Internal auditors at the International Monetary Fund released a harshly critical report on governance Wednesday and urged 'major changes' to maintain the embattled institution's relevance.

The Independent Evaluation Office of the IMF said that effectiveness had been the strongest aspect of the 185-nation institution's governance, 'while accountability and voice have been the weakest.'

'If left unaddressed, these weaknesses would likely undermine effectiveness over time,' IEO director Thomas Bernes said in a statement.

'This evaluation report calls for major changes in the governance of the Fund to strengthen its relevance and accountability and allow it to continue to play a central role in global financial and monetary matters into the future,' Bernes said.

The study recommends the reorientation of the executive board away from operational activities to a more supervisory, strategic role and the strengthening of involvement of member nations' ministers in the implementation of the reforms.

The IEO released its report on governance following its discussion by the IMF executive board on May 21.

In a separate statement, the IMF managing director, Dominique Strauss-Kahn, acknowledged the criticisms and promised reforms.

'I plan to announce some initiatives to take the governance reform forward in the coming weeks,' he said.

The IEO said the executive board should meet 'less frequently' to take on a broader, more strategic function.

'The board should actively address the main gaps identified in the governance of the Fund, particularly weak oversight over management and ineffective monitoring of the implementation of agreed policies,' it said.

'Significant ministerial-level involvement from member countries will be needed to implement these reforms, as well as in the future governance of the Fund, perhaps through the activation of a council of ministers.'