The Board of Auditors has audited the financial statements and reviewed the operations of the Fund of the United Nations Environment Programme for the financial year ended 31 December 2015. The audit was carried out through the examination of financial transactions and operations at UNEP headquarters in Nairobi, Kenya, and Montreal, Canada, for the Multilateral Fund for the Implementation of the Montreal Protocol. The present report covers matters that, in the opinion of the Board, should be brought to the attention of the General Assembly and has been discussed with UNEP management, whose views have been reflected in the report. The audit was conducted primarily to enable the Board to form an opinion as to whether the financial statements present fairly the financial position of UNEP as at 31 December 2015 and its financial performance and cash flows for the year then ended, in accordance with the International Public Sector Accounting Standards (IPSAS). The audit included a general review of financial systems and internal controls and a test examination of the accounting records and other supporting evidence to the extent that the Board considered necessary to form an opinion on the financial statements. The Board also reviewed UNEP operations in accordance with financial regulation 7.5 of the United Nations, which allows the Board to make observations on the efficiency of the financial procedures, the accounting system, the internal financial controls and, in general, the administration and management of operations. The report also includes a brief commentary on the status of implementation of recommendations from previous years.