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PERMANENT COUNCIL OF THE OEA/Ser.G

ORGANIZATION OF AMERICAN STATES CAAP/GT/RVPP-151/12 add. 1-a

16 April 2012

COMMITTEE ON ADMINISTRATIVE Original: English/Spanish

AND BUDGETARY MATTERS

Working Group on the Review

of OAS Programs

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PROPOSALS ON THE DRAFT RESOLUTION “AMENDMENTS TO CHAPTERS VIII AND IX OF THE GENERAL STANDARDS TO GOVERN THE OPERATIONS OF THE GENERAL SECRETARIAT: THE INSPECTOR GENERAL CAAP/GT/RVPP-151/12 ADD. 1 CORR. 1,”
PRESENTED BY THE DELEGATIONS AT THE INFORMAL MEETING OF APRIL 12, 2012

Proposal by the Dominican Republic

Addition to Article 114-as introduction

From Executive Order 95-05

1. It is the General Secretariat's policy to maintain an efficient and independent internal audit system to assist the Secretary General and the governing bodies in monitoring both proper fulfillment of the responsibilities of the various levels of management with respect to the General Secretariat’s programs and resources and adherence to the legal system governing the General Secretariat.

2. The General Secretariat’s internal audit policies and system are established in the document entitled Declaration of Responsibility, Purpose, and Authority with respect to Internal Audits, which is attached as an integral part of this Executive Order.

3. The internal audit function detailed in the Declaration shall be the responsibility of the Office of the Inspector General. The Office shall be composed of the Inspector General, who shall direct it; a Deputy Inspector General, responsible for assisting the Inspector General and replacing him in his absence; and professional staff qualified for specific areas. The Inspector General and the Deputy Inspector General shall be versed in one or more of the following professions: auditing, accounting, law, business administration, and public administration. All of the Office’s professional staff shall perform their duties in accordance with the Standards for the Professional Practice of Internal Auditing approved by the Institute of Internal Auditors

Proposal by Mexico

Proposal 1

Article 117. Internal Audit. The Office of the Inspector General shall be the dependency responsible for exercising the functions of financial, administrative, and operational auditing, for the purpose of determining the level to which the General Secretariat achieves the objectives of diverse programs and the efficiency and economy with which resources are used and obtained, as well as making recommendations to improve management of the General Secretariat.

To achieve the aforementioned purpose, the Inspector General shall establish appropriate internal auditing procedures to verify compliance with the standards and regulations in force, through critical, systematic, and impartial examination of official transactions and operational procedures related to the resources administered by the General Secretariat. To that end, the Secretary General shall issue an Executive Order regulating such activities.

Proposal 2

Article 120. Appointment, length of appointment, and removal of the Inspector General

b. In the event the Inspector General’s post becomes vacant, the Secretary General may appoint an Interim Inspector General, who shall perform these functions until such time as the company responsible presents the short list and the Secretary General appoints the Inspector General from among the candidates proposed.

Proposal 3

Article 121. Audit Reports. The Inspector General shall provide the Secretary General with reports on the audits and inspections he or she conducts. These reports shall be made available to the Permanent Council, which shall take such measures of confidentiality as it deems necessary.

The Inspector General shall present reports quarterly and annually to the Permanent Council on the observations and recommendations emanating from the audits conducted, as well as on measures taken by the General Secretariat to implement them. Likewise, said reports shall pay particular attention to proposals made by the Board of External Auditors and to the adequacy of the resources allocated to auditing and inspection functions.

Proposals by the United States

Article 117. Internal Audit. The Secretary General, in consultation with the Inspector Secretary General, shall establish appropriate internal auditing procedures in line with international best practices to verify compliance with standards and regulations in force, especially, through systematic and selective examination of official transactions and operational procedures related to the resources administered by the General Secretariat. To that end, he the Secretary General shall issue an Executive Order regulating such activities

Article 1198. The Inspector General. The Inspector General is responsible for carrying out the audit and investigation functions mentioned above. To that end, he shall enjoy the operational independence needed to initiate, perform, and report to the Permanent Council and to the Secretary General on the audits and investigations, as well as the overall effectiveness of the inspection function including performance and qualifications of staffinspections, and evaluations required to ensure the correct use and administration of the Organization's resources and to safeguard its assets. He shall also enjoy operational independence to review the credentials of his Staff, as well as to hire and terminate staff as deemed necessary

Article 120. Appointment, length of appointment, and removal of the Inspector General.

ii. The process of selecting the candidates for Inspector General shall be conducted by an internationally prestigious company specializing in human resources and executive recruitment, selected by the General Secretariat for this specific purpose.

v. In selecting the candidates, paramount consideration shall be given to competence and integrity with due regard for the principles of rotation and equitable geographical representation that are priorities in the Organization.

Article 12119. Audit reports. The Secretary General shall instruct the Inspector General to present reports on the evaluations, audits and investigations he carries out. Such reports could shall be made available to the Permanent Council, which shall take such measures of confidentiality as it deems necessary