Una conceptualización triple de los principios

1. Budget

The information on actual funds available during the year may be suitably disclosed to improve understanding and usability of the Budget.

2. Expenditure Recognition

Stronger system of procedural checks and accounting controls be instituted to a) improve timely recording, including improving accuracy of closing accrual adjustments and b) improve accuracy of data in the document date field.

3. Inventory: Reconciliation between SAP and COMPAS

The process of reconciliation carried out between SAP and COMPAS system needs to be strengthened, particularly in relation to the reconciling items arising from closed projects.

4. Property, Plant and Equipment

In respect of asset management, controls surrounding the a) asset class determination, b) adherence to the fixed asset capitalization threshold and c) accuracy of data entered in the depreciation date field should be strengthened.

5. Trust Funds

The management of Trust Funds in the RBs and COs needs to be streamlined and standardised under corporate guidance.

I. Introduction

7. The audit of World Food Programme (WFP) was assigned to the Comptroller and Auditor General of India (CAG) for the year July 2010 to June 2016 in accordance with the Financial Regulation 14.1 and the Additional Terms of Reference governing External Audit set out in the Annex to these Regulations. The CAG of India may make observations with respect to the efficiency of the financial procedures, the accounting systems, the internal financial controls and, in general, the administration and management of WFP in accordance with Financial Regulation 14.4.

8. The main objectives of the audit were to verify that the Annual Financial Statements

 present fairly in all material respects the financial position of WFP as on 31 December 2013 and of the financial performance of WFP during the year 2013;

 are prepared in accordance with the Financial Regulations and the Accounting Policies of WFP; and

 are in conformity with International Public Sector Accounting Standards (IPSAS).

9. Our audit involved examination of the Financial Statements along with supporting documents and information available in two IT systems:

 WFP Information Network & Global Systems Version II (WINGS II), a SAP IT Application used for accounting purposes and;

 Commodity Movement Processing & Analysis System (COMPAS), an IT Application for tracking inventory.

10. Our audit involved Entry and Exit meetings with the senior management besides discussions and review meetings with officials of Resource Management (RM) Department of WFP.

11. Important findings observed during the field audits of COs and RBs of WFP were also considered during this audit. Views of the Management received at various stages of audit were considered while finalizing this report.

II. Responsibility for the Financial Statements

12. WFP is responsible for the preparation and fair presentation of the Financial Statements in accordance with their Policy Guidance Manual prepared in accordance with IPSAS. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of Financial Statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

III. Responsibility of the External Auditor

13. Our responsibility as the external auditor is to express an opinion on these Financial Statements based on the examination of records and information provided by WFP Management. We conducted our audit in accordance with the International Standards on Auditing. The standards require that we comply with ethical requirements and plan and audit with a view to obtaining reasonable assurance whether the Financial Statements are free from material misstatement. The terms of reference of the external auditor included in the Financial Regulations of WFP have been kept in view while carrying out the audit.

IV. Audit Opinion on the 2013 Financial Statements

14. Audit of the Financial Statements for the financial period 2013 revealed no weakness or errors which I considered material to the accuracy, completeness and validity of the financial statements as a whole. Accordingly, I have placed an unqualified audit opinion on the WFP’s financial statements for the financial period ended 31 December 2013.

V. Performance against Key Indicators Revenue and Expense

15. Most of WFP’s revenue comes from donor contributions, monetary and in-kind, which together constituted 96.6 per cent of WFP’s total revenue during 2013 (96.0 per cent in 2012). The rest came from currency exchange differences, return on investments, revenue generated from the provision of goods and services and other sources like proceeds from the sale of damaged commodities etc. The monetary contribution revenue constituted 88 per cent of the total contributions in 2013 (82.5 per cent in 2012).

Chart 1

16. The aid component- food commodities as well as cash and vouchers – amounting to USD 2,551.5 million accounted for 56.5 per cent of WFP’s expenses in 2013 (55.9 per cent in 2012), followed by staff costs which represented 15.9 per cent of its expenses during the year (15.7 per cent in 2012). Distribution and related services accounted for 12.8 per cent of total expenses (13.7 per cent in 2012) while Contracted and other services accounted for 9 per cent of expenses, almost the same proportion as the last year. The rest of expenses were incurred on supplies, consumables and other running costs (3.5 per cent) and on other expenses like training and meeting related costs, allowances for doubtful accounts, maintenance of facilities and services, insurance, finance costs etc. The comparison of revenue and expenses during 2012 and 2013 is shown in Charts 1 and 2 respectively.

3868

511

20 20 116

3338

706

43 24 101

Monetary contributions

In-kind contributions

Currency exchange differences

Return on investments

Other revenue

WFP Revenues (USD million)

2013 2012

Chart 2

17. Among the expenses, an increased use of cash and vouchers distributed was noticed, with the result that while expenses on account of food commodities distributed decreased by USD 211.2 million (9.3 per cent) over the previous year, this decrease was more than offset by an increase of USD 306.3 million (160 per cent) in cash and vouchers distributed during the year.

While expenses in respect of supplies, consumables and running costs (USD 159.0 million) practically remained at the same level as last year’s and expenses in respect of Contracted and Other Services (USD 405.3 million) showed only marginal increase over the last year (USD 389.7 million), expenses in respect of wages, salaries, employee benefits and other staff costs increased by USD 26.7 million (3.9 per cent). There was no appreciable variation in respect of the other items of expenses.

18. As regards revenue, while monetary contributions increased by USD 530.4 million (15.9 per cent), in-kind contributions decreased by USD 195.1 million (27.6 per cent), which reflected the same trend of increasing use of cash and vouchers. While other revenues showed marginal improvement by USD 15.8 million over the previous year’s level of USD 100.5 million, Return on Investments (ROI) showed a marginal drop of USD 3.9 million from the last year’s level of USD 24 million.