ADMINISTRATIVE AND BUDGETARY COMMITTEE CONTINUES CONSIDERATION OF FINANCING PEACEKEEPING OPERATIONS

11 May 1999

Press Release
GA/AB/3293

ADMINISTRATIVE AND BUDGETARY COMMITTEE CONTINUES CONSIDERATION OF FINANCING PEACEKEEPING OPERATIONS

19990511 Role of Board of Auditors in Oversight, Success of Operation in Croatia, Gratis Personnel among Issues Discussed

In its review of peacekeeping operations, the United Nations Board of Auditors "held management's feet to the fire", where necessary, and thus ensured that problems were promptly identified and corrected, the Fifth Committee (Administrative and Budgetary) was told this morning, as the Committee continued its consideration of the financing of peacekeeping operations and took up financing of the United Nations Logistics Base at Brindisi, Italy.

The representative of the United States said that while he was generally pleased with the oversight framework for management of peacekeeping missions, he was disappointed to learn about incidents of noncompliance, mismanagement, waste and a general lack of common sense, which reduced the efficiency and effectiveness of the peacekeeping missions. Missions should not be exempt from the rules of the Organization, he said, and the Organization should not look the other way because of difficult field conditions when irregularities occurred.

Speaking about a proposed review of the methods of reimbursing Member States for contingent-owned equipment, the representative of Pakistan expressed confidence that the Department of Peacekeeping Operations possessed the expertise to conduct such a review. Outside expertise, as proposed by the Advisory Committee on Administrative and Budgetary Questions (ACABQ), was not required, he said.

The representative of Croatia praised the success of the United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES), which had not only succeeded in contributing to peace and security, but had also cost some $15.2 million less than anticipated. The key factors behind the success of that mission were a clear and realistic mandate, close cooperation with the host nation and the generous support of troop- contributing countries. The lessons from the mission could be valuable for others, she said.

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The representative of Japan told the Committee that the capacity of Headquarters for backstopping peacekeeping missions could not be properly gauged until the Organization had adjusted to the phasing out of the use of personnel provided free-of-charge by Member States -- gratis personnel. The level of resources requested for the Peacekeeping Support Account should be considered with that in mind, he said.

The representatives of Germany (on behalf of the European Union and associated States), New Zealand (speaking also on behalf of Australia and Canada), Republic of Korea, Jordan and Algeria also made statements.

Seth Komla Adza, Chairman of the Audit Operations Committee of the United Nations Board of Auditors, and Jean-Pierre Halbwachs, the United Nations Controller, answered questions raised by Member States.

The Committee will meet again at 10 a.m. Thursday, 13 May, to consider the Development Account, under its agenda item on the programme budget for the biennium 1998-1999.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to continue its discussion of the financing of a number of United Nations peacekeeping missions and to commence its consideration of the financing of the United Nations Logistics Base at Brindisi. (For background on the financing of peacekeeping missions, see Press Release GA/AB/3292 of 10 May.)

The Committee had before it a report of the Secretary-General on financing the United Nations Logistics Base at Brindisi, Italy (document A/52/858), which presents the budget of the Base for the 12-month period from 1 July 1998 to 30 June 1999. The total budget amounts to some $7.1 million gross and provides for the maintenance of the Base (some $6.3 million), as well as for non-recurrent requirements for equipment to complete two start-up kits ($829,900). The report also includes a progress report on the backlog clearance project and the cost-benefit analysis requested by the General Assembly in its resolution 52/1 of 15 October 1997.

According to the report, this 12-month budget represents a decrease of some $2.6 million against the operating cost estimates for the prior 12 months. The budget provides for a civilian establishment of 20 international and 28 locally recruited staff. The estimates also provide for general temporary assistance, alterations and maintenance of premises, transport operations, communications, other equipment and spare parts, contractual services, miscellaneous supplies and freight. The estimated cost for the start-up kits covers the purchase of vehicles, observation equipment and miscellaneous supplies.

A second Secretary-General's report (document A/53/776) contains the financial performance report of the Logistics Base at Brindisi for 1 July 1997 to 30 June 1998. The General Assembly authorized commitments totalling some $13.1 million for the period, inclusive of an amount of some $4.2 million for the clearance of backlog inventory.

