DECISION ON AUDIT MATTERS
Doc. EX.CL/992(XXX)iii
The Executive Council,
1. TAKES NOTE of the Report of the PRC Sub-Committee on Audit Matters and, ENDORSES the recommendations contained therein;
ON THE FINANCIAL STATEMENTS OF THE AU ORGANS AND AGENCIES FOR THE YEAR ENDED 31 DECEMBER 2015
2. CALLS UPON each of the AU organs (i.e. African Union Commission-AUC, Pan African Parliament-PAP, NEPAD Planning and Coordinating Agency-NPCA, African Court on Human and Peoples’ Rights-AfCHPR, African Commission for Human and Peoples’ Rights ACHPR, and African Union Advisory Board on Corruption-AUABC) to:
i) address the issues raised under their respective Audited Financial Reports;
ii) ensure that corrective actions are undertaken to resolve the weaknesses observed by the AU Board of External Auditors (BOEA); and
iii) prepare a roadmap on the implementation of IPSAS to ensure full compliance by the year 2018 as per the International Public Sector Accounting Standards (IPSAS) requirements.
3. REQUESTS the Commission to:
i) publish the 2015 Audited and Approved Financial Statements on the AU website in compliance with IPSAS requirements; and
ii) report on the implementation of this decision during the AU Summit of July 2017.
ON THE AUDIT OF AU GENERAL & RESERVE FUND AS AT 31st DECEMBER 2015
4. DIRECTS the Commission to address the issues raised by the PRC including the following:
i) Address the issues raised in the audit report and implement the recommendations accordingly;
ii) Undertake, annually, a complete audit of the two abovementioned Funds and report to the PRC through its Sub-Committee on Audit Matters accordingly;
iii) Always submit requests for approval to PRC before passing payments to the General and Reserve Funds as per the requirements of tne AU Financial Rules and Regulations.
5. DIRECTS the AU organs to ensure implementation of the Matrix on Implementation of Audit Recommendations in line with Decision EX.CL/Dec. 877(XXVII) adopted by the Executive Council;
6. DIRECTS the AU Board of External Auditors to carry out a complete audit of the General and Special Funds for the period 2009-2015 and submit a report to the Executive Council through the PRC;
7. ALSO DIRECTS the AU Board of External Auditors to:
i) conduct an investigation on the irregularities identified in the audit report of the General and Reserve Funds (2009-2015) with a view to establishing responsibilities;
ii) investigate the culprits of financial mismanagement and make appropriate recommendations for consideration by the Executive Council through the PRC;
8. FURTHER DIRECTS the Commission to report on the implementation of this decision during the next Session in July 2017;
ON THE AUDIT OF COMMISSION BUDGET PERFORMANCE FOR THE PERIOD 1 JANUARY - 30 JUNE 2016
9. DIRECTS the Commission to address the issues raised by the PRC including the following matters:
i) Implementation of the decision on financing the Union should be pursued vigorously for funding the Union’s programmes to ensure availability and predictability of funds;
ii) Engage Partners on Overall Programme Budget Support to the Union rather than financing of individual projects and/or budget lines;
iii) Put in place effective systems and measures to improve budget execution and performance;
iv) Strictly comply with the AU Financial Rules and Regulations with regards to approval of supplementary budget.
10- URGES Member States to honour their assessed contributions in a timely manner to enable the Commission implement its projects effectively and efficiently;
11. DIRECTS the Commission to report on the implementation of this decision during the next ordinary session in July 2017.