Mutual recognition

Mutual recognition is the acceptance by one United Nations system organization of the policies and procedures of another. It will be the basis for the establishment of common business services and back-office functions for the revamped United Nations country teams under the development system reform. As stated in General Assembly 71/243: "entities within the United Nations development system should operate according to the principle of mutual recognition of best practices in terms of policies and procedures, with the aim of facilitating active collaboration across agencies and reducing transaction costs for Governments and collaborating agencies;"

Mutual recognition statement
In November 2018, a mutual recognition statement was finalized committing signatory organizations to apply, to the greatest extent possible, mutual recognition in the areas of finance, human resources, procurement, logistics, information and communications technology and facility services. As indicated in the statement, signatory organizations are to:


 * 1) Maintain sounnd financial management and internal control systems to ensure that funds are used for the purposes intended with due attention to considerations of efficiency and effectiveness;
 * 2) Subject their financial and administrative management systems to internal and external auditing arrangements in line with internationally accepted standards;
 * 3) Reaffirm their commitment to the single-audit principle;
 * 4) Ensure that appropriate mechanisms are in place to significantly mitigate the risk of fraud and corruption and to address allegations and proven instances of fraud and corruption; and
 * 5) Undertake appropriate measures, including capacity strengthening, to mitigate risks posed by any weakness identified in their financial and administrative management systems and arrangements.

Signatories
As of June 2020, the following 20 organizations are signatories: