August2024

OIAREPORTONPROGRESSASSESSMENTOFTHE

IMPLEMENTATIONOFTHERECOMMENDATIONSOFTHEINSTITUTIONALSAFEGUARDSREVIEW

IMFstaffregularlyproducespapersproposingnewIMFpolicies,exploringoptionsforreform,orreviewingexistingIMFpoliciesandoperations.TheReportpreparedbyIMFstaffandcompletedonJuly26,2024,hasbeenreleased.

ThestaffreportwasissuedtotheExecutiveBoardforinformation.Thereportwas

preparedbyIMFstaff.TheviewsexpressedinthispaperarethoseoftheIMFstaffanddonotnecessarilyrepresenttheviewsoftheIMF'sExecutiveBoard.

TheIMF’stransparencypolicyallowsforthedeletionofmarket-sensitiveinformation

andprematuredisclosureoftheauthorities’policyintentionsinpublishedstaffreportsandotherdocuments.

ElectroniccopiesofIMFPolicyPapersareavailabletothepublicfrom

/external/pp/ppindex.aspx

InternationalMonetaryFund

Washington,D.C.

?2024InternationalMonetaryFund

PR24/310

IMF’sOfficeofInternalAuditReleasesanIndependent

ProgressAssessmentoftheImplementationofthe

RecommendationsoftheInstitutionalSafeguardsReview

FORIMMEDIATERELEASE

Washington,DC–August28,2024:FollowingtheDecember2023updateontheImplementationPlan(IP)toaddresstherecommendationsofthe2022Institutional

SafeguardsReview(ISR)

(seePR23/471)

,theOfficeofInternalAudit(OIA)hasconductedanindependentassessmentoftheISRimplementationprogress.

TheISR,completedanddiscussedbythe

ExecutiveBoardinJune2022,

concludedthattheFund’ssafeguardsmechanismsaregenerallyrobustinensuringahighstandardof

institutionalgovernanceandanalyticalintegrity.InresponsetotheISRrecommendations,a

comprehensiveIPwasdevelopedtooutlineasetofactionsandpolicychangesthatreflectthestrongsharedcommitmentoftheBoardandManagementtoadurablechangeinthe

institutionandthehigheststandardsofinstitutionalgovernance.StaffreportedtotheBoardinDecember2023thatsubstantialprogresswasmadeinadvancingtheIP,with85percentof

theactionshavingbeencompletedorremainingontrackforcompletionbyendof2023.

A

recentOIAassessment

largelyconfirmsthestaff’supdate.

OIAfoundthatatotalof82percentofIPactionswerecompletedandontrackforcompletion(64and18percent,respectively),while18percentweredelayed.Theremainingopenactionsareexpectedtobecompletedbytheendofthisyear.

OIAwillcontinuetoengagewithstaffduring2024-2025toevaluatein-progressanddelayedIPactionsandwillissuethenextISRprogressassessmentreportattheoutcomeofthe

evaluation.

OIAPROGRESSASSESSMENTOFTHEIMPLEMENTATIONOFTHERECOMMENDATIONSOFTHEINSTITUTIONAL

July26,2024

SAFEGUARDSREVIEW

EXECUTIVESUMMARY

InOctober2021,theFund’sExecutiveBoardlaunchedacomprehensiveInstitutional

SafeguardsReview(ISR)withtheaimofensuringthattheFund’ssystemsreflectedarobust

governancestructure,whichmeetsthehigheststandards.TheISRfollowedanintegrated

approachwhichwasundertakenbytheExecutiveBoard’sSteeringGroupworkingcloselywithManagement,twostaffworkinggroups(i.e.,theInternalGovernanceandStaffVoicegroup;

andtheDataandAnalysisIntegrity(DAI)group)andanExternalPanel(EP)ofexperts.TheISRmadearangeofrecommendationsinJune2022tostrengthentheFund’sDAIframeworks

andimproveandenhancetrustintheFund’sDisputeResolutionSystem(DRS).

