Audit identifies lack of rules for advance payments to partners at UNODC
UN Board of Auditors recommends that the United Nations Office on Drugs and Crime adopt specific guidelines for single-installment agreements
By Secom / Serint
An audit conducted at the United Nations Office on Drugs and Crime (UNODC) by the AuditaONU team found that, in 2024, the organization repeatedly released full advance payments to partners without requiring evidence that implementation milestones had been achieved and without clear internal guidelines to support such payments.
Of the 220 agreements signed, 97 were structured as single-installment arrangements paid in full upon the first request, before the delivery of the contracted products. These contracts are worth approximately US$5.8 million.
UNODC's partnership policy stipulates that new installments may only be released after the project manager has approved the expense reports. The organization's guide emphasizes that it is the manager's responsibility to ensure proper accountability for advance amounts. However, internal guidelines and manuals do not specify minimum documentation or conditions for authorizing full advance payments, nor do they require reinforced verification for higher-risk transactions.
Recommendations
According to the UN Board of Auditors, payment in installments is an essential financial control mechanism, as it increases the probability that funds will be used in accordance with the purpose of the contract. The absence of formal rules for full advance payments, on the other hand, concentrates the decision in the hands of the manager and increases the risk of fund misuse.
Given this scenario, the Board recommended that UNODC establish internal guidelines with specific provisions for single-installment agreements to strengthen governance and transparency in partnership management.
Why this matters
With US$576.7 million in revenue and US$484.8 million in expenditures in 2024 resulting in a US$91.9 million surplus the United Nations Office on Drugs and Crime is one of the UN's leading agencies promoting security, justice, and public health. UNODC operates in more than 150 countries and territories, implements programs to combat drug and human trafficking, prevent organized crime and corruption, and support vulnerable communities.
The organization carries out its activities through partnerships with governments, international organizations, and civil society entities. Consistency and transparency in managing these partnerships are therefore essential to ensure effectiveness, innovation, and institutional accountability of the organization's activities.
UN Board of Auditors
In July 2024, the Brazilian Federal Court of Accounts (TCU) represented the country as a member of the United Nations Board of Auditors. Alongside the Supreme Audit Institutions (SAIs) of France and China, the TCU conducts external audits of the UN's finances, funds, programs, and peacekeeping missions, issuing recommendations to improve governance and resource management.
In addition to UNICEF, Brazil audits the following UN agencies: United Nations Entity for Gender Equality and the Empowerment of Women (UN Women), United Nations Population Fund (UNFPA), United Nations Institute for Training and Research (UNITAR), United Nations University (UNU), United Nations Joint Staff Pension Fund (UNJSPF), United Nations Office at Vienna (UNOV), United Nations Office on Drugs and Crime (UNODC), International Residual Mechanism for Criminal Tribunals (IRMCT), and peacekeeping missions in Lebanon (UNIFIL), Cyprus (UNFICYP), and Kosovo (UNMIK).