Audit costs

(iii) Audit costs

(a) Audit costs

Total audit costs

External audit costs.

Under the cost sharing arrangements, it is estimated that approximately one half of external audit costs are expended on the audit of administrative operations and one half on investment operations.

(c) Audit costs, which cover both internal and external audit costs in both the administrative and investment areas.

Total administrative, investment and audit costs

Audit services (total costs)

Provision of 69,700 is made to cover the cost of external audit

The total audit costs for the biennium 1998 1999 amounted to 924,300, of which 527,100 was for internal audits and 397,200 for external audits.

Provision is made for the cost of external audit services ( 94,700).

The reduction in the estimated costs of external audit reflects a reduced provision by the Board of Auditors ( 27,000).

The provision under audit costs reflected a reduction in the costs of both external and internal audit, reflecting the resource levels recommended by the Board of Auditors and the Office of Internal Oversight Services.

Provision is made for the estimated cost of external audit for the budgeted period.

Based on the biannual estimated cost for external audit.

The estimate covers the cost of external audit for the Force ( 53,400).

Table I.1 Total cost of external audits (United States dollars)

Provision is made in the amount of 58,000 for external audit services.

The provision under this heading covers one audit.

In order to determine the breakdown of the audit costs, based on the experience with external audits, it had been determined that 50 per cent of the audit work related to the investment area. Therefore, 50 per cent of the full cost of investment audits would be borne by the Fund, and one third of the remaining 50 per cent of audit costs would be borne by the United Nations.

Provision is made for two audits during the period.

(iii) Internal audit travel, 16,000 (two auditors for 21 days each at 8,000 each)

utilization of a third courtroom

An amount of 66,700 is also included for external audit under line item 10 (a), audit services.

Table I.2 Actual audit costs compared to available resources (United States dollars)

This estimate covers the cost of external audit services.

Administrative audit costs chargeable to the United Nations regular budget are estimated at 102,400 those relating to the administrative audit of the Fund are budgeted at 204,800 and those to cover the audit of investment operations are also estimated at 204,800 and budgeted under the investment costs of the Fund.

(g) An increase of 149,800 for audit costs, owing to the proposed changes in the UN UNJSPF cost sharing arrangements, comprising 141,000 under external audit and 8,800 under internal audit (see paras. 161 and 166, table).

The amount of 1,657,900 covers the estimated requirements for external audit ( 462,400) as requested by the Board of Auditors, and for internal audit ( 1,195,500) as requested by the Office of Internal Oversight Services.

For 2004 the cost of audit services was approximately US 2.1 million.

The United States delegation wondered whether the lower estimated cost of external audits by the Board of Auditors reflected reduced audit coverage or better audit efficiency.

This estimate covers the cost of external audit service for the Force.

The additional resources under this heading are attributable to increased requirements for freight forwarding, customs clearance services and the higher cost of inland transportation, as well as the increased cost of the external audit of UNFICYP, as estimated by the Board of Auditors.

This provision is to cover the cost of auditing both the administrative and the investment operations of the Fund.

The Office proposes to include those audits in the comprehensive management audit and to utilize the foreseen resources in the support account budget towards the resource requirements for the comprehensive management audit of the Department of Peacekeeping Operations.

Provision is made in the amount of 29,000 for external audit services.

(ix) Review of extrabudgetary cost plans and trust fund proposals

The cost estimates for the period under review were based on an authorized strength of 3,980.

Provision is made for the estimated share of UNMOT for external audit services that will be undertaken during the period ( 33,600).

The auditors recommended that other, less costly alternatives be explored.

This amount was inclusive of extrabudgetary costs amounting to 642,400 to be funded by a number of member organizations and comprised 35,671,100 for administrative costs, 43,014,100 for investment costs and 1,443,200 for audit costs.

Provision is also made for the travel of two auditors to the mission area for 14 days ( 10,400).

In the first quarter of 2006, member States are expected to volunteer to be audited and it is anticipated that there could be 20 to 30 audits during the 2006 2007 biennium.

The amount allocated was fully obligated to cover the cost of the external audit conducted during the reporting period.