapt IFPC and bring it in line with the strategic priorities of Major Programme IV – Culture.
6.1 CONSIDERATIONS
99. When the now-suspended International Fund for the Promotion of Culture (IFPC) was first established, its distinctive feature was the dual originality of its terms of reference and its organization. IFPC was an international initiative taken to promote the cultural dimension of development. Its initial goal, to become a bank for culture, required it to attain a critical mass estimated at $10-$20 million by the end of 1977. It stood out by its flexibility – it could finance individuals and private corporations directly – and its autonomy of action, since it had its own governing bodies.
100. Quite clearly, IFPC has not met any of those goals. It did not attain the desired critical mass. No evaluation of its impact has ever been made or even attempted since its establishment. Its ad hoc governing bodies have proved to be costly and cumbersome and IFPC has been wracked by a number of leadership crises. The cultural aspect of development has been promoted primarily through the drafting and adoption of several international conventions in the field culture in the last ten years.
101. Furthermore, disregarding the open-ended outreach enshrined in Article 3 of its Statutes, the Fund has confined its action to the award of grants 93 and has not engaged in intellectual or technical cooperation or “other forms of activities”.
102. The context in which IFPC operates has changed tremendously since 1974, particularly as a result of the expansion of UNESCO’s cultural action, whether through the regular programme, innovative partnerships or specialized funds; greater involvement in the field of culture by other international organizations or development banks; policies in support of cultural industries implemented by States and regional unions or communities such as the European Union; and the emergence of new technologies and innovative ways of funding culture.
103. Analysis of the procedures for processing cultural projects selected to receive IFPC aid since 1999 shows that although many criteria have been set, the only obvious policy has been a concern to strike a geographical balance in the Fund’s operations. Selection was based mainly on financial considerations. Lastly, the Fund’s operations were rooted in the short term and made no provision for monitoring and evaluation.
104. The experience of the Harmony List, the only sizeable partnership extant during the audit period, revealed serious shortcomings.
105. The results achieved fall far short of the aims outlined in the IFPC Statutes (Article 2), which rest on the notions of strategies, overall development, training of specialists and research. These concepts all connote durability, but none was put into practice during the audit period.
93 It would seem that the Administrative Council opted for this method of operation as early as 1977 (26 C/95, para. 9 and note).
185 EX/32 Part I – page 24
6.2 PROSPECTS
6.2.1 Disestablishment of the IFPC?
106. The logical conclusion to be drawn from the findings above is that the special account should be closed.
107. A decision to use capital to heighten the impact of the Fund’s operations by increasing the amount of resources allocated each year would also lead quite quickly to that conclusion.
108. None of the provisions in the Statutes of the IFPC addresses its closure. That said, the Financial Regulations of the Special Account for the International Fund for the Promotion of Culture provide that “The Director-General may decide to close the Account when he deems that the operation of the Fund is no longer necessary”. 94 The Director-General would then inform the Administrative Council of the International Fund for the Promotion of Culture and the Executive Board of UNESCO of the decision. This provision is consistent with the standard model text for financial regulations of special accounts.95
6.2.2 Revamp IFPC?
109. In view of the current dearth of public and private financial resources, it seems hardly realistic to require a particular Fund, whatever its position, to be the sole beneficiary of large amounts of new funding. The overheads recorded during the audit period, whether financed under the Fund or under the regular programme, are prohibitive in view of the impact of funding such limited projects.
110. In regard to the Fund’s governing bodies, a distinction should be drawn between managerial autonomy and intellectual freedom. IFPC could accordingly have an advisory council which would meet every four years to decide on the Fund’s aims and purposes and its working methods in consonance with the Organization’s Medium-Term Strategy and to examine performance reports for the preceding period. The Fund’s operational management would be entrusted at a lower cost to programme specialists and managers in the Culture Sector.
111. To avoid piecemeal activities and to keep the Fund’s profile sufficiently high, clear operational rules must be set, covering overall maximum project allocations, Fund-specific operational rates, monitoring and impact measurement tools.
Recommendation No. 2. Any discussion on a new IFPC policy thrust for IFPC must also entail the development of impact indicators that should be monitored systematically.
112. A statement by the Director-General at the beginning of the audit period highlight, on rereading in 2010, the wide gap between the Fund’s ambitions and its performance:
“At its very first session, the Administrative Council made a point of emphasizing that the action of IFPC should also be directed towards the search for “profitability”, in synergy with the public, private and voluntary sectors, by encouraging projects that would promote “job creation”, particularly in “cooperation with funds, banks, foundations and associations”, and by improving “cultural cooperation at the regional and subregional levels” in order to give prominence to “cultural ventures that may at the same time be of interest to other sectors such as education, health, housing, technology, the environment and so on."
94 Document 113 EX/13, Annex, Article 11. 95 161 EX/Decision 7.10, Annex, Article 8. 185 EX/32 Part I – page 25
“The founders of IFPC specified that the Fund, as the first international mechanism … for the financing of cultural development, has a broad range of possibilities by virtue of which it can act, depending on circumstances, as a ‘cultural bank’, a source of technical and intellectual assistance, an organizer of promotional activities or an administrator of funds-in-trust, through investments, loans, subsidies and various types of participation.”96
113. If it is considered that IFPC must be kept operational, the search for profitability, in synergy with the Organization’s culture programme and drawing on all the means of action available under the Fund, is more necessary than ever before. Its flexibility must be used to full advantage in order to “promote the integration of culture into national and international development frameworks”.97
Comments by the Director-General:
The Director-General acknowledges with thanks the External Auditor’s report on the International Fund for the Promotion of Culture and notes its usefulness for the new Assistant Director-General for Culture who took up his functions on 19 May 2010. The Director-General accepts the recommendations made in the report and will report on their implementation.
96 Report on the activities of the International Fund for the Promotion of Culture, 1998-1999 (30 C/INF.3). 97 Document 35 C/5 Approved, para. 04005, which refers in particular to “devising operational tools for this purpose”.
Printed on recycled paper
Executive Board 185 EX/32 Hundred and eighty-fifth session Part II
PARIS, 13 August 2010 Original: French
Item 32 of the provisional agenda
NEW AUDITS BY THE EXTERNAL AUDITOR
PART II
AUDIT REPORT ON THE DIVISION OF WATER SCIENCES OF THE UNESCO NATURAL SCIENCES SECTOR
Summary
In accordance with Article 12.4 of the Financial Regulations, the External Auditor submits his audit report on the Division of Water Sciences of the UNESCO Natural Sciences Sector. 185 EX/32 Part II
Office of the External Auditor of the United Nations Educational, Scientific and Cultural Organization
AUDIT REPORT ON THE DIVISION OF WATER SCIENCES OF THE UNESCO NATURAL SCIENCES SECTOR
TABLE OF CONTENTS
1. Framework and scope of the audit ...... 3 2. Administrative organization of the Division of Water Sciences...... 3 2.1. Limited formal organization...... 3 2.2 Suboptimal organization ...... 4 3. Financial resources management of the Division of Water Sciences...... 5 3.1 Programming approach ...... 5 3.2 Determining budget resources ...... 5 3.3 Implementation of extrabudgetary resources ...... 6 3.4 Project monitoring...... 7 4. Use of consultants ...... 8 4.1 Limited competition...... 8 4.2 Circumventing the rules on the maximum length of contracts ...... 10 4.3 Service provided ...... 11 5. Actions carried out by the Water Sciences Division...... 12 5.1 International leading role in the field of freshwater ...... 12 5.2 Preparedness for water-related disasters...... 14 5.3 UNESCO Chairs in the field of water sciences...... 15 5.4 Publications ...... 15 185 EX/32 Part II – page 3
1. FRAMEWORK AND SCOPE OF THE AUDIT
1. The audit was carried out in March 2010 on the premises of the Division of Water Sciences of the UNESCO Natural Sciences Sector (SC/HYD), pursuant to Article 12.4 of the Financial Regulations. Taking account of previous audits, particularly those by the Internal Oversight Service, 1 an organic approach was adopted, targeting the Division of Water Sciences of the UNESCO Natural Sciences Sector, and the subject of freshwater selected.
2. For the years 2007 to 2009, the audit was concerned with the organization of the Division, the financial resources allocated to its operations and activities, the Division’s use of consultants and certain actions for water sciences carried out under its responsibility. The audit team examined documents and operations, and interviewed those in charge of the Division. The team also met with the Rector of the UNESCO Institute for Water Education (IHE), former head of the Division,2 and the Coordinator of WWAP.3
2. ADMINISTRATIVE ORGANIZATION OF THE DIVISION OF WATER SCIENCES
2.1. LIMITED FORMAL ORGANIZATION
3. The Division is structured by Sections based on subject areas: urban water systems, hydrological systems and climate change, water and sustainable development and the WWAP secretariat. The Division has 35 posts: 1 director post (D-2), 22 Professional posts (P) – including 8 Appointments of Limited Duration (ALD) – and 11 General Service posts (G).
4. Several organization charts for the Division were presented during the audit. The organization charts did not always contain the same names, and the audit team were told that the charts were out of date when this was mentioned (despite the fact that the team had been given the charts by the Division at the beginning of the audit). An up-to-date organization chart was given to the auditors at the final meeting.
5. In practice, this structure appears to be largely theoretical. The scientific nature of the work no doubt involves interaction among highly qualified people from different and complementary disciplines. However, the audit identified the disadvantages of operating without a clearly identified objective for Sections and programme specialists.
6. Staff found it difficult to identify their hierarchical superior (supervisor), particularly during the individual assessment. Heads of Section were unable to assess their collaborators, either because the latter failed to participate in the exercise or because service attachments had been changed without their having been informed, or again because the objectives of the Heads of Section themselves had not been validated. These factual observations are based on the actual documents recorded in the PERFOWEB application of the Bureau of Human Resources Management.
7. It should be noted that the objectives set for the Director of the Division, who was in post until September 2009 (when he was appointed Head of IHE), were not validated by his supervisor (the
1 IOS, Evaluation of UNESCO Strategic Programme Objective 3: Leveraging scientific knowledge for the benefit of the environment and the management of natural resources, July 2009; Management Review of the Administrative and Support Structures and Functions of the Natural Sciences and Social and Human Sciences Sectors, September 2009. 2 Until August 2009. 3 United Nations World Water Assessment Programme. 185 EX/32 Part II – page 4
Assistant Director-General for Natural Sciences). The results he achieved were not assessed at the mid-biennium stage or before his departure.4
8. According to the assessment files for the four Heads of Section, 5 their tasks and the expected results were duly described. However, their objectives were not approved by the supervisor. The Heads of Section did not therefore receive an overall assessment. The Division stated that the assessments were carried out after the audit period.
9. One of the nine programme specialists did not describe results and expected tasks, despite being reminded by the supervisor. The PERFOWEB files for two programme specialists contain no job description. Two other programme specialists were assessed by a person who was not their immediate supervisor; one is not assigned to the Section responsible for that person’s activities; and a fifth programme specialist only produced a very brief description of tasks (the supervisor made no comments on achievements but considered that the person fulfilled expectations perfectly). There was no assessment file opened for a sixth programme specialist. The Division stated that corrective action had been taken to complete the missing or incomplete files.
10. Overall, it was noted that the human resources management policy defined by UNESCO for assessment is not fully applied in the Division of Water Sciences. Assessments for 2008-2009 were carried out after the audit, but were insufficiently completed for previous periods. The regrettable result is that, without an individual definition of their objectives, some staff members were unable to benefit from a clear and objective assessment of their actions.
Recommendation No. 1 : In order for the organization chart to be more than theoretical, apply the rules defined by UNESCO for the assessment of individual performance and ensure that each member of the Division is assessed by his/her direct supervisor.
2.2 SUBOPTIMAL ORGANIZATION
11. Staff is very unevenly spread among the Sections. Furthermore, when operations are in practice very different from the organization chart, this may reduce a Section’s required staffing level very substantially. Generally speaking, there is a relatively high number of administrative support staff in proportion to scientific staff (7/13).
12. It was noted that the manner in which programme specialists classified as P-3 carry out their duties varies greatly from one Section to another, with some enjoying full technical and financial autonomy while others are only moderately autonomous and are less independent than contractual staff at a lower grade.
13. There appears to be insufficient discussion within the Division on the distribution of the budget among Sections. It would be advisable to formalize the organization of and follow-up to Division meetings. It was noted that Heads of Section were not in a position to comment on the progress of various projects implemented by their Section, on account of a lack of updated management charts.
Recommendation No. 2: Strengthen mutual information procedures within the Division.
4 Human Resources Manual, Article 14.3, paragraph 31. 5 Including the WWAP Coordinator. 185 EX/32 Part II – page 5
3. FINANCIAL RESOURCES MANAGEMENT OF THE DIVISION OF WATER SCIENCES
3.1 PROGRAMMING APPROACH
14. For UNESCO to achieve the objectives that it has set in water sciences, the said objectives (defined by the Medium-Term Strategy – document C/4) must match the financial resources that the Organization has available (in the framework of the Programme and Budget – document C/5 – approved by the General Conference).
