space
Home
Purpose
Members
space
Meetings New!
Schedule
Minutes
space
Press Releases
space
Press Briefings
Transcripts and Webcasts
space
Audit Reports
Special Audit Reports
DFI Audit Reports
Financial Information
space
IAMB Reports
First interim IAMB report issued on Dec. 14, 2004
Second interim IAMB report issued on Dec. 18, 2006
Third interim IAMB report issued on Feb. 29, 2008
space
Documentation New!
Response from PricewaterhouseCoopers regarding net proceeds of oil export sales
Letters from United Nations and COFE to PricewaterhouseCoopers regarding net proceeds of oil export sales
UNSC Resolution 1956
Terms of Reference after January 7, 2011
Report from the Committee of Financial Experts (COFE) on follow up of audit recommendations presented to the IAMB Meeting January 6-7, 2011
Bi-monthly Report from the Committee of Financial Experts (COFE) to the IAMB on their Activities for the Months of September and October 2010
Bi-monthly Report from the Committee of Financial Experts (COFE) to the IAMB on their Activities for the Months of November and December 2010
Third Report of the UN Secretary General to the UN Security Council under UNSCR 1905, November 2010
Third Report of the Government of Iraq to the UN Security Council under UNSCR 1905, November 2010
Report from the Committee of Financial Experts (COFE) on follow up of audit recommendations presented to the IAMB Meeting October 14-15, 2010
Bi-monthly Report from the Committee of Financial Experts (COFE) to the IAMB on their Activities for the Months of May and June 2010
Bi-monthly Report from the Committee of Financial Experts (COFE) to the IAMB on their Activities for the Months of July and August 2010
Second Report of the UN Secretary General to the UN Security Council under UNSCR 1905, July 2010
Second Report of the Government of Iraq to the UN Security Council under UNSCR 1905, July 2010
Committee of Financial Experts (COFE) Report on its action plan for the remainder of 2010 presented to the IAMB Meeting on April 28-29, 2010
Report from the Committee of Financial Experts (COFE) on follow up of audit recommendations presented to the IAMB Meeting April 28-29, 2010
Oil Metering Updated Ministry of Oil Plan presented to the IAMB Meeting on April 28-29, 2010
Status Report from Ministry of Oil on oil meters at end February 2010 Presented to the IAMB Meeting on April 28-29, 2010
Bi-monthly Report from the Committee of Financial Experts (COFE) to the IAMB on their Activities for the Months of January and February 2010
Bi-monthly Report from the Committee of Financial Experts (COFE) to the IAMB on their Activities for the Months of March and April 2010
First Report of the UN Secretary General to the UN Security Council under UNSCR 1905, April 2010
First Report of the Government of Iraq to the UN Security Council under UNSCR 1905, April 2010
Committee of Financial Experts (COFE) High Level Summary Action Plan for 2010, presented to the IAMB Meeting on January 31, 2010
Bi-monthly Report from the Committee of Financial Experts (COFE) to the IAMB on their activities for the months of November and December 2009
Minutes of the Committee of Financial Experts (COFE) Meeting Held on December 31, 2009
UNSC Resolution 1905
Terms of Reference after January 31, 2010
Report from the Committee of Financial Experts (COFE) on follow up of audit recommendations presented to the IAMB Meeting December 16, 2009
Letter from the Committee of Financial Experts (COFE) to the Ministry of Oil on the oil metering system presented to the IAMB Meeting December 16, 2009
Report from the Government of Iraq on the status and plan of installation of oil meters presented to the IAMB Meeting December 16, 2009
Report from the Committee of Financial Experts (COFE) to the IAMB Meeting July 22-23, 2009
Report from the Board of Supreme Audit (BSA) on their review of the 2008 KPMG audit observations presented to the IAMB Meeting July 22-23, 2009
BSA work plan for 2009
COFE meeting minutes July 2009
COFE meeting minutes April 1, 2009
COFE meeting minutes February 5, 2009
COFE meeting minutes January 13, 2009
Report of the Committee of Financial Experts on its 2008 activities and 2009 Work Program, presented to the IAMB Meeting on April 2-3, 2009
Presentation by the Iraqi Ministry of Oil to the IAMB Meeting on April 2-3, 2009
Iraqi Code of Measurement of Hydrocarbon Fuels
Report of the Committee of Financial Experts on the implementation of DFI audit recommendations (2003 to 2007), presented to the IAMB meeting on October 20-21, 2008
United Nations Security Council Resolution 1790
United Nations Security Council Resolution 1723
Confirmation by the Government of Iraq of the Creation of an Iraqi Oversight Body to Take Over When IAMB Ceases in December 2006
Update from the Iraqi Representative on the Establishment of an Iraqi Oversight Body to Succeed the IAMB
Update from the Iraqi Representative on the Metering of Iraqi Crude Oil
Update from the President of the Board of Supreme Audit of Iraq on Earlier Recommendations
Letter from the Minister of Finance to the Office of the Prime Minister of Iraq dated July 11, 2006, together with a covering note from the IAMB Representative, regarding the Successor Iraqi Oversight Body for the DFI
Letter from the Permanent Mission of the Republic of Iraq to the UN, dated March 22, 2006, regarding oil metering
Letter from the US Department of Defense, dated January 26, 2006, regarding the settlement of the DFI funded task orders under the KBR contract
Report by the Government of Iraq on the Implementation of Recommendations from the Previous Audit, Presented to the IAMB Meeting on January 23, 2006
Report by the Government of Iraq on the Implementation of Recommendations from the Previous Audits, Presented to the IAMB Meeting on October 4–5, 2005
Statement of Work—Special Audit of Sole Sourced Contracts
Audit of DFI—Request for Proposal—for the period ended December 2004
Terms of Reference after April 2, 2009
Terms of Reference after January 8, 2008
Terms of Reference after December 11, 2006
Terms of Reference—After November 8, 2005
Terms of Reference—After June 28, 2004
Terms of Reference—Before June 28, 2004
Rules of Procedure—After June 28, 2004
Rules of Procedure—Before June 28, 2004
UNSC Resolution 1483
UNSC Resolution 1546
United Nations Security Council Resolution 1637
space
Arabic
Documentation