AnImplementationPlan(IP)wasdevelopedbytheBoardSteeringGroup,Management,andstaff,andissuedinDecember2022.TheIPcomprises71actionsthatformapackageof

measuresthatcanbegroupedunderfourkeythemes:(i)DAI;(ii)leadership-tonefromthetop;(iii)buildingtrustandstrengtheningtheDRSprocesses;and(iv)oversightand

accountability.StaffreportedtotheBoardinearlyDecember2023thatsubstantialprogress

hasbeenmadeinadvancingtheIPactionsthatwereduetobecompletedinCY2023,with85percentoftheactionshavingbeencompletedorremainingontrackforcompletionbyendofCY2023.

TheoverallimplementationoftheIPissubjecttofollow-upandvalidationbytheOfficeof

InternalAudit(OIA).OIA’sassessmentmateriallyconfirmsthestaffupdatefromDecember

2023.OIAfoundthatatotalof82percentofIPactionswerecompletedandontrackfor

completion(64and18percent,respectively),while18percentweredelayed.Theremaining

openactionsareexpectedtobecompletedbyendCY2024.StaffandOIAhavenotidentifiedatthisjunctureanysignificantissuesthatwouldimpactthecompletionoftheseremaining

actions.ForafewinstancesofcompletedandinprogressIPactions,OIAalsoidentified

forward-lookingopportunitiesforenhancingimplementationandmeasuringeffectivenessofIPactionsinthefuture.Opportunitiesareofferedasadditionalobservations,anddonot

representdeficienciesvis-à-vistheoriginalimplementationplan;itisthereforelefttostaff

initiativeanddiscretiontooperationalize.ResourcesrequiredforoperationalizationwerenotassessedbyOIA.Thoseopportunitiesforenhancementswillnotbemonitored,norfollowed-upaspartofOIA’sISRassessments.

PROGRESSASSESSMENTOFTHEIMPLEMENTATIONTHERECOMMENDATIONSOFTHEISR

2INTERNATIONALMONETARYFUND

OIAwillcontinuetoengagewithstaffduringCY2024-2025toevaluatein-progressand

delayedIPactionsandwillissueOIA’snextISRprogressassessmentreportattheoutcomeoftheevaluation.

