Review of Management and Administration in the Universal Postal Union (UPU) (JIU/REP/2017/4)
The Joint Inspection Unit recently issued a report reviewing the management and administration of the Universal Postal Union (UPU). It articulates the highly complex environment in which the organization operates and the multiple challenges that it faces, mainly generated by economic and technological developments, fundamental market changes and an erosion of its financial base. During the past years the organization has undergone several reforms to secure its operational capacity and relevance in the postal market. The JIU review aims to support the UPU in adjusting to this evolving environment and in achieving its goals. The Inspector made 10 formal recommendations (six are addressed to member countries through the Council of Administration and four are addressed to the Director General of the International Bureau, the secretariat of the organization). These recommendations, complemented by a series of other suggestions (informal recommendations), are primarily intended to promote good governance, oversight and accountability and reinforce the management framework of the UPU, as well as to contribute to enhancing the financial sustainability of the organization. UPU has operated under a zero nominal growth budget for two decades with adverse effects on the organization’s operability. Specific areas, such as the ethics function or internal oversight, but also training of staff, have suffered from this situation. The review of the organization’s financial development over recent years confirmed these challenges. In this respect, the high volume of liabilities, mainly due to the organization’s Provident Scheme and after-service health insurance, is of particular concern. The review identifies several shortcomings in the internal management of the organization and calls for reviewing the frameworks of the management, institutional, and other committees and boards, including their working procedures, to ensure synergy and complementarity. Attention should also be given to the management of human resources, notably by finalizing a corporate HR strategy and by improving the reporting modalities on HR matters to member countries. The review makes a number of suggestions to improve the oversight framework of the organization, including a formal recommendation to study the feasibility of establishing an independent audit committee by drawing on similar structures in place in other United Nations specialized agencies. The Inspector will introduce the report at the next session of the Council of Administration which will take place in Bern during the week of October 23, 2017.