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Cablegate: Untai: Itu Steps Forward On Access to Internal Audit

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RR RUEHWEB

DE RUEHGV #0825 2800650
ZNR UUUUU ZZH
R 060650Z OCT 08
FM USMISSION GENEVA
TO RUEHC/SECSTATE WASHDC 7226
INFO RUCNDT/USMISSION USUN NEW YORK 2835
RUEHRO/AMEMBASSY ROME 5730
RUEHVI/AMEMBASSY VIENNA 2819
RUEHFR/AMEMBASSY PARIS 3345

UNCLAS GENEVA 000825

SIPDIS

E.O. 12958: N/A
TAGS: AMGT AORC KUNR ITU
SUBJECT: UNTAI: ITU STEPS FORWARD ON ACCESS TO INTERNAL AUDIT
REPORTS AND IPSAS IMPLEMENTATION

1. The International Telecommunication Union (ITU) Council Working
Group on Financial Regulations (FINREGS) met on October 1 and
approved the U.S. proposal to modify ITU financial regulations to
permit ITU Member states access to internal audit reports. The
proposal will be considered and most likely approved at the ITU
Council meeting in November. The ITU Secretariat will draft an
implementing rule and present it at the next FINREG meeting in the
Spring. The proposal met no objection while Canada and Australia
voiced support. Switzerland opposed distribution of reports but
agreed to support member access only.

2. At the external auditor's request, FINREGS also approved a
specific resolution approving the transition to the International
Public Sector Accounting Standards (IPSAS). The external auditor
did not recognize the previous approval which had only been the
members noting an informational document. In addition, the FINREGS
approved a motion to propose to council to begin the rotation of the
external auditor. External auditors are appointed by the Plenipot,
therefore any change of auditor will not be approved until the ITU
2010 Plenipot. In regards to improved access to procurement
information, the Secretariat noted that this would require
additional software and once the transition to the new procurement
system was complete, the ITU could consider its purchase. Russia
proposed a results-based management scorecard for ITU. They also
mapped the key performance indicators (KPIs) of each of ITU's three
sectors providing a clear picture for members of the overlap between
divisions.

3. The access to external audit reports was lacking in ITU's UN
Transparency and Accountability Initiative (UNTAI) compliance
previously, and so represents a positive step. We hope that
whistle-blower protection and financial disclosure policies will be
ready for council consideration; the Secretariat has consulted us on
those policies.

TICHENOR

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