15. For the period 2008-2013, UNESCO’s policy is based around five overarching objectives with 14 Strategic Programme Objectives. The second overarching objective, “Mobilizing science knowledge and policy for sustainable development”, refers to water sciences in relation to the strategic objectives of Programme 3 (Leveraging scientific knowledge for the benefit of the environment and the management of natural resources) and Programme 5 (Contributing to disaster preparedness and mitigation).
16. During the 2006-2007 biennium (33 C/5), water and associated ecosystems were a main priority that received 49% of the resources allocated to Major Programme II (45% in 32 C/5). Document 33 C/5 specified four actions relating to water: assess and manage the impacts of global changes on the water cycle; manage water as a scarce resource in relation to human requirements; mitigate water-based risks and face social challenges; and manage land-water- habitat interactions using an ecosystem approach. These objectives and action areas had been individually budgeted for in document 33 C/5, with actions broken down in the regular budget, extrabudgetary funds and the decentralized budget. There were therefore well-defined special programmes with specified financing and technical details.
17. As a result of the simplification of the programming process, document 34 C/5 grouped together water science with other disciplines (actions 1 and 3), and document 35 C/5 integrated the water programme with other programmes under a single action line. It is more difficult to carry out a comparative analysis. The tightening of the programme also led to a significant reduction in the number of expected results: document 33 C/5 contained 16 expected results for the end of the period in terms of water sciences, whereas documents 34 C/5 and 35 C/5 contained five and three expected results, respectively. The same trend occurred for performance indicators, which do not all have benchmarks.
18. Producing work plans ensures that programmed activities lead directly to results. Such plans should feature a detailed description of the strategy implemented and the expected results. However, the work plans in the SISTER programming and monitoring tool sometimes refer to the number of workshops organized, studies carried out, information bulletins produced or water plans monitored, rather than to results or observed impact. It is essential to be able to check, for instance, that capacity-building has actually ensued from the various training workshops.
Recommendation No. 3: Improve the quality of programming documents, particularly the formulation of performance indicators and benchmarks.
3.2 DETERMINING BUDGET RESOURCES
19. There is insufficient mutual information when it comes to distributing the budget allocated within the Division to the various working groups and actions to be carried out. The audit team itself only received explanations on developments in the Division’s actions and activities at a late stage.
20. Despite the United Nations declaration proclaiming 2005 to 2015 as the International Decade for Action – Water for Life, the budget allocated to water sciences has fallen since the 2006-2007
185 EX/32 Part II – page 6 biennium, by more than 20% during the biennium 2008-2009. The share of water sciences within the Sector is decreasing: 36.4% in document 33 C/5 ($8.37M out of $23M), 33.3% in document 34 C/5 ($7.12 million out of $21.36 million) and 32.6% in document 35 C/5 ($6.68 million out of $20.5 million). According to the Division, expenditure for the 2008-2009 biennium was $7.5 million, which represents 32.9% of the total expenditure of the Natural Sciences Sector, compared with $8.74 million (35.3%) for the 2006-2007 biennium.
21. The decentralization rate for regular programme funds for water sciences was unchanged in the two most recent bienniums 2006-2007 (41.5%) and 2008-2009 (41.7%). An increase is provided for in document 35 C/5 (44.6%).
22. The regular water sciences budget is distributed among activities and personnel costs to the tune of 46.9% and 53.1%, respectively, for the biennium 2008-2009. 6 The proportions are expected to change to 33.6% and 66.4% in 2010-2011. Indeed, personnel costs at Headquarters have doubled between 2006-2007 ($4.88 million) and 2010-2011 ($10.03 million), not including assistance from staff from other Divisions of the Natural Sciences Sector.
23. Determining the overall cost of staff participating in water-related activities (regular budget) and projects (extrabudgetary resources) implies that staff time is distributed by action line and by project. This distribution makes it possible to analyse the cost and efficiency of actions carried out. Information on the overall cost of staff working in the area of water was not available and was only communicated at the end of the audit. In fact, the audit team had to use an estimate of the number of person-months by action line (made by the Sector) and then apply standard costs (published by the Bureau of the Budget), to highlight “water” activities within the lines of action.
Recommendation No. 4: Make the necessary arrangements to make it possible to calculate, in consultation with the Bureau of the Budget, the overall cost of implementation of projects and activities.7
3.3 IMPLEMENTATION OF EXTRABUDGETARY RESOURCES
24. Extrabudgetary resources for the funding of Natural Sciences Sector projects were estimated at $175.09 million in the 2008-2009 budget, as against $188.36 million in 2006-2007. Such resources are estimated at $185.12 million for 2010-2011. Uneven though they are, extrabudgetary resources represent about three times the regular budget.
25. For water sciences, a comparative analysis is made difficult by the changes in how water science actions are budgeted. The main donors are Italy (35%) and Libyan Arab Jamahiriya (30%).8 Expenditure from private funds represents just 1% of expenditure from extrabudgetary funds.
26. The cumulative sum of expenditure from extrabudgetary funds for projects that come under water sciences during the 2008-2009 biennium stood at $39.25 million at 5 March 2010,9 which corresponds to 80% of the funds set aside for this purpose ($48.77 million). These are often projects that extend over more than one biennium (1 to 20 years, with an average of 4 years).
6 $6.82 million (activities) and $7.74 million (staff) in document 34 C/5. 7 Recommendation taken from the report 184 EX/8 Part III, Recommendation No. 11. 8 Training and technical documentation actions linked to the major project to capture and transport aquifers from southern Libya (Great Man-Made River Water Supply project, $14.8 million, 1990). 9 $39,246,458. Source: administrative departments of the Water Division. 185 EX/32 Part II – page 7
27. One project that was scheduled to end in 2009 had an implementation rate of only 39.2%.10 Other projects have been terminated with modest implementation rates in terms of the funds initially provided for 8.5% (for two projects from 2006 and 2007)11 and 27.4% (for a project in 2008)12.
Recommendation No. 5: Improve checks on projects with very low implementation rates, by using quarterly monitoring reports and meetings to review programme implementation.
3.4 PROJECT MONITORING
28. Results-based management is an important part of the Organization’s Medium-Term Strategy.13 The advantage of this approach is that it makes heads of project responsible, and they can implement changes at the level of regular budget items and the components of the activity. There should, however, be a reporting obligation during implementation by means of updated work plans. The substantial amount of extrabudgetary contributions calls for strict monitoring, in order to ensure a satisfactory level of recovery for donors, improve project implementation and enable expenditures to be traced by source of funding.
29. In fact, 36.5% of water science activities are financed by extrabudgetary funds, while 55.5% are financed from regular budget resources, with 22.1% using both types of resource simultaneously and 8% from the balance committed but not spent at 31 December of the previous year. The external auditor has already recommended a harmonization of monitoring and reporting, regardless of the source of funding (regular budget or extrabudgetary funds).14
30. Prior to 2010, programming extrabudgetary funding was not carried out by the Water Division. In recent years, quantitative and qualitative improvements have been made to the SISTER system. The Secretariat (Bureau of Strategic Planning – BSP) has indicated that ongoing extrabudgetary projects should be integrated into SISTER by September 2010 for the 35 C/5 programme.
31. UNESCO’s budgetary and financial accounting tool (FABS) could facilitate the monitoring of project implementation by activity, as defined in project contract documents. However, extrabudgetary funds used in field offices are monitored at a more global level. The External Auditor has already recommended the creation of budget sub-codes when the budget code is created in the FABS project management module.15 In practice, the implementation of projects ends, at best, with a descriptive report of the work carried out. Furthermore, the funding agreements do not provide financing for the subsequent measurement of the observed impact of the project.
Recommendation No. 6: Systematize the ex post evaluation of projects and the measurement of the impact of actions carried out by UNESCO in the area of water sciences, particularly with a view to identifying redundant, underperforming or non- priority programmes.
10 Project 213 RAF 2002 on the hydrogeological risks in the Mali-Niger-Nigeria Lullemeden Aquifer System ($80,000 from the United Nations Environment Programme (UNEP), 2004). 11 Project 570 GLO 2004 on scientific advice ($64,850 in private funds) and project 914 BRA 2014 on integrated water resource management ($2,013,761, Brazil). 12 Support of the Ecohydrology component ($66,000). 13 Document 34 C/4, paragraph 132. 14 See recommendation No. 10 in the above-mentioned report 184 EX/8 Part III. 15 See recommendation No. 9 in report 184 EX/8 Part III.
185 EX/32 Part II – page 8
4. USE OF CONSULTANTS
32. Expenditure on individual consultant contracts and fee contracts amounted to $7.05 million between 1 January 2007 and the end of January 2010.16 The Division pointed out that the nature of the water sciences programme involves calling on the services of specialists.
33. On the basis of information provided by the Administrative Officer, the audit examined a sample of over 150 files pertaining to 22 consultants used by the Division in 2007-2009, and the first few weeks of 2010.17
4.1 LIMITED COMPETITION
4.1.1 Number of consultants
34. While contracts should be concluded following a competitive procedure involving several candidates,18 no systematic effort is made to look for candidates. The files often include no CV. Other files include a mixture of experienced and inexperienced consultants or even complete beginners. The same sets of CVs from competing candidates are presented each time,19 to justify the choice of consultants who become irreplaceable.20 This is particularly true of candidates who have retired from international organizations. Out of all the cases studied, 25% involved people aged over 60, (some of whom had been retired for several years). The Division highlighted the specific skills acquired by these people. It is, however, noted that this practice is not conducive to attaining the Organization’s goal of achieving a younger workforce.
35. The repeated use of the same CVs can be illustrated by the case of Ms A.21 Before being selected in September 2008, Ms A (who has over 40 years of experience) was competing against Mr B (who graduated in 2006) and Ms C (who graduated in September 2005). In September 2009, she was competing again against Mr B and also against Mr D (who graduated in 1999). A contract from January 2008 showed she had competed with Mr D and Ms E (who graduated in 2006). The CVs of Ms C, Ms E and Mr D were in the files of a Mr F for contracts in March 2008, and June and September 2009. Expanding the selection process to potential young consultants is beneficial, but must not be a token gesture to make it seem that the procedures are being followed.
36. Some CVs are used as an alibi for the choice made by the Division, whereas the consultants who were supposedly competing with others were already committed to working for the Organization by another contract for all or part of the period concerned. This was the case for the contract of Mr G, who was “competing with” Ms H (who already had a four-month contract for that period); or Mr I, who was competing with Mr J in December 2008, whereas the latter had already been hired by another United Nations agency after resigning from UNESCO. Similarly, two consecutive contracts for Mr I and Mr L involved the same competing CVs: Mr J and Mr N for the former and Mr O for the latter. The same reason for rejection was also given: unavailability of the candidate. In another case, in October 2007 Mr P was competing against Mr R, who was later appointed as a consultant on the same programme. In October 2008, Mr P’s contract was renewed without a selection procedure. In May 2009, Mr P was competing against Mr Q (who had a contract on the same programme) and against Ms M, a former consultant from the same programme whose CV dating from October 2007 had not been updated.
16 During the period, a new individual consultant contract was introduced (in July 2008). 17 Contracts signed with the same people for previous years were also examined. 18 Human Resources Manual, Chapter 13, Article 13.10, paragraph 7. 19 For example, in a file from September 2009 there was a CV dated 2005 (while UNESCO had concluded contracts with that person after 2005). 20 For instance, one consultant has worked for UNESCO almost continuously since October 2002. 21 Anonymity has been maintained in this case. 185 EX/32 Part II – page 9
37. The Division underlined the unique skills of several consultants. In particular, the Division stressed that United Nations agencies vie with each other to acquire the services of senior specialists with specific skills and experience gained over the course of their careers in international organizations. Competitive selection and extending the “pool” of consultants should nonetheless be the rule. A previous report on temporary contracts had already pointed out similar anomalies in various sectors, including Sciences.22
Recommendation No. 7: UNESCO should pay greater attention to competitive selection before concluding temporary contracts.
4.1.2 Geographical diversity of consultants
38. Nationals of five countries23 receive almost 50% of orders, but the geographical diversity of candidates is ensured overall (although the host country – France – has the advantage). The various managers calling on the services of consultants (Heads of Section, programme leaders) do not give preference to consultants from their country of origin. The breakdown of contracts concluded within one Section is, however, different: the Division stated that the consultants hired there are mainly recruited to implement an agreement concluded between UNESCO and the Ministry of the Environment of a Mediterranean country. According to the Division, it is normal for the countries concerned (and the donor in particular) to be overrepresented among the consultants. Nevertheless, this procedure does not follow the good practices advocated by UNESCO.
39. It should be noted that, in the category of fee contracts, there was no trace of even an informal call for bids in the file of company U, which was selected in January 2007 for a trust fund- financed project concerning a hydrological programme for sustainable development in Africa.24 A letter from a member of the hydrology team informed the Administrative Officer that the company was the one preferred by the donor country. That company was then awarded a contract worth $351,640, which on that occasion was concluded following a call for bids to which it submitted the only tender in September 2008, and which was submitted to the Contracts Committee.
