FC 107/6

FINANCE COMMITTEE

Table of Contents

I. Introduction - par. 1-3

II. Matters of Special Importance - par. 4-35

III. Audit Operations - par. 36-38

A. headquarters activities - par. 39-41

B. decentralized activities - par. 42-44

C. special assignments and investigations - par. 45-48

IV. Tender Panel Operations - par. 49-50

V. Management Activities - par. 51-56

Attachment A

Attachment B

Attachment C

I. Introduction

1. This is the eighth annual activity report of the Office of the Inspector-General. The first was developed in 1995, and was intended to provide the Director-General with a summary of the work carried out by the Office. Since 1996, the Director-General has made the annual reports available to the Finance Committee to enable its members to review the nature of the work carried out by the Office. This practice was much appreciated and it has since become a standing item on the agenda of the May sessions. It is provided to the Secretary of the Committee for translation and distribution at the same time as it is presented to the Director-General. This year, after the establishment of the Audit Committee (Internal) in 2003, it will also be made available to the members of the Audit Committee, at its April 2004 meeting.

2. The annual report has generated considerable discussion in the Finance Committee and from time to time suggestions for improvement in the presentation have been made. These have been accommodated wherever feasible. The 2003 report has been enhanced to provide complete summary statistics on implementation of recommendations.

3. In 2003 a total of 68 reports were released by the Office as compared to 59 reports in 2002. The 2003 reports are listed by organizational group in Attachment A which also compares the work done to the work planned for the year. Statistics on implementation status of recommendations are presented in Attachment B. The staffing situation at the date of preparation of this report is indicated in Attachment C. The work of the Office was conducted within the net allotment of approximately $2.17 million provided for the second year of the 2002-03 Programme of Work and Budget.

II. Matters of Special Importance

4. This section highlights a variety of issues addressed by the Office in the year 2003 and provides a summary indication of the measures taken by various levels of management in responding to the issues identified.

• Audit Committee

5. The Audit Committee (Internal) was established in April 2003 to advise and provide assurance to the Director-General that the internal audit, inspection and investigation functions at FAO are operating efficiently and effectively. This is in line with the Organization’s commitment to the Finance Committee following a recommendation of the former External Auditor in this regard.

6. The Audit Committee consists of five internal and two external members under the chairmanship of the Deputy Director-General. The Committee has taken an active interest in the work of the Office, reviewing selected reports and recommendations in depth and providing advice on various aspects. The Committee met three times in 2003 and plans to meet at least three times in 2004.

• Inspector-General

7. On 31 August 2003, Mr. G. Peter Wilson, Inspector-General since 1992, retired. After consultation with the Finance Committee in accordance with the Charter for the Office of the Inspector-General, Ms. Amalia Lo Faso was appointed Inspector-General on 1 September 2003.

• Discretionary Reports

8. The Charter for the Office of the Inspector-General has become enshrined in the Administrative Manual of the Organization. Among other things it provides an opportunity, at the discretion of the Inspector-General, to submit any specific report to the Finance Committee where the Inspector-General deems that senior management has failed to deal appropriately with any issues raised. Again this year no such situation prevailed.

• Regional and Sub-regional Offices

9. The regional internal auditors located in the four Regional Offices, complemented by audit missions from Headquarters, paid particular attention to the internal control framework in these offices and enterprise risk management, as well as general management performance. The reviews covered financial, administrative and operational management controls; programme development activities; programme of work and budget; planning and field programme support; letters of agreement; selected aspects of travel arrangements, related controls and transactions; procurement activities, including those relating to information technology; responsibilities and relationships vis-à-vis FAO Headquarters and other decentralized offices; follow-up on implementation of audit recommendations; and certain personnel matters including recruitment of consultants and personal services agreement (PSA) subscribers.

10. Of particular interest to FAO Senior Management was the follow-up work on implementation of recommendations at RLC, where we found that about half of the audit recommendations issued since January 2000 had not been effectively addressed. AUD’s reports on RLC underscored the necessity of implementing audit recommendations that are aimed at improving the overall control environment at the Regional Office. RLC management has undertaken (or is in the process of undertaking) adequate measures to correct the reported problems.