Resources amounting to about $10.8 million were provided on an ad hoc basis from the appropriations approved by the General Assembly for peacekeeping operations for the same period. Expenditures for the period totalled about $9.5 million, resulting in an unencumbered balance of some $1.4 million, consisting of $817,400 for the maintenance budget and $556,200 for the backlog clearance budget. The unencumbered balance resulted primarily from civilian vacancies and reduced requirements for maintenance and contractual services.

The Secretary-General recommends the Assembly decide to apply the unencumbered balance of about $1.4 million to the resources required for the period from 1 July 1999 to 30 June 2000.

In another report on financing the Logistics Base (document A/53/815), the Secretary-General asks the General Assembly to: approve an amount of

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about $7.8 million for maintaining the Base during the 12-month period from 1 July 1999 to 30 June 2000; decide to apply an unencumbered balance of $1.4 million to the amount required; and prorate the balance of roughly $6.4 million among budgets of the individual active peacekeeping operations.

The proposed resource estimates represent a 9 per cent increase ($642,000) compared to the apportionment for the current period, the report states. The proposed amount reflects a 14.6 per cent increase in civilian personnel costs and a 2.3 per cent increase in operational costs, which are partially offset by a 20 per cent decrease under other programmes, including premises.

The Base is currently staffed with 20 international personnel and 28 locally recruited staff. Since 55 posts which are funded under general temporary assistance involve continuing functions, the Secretary-General proposes that those positions be regularized, which would change the number of locally recruited staff from 28 to 83, but not involve additional costs.

Of the proposed budget, 58 per cent relates to civilian personnel, 42 per cent to operational costs, and less than 1 per cent to other programmes, the report explains. Financed on an ad hoc basis prior to July 1996, the Base was given about $25.8 million from July 1996 through June 1999. Its expenditures came to roughly $22.4 million.

The Brindisi Base has been in operation since late 1994 under a rent-free arrangement with the Government of Italy. Its role is to enhance efficiency by storing and maintaining reusable assets from liquidated missions, for use by new or existing missions. Also, it maintains two mission start-up kits ready for immediate deployment. Each is designed to provide basic support requirements for up to 100 persons for up to three months in a "bare-base" environment anywhere in the world. Further, it acts as a satellite communication link between United Nations Headquarters and peacekeeping operations in Central Asia, the Middle East and the former Yugoslavia.

A note by the Secretary-General on the Brindisi Base (document A/C.5/53/60) contains a table summarizing the proposed budgetary requirements for each peacekeeping mission for the period 1 July 1999 to 30 June 2000. The total estimated requirements for all missions for the period are some $605.6 million. The prorated provision for the Brindisi Base is estimated at some $6.4 million, and the prorated provision for the Peacekeeping Support Account is some $32.2 million, making an overall total of some $644.2 million.

In a related addendum to a report from the Advisory Committee on Administrative and Budgetary Questions (ACABQ) (document A/53/895/Add.8), the Advisory Committee recommends acceptance of the Secretary-General's proposal to apply the unencumbered balance of some $1.4 million to the resources required for the period from 1 July 1999 to 30 June 2000.

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The ACABQ also recommends approval of the Secretary-General's proposed budget of some $7.8 million for 1 July 1999 to 30 June 2000, after adjustment for the reduction of $327,300 recommended by the Committee in relation to general temporary assistance.

Regarding the cost-benefit analysis of the Brindisi Logistics Base contained in the Secretary-General's report (A/52/858, Annex VII), the Advisory Committee states that it was informed that annual operating costs are approximately $10.2 million, and the book value of material shipped out by the Base (saving the Organization the cost of new procurement) was estimated at $23.6 million. It could thus be concluded that, for every dollar spent running the Base, the United Nations has saved $2.30 in new procurement costs.

Moreover, the Advisory Committee is convinced, according to the report, that the Base is currently performing good work for the United Nations by maintaining two mission start-up kits in a state of readiness for deployment at short notice, offering services directly related to assets management, and providing communications support through the global satellite network to peacekeeping operations and missions worldwide, and to several specialized agencies. Nevertheless, the report states, it is evident that the long-term future of the Base will depend not only on the future level of peacekeeping operations, but also on the extent to which the Base can be used to manage other assets of the United Nations, the specialized agencies, funds and programmes, as well as the extent to which its potential for training and communications services is increased.

