Executive Board Two hundred and first session

Transcription

1 Executive Board Two hundred and first session 201 EX/21.INF.2 PARIS, 7 April 2017 English & French only Item 21 of the provisional agenda NEW AUDITS BY THE EXTERNAL AUDITOR AUDIT REPORT ON THE UNESCO OFFICE IN BANGKOK SUMMARY In accordance with Article 12.4 of the Financial Regulations, the External Auditor submits the audit report on the UNESCO Office in Bangkok. The short form of this report and the comments by the Director-General are contained in document 201 EX/21 Part II.

2 (i) EXTERNAL AUDIT OF THE UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGANIZATION AUDIT REPORT ON THE REGIONAL BUREAU FOR EDUCATION IN ASIA AND THE PACIFIC UNESCO OFFICE IN BANGKOK, THAILAND External Auditor reference: UNESCO

3 (ii) TABLE OF CONTENTS Page I. OBJECTIVES AND SCOPE OF THE AUDIT... 1 II. CONTEXT... 1 III. LIST OF RECOMMENDATIONS... 3 IV. AUDIT FINDINGS SCOPE OF ACTION OF THE OFFICE MANAGEMENT OF THE OFFICE RESOURCES OF THE OFFICE MYANMAR ANTENNA MANAGEMENT OF PROJECTS BY THE OFFICE ACKNOWLEDGEMENTS... 50

4 201 EX/21.INF.2 OBJECTIVES AND SCOPE OF THE AUDIT 1. A team of two external auditors visited the Regional Bureau for Education in Asia and the Pacific, the UNESCO Office in Bangkok, from 12 to 23 September The audit mainly concerned the activities and management of the Office during the and biennia. There was no specific review of the two units attached to the Office (UNESCO Institute for Statistics 1 Assessment, Information Systems, Monitoring and Statistics Unit 2 and Internal Oversight Service 3 ). 2. The audit was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAI), established by the International Organization of Supreme Audit Institutions (INTOSAI) and in accordance with applicable texts, in particular Article 12 of the UNESCO Financial Regulations and the Annex on the Additional Terms of Reference Governing the Audit. 3. Each finding and recommendation has been discussed with the Office s managers. The exit meeting, held on 23 September 2016, was attended by the Director of the Office and his team. The Director commented on the draft recommendations. 4. The comments and clarifications provided by the Bangkok Office on 15 October 2016 were taken into consideration where appropriate. This final version of the report was drawn up following reception of the comments by the Director-General and the Headquarters offices on 15 December Twelve of the 14 following recommendations have been approved by the Director-General. The External Auditor felt bound to retain the other two recommendations (No. 6 and No. 14), with modifications, so that the Executive Board could make a full and informed decision on matters of principle concerning the management of a field office and the role of the External Auditor. II. CONTEXT 6. The UNESCO Office in Bangkok was established in In 2016, it was one of the 13 regional bureaus of the Organization and, with the UNESCO Office in Jakarta, is one of the two regional bureaus in the Asia and the Pacific region. It combines the responsibilities of a thematic regional office for education, a cluster office for six of the South-East Asian countries and a national office for Thailand. 7. The Office conducts activities and projects in all of the Organization s sectors Communication and Information (CI), Culture (CLT), Education (ED), Natural Sciences (SC) and Social and Human Sciences (SHS). For the biennium it had a budget of $3,646,000 4 under the regular programme (including additional appropriations) and $17,199,000 under extrabudgetary resources. At the time of the audit, across all categories, the Bangkok Office had 102 staff members, including 22 staff members with international status, as well as three permanent staff members at the Yangon Antenna. 8. The Office underwent an internal audit by the Internal Oversight Service in June 2009 (IOS/AUD/2009/12), which found a number of issues that needed to be addressed: specific role of the Office in fields other than education (culture and social and human sciences (SHS)); overall standard of administrative and financial management, despite identification of a case of suspected fraud in mail franking management owing to inadequate segregation of duties; UIS. AIMS. IOS. United States dollars.

5 201 EX/21.INF.2 page 2 offsetting of the decline in extrabudgetary funds; high levels of administrative staff; streamlining of administrative processes and stricter budget controls. 9. Twelve recommendations were made on the basis of these findings, all of which had been implemented at the time of this audit.

6 201 EX/21.INF.2 page 3 LIST OF RECOMMENDATIONS Recommendation No. 1. The External Auditor recommends considering the transformation of the Regional Bureau for Education in Asia and the Pacific in Bangkok into a multisectoral regional office by exploring the various options available (Headquarters). Recommendation No. 2. The External Auditor recommends adapting the agreements with the Government of Thailand governing UNESCO s presence in Thailand, in particular the clauses on the Government s financial contributions to the Organization (Headquarters and Office). Recommendation No. 3. The External Auditor recommends the rapid establishment of a new programming tool for the Organization s action in countries in which it works and implementation of that tool in the three countries (Thailand, Lao People s Democratic Republic, Myanmar) under the direct responsibility of the Office (Headquarters and Office). Recommendation No. 4. The External Auditor recommends the implementation of an accountability system in the form of an annual review report or meeting with the Thailand National Commission for UNESCO (Office). Recommendation No. 5. The External Auditor recommends that a periodical activity report be drawn up on the Organization s action in Asia and the Pacific in order to improve UNESCO s visibility and accountability in the region (Office). Recommendation No. 6. The External Auditor recommends the establishment of an appropriate functional organizational chart, re-establishing a deputy director or assistant executive officer post, by establishing a managerial post for the Education Sector (ED) and placing managerial posts for the Natural Sciences (SC), Social and Human Sciences (SHS) and Communication and Information (CI) under one authority. Recommendation No. 7. The External Auditor recommends the implementation of an action plan to reduce the shortcomings in the internal oversight of key procedures. Recommendation No. 8. The External Auditor recommends the establishment of a regional resource mobilization strategy, in particular with private partners, which should become a quantified target for the next Director (Office). Recommendation No. 9. The External Auditor recommends the application of the procedure set out in the Human Resources Manual in cases where staff members remain in international Professional posts beyond the Standard Duration of Assignment (SDA) (Headquarters and Office). Recommendation No. 10. The External Auditor recommends that the Office improve its personnel file-keeping on the basis of recommendations made by the Bureau of Financial Management (BFM) (Office). Recommendation No. 11. The External Auditor recommends that the rules be clarified on exceptional authorization of the service of international staff members outside the country of their duty station (Headquarters). Recommendation No. 12. The External Auditor recommends that the transformation of the Yangon Antenna into a national office for Myanmar be studied and that the results of the study be submitted to the Executive Board (Headquarters). Recommendation No. 13. The External Auditor recommends the establishment of an internal working group to improve the overall performance of the Office in terms of project management (Office). Recommendation No. 14. The External Auditor recommends that the prior agreement of the External Auditor be requested, without exception, when project agreements that impose requirements on him are concluded, and that a registry of these commitments be kept (Headquarters).

7 201 EX/21.INF.2 page 4 AUDIT FINDINGS 1. Scope of action of the Office 1.1 Geographic framework of intervention of the Office 10. UNESCO has an important and long-standing presence in Asia and the Pacific (see Annex 1). 11. Since 2002, the Office has had a dual capacity within the framework of the three-tier approach that has driven the structure of the Organization s network since 2009 (with the exception of Africa). (a) As the specialized Regional Bureau for Education in Asia and the Pacific, 5 it coordinates the programming of budgetary resources and work plans, and provides expertise to the Organization s 48 Member States 6 and 14 offices (including six cluster offices) located in the region. Responsibilities of a regional bureau Regional Bureaux (or regional advisors) provide expertise to Member States in the region, and support to cluster and national offices, providing quality knowledge and technical input into programmes. They are also responsible for regional programmes in that particular sector, which are implemented through the cluster and national offices and drawn up by means of regional consultations. Regional bureaux are almost always located in a cluster office and as such benefit from staff in a variety of fields, but often have additional staff in their specific sector. In some cases, the regional bureau may operate as a network, with programme specialists located in more than one cluster office in the region. Staff with regional responsibilities, based in offices other than regional bureaux, act first and foremost as programme specialists and answer to the Director/Head of that office. Regional bureaux do not oversee the cluster and national offices in hierarchical terms. Source: Administrative Manual (1.7 UNESCO Field Offices) (b) As a cluster office, the Bangkok Office implements the Organization s programmes in the six countries in the Mekong region: Thailand, Myanmar, Lao People s Democratic Republic, Singapore, Viet Nam and Cambodia, the latter two countries having UNESCO national offices. Responsibilities of a cluster office Cluster Offices are the main platform of delivery for all UNESCO activities and are multidisciplinary in nature, ideally with each sector represented in the office. Their Directors have the authority to represent the Organization in a group (cluster) of Member States, except in those Member States where there is a national office (in such case, the Director/Head of the national office has the representational function). The Director of the cluster office, while often having a background in a particular field, mostly plays an executive role, implementing the programme through programme specialists covering the various sectors. This programme is the result of consultations with each government, national commission and other partners. National offices established within the cluster participate in the elaboration of that programme through a collegial approach between heads of offices. Source: Administrative Manual (1.7 UNESCO Field Offices) 5 6 The UNESCO Office in Jakarta is the Regional Bureau for Science in Asia and the Pacific. Including two Associate Members: Macao and Tokelau.

8 201 EX/21.INF.2 page On this basis, the UNESCO Office in Bangkok represents the Organization s largest item of expenditure in Asia and the Pacific and is its second largest field office after the UNESCO Office in Brasilia: Chart 1: Comparative budget of the Bangkok Office during the biennium Source: Document 199 EX/5 Part II (C) Sustainability of the network 4 March At the External Auditor s request, the Office provided a detailed estimate of the breakdown of its activities for each of the countries in the Asia and the Pacific region with reference to the Organization s main forms of action. 7 This useful work clearly shows that, while the Office undertakes at least one of these forms of action in the field of education in each of the region s countries, all the sectors represented in the Office are also active there because of specific mandates or functions: The Culture Sector is actively promoting specific standards (such as the 2005 Convention) in all the countries and works on capacity-building in some (Fiji, Mongolia, South Korea, Uzbekistan). The head of the Communication and Information Sector has regional responsibility for the Memory of the World programme, which she implements in the region through the Memory of the World Committee for Asia and Pacific (MOWCAP) in consultation with national and cluster offices. The head of the Social and Human Sciences Sector, who has the title of regional adviser, works on activities in the fields of standards, capacity-building, creative thinking and analytical work in all the countries of the Asia and the Pacific region; The Natural Sciences Sector, whose geographical coverage is smaller owing among other things to the existence of the regional bureau in Jakarta, reported work in the Republic of Korea. 14. In the cluster for which it is responsible, the Office s activity focuses on Myanmar and, secondarily, on Thailand and the Lao People s Democratic Republic. In accordance with the rules of the Organization, the UNESCO offices in Cambodia and Viet Nam carry out independent activities. At the same time, the regional bureau coordinates and funds certain activities in these two countries (e.g. shared histories, freedom of information), but there are no documents providing a consolidated view of the Organization s sectoral activities in each. However, this could be of 7 Standard-setting, capacity-building, advocacy and knowledge-sharing, creative thinking, analytical and knowledge work, and project implementation.

9 201 EX/21.INF.2 page 6 benefit, particularly with regard to donors, to raise the profile of the Organization s activities in Cambodia and Viet Nam and in the cluster. 15. The regional breakdown in the activity forecasts submitted to the General Conference was as follows: Table 1: Breakdown of UNESCO Bangkok activities in the Mekong cluster for the biennium (in United States dollars) Country Activities Regular budget Extrabudgetary projects Extrabudgetary resources Budget total South-East Asia 6 135, ,382,000 1,517,298 Bangkok cluster 3 65, , ,450 Lao People s Democratic Republic 1 15, , ,220 Myanmar 28 12,500,737 12,500,737 Singapore Thailand 1 38, ,158,208 2,197,188 (via national offices) Cambodia 1 15,000 15,000 Viet Nam 1 13,000 13,000 Total , ,689,615 16,943,893 Source: SISTER for 37 C/5 dated 13 September 2016 Table 2: Breakdown of UNESCO Bangkok activities in the Mekong cluster for the biennium (in United States dollars) Country Activities Regular budget Extrabudgetary projects Extrabudgetary resources Budget total South-East Asia 4 98, ,517,800 1,616,100 Bangkok cluster 5 130, , ,325 Lao People s Democratic Republic 2 32, ,290,176 1,322,176 Myanmar 1 13, ,386,083 13,399,083 Singapore Thailand 3 74, , ,708 (via national offices) Cambodia 2 27,635 27,635 Viet Nam 2 23,000 23,000 Total , ,959,437 17,307,027 Source: SISTER for 38 C/5 dated 13 September Although the General Conference, at its 36th session in October 2011, approved the field network reform, which had three objectives, 8 and without disregarding the significant share of the 8 (i) To enhance the quality and efficiency of programme delivery in Member States, (ii) to ensure a more flexible and visible presence at regional and country levels, and (iii) to improve coherence in the United Nations system. The reform was piloted in Africa.

