Eighty-first session
Agenda item 138 of the preliminary list*
Proposed programme budget for 2027
Internal oversight: Proposed programme budget for 2027
Report of the Independent Audit Advisory Committee
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The present report presents the observations, advice and recommendations of the Independent Audit Advisory Committee on the proposed programme budget for 2027 of the Office of Internal Oversight Services (OIOS). The Committee reaffirms its view that effective oversight by OIOS is essential to strengthening accountability and enhancing the Organization¡¯s governance framework. It acknowledges the progress made by OIOS in improving its internal processes, which are critical to fulfilling its oversight mandate, as well as in focusing on efficiencies. The Committee¡¯s observations, conclusions and recommendations continue to be guided by the evolving approach of the Office to addressing risk and coverage in the current environment. The Committee also recognizes that OIOS, like other departments and offices, is operating under reduced resources as part of the UN80 Initiative. Under the circumstances, the Committee supports the proposed programme budget. The Committee reiterates its recommendation that OIOS clearly articulate its assurance objectives, strategy, capacity gaps and resulting residual risks to the Organization during this period of change. The Committee further recommends that OIOS provide transparency to the appropriate stakeholders about gaps in risk coverage that could occur in this environment of constrained resources. |
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I. Introduction
1. The Independent Audit Advisory Committee presents herein its comments, advice and recommendations to the General Assembly, through the Advisory Committee on Administrative and Budgetary Questions, on the proposed programme budget for 2027 of the Office of Internal Oversight Services (OIOS). The report is submitted in accordance with paragraphs 2 (c) and (d) of the Committee¡¯s terms of reference (see resolution , annex).
2. The Committee¡¯s responsibility in this regard is to review the budget proposal of OIOS, taking into account its workplan, and to make recommendations to the General Assembly through the Advisory Committee. The Committee undertook its review of the OIOS work-planning process and the proposed programme budget for OIOS for 2027 during its seventy-third and seventy-fourth sessions, held from 18 to 20 February 2026 and from 7 to 9 April 2026, respectively.
3. The Committee appreciates the efforts of the Office of Programme Planning, Finance and Budget and OIOS to provide the Committee with the relevant documents for consideration. OIOS also provided supplementary information in response to various questions from the Committee.
II. Review of the proposed programme budget for the Office of Internal Oversight Services for 2027
Office of Internal Oversight Service priorities for 2027
4. OIOS noted that the main priorities for the 2027 budget included the review of the following: (a) implementation of the reforms to the management, peace and security and development pillars; (b) strengthening of organizational culture; (c) procurement and supply chain management, including management of fraud and corruption risks; (d) management of mission drawdowns; and (e) strengthening of the protection against retaliation (whistle-blower) system. The Committee was further informed that, in 2027, OIOS would continue to cover the programmes and strategies of the Organization, including cross-cutting areas such as: (a) the provision of support to Member States in the achievement of the Sustainable Development Goals and the implementation of the Pact for the Future; and (b) implementation of the Secretary-General¡¯s strategies on gender equality, racial equality, environmental sustainability, disability inclusion and data.
5. Consistent with the above priorities, the Committee was informed that OIOS continued to develop risk-based workplans that supported the Office¡¯s overall assurance strategy and the attainment of the strategic objectives contained in the programme planning documents. OIOS also informed the Committee that it had developed and tracked a number of performance measures to evaluate measurable outcomes.
6. For the 2027 period, OIOS noted the following: (a) the Internal Audit Division planned to conduct 58 assignments, the same number of assignments that were planned for 2026 (revised after the UN80 Initiative); (b) the Inspection and Evaluation Division had scheduled 13 assignments, slightly higher than the revised number of assignments planned in 2026; and (c) the Investigations Division anticipated opening 548 investigation cases, slightly lower than the 566 cases planned for 2026. Of these cases, the Office aims to complete 131 investigations relating to regular budget entities, an increase from the 110 originally projected in 2025. OIOS further emphasized that it employed a risk-based approach in selecting planned assignments. This approach varies across divisions and is elaborated upon in subsequent sections.
