MUCH LEFT TO BE DONE TO INSTILL SENSE OF ACCOUNTABILITY AMONG STAFF MEMBERS, FIFTH COMMITTEE TOLD AS IT TAKES UP INTERNAL OVERSIGHT OFFICE ACTIVITIES

Press Release
GA/AB/3260

MUCH LEFT TO BE DONE TO INSTILL SENSE OF ACCOUNTABILITY AMONG STAFF MEMBERS, FIFTH COMMITTEE TOLD AS IT TAKES UP INTERNAL OVERSIGHT OFFICE ACTIVITIES

Much remained to be done to instill a sense of accountability among staff members, the Fifth Committee (Administrative and Budgetary) was told this morning as it commenced its consideration of the activities of the Office of Internal Oversight Services.

Speaking for the European Union and associated States, the representative of Austria welcomed increased collaboration between the Investigations Section and national law enforcement authorities. Pursuing criminal prosecutions would reflect the Secretary-General's determination to increase accountability as part of the reform programme.

The representative of Pakistan said the Fifth Committee should thoroughly evaluate the proposal to delegate human resources management before such an initiative was implemented. Delegation of authority must not affect either geographical representation or the highest standards of competence, he stressed.

Introducing the Oversight Office's report, the Under-Secretary-General for Internal Oversight Services, Karl Th. Paschke, said that functioning internal oversight was proof of a better, healthier United Nations. The Oversight Office had become a useful component of the United Nations new organizational culture, with some 73 per cent of audit recommendations being implemented.

The representative of Algeria posed a series of questions on the activities and reports of the Oversight Office, which the Chairman, Movses Abelian (Armenia), said would be addressed in a continuation of discussion.

Also this morning, the representative of Egypt spoke as the Fifth Committee concluded its discussion of the United Nations common system.

In his concluding statement, the Chairman of the International Civil Service Commission (ICSC), Mohsen Bel Hadj Amor, welcomed Member States affirmation of the central role of the ICSC. It was also important that Member States had affirmed one of the hallmarks of the ICSC -- its independence. He was gratified to note that, in large part, the recommendations of the ICSC were supported by the Fifth Committee.

The Committee also concluded its discussion of the United Nations pension system, without further speakers.

The Fifth Committee will meet again at 10 a.m. tomorrow, 11 November, to continue discussing human resources management.

Fifth Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to discuss the United Nations common system, the Organization's pension system and the report of the Secretary-General on the activities of the Office of Internal Oversight Services.

(For further information on reports before the Committee on the common and pension systems, see Press Release GA/AB/3255 of 2 November.)

Common System

A note by the Secretary-General transmits the second annual report of the Office of Internal Oversight Services (OIOS) (document A/51/432), covering the period 1 July 1995 to 30 June 1996. Commenting generally on the Office, the Under-Secretary-General of the Office, Karl-Theodore Paschke, says: "My overall assessment after 20 months in office is that the creation of OIOS is one of the most meaningful initiatives taken by the General Assembly in the context of United Nations reform".

During the year, the Office had identified and recommended cost savings of $18.7 million and actually helped to save and recover about $15.8 million. The savings include budget cuts of $6.7 million in 1996-1997 in conformity with the Office's recommendations, the prevention of excessive or unjustified expenditure of some $4 million, and another $4 million from the recovery or prevention of overpayment. From October 1994 until the time of the report the Office made 4,042 audit recommendations on compliance with rules, economic use of resources, the protection of assets and on internal control. The average implementation rate was 61 per cent.

The report summarizes the work of the Office's five divisions: Audit and management consulting; Investigation; Inspection; Monitoring; and Evaluation. For example, the audit division identified almost $12 million in potential recoveries and savings. Almost $9 million in savings and recoveries were realized from actions recommended by the division during this and prior reporting periods. It opened 131 audit assignments and 2,105 recommendations.

A note by the Secretary-General transmits the comments of the Joint Inspection Unit (JIU) on various reports of the Oversight Office (document A/51/530 and Corr.1).

The JIU report supports all recommendations contained in the Oversight Office report and advises the Assembly to approve them. But, noting that the audit deals with two major objects of insurance, the Unit recommends that a similar audit be conducted of all United Nations insured assets. It also recommends that the issue of insurance policies be considered within the Administrative Committee on Coordination (ACC) to explore the possibilities of having common system-wide practices and procedures.