10 201 EX/21.INF.2 page 7 Office s activities in the field of education or the principle of subsidiarity adopted in the relations between regional offices, cluster offices and national offices, it appears that the complexity of the geographical coverage and operational mandate of the Office clouds the visibility of its action and hinders its efficiency. In the lead-up to the review of the field network reform by the Executive Board in spring 2017 (201st session), it is therefore recommended that the transformation of the regional bureau into a multisectoral office for Asia and the Pacific be considered. 17. When considering the transformation, the following issues should be addressed: the first issue is whether the Office should maintain the same regional coverage: the concentration of funding and projects in Asia is apparent, and unity of action on the continent has advantages. However, the Organization must consider the existence of the regional bureau in Jakarta 9 covering science in the Asia and the Pacific region, which raises the question of how the activities of the other three sectors are to be distributed between these two regional bureaus; the second issue is whether the regional bureau and the national office for Thailand should stay combined: even though other organizations (such as UNICEF) have preferred separate structures, splitting them in this way does not seem advisable in terms of either cost savings or the relationship with the Government of Thailand; the third issue concerns the relationship between the regional bureau and the other national or multisectoral offices in the region: the External Auditor believes that the question should be raised not only in terms of the principle (subsidiarity) but, on top of the need for a consolidated picture of the Organization s work in the region at the very least, also with regard to the forms of action employed. While project implementation requires a local relationship, in Myanmar for example, other forms of action (advocacy, assessment, etc.) do not call for the same independence at the local level and can even be provided from Headquarters. The Organization s regional coverage may need to be rethought (see Recommendation No. 1 of the External Auditor s report on the Hanoi Office, dated 21 October 2015). Recommendation No. 1. The External Auditor recommends considering the transformation of the Regional Bureau for Education in Asia and the Pacific in Bangkok into a multisectoral regional office by exploring the various options available. 1.2 Conditions for UNESCO s presence in Thailand 18. The Bangkok Regional Bureau was established in 1961 on the basis of two texts: the technical assistance agreement between the Government of Thailand and several United Nations agencies (including UNESCO) signed on 4 June 1960, which made provision for the government to cover these agencies establishment costs (local staff, premises and locally produced fixtures and fittings, utilities, domestic travel costs, daily subsistence allowance (DSA) for visiting experts (50%)) and granted diplomatic privileges and immunities to the activities of these organizations in the country; the agreement between UNESCO and the Government of Thailand signed on 6 September 1961 was originally confined to the Office s educational role, granting provisional use of premises free of charge and Government payment of charges for major repairs, together with diplomatic privileges and immunities. This agreement was supplemented by an exchange of letters between UNESCO and the Government of 9 An audit of the activities of the Regional Bureau for Science in Jakarta is outside the scope of this audit.

11 201 EX/21.INF.2 page 8 Thailand dated 26 February 1962, making the host government responsible for the Office s building operating costs and the cost of certain local staff While the Government of Thailand makes a significant contribution to the Organization through the provision of premises and payment of major repair work on them, the other contributions originally foreseen are now: either symbolic, since neither the cash contribution of THB 184, per year 12 nor the annual grant of THB 25,000 for electricity costs, the amounts of which were determined in a 1966 agreement between the Office and the Government of Thailand, have been updated since, making both contributions together worth $6,447 in 2014, $6,475 in 2015 and $5,866 in 2016; or non-existent, in the case of payment of costs for local staff or expenses for visiting experts on mission in Thailand. 20. It is for the Organization to decide whether the contributions provided for in the agreements should be claimed or abolished because the financial contributions have become symbolic. In any event, the bilateral commitments and practices must be brought into line. 21. Furthermore, the above-mentioned 1960, 1961 and 1962 bilateral agreements with the Government of Thailand are confined to UNESCO s educational role. They ought therefore to be adjusted to cover the Office s other sectoral roles. 13 Recommendation No. 2. The External Auditor recommends adapting the agreements with the Government of Thailand governing UNESCO s presence in Thailand, in particular the clauses on the Government s financial contributions to the Organization. 1.3 Strategic framework for the Office 22. The Office has not drawn up a comprehensive strategy document covering the region, given the nature of its mandate. It has, however, in a timely manner prepared a document entitled UNESCO Asia and Pacific Regional Bureau s Education Support Strategy , succeeding a comparable document covering the period and endorsed in The document, which is limited to the Education Sector, contains the Sector s three strategic objectives 14 as set out in the Organization s Medium-Term Strategy for (document 37 C/4), approved in 2014 by the General Conference broken down into four thematic priorities, each with an expected outcome, and applies them to the region. It does not, however, contain quantified or measureable targets. 23. No analysis of the strategy s implementation has been conducted during the past two years. A mid-term review of the Education Support Strategy (ESS) is planned for 2017, which may seem insufficient to ensure the regular monitoring referred to by the Director of the Bangkok Office in his reply to the internal control self-assessment questionnaire in [T]o help defray the costs of certain local staff at rates already agreed upon [ ]: one driver (450 THB), one junior documentation clerk (450 THB), two typists (1 200 THB), [ ] two janitors paid by the ministry. Thai baht. In theory this amount consists of THB 37,000 to cover the costs of the chief of mission and THB 147,600 for the costs of the regional bureau. Through the National Commission for UNESCO, which it houses, the Thai Ministry of Education is in fact responsible for coordinating the other themes that the Office covers in the country. 1. Supporting Member States to develop education systems to foster high quality and inclusive lifelong learning for all; 2. Empowering learners to be creative and responsible global citizens; 3. Advancing Education for All (EFA) and shaping the future international education agenda.

12 201 EX/21.INF.2 page As stated by UNESCO on its official website, 15 the Organization s action in the field is usually set out in UNESCO country programming documents, which: (i) (ii) (iii) (iv) describe the Organization s main activities in the country concerned; provide a perspective on medium-term projects; promote cooperation with partners (other United Nations agencies, public and private donors); raise the public profile of the Organization s activities. 25. Thus the Office s work is supposed to be based on a certain number of UNESCO Country Programming Documents (UCPDs). Table 3: UCPDs prepared by the cluster office Country Period Date of approval Thailand Myanmar Lao People s Democratic Republic Singapore Viet Nam Cambodia NB: The UCPDs for Viet Nam and Cambodia are the responsibility of the UNESCO national offices in those countries. Source: External Auditor from Office and public documents. 26. The Office had direct responsibility for the preparation of UCPDs for Thailand, the Lao People s Democratic Republic and Myanmar. The document for Thailand provides an example of in-depth work that includes a total of eight outcomes with their corresponding expected results and 37 measurable performance indicators for the four main areas of action. Despite its centrality, the document was not the subject of a specific evaluation by the Office and did not appear to be clearly identified by the Thailand National Commission for UNESCO, interviewed by the auditors. 27. According to one of the objectives set for the Director for the previous biennium listed in his overall performance report, he was supposed to have prepared and updated the UCPDs (5. UCPDs prepared and updated). The three UCPDs directly concerning the Office have not been updated, however, despite their expiry in Thus no action was taken on the Director s request at the (SSM) internal meeting on 11 February 2015 for them to be updated. The Office stated in its January 2016 internal control self-assessment questionnaire 16 that preparation of new UCPDs is under discussion and argued that the continuing debate about these documents in the Bureau of Strategic Planning (BSP) since February 2016 justified the status quo. 28. Following this reflection on the status of these UNESCO Country Programming Documents, which has already led Headquarters (Division of Field Support and Coordination FSC) to elicit the views of the field offices, the update should no longer be postponed. Country offices should have clear guidelines and an appropriate programming framework should be restored and, if necessary, simplified BSP Country Programming page: (accessed 19/9/2016). ICSAQ.

13 201 EX/21.INF.2 page 10 Recommendation No. 3. The External Auditor recommends the rapid establishment of a new programming tool for the Organization s action in countries in which it works and implementation of that tool in the three countries (Thailand, Lao People s Democratic Republic, Myanmar) under the direct responsibility of the Office. 1.4 Relations with National Commissions for UNESCO 29. The National Commissions for UNESCO of Thailand, the Lao People s Democratic Republic and Myanmar, countries in which the Office conducts permanent activities, are consulted on their priorities in preparation for the biennium. The Office does not, however, draw up an annual report for them. 30. Over the period audited, six of these National Commissions were awarded funding from the Office for amounts under $35,000, 17 except for the Lao National Commission, which received a total of $162,502. These amounts have been matched to specific services. Over half the disbursements (51%) were made by the Natural Sciences Sector to a broad range of bodies, through contracts, including with the Thai Business Incubators and Science Parks Association ($9,571). The SHS Sector spent $20,000 in the form of two payments in 2014 and 2015 to the New Zealand National Commission for UNESCO (Ministry of Education). 31. The Thailand National Commission for UNESCO, housed in the Ministry of Education, was interviewed by the auditors. Reflecting the country s strong commitment in the service of the Organization, it coordinates the work of the various departments concerned by UNESCO s activities. Despite the close relationship between the Commission and the Bangkok Office, no annual general review of the situation is made at an assessment and planning meeting. Recommendation No. 4. The External Auditor recommends the implementation of an accountability system in the form of an annual review report or meeting with the Thailand National Commission for UNESCO. 1.5 Consistency of action with United Nations agencies 32. The Bangkok Office is a fairly regular, but not constant, attendee at the near-monthly meetings of the United Nations Country Team (UNCT) in Thailand, where it is represented alternately by members of its international staff but seldom by its Director. 33. In Thailand, the United Nations bases its action on a document called the United Nations Partnership Framework (UNPAF) Thailand , which was signed in April 2011, but whose implementation (UNPAF management plan) has been complicated by the patchy involvement of the joint teams set up to this end. The document has been the subject of UNCT discussion for the past two years with a view to preparing a new United Nations common country assessment (CCA) and a new UNPAF for The latter document, originally meant to be adopted in spring 2016, had still not been adopted at the time of the audit. 34. The Office is also actively involved, through the head of its Administration Unit, in the Operations Management Team (OMT), of which it was vice-chair from 2012 to This body, which meets regularly, is used to address subjects that concern only Thailand (diplomatic privileges, local pay scales, security situation, etc.). 17 $8,000 for Pakistan, $10,000 for China, $20,000 for the Philippines, $25,000 for New Zealand and $34,700 for Kyrgyzstan.

14 201 EX/21.INF.2 page MANAGEMENT OF THE OFFICE 2.1 Management under the responsibility of the Director of the Office 35. Since January 2009 the Office has been supervised by Mr Kim Gwang-Jo, grade D-2, who has the title, according to his post description, of Director of the Regional Bureau for Education and UNESCO Representative in Thailand, Myanmar and the Lao People s Democratic Republic, 18 which does not fully cover his actual responsibilities, since he is also the Organization s representative in Singapore. 36. Having exercised important responsibilities in the education system of his home country but not having held any posts in UNESCO before, Mr Kim had occupied his position for seven years and eight months at the time of the audit. He is due to retire on 31 August 2017 and could leave his position in Bangkok as early as the start of the year owing to his leave entitlement. 37. As already observed in other cases in the Office (see of this report), the Director s term has considerably exceeded the Organization s standard duration of assignment for Thailand, which is five years for a Category A country. According to the Human Resources Manual, 19 holding a post for longer than five years (deferment of assignment) requires a decision of the Director- General, taken via the Director of Human Resources Management (DIR/HRM), which must be explicitly reasoned and may not exceed an additional duration of two years. 38. Mr Kim received an overall performance report for the previous biennium from Mr Qian Tang, ADG/ED, dated 27 June 2016, but has not had a second-level assessment that could have reflected the range of his duties. 39. According to his performance report, the Director is supposed to divide his time between a number of activities: Table 4: Breakdown of the activity of the Director of the Bangkok Office Activity Proportion Management of the Regional Bureau for Education 35% Management of Education Sector programmes in Asia and the Pacific 20% Programme management for sectors other than Education 5% UNCT participation in three countries (Thailand, Myanmar and Lao People s Democratic Republic) UNESCO representation in Thailand, Myanmar and the Lao People s Democratic Republic 10% Office management 20% Other activities assigned by the DG 5% Total 105% NB: Total of 105% in the post description. Source: Post description of the Office Director dated 3 December According to this, the Director is supposed to spend over half his time (55%) on educationrelated activity in Asia and the Pacific but only 5% and 20% on other sectors programmes and Office management respectively. 10% Letter of appointment from the Bureau of Human Resources Management (HRM) dated 12 November 2008 and the decision in DG/Note/08/45 of 10 December 2008, taken on the basis of a job description dating from 3 December Part 2 (5.11 Geographical mobility, F. Implementation).

15 201 EX/21.INF.2 page Despite the scale of its activities and an active communication policy on its website, the Office does not prepare an annual general activity report, unlike the national offices in Hanoi and Phnom Penh, 20 nor does it report on its activities in the field of education. According to its Director, all the activities implemented by the Office can be found on the official website of the UNESCO Office in Bangkok. In addition, the Office produces publications. This practice, the utility of which was nevertheless mentioned by the Director internally, 21 contrasts with the good practice observed in other field offices and should be encouraged in order to improve the visibility of the Office s work for Member States and current and potential donors. 42. The prospect of a trial consolidated report for Asia and the Pacific, referred to by the Director at a meeting of heads of field offices at Headquarters in March 2016, is thus particularly welcome. According to the Office, the first report might cover the biennium and be published in early Recommendation No. 5. The External Auditor recommends that a periodical activity report be drawn up on the Organization s action in Asia and the Pacific in order to improve UNESCO s visibility and accountability in the region. 2.2 Office structure 43. Since its last reorganization in January 2016, 22 the Office is structured around seven main entities: An Executive Office, established in January 2016, which covers diverse tasks, some of which were previously carried out by the Director s Office: coordination of education programmes in Asia and the Pacific, partnerships and external relations, support for the activities of the cluster, management of the publications and the Office s website 23 and management of the local information technology; Five sectoral entities (Education (ED), Culture (CLT), Social and Human Sciences (SHS), Natural Sciences (SC), and Communication and Information (CI)), the main one being the Education Sector, which has been divided into two sections since January 2016 (Educational Innovation and Skills Development (EISD) and Inclusive Quality Education (IQE)), each covering a range of the Sector s specialized areas; A finance and administration sector. 44. The following are also attached to the Office and come under the authority of its Director: An Assessment, Information Systems, Monitoring and Statistics Unit 24 reporting directly to the UIS in Montreal and consisting of five people, including a manager seconded on the basis of annual contracts since 2013 and a full-time secretary; An IOC/WESTPAC Office reporting to the Intergovernmental Oceanographic Commission (IOC), which also comprises five people paid by the Organization (including the manager) and has its own premises in the Ministry of Natural Resources. 45. It should be noted that while the AIMS Unit has produced its own activity report, 25 IOC/WESTPAC, the other body attached to the Office, has not Report on the Implementation of the Memorandum of Understanding between Viet Nam and UNESCO for the 2010 to 2016 period (2016); Report : Phnom Penh Office (2015). Senior staff meeting (SSM) of 4 September Memo DIR GJK/012 of 18 December Information and Knowledge Management. AIMS. UIS-AIMS Regional Activities Report