Bi-monthly Report from the Committee of Financial Experts (COFE) to the IAMB on their Activities for the Months of September and October 2010
Bi-monthly Report from the Committee of Financial Experts (COFE) to the IAMB on their Activities for the Months of November and December 2010
Update from the President of the Board of Supreme Audit of Iraq on earlier recommendations
Terms of Reference
UNSC Resolution 1483
UNSC Resolution 1546
Special Audit Reports
Audit Reports
space
Links
space
Contact
space
Use the free Download the free Adobe Acrobat Reader
to view the PDF files

International Advisory and Monitoring Board on the Development Fund for Iraq
Press Release
December 18, 2006
Statement by the International Advisory and Monitoring Board on the Development Fund for Iraq

The International Advisory and Monitoring Board (IAMB) on the Development Fund for Iraq (DFI) met in New York on December 11, 2006 and issued the following statement:

"The International Advisory and Monitoring Board (IAMB) has been in operation since May 2003 to oversee the Development Fund for Iraq (DFI). The IAMB released its first summary report in December 2004 covering its operations for the period from the establishment of the DFI on May 22, 2003 until the dissolution of the Coalition Provisional Authority (CPA) on June 28, 2004. We now present our second interim report with the IAMB’s comments and conclusions on our work until December 2006.

"The primary responsibility of the IAMB is to promote the objectives set forth in UNSCR 1483 of ensuring that the DFI is used in a transparent manner for the benefit of the Iraqi people and that export sales of petroleum, petroleum products and natural gas are made consistent with prevailing international best practices. In the period from inception in 2003 to end-June 2006 the DFI received $68.8 billion from the proceeds of Iraqi oil export sales, balances from the UN oil-for-food program and frozen Iraqi funds, and disbursed $59.6 billion for the Ministry of Finance, letters of credit for Iraqi ministries, and contracts administered by US Agencies.

"The Board has consistently raised concerns about inadequate controls over Iraqi oil and other aspects of the DFI’s operations, originally with the US Government and more recently with the Government of Iraq. The IAMB was one of the first to raise these issues and alert others about these practices:

"Under its mandate the IAMB has overseen six audits of the DFI conduced by international accounting firms, KPMG and Ernst & Young. These audits were undertaken on the ground in Iraq and under increasingly adverse security conditions. The audits cover (i) oil export sales to ensure that such sales are consistent with prevailing international market best practices, (ii) the accounting for the proceeds from oil export sales, (iii) the DFI financial statements, and (iv) the disbursements procedures for DFI resources to ensure that funds are used for the purposes intended.