• FAO Representations and Projects

11. Audit missions were carried out in 12 countries according to the AUD plan. In conjunction with audits of FAO Representations, the auditors also undertook reviews of specific projects, which included Technical Cooperation Projects (TCP) and projects under the Special Programme for Food Security. The scope of work generally covered the internal control environment in the country and project offices. More specifically, the Office addressed a wide range of financial, administrative and personnel matters, as well as relations with host governments, donors and other liaison issues. As management responsibilities for field project operations have been decentralized to many of the countries visited, audit efforts at the FAO Representations placed increased emphasis on assessing operational management capacity, field programme support, and support received from FAO Headquarters and Regional Offices for the proper discharge of these responsibilities.

12. Moreover, the Office specifically reported on operational issues such as the need for greater clarity of roles of the national project coordinator, the FAO Representative and other stakeholders; the need to improve project monitoring; and the need to improve the control environment through greater understanding and consistent application of FAO’s rules and procedures. Recommendations were made to improve backstopping support from the Regional Offices.

• Technical Cooperation Programme

13. In 2003, the External Auditor recommended that AUD report on relevant aspects of audits of specific projects or clusters of TCP projects. During this reporting period AUD reviewed four TCP projects: two in Myanmar and two in Pakistan. Recommendations were made on project administration, including delivery rates and internal control over expenditure.

• Fraud or Presumptive Fraud
• Review of internal controls over the use of the Organization’s resources

14. To minimize the risk of fraud and misuse and to address concerns expressed by management and by the former and the current External Auditor, the Office conducted a follow up to the review of Internal Controls over the Use of the Organization’s Resources.

15. In this review it was noted that improper use of FAO’s resources could take place by a variety of means and at different organizational levels and locations. Consequently, it is almost impossible to fully protect the Organization against such malpractices. No uniform pattern emerged pointing to specific systemic weaknesses, although individual cases give rise for concern. AUD concluded that there are adequate checks and balances in the system to protect the Organization from widespread malpractices or abuse. However, the review identified several issues that require greater attention from management. These include the following: (i) developing a fraud policy to increase staff awareness and to reinforce the Organization’s zero-tolerance attitude to fraud and abuse, (ii) expediting the revision of the FAO Administrative Manual, and (iii) directing managers to exercise greater supervision and enforce compliance with established rules and guidelines.

• Update on matters in the 2002 Annual Activity Report

16. In the 2002 Annual Activity Report, the Office reported on two Representations where cheques had been fraudulently converted. The first case amounted to $34,300 after recoveries from the staff member. The Organization is currently exploring the possibility of pursuing the matter in the national courts. The second case comprised cheque fraud of $28,300 and presumptive cheque fraud of $12,300. Of this, $5,390 has been recovered from the former staff member.

• Fraud and presumptive fraud arising in 2003

17. During 2003, several cases of fraud and presumptive fraud came to light both at headquarters and at decentralized offices and were properly addressed. In particular, at headquarters, two cases of attempted fraud, successfully thwarted by the correct operation of internal controls and procedures, were brought to the attention of the Office. One case has been investigated and reported on and the other is currently under investigation. In addition, four other cases, entailing allegations of misconduct, outside activities and other matters, are under investigation at headquarters at the time of issue of this report.

18. Field cases include that of an FAO Representative who requested gifts from a supplier, used FAO resources to acquire a laptop computer for his personal use and instructed that payment be made to a fictitious company for services that had not been provided. Another case showed how effective management controls and staff vigilance can contribute to fraud prevention. Staff in a Representation noticed discrepancies in the invoices and supporting documentation submitted by a project and commissioned the local auditors to investigate the matter further. The work of the local auditors revealed evidence of overcharging for goods and payment for work not done. After consulting AUD and OCD, the Representation strengthened operational and financial control procedures in the project and separated two consultants. Seven other field cases were subject to investigation in 2003, some of which are still on-going. These cases included exceeding delegated authority, personal telephone calls, conflicts of interest, theft of items belonging to a colleague, and other allegations.

• UTF project in Nigeria

19. A five-year food security project in Nigeria became operational in October 2001 and commenced in early 2002, with an initial budget of $45.2 million, entirely financed by the Federal Government of Nigeria. The project was increased in March 2003, through a tripartite agreement valued at $22.3 million for a four-year South-South Co-operation which FAO signed with the Chinese Government and the Federal Government of Nigeria.