16 201 EX/21.INF.2 page The Office also has an antenna in Yangon (Myanmar) and, until May 2014, made use of an antenna in Vientiane (Lao People s Democratic Republic), for which it was responsible. 47. Although the Office s organization has been simplified, it remains complex and does not allow for optimum efficiency: since the post was abolished in 2013, it no longer has a Deputy Director, 26 yet the Director, owing to the nature of his duties, is frequently absent from Bangkok; within the Executive Office, Education Sector functions are mixed with cross-cutting functions for all of the Office s activities; it maintains a dual and artificial distribution of activities within the Education Sector; it maintains small entities such as those working in the fields of CI, SC and SHS, which reduces the potential for synergies in direct project support. 48. It therefore appears advisable and possible to aim for an organization that, at constant budget, would offer greater coherence for the Office s action. This would include: the creation of a post for a Deputy Director or a head of the Executive Office by transforming a P-5 post (necessary for the coherence of day-to-day management of the Office s activities, particularly during the absence of the Director) and the transferral of that post from the Education Sector to BSP; the creation of a Chief (P-5) for the Education Sector by merging the two sections (not by adding an additional level) 27 to ensure the coherence of the activities of the units working in that field; the pooling of the small entities dealing with matters relating to the SC, SHS and CI sectors into one unit under one authority, given the volume of their activities and extrabudgetary resources and in order to pool their administrative resources The External Auditor notes the reluctance of Headquarters to reorganize the UNESCO Office in Bangkok on the grounds that a Deputy Director who would report to the Education Sector would not have authority over the other sectors. He considers, however, that the allocation of posts to the sectors should not diminish leadership capacity over a field office and invites the Directorate to find a pragmatic solution The Deputy Director was specifically responsible for monitoring cluster activities. The number of Professional staff allocated to the Office s Education Sector will depend on the general focus (sectoral or multisectoral) assigned to the Office and the estimated future volume of activities of the Sector. This option might be reconsidered if there is a significant increase in the activity of these three sectors in the region or a change in the relationship between the Regional Bureau and the region s field offices.

17 201 EX/21.INF.2 page 14 Chart 2: Proposed simplification of the Office s organization chart Current organization chart: Director (D-2) IOC/ WESTPAC UIS-AIMS EO (P-4) Antenna or National Office in Yangon ADM (P-4) IQE (P-5) EISD (P-5) CLT (P-4) SHS (P-4) CI (P-4) SC (P-4) Proposed organization chart: Director (D-2) IOC/ WESTPAC Deputy Director or Chief of Executive Office (P-5) UIS-AIMS Antenna or National Office in Yangon ADM (P-4) EDU (P-5) CLT (P-4) SHS/SC/CI (P-4) Recommendation No. 6. The External Auditor recommends the establishment of an appropriate functional organizational chart, re-establishing a deputy director or assistant executive officer post, by establishing a managerial post for the Education Sector (ED) and placing managerial posts for the Natural Sciences (SC), Social and Human Sciences (SHS) and Communication and Information (CI) under one authority.

18 201 EX/21.INF.2 page Office management 50. The Director calls fairly regular meetings of the senior management team, which consists of the heads of unit and the Director s secretary. These senior staff meetings (SSMs) are recorded in clear and detailed minutes. Eight meetings took place in 2014, eight in 2015 and four in 2016 up to the time of the audit. 51. A useful matrix of staff responsibilities was produced in to clarify the work of each permanent member of the Office. It was updated by the Office for the audit. 52. The most recent staff retreat took place in August It seems that meetings of all the staff are fairly sporadic. According to the head of the Administration Unit, they are held only quarterly or, if this is not possible, even half-yearly (as was the case when the Office was transferred) and are not recorded in formal minutes. Thus a general staff meeting was organized in February 2016 without any minutes having been taken. 2.4 Delegation of responsibilities 53. For administrative and financial responsibilities the Director uses delegations of authority that comply with the rules, are regularly updated and ensure segregation of duties. As at 23 June 2016 there were six approving officers, seven certifying officers (including two BFM staff) and 14 supervisors. 54. Director is punctilious in delegating his functions to a member of the Office s senior management during his frequent travel abroad Internal control 55. Although one of the objectives assigned to the Director relates to risk management, 31 the Office says that it has not established its own internal control framework or specific rules and principles in this area. 32 However, in accordance with the principles of internal oversight set out in the Administrative Manual, 33 in 2014 and 2015 the Office replied to the self-assessment questionnaires, and in January 2015 and January 2016 the Director signed the annual attestation on internal control provided for in Article 8.2 of the Financial Rules and the summary stating that the seven main processes were globally under control. 56. The detailed questionnaire nevertheless shows that while the majority of the objectives were achieved all of the time (rating 1 ), some of them were only achieved most of the time (rating 2 ): Table 5: Objectives rated 2 in internal control self-assessment questionnaire Ref Monitoring progress Global monitoring and reporting mechanism 2.7 Monitoring and evaluation Selective evaluation of XB Projects Selective evaluation of XB Projects Results-based reporting to be improved Results-based reporting to be improved SSM of 10 July A total of 111 days of absence on mission in 2015, i.e. one working day out of two. Key expected result 1: Ensure leadership and management in the programme areas: 8. Risk management applied and risk register developed for the office (overall performance review 1/1/ /12/2015). The Office has said, however, that it has begun to draw up risk registers for some of its basic units and has been including risk analysis in its proposals for new projects since September Chapter 3.4 Internal control policy framework.

19 201 EX/21.INF.2 page Planning process Procurement planning Procurement planning _ 4.2 Supplier selection procedure 4.3 Waivers of competitive bidding for procurement 4.7 Acceptance of deliverables 6.1 Travel planning process Planning for services from Consultants/Contractors/Implementing Partners Acceptance of deliverables by programme specialists Planning for services from Consultants/Contractors/Implementing Partners Use of waivers for competitive bidding Justification for single source selection for procurement Documentation of the process of waiving competitive bidding Assessment of the cost reasonableness of contracts with waivers Acceptance of deliverables by programme specialists Proper advance booking of tickets Source: Internal control self-assessment questionnaires of 2014 and With the exception of a risk inventory, established in August 2016, which deals only with the matter of reserving airline tickets and procurement planning, the Office has not adopted and implemented a comprehensive action plan to address the identified shortcomings. Recommendation No. 7. The External Auditor recommends the implementation of an action plan to reduce the shortcomings in the internal oversight of key procedures. 2.6 Standard of administrative and financial support 58. Since 2012 the Finance and Administration Unit has been headed by Ms Suzanne Buttkus, grade P-4, 34 who had already performed comparable duties in the regional bureau in Nairobi. This unit, for which there are no organization documents, held a staff retreat in July 2012 to clarify its approach. The permanent staff number about ten (including one L6, two L5s and one L4 35 ) and manage a budget of $37 million (regular budget and extrabudgetary resources), $11 million of which is for the Myanmar Antenna. After abolishing three posts (two L6s and one L1) during the 36 C/5 biennium, it has seen four further posts abolished since early 2014, offset by one post transfer (L5), 36 and has had to rely on temporary staff, who are less stable by definition. 59. With support from the Director, this unit has genuine authority, including over project teams, to ensure that practices comply with standard procedures. It has recently begun to draw up standard operational procedures (beginning with two for secondments and for experts on missions), and this should be encouraged. It is in the process of automating a number of administrative procedures (check-out process, issuance of air tickets for participants, cost recovery), which should be completed by the end of 2016 and which seem to constitute good practice that ought to be generalized P = Professional. L posts are not funded from the regular budget. A net loss of three posts: L5 Administrative Assistant, L3 Mail and Administrative Clerk and L2 Driver.

20 201 EX/21.INF.2 page RESOURCES OF THE OFFICE 3.1 Moving the Office back 60. Since 1991 the Office in Bangkok has been housed at 920, Sukhumvit Road in a 4,500 m² five-storey building with gardens. Part of the building is shared with the South-East Asian Ministers of Education Organization, 37 which occupies the fourth floor. The building belongs to the Government of Thailand, which has granted UNESCO its use free of charge under the agreements signed in 1961 and The Office s estimated value of this lease is $2,138,092 a year, i.e. less than $40/month per m². 61. Given the wear and tear on the building (leaks in the roof particularly), in 2013 UNESCO asked the owner to undertake its renovation. The Government of Thailand agreed to fund the entirety of the work, totalling THB 70 million ($2.3 million). This included waterproofing of the building, new electrical wiring and provision of earthquake protection. The work, which was carried out directly by the Government of Thailand, took place from August 2014 (start of work) to November 2015 (return to building). Estimates and deadlines were respected. Delivery was highquality and no complaints were lodged. The Office is therefore now housed in a functional building with spacious and properly adapted facilities. 62. The cost of the operation for the Office thus related mainly to the provisional transfer of its staff (removal, renting of 25 storage containers, etc.) to several floors of the Science Centre for Education, a building close to the Office s premises and belonging to the Government of Thailand. The operation was initially costed at $60,000 (SSM of 24 April 2014) and then at $140,000 (SSM of 10 July 2015) but eventually cost $348,800, which was taken out of the budget for running costs and the Office s funds-in-trust overhead costs account (FITOCA), after the latter had received a one-off allotment of $50,000 from Headquarters. 3.2 Budgets Resources of the Office 63. The total resources budgeted for the regional bureau in Bangkok came to $20.8 million for the biennium. At the time of the audit, they were budgeted at $18.7 million for the biennium, based on $4.7 million of extrabudgetary resources already approved and confirmed by the Office for This figure is thus the low estimate for extrabudgetary resources. These resources should naturally grow in 2017, on the basis of projects currently still in the pipeline, under negotiation or being investigated. A reasonable estimate by the Office for these pipeline projects comes to approximately $9 million. It matches the total multi-year allocation for the projects concerned. Since some three years may elapse between initial contacts with a donor and full completion of the funded project, the additional budget likely to be allocated for 2017 may be estimated at $3 million, giving a high estimate of $7.7 million. Since the audit took place in mid- September 2016, the mean of the two estimates for 2017 extrabudgetary resources, namely $6.2 million, has been taken to compare the two biennia. Table 6: Budget of the UNESCO Office in Bangkok (in thousands of United States dollars) Biennium Breakdown Biennium Breakdown Budget variation Budget * Expenditure ** Budget 2014* Expenditure 2014 Budget 2015* Expenditure 2015 Budget *** Budget 2016* Expenditure 30/6/16** Budget 2017** / Total resources 1. Regular budget 20,845 13,332 8,318 4,855 12,527 8,477 18,733 11,522 5,540 7,211-10% 3,646 3,646 1,331 1,331 2,315 2,315 2,707 1, ,011-26% 37 SEAMEO.

21 201 EX/21.INF.2 page 18 Relative share 17% 27% 16% 27% 18% 27% 14% 15% 15% 14% Additional appropriations FYI: International salaries 2. Extrabudgetary resources 1,218 1, ,253 7,523 4,040 3,830 4,213 3,692 4,004 1,798 17,199 9,686 6,987 3,524 10,212 6,162 16,026 9,826 4,736 6,200-7% Relative share 83% 73% 84% 73% 82% 73% 86% 85% 85% 86% FYI: For your information, salaries paid by Headquarters ( Budget : based on standard staff costs; Expenditure : salaries actually committed, according to the payroll managed by BFM. * Budget: allotment current year (fund centre Bangkok, excluding global projects) ** Expenditure: Expenditure current year + unliquidated obligations current year + unliquidated obligations of the previous year (excl. PSC) *** Estimates as at 16/9/16: allotments for year 2017 not yet fully issued (RP) or validated (EXB) Source: Bangkok Office 64. On the basis of these estimates (notified to the Office and considered realistic by the latter), the budget seems to drop 10% from one biennium to the next, the decline in the regular budget (26%) being mitigated by a smaller than expected fall in extrabudgetary resources (7%). It should be noted in passing that the latter depend to a great extent on the planned activity of the Myanmar Antenna, whose current projects (REL) alone represent 32% of all budget allocations for the Bangkok Office s portfolio of current projects. 65. In 2016, extrabudgetary resources accounted for 85% of the Bangkok Office s funding, as against 83% in the biennium. To gain a realistic view of operating costs, the Government of Thailand s annual contribution in kind of $2.1 million for the Office s building should of course be added to this apparent budget. Thus the full cost may be estimated at slightly over $23 million for the current biennium. 66. The regular budget (regular programme including additional appropriations) allocated for operating expenses remains steady at $805,000 (see below). The drop in the regular budget is explained solely by the reduction, in response to the Organization s general financial difficulties, in the part of this budget earmarked for programme funding. If the operating budget seems to be $57,000 lower than the previous biennium, this is mainly owing to an additional allocation of $50,000 during the 37 C/5 biennium to make up the financing for transfer of the Office. 67. As sole coordinator for the regional mission of the Office in Bangkok, the Education Sector has absorbed 65% of its total resources for the current biennium. It has been particularly affected by the reduction in the Office s regular resources, having seen a 48% drop in its own budget ($968,000). The Sector s new EISD 38 section generally benefited by the preservation of the regular budget for the Asia-Pacific Programme of Educational Innovation for Development (APEID) in the biennium. By contrast, the new Section for Inclusive Quality Education (IQE) was allotted only $366,000 for , i.e. $960,000 less than the budgets for the Asia-Pacific Programme of Education for All (APPEAL) and EPR 39 in the previous biennium. 68. The Office in Bangkok has some modest monetary resources in addition (voluntary contributions from companies, foundations, etc.): in they accounted for 5% of its total resources and 9% of its expenditure. 69. At the time of the audit, the overall level of estimated extrabudgetary resources for the current biennium was $1.1 million lower than in the previous biennium. The two principal decreases were in the Education Sector and the Culture Sector, totalling $1.1 million and $1.2 million respectively Educational Innovation and Skills Development. EPR: Education Policy and Reform. In 2015 three sections were merged, and APPEAL and EPR no longer exist separately.