"The IAMB welcomes the progress being made in strengthening the financial and administration controls over the use of DFI resources in the spending ministries, but further measures are necessary. The Iraqi representative, the President of the Board of Supreme Audit, and SIGIR have all briefed IAMB on progress in implementing earlier IAMB recommendations and in strengthening the overall framework for public financial management in Iraq. The IAMB took note of SIGIR findings regarding oversight of DFI funds provided to Iraqi ministries and US reconstruction projects that were similar to those identified by the DFI auditors. The Iraqi financial management law contains provisions on accountability and audit oversight, including publication of financial reports of oil revenues. Other steps reported to the IAMB include the establishment of an inspector general directorate within each ministry; steps to strengthen control at the Ministry of Oil and the spending ministries; the adoption of rules and regulations regarding disbursements of allocated funds; and the training of finance personnel. However, progress is slow and rebuilding the financial infrastructure will take some time. The IAMB continues to urge the Government of Iraq to take concrete steps to address the audit findings and recommendations to ensure that oil resources are better protected.

"The IAMB has also overseen special audits of sole sourced contracts. Earlier Defense Contract Audit Agency audit reports indicated overcharges and questioned costs in excess of $200 million on these contracts. The US Government commissioned these audits with long delays. The audits have now been completed and all sole‑sourced contracts in excess of $5 million awarded by the CPA have been the subject of a special audit. The IAMB concluded that contracts using DFI resources for an amount of $1.5 billion were in line with US Government procurement practices and were mostly supported by proper documentation, with a few exceptions. The auditors reported that in their opinion the settlements between KBR and the US Army Corps of Engineers were reasonable.

"The IAMB welcomes the establishment of an Iraqi oversight body—the Committee of Financial Experts (COFE)—by the Council of Ministers in October 2006 to exercise ongoing oversight over petroleum revenues. The COFE will be chaired by the President of the Board of Supreme Audit and include two independent experts to be chosen by and reporting to the Council of Ministers with required public disclosure of their reports. The IAMB has made recommendations on the modalities of the oversight body to the Government of Iraq. Building on the financial management law, the successor oversight body will be independent, competent and professional, to ensure the continued oversight of external audits and to succeed the IAMB at the conclusion of its work. The IAMB is already taking steps to ensure a smooth hand-over of responsibilities and we expect that the COFE members will attend the remaining IAMB meetings and work alongside the IAMB in the oversight of Iraq’s oil export revenues.

"Looking forward to 2007, the IAMB will continue to monitor controls over Iraqi oil export revenues, the use of those revenues in the spending ministries, and the installation of oil metering. Ernst & Young has already been appointed to complete the 2006 audit of the DFI and will report its final findings to the IAMB. The IAMB will determine how the Board and its member organizations can advise the Government of Iraq on further strengthening the capacity over financial management in Iraq.

Conclusions

"After three years of overseeing Iraq’s oil export sales and the DFI, the IAMB can conclude that:

Background on IAMB

"The IAMB, whose mandate was recently extended by the United Nations Security Council, is now scheduled to conclude its oversight role of the financial position of the DFI, the principal repository for Iraq’s oil-export receipts, no later than end-December 2007. The mandate of the IAMB was initially extended until December 31, 2006 under UNSCR 1637 and further extended until December 31, 2007 under UNSCR 1723. This resolution recognized the significant role of the IAMB in helping the Government of Iraq to ensure that Iraq’s resources are being used transparently and equitably for the benefit of the people of Iraq.

"The IAMB’s terms of reference, approved in October 2003, provide the IAMB mandate to oversee the completeness of deposits into the DFI, the management of the funds in the DFI and the use of DFI resources in the spending ministries, together with the power to complete special audits, which has proven useful. The IAMB is structured along the lines of international best practice models for audit oversight committees.

"The IAMB initially comprised four members representing the Executive Heads of the Arab Fund for Economic and Social Development, the International Monetary Fund, the United Nations, and the World Bank. A fifth member was designated by the Government of Iraq in June 2004. Until June 28, 2004 disbursements from the DFI were directed by the CPA in consultation with the Iraqi interim administration. The mandate and membership of the IAMB was initially extended by UNSCR 1546 and resources of the DFI were controlled by the Government of Iraq from June 2004.

"The security situation continues to prevent the establishment of the IAMB secretariat in Baghdad as provided in the terms of reference. As an alternative, a virtual secretariat was established, with the operational work of the IAMB being undertaken by staffs of the Board members. In line with the principle of full transparency, the IAMB established a website (www.iamb.info) to disseminate documentation and information related to its operations. The IAMB has published all audit reports and related documents on its website and has issued press releases after each meeting.

"The next meeting of the IAMB is tentatively scheduled for May 2007."