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The Office's report on enhancing the internal oversight mechanisms in operational funds and programmes (document A/51/801) makes recommendations which suggest methods by which the Office can assist those bodies to enhance their oversight. The recommendations have also been drafted to enable the General Assembly to formulate a policy regarding those entities' oversight functions.

The report covers the International Trade Centre (ITC); the United Nations Habitat and Human Settlement Foundation (UNCHS/Habitat); the Fund of the United Nations International Drug Control Programme (UNDCP); the United Nations Development Programme (UNDP); the Fund of the United Nations Environment Programme (UNEP); the United Nations Population Fund (UNFPA); and the Voluntary funds administered by the Office of the United Nations High Commissioner for Refugees (UNHCR). The others are the United Nations Children's Fund (UNICEF); the United Nations Institute for Training and Research (UNITAR); the United Nations Office of Project Services (UNOPS); the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA); the United Nations University (UNU); and the World Food Programme (WFP).

According to the report, the aspects of the entities' oversight functions analysed the adequacy, effectiveness and efficiency of services and resources available to them; the operational independence of the mechanisms; and their accountability to their governing bodies.

Among the Office's recommendations, according to the report, was that the entities should develop mechanisms for the continued monitoring of the implementation of their recommendations and for reporting on the status of implementation to executive heads. They should establish clear procedures for addressing non-compliance with recommendations.

Since it provides investigation services to the entities, the Office says they should allocate adequate resources to the budget of its Investigations Section to ensure effective coverage. Entities that set up their investigation units should ensure their operational independence and develop confidential procedures to protect those who make or are the subject of reports. Finding cooperation among oversight units approached informally, the Office recommended regular monthly meetings among the heads of oversight units. Periodical meetings should be held between the oversight units and management to address planning, coordination and compliance with oversight recommendations.

With the entities lacking reporting procedures, the Office recommended that their oversight units be authorized to submit, through their executive heads, reports on specific issues to their governing bodies.

The Committee also had before it the Secretary-General's annual report on the July 1996 to June 1997 work of the Office of Internal Oversight Services (document A/52/426), in which he says he will continue to seek programme managers' full and timely implementation of the recommendations of the Office.

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Those recommendations would remain key elements in the ongoing reform process.

As in the previous two annual reports, the Secretary-General states, the current, third one, focuses on three areas of oversight priority: peacekeeping, humanitarian and related activities, as well as procurement.

Providing an overall picture of the work of the Office, he says that it had identified and recommended cost savings and recoveries worth about $29.3 million in the July 1996 to June 1977 period. Of that amount, about $10.1 million had accrued from cuts made from the 1996-1999 budget in conformity with the Office's recommendations, some $7.4 million from the prevention of unjustified expenditure, while $6.3 million had been identified as recoveries. According to the Under-Secretary-General for Internal Oversight Services, the Office made about 811 recommendations and the rate of implementation of such proposals had risen from 61 per cent to 71 per cent.

On the priority area of peacekeeping, the Secretary-General says that the Office conducted audits of nearly 20 United Nations operations and facilities such as the United Nations Peace Forces (UNPF); the United Nations Support Mission in Haiti (UNSMIH); the United Nations Logistics Base; the United Nations Peacekeeping Force in Cyprus (UNFICYP); the United Nations Interim Force in Lebanon (UNIFIL); and the United Nations Observer Mission in Georgia (UNOMIG).

In examining humanitarian activities, the Office looked at the work of the UNHCR, the UNRWA and the Centre for Human Rights. In connection with the UNHCR, the Office audits covered expenditures of more than $150 million in 14 country programmes in Africa, Europe and Asia.

Narrating the work of the various divisions of the Office, the Secretary-General says that the audit and management consulting division, for example, had audited assets of $402 million, income of $153 million and expenditures totalling $1.8 billion. Those audits identified about $28 million in potential savings. Almost $16 million in savings and recoveries were realized from actions recommended by the division in that and prior reporting periods. He stressed that the Office continues to use a conservative approach in estimating cost savings.