22 201 EX/21.INF.2 page 19 Chart 3: Evolution of total financial resources (regular budget and extrabudgetary resources) by sector (in thousands of United States dollars) Estimates 2017 as at 16 September Source: Bangkok Office 70. Conversely, the Communication and Information Sector saw its extrabudgetary resources triple to $1.6 million, proving its dynamism. The Social and Human Sciences Sector (SHS) has received only little by way of extrabudgetary funding since It nevertheless runs two projects eligible for MFIT 40 funding, in partnership with the Education Sector and the UNESCO Office in Jakarta, amounting to a total of $174,000. It funds most of its activity from its regular budget, which has risen by 9% ($24,000) in comparison with the previous biennium. Table 7: Income and expenditure (regular budget (RB) and extrabudgetary resources (EXB)) by sector (excluding overarching projects) (in thousands of United States dollars) Biennium Breakdown Biennium Breakdown Budget variation Budget * Expenditure ** Budget 2014* Expenditure 2014 Budget 2015* Expenditure 2015 Budget *** Budget 2016* Expenditure 30/6/16** Budget 2017** / Total 20,845 13,332 8,318 4,855 12,527 8,477 18,733 11,522 5,540 7,211-10% Operating costs % Relative share 4% 6% 4% 7% 4% 6% 4% 3% 4% 6% ED 14,223 8,623 5,786 2,907 8,437 5,716 12,155 7,468 3,902 4,687-15% Relative share 68% 65% 70% 60% 67% 67% 65% 65% 70% 65% RB 2,031 2, ,279 1,279 1, % EXB 12,192 6,592 5,034 2,155 7,158 4,437 11,092 6,717 3,581 4,375-9% CLT 4,335 2,841 1,711 1,242 2,624 1,599 3,017 2,007 1,059 1,010-30% Relative share 21% 21% 21% 26% 21% 19% 16% 17% 19% 14% RB % EXB 4,110 2,616 1,625 1,156 2,485 1,460 2,831 1, % SC % Relative share 2% 2% 3% 4% 2% 1% 3% 3% 1% 4% RB % EXB % 40 Malaysian Funds-in-Trust.

23 201 EX/21.INF.2 page 20 CI ,817 1, % Relative share 3% 3% 2% 2% 4% 4% 10% 10% 4% 10% RB % EXB , % SHS % Relative share 1% 2% 1% 1% 2% 2% 2% 2% 1% 1% RB % EXB*** * Expenditure: expenditure current year + unliquidated obligations current year + unliquidated obligations of the previous year (excl. PSC) ** Budget 2017: Estimates as at 16/9/16 *** Excluding outsourced MFIT projects (see above) Source: Bangkok Office Chart 4: Breakdown of resources (regular budget and extrabudgetary resources) by sector for the biennium 71. In 2016, extrabudgetary resources accounted for 85% of the Office s expenditure, as against 73% over the previous biennium. This predominance, combined with the expected drop in funding for the present biennium, makes finding fresh, alternative extrabudgetary resources a strategic challenge for the Office in Bangkok in order to ensure long-term funding for its activities Office expenditure 72. Office expenditure is split mainly between the Education Sector and the Culture Sector, which concentrate 89% of the whole (70% and 19% respectively). Operating costs (administration and security) accounted for 6% of expenditure in the biennium. 73. The budget to fund running costs (excluding security and administrative support for UIS staff) was $637,109 for the biennium and $575,360 for the biennium. The difference between these two allotments is mainly the $50,000 supplement paid to cover the Office s transfer costs during the complete renovation of the building that it occupied. The cost of the renovation work, totalling $2.3 million, was met in full by the Government of Thailand, while the Office s operating budget covered all the other expenses: removal, temporary storage, replacement of furniture, maintenance and security. The final cost of the operation for the Office was $348,800, following an original estimate of $60,000 in The main items of expenditure were furnishing of the renovated building ($193,224) and the temporary transfer to the premises of the Science Centre for Education adjacent to UNESCO ($108,441).

24 201 EX/21.INF.2 page The sums deposited in the Office s funds-in-trust overhead costs account (FITOCA) amounted to $559,142 over the period. The Myanmar Antenna is the main source of this funding (37% of the total), which has prompted its head to ask that the funds generated by its work should be returned to it ( fair return ) to help fund its operation. The Office uses some 80% of these funds to pay for temporary service contracts to support its programmes. It also drew on them in 2014, for a sum of $18,826, to finance some building costs associated with renovation of the premises, and some maintenance costs. Table 8: Use of FITOCA by the Bangkok Office (in thousands of United States dollars) FITOCA as at 31/8/2016 Resources Expenditure Service contracts (wages and social security contributions) Construction and repair costs 10% 70% 86% 88% Purchase of equipment 15% 6% 2% Consultants for the secretariat and EM 5% 3% 3% Other costs (travel expenses, DSA, small equipment ) 0% 5% 7% Source: External Auditor, based on data from the Bangkok Office. 75. The annual rate of utilization of these supplementary resources is routinely 100%. 3.3 Management of the Office s assets and procurement 76. The equipment inventory for the Office in Bangkok is properly kept and up to date. The register includes both the serial numbers of items of equipment and the corresponding internal inventory references. The presence and location of assets was checked from a number of references. All the equipment was swiftly located and identified. A reverse spot check, taking various items of equipment available on the premises, was also successfully completed. 77. By contrast, on several occasions items of equipment did not have a label with the internal inventory number attributed by the Office. Although there was no doubt about the identity of these items owing to their serial numbers, the latter numbers are often very long and may lead to confusion where several identical items (such as flat-screen televisions) are concerned, potentially complicating their identification. It would be advisable to review the entire inventory to check and, where necessary, update the labelling of the specific inventory numbers. 78. Over the period audited, only the sale of one Office vehicle (Mercedes C 200 bought in 2009) in February 2015 necessitated a special procedure in the form of a public auction, conducted in accordance with the rules. Since the Government of Thailand allows United Nations agencies to import goods duty-free, some goods, such as BMW and Mercedes vehicles, can be sold after five years at a price very similar to their duty-free acquisition cost. The Office would therefore be well advised to replace such vehicles after five years to ensure minimal depreciation of their market value Procurement 79. Procurement procedures are known and observed by staff. A specific programme is drawn up by the Finance and Administration Unit for each biennium, in consultation with the head of the Information Technology Unit (IT). For the two biennia in question, these investment plans

25 201 EX/21.INF.2 page 22 averaged $71,850. The main item of expenditure is capital spending on or replacement of computer equipment, averaging $24,000 per biennium. 80. However, this planning is confined to operating costs managed by the Administration Unit and does not cover the whole of the Office in Bangkok. The Office itself acknowledges this in paragraph 4.1. of the internal control self-assessment questionnaires that it completed in 2014 and 2015, stating that there was no integrated procurement plan for equipment in the Office, since the Administration Unit had its own plan, while project officers made their purchases with no coordination. 81. Since January 2014 no service contracts have had to be referred to the Contract Committee at Headquarters because of the amount involved. 82. Over this period, the Office awarded three contracts exceeding the $50,000 threshold (for a total amount of $420,333), which thus, under the rules of the Administrative Manual (Item ), required a competitive bidding procedure under the authority of the Office s Director (Chapter 10.2, para. 4 of the Manual). These three contracts all concerned intellectual services for education projects in Myanmar. They were drawn up by the head of the Myanmar Antenna, checked by the Administration Unit and approved by the Director of the Office. Table 9: Contracts awarded by the Office after competitive bidding in 2014 and 2016 (in United States dollars) Contracts worth at least $50,000 (official invitation to tender). Period: 1 January June 2016 Contract start Contract end Amount No SAP No. Vendor Solicitation method date date USD THB /2/ /3/ , Request for proposal /2/ /3/ , Request for proposal /11/ /2/ , Request for proposal Source: Bangkok Office 83. Examination of the contract documents showed the following: (a) ICT for Education: Mobile Broadband in Myanmar contract awarded in January 2016 to Chungdahm Learning for $149,280 A request for proposals for this educational assistance project in Myanmar was issued by the Yangon Antenna and produced four replies. The balance between technical and financial requirements laid down by UNESCO is based on a 1,000-point scale consisting of 700 points for technical requirements and 300 points for financial requirements (which may in itself seem out of balance, since it lessens the importance of the cost factor in overall evaluation of proposals). As the proposal evaluation shows (evaluation grid of 25 January 2016), the proposal considered most attractive from the technical point of view was that of Chungdahm Learning, which scored 581 out of 700. The other three proposals were not selected because they failed to meet the maximum implementation periods allowed by UNESCO. At $149,280, the Chungdahm proposal was clearly calculated to fall below the $150,000 ceiling and avoid referral to the Contract Committee. In this particular context, where it was the only proposal available, it is regrettable that there was not at the very least an attempt to negotiate directly with the company to bring down the price. (b) Strengthening of Pre-Service Teacher Education in Myanmar (STEM) contract awarded in November 2014 to Mott MacDonald Ltd for $143,093 This educational project gave rise to a request for proposals. Ten companies replied. As rightly noted by the head of the Administration Unit and confirmed by BFM ( dated 10 November 2014), the procedure required by the rules for this formal method of solicitation (Administrative

26 201 EX/21.INF.2 page 23 Manual, Appendix 10.2A Procurement Guide) was not observed, which should have led to its being repeated. Given the project s urgency and the expectations of the Australian financer, the Director nevertheless awarded the contract to Mott MacDonald, which was considered the most technically competent company. (c) Empowering Women and Girls through Mobile Technology in Myanmar contract awarded in January 2016 to World Mosaic for $127,950 This third education project in Myanmar entailed a request for proposals but only one was received, from World Mosaic, to which company the contract was awarded for a period of two months. The summary evaluation report, signed jointly by the local commission consisting of three people (including the head of the Antenna) on 25 January 2016, did not indicate that any negotiation had taken place with the sole bidder to bring down the price, failing any alternative proposals (evaluation grid financial proposal). 84. In addition, four contracts exceeding $50,000 were covered by waivers from the normal competitive bidding procedure with the justifications laid down by the Administrative Manual, which were approved by the Office. Three of these contracts related to Myanmar again. Universität für Bodenkultur (Safeguarding Natural Heritage in Myanmar within the World Heritage Framework project Phase II) for an amount of $80,835 The argument of no competitive marketplace for the requirement was adduced, since Vienna s University of Natural Resources and Life Sciences had the only scientists in the world specializing in animal and plant biodiversity in the forests of northern Myanmar, which was the subject of this project. The waiver requested by the Yangon Antenna was approved by the Director of the Office. Danta Da Lun Management & Consulting Services (Communication for Sustained Livelihood and Food Security project) for an amount of $58,332 A request for proposals was issued for this contract according to the procedure. Two companies replied. A waiver was eventually requested in July 2015 and granted by the Director in August on the ground of an emergency situation (under Item of the Administrative Manual). Although the request for proposals was issued on time, the donor had already made its funding payments and the project s initial evaluation phase should have begun in April if the project as a whole were to remain on schedule. The waiver was also approved by BFM by on 9 August The proposal selected was both the least expensive and described as the most relevant. Toyota Tsusho Asia Pacific Pte (Capacity-Building for Safeguarding Cultural Heritage in Myanmar project Phase II) for an amount of $ This related to purchase of two vehicles for the Myanmar office. An emergency situation was again adduced, since the chosen supplier (Toyota Tsusho Asia Pacific Pte) was the only one of the three dealers authorized to sell vehicles duty-free that was able to provide the desired vehicles immediately without having to import them. Without the waiver, it would have been necessary to lodge an application for an import licence, the processing time for which would have jeopardized project implementation. Moreover, study of the two rival tenders shows that the price difference was $1,800 (after VAT exemption). IMPACT Exhibition Management Co. (exhibition and convention centre in Bangkok) contracted as part of the Asia summit on flexible learning strategies for out-of-school children (500 participants, hosted from 24 to 26 February 2016) for an amount of $68,396

27 201 EX/21.INF.2 page 24 The ground adduced to justify the waiver, and listed in the Administrative Manual, was that offers for identical requirements have been obtained competitively in accordance with [the rules] within a 12-month period. Given the scale of the event, only three convention centres in Bangkok were suitable. The proposal from IMPACT Exhibition was the most satisfactory in terms of the dates available, size of auditoriums and overall cost. It was the second lowest bidder, but the lowest bidder was not offering all the services required by the Organization. Last but not least, the Office had already had occasion to use this convention centre in connection with previous calls for proposals. 85. The Office frequently resorts to waivers for procurement that might have warranted competitive bidding: 110 waivers were thus authorized over the period (including 29 for contracts with business concerns) for procurement that was not just confined to Myanmar, a special-status (PCPD) country. The Office is well aware of the associated procurement risk, as evidenced by its inclusion in the risk inventory dating from 8 August 2016, which was intended to promote awareness and training in this field. The Office s attention is nevertheless drawn to the fact that use of this facility should be kept to a minimum and remain the exception as far as possible. Table 10: Waivers from competitive tenders for contracts of the Bangkok Office (in United States dollars) Coverage Number of waivers % Amount % Myanmar , Other countries covered by the Office , Total , Source: Bangkok Office 86. In short, procurement compliance is ensured by the Office in Bangkok, and the contracts awarded seem to comply with current rules and procedures. It should be noted that the head of the Finance and Administration Unit organizes training sessions for her staff on specific issues at roughly two-monthly intervals. 87. Two lease agreements were signed on 1 January They relate to: A coffee shop in the building, leased for 2016 to an outside provider offering a snacks and drinks service in exchange for a very modest rent of THB 1,750 per month; A canteen in the UNESCO gardens for a monthly rent of THB 3,500 under a lease that expired on 31 January 2014 and was not renewed once the building had been renovated, with the premises in the building s courtyard intended for this purpose remaining unused. An invitation to tender has nevertheless been prepared and should shortly be published on the Bangkok Office s website. An agreement with a new provider is expected to be signed in November On 31 May 2014 the Office in Bangkok ended its contribution to the rental costs of a complex in Vientiane that UNDP had made available to various United Nations agencies, through an agreement dating from 19 December The last invoice paid to UNDP amounted to $4,547 for the first five months of Since then UNESCO has been hosted by the Government of the Lao People s Democratic Republic in the Ministry of Education and Ministry of Culture Supplier management 89. The sample of some 15 suppliers records that were audited appeared properly completed, documented and updated whatever the nature of their work. It was possible to