20. During 2003, the Office produced three reports on the project, covering areas such as responsibility for delivery of the project, management of project funds, procurement, information technology security, and project support cost collection. FAO management has responded promptly to the issues identified by AUD, which have also contributed to development of policy affecting similar types of projects.

• Afghanistan Operations

21. In 2002, FAO established a Representation in Afghanistan and an FAO Representative was recruited. As at January 2004, the field programme comprised 56 active projects with a total budget of some $54 million, of which $32 million was represented by emergency projects. Operations are managed from the Representation in Kabul and are supported by five Area Offices and three Sub-offices, with some financial and administrative functions performed by the FAOR Pakistan.

22. An internal auditor was posted to Afghanistan during 2003 to address inherent internal control risks. In particular, operational progress, budgetary control, staffing matters, procurement and inventory and financial management were reviewed. The Afghanistan programme is now in transition from an emphasis on short-term emergency operations to longer-term technical assistance. Funding for the post of resident internal auditor ended on 31 December 2003.

• Oil-for-Food

23. During 2003, the Oil-for-Food Programme and, consequently, its audit in the field, suffered due to the security situation in Iraq. The resident auditor was relocated to Rome in February, returned to Iraq in June and was again relocated to Rome in September, where he is expected to remain until the end of his contract on 31 March 2004. Nevertheless, five reports were issued in 2003 relating to locally generated funds, losses arising from looting of the Baghdad office and procurement of spraying vehicles.

24. In the second half of 2003, with the winding down of the Oil-for-Food Programme, at the request of TCE the Office audited procurement of inputs and negotiation of previously approved government contracts for humanitarian supplies. After termination of the Oil-for-Food Programme, effective 21 November 2003, and the handover of assets, projects and programmes to the Coalition Provisional Authority, funding for audit work from the programme will cease at the end of March 2004. Iraq will, in future, be covered by the regional internal auditor in Cairo (post currently vacant). Overall supervision of this programme rested with the Special Assignments and Investigations group at Headquarters during most of 2003. It reverted to the Decentralized Activities group as of 15 December 2003.

25. The audit recommendations relating to the Oil-for-Food Programme during the last few years were received positively by management both in Baghdad and at FAO Headquarters, and by the relevant authorities at the UN in New York. Statistical data forwarded by the latter indicated that the number of audit reports issued by FAO was significantly higher than that of other UN agencies involved in the programme.

• Financial situation of the Investment Centre (TCI division)

26. A review of the financial situation of the Investment Centre (TCI), carried out at the request of ODG, identified a potential prior-period adjustment, subsequently quantified at approximately US$ 3 million. AF is carrying out the necessary accounting work to reflect the adjustment in the financial statements of the Organization for the 2002-2003 biennium.

27. AUD made recommendations for improved internal control in TCI, relating to the respective roles and responsibilities of divisional budget and finance officers and AFF. TCI is undergoing an extensive business process review.

• Collaboration with other UN Agencies

28. Cooperation and collaboration with other UN Agencies continued in 2003. The Office collaborated on personnel issues with the IAEA,WFP, IFAD and the UN Secretariat. In several cases, and for a variety of reasons, this resulted in disciplinary measures being pursued. The Office also performed various benchmarking exercises with the United Nations and other Specialized Agencies on audit reporting format and policy on privacy aspects, among others.

• Audit Resolution

29. The matter of “audit resolution” is taken very seriously at FAO. The FAO Audit Committee (Internal) has reviewed statistics and recommendations, and has made suggestions to increase implementation rates and to take action in specific cases of non- or delayed implementation.

30. Furthermore, the Assistant Director-General/Directeur de Cabinet follows up on the most important audit recommendations. He accomplishes this task by informing individual programme managers of the Director-General’s instructions relating to implementation, by setting specific dates for information on action taken or to be taken and by conducting subsequent follow up when necessary.

31. These powerful “audit resolution” tools, which complement the normal follow-up by the Office of the Inspector-General, have proven to be highly effective with a marked improvement in implementation rates towards the end of 2003.

• Audit Outreach

32. The Representatives of Internal Audit Services of the United Nations and Multilateral Financial Institutions met in Panama City in June 2003. The Inspector-General represented FAO at this meeting. Highlights included risk-based approaches to audit planning and governance issues. The fourth Conference of Investigators of UN Organizations and Multilateral Financial Institutions, organized by OLAF (European Anti-fraud Office), took place in Brussels in April 2003. This conference was attended by the Principal Auditor. The above meetings provided excellent fora for the exchange of views and experiences of internal auditors, investigators and other oversight bodies from the international community of audit and investigation professionals.