Recommendation No. 8: Ensure improved geographical balance among those awarded consultant contracts.25
4.1.3 Potential lack of independence
40. A review of the files highlighted the risks of a lack of independence. The risk may relate to previous services provided to UNESCO by consultants who are called in repeatedly, their activities in another professional context that may lead them to have interests differing from those of the Organization, or the functions they fulfil in partner entities or bodies on which the Water Sciences Division is represented.
41. What must be avoided is a situation such as the one that arose in 2009, when the same person chaired a National Committee of the International Hydrological Programme that submitted a project funded by extrabudgetary resources, then sat on the project steering committee, then signed financial documents produced by a service provider and also acted as a consultant on the project. Equally delicate was the situation when a highly qualified individual held a position of
22 Report 182 EX/46, recommendation No. 1 (Cf. report 184 EX/INF.8, recommendation No. 62). 23 France, Italy, United States, United Kingdom and Canada. 24 Project 534 INT 2003. 25 Circular of 4 July 2008, report 181 EX/40.
185 EX/32 Part II – page 10 authority in a major partner association of UNESCO in the sphere of water and led a working group of the International Hydrological Programme, while at the same time personally assisting the Division by virtue of five individual consultant contracts and two fee contracts with the company that bears this person’s name between March 2007 and February 2010.
Recommendation No. 9: Ensure compliance with the rule that prevents an employee from having two contracts for the same period, whether or not the contracts are of the same type.26
4.2 CIRCUMVENTING THE RULES ON THE MAXIMUM LENGTH OF CONTRACTS
42. Some consultants have had their contracts renewed for several years, even though such contracts cannot be used to cover permanent requirements.27 In several cases, a waiver was used to override the maximum authorized duration of six months (supernumeraries) or 11 months (consultants).
43. Mr F was awarded 35 contracts either as supernumerary (28) or consultant (7) between 22 January 200128 and 31 March 2010, including 23 consecutive supernumerary contracts. He received a total of $321,992 for 2,101 days of work, which represents nine and a half years of 220 workdays. The Division highlighted the multidisciplinary training of Mr F, and stated that the Division had sought extrabudgetary funding.
44. Ms AA was awarded 14 contracts between 2 February 2004 and 15 April 2010. The time between contracts was a month or less in seven cases. She received €163,679 for 1,783 days, or over eight years of 220 workdays. Here again, the Division underlined the unique knowledge and experience of Ms AA, who it was said would continue to provide valuable services to UNESCO.
45. Ms AB was awarded 20 contracts between 1 February 2004 and 30 November 2009. In 15 cases, the time between contracts was a month at the most. She received €188,179 for 1,668 days, which amounts to seven and a half years of 220 workdays.
46. Ms AC was awarded 16 contracts between 1 October 2003 and 16 March 2010. In 12 cases, contracts were consecutive or separated by less than a week. She received €141,365 for 1,527 days, which is almost seven years of 220 workdays.
47. Mr AD has been awarded nine contracts since April 2004. He has received €73,324 for 1,192 days, which amounts to almost five and a half years. The Division stated that Mr AD chairs the commission of an international association, and has been making a productive contribution to the activities of the International Hydrological Programme (IHP) since the 1980s, owing to the particular nature of the partnership between this association and IHP.
48. Several of these consultants, whose training and experience were not “unique” from the outset, have acquired the experience that now makes them “irreplaceable” by working at UNESCO.
Recommendation No. 10: If these situations are in response to a genuine requirement, seek the appropriate contractual support from the Bureau of Human Resources Management (HRM).
26 Human Resources Manual, Article 13.5, section D, § 19 (b) [formerly point 2430.15 in the Manual]. 27 Manual, Articles 13.7, § 9 and 13.10, § 2 (d). 28 Mr F worked for UNESCO prior to 2001 in other Divisions. 185 EX/32 Part II – page 11
4.3 SERVICE PROVIDED
4.3.1 Value for money
49. The 22 consultants covered by the 150 files studied are highly paid. Half of the contracts were for salaries at P-5 or D-1 levels. In one case, funds available against a vacant post were used to recruit a consultant and pay the person at P-5 grade. Furthermore, the individual was given seven days a month of subsistence allowance.
Categories D-1 P-5 P-4 P-3/4 P-3 P-2 P-1 Total Number of people 6 5 1 6 2 1 1 22
50. The Human Resources Manual establishes remuneration ceilings for consultants, based on their experience.29 In several cases, consultants were classified above the level they were entitled to claim on the strength of their qualifications: grade P-3/P-4 for a webmaster whose experience consisted of fixed-term contracts between 1998 and 2001 and off-site freelance work for UNESCO; and grade P-3/P-4 for a consultant who only gained a Masters in Law in 2006 (which would correspond to a P-2 at best). The complexity of the work requested appeared to justify the higher classification in only one of the seven contracts concluded with the second consultant.
51. Certain tasks are extremely highly paid: $11,850 a month for six months for the coordination and re-reading of the third World Water Development Report (2009) under a contract concluded without any competitive selection process; €40,500 in six and a half months for the drafting of a case study for the same Report, also under a contract concluded without any competitive selection process. The Division explained for the first case that, as from the first contract, a waiver was requested for the salary level (approved by the Deputy Director-General (DDG)) and the contract duration (approved by the Assistant Director-General, Sector for Administration (ADG/ADM)), with a view to aligning the fees with those paid by other United Nations agencies and the World Bank, and in the light of the individual’s impressive experience and qualifications. The Division added that this consultant was assisting with the drafting of the fourth World Water Development Report (2012). A dispensation from the competitive selection process was also approved for the second consultant (ADG/SC).
52. Consultants travel with almost no restrictions, and in particular are not subject to the rule of 10% of the budget allocated to an action.30 This situation results in a preference for UNESCO to be represented by a consultant at some meetings. An analysis of 14 consultants’ files showed that travel costs represented 24.1% of total contract costs.31 The proportion was over 50% in three of the files. The high level of these costs is, in the case of some consultants, due to the nature of the tasks assigned to them, namely coordination within the World Water Assessment Programme (WWAP).
Recommendation No. 11: Approve waivers only for exceptional and duly substantiated reasons.
29 Annex 13F (formerly annex 24F), scale revised in 2008. 30 Ceiling of 10% of open credits in document 34 C/5, set in 2008-2009 for mission travel of permanent staff. 31 $0.32 million out of $1.33 million.
185 EX/32 Part II – page 12
4.3.2 Evaluation
53. Evaluation of services provided is far from systematic. Furthermore, when evaluation does take place, it takes the form of a box ticked on a progress sheet32 on a five-level scale from very unsatisfactory to excellent. There were no negative or even neutral evaluations in the sample studied.
54. The progress sheet, where the programme specialist states that the service specified in the contract has been provided, should be supplemented by a detailed free-form evaluation sheet. However, no such thing was found in the files. The Division stated that it follows the same procedures as all UNESCO departments. The Comptroller reminded the various Administrative Officers of the need for a specific appraisal.
55. Several of the consultant contracts examined related to activities that are at the heart of the Water Division’s activities, namely chairing a committee on behalf of the Organization, participating in the formulation of legal standards or making a statement for UNESCO at an international forum. It was not possible to determine the reasons why these tasks were not assigned to staff members of the Organization.33
Recommendation No. 12: Carry out a specific evaluation of the quality of service provided and keep a record of this in the consultant’s file.
5. ACTIONS CARRIED OUT BY THE WATER SCIENCES DIVISION
5.1 INTERNATIONAL LEADING ROLE IN THE FIELD OF FRESHWATER
56. Under the terms of the 2008-2009 Programme (and budget), “UNESCO will assert its international leading role in the field of freshwater, bringing innovative responses to water access, management and governance challenges, thus contributing to poverty eradication”.34 According to an evaluation carried out in 2009 into Strategic Programme Objective 3, “A number of success stories demonstrate the unique leadership of UNESCO in regard to freshwater and marine resource management”.35 Document 35 C/5 underlines “UNESCO’s role in scientific research in freshwater, capacity-building and education through IHP, UNESCO-IHE, the World Water Assessment Programme (WWAP) and the World Water Development Report”.36
5.1.1 Programmes
57. The Division’s main programme is the International Hydrological Programme. The Sixth Phase of the IHP (2002-2007) was structured around the theme “Water Interactions: Systems at Risk and Social Challenges”. The Seventh Phase (IHP-VII) covers the period 2008-2013. For hydrological research, the IHP is supported by two cross-cutting programmes, HELP and FRIEND.37 For water resources management, the IHP is supported by the following initiatives: PC-
32 Form 431. 33 See 171 EX/6 Part 1 (Reform process – Staff policy), § 30 and 171 EX/Decision 5. See also Human Resources Manual, Article 13.10, § 2 (e). 34 Document 34 C/5, paragraph 02018. 35 IOS, above-mentioned report of July 2009 (Executive summary, § 1). 36 Document 35 C/5, paragraph 02021. 37 Hydrology for the Environment, Life and Policy – Flow Regimes from International Experimental and Network Data sets. 185 EX/32 Part II – page 13
CP, ISI, IFI and G-WADI.38 Since 1975, UNESCO has also been cooperating with the World Meteorological Organization (WMO).
58. The G-WADI network has a budget of around $180,000, which it shares with ISI. In contrast, the cross-cutting programmes HELP and FRIEND receive little in the way of member contributions, apart from direct project managers. The main input in terms of knowledge comes from universities. A German university provides the technical maintenance for one of these cooperation networks.
59. The WWAP programme covers 24 funds, programmes, agencies, commissions and other United Nations entities. UNESCO is the lead agency for the sharing of water resources and the development of a knowledge base, a partner agency for risk management and ecosystem protection, and also hosts the secretariat of the programme (based in Perugia), which constitutes the fourth Section of the Water Sciences Division. The World Water Development Report39 is the most well-known WWAP output. The Secretariat stated that, during the 2008-2009 financial year, UNESCO had to advance expenditure (particularly staff spending) that should be covered by a trust fund ($3.71 million).40
60. The Division’s programmes are intertwined within the Sector and the Division itself. In-depth management, particularly in terms of finance, is made difficult by the lack of cost accounting, which would enable each action (involving regular or extrabudgetary funds) to be monitored in detail.
61. Moreover, it has been noted that projects relating to the various initiatives are not always distributed on the basis of the workload of the Division’s collaborators. Although the Division’s staff are highly qualified and multi-skilled, some people are assigned an action simply because it has not been assigned to someone else, or because that person’s predecessor used to be responsible for it. Other professionals are involved in many actions because they are the contact points for certain donors, such as GEF.41
Recommendation No. 13: Improve coordination among the Division’s programmes and ensure a more coherent distribution of budgetary resources.
5.1.2 Institutes and Centres
62. The Institute for Water Education (IHE)42 in Delft was set up in 2003 as a category 1 institute. The Government of the Netherlands undertook to cover its operating costs, which makes it the only category 1 institute to be completely financed by extrabudgetary resources (€27.1 million in 2008). In November 2007, the General Conference authorized the Director-General to renew the operational agreement with the Netherlands Government for another five years (2008-2012) “provided that no cost or financial risk is incurred by the Organization”.43
63. Drawing in particular on SISTER (with which IHE has little involvement), the audit confirmed the 2009 finding contained in a strategic document of the Institute itself that “Relations with UNESCO have, however, evolved at a relatively slow pace ever since the Institute became part of
38 From Potential Conflicts to Cooperation Potential – International Sediment Initiative – International Flood Initiative (see below) – Global Network on Water and Development Information for Arid lands. 39 Water in a Changing World (2009). 40 See IHP/IC-XIX/Inf. 17. 41 Global Environment Facility. 42 Acronym from the previous name: Infrastructural, Hydraulic and Environmental Engineering Foundation (IHE Delft Foundation). 43 34 C/Resolution 23 and report 34 C/47.
185 EX/32 Part II – page 14 it. There still is a great deal of room for improvement in collaboration and joint work with IHP and WWAP for the benefit of Member States”. 44
64. One characteristic of the field of water sciences is that there are 13 category 2 institutes or centres.45 One of the most active is ICHARM,46 which serves as the secretariat for the International Flood Initiative (IFI). Other centres also have a steady level of activity.47 In contrast, searches on the UNESCO portal and the websites of the institutions concerned show no recent publications or activities in the case of seven centres.
Recommendation No. 14: Strengthen cooperation with IHE and institutes with a lower level of activity, in order to “ensure effective relations between the centres and other members of ‘UNESCO’s water family’”.48
5.2 PREPAREDNESS FOR WATER-RELATED DISASTERS
65. The 2008-2009 Programme gave priority to promoting research and capacity-building for the “sound management of natural resources and for disaster preparedness and mitigation” (biennial sectoral priority 1). The General Conference described using science and education in the interests of “disaster preparedness and mitigation”.49
66. This priority was not reflected in the budget managed by the Water Division: action 11 “hydro-hazards, hydrological extremes and water-related disasters” from Focal Area 3 only accounted for 10.6% of the Division’s allocation under the regular budget (not including established items) for Focal Areas 1 and 3: $387,60050 out of $3.67 million for central services. A cut in the Division’s budget in January 2008 then reduced the proportion to 8.1% ($274,458 out of $3.37 million).