The investigations section, for its part, received 172 reports and suggestions from heads of offices, departments and funds and programmes, requesting investigative assistance. The geographical distribution of the 172 reports and suggestions is as follows: 69 in the Americas; 49 in Europe; 44 in Africa; 6 in Asia; and 4 in the Middle East. Of the 27 reports received anonymously, eight were received through the Office's hotline. The Section investigated 33 reports that were found to be bona fide but which resulted in the allegations not being proved for lack of sufficient evidence. The accused individuals were cleared.

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Included in the report as appendices are the significant recommendations of the Office on which corrective action has not been taken and lists of reports the Office has submitted to the General Assembly and the Economic and Social Council.

A note by the Secretary-General on his report on the work of the Office (document A/52/464) transmits the comments of the JIU on final reports produced by the OIOS on various subjects. The JIU says it has reviewed all of them and commented separately on the United Nations Logistics Base at Brindisi, Italy.

As for the others, the Unit either agrees in general with their findings or does not find it appropriate to comment on them. The reports include those on the United Nations access control system, the seminars of the Special Committee on decolonization, outsourcing at the United Nations, the International Criminal Tribunals for Rwanda and the former Yugoslavia, UNEP and Habitat.

The Committee also had before it a statement submitted by the Secretary- General on administrative and financial implications of the decisions and recommendations contained in the report of the International Civil Service Commission (ICSC) (document A/C.5/53/4). Those recommendations referred to conditions of service of Professional and higher level staff; base/floor salary scale and staff assessment scale; dependency allowances; conditions of service applicable to all categories of staff; education grant; hazard pay; and recognition of language knowledge.

The Secretary-General explains that the financial implications for the regular budget year resulting from the decisions and recommendations of the ICSC are estimated to be around $2.5 million, net of staff assessment. Those requirements will be taken into consideration when computing the first performance report for the biennium 1998-1999.

Pension System

The Committee also had before it the Secretary-General's report on administrative and financial implications arising from the report of the United Nations Joint Staff Pension Fund (document A/C.5/53/3). According to the text, should the Assembly decide to approve proposals contained in the report and endorse the Secretary-General's proposal, a reduction of $625,400 would be achieved in the programme budget for the biennium 1998-1999.

Office of Internal Oversight Services

The Committee had before it the report of the Oversight Office (document A/53/428) on its activities from 1 July 1997 to 30 June 1998. In a note transmitting the report, the Secretary-General says that the Oversight Office has

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matured since its inception in 1994, and that its reports continue to be a valuable source of reference and guidance in the ongoing process of United Nations reform.

In the report, the Under-Secretary-General for Oversight Services writes that in the period under review, almost three quarters of the Oversight Office's recommendations to programme managers were directed at improving management control and operational efficiency or effectiveness. The Office had largely focused on the United Nations substantive activities: peacekeeping missions and humanitarian affairs had been identified as priorities along with procurement and new United Nations bodies. Now, it was gradually shifting its attention to some of the more systemic deficiencies of the United Nations and the area of human resources management.

Implementation of the Oversight Office's recommendations had steadily increased since its inception, the report states. The implementation rate was one of the most meaningful indicators of the Office's success, and those figures were generated through a system of compliance monitoring. Until June, a gratis personnel had handled the system; the Oversight Office would now be asking for an additional regular budget post for that work. Additional posts would also be requested for the Audit and Management Consulting Division, to achieve an audit cycle of three to four years.

Over the years, the Oversight Office had increased dialogue with its clients, the report states. Also, coordination between it, the Board of Auditors and the JIU had intensified. While there might still be overlap, "oversight indigestion" was largely a matter more of perception than reality. The number of reports published by the Office had increased from 12 in 1995 to an anticipated 20 in 1998, according to the report. More than 60 per cent of reports written today were mandated, an increase from 50 per cent in 1995.

The Oversight Office's emphasis on implementation of its auditing, inspection, evaluation and investigation recommendations had caused changes within the United Nations management culture. The sense of accountability and responsibility thus instilled could be expected to reduce further the occurrence of abuse and to enhance the efficiency and effectiveness of management.