33. The Office arranged a highly successful on-site seminar in Rome on ‘Security and Audit of Oracle Financials and more’. The seminar was conducted by an internationally recognised expert and was attended by all staff of the Office. Others attending the seminar included staff from AFI and AFF, the External Auditor, and an audit colleague from OSCE in Vienna.

34. AUD’s intranet site was developed and implemented in 2003 and is continuously reviewed to ensure that it is up to date.

35. The Inspector-General continued to have regular monthly meetings with counterparts from the Rome-based agencies and maintained close contact with the heads of audit and investigation units of other UN agencies and international institutions.

III. Audit Operations

36. The operations of the Office are planned, organized, managed and reported upon in accordance with the organigram displayed in Attachment C. The audit plan of work follows the pattern of the PWB and is thus developed on a biennial basis. It also takes into account the Strategic Framework, the Medium Term Plan and, of course, the Programme of Work and Budget itself. The discussions in the Conference, Council and the Programme and Finance Committees as well as policy statements and initiatives of the Director-General are also an integral part of the planning process. The plan is then prepared in more detail within the Office taking into account the normal planning tools of audit risk assessment, rotation, management requests, or items requiring special attention. Subsequently it is made available to the Director-General for his review and concurrence. Notwithstanding the foregoing, it is a flexible plan. It can be modified depending on changing circumstances and needs, including requests of senior management. It is updated between the first and second year of a biennium, and a comparison between work planned and work performed can be found in Attachment A to this report, while Attachment B reviews statistics on recommendations and implementation.

37. A revised planning methodology incorporating a systematic risk assessment was developed in 2003, following a recommendation of the former External Auditor. The changed approach, which combines the results of the risk assessment with the Office’s cumulative institutional knowledge of the organization, has been used to develop the 2004-2005 work plan for the Office. In this way the Office adds maximum value for its FAO clients while providing reasonable assurance to the Audit Committee on how well FAO is managing its strategic, operational, stakeholder and financial risks.

38. All audit work results in the production of specific audit reports. However, the Office of the Inspector-General contributes to the overall process of management control in the Organization in a variety of ways and goes considerably beyond the issuance of formal reports. The following paragraphs indicate the nature and extent of the work carried out throughout the year.

A. HEADQUARTERS ACTIVITIES

39. One of the most important clients of the Headquarters group is the Administration and Finance Department, encompassing finance, information technology, human resources and administrative services. However, technical departments at Headquarters have also been important audit clients. The main expertise in this group continues to embrace the disciplines associated with finance, treasury, accounting and administration, but it also serves as the focal point for office technology, information systems and other aspects of electronic data processing. The Headquarters group also carries out annual reviews of the Credit Union and the Commissary, on a fixed-fee basis, and plays an important role in advising other units at Headquarters on audit-related issues.

40. The Headquarters group is also responsible for the review of audit arrangements and audit clauses contained in partnership and similar agreements. In 2003, 48 such agreements were reviewed.

41. A total of 14 specific audit reports were released by this group in 2003. These are identified in Attachment A (i).

B. DECENTRALIZED ACTIVITIES

42. This group deals with audits, special reviews and investigations carried out at the FAO Regional, Subregional and Liaison Offices, Representations, and selected projects in the various regions. It also covers the elements of decentralized activities at Headquarters. The group is responsible for the supervision of the outposted audit function, including the planning, clearance and review of all audits conducted at the field level. The only exception to this in 2003 was the Oil-for-Food Programme, though, as noted above, the group received responsibility for the phase-out of the programme as of 15 December 2003.

43. This group is also the prime source of expertise on decentralization, regionalization and operational management arrangements for the field programme. It follows closely the work of the local audit firms engaged by the Finance Division, and frequently refers to their reports for planning audit work and monitoring management performance. This group also discusses audit concerns as part of the briefing and orientation programme for newly appointed FAO Representatives and other senior staff. This also involves subsequent contributions to the evaluation of FAORs’ performance, and the handover arrangements on the termination of FAOR assignments, as necessary.