28 201 EX/21.INF.2 page 25 consult the required supporting documents, including contracts, long-term agreements 41 and service entry sheets for contract owners. 90. Examination of the Office s 20 largest payments to non-individual vendors every year since 2014 showed that the majority related to entities providing intellectual or other services, contracted for implementation of sectoral projects (universities, research institutes, foundations, etc.). The share of this type of provider has grown, rising from 51% to 65% of the Office s main items of expenditure between 2014 and 30 June Table 11: Nature of Office s 20 top items of expenditure per year (in United States dollars) 20 top payments to suppliers Total 544, , ,666 Universities, foundations, research institutes, etc. contracted for projects 51% 63% 65% GBT travel agency, hotels, conference rooms 45% 28% 29% Procurement (vehicles, computer equipment, etc.) 4% 5% 6% Rent for UNDP premises (Myanmar) 4% Source: Bangkok Office 91. At the same time, the suppliers share in physical services relating to the Office s work (room hire, hotel services, travel arrangements, etc.) is declining as a proportion. This is inevitably just a partial indicator, but it reflects an essentially positive development in that the Office s resources are being focused more on its core activity. Further study is needed to determine whether this development is evidence of more and more effective management of competitive bidding involving commercial firms to the benefit of the Office s project content Consultant management 92. The Office makes extensive use of short- and long-term consultants, especially to offset staff shortages, as in the Yangon Antenna, which has many consultants (14 at the time of the audit) and whose number has risen sharply since These consultants are mostly employed in the Education Sector (57 in 2014, 83 in 2015, and 33 since the start of 2016) and the Culture Sector (23 in 2014, 27 in 2015, and 38 since the start of 2016). The Administration Unit called upon one consultant in 2014 and 2015 to give advice on transfer of the Office. Table 12: Employment of consultants by the Office Number Nationalities NB: 2016 data as at 1 July Source: Bangkok Office 93. The Office does not have its own roster of potential consultants having indicated a desire to work with it but merely keeps a list of consultants who have actually already worked for it. It has access to the Headquarters roster in theory, but in practice project officers tend not to use it, and the Office considers that sharing information among these officers at the local level does not require formal pooling. 41 LTAs.

29 201 EX/21.INF.2 page The 15 or so consultants records audited were complete and properly kept. The comparative CVs required by the recruitment procedure were available, as were contracts and financial statements. However, for technical reasons, the Office had no statistical monitoring of the calls for consultancy that it had published. 95. Some consultants have received substantial remuneration for particularly large projects. Thus, since 2014, of the 100 or so consultants recruited each year (148 in 2015, see above), the 20 highest paid account for a considerable proportion of the total annual remuneration paid: Table 13: Annual remuneration of Office consultants* (in United States dollars) Consultants Total remuneration (including travel expenses) 771,593 1,579, , highest-paid consultants: 285, , ,702 Remuneration over $40, Remuneration between $20,000 and $40, Remuneration between $10,000 and $20, Remuneration under $10, Relative share of top 20 37% 23% 43% * Includes travel expenses Source: Bangkok Office 96. This finding is consistent with the previously noted trend of a rising share of expenditure going to entities that are in the majority non-profit-making (universities, institutes, foundations, etc.) and contracted for Office projects. Taken together with the Office s dynamism, these two converging trends are observed over three years warrant vigilance in the coming years with a view to spending control. 97. A large proportion of consultants have worked on the Office s many projects relating to Myanmar. Out of the Office s 20 highest payments, ten were made to specialists from Myanmar and eight of these payments were in the top ten. This relative importance may therefore be seen as a possible effect of the financial terms offered to consultants working on or in this country. However, the frequent absence of normal competition on this particular market also accounts for the phenomenon in part. Attention should be paid to this aspect of the Office s work Miscellaneous operating costs 98. Occupancy and maintenance expenses for the premises are low owing to the substantial contribution in kind represented by provision of the building by the Government of Thailand. In the absence of rent, running costs accounted for only 2.6% of total expenditure for the biennium and 1.7% of expenditure as at 30 June 2016, with an estimated total of $202,771 for the year. Table 14: Building occupancy expenses (in United States dollars) Building occupancy projection Electricity 31,041 8,880 40,211 Water 1, ,737 Telecommunications 19,040 17,292 15,938 Maintenance 4,157 7,739 3,747

30 201 EX/21.INF.2 page 27 GUTS security firm 16,184 22,031 16,968 Maintenance staff wages 119, , ,170 Total 191, , ,771 Source: Bangkok Office 99. The sharp fall in electricity costs in 2015 corresponds to the period when Office staff were transferred during renovation work on the building. The Government of Thailand pays a contribution of THB 25,000 a year (amounting to $772 in 2016) towards electricity costs. This is the amount stipulated in an agreement signed in 1967 between the Thai Ministry of Education and UNESCO, providing for payment of the Office s electricity bills to the amount of THB 25,000 a year. It is added to the host country s annual contribution, which in 1966 was set at THB 184,600 ($5,678 in 2016). When these contributions are taken into account, the Office s full operating costs are $173,385, i.e. 2% of its total expenditure. If UNESCO had to meet the full cost of its presence, it would therefore have to spend approximately $2.7 million per year (excluding staff), taking into account the premises provided free of charge The Office in Bangkok has a fleet of five vehicles: two BMWs, one of which is used by the Director (who has his own driver), a Mercedes, a Toyota minibus for group transport and a motorcycle used by Office couriers and technicians. The logbooks for these various vehicles have been kept properly and are consistent with the mileages recorded. Fuel costs are consistent with mileage, which itself is consistent with urban travel in Bangkok. Average fuel consumption is 14 litres per 100 km for the Director s car, 12 litres for the Mercedes and 14 litres for the minibus The Office regularly organizes events (workshops, conferences, etc.) in Thailand and abroad, to which it invites both local and foreign participants. Consequently, it has to cover travel and accommodation expenses. It thus pays per diems (daily subsistence allowances, DSAs) to these third parties, funded from project budgets. It is established practice to use the personal bank accounts of Office staff to transfer these sums on condition that the staff pay the allowances in cash to participants actually present at events. This practice, which leads the Organization and the staff concerned to take an additional risk, was criticized in previous audits. The Office has taken the initiative of organizing a working group to explore possible solutions. These solutions (direct payment of subsistence costs, direct bank transfers to the parties concerned, payments through UNDP) were considered at the senior staff meeting (SSM) of 4 June 2015 but did not carry enough weight. At the Director s request, the head of the Administration Unit sought and presented another solution at the SSM of 10 July 2015: use of the contractual services of the G4S security firm, at least in Thailand. However, no solution was officially adopted from autumn 2015 until the Director requested an end to the previous practice during the audit Travel expenses paid from the Office s regular budget and extrabudgetary resources represented 6% of its overall expenditure in Although they have risen in absolute terms, their relative share in Office expenditure has fallen. Table 15: Office s travel expenses (in thousands of United States dollars) As at 30 June 2016 Travel expenses Percentage of overall expenditure (regular budget and extrabudgetary resources) Source: Bangkok Office 9% 6% 5% 3.4 Financial management 103. The practice in evidence shows that the head of the Finance and Administration Unit has ensured that appropriate internal financial controls are in place and effective, as recommended

31 201 EX/21.INF.2 page 28 by the Administrative Manual. The Office has reported that no actual or suspected fraud was identified during the period audited Cash management 104. The Office has a cash fund in THB (for a maximum amount of $500 outstanding), which has been audited and for which the balance of THB 8,748 ($250) was consistent with the accounting records (tested on 15 September 2016). The signatures appearing on the samples of expenditure examined comply with the operating rules. This method of payment is little used and serves mainly to reimburse minor local travel expenses. Such expenditure keeps within and respects the intention of the ceiling of $50 per payment The Office has two bank accounts with the Standard Chartered Bank, one in USD and the other in the local currency (THB). It does not possess any credit cards but has a chequebook for the account in THB. This method of payment is very little used, since virtually all the Office s payments are made by bank transfer: it serves only to pay the bills of domestic suppliers (water, electricity, telecommunications, post, etc.). Authorization thresholds and the list of bank signatories authorized to commit funds comply with regulatory requirements. The bank accounts are maintained correctly (frequency of bank statements and reconciliations within the timeframes required by the Administrative Manual) The Office is careful to follow Headquarters (BFM/TRS) instructions to keep a minimum of cash in its accounts. Its cash flow planning enables it to adjust the level of cash as closely as possible to its needs. If more cash is necessary, a special request is sent to Headquarters (BFM), with the corresponding justifications, to top up the account in United States dollars. The funds are then transferred by the Office to the account in the local currency. This account, which is used for all its current transactions, shows considerable fluctuations in its balance (in 2016, the average balance was THB 2,663,850, equivalent to $75,000) Payments made 107. Payments are made in accordance with the general provisions of the Organization. The sample of payments examined revealed no irregularities. Signatories and payment limits authorized were compliant Since 1 January 2014 the 20 largest payments for each year account for a total of $1,372,820. These transactions were mainly payments to travel agencies, for hotel accommodation and for room hire. Intellectual services (consultants) represented only 15% of this expenditure. Other expenses related to the Office s relocation and its renovation work. Chart 5: The 60 main payment transactions of the Office for the period

32 201 EX/21.INF.2 page Mobilization of external resources by the Office Relative importance of external resources 109. The share of extrabudgetary resources is becoming more and more important to maintaining the Office s work in the region. It totalled $6,987,000 in 2014, $10,212,000 in 2015 and, as at 30 June, $9,826,000 in As the Office has pointed out in its internal control self-assessment of January 2016, this increase is due to its work on developing external contributions that are not only financial (additional appropriations, special accounts and FIT 42 ) but also in kind (secondments, non-reimbursable loans, volunteers) According to the statement produced by the Office in July 2016, the donor profile for the period was as follows: Table 16: Office s 20 top donors for (in millions of United States dollars) Name Profile Country Amount pledged Sector Zone MoE G South Korea 4.50 ED/CLT Regional Education Above All P 2.65 ED Regional UNAIDS IO 2.66 ED Regional MoFAT 43 G Australia 2.50 ED Myanmar HNA Group P 2.50 ED Regional MEXT 44 G Japan 2.17 ED/SC Regional MoE G Malaysia 2.09 ED Regional MoFA G Italy 1.83 CLT Myanmar UNOPS IO 1.50 CI Myanmar Ericsson P Norway 1.41 ED Myanmar Norway G Norway 1.29 CLT Myanmar MoFA G Japan 1.20 CLT Regional/Myanmar PepsiCo P United States 0.90 ED Myanmar World Bank IO 0.88 ED Regional UNICEF IO 0.78 ED Regional NFUAJ 45 P 0.75 CLT Myanmar Malaysia G Malaysia 0.57 ED/SHS/CI Regional China Shenzhen G China 0.50 ED Regional Microsoft P United States 0.50 ED Regional EU IO 0.28 CI Myanmar Total 31.5 Source: Bangkok Office, reprocessed by the External Auditor 111. The top 20 donors, with pledges totalling $31.5 million between 2014 and 2016, represent 95% of the total provided by the 43 identified donors who pledged $33.2 million in total over the period. These donors are predominantly governments (51%) and, secondarily, private firms (29%) and international organizations (20%) Projects cost $420,000 on average and are concentrated in two fields: education, with the bulk of funding (76%) and Myanmar, the only country to have funding allocated directly, which received over $10.7 million of support, i.e. 37% of the total. More generally, the pattern of funding Funds-in-trust. Ministry of Foreign Affairs and Trade. Ministry of Education, Culture, Sports, Science and Technology. National Federation of UNESCO Associations in Japan.