In terms of cost savings and recoveries resulting from the Office's actions, some $21.2 million had been identified and recommended, the report states. In peacekeeping, it had identified administrative weaknesses and concentrated on mission subsistence allowance payments and problems connected with the liquidation of missions. The Office had also looked at insurance, rental and space management, and aviation services.

On human resources management, the Oversight Office had identified the average time required for recruitment: 460.5 days. Classification of a post averaged about 38 days; preparation of the vacancy announcement took some 45 days; circulation took about 30 days; screening of candidates' curricula vitae

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took about 19 days. Review by the substantive department took some 121 days; presentation to the appointment body took almost 87 days; review by that appointment body took about 63 days; review and approval of that body's recommendation took about 21 days; and the time from approval to entry on duty averaged 36 days.

Statements on Common System

AHMED DARWISH (Egypt) said that Egypt supported the important role played by the common system, which created equality for contributing organs. He stressed the importance of the current mandate of the ICSC, its intergovernmental nature and its independence. There was a need for Member States to support the ICSC by choosing for it the best and most efficient elements. He also stressed the ICSC contributions to training and human resources.

He stressed the importance of the Noblemaire Principle, regarding the salaries and conditions of service of the Professional and higher categories staff. Additionally, the quality of staff was important, and there was a consequent need for continuous training with emphasis given to management culture. That went hand-in-hand with a dynamic reform programme. It was also important to respect the Flemming Principle for establishing salary and conditions of General Service staff.

Commenting on the ICSC report, Egypt was pleased by the efforts made by the Working Group and the consultations it had carried out, he said. Those efforts to strengthen consultations should be continued, but they should also take into account the independence of the ICSC. Egypt agreed with the ICSC recommendations on the post adjustment at Headquarters and stressed the importance of consideration of the post adjustment for Geneva. On the importance of linguistic skills, Egypt agreed with the ICSC recommendation that for Professional posts a higher degree of language knowledge should be required and that should be used in the calculation of pensions. It fully supported the statement made previously by the representative of Morocco on the equality of the six official languages.

The safety and security of staff, to allow them to carry out their tasks, was important, he said. The Staff Union should participate further in the work of the ICSC. It must also note the resolutions of the Fifth Committee. Trust between the Fifth Committee and the Staff Union would help improve the work of the Organization. Human Resources reform would play an important role in that.

MOHSEN BEL HADJ AMOR, Chairman of the International Civil Service Commission (ICSC), responding to matters raised in the Committee's discussion of the common system, said the reaffirmation by Member States of the central role of the ICSC was important. It was also important that Member States had reaffirmed one of the main hallmarks of the ICSC -- its independence. That was also important to the ICSC. He assured Member States that the ICSC would do its utmost to ensure the continuation of Member States' confidence in it.

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He was gratified to note that, in large part, the recommendations of the ICSC were supported by the Fifth Committee, as were the ICSC efforts to improve its annual report. He had noted Member States' keen interest in the normalization of relations between the ICSC and staff bodies. The ICSC was also keen to open a new chapter on that, hence its support for the Working Group.

He assured all concerned that the ICSC would not fail to monitor changes to ensure they would not affect the efficient working of the ICSC. Working groups involved costs. At this stage, the ICSC did not know how many working groups would be required. Therefore, it was difficult to accurately anticipate the financial implications of their use. Regarding recommended changes to regulations, he assured the Committee that those amendments were not in conflict with the statute of the ICSC. However, that had not been the case with all of the Working Group's original proposals, which was why the ICSC had introduced some changes to those recommendations.

The ICSC was responsive to concerns expressed about the base/floor salary, he said. He hoped to be able to report next year that progress had been made in addressing those concerns. He was grateful for the Committee's support for ICSC plans to review the Noblemaire Principle in 2001. The possible use of a basket of comparators had been addressed by some Member States. In the next review, the ICSC planned to examine that option to determine whether it was feasible, and to examine aspects and modalities of such an option. However, he emphasized that the ICSC would consider that as only one of several approaches.

On the issue of the comparison of total compensation between the United States and German civil services, in this year's report the ICSC had noted that the differences between the two services' was narrowing, he said. Despite that, the German civil service package continued to be superior to the United States package. When the ICSC returned to that issue as part of its review of the Noblemaire Principle in 2001, it expected to have more specific information on the comparison. It also intended to conduct total compensation comparisons between the current comparator and the United Nations system, as had been done in the 1980s.