67. In the 2010-2011 programme, regular funds allocated to the Water Sciences Division for “hydro-hazards, hydrological extremes and water-related disasters” ($224,500) are 42.1% lower than the allocation for the 2008-2009 biennium and represent only 7.7% of the Division’s budget ($2.9M), which itself is down 21% in terms of central services.
68. The low level of allocations in the regular budget is not offset by extrabudgetary funding. The Section concerned has no extrabudgetary funding for its projects. This situation does not seem to stem from a lack of donor interest in water-related disasters, as it is included on the list of projects of the Division of Basic and Engineering Sciences51 and field offices registered in SISTER.
44 Proposal for new strategic directions and comprehensive reforms of the Institute, UIHE-VII/9, 20 November 2009, paragraph 7. 45 The 35th session of the General Conference approved the creation of two additional centres. 46 International Centre for Water Hazard and Risk Management, 33 C/Resolution 28 and 171 EX/Decision 12. 47 IHP-HELP Centre for Water Law, Policy and Science in Dundee; International Centre on Qanats and Historic Hydraulic Structures (ICQHS) in Yazd (Iran); International Research and Training Centre on Erosion and Sedimentation (IRTCES) in Beijing; Regional Centre on Urban Water Management (RCUWM) in Tehran. 48 Strategy for UNESCO’s category 1 and category 2 water-related centres adopted by the International Hydrological Programme, 177 EX/INF.9 (IHP/Bur-XL/8 rev. § 6). 49 Document 34 C/5, paragraph 02017. 50 $240,000 for the International Flood Initiative (IFI), $87,600 for Groundwater for Emergency Situations (GWES) and $60,000 for a pilot project to monitor drought in Africa that was stopped in 2008 owing to a lack of funding. 51 Responsibility and funds for actions related to water-related disasters have been shared since 2010. 185 EX/32 Part II – page 15
Recommendation No. 15: Strengthen the coordination of requests for extrabudgetary funding within the Water Sciences Division, to ensure that certain parts of its activity are not left unfunded.
5.3 UNESCO CHAIRS IN THE FIELD OF WATER SCIENCES
69. There are 16 UNESCO Chairs in the field of water sciences.52 One of these is not mentioned on the UNESCO website.53
70. The strategic thrusts of the UNITWIN programme and the UNESCO Chairs were redefined in April 2007.54 They were clarified for the Natural Sciences Sector by means of a strategy document in July 2009. On the website of the Sector within the UNESCO portal, there is no activity report on the pages of three Chairs (set up in 1999, 2001 and 2003). On the pages of the three other Chairs (set up in 1994, 1998 and 1999), the reports presented are from 1999 or 2000. The most recent report for any of the Chairs relates to 2007.
71. This factual finding probably points simply to negligent management of the websites of the Chairs, as closer scrutiny of certain Chairs revealed that they do duly carry out the dual function of think tanks and “bridge builders” assigned to them in the strategic guidelines of 2007. 55 It is nonetheless essential for the Division of Water Sciences to attach more importance to the timely dissemination of activity reports for potential users.
Recommendation No. 16: For the UNESCO Chairs in the field of water sciences, implement the strategic guidelines adopted by the Executive Board in 2007, particularly in terms of promoting “a systematic regrouping of Chairs into dynamic networks” and providing “concrete evidence of sustainability”.56
5.4 PUBLICATIONS
72. Mainly following the remarks and recommendations of the External Auditor, 57 in 2008 UNESCO established new rules for publications.58 However, the Natural Sciences Sector has not fully implemented them. At the time of the audit, the function of focal point was carried out by a member of the Executive Office with temporary status. A P-4 Communication Officer was appointed in May 2010. The Sector is yet to set up an editorial board.
Recommendation No. 17: Set up an editorial board for the Science Sector.
73. The publications guidelines are also not properly applied for the drafting of authors’ contracts. There were problems with the publication Les eaux souterraines dans le monde Groundwater resources of the world] published in 2008 by an external publisher with no joint publishing contract. The Bureau of Public Information (BPI) is not involved in the negotiation of
52 Out of 658 UNESCO Chairs (including 189 in the Natural Sciences Sector). 53 “Water, Women and Decision-making” Chair set up at the University of Ifrane (Morocco) in 2006. 54 176 EX/10 and 176 EX/Decision 10. 55 For example, the Chair in Geohydrology at the University of the Western Cape, or the Chair on the Sustainable Management of Water and Conflict Resolution at the Aristotle University of Thessaloniki. 56 176 EX/Decision 10, paragraph 4, and 176 EX/10, paragraph 11. 57 179 EX/31 Part I. 58 Resolution 179 EX/Decision 31; Notes by the Director-General of 25 June 2008 (DG/Note/08/22) and 28 November 2008 (DG/Note/08/44).
185 EX/32 Part II – page 16 contracts with the publisher of the International Hydrology Series created pursuant to a 1992 resolution of the IHP Intergovernmental Council. The 1997 contract relating to a work from this collection published in 2009 includes an article in which the Head of the Water Division gives the publisher the exclusive right to print, publish, market and sell the work all over the world. Such a provision is now not allowed for UNESCO publications.59 The Division pointed out that the IHP Publications Committee has undertaken to bring its contract clauses into line with the UNESCO Guidelines. As for exceeding the 10-year maximum deadline for delivery of the manuscript, the Division stressed the importance of the subject, the public interest and the prestige of the authors.60
74. BPI had not been consulted on author contracts for the first two reports of the World Water Assessment Programme (WWAP) published in 2003 and 2006, but was consulted for the third report in 2009. Similarly, the project for a collection on the history of water and civilizations, which was launched without BPI, is now being pursued with its cooperation and author contracts will be drawn up.
75. The publication guidelines recommend peer review for works targeted at specialist readers, statistical reports, normative works, manuals and educational materials. There should be at least two peers for UNESCO’s scientific publications. In the file consulted for the Urban Water Series (three publications), only one review by one peer was found.61
Recommendation No. 18: Comply with the UNESCO guidelines on publications for all publications for which the Division of Water Sciences is responsible.
76. The evaluation report of the Fifth Phase of the IHP (1996-2001) showed that many publications only appeared two or three years after the end of the Phase. The same delay has been observed for IHP-VI. In June 2008, the publisher of the Urban Water Series described the disadvantages of such delays: authors cannot publish their results in time; publishers are not in a position to publish works containing fresh information and do not keep to the deadlines announced to the market.62 The texts in question were not published until 2009. The publication of three other works was expected for spring 2010.
77. The audit team was able to collect few figures about the Division’s publications and their dissemination. In 2009, 29 works and brochures were published or put online under the IHP. The list presented specified the number of copies for only seven of these (four works sold and three works distributed free of charge).
78. In contrast, for works published by UNESCO, the Bureau of Public Information (BPI) has a list of sales of works from the Sector, of which 5% of the proceeds is returned to the Sector.63 In 2008, sales of publications on water sciences exceeded 100 copies for one publication only,64 and exceeded 50 copies for two other publications, whereas for three titles fewer than five copies were sold. One explanation may be that the publications are sometimes not very reader-friendly, even for well-informed readers. The establishment of an editorial board would be useful also in this area. Another explanation is the delay with which the texts are delivered to the publisher. Better sales figures were expected for 2009.
59 UNESCO Publications Guidelines, paragraph 1.4. 60 Managing and Transforming Water Conflicts, Cambridge University Press, March 2009. At the time of the audit, this publication was not in the UNESCO library. 61 Integrated Urban Water Management in Humid Tropics. 62 Urban Water Series, e-mail dated 19 June 2008. 63 Sales in 2008: return of $4,157 to the Sector (Administrative Manual, Annex 13.5 B). 64 Water and peace for the people: possible solutions to water disputes in the Middle East, 164 copies. 185 EX/32 Part II – page 17
79. The Internal Oversight Service recommended an evaluation of the impact of publications, communications and information actions of the two science sectors.65 On this subject, the Division referred to the press reviews carried out by the WWAP secretariat.
80. The Division ensures that its web pages are frequently updated. It mainly employs the user analysis tool provided by Google. A help forum has been set up externally to UNESCO on a social- networking platform,66 and visitors to the UNESCO portal are invited to connect to it. As UNESCO does not yet have an official community web tool, the experimental introduction of such sites is tolerated. However, the Bureau of Public Information (BPI) and the Division of Information Systems and Telecommunications (DIT) must be informed in advance so that they can check the genuineness of the project and ensure that members of the Secretariat are familiar with the content of the site and how to use it. That was not the case in this particular instance. UNESCO does have a proprietary user analysis tool for its web pages,67 which can be used by the Organization’s webmasters. The Division stated that it is studying with BPI and DIT the possibility of transferring the help forum to a UNESCO site.
Recommendation No. 19: Better inform the webmasters of programme sectors about the possibilities offered by the Organization’s proprietary user analysis software.
Director-General’s comments:
The Director-General acknowledges with thanks the External Auditor’s report on the Division of Water Sciences and notes its usefulness for the new Assistant Director-General for the Natural Sciences who took up her functions on 1 July 2010. The Director-General accepts the recommendations made in the report and will report on their implementation.
65 IOS, above-mentioned report from 2009. 66 http://helpforum.ning.com. 67 E-Stats software.
Executive Board 185 EX/32 Hundred and eighty-fifth session Part III
PARIS, 16 September 2010 Original: French
Item 32 of the provisional agenda
EXTERNAL AUDITOR’s NEW AUDITS
PART III
AUDIT REPORT ON THE REGIONAL BUREAU FOR EDUCATION IN DAKAR
Summary
In accordance with Article 12.4 of the Financial Regulations, the External Auditor submits his audit report on the Regional Bureau for Education in Dakar. 185 EX/32 Part III
Office of the External Auditor of the United Nations Educational, Scientific and Cultural Organization
AUDIT OF UNESCO’s REGIONAL BUREAU FOR EDUCATION IN AFRICA (DAKAR) 185 EX/32 Part III – page 3
SUMMARY
UNESCO’S Regional Bureau for Education in Africa (BREDA) at Dakar is required to implement several of the Organization’s priorities but, owing to the number of vacant education specialist posts, the coherence of the activities carried out is somewhat impaired. Furthermore, its position in regard to other United Nations agencies is unclear.
BREDA’s strong points include expert inputs from the Pôle de Dakar and representatives of the UNESCO Institute for Statistics (UIS), its UNESCO Africa Intranet site – hub of a network of education specialists – and its partners’ great expectations, which essentially results in greater inflows of extrabudgetary funding.
BREDA should :
– adopt a medium-term strategy that will enhance its visibility;
– guarantee budgetary control by adopting a computer installation plan, by complying with the rules on the use and employment of consultants and by being more rigorous in holding workshops and participating in conferences;
– improve the management and monitoring of files, which have been poorly kept and were thus an objective constraint on the audit and, in any event, on activity and project monitoring.
Headquarters should assign to BREDA the human resources required for its tasks relating to the conduct and evaluation of activities and to office management. It should also support the Bureau in the arbitration proceedings on the building that it occupies and in adopting a maintenance plan as part of its budget.
185 EX/32 Part III – page 5
TABLE OF CONTENTS
Page I. INTRODUCTION...... 7 1. Overview of the Bureau...... 7 2. Audit of the Bureau...... 7 II. FUNDING AND ORGANIZATION OF THE BUREAU...... 7 A. Resources and employment ...... 7 1. Regular Programme Resources...... 7 2. Extrabudgetary resources ...... 8 3. Operating costs ...... 8 4. Mission costs...... 8 B. Management of the BREDA building...... 9 C. BREDA equipment and management of the vehicle fleet ...... 10 1. Equipment ...... 10 2. The vehicle fleet and its use...... 10 D. Organization of the Bureau ...... 11 III. STAFF...... 11 B. Management under pressure ...... 12 1. Staff cuts ...... 12 2. Post vacancies ...... 12 3. Staff costs charged to extrabudgetary funds...... 12 B. Consultants...... 13 1. Individual consultants: procedures...... 13 2. Individual consultants: audit-sample findings...... 13 3. Fee contracts...... 14 IV. PROJECTS IMPLEMENTED BY THE BUREAU ...... 14 A. Budget breakdown by Sector...... 14 1. Regular programme ...... 14 2. Extrabudgetary funds ...... 15 B. Education...... 15 1. The challenges of education in Africa and BREDA’s position...... 15 2. The distinctive nature of the Pôle de Dakar ...... 16 3. BREDA’s activities...... 17 4. Challenges facing the Regional Bureau for Education: decentralization and regionalization ...... 18 C. EDUCAIDS projects...... 20 1. BREDA’s regional outreach...... 20 2. Examination of the projects...... 21 185 EX/32 Part III – page 6
Page D. The other BREDA sections...... 21 1. Natural sciences...... 21 2. Culture...... 22 3. Communication and information...... 22 V. CROSS-CUTTING OBSERVATIONS ON ACTIVITIES ...... 24 A. Visibility of the regional bureau and the cluster office...... 24 B. BREDA’s external relations...... 25 1. With other agencies...... 25 2. With donors...... 25 3. With National Commissions for UNESCO...... 25 4. With UNESCO Chairs ...... 26 185 EX/32 Part III – page 7
I. INTRODUCTION
1. Overview of the Bureau
1. The Regional Bureau for Education in Africa (BREDA) opened in 1970. Its initial goal was confined to educational planning in sub-Saharan Africa. It gradually grew to encompass UNESCO’s other sectors of activity.