33 201 EX/21.INF.2 page 30 in terms of origin and allocation shows a diagonal running from East Asia (South Korea, Japan, China) to the ASEAN countries, with Myanmar foremost among them Management of resource mobilization 113. One of the objectives assigned to the Director of the Office is to develop extrabudgetary resources, 46 a responsibility that he used to share with the Deputy Director, until the latter s departure in Since then, the Office s Executive Office has been in charge of partnerships and external relations. However, no overall or sectoral quantitative objective has been set for the Office The Office indicated that in 2015, it developed a monitoring and evaluation framework for resource mobilization (see internal control self-assessment questionnaires for 2014 and 2015), which was due to be revised following the reorganization of the Education Sector. There is, however, no record of this document or of any regional strategy The number of the Office s official partners, kept track of through a partnerships database, grew from 55 in 2014 to 101 in 2016 (same source as above) and then 113 at the time of the audit. The Director has pointed out that he has developed funding from JFIT, KFIT and MFIT 47 and that South Korea and Singapore have agreed to second one person each to the Office The Office participated in the exercises led by Headquarters (the Bureau of Strategic Planning (BSP) and lately the Division of Field Support Coordination) in the field of resource mobilization: it contributed to the donor mapping exercise initiated in March 2016 at the meeting of field office directors held at Headquarters. In July 2016, it established a consolidated donor map for Asia and the Pacific on the basis of contributions from most of the offices in the region. This exercise highlights the existence of more than 250 funding proposals, approved or under assessment, from 80 different entities (80% from governments, 20% from international organizations and only 13% from private companies). It has also organized training sessions on the subject for some of its staff, such as the advocacy and awareness-raising seminar for its management staff in December 2012, and is planning a seminar for UNESCO offices in the region in November 2016 on mobilization of funding from the European Union This exercise appears to be very useful for the preparation of a proper regional strategy to develop resource mobilization. The following possibilities might be considered by the Office: make better use of the catalogue of skills (such as independent expertise and ability to carry out projects) in the areas of the Organization that the Office can take to third parties; better identify the nature of active correspondents in the region s Member States; identify precisely the list of potential donors interested in contributing to the Organization s missions in the region (such as major international foundations and regional headquarters of businesses that are active in the region) More specifically, the Office should take advantage of its regional coverage and formal access to the regional decision-making centres of potential private partners to develop a proactive approach to them. Regional prospects for economic development and the development of corporate social responsibility suggest that potential funding exists within the Organization s field of responsibility and can be better mobilized at the regional level than at Headquarters or by national offices. Recruitment of a temporary consultant (funded by FITOCA) to put a plan of action to private firms and organizations that might help to fund the Organization s projects in the region could contribute to the initiative s success Overall Performance Report 1/1/ /12/2015: Expected Result 3 Mobilize extrabudgetary resources: 1. Ability to mobilize extrabudgetary resources from public/private partners. Japanese Funds-in-Trust (JFIT), Korean Funds-in-Trust (KFIT) and Malaysian Funds-in-Trust (MFIT).

34 201 EX/21.INF.2 page 31 Recommendation No. 8. The External Auditor recommends the establishment of a regional resource mobilization strategy, in particular with private partners, which should become a quantified target for the next Director. 3.6 Staff management Suitability of human resources 119. The Office is moving towards a gradual reduction in the most expensive staff (mainly staff on local fixed-term (FT) contracts and, to a lesser extent, international staff) in favour of recruiting local staff on temporary service contracts (SC). The latter currently represent 63% of staff as against 58% in 2014, while the share of fixed-term contracts has fallen by roughly four per cent in two years. Table 17: Changes in staff composition (excluding Yangon Antenna) Staff International 22.9% 21.6% 21.6% FT 19.3% 17.1% 15.7% SC 57.8% 61.3% 62.7% Source: Bangkok Office 120. In December 2013, when the staffing table was being prepared for the biennium, the Office was belatedly ordered to reduce the number of staff financed from the regular budget by seven local posts. After an exchange of correspondence with Headquarters (BSP and HRM), the Office succeeded in keeping some of these posts, abolishing only four: an L1 post (courier), an L2 post (driver), an L3 post (administrative assistant) and an L5 post (office assistant). Two international posts (P4) were temporarily vacant at the time of the audit owing to staff reallocation and transfer. Table 18: Changes in the Office payroll for (in thousands of United States dollars) As at 1/1/14 As at 1/1/15 As at 1/1/16 incl. annual projection Categories Assigned Paid Annual payroll cost ($k) Assigned Paid Annual payroll cost ($k) Assigned Paid Payroll cost First halfyear ($k) Payroll cost Projection for year ($k) By status FT/International , , ,798 3,232 FT/Local , SC/Temporary , , ,538 Total , , ,952 5,606 By function Management DO + EO Administration Projects:

35 201 EX/21.INF.2 page 32. ED CLT SC SHS CI IOC UIS Total NB: excl. Yangon Antenna Source: Bangkok Office Payroll costs 121. Including salaries of staff members paid by Headquarters, the total payroll costs of the Office in Bangkok amounted to $12,246,000 for the biennium, i.e. 58% of the total resources allocated to the Office by the Organization The Office s international staff have the option of being paid part or even all of their salaries in the local currency. The apportionment is up to the staff member, whose personal request is submitted to Headquarters (BFM) for approval under Staff Rule BFM then sends the Office a payment order for the corresponding amounts to be paid to the staff member Overtime working and costs 123. Overtime costs amounted to THB 887,520 ($25,486) from 1 January 2014 to 30 June 2016, for a total of 84 payments (42 in 2014, 31 in 2015 and 11 in the first half of 2016), coming to an average of THB 10,565 ($292) per payment The Director s driver worked the most overtime during the period in question (37.7 hours a month on average with an authorized maximum of 40). Mr Thawat Vothave was thus paid THB 624,482 ($18,000) in overtime between 1 January 2014 and 31 May In 2015, his overtime pay was equivalent to 27% of his notional annual wages ($30,247, fixed-term position). The overtime worked was justified, and the payments were consistent with the working time declared Duration of assignment for the Office s international staff 125. At the time of the audit, the Office had 24 international staff (including two at the Yangon Antenna). Six of them, or one quarter, have exceeded the standard duration of assignment of five years set by the Organization (UNESCO Human Resources Manual, Appendix 4 C - UNESCO field duty stations) 48 without implementation of the procedure set out in the Human Resources Manual (deferment of reassignment) to promote geographical mobility Greater attention should be paid by the Office and Headquarters (Bureau of Human Resources Management) 49 to the application of the rules provided, even though it is not without financial implications, as this is a prerequisite for a genuine mobility policy between Headquarters and the field offices as well as among the field offices themselves Zhu Wenxi (since 2009), Gwang-Jo Kim (since January 2009), Sardar Umar Alam (since 2009), Satoko Yano (since November 2009), Ichiro Miyazawa (since July 2010) and Jongwi Park (since 2011). HRM.

36 201 EX/21.INF.2 page 33 Recommendation No. 9. The External Auditor recommends the application of the procedure set out in the Human Resources Manual in cases where staff members remain in international Professional posts beyond the Standard Duration of Assignment (SDA) Record-keeping 127. Although the Director of the Office has acknowledged the need to update the job descriptions (see SSM of 3 June 2014), several records are old, or even obsolete The personnel files for the Office are held by the Finance and Administration Unit. On the basis of around 20 files reviewed, it appears that the file-keeping is generally satisfactory, despite a few duplicates and some gaps (unsigned job descriptions, 51 and recruitment conditions acceptance letters 52 ). A proper filing system, however, would help to ensure that the Office has all essential documents in its possession. These should comprise, at a minimum, depending on the staff member s profile (international or local): 1. Personal data: CV, copy of identity papers, United Nations Card, copy of qualifications, emergency contacts, bank account details, medical certificates Table 19: Minimum documents for a personnel file International staff X Local staff 2. Signed job description X X 3. Appointment documents: contract, extensions, resignation letter (where applicable), handover note 4. Recruitment process: vacancy, comparison of candidates, shortlist, selection memorandum Transfer document X Contract Advertisement, applications, selection memorandum 5. Dependants, pay rises X X 6. Travel X X 7. Other expenses covered (home leaves, entitlements, etc.) 8. Miscellaneous official correspondence 9. Performance assessment X X X X 129. As already noted by the External Auditor, it is necessary to be consistent in record keeping, especially with regard to personnel files. The Office is therefore urged to implement, without delay, memorandum BFM/2016/460 sent on 19 July 2016 by BFM concerning records management. X X Post descriptions for Mami Umayahara (dating from 5 October 2007), Wang Libing (dating from 11 February 2011, for APEID coordinator), Jayakumar Ramasamy (dating from 7 June 2013) and Susan Vize (dating from 2 March 2013). For Susan Vize and Maki Katsuno-Hayashikawa. For Susan Vize, Jayakumar Ramasamy and Mayuree Viratyaporn.

37 201 EX/21.INF.2 page The External Auditor notes that in December 2016, the first steps to clarify record keeping were the subject of an exchange between the Office and the Bureau of Human Resources Management. Recommendation No. 10. The External Auditor recommends that the Office improve its personnel file-keeping on the basis of recommendations made by the Bureau of Financial Management (BFM) Although staff members have access to online training, there are very few group training activities. This situation is due as much to the Office s transfer between 2014 and 2015 as to the budget constraints that have obliterated its training budget (now funded solely from FITOCA resources). Since 2014 the Office has received no training budget from regular resources Situation of an international member of staff carrying out her duties outside the country of her duty station 132. Ms Mami Umayahara, P-4, in charge of the Executive Office from January 2016, was granted home leave from 5 to 20 April Upon her return, she considered requesting parental leave without pay (see Chapter 6.12 of the Human Resources Manual) to join her husband and young child in Hong Kong. According to the rules, such leave cannot be granted within six months of home leave without having to reimburse the latter, so she postponed her request. She was granted parental leave for one year, from 19 October 2016 to 19 October Ms Umayahara, who received an excellent rating in her performance review, was given a pay rise from 1 October 2016 on the Director s advice ( of 25 June 2016). Moreover, her contract, due to expire on 15 September 2017, was extended until 19 October 2017, in order to coincide with the end of her parental leave By decision of the Director of the Office, Ms Umayahara was authorized, although she had already begun the formalities for her check-out procedure, to work for the Office until her departure on leave without pay, so for a duration of nearly two months, from Hong Kong, where she now lives. This decision was taken as a matter of urgency and without consulting HRM at Headquarters. There is some doubt as to whether, unlike the case of time management for example, the Director of the Office has the authority to authorize staff members to discharge their duties outside the country of their duty station. In any case this decision seems hard to justify given the staff member s important coordination role and might render the Organization liable in the event of an accident Subsequent to this audit, Headquarters (HRM) has defined its telework policy in circular AC/HR/52 published on 27 September This does not include the case of international staff working in a country other than their duty station. It is therefore necessary to clarify this situation, which is not financially neutral. Recommendation No. 11. The External Auditor recommends that the rules be clarified on exceptional authorization of the service of international staff members outside the country of their duty station. 3.7 Management of office security 135. The UNESCO building in Bangkok is the muster station for United Nations staff in the event of a major crisis in the city. When it was renovated in 2015, the building was provided with earthquake protection and the access control system was strengthened. The Minimum Operating Security Standards (MOSS) laid down by the United Nations Department of Safety and Security UNDSS.

38 201 EX/21.INF.2 page 35 and recently revised (2 April 2015) are in force for United Nations bodies established in Bangkok. The Office s premises and assets are properly insured The UNDSS inspected the UNESCO Office on 16 February The inspection report made nine non-moss recommendations and one, urgent, MOSS recommendation, relating to an emergency exit. All these recommendations were implemented after the inspection. On 9 March 2016, UNESCO also conducted a self-assessment of its security, which found the UNESCO Office to be 95% MOSS-compliant The Office has a security team consisting of six staff on temporary service contracts, two employees of the GUTS local security firm and a supervisor (L3). The cost of this team (excluding GUTS) was $64,678 in 2016 (security costs), to which must be added the cost of $16,967 for GUTS, making a total of $81,645 in United Nations inter-agency cost-sharing provides for an assessed security contribution of 1.86% for UNESCO. This came to $1,224 in 2014 and $899 in Publication management 139. The Information and Knowledge Management Unit (IKM) attached to the Executive Office is in charge of the practical side of the sectors publishing activities and of managing the regional bureau s website. It is headed by an assistant public information specialist (P2), who supervises a team of three people The Office in Bangkok has the reputation of being particularly dynamic with regard to publications. According to its Director, it is the most productive in the network. 54 The Office produced 21 publications in 2015 at a total cost of $171,250. Of this expenditure, 93% was for the Education Sector. The Sector s share of projected expenditure on publication projects in the current biennium is 80% The Director has been attending the monthly meetings of the Publications Board at Headquarters in his official capacity since February 2014, which is gradually helping to align the publication policy of the Office in Bangkok more closely with Headquarters recommendations. Headquarters expects a greater proportion of Category 2 publications with the aim of attracting a wider readership, which is less responsive to the technical publications in Category 3, and to raise UNESCO s profile. At the time of the audit, 36 publications were planned for the biennium, including seven in Category 2 (the previous biennium had no publications in this category) Since the end of 2015, UNESCO offices in the Asia and the Pacific region have been independent from the Office in Bangkok with regard to their publications, which are very limited by comparison (apart from the Office in Apia, which was assisted by IKM for two publications in 2016) Sector-related publications are funded from the sectors respective budgets. FITOCA resources are used for IKM-initiated publications. The operating costs of the IKM Unit totalled $7,414 for Publications are distributed free of charge and therefore do not generate any particular revenue Since distribution of the publications is the responsibility of each individual Office sector, there is no information on stocks of these publications From design to distribution, production of publications can extend over several years. The estimated expenditure for the biennium therefore corresponds to the sum of projects planned to date but which, if they are implemented, will be spread over more than one biennium. At the time of the audit the estimate was $661,224 for 34 publications (including 10 digital) representing a total of 17,850 copies. 54 SSM of 4 September 2015.