PROGRESSASSESSMENTOFTHEIMPLEMENTATIONOFTHERECOMMENDATIONSOFTHEISR

3INTERNATIONALMONETARYFUND

ApprovedBy

AshlenevanderColff

PreparedbyOfficeofInternalAudit

CONTENTS

ABBREVIATIONS 4

BACKGROUND 5

ENGAGEMENTOBJECTIVES,SCOPEANDAPPROACH 6

OVERALLCONCLUSION 7

DETAILEDREPORT 8

I.OIAAssessmentofCompletedIPActions 8

II.OIA’sConsiderationsforEnhancementstoIPActions 11

ANNEXES

I.ISRActiontracker–CompletedActions 17

II.ISRActionTracker–ActionswithOngoingStatusCompletedinDesign 27

III.ISRActionTracker-ImplementationinProgressinAccordancewithPlan 31

IV.ISRActionTracker–DelayedActions 37

PROGRESSASSESSMENTOFTHEIMPLEMENTATIONTHERECOMMENDATIONSOFTHEISR

4INTERNATIONALMONETARYFUND

ABBREVIATIONS

APDAsiaandPacificDepartment

ATAdministrativeTribunal

CAMExecutiveBoard’sCommitteeonAdministrativeMatters

COMCommunicationsDepartment

CRSCommonReviewSystem

CYCurrentYear

DAIDataAnalysisandIntegrity

D&IDiversityandInclusionOffice

DMDDeputyManagingDirector

DRSDisputeResolutionSystem

EACExternalAuditCommittee

EPExternalPanel

EUREuropeanDepartment

FINFinanceDepartment

FYFiscalYear

GCGrievanceCommittee

HRDHumanResourcesDepartment

IEOIndependentEvaluationOfficeIPImplementationPlan

ISRInstitutionalSafeguardsReview

LEGLegalDepartment

MCDMiddleEastandCentralAsiaDepartment

MCMMonetaryandCapitalMarketsDepartment

MDManagingDirector

MDTMediationOffice

OBPOfficeofBudgetandPlanning

OEDsOfficesofExecutiveDirectors

OIAOfficeofInternalAudit

OIIOfficeofInternalInvestigations

OMBOmbudsOffice

PMRPeriodicMonitoringReport

SECSecretary’sDepartment

SPRStrategy,Policy,andReviewDepartment

PROGRESSASSESSMENTOFTHEIMPLEMENTATIONOFTHERECOMMENDATIONSOFTHEISR

INTERNATIONALMONETARYFUND5

BACKGROUND

1.Subsequenttoitsreviewofthemattersraisedintheinvestigationofthe2018WorldBank’sDoingBusinessreportinOctober2021,

1

theFund’sExecutiveBoardlauncheda

comprehensiveInstitutionalSafeguardsReview(ISR)withtheaimofensuringthattheFund’ssystemsreflectedarobustgovernancestructurewhichmeetsthehigheststandards.The

ExecutiveBoardnotedthatwhileithad“confidenceintheimpartialityandanalyticalexcellenceofIMFstaffandintheIMF’srobustandeffectivechannelsforcomplaint,dissent,andaccountability,”itwouldatthesametimeconsider“possibleadditionalstepstoensurethestrengthofinstitutional

safeguardsintheseareas.”Asafollowup,theBoardestablishedaSteeringGroupofExecutive

Directorstoleadthereviewwiththeobjectiveofhelpingtoensurethestaff,Management,and

ExecutiveBoardmaintainthehighestpossiblestandardsaroundinternalgovernance,useofdata,andaccountability.

2.TheISR-basedonanintegratedapproachundertakenbytheExecutiveBoard’sSteeringGroup,workingcloselywithManagement,twostaffworkinggroups(Internal

GovernanceandStaffVoice;andDataandAnalysisIntegrity(DAI))andanExternalPanel(EP)

-madearangeofrecommendationsinJune2022tostrengthentheFund’sDAIframeworks

andimproveandenhancetrustintheFund’sDisputeResolutionSystem(DRS).InitsDecember

2022jointresponse,theExecutiveBoardandManagementnotedwhichoftheISR

recommendationswereacceptedandidentifiedseveralactionstoimplementinthenear-term.Italsocommittedtoundertakefurtherworktocarefullyconsiderthereports’remaining

recommendationsanddeterminehowbesttoimplementacomprehensivesetofmeasuresandpolicychangesthatwouldconstitutesignificantinstitutionalandculturalchange.An

ImplementationPlan(IP)wasdevelopedincloseconsultationwithstaffandissuedinDecember

2022.

2

TheIPcomprisesactionsthatformacomprehensive,mutuallyreinforcingpackageof

measuresthatcanbegroupedunderfourkeythemes:(i)DAI;(ii)leadership-tonefromthetop;(iii)buildingtrustandstrengtheningtheDRSandprocesses,and(iv)oversightandaccountability.

3.AdecisionwasmadebyManagement,andapprovedbytheBoardinDecember2022,

thattheoverallimplementationwillbesubjecttofollow-upandvalidationbytheOfficeof

InternalAudit(OIA).ThisapproachisconsistentwiththeprocessalreadyfollowedforBoard-

endorsedIndependentEvaluationOffice(IEO)recommendationsthroughOIA’sPeriodicMonitoringReports(PMRs).TheIPnotedthatcollectively,asaninstitution,avarietyofmeans(OIAaudits,staffengagementsurveys,pulsesurveys)willbeleveragedovertimetoassesstheprogressoftheIP,andtheextenttowhichfullycompletedactionsarecontributingtopositiveimprovementsinthe

operationoftheDRSandenhancementstotheorganizationalculture.

1See

StatementbytheIMFExecutiveBoardonitsReviewontheInvestigationoftheWorldBank’sDoingBusiness

2018Report

(October11,2021).

2See

ImplementationPlaninResponsetoIMFExecutiveBoardandManagementEndorsedRecommendationsofthe

2022InstitutionalSafeguardsReview

(December1,2022).