2. The Bureau has been responsible for the decentralized coordination of the education sector in sub-Saharan Africa (46 countries) since the beginning of the decade. It is also a cluster office for Senegal, Gambia, Guinea-Bissau and Cape Verde. Senegal, owing to its size, predominates; Guinea-Bissau is in a post-conflict situation.
3. In the field of education, the Bureau acts in concert with the UNESCO International Institute for Capacity-Building in Africa (IICBA) in Addis Ababa and the UNESCO Institute for Statistics (UIS) in Montreal. Both institutions have units at BREDA. The Bureau also comprises the Pôle de Dakar body financed from extrabudgetary funds.
2. Audit of the Bureau
4. The Bureau has been covered by several reports that the auditors have read.1 The auditors met the Director of the Bureau, the heads of the education, culture, communication and sciences sectors and the Pôle de Dakar, the regional coordinator for education and the heads of the IICBA and the UIS units.
5. Outside the Bureau, they met the Secretary-General of the Senegalese National Commission for UNESCO and visited Saint-Louis in Senegal, a city on the World Heritage List and home to a museum that has been supported by BREDA.
6. The auditors were gratified by the cooperativeness of the Bureau’s staff and discussed their provisional observations with the Bureau.
II. FUNDING AND ORGANIZATION OF THE BUREAU
A. RESOURCES AND EMPLOYMENT
1. Regular Programme Resources
7. BREDA’s regular budget resources plummeted (by 21.8%) during the 34th biennium ($5,522,412 in 2006-2007, $4,319,687 in 2008-2009); they rose by 6.3% in the current biennium ($4,593,329 in 2010-2011). The overall drop was 6.8% from 2006 to 2011.
8. The number of activities carried out per biennium fell sharply, in accordance with instructions on the critical budget size: 91 activities amounting to $53,211 on average in 2006-2007, 45 amounting to an average of $82,000 (+54%) in 2008-2009 and 45 amounting to an average of $80,000 in the current biennium.
9. In addition to those allocations, staff costs under the 2010-2011 regular programme amounts to $8.13 million, broken down as $4.58 million for Education, $0.29 million for Natural Sciences, $0.35 million for Social and Human Sciences (SHS), $0.29 million for Culture (CLT) and
1 End-of-tour report by the acting director of BREDA (July 2008); summary of an assistance mission (ADM/BOC, September 2007); audit (November 2008) and evaluation of BREDA (June 2009) carried out by the Internal Oversight Service (IOS). 185 EX/32 Part III – page 8
$0.29 million for Communication and Information (CI), in addition to $2.32 million for the Bureau of Field Coordination (BFC).
2. Extrabudgetary resources
10. The volume of resources allocated for current projects, relatively stable from 2007 ($10.7 million, 43 current projects) to 2009 ($12.1 million), increased by 59% in 2010 ($19.2 million). Extrabudgetary resources available at the beginning of the year rose from $3.94 million in 2007 (43 projects initiated) to $8.77 million in 2008 (38 projects), $8.76 million in 2009 (28 projects) and $11.56 million in 2010 (34 projects).
11. In all, the extrabudgetary resources available at the beginning of the year were four times greater than regular programme appropriations in 2008 and 2009 and five times greater in 2010.
3. Operating costs
12. The budget earmarked for operating costs under the regular programme rose generally by 6% (in current dollars) between the 33rd biennium ($0.61 million) and the 35th biennium ($0.64 million).
13. Other operating costs were financed from extrabudgetary funds and included the purchase of office equipment, computer hardware and vehicles that remained BREDA’s property at the end of projects (four out of six cars are being used), mission expenses generally charged to extrabudgetary funding and the costs of training for local staff.
4. Mission costs
14. The missions budget stood at $1.78 million in 2006.2 Mission costs charged to programmes fell by 67% between 2006 and 2009 ($0.59 million); average mission cost fell by 71.6% (from $5,796 to $1,644), while the average duration of missions remained stable (6 days). Supported mainly by programme specialists and the UIS, BREDA has obviously endeavoured to implement recommendations made in the 2007 mission report.
15. The provisions of the Administrative Manual were not, however, systematically observed in regard to the time-limits for the submission of Official Travel Order requests, verification of leave records, submission of mission reports within deadlines and limits on the number of representatives travelling to attend the same conference.
16. In particular, the videoconferencing hardware has not been used at all since its installation in August 2008, owing to ongoing negotiations over the subscription. It could be used, for example, to hold consultant or staff selection committees. In reviewing Official Travel Order requests, the feasibility of recourse to this solution must be ascertained.
17. The organization of regional conferences entailed direct costs and mobilized human resources for full-time equivalent work, which would warrant control over BREDA’s participation. The Regional Conference on Literacy and the Regional Education for All Forum, held in Bamako from 10 to 15 September 2007, cost nearly $340,000 and mobilized 469 person/days, including 188 person/days for UNESCO units in Africa.
Recommendation No. 1. Improve compliance with the rules on missions and make greater use of videoconferencing.
2 Travel and daily subsistence allowance included. Source: BOC 2007 mission. 185 EX/32 Part III – page 9
B. MANAGEMENT OF THE BREDA BUILDING
18. Since its establishment, BREDA has been housed in a nine-storey building close to Independence Square in central Dakar and provided free-of-charge to UNESCO.3 There being no specific office occupancy agreement, maintenance of the building has always been considered to be UNESCO’s responsibility in the light of the very favourable conditions granted by the Government of Senegal. However, for 40 years there has never been a building maintenance plan and the maintenance budget allocated by UNESCO has always been paltry. The provision in the operating budget for the 2008-2009 biennium amounted to $100,000, but annual cleaning costs alone totalled $30,000.
19. Headquarters must take stock of the Organization’s responsibilities for the building’s maintenance and it must initiate discussions as a matter of urgency, in concert with the Senegalese Government, in order to draw up a plan to renovate the building.
Recommendation No. 2. Sign an agreement with the Government of Senegal specifying conditions for using the building provided to the Organization under the Headquarters agreement; draw up, as a matter of urgency, a renovation and maintenance plan and provide for building maintenance to be integrated into the budget.
20. Since 1998, BREDA has been housing staff from the International Labour Organization (ILO) in three offices (80m2). UNESCO should have requested an occupancy permit from the Government of Senegal, the owner of the premises, but did not do so.
21. An exchange of letters provided for a monthly contribution to electricity and maintenance costs of the lifts and premises.4 However, UNESCO has set a flat rate ($6,000 per year) without reference to a breakdown of actual service charges.
Recommendation No. 3. Place the allocation of offices to the ILO on a legal footing with the Government of Senegal; conclude an agreement with the ILO office on its contributions to UNESCO’s operating costs.
22. There is, moreover, a security problem. In April 2004, the first security report highlighted the various risks to the building owing to its location on a busy street in the city centre and its unprotected surroundings. The report called for much work to be carried out to improve passive and active security (17 recommendations). In the second report in April 2008, the Regional Security Adviser noted that the measures described as urgent and mandatory four years earlier had not been implemented. He made 27 recommendations. The work has been performed more speedily since 2009.
23. Until the current biennium, security expenditure fell to Headquarters (BFC). The “security” budget has now been decentralized. A budget line of $220,563 has been included in BREDA’s 2010 operating budget. Security improvement works, amounting to $151,000, financed from BFC funds (2009) and funds allocated to BREDA (2010), are under way. Many items of work are still necessary.
24. A considerable amount of the security budget was expended on two security contracts ($88,240 per year): the first for the guarding of the BREDA premises by a United Nations-
3 Headquarters agreement dated 23 December 1969 (amended on 17 July 1980), Article 2.1. 4 Letters dated 22 December 1997 and 29 January 1998.
185 EX/32 Part III – page 10 authorized company; the second, with a different company, 5 for the protection of the private residences of seven staff members. The second contract, which accounted for 80% of the expenditure, is compliant with the instructions issued by the United Nations Department of Safety and Security, 6 which were stricter than the security provisions enforced by the diplomatic community in Dakar.
C. BREDA EQUIPMENT AND MANAGEMENT OF THE VEHICLE FLEET
1. Equipment
25. The Bureau’s annual physical inventory distinguished between its own assets and assets acquired in connection with projects. However, the 2009 inventory only listed assets acquired in 2009 although Headquarters had requested an exhaustive physical inventory of all assets used as at 31 December 2009.7 The inventory was not countersigned.
26. The Bureau’s IT manager has not been systematically informed of new purchases. Some hardware items were therefore not listed in the inventory or as computer hardware. The Administrative Officer (AO) and the inventory manager must have the same understanding of the notion of control.
27. The use of such a large number of dissimilar computers is not consistent with the requirements of sustainable development. Some staff members had two computers. Nearly all of them had a printer – 65 printers were inventoried.
Recommendation No. 4. Install the printers on the network.
2. The vehicle fleet and its use
28. BREDA had six vehicles for official use by the Director and staff. A passenger vehicle, a van and a 4x4 were purchased under the regular budget. The other three vehicles (4x4) were purchased under extrabudgetary projects in 1999, 2005 and 2009.8 The seventh vehicle was at the Ministry of Culture.9
29. The high cost of operating the vehicle fleet was met largely from extrabudgetary funds. Accordingly, two batches of petrol invoices for the fourth quarter of 2009 and the first quarter of 2010 (for 900 litres each) were charged to project 225-SEN-4000 (Spanish Cooperation Department), but some of the invoices were not for the vehicle funded under the project.
30. On examining the logbooks of the 4x4, one vehicle was found to have a low mileage each month. Two of the 4x4s were used almost exclusively for urban travel in or around Dakar, making frequent runs between the homes of some staff members and the office. This is not the official use for which they should be reserved.10 All in all, BREDA’s vehicle fleet seems to be too large and unsuitable for its real needs.
5 Contract signed on the same date (1 August 2008) and bearing the same contract number (030/SC/FD/11-05). 6 Minimum operating residential security measures (MORSS) – Senegal (Updated on 26 March 2010). 7 Memo BOC 7/80 dated 16 October 2009. 8 Projects 510 SEN 55, 501 5000 and 225 SEN 4000. 9 4x4 ($37,814) bought in December 2009 (project 225 SEN 4000). 10 Memorandum BFC/DIR/010/056 of 10 June 2010. 185 EX/32 Part III – page 11
Recommendation No. 5. Apply strictly the rules on the use of the Bureau’s vehicles for professional purposes only.
D. ORGANIZATION OF THE BUREAU
31. Five internal coordination meetings have been convened since November 2008 by the Director of BREDA. At the annual retreat, comments prepared by working groups were followed up specifically. However, meetings of programme specialists and section chiefs should be held in order to promote information sharing and build synergy.
32. Owing to the weighty duties and responsibilities incumbent upon the Director in view of the Bureau’s regional outreach, she is often obliged to travel outside Senegal. In 2009, she was absent for 99 days on mission abroad. Yet, several senior posts were vacant for a long time. In 2007 and 2008, the Bureau had a Director and an Administrative Officer in an acting capacity for a long time.
Recommendation No. 6. Establish a Deputy Director post.
33. Since its establishment, the Bureau’s translation and interpretation unit has been attached directly to the Director. The question of whether it should be maintained has already been raised.11 There being no statistics on the number of jobs done or data on the unit’s involvement in the processing of translation and interpretation contracts, there is nothing to justify its continued existence. It would be judicious to anticipate the forthcoming separation of the current chief by compiling a roster of interpreters and translators that could be shared with the other United Nations agencies.
III. STAFF
34. The staff complement of BREDA’s organizational chart in June 2010 was 79. The education section employed nearly 40% of the staff (31 people) and administration more than 25% (21 people). Some of the staff were consultants assigned to permanent posts because many of those posts were vacant.
BREDA staffing trends, by budget category
2007 2008 2009 201012 Regular Programme 45 50 43 37 Professional staff 15 16 16 13 Local staff 21 24 21 22 Temporary staff13 9 10 6 2 Extrabudgetary funding (EXB) 36 39 45 31 Professional staff 8 12 13 10 Local staff 0 0 1 1 Temporary staff 28 27 31 20 TOTAL 81 89 88 68 EXB/total excl. temporaries 18% 23% 27% 24% EXB/total 44% 44% 51% 46% Source: Office of the External Auditor: BREDA data compilation
11 Report of a mission organized by Headquarters in September 2007. 12 As at 1 May 2010. 13 Special service agreements (SSA) and service contracts (SC).