Resource requirements
7. The total projected resources requirement for OIOS for the 2027 fiscal year are $68,202,800, representing a decrease of $3,603,900 (or 5 per cent) compared with the 2026 appropriation of $71,806,700 for 2026 (after the UN80 Initiative). The post resources are expected to increase by 2 posts, under other assessed funds, from 258 to 260 (see table 1).
Table 1
Overall financial and post resources for the Office of Internal Oversight Services, by source of funding (after the UN80 Initiative)
(Thousands of United States dollars/number of posts)
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Financial resources |
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Post resources |
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2026 appropriation |
2027 estimate |
Percentage of the total budget for 2027 |
Variance |
2026 approved |
2027 proposed |
Variance |
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Amount |
Percentage |
Number of posts |
Percentage |
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Regular budget |
23 665.2 |
24 088.5 |
35.3 |
423.3 |
1.8 |
100 |
100 |
¨C |
0.0 |
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Other assessed |
34 278.9 |
30 251.7 |
44.4 |
(4 027.2) |
(11.7) |
113 |
115 |
2 |
1.8 |
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|
Extrabudgetary |
13 862.6 |
13 862.6 |
20.3 |
¨C |
0.0 |
45 |
45 |
¨C |
0.0 |
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Total |
71 806.7 |
68 202.8 |
100.0 |
(3 603.9) |
(5.0) |
258 |
260 |
2 |
0.8 |
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Note: Budget figures are based on and the relevant supplementary information. The figures under other assessed are adjusted to reflect relevant portions of two annual budgets that follow the July-June fiscal period.
8. Table 2 presents the regular budget proposal for OIOS for 2027, compared with the appropriation for 2026. The proposed programme budget for OIOS for 2027 is estimated at $24,088,500, representing an increase of $423,300 (or 1.8 per cent) compared with the 2026 appropriation. The post resources remain constant, at 100 posts.
Table 2
Regular budget financial and post resources, by programme (after the UN80 Initiative)
(Thousands of United States dollars/number of posts)
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Financial resources |
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Post resources |
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2026 appropriation |
2027 estimate |
Percentage of the total budget for 2027 |
Variance |
2026 appropriation |
2027 estimate |
Variance |
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Amount |
Percentage |
Number of posts |
Percentage |
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A. Executive direction and management |
1 533.1 |
1 579.2 |
6.6 |
46.1 |
3.0 |
7 |
7 |
¨C |
0.0 |
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B. Programme of work |
20 750.7 |
21 162.8 |
87.9 |
412.1 |
2.0 |
87 |
87 |
¨C |
0.0 |
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Subprogramme 1. Internal audit |
8 441.9 |
8 597.0 |
35.7 |
155.1 |
1.8 |
36 |
36 |
¨C |
0.0 |
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Subprogramme 2. Inspection and evaluation |
4 548.7 |
4 623.6 |
19.2 |
74.9 |
1.6 |
21 |
21 |
¨C |
0.0 |
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Subprogramme 3. Investigations |
7 760.1 |
7 942.2 |
33.0 |
182.1 |
2.3 |
30 |
30 |
¨C |
0.0 |
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C. Programme support costs |
1 381.4 |
1 346.5 |
5.6 |
(34.9) |
(2.5) |
6 |
6 |
¨C |
0.0 |
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Subtotal |
23 665.2 |
24 088.5 |
100.0 |
423.3 |
1.8 |
100 |
100 |
¨C |
0.0 |
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Note: Budget figures are based on and the relevant supplementary information.
A. Executive direction and management
9. As indicated in table 2, the budget for 2027 for executive direction and management totals $1,579,200, representing an increase of $46,100 (or 3 per cent) compared with the appropriation for 2026, due mainly to adjustments applicable to posts and positions. The share of the total programme budget for executive direction and management is 6.6 per cent.