PROGRESSASSESSMENTOFTHEIMPLEMENTATIONTHERECOMMENDATIONSOFTHEISR

6INTERNATIONALMONETARYFUND

ENGAGEMENTOBJECTIVES,SCOPEANDAPPROACH

3

4.Theobjectivesofthisengagementweretoindependentlyvalidatetheextenttowhich

IPactionshaveprogressedorhavebeenfullycompletedfromadesignstandpoint,andalso

toreportontheactionsthatareinprogress(ongoing).Periodicreportingoftheimplementationprogressandconcerns(ifany)intendstoallowtheBoardandManagementtoundertakenecessaryinterventionsinatimelyfashion.TheassessmentscopepertainedtotheBoard-endorsedactionsto

addressthefourDAIand42EPrecommendationsrepresenting71IPactions,asdetailedintheImplementationPlan,basedonstaff’sDecember1,2023,updatepaper.

4

Fieldworkforthe

assessmentwassubstantiallycompletedatendMarch2024.

5.Thisengagementdidnotassessthefollowingout-of-scopeareas:

?AdequacyoftheIPanddetailedactionsthathavealreadybeenapprovedbytheExecutive

BoardtoaddresstheISRrecommendations,andinturnOIAisnotinthepositiontoassessorchallengethedesignofthoseactions.

?AppropriatenessofthecompositionandstructureoftheIPWorkstreamsandTaskTeamsthatareassignedownershipofaction(s).

?Reasonablenessofthenetcostandresourceimplications(i.e.,accommodatablewithinexistingbudgetenvelopeversusnetbudgetimpact)describedintheIP.Totheextentpossible,any

resourceconstraintsandimplicationsidentifiedbydepartmentswerereportedwhenevaluatingprogress.

?OperatingeffectivenessofcompletedIPactions,astheimplementedprocessesandcontrolswillcontinuallyoperateasdesignedinthelongrun.Thereneedstobesufficienttimetoaccumulatethedatapointsformeasuringhoweffectivethesecompletedactionswillbeinadvancingthe

originalgoalsoftheISR.

6.Theengagementobjectiveswereachievedthroughexaminationofavailable

documentationandinterviewswithkeystakeholdersparticularlyintheISRimplementationcoregroup(COM,D&I,DRSOffices,HRD,LEG,SECandSPR)whereappropriate.Inaddition,OIAmetwithcertainareadepartments(APD,EUR,MCD)andotherfunctionaldepartments(FIN,

MCM)tounderstandtheiractivitiesandcontrolswhenimplementingtheDAIactionplans.OIAalsocommentedasdeemednecessaryonthesufficiencyandnatureofactionstakenbydepartments

andManagementtocompletetheIPandmeasureactualimplementation.

3ThisengagementwasconductedinconformancewiththeInternationalStandardsfortheProfessionalPracticeofInternalAuditing.

4See

StaffReportonISRImplementationProgressBoardUpdate

(December1,2023).

PROGRESSASSESSMENTOFTHEIMPLEMENTATIONOFTHERECOMMENDATIONSOFTHEISR

OVERALLCONCLUSION

7.OIAconcludesthat45IPactions,or64percent,havebeencompleted.

5

Specifically,OIAconcurswithstaffassessmentthat34actions(or48percentoftotalactions)canbeconsideredas

completedasofDecember2023basedonevidenceprovided.Detailsofthose—fourDAIactions

andAnnexI.Furthermore,OIAfoundduringthisassessmentthatanadditional11EP

actions(16percentoftotal)classifiedas

ongoing(inprogress/ontrack)bystaffwerecompletedindesignbasedonevidence

reviewed.Inthoseinstances,staffgenerallyintendedtosignalthatthevariousinitiativestakentoimplementtheactionswillremainongoinginfutureyears,eventhoughno

moreworkonthedesignofactionsis

needed.Detailsofthose11actionsand

rationaleforupdatedimplementationstatusareprovidedinsectionIandAnnexII.

and30EPactions—withsupportingrationaleareprovidedinsectionIofthedetailedreportbelow

ImplementationStatusofDAIandEPActions

March2024(source:OIA)

18%

48%

18%

16%

Completed

AdditionalCompletedActionspostOIAAssessmentInProgress

Delayed

8.ThirteenIPactionsremainontrack/inprogress,representing18percentoftotalactions.Thisnumber—composedofoneDAIactionand12EPactions—alignswithupdateprovidedbystaffasofDecember2023.OIAnotedthattherewerenonewsignificantdevelopmentssinceDecember

2023allowingtochangethestatusofimplementation.Implementationofthemajorityofthose

actionsisanticipatedduringtheremainderofCY2024anddetailsareprovidedinAnnexIII.