185 EX/32 Part III – page 12
B. MANAGEMENT UNDER PRESSURE
1. Staff cuts
35. The number of serving staff at BREDA has fallen constantly from an average of 98 in 2007 to 94 in 2008, 88 in 2009 and 68 in 2010. There has been a 30.6% drop in the number of holders of special service agreements (SSA) and service contracts (from 56 in 2007 to 22 in 2010), while the number of specialists has remained stable (23) and that of holders of local contracts has risen (from 19 to 23).
36. The personnel files provided to the auditors did not always contain the post descriptions or terms of reference.14 However, staff performance had not been monitored effectively because of the number of vacant senior posts and staff away on mission. As a result, in one case, the performance report required in the Manual15 for the renewal of contracts had been drawn up by the staff member concerned.
2. Post vacancies
37. The Bureau did not have a full complement of supervisory staff. At the date of the audit, several key posts were vacant in the education sector,16 in other sectors17 and in administration (L4).
38. Such vacancies were neither temporary nor exceptional. Posts at the Bureau had been vacant for long periods: an acting Director for 10 months (September 2007–July 2008); a P-4 post in strategic planning was filled in April 2010, after being vacant for five years; five posts that had been vacant for 9 to 30 months as at June 2010.
39. The Organization’s education network in the region had been weakened further by vacant programme specialist posts in other offices in Africa – P-4 post in Harare (vacant since July 2009), P-3 post in Kinshasa (vacant for 14 months), P-5 post in Nairobi (vacant for 10 months), P-4 post in Windhoek (vacant since October 2009), and P-4 post in Accra (vacant for 16 months).
40. Those difficulties were due mainly to delays observed in the recruitment procedure which lengthened the process. Delays of more than one year, sometimes two, have been recorded.18 The Bureau’s social and human sciences section, which had the second highest budget after education, had consequently been without a head since 2007; its files were being handled by the head of another sector (culture) and a consultant.
3. Staff costs charged to extrabudgetary funds
41. Some permanent posts still relied on special service agreements (SSA) (e.g. office driver). One driver, employed by BREDA for several years, was on a service contract charged to an Education for a culture of peace project that supported activities in six countries outside Senegal and did not require a driver in Dakar.
14 23 cases recorded. 15 Chapter 13, paragraph 26. 16 Basic education (P-5 and NOC national officer), Higher education (P-5), TTISSA (P-5), Technical and Vocational Education and Training (P-4). 17 SHS (P-4), CI (P-3 and NOC). 18 Posts TTISSA 0037 (17 months to date); Basic education 041 (29 months to date); Higher education 0035 (18 months to date). 185 EX/32 Part III – page 13
42. The number of appointments of limited duration (ALD) has risen to 12 in 2010 (from seven in 2009). Contrary to Manual provisions, staff members so recruited were not all required to cover medium-term operational needs.19
43. With the exception of staff at the Pôle de Dakar (see below), nearly a quarter of BREDA’s permanent staff was funded under extrabudgetary projects. Such staff manage extrabudgetary projects and performed other Bureau duties to an unspecifiable extent.
B. CONSULTANTS
1. Individual consultants: procedures
44. The number and volume of contracts rose in 2009, both under the regular programme (50 contracts amounting to $550,616) 20 and extrabudgetary funds (57 contracts amounting to €703,189).21 In 2009, Headquarters authorized the Bureau to use savings against vacant posts to finance the hiring of consultants in amounts not exceeding $100,000.
45. The Bureau did not submit reports on the use of consultants, even though the Bureau of Human Resources Management (HRM) was required to report on the number, cost and duration of contracts. Furthermore, data entered in FABS did not give an exhaustive view of the real costs because of lump sum payments that were subsequently modified by amendments in FABS.
46. Some contracts did not comply with formal requirements in that they had not been signed by the beneficiary,22 the evaluation forms had not been filled in,23 or the consultant had signed after the deadline set initially. 24 There were, however, examples of “good practice” that could be disseminated to all sectors. The involvement of the programme manager is essential.
47. The Bureau did not have an online database containing the curriculum vitae of consultants, as recommended in the Manual. The number of entities operating in the field of education and likely to be required to work with consultants should, however, warrent the establishment of such a database.
Recommendation No.7. Establish a database on the Intranet which would widen the pool of consultants and identify those whose performance is unsatisfactory; open the database to other United Nations agencies.
2. Individual consultants: audit-sample findings
48. The audit focused on a selected sample of 25 individual consultants hired between 2007 and the first few months of 2010. The findings below are consistent with those contained in the audit report on the Division of Water Sciences.
49. Owing to the shortage of staff in strategic posts such as higher education or TTISSA,25 the Bureau recruited consultants for long periods. They were thus regarded as supervisory staff in the Bureau even though they exercised no authority. In the report on temporary contracts, the External
19 Human Resources Manual, Chapter 13, Item 13.4. 20 In 2008, 23 contracts amounting to $248,991. 21 20 contracts in 2008 ($196,899). 22 Three cases found; see Human Resources Manual, Chapter 13, Item 13.10, paragraph 22. 23 Form 431A (example: contract 802034.8/3240187171). 24 Four cases found; in one case there were two versions of a contract with two different dates. 25 Teacher Training Initiative for Sub-Saharan Africa (see below).
185 EX/32 Part III – page 14
Auditor had already recommended that the Organization identify the tasks and duties that it would perform itself in order to maintain control over the execution of its mandate.26
50. Long-term use of contractual staff breached the maximum 11-month rule.27 Mr A, recruited in February 2008, had his contract renewed continuously until 31 December 2009, with an average monthly salary of $6,600; in December 2008, Headquarters had granted a waiver to the 11 month rule. The person concerned now works for another office.
51. Contract renewal files contained selection forms showing the names of other consultants, but the requests submitted by programme specialists to the Administrative Officer clearly intimated their wish to retain the same contractors.28
52. The evaluation provided for in Chapter 13 of the Manual was far from routinely conducted. The files audited did not all attest to the conduct of an internal evaluation. Mr B had been recruited primarily to perform the duties of subregional coordinator. 29 The auditors could not ascertain whether all of the activities listed in the progress report on his work had effectively been carried out. The wording of the performance indicators30 was rarely used. Very general statements such as “all tasks requested by UNESCO”31 should be avoided.
53. Some consultants, recruited to fill vacant posts de facto, accomplished several missions simultaneously. They were required to represent the Office, and even the Organization.32
54. Attention should be paid to any concurrent contracts and the attendant risk of a conflict of interest or bias.
3. Fee contracts
55. BREDA signed 23 fee contracts in 2008 ($147,558) and 22 in 2009 ($206,300). Twenty files were examined. There, too, the files were kept in an inconsistent manner. In particular, the evaluations had not been done in some instances (4 cases) or the forms had been filled in improperly (2 cases). BREDA should be empowered to request restitution of provisional disbursements if the project has not been completed.33
Recommendation No. 8. Ensure compliance with Manual provisions on the use of consultant and fee contracts and fees are respected.
IV. PROJECTS IMPLEMENTED BY THE BUREAU
A. BUDGET BREAKDOWN BY SECTOR
1. Regular programme
56. BREDA’s regular programme decreased from $4.3 million for the 2009-2010 biennium to $4.6 million for the current biennium (+7%).
26 182 EX/46, Recommendation No.7. 27 Example: contract 8020529. 28 Example: contract 8591700 and memo of 11 June 2009. 29 Four contracts for a total of 24 months. 30 Circular dated 4 July 2008. 31 Example: contract 802052.9/3240210371. 32 Examples: representing BREDA at UNDAF, courtesy calls to political authorities, representing the Organization at the ECOWAS International Conference or the Permanent Forum of Arab-African Dialogue on Democracy and Human Rights. 33 For example, contract 8030089/3240205019. 185 EX/32 Part III – page 15
57. The education section was allocated most of the funds under the regular programme. Owing to the decline recorded between the 34th biennium and the 35th biennium (-11%), although total appropriations rose, its share contracted from 70% to 60%. The human and social sciences section received the second highest amount of funds (7%), followed by the communication and information sector (6%).
2. Extrabudgetary funds
58. In 2010, more than 72% of extrabudgetary funds were allocated for education projects,34 well ahead of communication and information (13.5%), social and human sciences (7%), natural sciences (6%) and culture (1%).
B. EDUCATION35
1. The challenges of education in Africa and BREDA’s position
59. Building on the Education for All (EFA) concept defined at the Jomtien Conference in 1990, the Dakar World Education Forum in 2000 set six main goals: develop early childhood care and education; provide all children with free, compulsory primary education; promote learning of young people and adults and provide them with necessary life skills; increase adult literacy by 50%; achieve gender parity by 2005 and gender equality by 2015; and improve the quality of education. The African Union has adopted a plan of action for the second decade of education (2006-2015).
60. UNESCO operated through several key players, namely the Regional Bureau, the Pôle de Dakar, the UNESCO Institute for Statistics (UIS), IICBA, 36 the other offices and National Commissions. BREDA is in charge of EFA advocacy, partner coordination, EFA monitoring, support for national policies and execution of UNESCO initiatives.37
61. An agreement between IICBA and BREDA was signed in September 2001. Pursuant to the guidelines on “accountable decentralization”,38 IICBA acted in particular to implement the TTISSA programme. There is a UIS unit at BREDA. UIS, through its regional adviser, enters into strategic partnerships with the national data-gathering authorities.
62. BREDA’s remit was confined to sub-Saharan Africa, but it collaborated, on a decentralized basis,39 with the Association for the Development of Education in Africa (ADEA), based in Tunis. The Bureau contributed $50,000 to the association and its director was UNESCO’s representative to the association. Through some projects, ADEA was associated with the implementation of specific Bureau activities. Owing to financial and functional ties and the concomitant action of two regional bureaux for education on the continent, their operations should be clarified in the interest of the Organization.
Recommendation No. 9. Draw up a memorandum with ADEA setting common objectives and specifying the means of action.
34 Including HIV/AIDS-related projects. 35 The files for 14 projects were examined. 36 UNESCO International Institute for Capacity-Building in Africa. 37 LIFE, TTISSA and EDUCAIDS (see below). 38 DG/Note/06/52 dated 3 November 2006. 39 Decentralization decision taken by Headquarters in October 2007, letter from the Director of BREDA dated 20 April 2008, to ADEA.
185 EX/32 Part III – page 16
2. The distinctive nature of the Pôle de Dakar
63. The Pôle de Dakar is a unique body. It resembles an extrabudgetary programme because of its mode of funding and operational mode (annual steering committee), while being an operational unit of the Bureau. The Pôle came into being in November 2001 as a result of a French Cooperation initiative after the Dakar World Education Forum in April 2000, within the general framework of the Fast Track Initiative (FTI) of the World Bank to achieve the second Millennium Development Goal by 2015.
64. Since its establishment, the Pôle has been active mainly on three fronts: direct support to States for sectoral assessments and for the formulation and implementation of education strategies; the compilation of indicators to monitor the EFA programme; training, in partnership with other institutions and universities.
65. Until 2006, the Pôle was funded primarily by the French Cooperation Department, which provided six experts remunerated directly by France, 40 funding for equipment (in particular hardware) and extrabudgetary funds through the French Funds-in-Trust.41 Since 2006, France has sought to strengthen the multilateral nature of the project by gradually transferring the management and remuneration of the six experts and replenishing extrabudgetary resources. Since 2007, the project has been funded through EPDF42 under the FTI initiative run managed by the World Bank.
66. In September 2008, the Pôle was moved to BREDA premises. Responsibility for French funding was transferred to the French Development Agency (AFD), with which UNESCO has signed an agreement (June 2009). Until 2008, there were several extrabudgetary projects for which the French Cooperation Department received appropriations annually. In 2010, there are three programmes – two in receipt of French funding43 and one funded by EPDF.44
67. At the beginning of 2010, the funds available for the three programmes amounted to $5.39 million, or 65% of the extrabudgetary resources of the education sector ($8.28 million). Staff-cost allocations accounted for 71% of the budget. Mission expenditure was the second largest budget item (11%), while 13% of UNESCO management expenditure were charged to French funds and 5% to EPDF funds.
68. In June 2010, the Pôle de Dakar team comprised 12 persons – eight analysts (including the Pôle coordinator), a manager of the distance training programme, two young analysts (on consultant contracts) and a part-time communication consultant. Two team-members were still remunerated by the French Ministry of Foreign Affairs; when their contracts end, they will be granted ALD contracts.
69. All of the documents reviewed, in particular the reports of annual steering committee meetings (donors and UNESCO) and annual reports, showed that the Pôle’s activities were satisfactory. The files consulted were very well kept. The Pôle, continuously active since its establishment, compiled education system assessments known as State Reports on a National Education System (RESEN) in accordance with a standard analytical procedure45 (15 education systems analysed, 46 six analyses in progress), supports the financial monitoring of education strategies (13 countries), supports the TTISSA programme (under way in one country and in two
40 Estimated sum of $889,000 in 2008. 41 UNESCO account 520 INT. 42 Education Program Development Fund. 43 520 RAF1006 (remaining funds of the Ministry of Foreign Affairs) and 520 RAF 1008 (AFD). 44 700 RAF 1001 (last year: 2010). 45 Theorized by the Institute for Research in the Sociology and Economics of Education (IREDU) in Dijon and adopted by the World Bank. 46 Four in English-speaking countries and two in Portuguese-speaking countries. 185 EX/32 Part III – page 17 others by the end of 2010) and conducted a distance education programme on sectoral policies and the management of education systems (two classes trained, one being trained).