44. In 2003 this group produced 43 reports addressing various administrative and operational aspects of Regional and Subregional Offices, FAO Representations, field investigations and specific projects and other field operations. These are outlined in Attachment A (ii).

C. SPECIAL ASSIGNMENTS AND INVESTIGATIONS

45. This group is responsible for detecting and investigating cases of fraud, presumptive fraud, waste of resources, abuse of authority, misconduct and other malfeasance and for assessing potential areas of fraud through analysis of the corporate control system.

46. As the Office’s prime source of expertise on contracts and procurement it reviews requests for waivers from the competitive process, oversees tender panel operations and represents the Inspector-General on the Procurement committee. The group also performs value-for-money audits of significant operational components and contracts (i.e. travel, health insurance, employee benefits and maintenance contracts for the FAO premises) in addition to responding to special requests from senior management and other organizational entities. During most of 2003 the group was also responsible for overseeing the Oil-for-Food Programme audit activities in Iraq. This responsibility was transferred to the Decentralized Group on 15 December 2003.

47. In addition to the foregoing, the Special Assignments and Investigations group is responsible for reviewing and reporting to the Director-General on the financial situation and monthly expenditures in his immediate office as well as any related expenses carried in the budgets of other departments. The group also represents the Office of the Inspector-General on several committees including the Procurement Committee and the Joint Advisory Committee on Medical Coverage (JAC/MC), and supports the Inspector-General with many of the internal management, personnel and administrative matters.

48. A total of 11 specific audit reports were produced in the course of the year, five of which pertain to Iraq and six to Headquarters. These are reflected in Attachment A (iii).

IV. Tender Panel Operations

49. The procurement of equipment, supplies and services is governed by the principles and procedures set out in the FAO Administrative Manual. This assigns to the Office of the Inspector-General responsibility for receiving, opening, recording and retaining under secure conditions all bids in response to tender invitations. This ensures the independence, objectivity, security and transparency of the tendering process.

50. In the past year, the Tender Panel met on 104 occasions and dealt with 368 tenders. For these tenders 6,006 firms were invited to submit bids and 1,870 were received. The 2003 level of operations is slightly lower than for 2002, mainly because of reduced activities in Iraq due to the security situation and end of the Oil-for-Food Programme as well as reduced activities in Kosovo. However, a deliberate more frequent and wider testing of the market for procurement activities continues.

V. Management Activities

Representation on Committees

51. The Office is represented on a number of important “standing committees” in the Organization including the Programme Policy and Advisory Board, the Human Resources Committee, Information Management Technology Committee (and its sub-committees), the WAICENT Committee, the Sponsorship Committee and its working group, the Procurement Committee, the Advisory Committee on Medical Coverage, the Committee on Investments and its Advisory Committee, the Oracle Project Management Committee and Oracle HRMS Project Executive Board, the Joint Committee on Food Services, the TeleFood Policy Coordination Committee, the Corporate Communication Committee, the Field Programme Committee and the Board of the Credit Union. The Office also participates in ad-hoc internal review groups, task forces and evaluation panels. It follows closely the deliberations of the Programme and Finance Committees, Council and Conference, and its senior members meet from time to time with senior officials and representatives from Member Nations, the External Auditor, the Joint Inspection Unit and colleagues from oversight functions in other UN and international organizations.

Staffing

52. Attachment C (i) to this report depicts the staffing situation of the Office as at 31 December 2003. The identification of a replacement for the Principal Auditor (D-1) is in progress. The regional auditor post in Cairo was re-advertised during the last quarter of 2003 as replies received to the first vacancy announcement did not permit preparation of a short list of qualified candidates; and recruitment for the vacant General Service post will be addressed in 2004. To partially compensate for these staff shortages the Office engaged the services of a retired AUD staff member in 2003. Two P-2 candidates selected in the early part of 2003 joined the Office in early 2004. The Office hopes that it will soon approach full strength with a well-balanced team of highly qualified and experienced staff both at the professional and general service levels. However, 2003 was a difficult year with significant staff vacancies and unexpected delays in filling those posts. Nonetheless, the Office compensated with the use of the various partnership programmes, short-term consultancies and work realignments where appropriate. Some summary demographic information on the Office’s staffing is contained in Attachment C (ii).