Statements

RITA SCHUTT (Germany), speaking on behalf of the European Union and associated countries, said that the Union welcomed the positive developments at the United Nations Logistics Base at Brindisi. Its good work for the United Nations was confirmed by the cost-benefit analysis contained in the Secretary-General's report (document A/52/858). The Union took note of the observation of the ACABQ with regard to inventory management. That being the key function of the Base, it should be given the fullest attention.

Continuing, she endorsed the Advisory Committee's recommendation that the Secretary-General should clearly indicate in the context of the next budget submission the resource requirements necessary to accomplish the basic functions of the Base. Finally, the Union was convinced that the long-term viability of the Base could and should be further increased, and encouraged the Secretary-General to take additional steps to make wider use of the facility by providing its services on a cost-sharing basis to the specialized agencies, funds and programmes. In that context, the ACABQ had also pointed to the possibility of increasing the Base's potential for training and communications.

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TREVOR HUGHES (New Zealand), speaking on behalf of the delegation of Australia, Canada and New Zealand, commended the Secretariat for the considerable improvements made in the peacekeeping budgets for 1999-2000. As the ACABQ pointed out, the budget projections were now much more realistic, thanks to the greater use of actual costs and experience in the field. More account had been taken of the number of mission appointees on the ground, real rather than notional vacancy rates had been used, and the actual prices and rates negotiated for contingent-owned equipment and system contacts had been applied, wherever possible. Such improved budget-forecasting techniques, placing more emphasis on actual field experience over standard or notional costing, had led to significant reductions in the 1999-2000 estimates and should result in a decrease in the large unencumbered balances that had characterized peacekeeping budgets in recent years.

He went on to say that some issues still remained to be addressed by the Secretariat, including the treatment of miscellaneous income. Under the principle of full budgeting, both income and expenditure projections should be disclosed. Another issue was the high level of unliquidated obligations. He was particularly concerned about the $97.4 million in questionable unliquidated obligations and the $51.9 million in uncleared inter-office vouchers identified in the Board of Auditors report. The problems in those areas had a direct impact on the funds due to Member States, whether as troop contributors or in credits to be returned.

Peacekeeping operations had a cumbersome management structure, he continued. Clearer lines of authority and accountability would help promote more efficient use of resources. He encouraged the Secretariat to set up a more appropriate structure for both within missions and between missions and Headquarters. Administrative procedures were very complex and might not be suitable for the nature of those operations. The Board of Auditors, in its next report, should clearly identify areas where improvements and streamlining of procedures would lead to more efficiency. He welcomed progress made by the Secretariat in the timely phase out of gratis personnel, restructuring of the Department of Peacekeeping Operations and vastly improved documentation.

Recognizing that it was a transitional year for the Department, his delegation nevertheless expected that the critical evaluation called for by the ACABQ would be conducted in the current year and reflected in reduced requirements in 2000-2001. He also strongly welcomed the report of the Special Committee on Peacekeeping Operations, which called for the full establishment of the requisite military positions. To that end, the delegations supported the need to make the rapid deployment headquarters operational by securing its full establishment. Also, he continued to be concerned at the apparent absence of any timetable for the installation of the Integrated Management Information System (IMIS) in peacekeeping operations.

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In conclusion, he also noted that the United Nations Transition Assistance Group (UNTAG) account had over $20 million in cash and only $2.8 million in liabilities, of which $2.2 million was due to the Peacekeeping Reserve Fund. He believed that the available cash in that and other closed peacekeeping accounts should be distributed in accordance with the financial regulation on a priority basis.

JAMES BOND (United States), referring to the Peacekeeping Support Account, said the United States remained concerned about and involved in peacekeeping operations, and would work to make them effective and efficient. For several years, it had called for a review of peacekeeping, including of the Peacekeeping Support Account. That account was used to fund posts in a variety of Headquarters departments. Sadly, despite discussions last year, the Secretariat had not conducted the requested wide-ranging review of that function.