70. The integration of the Pôle into BREDA cannot be taken for granted, even though it is being touted as an objective. The Pôle’s strong internal cohesion is due to its operational objectives and its field activity. Its programming has been validated by the steering committee. Moreover, until 2008, BREDA had hardly drawn on the Pôle’s skills to draft its strategies and programmes.
71. At the organizational level, the Pôle as a unit has been integrated into the Sectoral and policy analysis and planning section, together with the UIS regional unit. Its integration was rather theoretical, however as no sub-sector chief had been appointed to date.47 The strengthening of BREDA’s regional outreach should enhance the value of the Pôle’s contribution. Furthermore, the preparation of the 35 C/5 document afforded an opportunity for the Pôle to be included in the validation of work plans of the national offices.
72. Cooperation with UIS has from the outset been deemed most productive. Activities were immediately perceived as complementary. However, the Pôle’s papers have not yet been sufficiently used to develop the operational nature of TTISSA, for example to conduct genuine assessments of the situation of teachers in countries. At the date of the audit, the Pôle was little involved in the LIFE initiative48 and in the field of non-formal education. It hardly maintained any relations with IICBA.
73. BREDA and the Pôle de Dakar are today at a watershed in the consolidation of the integration process. The replacement of the Pôle’s coordinator, who will soon be leaving, will herald in a change in that body’s operations. The new coordinator, a staff member holding an appointment of limited duration (ALD), will be recruited in accordance with UNESCO procedures and unambiguously under the authority of the Director of BREDA.
74. The post description of the new head of the Pôle should be drawn up carefully and the Pôle’s position within BREDA should be defined more clearly to ensure consistency between the coordinator’s grade and the status of the unit and to link the coordinator’s duties to those of a likely deputy director.
Recommendation No. 10. Initiate immediately the procedure to replace the coordinator to avoid leaving the post vacant; determine the exact position of the Pôle de Dakar within BREDA.
3. BREDA’s activities
75. The activities carried out by the Bureau fell within the biennial sectoral priority on supporting the achievement of education for all (EFA).
3.1 TTISSA
76. The Teacher Training Initiative for Sub-Saharan Africa49 was launched in January 2006 for a ten-year period. UNESCO wished to help countries to formulate a national strategy based on an education policy assessment. In the first biennium (2006-2007, document 33 C/5), the TTISSA budget was $2.23 million. In the 2008-2009 biennium (34 C/5), it was a mere $1.83 million. Since
47 This P-5 post was recently transferred from BREDA to Headquarters. 48 Literacy Initiative For Empowerment. 49 TTISSA.
185 EX/32 Part III – page 18 its launch, extrabudgetary funds estimated in August 2009 at more than $8.8 million have been provided for the Initiative.50
77. An external evaluation was conducted on TTISSA in 2009.51 The evaluator, who experienced methodological difficulties because no satisfactory, high-quality implementation reports were available, reported that TTISSA’s impact could not at that stage be evaluated. Emphasis was laid repeatedly in the report on the lack of staff capable of monitoring the implementation of TTISSA.
78. The programme has been decentralized52 and the various projects have been monitored by BREDA for two years. A P-5 post was decentralized in February 2009,53 but was used to hire a consultant until 31 July 2009. The post was under recruitment at the date of the audit.
79. The first meeting of the steering committee was held on 25 and 26 January 2010 in Dakar. The steering committee comprised 17 stakeholders (including UNESCO, the African Union, the African Development Bank, the African Virtual Campus, the French Embassy, the Italian Development Cooperation Agency and Israel’s Agency for International Development Cooperation). New guidelines were set for TTISSA, extending its scope (expansion of the methodological guide project, extension to non-formal and informal education).
80. The Bureau has begun a mid-term review of the Initiative. Of the 17 participating countries, only eight had returned questionnaires at the date of the audit.54 The main activities undertaken have been workshops, training courses and the production of educational material. The problems encountered included the lack of financial resources, social and political instability and, in some cases, UNESCO’s cumbersome financial procedures.
3.2 Higher education
81. The second World Conference on Higher Education (WCHE 2009) was held in 2009,55 after a preparatory regional conference (Regional Conference on Higher Education in Africa – CRESA) had convened in Dakar in November 2008. Six priority fields were identified, namely access to higher education – a matter of direct concern to BREDA, quality assurance in higher education (World Bank), governance and working conditions (Association of African Universities), research and technological innovation (UNESCO), higher education funding (World Bank and African Development Bank) and harmonization (African Union). The activities carried out were covered by the revised Arusha convention.
82. BREDA’s goal in the current biennium is to encourage African States to sign and ratify the Convention and to support its implementation. The Bureau hired consultants, as it had no programme specialists, in order to follow up several meetings and prepare for the World Conference.
4. Challenges facing the Regional Bureau for Education: decentralization and regionalization
83. The implementation rate of the Programme and Budget for 2010-2011 (35 C/5) was 9.8% at the end of May 2010. Action to implement six of the 24 activities scheduled under the regular programme had not yet commenced although several activities had been slated to begin in early 2010. The average budget for an activity was $112,000.
50 Seventy per cent came from the Capacity-Development for Education for All (Cap-EFA) programme (Denmark, Sweden, Norway, Finland and Switzerland). 51 ED/HED/2009/PI/58, Capacity Trust and Premium, August 2009. 52 182 EX/Decision 9 and document 35 C/5, paras. 01005 (e) and 01026. 53 DG Memo 9997, reference ED/EO/HR/2009/21, dated 6 February 2009. 54 Burkina Faso, Cape Verde, Central African Republic, Ghana, Guinea, Madagascar, Niger and Nigeria. 55 The first Conference was held in Paris in 1998. 185 EX/32 Part III – page 19
4.1 Human resources unequal to the stated goals
84. The education section faces acute recruitment difficulties, as already noted in the 2007 mission report.56 BREDA’s supervisory staff cannot take up the challenges set by the Organization. The decentralization of TTISSA has again made this clear.
85. For the 2010-2011 biennium six of the 24 activities are under the authority of the Director of BREDA, who is very often away from Dakar on official duty, while two are under the Pôle’s coordinator, 12 have been entrusted to a single programme specialist, who is thus responsible for a budget of $1.31 million, and the last four are followed by two people.
86. It is with this small staff complement that BREDA must perform its role as a regional intermediary. Between July 2007 and March 2010, more than 25 regional meetings were held on education, often with the assistance of consultants, who were sometimes working on several subjects at once.
87. In view of the staffing problems encountered, the number of activities and projects to be carried out should have been addressed before document 35 C/5 was adopted.
Recommendation No. 11. Speed up recruitment processes.
4.2 Giving substance to accountable decentralization
88. A budget line for regional coordination, opened for the 34th biennium,57 was used to fund the secretariat of the Forum of African Parliamentarians for Education (FAPED) established in 2002 and a survey on teachers’ knowledge of the education for all goals conducted in three countries by a consultant.
89. The 34th biennium was the first full biennium in the implementation of “accountable decentralization” in the education sector. BREDA was required to play a leading role in coordinating education activities regionally and subregionally in Africa and as an effective intermediary with the African Union. However, the lack of annual activity report has not facilitated its role as the only reliable intermediary, which has also been undermined by the number of vacant specialist posts. One positive development has been the establishment in 2009 of a collaborative work platform involving programme specialists.
Recommendation No. 12. Strengthen the forum for discussion between education specialists.
4.3 Formalizing a regional education strategy
90. The regional strategy has drawn on several framework documents such as the Medium-Term Strategy for 2008-2013 (34 C/4), approved programme and budgets (C/5 documents), the African Union’s Plan of Action for the Second Decade of Education for Africa and the EFA Global Monitoring Report. It also rests on the draft UNESCO National Education Support Strategies58 formulated in every country and currently in varying states of preparation.
56 ADM/BOC mission report, September 2007, para. 9. 57 FABS code 4124200032. Budget: $226,400; implementation: $270,942. 58 UNESS.
185 EX/32 Part III – page 20
91. The formulation of a regional strategy was discussed at a forum held in Bamako in 2007 and at meetings of directors of UNESCO offices held in July 2008 in Cotonou and in 2009. Even so, BREDA has not compiled a formal strategic document analysing the risks and setting out strategic objectives, expected results and performance indicators. It has only drafted a work plan for the preparation of the 2010-2011 budget entitled Regional Action Framework. Formalization would help it to identify the human and financial resources that will be required.
Recommendation No. 13. Set strategic policy lines for the medium term and related performance indicators.
4.4 Strengthening credibility through evaluation
92. The programme in document 35 C/5 invited the Organization to adjust the organizational structure, reporting lines and staff deployment of the Education Sector in order to bring them into line with the priority areas so that the proposed programme could be implemented in an effective manner.59 However, decentralization remains incomplete, staff deployment does not reflect the stated challenges set by the Organization and reporting lines cannot be guaranteed if there is general recourse to consultants instead of the Organization’s Professional staff.
93. BREDA’s capacity for planning and evaluation must be built so that it can perform its role of regional leader in education. The imminent recruitment of a planning officer will in part meet the need for formalization, but BREDA’s skills must still be strengthened across the board with a view to 2015, the date set for the achievement of education for all.
Recommendation No. 14. Identify an education-activity evaluation function within BREDA.
C. EDUCAIDS PROJECTS
94. The Joint United Nations Programme on HIV/AIDS (UNAIDS) was launched in 2004 and UNESCO has since been supporting the implementation of global education policy responses to the pandemic. BREDA’s programming on the subject is financed mostly from UNAIDS funds.
1. BREDA’s regional outreach
95. Until March 2007, files on action to combat AIDS were processed part-time by staff in BREDA’s education section, liaising with the regional coordinator for Africa based in South Africa. In early 2007, two P-2 staff members were appointed specifically to handle those matters. In 2009, regional coordination operations were reinforced: Southern and East Africa were covered by the coordinator based in Johannesburg (but under BREDA); Central and West Africa are now covered by a coordinator who took up her duties in BREDA in November 2009. A Section on HIV and AIDS has been established in the Education Sector. It had four staff members as at June 2010.60
96. Between 2007 and 2010, $1.9 million61 were mobilized from UNAIDS funds for 10 BREDA projects, mainly concerning education. Of the expenditure recorded as at 1 June 2010 ($1.08 million), 45.5% were for the remuneration of the staff, consultants and experts, notably regional experts in Dakar and Johannesburg.
59 Document 35 C/5, paragraph 01005 (g). 60 One P-4 regional coordinator, one P-3 regional coordinator (ALD), one consultant and one post funded directly by UNAIDS. 61 $1.8 million for operations, net of support costs ($0.11 million). 185 EX/32 Part III – page 21
2. Examination of the projects
97. On the whole, records were well kept. Seven projects were analysed for the period 2007- 2010.
98. The activities of the regional coordinator for East and Southern Africa, operating from WFP premises in Johannesburg were funded under two projects ($0.64 million). The WFP advanced the sum and was then reimbursed by BREDA, billing 4% for administrative handling.
99. Several project-related consultant contracts were signed. In regard to the contract signed with Mrs C, the only supporting document in her file was a two-page table; the Bureau affirmed that there were other documents, but they were not in the file and could not be reviewed while the audit was under way. Mrs C was subsequently awarded another contract. The documents on good practices that Mr D had been commissioned to draw up were not in the file submitted to the auditors either.
100. A consultant had been given the task of lobbying to speed up the production of a strategic AIDS prevention document by a Ministry of Education. On the basis of the reports submitted, no opinion could be formed as to the work really accomplished. BREDA eventually suspended payments, after disbursing $18,000, pending receipt of a detailed report.
101. A firm had been required under a service contract amounting to more than $12,000, to make a presentation to the directors of UNESCO offices in the region in January 2010 on ways and means of gaining access to European Commission funds. EDUCAIDS partners were invited. The training, provided in very general terms, had no bearing on action to combat AIDS. Nevertheless, the Bureau considered it to be part of its EDUCAIDS fund-raising endeavour.
102. A project entitled Studies and use of cultural heritage to prevent AIDS62 was carried out in line with objectives, with local consultants producing high-quality papers. It enabled direct support to be provided to local associations.
103. Apart from comments made on some contracts, the auditors questioned the advisability of holding continent-wide seminars that were perforce very costly in view of the amounts allocated for fledgling field activities on, for example, teachers with AIDS.
D. THE OTHER BREDA SECTIONS
1. Natural sciences63
104. The section is staffed by a programme specialist and an assistant, in addition to a P-4 supernumerary and an assistant remunerated under an extrabudgetary project. The number of activities has fallen from 10 in 2006-2007 ($133,000) to three in 2008-2009 ($75,000) and five in 2010-2011 ($140,000). No activity exceeded $50,000.