The issue of expatriation had been placed before the ICSC by the General Assembly in the context of the margin, he said. When considering that, the ICSC had before it a number of previous reviews. Accordingly, while some aspects might continue to be studied, the ICSC thought it had sufficient information available to it to report on that to the current General Assembly session. On the matter of comparisons with the United States expatriation benefits, there seemed to be some misunderstanding. In its review, the ICSC examined the Comparator's package of benefits for the Federal civil service working outside the United States, not those of the United States foreign service staff who were only a small percentage of United States civil servants stationed abroad.

On the subject of the Geneva post adjustment, the ICSC had made a conscientious effort to meet the General Assembly's request, he said. The

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Assembly had previously welcomed the extensive information the ICSC had provided. The technical, legal and administrative difficulties related to the request had been brought to the General Assembly's attention. The ICSC had provided all possible information to the Assembly and considered that it was now up to the General Assembly to make a decision on the matter.

He said the recommendations of the Board of Auditors on independently identifying outlets for price collection, on improvement of questionnaires, on data collection methods to obtain more accurate expenditure rates and on low response rates in past expenditure surveys had been transmitted to the ICSC Advisory Committee on Post Adjustment Questions for further action. It had met in September, and had formulated guidelines to be considered by the ICSC at its next session. Several sample techniques had been recommended to establish expenditure rates more accurately. In that regard, contacts between national and international statistical organizations and the ICSC were continuing. The ICSC felt response rates to surveys were not low when compared to similar surveys of similar populations, and that primary importance should be given to the quality and consistency of information gathered.

On the comparison of data, he informed delegations that the ICSC had used independent comparisons to verify survey results, including from the Comparator's post adjustment system. Those would continue. Bearing in mind that the purpose of the post adjustment was the equality of purchasing power for staff at all duty stations, he believed that rent data from external sources could be useful. Rent data from several external sources had first been used in 1995. Index movements had also been used for some duty stations in North America, Europe and Japan. He drew Member States' attention to the fact that there was no one existing source of data that would fit the United Nations needs, so adaptation would continue to be necessary. The ICSC was already on the way to implementing many of the Board of Auditors' recommendations.

On the Flemming Principle, the Board of Auditors had said it represented a higher level than the seventy-fifth percentile of the local labour market, he said. The ICSC had reviewed the Flemming Principle and had made adjustments as appropriate. In the 1992 review, the changes introduced had not been appreciated by staff representatives, and that was the main reason they had suspended cooperation with the ICSC. The results of the 1997 review had been reported to the General Assembly. As a consequence of that review, modifications would ensure greater representation of local sector employers, including local civil service.

On the education grant, he said that in repeated considerations over the years, the ICSC had maintained that the entitlement should be limited to expatriate staff. He also reaffirmed that the purpose of the grant was to aid reintegration of children in the staff member's own country. A delegation had requested that the ICSC develop guidelines for accountability for equitable geographic representation. When the ICSC studied geographic representation in 1986, it decided it did not have the mandate to determine guidelines. However,

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the Working Group on Human Resources Management would doubtless have something to say on the matter.

The ICSC had taken note of Member States' comments on staff security, he said. That was not an area in which the ICSC normally got involved. The ICSC recognized that staff were often called upon to work in conditions that threatened their security, and therefore it granted hazard pay for some situations. Security was also taken into account in the hardship scheme, which was an ICSC responsibility.

Comments by the staff representatives were surprising and disappointing in the light of the ICSC's sincere attempts to create every condition for rapprochement, he said. They had not been able to refrain from using the rhetoric of the past in describing the ICSC's work as "flawed". As resumption of cooperation now rested solely with the staff bodies, he wondered what had motivated those statements.

He said that as for criticism of the amount of time the ICSC spent considering the Working Group's report, it was always the practice of the ICSC to thoroughly consider all documents. It never merely "rubber stamped" documents before it, and the Working Group report was no exception. It was also incumbent on the ICSC to ensure that proposed changes were legal and did not impinge upon the responsibilities, prerogatives and independence of the ICSC. After all the ICSC efforts to move to higher ground, those remarks did not advance the consultative process.