10. The Committee supports the proposed budget of executive direction and management as presented in table 2.
B. Programme of work
Subprogramme 1
Internal Audit Division
Priorities of the Internal Audit Division
11. The Committee was informed that, for 2027, the objective for the Internal Audit Division was to improve the efficiency, economy, effectiveness and impact of the Organization¡¯s programmes, in keeping with best management practices. The Division¡¯s strategy to contribute to this objective will include the following: (a) conducting internal audit activities to recommend improvements in key controls and processes and identify accountability issues, with a strengthened focus on providing assurance regarding the effectiveness and efficiency of programme performance monitoring and reporting, as well as the organizational capabilities required for Secretariat entities to implement their mandates more effectively and efficiently; (b) supporting management efforts to strengthen the Secretariat¡¯s accountability system; (c) focusing on data governance and data security in the use of information and communications technology in the Organization; (d) strengthening annual work-planning processes by identifying and monitoring audit assignments that systematically cover United Nations cross-cutting priorities in the management, programme and strategy areas; and (e) implementing recommendations from the audit assessment of the internal audit function. These strategic initiatives remain largely unchanged from the prior year.
12. The above priorities are expected to result in the following outcomes: (a) strengthened accountability and transparency in the use of resources by United Nations organizations and entities; (b) improved risk identification and mitigation by United Nations organizations and entities; and (c) high-quality internal audit assurance provided to the Secretary-General, heads of organizations and entities and Member States on the adequacy and effectiveness of risk management and internal control systems. These expected results remain unchanged from the prior year.
13. To support those objectives, the proposed programme budget for subprogramme 1, Internal audit, for 2027 is $8,597,000, which represents 35.7 per cent of the total proposed programme budget for OIOS. This amount reflects a 1.8 per cent increase from the $8,441,900 approved for 2026, due mainly to adjustments to standards applicable to posts and positions. The number of posts remain unchanged, at 36 (see table 2).
Workplan implementation
14. With respect to the 2025 workplan implementation, OIOS indicated that the Internal Audit Division planned to conduct 60 assignments: 44 under the regular budget (including 42 assurance and 2 advisory engagements) and 16 funded from extrabudgetary sources. According to OIOS, as at 31 December 2025, 45 assignments had been completed and 15 were carried forward to 2026 (see table 3).
15. With respect to the 2026 workplan, the Internal Audit Division planned 58 assignments: 39 regular budget assignments (36 assurance and 3 advisory) and 19 extrabudgetary (18 assurance and 1 advisory). A total of 49 assignments (35 regular budget and 14 extrabudgetary) are expected to be completed by the end of the year and 9 will be carried forward to 2027 (see table 3).
Table 3
Status of implementation of the Internal Audit Division workplan as of April 2026
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2024 workplan |
2025 workplan |
2026 workplan |
2027 workplan |
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Number of assignments brought forward |
20 |
23 |
15 |
9 |
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Number of planned new assignments |
48 |
37 |
43 |
49 |
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Total assignments |
68 |
60 |
58 |
58 |
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Assignments completed or to be completed during the budget year |
45 |
45 |
49 |
49 |
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Assignments carried forward |
23 |
15 |
9 |
9 |
Risk-based work planning process and the capacity analysis
16. The Committee continued to hold discussions with OIOS on its risk-based planning process, especially in the light of constrained resources available. The stated strategy of OIOS for the Internal Audit Division is to cover high-risk areas every three years and medium-risk areas every five years. The Committee was told that OIOS was continuing to handle the highest risks within reasonable time frames. OIOS leadership further informed the Committee that risks were regularly reevaluated to adjust the programme of work on the basis of the highest risks and the level of audit response that was feasible with the available resource levels, and that OIOS would communicate with the appropriate parties and the Committee if OIOS were unable to sufficiently cover high risks or fulfil its mandate.
17. Within the context of its work-planning methodology, OIOS informed the Committee that the Internal Audit Division had assessed resource requirements in the light of the UN80 Initiative. OIOS further noted that, under the UN80 Initiative, the Division was reprioritizing its strategy to promote continuous improvement and foster a culture of efficiency across the Organization. This will be achieved through a renewed focus on areas that have a direct impact on operational efficiency and resource optimization. Accordingly, audit activities will prioritize the assessment of processes that contribute to improved efficiency and streamlined workflows. This approach is intended to ensure that the Organization leverages the reform measures effectively to enhance overall performance and sustainability.
