29 April 2019
An audit in 2018 of the Sudan portfolio by the Global Fund’s Office of the Inspector General identifies deficiencies with asset management and procurement controls, as well as financial and assurance arrangements, and capacity gaps for program implementation.
The audit report refers to asset losses identified by UNDP during a regular asset verification exercise. UNDP immediately alerted its Office of Audit and Investigations, which conducted a full investigation. UNDP repaid the full $846,000 to the Global Fund while this audit was in process.
The audit report also notes issues in recording, locating and registering assets as damaged in grants potentially totaling US$2.75 million in grants to UNDP and the Federal Ministry of Health in Sudan. The Investigations Unit of the Office of the Inspector General will be opening an investigation to identify any additional losses, and will continue to collaborate with the UNDP Office of Audit and Investigations as necessary. The Global Fund Secretariat will follow up accordingly.
The Global Fund and UNDP are working closely together to tighten internal controls and program management arrangements in the Sudan. The Global Fund is working with stakeholders to improve data quality across the three disease programs, and strengthening quantification, forecasting and supervision of health commodities. We are focused on building in-country implementer capacities to better manage assets and commodities in the Sudan programs in addition to increasing controls and strengthening implementation arrangements.
The Global Fund is committed to Sudan’s programs against malaria, HIV and TB. The Global Fund is a key partner and the largest external financer against malaria, HIV and TB and we have more work to do to support the country deliver its targets.
The Office of the Inspector General is an integral and important part of risk management, conducting independent audits and investigations to complement the active risk management and controls put in place by the Secretariat with oversight by the Board of the Global Fund. The Global Fund Secretariat thanks the Office of the Inspector General for this audit report, which upholds our principle of zero tolerance for fraud or corruption of any kind, and our proactive approach to detecting and being fully transparent about problems in implementation of our grants. The Global Fund is committed to constantly strengthening measures to increase value for money, and improving the effectiveness of health investments so they can reach the people most in need, in countries and communities all over the world.