NATO highlights commitment to transparency with release of independent audit report
NATO made public on Friday (12 June 2015) an independent audit report on the Alliance’s common-funded investment programme – the NATO Security Investment Programme. The report, prepared by the International Board of Auditors for NATO (IBAN), highlights the need for improvements in the way NATO and its Allies manage projects funded by this programme. The Alliance is already taking action on the recommendations to remedy shortcomings in accountability and management.
NATO also made public its response to the audit and the decisions taken to ensure that NATO capabilities are delivered within cost, scope and schedule. Improving the timely delivery of military capabilities is essential to the future needs of the Alliance, and was also addressed by NATO leaders in Wales. The release of this report upholds the commitment made by Allied Heads of State and Government at the Wales Summit last year, to enhance NATO financial transparency and accountability. NATO is committed to greater transparency and accountability, and recognises the importance of providing insight into how NATO manages, spends and reports on the use of taxpayer money.
The NATO Security Investment Programme funds major construction, air defence and command and control system investments which are beyond the national defence requirements of individual member countries. The Programme is financed by the Ministries of Defence of each member country. Projects are implemented either by individual host countries or by NATO agencies, according to their area of expertise. Expenditure in 2015 is capped at €700 million.
The International Board of Auditors for NATO is an independent external audit body. Its six board members come from the national audit institutions of NATO member countries for a fixed four year term. Their mandate is to provide the North Atlantic Council and member state governments with assurance that the funds made available by Allies have been used as agreed for their intended purpose.
Full IBAN report and NATO response, click here.