Once again, the Member States had been presented with a support account request that glossed over important functions and did not address fundamental problems of overlap and duplication, he said. The presentation on the overlap between the activities of the staff of the Department of Peacekeeping Operations and the Department of Political Affairs was not convincing. While the roles were different, he was convinced there was duplication between the tasks carried out by certain desk officers in both.

The United States was pleased to note the recommendation that some posts be transferred from the Department of Management to the Department of Peacekeeping Operations, he said. However he was less than impressed by the information on the Field Administration and Logistics Division, where almost 200 posts were not adequately justified by section. He would find it hard to make a final decision on that area without more information.

He noted the restructuring of the Department of Peacekeeping Operations, including the creation of the Military and Civilian Police Division and the relocation of the Situation Room, he said. The United States would closely observe the operations of the Military and Civilian Police Division and would expect to see its full integration into the Department, and would look for improved responsiveness in crises from the Situation Room.

He said the Secretary-General had noted that the Department of Peacekeeping Operations also provided administrative and logistics support for a variety of missions. He would like to see details of that support. He was also pleased to note that the Secretariat and the ACABQ had commended the rapidly deployable headquarters, but making it fully functional could not be done at the expense of expertise elsewhere in the Secretariat.

AMJAD HUSSAIN SIAL (Pakistan), responding to the ACABQ proposition that the current level of the Peacekeeping Reserve Fund should be reconsidered by the

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General Assembly, said that the only rationale offered for that was a decline in the level of peacekeeping operations. The level of the Fund was $150 million, when the total level of peacekeeping funds was at about $1 billion. It remained unchanged when peacekeeping funds reached $3 billion. Careful study was needed before any decision to reduce the fund was made.

On the Board of Auditors review of the generic fair value of contingent- owned equipment, Pakistan supported the recommendations made by the phase IV working group on reimbursement for contingent-owned equipment, but a decision should only be taken by the phase V working group. The phase V group could be convened early in 2000 to undertake such a review. He would like to be informed of the Secretariat's response to previous working group recommendations on the review of the manual on contingent-owned equipment. He would also be grateful for clarification from the ACABQ as to why in-house expertise needed to be supplemented for a review on generic fair market value of contingent-owned equipment. He was confident that the Department of Peacekeeping Operations possessed the expertise for the review, which should be done in consultation with Member States.

He said he would like to be informed as to why the Board of Auditors thought there would be extra costs attached to the retrospective application of the new methodology for reimbursement for contingent-owned equipment, particularly as the Secretary-General had stated that a definitive comparison of the old and new methodologies was not available.

Continuing, he said the General Assembly had mandated the Special Committee on Peacekeeping Operations to review the whole question of peacekeeping operations in all aspects, including future financing of the missions. As that mandate was still in force, it must be respected. He noted that the Secretary-General's response to the report of the Board of Auditor did not specify the title of the official who should be held accountable for the Board's recommendations. What action had been taken on the recommendation that a special committee on implementations of the Board's recommendations be established? he asked.

JASMINKA DINIC (Croatia) said Croatia had hosted five peacekeeping operations since 1992. Of those missions, some had been more successful than others. Croatia recognized the success of the United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES). It had been reported that expenditures to 30 June resulted in an unencumbered balance of some $15.2 million, and the ACABQ had commended the mission for its savings. Croatia believed the key factors behind the success of the mission were a clear and realistic mandate, close contribution with the host nation, and the generous support of troop-contributing countries. The lessons from the mission could be valuable for others.

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JUICHI TAKAHARA (Japan), speaking about the Peacekeeping Support Account, noted several important trends in peacekeeping operations in recent years: a diminished number; an increase in complexity; objectives that went beyond purely military objectives; growing contact between local personnel and peacekeeping staff; a rising number of attacks on personnel; and an increased need for military and civilian police. The Department of Peacekeeping Operations, therefore, had a number of new responsibilities. The effects of those changes should be analysed in the context of any review of structures and functions.

In the light of those developments, he welcomed the opportunity to comment on budget proposals for the Peacekeeping Support Account for the period until 30 June 2000. He noted improvements in the format and content of the Secretary- General's reports. The Support Account report pointed out that the current period was one of transition, characterized by the phasing out of gratis personnel. The structure, functioning, effectiveness and efficiency of the Department would need to be monitored and, at a later stage, a review should be conducted. Member States would not know the capacity of the Headquarters for backstopping until after it had adjusted to the phase out of gratis personnel. The level of resources requested should be considered with that in mind.