39 201 EX/21.INF.2 page The IKM Unit sets the rates for its suppliers (designers, editors, printers) depending on the type of service required (minimal editing in Word, computer graphics, photography, booklets, CD publishing, etc.). These rates were considered very low by the suppliers contacted. Printing costs represent the bulk of publishing expenses The IKM Unit uses different suppliers for almost every new publication. This results in considerable routine work redefining requirements and negotiating. One of the assistants spends most of his working time on this, to the detriment of his other computer design tasks Given the IKM Unit s volume of activity, it might be worth comparing the costs and working time resulting from the current type of relationship with suppliers with the terms that could be negotiated under a request for proposals for a publishing package. Although, taking each order individually, the amount of work given to a printer by IKM is routinely beneath the minimum threshold required for a long-term agreement (LTA), the total amount of annual expenditure is well over this threshold. It would therefore be worth undertaking a study based on the overall volume of business to determine whether it would be better to deal with just a single supplier, to whom most of the Unit s printing work would be entrusted. Apart from the possible economic benefit of this alternative, it would also have the advantage of reducing the team s workload and enabling it to focus more on its design work The website of the Office in Bangkok plays a key role with regard to its profile and communication. With 80,000 visits a month, it has the highest number of visits of any website of UNESCO offices in the Asia and the Pacific region (6,000 for the New Delhi website, 5,000 for Katmandu, etc.). 4. MYANMAR ANTENNA 4.1 Profile of the Antenna 150. According to the Administrative Manual (Chapter 1.7 UNESCO Field Offices), [a]ntennas are set up in countries where the Organization s presence is considered essential and where there is no established structure in order to implement specific extrabudgetary projects, or to serve as liaison with the United Nations Country Team (UNCT) and national authorities, and to follow-up on the implementation of UNESCO activities. UNESCO antennas do not have representational functions Thus there is no host country agreement between UNESCO and Myanmar for this establishment, which is still regarded as a relocated project office. However, a letter dated 8 May 2013 from Myanmar s Minister of Education to the Director of the Office in Bangkok confirms that the agreement between the United Nations agencies (including UNESCO) and Myanmar dated 20 April 1954 does indeed apply and grants the Organization s staff and assets diplomatic privileges and immunities Since 2009 the Yangon Antenna has been headed by Sardar Umar Alam (grade P-4), an education project specialist. His continuation in the position beyond five years should have been authorized by the Director-General. Newly promoted to grade P-5, Mr Alam has nevertheless had to leave his position at short notice, as he has recently been appointed to head UNESCO s Office in Juba (South Sudan). 4.2 Activity of the Antenna 153. The Antenna s share in the Office s activity is increasing. In terms of contracts, it accounted for 37% of those concluded in 2014 (155 contracts out of a total of 420) and 50% in 2015 (463 out of a total of 935).

40 201 EX/21.INF.2 page Its current portfolio comprises 25 projects (excluding overarching projects), funded particularly by foreign governments and private companies, which cover the Education, Culture and Communication and Information Sectors fairly equally. Table 20: Portfolio of projects of the Yangon Antenna Title Sector Budget code(s) Valid from Valid to XB Total Allocation Expenditure XB Exp./ Allocation (%) Donor Strengthening Business Skills for Youth Employment Strengthening Business Skills for Youth Employment - Phase II ED 597MYA /3/13 31/12/15 500, , Pepsi Co ED 597MYA /6/15 31/5/17 400,000 55, PepsiCo Strengthening Capacity for Higher Education Policy Reform ED 570MYA /6/13 5/12/15 150, , Open Society Institute Strengthening Pre-Service Teacher Education (STEM) Empowering Women and Girls through Mobile Technology Education for Peace and Development in Northern Rakhine State Strengthening Schools for Education for Sustainable Development MYA - Empowering youth for HIV prevention and response Increasing capacity of young people including young key populations in HIV response Strengthening HIV prevention among youth, including young key affected populations Inle Lake Conservation and Rehabilitation Project Institutional Capacity- ED 529MYA1000 1/1/14 31/3/17 2,500, , Australia - Department of Foreign Affairs and Trade ED 570MYA1001 6/11/14 31/3/17 1,408, , Ericsson ED 517MYA1000 8/8/13 31/12/16 196,238 53, Belgium - Government of Flanders ED 570MYA /11/15 17/11/17 250,000 1, Panasonic ED 257RAS /1/14 31/3/16 74,480 74, UNAIDS ED 207MYA1000 1/5/13 1/1/15 30,000 22, UNAIDS ED 247MYA1000 1/1/12 14/11/14 104, , UNAIDS SC MYA /5/12 31/7/16 200, , UNDP CLT 501MYA /1/13 31/12/15 108, , Switzerland - Department

41 201 EX/21.INF.2 page 38 building for Managing Bagan within the World Heritage Framework Safeguarding Natural Heritage within the World Heritage Framework CLT 504MYA /2/13 31/12/15 215, , of Foreign Affairs Norway - Nordic World Heritage Foundation Technical assistance for the conservation of built heritage in Bagan CLT 536MYA /2/14 25/2/16 300, , Japan Capacitybuilding for safeguarding cultural heritage (Phase II) CLT 534MYA /12/13 31/12/15 1,358,700 1,348, Italy - Ministry of Foreign Affairs Safeguarding Natural Heritage within the World Heritage Framework (Phase II) CLT 504MYA4001 1/12/14 30/11/17 1,294, , Norway Safeguarding Bagan within the World Heritage Framework Capacitybuilding for safeguarding cultural heritage (Phase III) IPDC: Building the capacity of young journalists in the print media industry IPDC: Building capacity of the journalism department at Yangon University IPDC: Online media for peace: promoting crosscultural dialogue among ethnic media groups Supporting media development in the context of democratic reforms and peace-building initiatives IPDC: Supporting peace through the media: monitoring and analysing hate speech CLT 570MYA4000 1/7/15 30/6/17 750, , CLT Pending 471, CI 354MYA /4/12 15/12/14 16,500 14, CI 354GLO /1/14 31/12/14 18,000 18, CI 354GLO /1/14 31/12/15 27,000 25, CI 549MYA /11/14 31/12/16 253,891 58, CI 354GLO /7/15 31/12/15 9,000 9, National Federation of UNESCO Associations in Japan Italy - Ministry of Foreign Affairs Multi-donor special account European Union

42 201 EX/21.INF.2 page 39 Capacity Development of Mass Media Institutions in Support of Peace-building and Local Development in Mon and Kayin States CI 235MYA /4/14 31/12/15 100,000 98, United Nations Communication for Sustained Livelihood and Food Security CI 216MYA5000 1/12/14 30/11/16 1,500, , UNOPS Source: Bangkok Office as at July The Antenna s operating conditions 155. The Antenna is housed in UNPD offices and has also had its own premises since The Office paid UNDP the amounts of $8,550 in 2014, $26,627 in 2015 and $26,654 in 2016 on this account. The occupancy expenses for the other premises were $32,641 in 2015 and $33,658 in According to the head of the Antenna, at the time of the audit there were nearly 30 staff: three international staff members (the Antenna head, a P-3 project officer and a P-1 programme assistant, the latter two being funded from projects), 13 staff on temporary contracts (including six national professional officers 55 ), nine consultants working on the premises and three trainees/volunteers The Antenna assets, which are recorded in an inventory, consist mainly of a Toyota Prado 4x4 vehicle bought in late 2013 and worth $25,000. In August 2016 the head of the Antenna stressed the need to buy two more 4x4 vehicles to meet the project team s transport requirements As in the case of other international organizations present in Myanmar, the Antenna s working conditions are particularly difficult: no banking system, which prevents direct payments locally; poor-quality Internet and telecommunications infrastructure; and shortage of local skilled staff. 4.4 Prospects for the transformation of the Antenna into a national office 159. The Myanmar Antenna is described as UNESCO s largest antenna office. The development of its activities and the prospects for closer cooperation between the Organization and Myanmar raise the question of its transformation into a national office Such a transformation would have clear advantages: improving UNESCO s capacity for local representation before the national authorities, more proactive management of programmerelated operations, easing of the administrative support burden on the Bangkok Office, and increasing visibility of the Organization in Myanmar as well as with donors and the international community It is also clear that the creation of a national office would have an additional cost for the Organization, which could nonetheless be reduced by possible transfers of posts or the use of additional resources from FITOCA that new projects would generate. Based on rough estimates made by the External Auditor, the cost of a national office in Myanmar would be in the region of $1,260,000 per year, broken down as follows on the basis of a permanent team comprising six (fixed-term) permanent posts: three international staff members (one P-5 and two P-3) and four locally recruited staff members (one L6, one L4, one L3 and one L2). The cost of the current 55 NPOs.

43 201 EX/21.INF.2 page 40 structure, in particular the remuneration of the current Antenna Officer, should be deducted from this amount ($395,000 for a P-4). Table 21: Estimated cost of a national office in Myanmar (biennium) (in United States dollars) Item Cost Remarks Staff: 1,171,000 International 1,073, standard staff costs Local 98,000 October 2015 UN local costs Premises 65, cost + $5,000 Travel expenses 5,000 Antenna estimate Cash fund 6,000 Antenna estimate UNCT contribution 10,000 Antenna estimate Precautionary reserve fund 10,000 Adjusted Antenna estimate Total 1,267,000 Source: External Auditor, based on information from the Bangkok Office (international staff) and Yangon Antenna (other costs) 162. In this context, it appears that the Director-General should take advantage of the momentum to examine the transformation of the Antenna into a national office and, if necessary, make this proposal to the Executive Board in spring Recommendation No. 12. The External Auditor recommends that the transformation of the Yangon Antenna into a national office for Myanmar be studied and that the results of the study be submitted to the Executive Board. 5. MANAGEMENT OF PROJECTS BY THE OFFICE 5.1 Overview of the Office s project portfolio 163. In recent years the Office has succeeded in managing its project portfolio with no major delays, even though Thailand has been experiencing political unrest, 56 the Office has had to cope with transfer owing to the work on the building accommodating it, and it has had to contend with staff cuts The current extrabudgetary project portfolio increased by 20% between the end of 2014 and the end of 2015 and is expected to see a significant rise by the end of The commitment rate (allocation/assignment) is under control. 56 Despite the programme implementation report (PIR) submitted by the Director-General to the General Conference on 3 March 2016, according to which the political situation in Thailand had resulted in a major delay in implementation as the core activity had resumed only from mid-2015, no major or lasting problems were brought to the External Auditor s attention by the Office.

44 201 EX/21.INF.2 page 41 Table 22: Implementation of the current extrabudgetary project portfolio (REL) (in United States dollars) Total allocation Amount assigned Commitment rate (assignment/allocation) Annual allotment Annual expenditure* Implementation rate (expenditure/allotment) ,721,227 11,125,198 39% 6,986,806 3,524,007 50% ,516,035 15,076,775 44% 10,212,244 6,161,565 60% ,431,707 13,924,759 49% 9,826,519 4,735,464 48% NB: Figures as at 30/6/2016 (excluding global projects) *Expenditure: expenditure current year + unliquidated obligations current year + unliquidated obligations of the previous year (excl. PSC) Source: Bangkok Office 165. The mean implementation rate for the portfolio (expenditure/allotment) is also reasonable. It could probably be improved by smoother operations management The Office manages no participatory projects and very few co-financed projects (activities financing contracts), which totalled a modest $94,145 over the period. Table 23: Office s co-financed contracts (in United States dollars) Number of contracts Commitments Expenditure Unliquidated obligations ,500 40, ,095 25, ,550 13,000 6,550 Total 10 94,145 78,574 6,550 Source: Bangkok Office 5.2 Management of projects by the Office Project implementation 167. The External Auditor organized a workshop and exchanges with several of the Office s Professional staff responsible for project management in the sectors of Education, Culture and Communication and Information Sectors. The aim of this exercise was to highlight the main difficulties in conducting projects and ways to address them. Table 24: Main obstacles to conducting projects and options for mitigation Obstacle 1. No follow-up capacity after project completion 2. Problems in interpreting the Administrative Manual and divergent application of the latter Mitigation Identify funding for post-production Seek to capitalize the investment represented by projects Routinely use project evaluation Use explanatory leaflets (on standard operating procedures) for key procedures: recruitment of consultants, recruitment of employees, procurement, travel, meeting organization, etc. Seek out and share best practice in and among field offices Provide local administrative staff with an overview of projects and procedures to ensure that they share UNESCO s global vision 3. Complexity of the Office s regional Simplify the Office s mandate (relationship with other national offices, cluster offices and the regional bureau in

45 201 EX/21.INF.2 page 42 coverage Jakarta) in preparation for a regional cluster strategy Put together a common picture of UNESCO action for all sectors in Asia and the Pacific 4. Measurement of project impact Put together national theoretical models of system operation (Education, Culture, etc.) Provide the capacity to measure project impact at Headquarters (BSP) Develop a new model for publicizing the social impact of the Organization s work (standard-setting, advocacy, capacitybuilding, etc.) 5. Identification of local partners for some sectors 6. Contact and coordination with Headquarters and particularly its cross-cutting services (ERI, LA) 7. Shortage of project and administrative support staff 8. Complexity of reporting (separate channels for SISTER and donors, frequent changes in requirements) 9. Delay in Headquarters provision of information to project officers 10. Red tape (requirements for consultants, etc.) Source: External Auditor Establish a single register of partners for the Office Introduce a qualitative assessment system for partners Train programme assistants in each unit to keep and update the register Use FSC (entry point) Regularly identify questions still unanswered by Headquarters Introduce joint local management by the Executive Office (EO) of policy issues raised by Headquarters Seek to pool the workload among project officers and Office units Identify crucial work priorities Try to simplify administrative procedures Have the Executive Office (EO) provide a general table of reporting requirements common to all projects Seek accountability convergence criteria for the Organization (SISTER reporting) and external partners (donor reporting) At Headquarters introduce an appropriate structure and procedure to ensure faster information for project officers on matters affecting them (country, themes, partners) Institute regular (monthly) meetings between the Office s project officers and the Administration Unit to deal with matters pending Seek out best administrative practice in international organizations present in Bangkok provided that it is consistent with UNESCO standards 168. The identification of these difficulties, the solution for which lies partly in the implementation of training and formalization within the Office, warrants the establishment by the Office of a working group, which should achieve rapid progress, with support from the relevant entities at Headquarters. Recommendation No. 13. The External Auditor recommends the establishment of an internal working group to improve the overall performance of the Office in terms of project management Use of project evaluation 169. The Organization s standards require an external evaluation for any project amounting to more than $500,000. However, over the period audited, the Office had only six external evaluations of projects:

46 201 EX/21.INF.2 page 43 Table 25: External evaluations of Office projects produced over the period Project title Project duration Evaluation period Title of the evaluation report Date of final report Evaluator (As part of the CapEFA programme evaluation mandated by HQ Education Sector) CapEFA/CapED in Lao PDR and Myanmar N/A Evaluation of UNESCO s Capacity Development for Education for All (CapEFA) Programme Feb ICON- INSTITUTE GmbH & Co. KG Consulting Gruppe Capacity Development for Education for All (CapEFA) in Lao PDR: Capacity Development Support in Teacher Education in Lao PDR Country report Lao People's Democratic Republic: Evaluation of UNESCO's Capacity Development for Education for All (CapEFA) Programme June 2015 Mr Bert-Jan Buiskool ICON- INSTITUTE GmbH & Co. KG Consulting Gruppe Capacity-Building for Safeguarding Cultural Heritage in Myanmar Phase 1: Feb 2012 to Jan 2014 Phase 2: Dec 2013 to Jan 2015 Throughout both phases Evaluation of capacitybuilding for safeguarding cultural heritage in Myanmar Jan 2016 Robert Travers and Pyiet Phyo Kyaw Promoting the Awareness on Coastal Marine Environmental Changeand its Impact (PACMEC) Final Report for the Evaluation of the Japanese Funds-in-Trust/UNESCO (supported by the Japanese Ministry of Education, Culture, Science and Technology/MEXT) Cooperation in Science for Sustainable Development Sept Dr Olivia Castillo 1. Capacity-Building Project on ICT in Education Innovative Practice on ICT in Education The Next Generation of Teachers Project 4. Scaling Up the Next Generation of Teachers Project /2006-4/2013 Evaluation of the ICT in Education Projects funded by JFIT-ICT , Final Evaluation Report Aug Alexander Flor 5. ICT for Accessible, Effective and Efficient Higher Education The Central Asia Regional Symposium on ICT in Education (CASIE) Development and delivery through CLCs of equivalency and community-based programmes for disadvantaged children, youth and adults for accelerating progress in achieving EFA goals and fostering of sustainable mindset (Phase I) 6/2010-6/2012 6/2010-4/2014 Evaluation of the UNESCO- JFIT Project CLC Equivalency Programme and Lifelong Learning to Reach the Unreached Aug Anne Bernard

47 201 EX/21.INF.2 page 44 CLC Equivalency Programme and Lifelong Learning to Reach the Unreached (Phase II) CLC Equivalency Programme and Lifelong Learning to Reach the Unreached (Phase III) Source: Bangkok Office 1/2012-4/ /2012-4/ These six projects are only a proportion of extrabudgetary projects coming to more than $500,000 that were closed (CLSD) or technically completed (TECO) during the period, these projects being eight in number. Table 26: Office projects closed or technically completed since 2014 (in United States dollars) TECO 534MYA4001 1,358, ,348, , Dec Jan-16 ITALY CLSD 553RAS4005 1,020, , , Nov-11 2-Oct-15 JAPAN CLSD 526RAS1010 1,000, , , Oct-09 1-Jan-14 KOREA TECO 570CPR , , , Jun-10 1-Jan-16 PRIVATE FUND CLSD 557RAS , , , Oct Jul-15 JAPAN CLSD 247RAS , , , Jan Nov-14 UNAIDS CLSD 585RAS , , Jan-12 1-Jan-14 JAPAN CLSD 534MYA , , , Feb-12 1-Jan-14 ITALY CLSD 585THA , , , Jun-12 1-Jan-15 JAPAN CLSD 202THA , , , Oct Oct-14 UNTFHS CLSD 585RAS , , , Dec Sep-15 JAPAN CLSD 506RAS , , , Jun Dec-14 JAPAN CLSD 802RAS , , , Sep Dec-15 FINLAND CLSD 585RAS , , , Jan Sep-15 JAPAN CLSD 585RAS , , , Sep Jul-14 JAPAN CLSD 529LAO , , May Apr-15 AUSTRALIA CLSD 506RAS , , , May-11 1-Jan-15 JAPAN CLSD 585RAS , , , Jan Sep-15 JAPAN CLSD 802RAS , , Jan-08 1-Jan-14 FINLAND CLSD 526THA , , Apr-10 1-Jan-14 KOREA. CLSD 526RAS , , , Jan Feb-16 KOREA. CLSD 585RAS , , , Jan-13 1-Jan-15 JAPAN CLSD 585RAS , , , Sep-11 1-Jan-14 JAPAN TECO 504MYA , , Feb-13 1-Jan-16 NORWAY CLSD 585RAS , , Aug-11 1-Jan-14 JAPAN EDU TECO 526RAS , , , Nov-11 1-Jan-16 KOREA. TECO 526RAS , , , Aug Oct-16 KOREA CLSD 247RAS , , Jan Jan-14 UNAIDS CLSD 557RAS , , , Sep Apr-14 JAPAN TECO 585RAS , , , Jul Apr-16 JAPAN TECO 585RAS , , , Aug-13 1-Jan-16 JAPAN TECO 585RAS , , , Jan-14 1-Jan-16 JAPAN EDU CLSD 570MYA , , , Jun-13 1-Jan-16 PRIVATE FUND TECO 526RAS , , , Mar-13 1-Jan-16 KOREA TECO 941THA , , Mar-14 1-Jan-16 THAILAND CLSD 247THA , , , Jan Nov-14 UNAIDS TECO 501MYA , , Jan-13 1-Jan-16 SWITZERLAND. Source: Bangkok Office, corrected by the External Auditor

48 201 EX/21.INF.2 page Most of the Office s projects that were operationally, administratively and financially completed were closed by Headquarters. At the time of the audit, however, there were still eight projects completed since 1 January 2016 that had not been closed (see above table) and one project (506RAS1016) completed on 1 January 2015 that was closed by BFM only once the External Auditor intervened The Office levies a proportion of its programme support costs (PSC) from the projects that it manages. The rates applicable vary between 0% and 13%, depending on the nature of the donors and in line with the rules, and do not call for any particular comment. Table 27: Amount of programme support costs levied from the projects of the Office (in thousands of United States dollars) PSC resources Source: Bangkok Office Qualitative evaluation of the Office s project portfolio 173. The External Auditor has neither the mandate nor the expertise to undertake a qualitative evaluation of the projects managed by the Office. Nevertheless, it seemed helpful to suggest to the project officers concerned that they should undertake their own evaluations of portfolio quality. They were thus asked by the External Auditor, during the on-site audit, to give a rating from 1 to 5, in descending order, to each of the projects for which they were responsible. 57 Table 28: Qualitative assessment of the Office s project portfolio (in United States dollars) Budget code Allocation Valid from Valid to Phase Sector Responsible Rating 201RAS ,000 15/8/ /2/2016 TECO ED SASS JUSTINE 1 201RAS ,000 11/8/ /12/2016 REL ED TCHATCHOUA BERTRAND 1 201RAS ,100 5/10/ /3/2016 TECO ED BISTA MIN 1 216MYA5000 1,500,000 1/12/ /11/2016 REL CI ALAM SARDAR 1 235MYA ,000 23/4/ /4/2016 TECO CI GONZALEZ ROSA MARIA 1 258RAS ,000 29/8/2014 1/1/2016 TECO ED SASS JUSTINE 1 258RAS ,000 15/1/2014 1/1/2016 TECO CI GONZALEZ ROSA MARIA 1 526RAS1018 1,000,000 6/5/2015 5/5/2019 REL ED WANG YIBING 1 526RAS ,790 8/9/ /6/2016 REL CLT CURTIS TIMOTHY J 1 529MYA1000 2,500,000 1/1/ /3/2017 REL ED ALAM SARDAR 1 536MYA ,000 26/2/2014 3/5/2016 REL CLT CURTIS TIMOTHY 1 549MYA ,891 27/11/ /12/2016 REL CI ALAM SARDAR 1 570MYA1001 1,408,466 6/11/ /3/2017 REL ED ALAM SARDAR 1 570MYA ,000 18/11/ /11/2017 REL ED ALAM SARDAR 1 570RAS1002 2,500,000 2/6/2015 1/6/2020 REL ED WANG LIBING 1 585RAS ,000 1/1/ /8/2016 REL ED UMAYAHARA MAMI 1 597MYA ,000 29/6/ /5/2017 REL ED ALAM SARDAR OUTSTANDING (could not be better in terms of activities, outputs or outcomes); 2. VERY SATISFACTORY (some improvements could have been achieved); 3. UNDER CONTROL (some activities, outputs or outcomes were not or will not be achieved); 4. UNSATISFACTORY (some important activities or outputs were not or will not be completed); 5. FAILED OR ABORTED (project was not or will not be carried out until the end).

49 201 EX/21.INF.2 page RAS ,447 20/7/ /5/2016 REL ED YANO SATOKO 2 201RAS ,225 5/10/ /7/2016 REL ED UMAYAHARA MAMI 2 216RAS ,376 18/12/ /11/2017 REL ED SASS JUSTINE 2 257RAS1011 2,165,521 1/1/ /6/2016 REL ED SASS JUSTINE 2 504MYA4001 1,294,343 1/12/ /11/2017 REL CLT CURTIS TIMOTHY 2 526RAS1019 1,000,000 6/5/2015 6/5/2019 REL ED WANG LIBING 2 526RAS ,000 21/9/ /9/2016 REL ED UMAYAHARA MAMI 2 526RAS4015 1,000,000 6/5/2015 6/5/2019 REL CLT CURTIS TIMOTHY J 2 553RAS ,835 10/4/2015 9/4/2017 REL CLT CURTIS TIMOTHY 2 554RAS ,255 13/5/2014 1/1/2015 CLSD ED PARK JONGHWI 2 555RAS ,000 29/3/ /3/2019 REL SC ZHU WENXI 2 570MYA ,000 1/7/ /6/2017 REL CLT CURTIS TIMOTHY J 2 585RAS ,000 1/1/2014 1/1/2016 TECO ED TAN LAY CHENG 2 594RAS ,000 1/7/ /12/2016 REL ED YANO SATOKO 2 594RAS ,000 5/5/ /8/2016 REL ED SUE VIZE 2 727RAS ,300 30/4/ /12/2016 REL ED VIVEKANANDAN RAMYA 2 727RAS ,761 30/4/ /12/2016 REL ED VIVEKANANDAN RAMYA 2 571RAS1000 2,654,059 8/9/ /12/2017 REL ED MIYAZAWA ICHIRO 2 585RAS ,000 16/12/ /11/2016 REL ED MIAYAZAWA ICHIRO 2 585RAS ,150 16/12/ /11/2016 REL ED MIYAZAWA ICHIRO 2 588THA ,000 12/6/ /5/2017 REL ED MIYAZAWA ICHIRO 2 557RAS ,277 11/8/ /10/2016 REL ED BISTA MIN 2 or 3 506RAS ,229 29/3/ /4/2017 REL SC ZHU WENXI 3 594RAS ,000 1/7/ /12/2016 REL ED VIVEKANANDAN RAMYA 3 201RAS ,200 25/4/ /6/2017 REL ED KATSUNO HAYASHIKAWA MAKI N/A 526RAS ,144 15/8/ /10/2016 TECO ED KIM GWANG JO N/A 585RAS ,567 1/7/ /4/2016 TECO ED MIURA USHIO N/A 594RAS ,950 1/7/ /12/2016 REL ED CHANG GWANG CHOL N/A 594RAS ,000 20/1/ /1/2017 REL ED KIM CHEOL HEE N/A 941THA ,078 13/3/2014 1/1/2016 TECO CLT CURTIS TIMOTHY N/A 526RAS ,547 25/1/ /1/2018 REL SC ZHU WENXI N/A 526RAS ,258 17/9/ /6/2016 REL ED SHIN MYOUNGSUK N/A 49 projects 25,172,769 NB: REL: ongoing; TECO: technically completed, CLSD: closed. Source: External Auditor, based on the self-assessment by the Office 174. The self-assessment showed that most projects were rated 1 (35%) and 2 (43%), which mainly reflects the project officers feeling that project planning and management processes were properly under control.

50 201 EX/21.INF.2 page 47 Chart 7: Qualitative approach to the Office s project portfolio 5.3 A closer examination of two Office projects 175. The External Auditor undertook an in-depth examination of two Office projects representing significant sums (allocations and expenditure) and deliberately selected from different sectors (Education and Culture) and different fields (regional and national for Myanmar) Project 571RAS1000 ED Strengthening Education System for Out-of-School Children 176. The project 571 RAS 1000 ED is the project in the Office s portfolio that has received the highest amount of funding since January Launched in September 2014 and expected to be completed by the end of 2017 totalling 36 months it has been allocated $2,654,059, of which some $962,572 had been assigned as at 6 July UNESCO is expected to contribute an equal amount in kind (human resources and other projects) The project is funded by the Qatar foundation Education Above All, established in 2012 by Princess Sheikha Moza bint Nasser, which accepted the proposal made by the Office in A project agreement was signed on 9 September 2014 by UNESCO s Assistant Director-General for Strategic Planning (ADG/BSP) and the Secretary-General of the Foundation. The project aims to help reintegrate children who have dropped out of primary school into education in the region. The project document (PRODOC), makes specific reference to nine ASEAN countries, with a target population of three million children (or even 3.2 million according to the latest estimate, of whom 1.9 million are in Indonesia) In the office, the project is being managed by the head of the Non-Formal Education and Literacy Unit, a P-3 programme specialist who has occupied this position since As laid down in the project document, this specialist is assisted in this project by two project officers, a programme assistant and two administrative assistants and has also called upon the services of one or two long-term consultants from the beginning The project has been broken down into four components: 1. Studies; 2. Advocacy; 3. Regional capacity development, and 4. Flexible response strategies: Component 1 has resulted in studies, but at the time of the audit (latest 38 C/5 SISTER reporting as at 30/6/2016) only two of the nine studies provided for had been carried out, and only one had been published as a regional report. Component 2 was conducive to a statement on this subject by ASEAN ministers in May 2016 and a declaration of the Heads of State and Government attending the recent ASEAN summit in Vientiane (6 September 2016). Component 3 led to the setting up of a network of officers and specialists for the project (producing a regular newsletter for 2,600 experts and maintaining a Facebook