Staff Development

53. Training and development continue to be important aspects of the overall management of the Office. This comprises three elements: professional audit training; language training; and training in the use of office technology. On the professional side the “on-site” seminar described in section 2 under audit outreach was highly successful. Good use was made of the facilities available within FAO for language and office technology training needs. One auditor is enrolled in a distance learning programme with a UK university and another on an MBA course part time at a university in Rome. Staff also participate from time to time in other training programmes arranged through the Human Resources Management Division. This commitment to training is reflected in the percentage of staff time devoted to training activities, which has grown from 2.5% in 2000 to 3% in 2001, 3.5% in 2002 and 5.2% in 2003. Investment in training and development will continue in 2004.

Staff Meetings

54. The Office continues to have regular theme-oriented staff meetings where experts both from FAO and other international organizations make presentations to the audit staff on current developments in their areas of expertise. This not only covers the traditional finance and administrative fields, but also draws on senior officers from technical divisions. In 2003 this included subjects such as technical advances in information technology, the treasury function in FAO, nutrition, the MSS, FAO’s role in Iraq and IT security.

Administrative Issues

55. A useful internal management device used in the Office is the time reporting and control system. All staff record their time in half-hour units of activity and the time sheets are reported to the Inspector-General. In this way the audit effort is monitored against the target set at the beginning of the year. The target established for 2003 was 25% for Headquarters activities, 50% for decentralized activities, and 25% for special assignments and investigations. The actual audit effort reported in 2003 was 23% for Headquarters activities, 54% for decentralized activities, and 23% for special assignments and investigations. As mentioned earlier, the vast majority of the special assignments take place at Headquarters, making the current audit effort approximately a 50-50 split between Headquarters and the field.

56. In closing, the Office would once again like to express its appreciation to all levels of staff contacted in the course of its audit work, and particularly to members of management for their support and positive responses, cooperation and assistance throughout the year.

ATTACHMENT A(i)

Headquarters Activities

N.B. Due to realignment of priorities as a result of emerging audit needs and the prevailing staffing situation, three reviews planned for 2003 are still in progress, and five have not been carried out, of which two (*) are planned for the next biennium and the others will be considered in future biennia as appropriate.

ATTACHMENT A (ii)

Decentralized Activities

ATTACHMENT A (iii)

Special Assignments and Investigations

N.B. Due to realignment of priorities as a result of emerging audit needs, reassessment of risk and staff shortages, two reviews planned for 2003 are still in progress, and six have not been carried out. Four (*) of these are planned for the biennium 2004-05 and the remaining two will be considered in future biennia if warranted.
** monthly reports

ATTACHMENT B

		Open		Ongoing		Closed
	Total	No.	%	No.	%	No.	%
Headquarters activities
Issued in 2002	105	35	33%	28	27%	42	40%
Issued in 2003	93	*36	39%	38	41%	19	20%
Total	198	71	36%	66	33%	61	31%
Special Assignments and Investigations
Issued in 2002	59	31	53%	15	25%	13	22%
Issued in 2003	53	**43	82%	5	9%	5	9%
Total	112	74	66%	20	18%	18	16%
Decentralized activities (including Iraq)
Issued in 2002	166	30	18%	70	42%	66	40%
Issued in 2003	358	***117	33%	99	27%	142	40%
Total	524	147	28%	169	32%	208	40%
Grand total
Issued in 2002	330	96	29%	113	34%	121	37%
Issued in 2003	504	196	39%	142	28%	166	33%
Total	834	292	35%	255	31%	287	34%

* 18 of which were issued in the last quarter of 2003
** 19 of which were issued in the last quarter of 2003
*** 46 of which were issued in the last quarter of 2003

ATTACHMENT C (i)

ATTACHMENT C (ii)

The following countries are represented in the above:

¹ Mr. J. Sefranek was appointed EOD 4.1.04

² Temporarily stationed in Rome – funded by the Oil-for-Food Programme up to 31.3.04. On 15.12.03 he was transferred to the Decentralized Activities Group.

³ Ms. M. Mukhitdinova was appointed EOD 1.2.04

⁴ Consultant in Afghanistan EOD 1.3.03 with an NTE of 31.12.03

⁵ Includes auditor stationed in Iraq with Oil-for-Food Programme and 6 months consultant in Afghanistan

⁶ Nationals from Czech Republic and Uzbekistan will join the Office in the first quarter 2004