VZCZCXRO7902
RR RUEHRN
DE RUEHRN #0015/01 0361836
ZNR UUUUU ZZH
R 051836Z FEB 10
FM USMISSION UN ROME
TO RUEHC/SECSTATE WASHDC 1279
INFO RUEHRC/USDA FAS WASHDC
RUCNDT/USMISSION USUN NEW YORK 0476
RUEHBS/USEU BRUSSELS 0310
RUEHUNV/USMISSION UNVIE VIENNA 0068
RUEHRO/AMEMBASSY ROME 0519
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHRN/USMISSION UN ROME 1356

UNCLAS SECTION 01 OF 02 UN ROME 000015 
 
SIPDIS 
 
USAID FOR DCHA, FFP 
USDA FOR DOUVELIS 
STATE FOR IO/HS FOR TUMINARO, RUSSELL AND IO/MPR 
TREASURY FOR LIZA MORRIS, PRIYA GANDHI 
 
E.O. 12958: N/A 
TAGS: WFP FAO PREL UN EAID EAGR
SUBJECT: 131ST SESSION OF THE FAO FINANCE COMMITTEE - WFP MATTERS 
 
¶1.   On February 1, the 131st session of the FAO Finance 
Committee, of which the U.S. is a member, discussed a number of 
budgetary and financial matters of the World Food Program which 
will be presented to the First Session of the WFP Executive 
Board February 8 through 11.  The Committee discussed six 
documents:  Selection and Appointment of the WFP External 
Auditor, Revised Fee for the External Auditor for the Biennium 
2008-2009, Report of the External Auditor on the Strategic 
Planning and Reporting at a WFP Country Office - Uganda and 
Management Reponses, Report on the External Auditor on the IPSAS 
Dividend:  Strengthening Financial Management and Reponses of 
the Secretariat, Update on the WFP Biennial Management Plan 
(2010-2011) and Final Update on the WINGS II Project. The 
Committee postponed review of the Update on the Financial 
Framework Review:  Program Categories due to the paper's late 
submission by WFP.  [Note: Underlying the discussion, however, 
was the concern expressed by the U.S. and Australia that this 
specific document did not fall under the purview of the Finance 
Committee because the subject matter related to definition of 
emergency and recovery rather than financial issues.] 
 
 
 
¶2.   On Appointment of the External Auditor, the WFP Secretariat 
explained that the delay in the appointment process for WFP's 
new external auditor (to commence term July 2010) was due to 
more extensive participation in the process by the WFP Audit 
Committee under their new terms of reference.  A recommendation 
for a new external auditor would be ready for the Committee at 
their April 2010 meeting. The U.S. questioned whether there 
would be sufficient time between the selection of the next 
External Auditor at the Annual Session of the Executive Board in 
June 2010 and the appointment of the External Auditor on July 1 
to ensure appropriate handover.  The President of the Executive 
Board responded that the current External Auditor had been 
ensured that the new timeline would be sufficient for an 
appropriate handover.  The Committee also discussed the revised 
fee for the current WFP external auditor which resulted from 
additional work required with implementation of International 
Public Sector Accounting Standards (IPSAS) in 2008 and the 
rollout of WFP's new enterprise resource planning (ERM) system 
WFP Information Network and Global System (WINGS II) and 2009. 
The WFP Secretariat informed that future contracts with audit 
bodies would include price ceilings which could not be exceeded 
without explicit approval in advance from the Executive Board. 
 
 
 
¶3.   On the external auditor's report on strategic planning and 
reporting at a WPF country office - Uganda and Management 
Response, the Committee recommended that WFP thoroughly discuss 
with the Executive Board the audit recommendation that the WFP 
Executive Board review and approve country strategies in lieu of 
country programs.  [Note:  It is our understanding that the move 
to Board review of country strategies only emanated from 
discussions of the UN Secretariat.  USUN Rome will monitor the 
discussion via USUN New York to determine implications for Rome 
governing bodies.]  On the report on the external auditor on the 
IPSAS dividend, strengthening financial management and response 
of the secretariat, the Committee noted the absence of the 
external auditor during the Committee's discussion and 
recommended that the external auditor participate in any future 
meetings in which the auditor's work is being considered.  The 
Committee also welcomed WFP's acceptance of all audit 
recommendations, including more frequent review and analysis by 
WFP senior management of financial information and metrics. 
 
 
 
¶4.   During discussion on the Update on the WFP Biennial 
Management Plan (2010-2011) which outlines increases in WFP's 
Program of Work for 2010 of USD 595 million, the Committee 
learned that WFP now has plans to update the Haiti requirements 
to USD 800 million.  The Committee looked forward to reviewing 
the forthcoming report on a lessons-learned exercise on WFP's 
hedging strategy planned for June 2010.  On the final WINGS II 
report, the Committee learned that following the ERM system 
rollout in 2009, an assessment of the project's value and 
benefits will be carried out by the Performance and 
Accountability Management Division and will be aligned to the 
annual performance reporting cycle for 2010.  In the future, 
reporting on WINGS II will be incorporated into other WFP 
reports to keep the Board informed. 
 
UN ROME 00000015  002 OF 002 
 
 
 
 
 
¶5.   The Committee is tentatively scheduled hold its 132nd 
session from April 12 to 16 in Rome.  To view the complete 
report on the 131st session, see 
http://one.wfp.org/eb/docs/2010/wfp212924~1.p df. 
COUSIN