KARL TH. PASCHKE, Under-Secretary-General for Internal Oversight Services, introduced the report on his Office's activities for the period from 1 July 1997 to 30 June 1998. It was the fourth annual report he had submitted and there would be one more before his tenure was complete. In the preface, he had emphasized the improved horizontal communication within the United Nations and mentioned ongoing efforts for more delegation of authority and more accountability, which were central management issues, but deserved critical oversight attention.

He drew attention to the fact that the number of reports published by the Oversight Office had increased each year, and that they were more often than not being mandated by legislative bodies. While that indicated growing interest of Member States in the work of his Office, his ability to react swiftly to oversight problems was negatively affected by limited resources. The report reaffirmed the Office's priority areas and added a new one: human resources management.

During the reporting period, the Office had generated savings in the amount of $21.2 million, he said. The implementation rate of audit recommendations had increased to 73 per cent. Most recommendations focused on improved operational efficiency or effectiveness, and on improved management control, demonstrating

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the proactive nature of internal oversight, as well as its interaction with management.

On audit of humanitarian activities, he said the UNHCR was one of the Office's major clients, and coverage of that body had increased in response to its ongoing efforts to decentralize. The Oversight Office had also audited other humanitarian activities, including those of the Office for the Coordination of Humanitarian Affairs and the Office of the High Commissioner for Human Rights.

Further, it had continued to review procurement as a priority, looking at insurance policies, rental and space management and aviation services, he said. The International Criminal Tribunal for Rwanda had been revisited and a similar exercise was currently being conducted at the Tribunal for the former Yugoslavia.

The report aimed to provide an overview of the Office's work, he said. It contained brief digests of cases which had been subject to earlier reports, as well as cases which were not reported in detail because they were routine or still in the disciplinary or legal processes. The report's general message was that functioning internal oversight was proof of a better, healthier United Nations and that the Oversight Office had become a useful component of the United Nations new organizational culture.

ERNST SUCHARIPA (Austria), for the European Union, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Cyprus, Iceland, Liechtenstein and Norway, said the Office's focus on substantive activities had revealed persistent deficiencies throughout the United Nations. The Union welcomed the gradual shift to a horizontal approach to addressing problems of a more systematic nature, which would further advance effective and efficient programme management and delivery, and contribute to the long-term beneficial effect of the Oversight Office on the United Nations.

The Union concurred with the Oversight Office's observation that inefficiencies in the Organization's administrative activities were perhaps the main impediment to efficiency in substantive work and operations, he said. Since the United Nations spent 75 cents out of every dollar on staff -- which made them the Organization's most significant resource in financial terms -- it was more than appropriate that the Office include human resources management in its priority areas for oversight. The review of the functioning of common services by the Oversight Office at various duty stations would help eliminate duplication and overlap in personnel and financial administration and in support services.

The twin concepts of delegation and accountability were key for a mission- driven and results-oriented Secretariat, with goals of enhanced performance, better productivity and increased cost-effectiveness, he said. Much remained to be done to instil a sense of accountability among staff members. No authority

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should be delegated without first developing effective accountability mechanisms.

Since the benefit of oversight was in the effective implementation rate of recommendations, he was pleased to note that implementation rates had increased, he said. He supported the issuance of guidelines on programme monitoring and evaluation standards for heads of departments and offices, which would help programme managers assume greater responsibilities. He welcomed the intensified coordination between the Oversight Office, the Board of Auditors and the JIU.

He also welcomed increased collaboration between the Office and the operational funds and programmes, as well as cooperation between the Investigations Section and national law enforcement authorities in various countries. The decision by programme managers to seek criminal prosecutions would send a signal that criminal conduct would be vigorously pursued and would reflect the Secretary-General's determination to increase accountability as part of the reform programme.

AMJAD HUSSAIN SIAL (Pakistan) said his delegation attached great importance to the oversight function which was essential for effective use of meagre resources. Though it was not a substitute for good management, efficacious oversight helped managers better perform their mandated activities. He noted with satisfaction the large amount of savings achieved as a result of the Office's actions. Further, he noted the high rate of implementation of the Oversight Office's recommendations.