Togetherwithcompletedactions,58IPactions,or82percentoftotalactions,aretherefore

completedandinprogress.ThisnumbermateriallyalignswiththeDecember2023staffupdate(85percent).

9.ThirteenIPactionsaredelayed,representing18percentoftotalactions.Thisnumber—comprisedofoneDAIactionand12EPactions—isconsistentwiththeupdateprovidedbystaffasofDecember2023,withoneexception.

6

SixofthoseactionplansareassignedtotheBoard.

ImplementationofthemajorityofdelayedactionsisanticipatedduringtheremainderofCY2024anddetailsareprovidedinAnnexIV.

5OIA’scountisbasedon46IPrecommendations(4relatedtoDAIand42relatedtotheEP),representingatotalof

71separateactions.Insomeinstances,asingleactionaddressesseveralrelatedactionsthatwouldthenbeassignedthesameprogressstatus.

6ActionplanEP5hasbeenaddedtothelistofdelayedactionsbyOIA.

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PROGRESSASSESSMENTOFTHEIMPLEMENTATIONTHERECOMMENDATIONSOFTHEISR

8INTERNATIONALMONETARYFUND

DETAILEDREPORT

I.OIAassessmentofcompletedIPactions

DataandAnalysisIntegrity(DAI)

engagementbetweenOfficesofExecutive

Directors(OEDs)andFundstaff(DAI1A);(ii)clarifytheroleofManagementintheinternalclearanceprocessofFunddocuments(DAI2);(iii)ensure

evenhandedcoverageofemergingareassuchasclimate,digitalmoney,gender,andinclusion

issues(DAI3);and(iv)improvethetransparency

anddocumentationoftheinternalreviewprocess,inparticularbymoreextensivelyusingthe

eReviewsystem,anditsreplacement,the

CommonReviewSystem(CRS),slatedfor

deploymentinJuly2025(DAI4A).AdditionaldetailsareavailableinAnnexI.

10.FourDAIIPactions(outofsix)havebeencompletedthroughtheissuanceofdetailedtechnicalguidancebyManagementtodepartments.FourGuidanceNoteswereissuedbetweenFebruary-June2023toprovidetechnicalguidancetostaffto:(i)clarifyandformalizethetermsof

ImplementationStatusofDAIActions

March2024(source:OIA)

17%

17%

66%

uCompleted.InProgress.Delayed

11.OIAfoundthatthecontentoftheGuidanceNotesaddressedtheISR

recommendationsandweredisseminatedwithindepartments,whoareincorporating

technicalguidanceinprocessesanddocuments.TheGuidanceNotesarewelldetailedandcoverinsubstancetherequirementsandobservationsformulatedintheISRrecommendations.BasedoninterviewswithSPRandotherdepartments,OIAalsofoundthattheGuidanceNoteshavebeen

circulatedanddiscussedwithstaff.Staffinterviewedmentionedthattheguidancewasuseful.Staff

interviewedgenerallydidnotreporthavingissuespertainingtoundueinfluenceorthreattoindependencewheninteractingwithOEDsandauthorities(DAI1A).Departmentaloffice

coordinatorsassistwithcomplianceofnewdocumentaryrequirements(e.g.,additional

documentationineReviewperDAI4A).Inaddition,OIAreviewedasampleofcountrydocuments

availableintheeReviewsystempostJune2023.ThatreviewshowedthatdepartmentsareupdatingdocumentsandtheeReviewsysteminlinewiththemainprovisionsoftheGuidanceNotes(DAI2,3and4A).However,given:(i)scopeexclusionsmentionedinparagraph5above,(ii)current

proceduralandsystemchangeinthereviewprocess,and(iii)recentissuanceof,andevolving,

technicalguidanceinsomecases,OIA’sassessmentdidnotintendtoextensivelymeasure,nor

provideassuranceon,departmentalcompliancemechanisms.SeeadditionalcommentsinsectionII.BandII.C.