Regarding the Military and Civilian Police Division, he welcomed the phasing out of gratis personnel and the efforts made to fill the vacant Support Account posts, he said. It was necessary to consolidate personnel in the new Division, to enhance cooperation between military and civilian personnel at United Nations Headquarters. The goal must be to provide peacekeeping missions with the best functional support.

Regarding the change to the Office of Logistics Management and Mine Action, he wanted greater information on the fragmentation of tasks. Clarification on extrabudgetary posts in the Mine Action Service would be appreciated. The relationship between the Departments of Peacekeeping Operations and Political Affairs required careful consideration from a coordination standpoint. He believed the ACABQ recommendation about the use of an 8 per cent vacancy rate for Professional posts and a zero vacancy rate for General Service posts was appropriate.

PARK HAE-YUN (Republic of Korea) said that his delegation appreciated the improvement in the format of the performance report, which presented more clearly a programmatic analysis of the tasks and functions of the Base. He noted with satisfaction that the Base had completed the clearance of the backlog within budget and within the anticipated time frame. Also, the Base had created an asset inventory verification database which would enrich the single database for the field assets control system.

He attached great importance to inventory management and hoped that the task of establishing an accurate inventory would be completed as soon as possible. He also took note of the arrangements to ensure recovery of any

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excess costs incurred by the Base for logistics support to the specialized agencies or to funds and programmes. For the sake of clarity, the miscellaneous income from those arrangements should be included in the performance report, as well as in future proposed budgets.

THOMAS A. REPASCH (United States), addressing the report of the Board of Auditors on peacekeeping operations, said that the Board played a critical role in auditing the financial statements, rendering an opinion on their accuracy and fairness, and recommending measures to correct problems and improve operations. While his country was generally pleased that the oversight framework for management of peacekeeping missions was working well, it was also disappointed to learn about incidents of non-compliance, mismanagement, waste and a general lack of common sense, which had reduced the efficiency and effectiveness of the peacekeeping missions.

Missions should not be exempt from the Organization's rules, and the Organization should not look the other way when irregularities occurred because of difficult field conditions, he continued. He was grateful that the auditors reviewed operations and, where necessary, "held management's feet to the fire" to make sure that problems were identified and corrected in a timely manner.

He said there were several points on which his delegation would insist, including: the need for the managers in the Secretariat and the field missions to take the findings of the Board of Auditors seriously; to implement the recommendations; and to hold people accountable for their mismanagement, fraud, waste and abuse. While the Department of Peacekeeping Operations and the Secretariat had responded positively to many of the findings, there were still too many instances where accountability was not vigorously pursued.

Turning to the details of the report, he said that claims submitted by troop-contributing countries had not been recorded in the accounts. A sample check by the auditors had revealed that $60.3 million in claims had not been recorded. He wanted to know how it had occurred, how much was involved and what had been done to correct the problem. His other question was why such deficiencies would not cause the auditors to view the financial statements as inaccurate or misleading. As that could affect the overall assessments to Member States, he also wanted to know what form the proposal would take and when it would be made.

As a result of a contractor's unsatisfactory performance in Angola, some 50 United Nations staff, at a cost of $300,000 per month, had continued to undertake tasks that should have been performed by the contractor, he continued. While he noted the Department's responses to those findings, in report A/53/932, he asked for more information about the actions being taken. Also in Angola, the contractor providing rations had repeatedly failed to meet specified standards. Despite that, his contract was renewed on four separate occasions. It did not have a poor performance clause and the performance bond was never invoked. The

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auditors had recommended that the Department make deductions for unauthorized substitutions, and the action was taken to ensure subsequent satisfactory performance by the contractor. Since accountability was an important component of effective management, he wanted to know what possibility existed for the United Nations to obtain deductions for unsatisfactory performance.

He said that the Board had disclosed that procurement activity in several areas, including logistical support and motor vehicles, had risen substantially, even while the number and level of peacekeeping missions had been substantially reduced. While sharing the ACABQ's concern, he wanted to hear the Secretariat's view on that paradox, before requesting the Board to do additional work. In connection with the overall level of the Peacekeeping Reserve Fund, the Advisory Committee had recommended that the General Assembly review it, taking into account all relevant factors. Since the Fifth Committee would presumably be the body charged with reviewing that issue, he wanted to hear more about the ACABQ's views on that. For example, what did the Advisory Committee believe to be an appropriate level for the Fund?