18. The Committee noted the efforts of OIOS to direct Internal Audit Division activities to the highest risks, given the resource constraints and the relative risks being addressed. The Committee¡¯s view is that OIOS should more clearly communicate the process of the Division¡¯s reassessment of risks and the related impact of changes in priorities and risk coverage that result from constraints on financial or human resources. The Committee urges OIOS to continue to prioritize its assignments strategically, on the basis of areas of highest risk and impact, thereby maximizing the effectiveness and relevance of its engagements. The Committee also emphasizes the need for OIOS to alert the appropriate parties of the potential risks if the available resources of OIOS are not sufficient to fulfil its mandate.
19. The Committee endorses the programme budget proposal of $8,597,000 and a post resource level of 36 posts for subprogramme 1, Internal audit, as presented in table 2.
Subprogramme 2
Inspection and Evaluation Division
Priorities of the Inspection Evaluation Division
20. The Committee was informed that the objectives of the Inspection and Evaluation Division for 2027 were to strengthen relevance, efficiency, effectiveness and impact in the implementation of programmes and legislative mandates of the Organization and to improve decision-making, accountability and learning. These priorities remain unchanged from the previous year.
21. To achieve those objectives, the Inspection Evaluation Division plans to: (a) conduct evaluations that focus on programmatic results and outcomes achieved by Secretariat entities in the areas of peace and security, sustainable development, human rights and humanitarian assistance; (b) support accountability for programme improvement through monitoring of the implementation of evaluation recommendations and their outcomes; (c) integrate the Secretary-General¡¯s cross-cutting strategies into evaluation design and implementation; (d) refine its inspection and evaluation methodology and further develop and strengthen evaluation design and data collection and analysis methods; (e) provide evaluation methodological guidance and quality assurance support to Secretariat entities and to the wider Organization, including through collaboration with the Department of Management Strategy, Policy and Compliance and by developing and implementing community of practice workshops, methodology seminars and other capacity-building measures; (f) enhance evaluation knowledge-sharing through the production of the biennial report on strengthening evaluation, evaluation newsletters and evaluation synthesis reports; and (g) support system-wide evaluation through collaboration with the United Nations Sustainable Development Group System-wide Evaluation Office. The Division further indicated that the plans were developed through risk-based planning, as explained below. These areas of focus remain unchanged from the previous year.
22. The planned work is expected to result in: (a) increased learning and accountability of Secretariat entities towards achieving their planned programmatic outcomes; and (b) strengthened evaluation capacity and performance and greater use of evaluation results to inform programme planning and achieve results within the Organization.
23. As shown in table 2, to achieve the above priorities, the proposed programme budget for 2027 for subprogramme 2, Inspection and evaluation, amounts to $4,623,600, which represents 19.2 per cent of the total proposed programme budget for 2027 for OIOS and is 1.6 per cent higher than the 2026 appropriation of $4,548,700, due mainly to adjustments to standards applicable to posts and positions. The post resources remain the same, at 21 posts.
Workplan implementation
24. OIOS informed the Committee that, in 2025, 11 regular budget and extrabudgetary assignments had been completed. These included 10 started in 2024 and completed in 2025 and 1 started and completed in 2025. A further 11 started in 2025 and are slated for completion in 2026 (see table 4).
Table 4
Status of implementation of the Inspection Evaluation Division workplan as of April 2025
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|
2024 workplan |
2025 workplan |
2026 workplan |
2027 workplan |
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|
|
|
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Started in previous year and completed in current budget year |
9 |
10 |
11 |
9 |
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Started and projected to be completed in current budget year |
3 |
1 |
1 |
1 |
|
Total completed in budget year |
12 |
11 |
12 |
10 |
|
Started in current and projected to be completed in next budget year |
10 |
11 |
9 |
9 |
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Total planned assignments |
22 |
22 |
21 |
19 |
25. As regards the 2026 workplan, OIOS noted that 12 assignments were planned for completion in 2026, including 11 carried over from 2025. In addition, 9 assignments initiated in 2026 are scheduled for completion in 2027, with a further 10 assignments to commence in 2027 and be completed in 2027 or 2028 (see table 4).