12.GuidanceNotesareavailableontheFund’sintranet.Inadditiontointradepartmental

circulation,thefourGuidanceNotesareavailableontheFund’sISRintranet.ItisalsoworthnotingthatthecontentoftheGuidanceNotesDAI2,4Aisnowsubsumedinthenewcomprehensive

PROGRESSASSESSMENTOFTHEIMPLEMENTATIONOFTHERECOMMENDATIONSOFTHEISR

INTERNATIONALMONETARYFUND9

“GuidelinesfortheInterdepartmentalReviewProcess”circulatedtodepartmentsinDecember2023andpostedonSPR’sintranet.GuidanceNoteDAI3isavailableonthelatter,andalsoincorporatedbyreferenceinthenewGuidelines.ProceduresforstaffandOEDpersonnel(DAI1A)areavailable

throughtheFund’sInstitutionalRepository,andontheBoard’sintranet(IMFConnect).SeeadditionalcommentsinsectionII.A.

13.Forty-oneoutof65IPactions,or63percent,havebeencompletedthroughvariousinitiatives.OIAfoundthatthose

actionsweremostlycompletedvia:

(i)updatetopolicies(Boardpapers,Staff

Handbook,CategoriesofEmployment)andTermsofReferences;(ii)staffoutreachand

training;(iii)increasedresourcesgrantedtoHRDandDRSoffices;(iv)strengthened

engagementoftheDRSofficeswith

ManagementandtheBoard;and(v)Fund-widedisseminationandpublicationofDRS-relatedmatters.Overall,actionstakenbytheFundallowsimprovingleadershipandtone

ExternalPanel(EP):Leadershipandtonefromthetop;buildingtrustandstrengtheningtheDRSandprocesses;oversightandaccountability.

ImplementationStatusofExternalPanel

actionsMarch2024(source:OIA)

18%

18%46%

17%

Completed

AdditionalCompletedActionspostOIAAssessmentInProgress

Delayed

atthetop,strengtheningtheDRSanditsprocesses,andprovidingadequateoversight.ResultsfromthoseIPactionsaresummarizedinBox1andadditionaldetailsareavailableinAnnexIandII.

14.OIAnotedthatoneIPactionwasimplementedwithamodificationpoststaffupdateinlateDecember2023.Specifically,ManagementdidnotadopttheoriginalrecommendationoftheExpertPaneltoestablishtwoseparateteamswithinHRDresponsibleforadministrativereviewandearlydisputeresolution,respectively(EP32).

7

Thoseresponsibilitiescurrentlyresidewithin

HRD’sEmploymentPractices(HRDEP)Unit.Afterconductingabenchmarkingstudyandassessingresourceneeds,HRDreportedtoManagementthatprofessionalsexperiencedinadministrative

reviewcansupportearlyinformaldisputeresolution,andthatthisisborneoutbyHRDEP’s

effectivenessinresolvingdisputes.Establishingseparateteamswouldremovethatsynergyand

requireresourcesforadditionalmanagementoversight.Inaddition,benchmarkingdatashowsthatorganizationsgenerallydidnothaveseparateteamsforthosefunctions.AsproposedbyHRD,

ManagementapprovedasignificantincreaseinHRDEP’sresources,alongwithvariousstreamliningmeasures,tomeasureandimproveHRDEP’seffectiveness.TheresourcingapprovedforHRDEPisto

bephasedinovertime.OIAagreedwithstaffthatthisactionplancannowbeconsideredascompleted.

7StaffhadpreviouslyreportedtotheBoardthatthisrecommendationrequiredfurtherconsultationandadditionalworkledbyastafftaskforcebeforeitcouldbecompleted.