There should be greater coordination between the oversight bodies to avoid duplication of work, he said. A large number of the Office's recommendations concentrated on audit and investigation. Since the audit function was satisfactorily carried out by the Board of Auditors, the Oversight Office should have focused on its inspection and evaluation activities. The Office should pay greater attention to implementation of programmes and whether activities responded to mandates. Due to lack of coordination between oversight bodies, different recommendations had been put forth on internal control standards developed by the International Organization of Supreme Audit Institutions. He looked forward to hearing the views of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on the matter.

The Office's report referred to a conference held in Montreaux, he noted. What had been the nature of that conference? In what capacity had the Oversight Office participated? Was expenditure incurred from the United Nations budget? he asked.

The Secretary-General had approved all the Oversight Office's recommendations, but it was not evident how many recommendations had been sent to him without approval by programme managers, he said. Such information should be included in annual reports. What was the procedure for dealing with recommendations that were not agreed on by programme managers? he asked.

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The report also mentioned that the Committee for Programme and Coordination (CPC) endorsed all the Office's recommendations on the start-up phase of peacekeeping operations, he said. The CPC had given qualified endorsement on some recommendations, subject to intergovernmental concurrence. Any recommendation requiring legislative action should be submitted through established procedures.

On delays in the recruitment process, he recalled that the Office of Human Resources Management had said that normally recruitment did not take 461 days. The Committee would benefit from the comments of the Office of Human Resources on the issue. He was concerned to note that the recruitment process lacked transparency and asked for further clarification from the Under-Secretary- General. On delegation of authority for human resources management, the Fifth Committee should evaluate the proposal in depth before such an initiative was implemented. Delegation of authority must not affect geographical representation and the highest standards of competence.

The Secretary-General's report on consultants had taken into account the Office's recommendations, but the recommendation that geographical balance in the use of consultants should not be used indiscriminately -- to avoid travel costs - - required further consideration, he said. In 1996 to 1997, 30 per cent of all consultancies had gone to four countries. The situation must be addressed.

Regarding poor internal controls in the United Nations Conference on Trade and Development (UNCTAD), he noted that only one case had been cited in the Office's report. Were there other cases of misuse and fraud? he asked. The performance report for 1996-1997 did not indicate the causes for the low implementation rate of mandated activities in priority areas. On results-based budgeting, he said the Office should first evaluate the present system and recommend changes where necessary. A complete change in the system without consideration of all related issues could be counter-productive. It seemed that there was lack of coordination between the Office of Internal Oversight Services and the Office for Budget Planning. All relevant departments must cooperate better in the preparation of the performance reports.

DJAMEL MOKTEFI (Algeria) said he wanted to pose some questions.

MOVSES ABELIAN (Armenia), Fifth Committee Chairman, said there would be opportunity for follow-up questions, but the representative of Algeria could ask now if he wanted.

Mr. MOKTEFI (Algeria) asked for clarification on what was meant by the concept of "client", particularly since the Oversight Office worked in what might be called the public sector. Regarding guidelines for norms of internal oversight, the Assembly had asked the ACABQ to express its views on revising the financial rules. That body had said the guidelines were too general, were not functional and should not be included in the financial rules. He asked to hear Mr. Paschke's views on that.

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The Oversight Office had requested an additional post to manage monitoring of implementation of recommendations, but the report also said that follow-up on recommendations was ensured by a computer system, he noted. Since that system existed, was the Office still requesting an additional post? Were the amounts indicated in the report related to overpayment due to errors by the administration, or was it the recipients who miscalculated to receive overpayment? he asked.

Table 3 of the report indicated that an over-concentration of Oversight Office activities in audit, oversight and investigative activities were minimal in comparison, he said. He asked for an analytic comparison between tables 1 and 3, and asked for estimated amounts relating to productivity and operational efficiency.

The report said that discussion in the Fifth Committee on enhancing internal oversight in operational funds and programmes had not progressed, he said. Such an assessment of an intergovernmental body was unacceptable. It did not fall within the competence of an internal oversight body to assess the work of an intergovernmental body.

The CHAIRMAN said questions and comments by Committee members would be responded to at the last meeting on the item, scheduled for Friday, 13 November.

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