Risk assessment and the work-planning process for 2027
26. OIOS informed the Committee that the Inspection and Evaluation Division continued to focus on subprogramme-level outcomes, on the basis of five key risk criteria: resources; entity evaluation; oversight coverage; OIOS risk assessment; and strategic relevance. The Committee further noted that, within the overall context of the UN80 Initiative, those criteria enabled OIOS to identify subprogrammes that presented more immediate or higher risks and that, therefore, required evaluation within the next two budget cycles.
27. The Committee was also informed that the UN80 Initiative and the financial situation had an impact on the Inspection and Evaluation Division, resulting in, among others: (a) a reduced number of outputs, particularly triennial reviews; (b) reduced mission travel, affecting data collection from external stakeholders and beneficiary populations on programme outcomes; and (c) fewer evaluation support activities.
28. The Committee urges OIOS to monitor the risks posed by these constraints and calls upon OIOS to provide transparency to the appropriate stakeholders on the impact on its risk coverage and support for evaluation functions across the Organization.
29. The Committee supports the 2027 resource requirements for subprogramme 2, Inspection and evaluation, as presented in table 2, acknowledging the need to sustain critical oversight functions. At the same time, as was the case with subprogramme 1, Internal audit, the Committee urges OIOS to continue to prioritize its assignments strategically, ensuring that available resources are directed to areas of highest risk and impact, thereby maximizing the effectiveness and relevance of its evaluations.
Subprogramme 3
Investigations Division
Priorities of the Investigations Division
30. According to OIOS, the objective of the Investigations Division is to contribute to enhanced accountability and ethical behaviour within the Organization. To address this, the Committee was informed that the Division intended to: (a) receive and record all complaints of possible violations of United Nations regulations, rules and pertinent administrative policies and decide whether they warranted OIOS investigation or some other action; (b) investigate reports of possible violations; (c) enable the prevention of and response to complaints of misconduct, including sexual exploitation and abuse and sexual harassment, and fraud and corruption (including procurement fraud and medical insurance fraud); and (d) support the investigative capacity and capability of (i) members of troop contingents who are responsible for undertaking investigations into misconduct; and (ii) officials who are responsible for the appointment of investigative panels into misconduct. These objectives remain unchanged from the prior year.
31. The above priorities are expected to improve decision-making on jurisdictional or disciplinary action or corrective measures, improve the ability of United Nations entities to identify and address misconduct, and improve the detection of issues and control of risks such as sexual exploitation and abuse, sexual harassment, racial discrimination and fraud and corruption.
32. In addressing those priorities, the Investigations Division expects to spend $7,942,200 in 2027, representing a 2.3 per cent increase from the 2026 appropriation, due mainly to adjustments to standards applicable to posts and positions. The Division¡¯s share of the total OIOS proposed regular budget will be 33 per cent.
33. In reviewing the regular budget for the Investigations Division, the Committee also continues to be cognizant of the OIOS position that the workforce plan/capacity analysis and the resource analysis for the Investigation Division were based on the entire investigation portfolio rather than the funding source.
34. The Committee reviewed trend analyses provided by the Investigations Division, which, according to OIOS, informed the development of the 2027 fiscal year workplan. The Committee examined data on investigation intake levels, referrals and open cases. It was noted that, on the basis of 478 complaints received by the end of March, intake levels in 2026 were projected to reach 2,077 by year end, a slight increase compared with 2025. Of these, some 548 (26 per cent) are expected to result in an OIOS investigation, with another 921 (44 per cent) referred by OIOS for action by management or another entity (see the figure below). Most of the remaining 608 (29 per cent) will likely not require investigation or any other action and will therefore be closed.
