United Nations: Lessons Learned from Oil for Food Program Indicate the Need to Strengthen UN Internal Controls and Oversight Activities
GAO-06-330
Published: Apr 25, 2006. Publicly Released: Apr 25, 2006.
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Highlights
In 1996, the United Nations (UN) Security Council and Iraq began the Oil for Food program to address Iraq's humanitarian situation after sanctions were imposed in 1990. More than $67 billion in oil revenue was obtained through the program, with $31 billion in humanitarian assistance delivered to Iraq. The 2005 Defense Authorization Act mandated that GAO review the Oil for Food program. GAO reviewed how the UN adhered to five key internal control standards in its stewardship of the program. GAO assessed (1) the program's control environment and (2) key elements of the other internal control standards. GAO also reported on the UN Compensation Commission's progress in paying reparations from Iraq's invasion of Kuwait.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of State | The Secretary of State should work with other member states to encourage the Secretary General to ensure that UN programs with considerable financial risk establish, apply, and enforce the principles of internationally accepted internal control standards, with particular attention to comprehensive and timely risk assessments. |
Closed – Implemented
According to officials at the U.S. Permanent Mission to the United Nations, the U.S. Mission is very active in the United Nation's Advisory Committee on Administrative and Budgetary Questions (ACABQ). They provided this report to other member states when the report was issued, and they said that it played an important role in spurring the United Nations (UN) to take further action. On February 26, 2010, the UN Advisory Committee on Administrative and Budgetary Questions recommended that the Secretary General develop an internal control framework for the United Nations that included a systematic risk-based approach. On May 5, 2010, the UN General Assembly passed Resolution 64/259, which requested the Secretary-General to enhance the current capabilities in the Secretariat responsible for risk assessment and mitigation and internal controls.
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| Department of State | The Secretary of State should work with other member states to encourage the Secretary General to strengthen internal controls throughout the UN system based in part on the lessons learned from the Oil for Food program. |
Closed – Implemented
In an April 2006 letter, State commented that it is working diligently on strengthened internal controls at the UN. On May 5, 2010, the UN General Assembly passed Resolution 64/259, which stressed the importance of internal controls and accountability in the UN Secretariat and requested the Secretary General to draw on lessons learned from the UN programs and funds when developing the accountability system of the UN Secretariat. U.S. officials, stated that GAO's reports on the Oil for Food Program played an important role in moving the U.N. towards this action.
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Topics
Food relief programsForeign aid programsForeign governmentsInternal controlsInternational food programsInternational organizationsInternational relationsInternational trade restrictionLessons learnedMonitoringProgram abusesProgram managementReparationsRisk assessmentSanctionsIraq War and reconstruction