PROGRESSASSESSMENTOFTHEIMPLEMENTATIONTHERECOMMENDATIONSOFTHEISR

10INTERNATIONALMONETARYFUND

Box1:SummaryofcompletedEPactions

Leadershipandtonefromthetop

?AnnualtrainingonethicsforallOEDpersonnel.

?PublicationofthesummarystatementontheBoardEthicsCommittee’sactivitiesattheendofeachtwo-yearterm(firstpublicationin2022).

?AnnualpublicationofthesummaryfinancialinterestsfortheManagingDirector(MD)andDeputyManagingDirectors(DMDs),firstpublishedin2023,followingupdateinFundpolicies.

?AccessbyallOEDpersonneltoinformalDRSservicesprovidedbytheOmbudsOffice(OMB)andtheMediationOffice(MDT).

BuildingtrustandstrengtheningtheDRS

?ChangesincategoriesofemploymentforfourDRSHeadsofOfficesandDRSstaff,plusadditionalresourcesprovidedtoDRSoffices.

?Additionalresourcesfor,andstreamliningofprocessesof,HRD’sEmploymentPracticesUnittoimproveitsperformance.

?RegularmeetingsbetweenManagementandDRSofficesandbriefingbytheDRSofficestotheBoardwithManagementpresentonanannualbasis.

?UpdatestoStaffHandbookandpoliciesinvariousareas,inparticulartostrengthenOfficeofInternalInvestigation’s(OII)independenceandcentralizationrole,clarifyprocessforhandling

retaliationallegations,andreportingsuspectedretaliation.

?GreatertransparencyonoutputsthroughpublicationofDRSreportswithenhanceddisclosuresonoutcomes(OIIreports).

?IncreaseinOII’soutreachinitiatives,andoutreachonDRSwork,tobecarriedoutonan

ongoingbasis.ProactivecommunicationbytheDRSOfficesofthemandatoryobligationsofstaffandmanagers.

Oversightandaccountability

?IssuanceofanewOIACharterwithmeasurestostrengthentheOffice’sindependence.(ApprovalbytheExternalAuditCommitteeofOIA’sannualProgramofWork).IncreaseinOIA’sresources.

?StrengtheningofriskmanagementproceduresandprocessesledbyORM(inparticular

throughimplementationofvariousrecommendationsofOIA’s2021AuditoftheFund’sEnterpriseRiskManagementframework).

PROGRESSASSESSMENTOFTHEIMPLEMENTATIONOFTHERECOMMENDATIONSOFTHEISR

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II.OIA’sconsiderationsforenhancementstoIPActions

15.ThissectionpresentssevenareaswhereOIAidentifiedforward-lookingopportunitiestoimproveandenhanceimplementationofcertainDAIandEPcompletedandin-progress

actions.Thoseenhancementsareofferedasadditionalobservations,donotrepresentdeficienciesvis-à-vistheoriginalimplementationplan,anddonotmodifyOIA’sassessedstatusofthoseactions.Theirimplementationisthereforelefttostaff’sinitiativeanddiscretiontooperationalize.Coststo

operationalizethoseenhancementswerenotassessedbyOIA.ImplementationwillnotbemonitoredinthecontextandscopeofOIA’sISRassessmentprocedures.

DataandAnalysisIntegrity

A.TermsofengagementbetweenOEDsandFundstaff(DAI1A-Completed)

16.TheJune2023GuidanceNote,ontermsofengagementbetweenOEDsandFundstaff,doesnotincludeprovisionstomeasureimplementation.TheGuidanceNoteissuedinJune

2023,asajointdocumentapplicabletobothOEDsandstaff(i.e.,aBoardpaperandamemorandumissuedbytheFDMD,respectively),seekstoclarifythetermsofengagementbetweenOEDsandstafftoensureasharedunderstandingofissues.Guidancewasprovidedalongthreemainprinciples:

continuousandcandiddialogue;independenceofstafftechnicalanalysisandpolicyadvice;and

mutualrespectandprofessionalcourtesy.TheguidancealsoprovidesdefinitionsofundueinfluenceaspressuretoinfluencestaffanalysisortakeactionsthatarenotjustifiedbyFund