105. In partnership with a university, UNESCO held a workshop on building the capacity of the Global Network on Water and Development Information for Arid Lands in sub-Saharan Africa. The final file did not specify whether additional funds had been allocated, and so the multiplier effect of the Bureau’s contribution could not be measured.
106. The Senegal Delta Transboundary Biosphere Reserve, established by Senegal and Mauritania in 2005, contains a natural world heritage site and four internationally important
62 Project 247 RAF 4001 ($100,000). 63 The auditors studied the files on eight activities and projects.
185 EX/32 Part III – page 22 wetlands.64 Its management included combating invasive plants such as Typha reeds. Phase 1 of the project was funded in the 2006-2007 biennium. Experimentation under Phase 2 was to continue in the 34th biennium and a methodology to control the proliferation of Typha reeds was to be proposed and disseminated. Only $9,000 were allocated for those activities.
107. In the current biennium, activities related in particular to the proposal to establish a new transboundary biosphere reserve (the Saloum Delta in Niumi, Gambia-Senegal). The expert selected under a special service agreement (SSA) was the Natural Sciences programme specialist in 2007.
2. Culture65
108. The section’s budget was small and fragmented. For the 2010-2011 biennium ($207,000), none of the six activities exceeds $50,000; the budget for 17 of the 33 sub-activities is less than $5,000.
109. Under an extrabudgetary Norwegian fund, support was provided for the Saint Louis Museum.66 The fund was decentralized in February 2006 by Headquarters, which determined the Bureau’s main lines of action. 67 BREDA adopted however, a different training workshop programme. Its decision was contested by the head of Senegal’s Research and Documentation Centre (CRDS) to which the museum was attached. An activity-funding contract was signed afterwards with the CRDS for the safeguarding of archives, the promotion of the Saint-Louis Museum and the enhancement of its collections.
110. Under the joint project with Spanish Funds-in-Trust to promote cultural initiatives and industries in the Bassari country and Saloum Islands, BREDA helped to raise some Senegalese population groups’ awareness of their copyright entitlements in 2010. Training workshops on copyright and related rights were held for artists, craftspeople and representatives of the local administration and the teaching aids used were in the Bedik, Conagui and Bassari languages.
3. Communication and information
111. The section’s budget grew considerably in 2008, because of the allocation of very large amounts of extrabudgetary funds.
3.1 The Scale-up Initiative for Community Multimedia Centres project
112. The Scale-up Initiative for Community Multimedia Centres (CMC) project, 68 building on a project initiated in 2004 in several countries of the subregion with support from the Swiss Cooperation Department, was designed to give rural communities and minorities access to information by installing local radio stations and computer hardware. The goal was to build the capacities of CMCs established, train their operators and mobilize new partners. The project was well designed and had assorted monitoring and assessment indicators.
113. The project could not be audited, however, owing to the state of the files. Fourteen files had been opened, they were not clearly marked by subject and they contained disparate documents. The contracts were kept apart from supporting documents, when the latter were on file. There was no coherent and chronological grouping by activity. It was therefore difficult to monitor project implementation through sequential comparison with the initial project document and to ensure that the supporting documents for payments were on file.
64 The Ramsar Convention on Wetlands (Ramsar, 1971). 65 Four files were examined. 66 Code 504 RAF 4002.1 ($40,000). 67 Memo of 20 February 2006 CLT/CH/MUS/06/17. 68 501 SEN 5000, Swiss Government Funds-in-Trust ($485,000). 185 EX/32 Part III – page 23
114. Three progress reports were reviewed (November 2008, December 2008 and May 2010), showing that activities were consistent with the major objectives set in the initial project. However, these documents could not be used to check the precise conditions under which the activities recorded were carried out.
Recommendation No. 15. Harmonize filing in order to improve project monitoring.
3.2 The Promotion of cultural initiatives and industries project
115. The Promotion of cultural initiatives and industries project69 was part of the first joint project implemented in Senegal by five United Nations agencies (UNESCO, UNDP, UNFPA, ILO and UNIDO). It met strategic cooperation goals set under the United Nations Development Assistance Framework (UNDAF70) and was funded by resources from the Spain Millennium Development Goals Achievement Fund (MDGF71), amounting to $6.5 million over three years. UNESCO, the lead agency, was to receive $3.9 million. The first $2.08 million instalment was released in October 2008 and was used to launch the project at the beginning of 2009.
116. Formulated in partnership with Senegal’s Ministry of Culture, the project focused on the sustainable cultural and tourism development in two Senegalese regions with a rich cultural heritage (Bassari country) and natural heritage (Sine Saloum delta), but were extremely poor. The project file, validated in August 2008, contained activity details and precise performance indicators. The Cultural Heritage Director (DPC) and UNESCO (BREDA) managed the project jointly.
117. According to the work plan relating to the first instalment, UNESCO was required in particular to finance the project coordination unit established within the CI section and activities implemented with the Cultural Heritage Directorate. A 6.5% deduction has been made for support costs.
118. Local partners and the MDGF secretariat disagree on the project implementation rate, estimated to be 56% by the MDGF and 77% by the Dakar agencies for the first year.72 This is due in part to the agencies’ decision in July 2009 to pool funds to establish a community village. A consultant appointed by the MDGF secretariat has determined that the second instalment of funds could only be released once the framework for concerted inter-agency action has been strengthened.73 UNESCO’s work has not however, been called into question.
119. BREDA is in charge of inter-agency operational coordination. A team of four was hired at the end of 2008 and it grew to five in 2009. Training courses were held in March 2009 under consultant contracts charged to the project. On 31 December 2009, the coordination team was dissolved pending disbursement of the second instalment of project funds. For six months now, this major project has been coordinated only by the in-house CI and CLT teams.
120. Similarly, according to the evaluation mentioned above, United Nations system-wide coordination by the UNDP is blighted by a lack of genuine United Nations system-wide commitment, the lack of structured communication and coordination among agencies and between the agencies and the fund’s secretariat in New York and the lack of unitary coordination for six months.
69 Project 225 SEN 4000 ($2.1 million). 70 United Nations Development Assistance Framework. 71 Millennium Development Goals – Fund. 72 Reports of the steering committee meetings of 8 April and 18 May 2010. 73 Report of the steering committee meeting of 4 June 2010.
185 EX/32 Part III – page 24
121. As with the previous project, the files made available to the auditors complicated somewhat the task of auditing the project’s implementation. Documents were dispersed among numerous files. Audit checks could nonetheless be carried out.
122. In the inter-agency work plan, UNESCO is required under the UNDAF strategic focus on wealth creation and overcoming hunger for sustainable development to provide $46,729 in institutional support to the DPC of the Ministry of Culture. BREDA provided the DPC with a car and defrayed many of the management offices’ expenses that were not directly linked to the project (purchase of a telephone switchboard, office furniture and IT hardware, building work, purchase of petrol for the vehicle provided and complete repair to another vehicle). During the first year of project implementation, at least $109,000 were used on expenditure for the DPC alone. The conditions in which they were revealed have not been verified by the Bureau.
123. Such expenditure, which is not clearly reported in the documents sent to the donors, met the needs of the Ministry of Culture, but is inconsistent with the stated objectives of the project and may not be passed off as institutional support.
124. A $200,000 contract was signed in June 2009 with a journalism training school for capacity- building workshops to be attended by volunteers and managers of community multimedia centres. It was to be implemented from July to the end of September 2009. An initial disbursement of $100,000 was made when the contract was signed, but the contracting party was one year late in performing the contract.
Recommendation No. 16. Clarify the notion of institutional support so that it is directly linked to the project’s aims and purposes
V. CROSS-CUTTING OBSERVATIONS ON ACTIVITIES
A. VISIBILITY OF THE REGIONAL BUREAU AND THE CLUSTER OFFICE
125. The Bureau has a publication policy, established by a memorandum from the Director in July 2005. A publications committee is responsible for the quality of documents and works to be published. The publications unit, which had a staff complement of six in 2005, no longer exists.
126. BREDA was once renowned for the number of its publications. This is no longer the case as it produced six publications in 2007, three in 2008, ten in 2009, and two in the first half of 2010. In 2007 it attempted to publish a quarterly newsletter on Education for All (EFA), in order to establish BREDA’s role and place in Africa, monitor the EFA and revitalize the publications.74 It has not attempted to do so again.
127. The Bureau decided to relaunch the UNESCO in Africa journal, after consulting the heads of UNESCO Offices in Africa on the occasion of the Cotonou meeting in July 2008.
128. The first issue, on cooperation in higher education in Africa was published in July 2009 on the occasion of the Second World Conference on Higher Education. The publication of the second issue has been scheduled for August 2010. The estimated cost of the first issue was CFA F5 million ($9,900), charged to the promotion and strengthening of higher education and research activity budget, which did not provide for it initially. An electronic version was available on the Bureau’s Intranet.
129. The Bureau has printed a brochure on BREDA in French and English and publishes a bimonthly newsletter, BREDA in House. However, it does not draw up an annual activity report,
74 Memorandum dated 26 April 2007 concerning the EFA newsletter. 185 EX/32 Part III – page 25 unlike other regional offices, although it has a publications promotion assistant (L-5), whose main task is to compile and finalize drafts for the production and publication of the Bureau’s annual report.
Recommendation No. 17. Adopt BREDA-specific publication guidelines consistent with the Organization’s publication guidelines and draw up an annual activity report.75
B. BREDA’S EXTERNAL RELATIONS
1. With other agencies
130. The auditors reviewed the records of United Nations Country Team meetings in 2009-2010.76 The Regional Bureau was represented by its Director on two occasions only. The Director was not represented at four of the UNCT’s ten meetings in Senegal during this period (in particular the annual seminar in April 2009). The Director was represented by four different people at another five meetings, one of whom was a consultant.
131. It has been noted that the Bureau’s documentation centre does not maintain regular and formalized relations with the other documentation centres, in particular those of the United Nations’ agencies.
132. Inter-agency meetings of administrative officers are to be held every month. 77 Yet the auditors were given only three meeting records (April 2009, October 2009 and May 2010), and the administrative officer disclosed that no other meetings were held in 2009 and 2010. UNESCO was represented at two of the three meetings.
Recommendation No. 18. Improve organization so that the Bureau participates at a high level in United Nations country team meetings.
2. With donors
133. Embassy representatives, cooperation agencies and United Nations agencies convene regularly as the “Senegal Technical and Financial Partners (TFP)” group.
134. For the June 2009-June 2010 period, the auditors reviewed the records of six sub-committee meetings held on education issues. BREDA was represented by the LBE head three times and by programming assistants at the other three meetings. The records show that BREDA could not chair the meeting on two occasions.
135. Staff shortages in the education section account for BREDA’s failure to play its role fully in a sector in which it should be the leader.
3. With National Commissions for UNESCO
136. Shortfalls in relations with the National Commissions had been underlined in the IOS audit report. The first meeting of the four National Commissions was held at BREDA in March 2008. The
75 DG/Note/08/22 and 44 dated 25 June and 28 November 2008; UNESCO Publications Guidelines. 76 United Nations Country Teams (UNCT) – Cape Verde, Gambia, Guinea-Bissau and Senegal. 77 United Nations Operational Management Team (UNMOT).
185 EX/32 Part III – page 26 second meeting was held in December 2009. The National Commissions hoped that the Bureau would inform and consult them more regularly and would give them its support.
137. The auditors met the Secretary-General of the Senegalese National Commission for UNESCO. It has a staff of 11 and is located in offices that have been fitted out by UNESCO.
138. The National Commission considered exchanges with BREDA to be insufficient. It maintained relations mainly with Headquarters directly. At the last meeting of the Commission’s General Committee, BREDA was represented by an SHS consultant. It was not represented at the signing of the agreement between the National Commissions of Senegal and Gambia, which was nevertheless the first of its kind.
139. The Director of BREDA stressed that unavailability was due to her regional obligations and to the vacant posts. The recent appointment of liaison officers to Cape Verde and Guinea-Bissau should strengthen ties with those countries’ National Commissions.
Recommendation No. 19. Ensure that the Regional Bureau has a greater presence in National Commissions.
4. With UNESCO Chairs
140. Within the area covered by the Dakar Cluster Office, there were only two UNESCO Chairs out of a total of 76 UNESCO Chairs in Africa – one in education (École normale supérieure, Dakar, 1994) and another in integrated coastal zone management (Cheikh Anta Diop University, Dakar, 1997).
141. BREDA did not cooperate with those Chairs. The education chair has been involved occasionally in the Pôle’s work.
Recommendation No. 20. In conjunction with Headquarters, highlight the merits of cooperation with UNESCO Chairs.
Director-General’s comments:
The Director-General thanks the External Auditor for his report on the Regional Bureau for Education in Dakar and notes its usefulness in the light of the current review of the decentralization policy.
She accepts all of the recommendations made and will report on the progress of their implementation in accordance with the usual practice.
Printed on recycled paper