Intake trends of the Investigations Division
Note: OIOS data provided to the Committee.
35. The Committee expressed concern about the limited resources available to manage the rising caseload and recommended a holistic root cause analysis to understand why the increase in caseload continued and whether mitigating action could be taken by management and Member States to address factors that were contributing to the ever-increasing caseload. At the same time, the Committee noted that staff needed to feel free to raise concerns to OIOS and that all staff had the right to due process.
36. The Committee reiterates its concerns over the upward trend in the number of complaints received by the Investigations Division, which are projected to increase slightly in 2026. The Committee recommends that OIOS continue to work with stakeholders to analyse its caseload to gain insights into the possible root causes for the ever-increasing number of cases. In the meantime, the Committee further recommends that OIOS continue to enhance the prioritization of high-risk and high-impact cases to manage the growing backlog more effectively, while exploring opportunities to streamline investigative processes.
Capacity analysis
37. The Committee was further informed that OIOS was continuing to implement several measures to improve efficiency and reduce average case completion times and the average age of ongoing cases, both of which had been going down since 2024. The Committee was informed, for example, that the average completion time of an investigation had declined from a high of 15 months in 2023 to 10.3 months as at 31 March 2026. The ageing of cases also declined, from a high of 11.5 months in 2022 to 7.2 months as at 31 March 2026. The Committee notes these developments and will continue to review this progress in the light of the quality of the work and other performance matrices.
38. Notwithstanding those improvements, OIOS noted that, owing to the liquidity crisis and the subsequent recruitment freeze, only 5 of the 13 new investigation positions approved in 2025 had been filled. The Committee was further informed that the implementation of reductions resulting from the UN80 Initiative might be expected to lead to an increase in complaints for several reasons, as follows: (a) personnel feeling unfairly treated; (b) heightened uncertainty and stress among personnel giving rise to interpersonal conflicts in the workplace; and (c) organizational change resulting in a more permissive internal control environment, increasing the risk of misconduct, including fraud, theft and other personnel-related issues.
39. In this context, OIOS is tracking UN80 Initiative-related complaints and will continue to monitor timelines for the intake, assessment and investigation of complaints to ensure that the quality and accuracy of its work are not adversely affected.
40. The Committee expresses concern regarding the potential impact of resource constraints on the timeliness of investigations, particularly in the context of an anticipated increase in complaints arising from organizational restructuring. The Committee recommends that OIOS take mitigating measures to manage investigation backlogs and prioritize cases on the basis of risk and materiality.
41. In view of the above and given the prevailing financial situation, the Committee endorses the resource levels of $7,942,200 and 30 posts for subprogramme 3, Investigations, as shown in table 2.
C. Programme support
42. The proposed budget of $1,346,500 for programme support, which is 5.6 per cent of the total regular budget for 2027, represents a decrease of $34,900 (or 2.5 per cent) compared with 2026, due mainly to changes in assigning the costs associated with service-level agreements. Post resources are expected to remain unchanged. The Committee supports the proposed budget for programme support as presented in table 2.
III. Conclusion
43. Under the circumstances, the Committee supports the proposed budget at this time. The Committee reiterates its recommendation that OIOS clearly articulate its assurance objectives, strategic priorities, capacity constraints and the resulting residual risks to the Organization, particularly in the context of ongoing reforms and resource limitations. The Committee further calls upon OIOS to ensure transparency to relevant stakeholders regarding any gaps in risk coverage arising from these constraints.
44. The members of the Independent Audit Advisory Committee respectfully submit the present report containing its comments and recommendations for consideration by the General Assembly.
(Signed) Suresh R. Sharma
Chair, Independent Audit Advisory Committee
(Signed) Jeanette Franzel
Vice-Chair, Independent Audit Advisory Committee
(Signed) Eric O. Osae
Member, Independent Audit Advisory Committee
(Signed) Sylvia P. Mendoza Elguea
Member, Independent Audit Advisory Committee
(Signed) Denis Strizheusov
Member, Independent Audit Advisory Committee
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