WALID A. AL-HADID (Jordan) supported the statement made by the representative of Pakistan, particularly in respect of the reimbursement of contingent-owned equipment, and said that the recommendations made by the Board of Auditors should be respected.

DJAMEL MOKTEFI (Algeria) endorsed the recommendations by the Board of Auditors and said that some of the paragraphs of the report contained in document A/53/932 were not very clear and consistent with those recommendations. He also asked for clarification regarding the position of the Secretariat on the recommendations presented.

JEAN-PIERRE HALBWACHS, United Nations Controller, responded to questions raised by Member States yesterday and today. On the question regarding the clarification requested by the ACABQ about the Field Administration and Logistics Division, he said that the Office of Internal Oversight Services had reviewed the structure of the Division in 1998. It had reported to the Fifth Committee that the Division had taken action to rationalize, and further rationalization had subsequently been undertaken, with due regard to continued efficiency and effectiveness. As a result of that, seven units had been subsumed under the Finance and Support Service, seven other units had moved, and one had been abolished. The reduction in the number of units still allowed for the full spectrum of support functions.

Regarding ACABQ comments on the need to improve the accounting and reporting of support services, he agreed wholeheartedly, he said. The matter was being examined internally and would be addressed in the budget instructions for peacekeeping missions for 2000-2001. The aim was to consistently capture services provided to other entities, and to find a means to reflect those in budgets.

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As for mission liquidation, guidelines had been issued in 1997, he said. They were currently being updated.

Regarding the status of the United Nations Observer Mission in Angola (MONUA) procurement issue, he said that had required a fair amount of discussion among Secretariat officials and the discussion had not yet concluded. The report on the MONUA budget stated that a report on the matter would be issued for the fifty-fourth session of the General Assembly.

He said that a question had been asked on accountability measures put in place to monitor the increased delegation of authority for consideration of contingent-owned equipment and United Nations-owned equipment. He explained, however, that there had been no increased delegation. Delegation authority belonging to several senior officials had, for some time, been given to individual peacekeeping operations to establish local property survey boards. What had occurred recently was that the threshold level for that delegation had been reviewed and adjusted, and those local boards could now deal with larger requests which would allow a reduction in bottlenecks at Headquarters. Local property survey boards reported annually, and consistency in the treatment of claims across missions was assured through examination of those reports.

On the 60 per cent increase in procurement at a time when peacekeeping levels were declining, he said that most of the extra procurement related to the purchase of vehicles and spare parts for vehicles. Vehicles originally purchased for the United Nations Transition Authority in Cambodia (UNTAC) and for the United Nations Protection Force in Bosnia and Herzegovina (UNPROFOR), and subsequently transferred to other missions, had to be replaced and repaired. That information was included with requests for resources in the budgets of many missions for 1 July 1997 to June 30 1998, notably the United Nations Mission in Bosnia and Herzegovina (UNMIBH). It should be no surprise. That type of expense occurred every four or five years and would not be repeated until the next cycle of vehicle replacements.

Regarding the status of the recovery of mission subsistence allowance overpayments in United Nations Iraq-Kuwait Observation Mission (UNIKOM), the last round of the internal review process in the Secretariat was taking place this week, and the report should be issued shortly.

In response to the question about a definition of gross carelessness and the threshold for gross negligence, he said that a clearer definition was needed, and he would work with the Office of Legal Affairs to develop them. They would be provided to Member States in a subsequent report. He advised he would respond in writing to the detailed questions about the Board of Auditors' report from Pakistan and the United States at a later stage.

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SETH KOMLA ADZA, Director of External Audit of Ghana and Chairman of the United Nations Audit Operations Committee of the Board of Auditors, said the Board was pleased to note the continued Fifth Committee interest in the Board's work. It also welcomed the positive comments from the ACABQ. He had noted the ACABQ request that it receive the Board's report on peacekeeping operations by the beginning of February. The Board would endeavour to meet that deadline, but its ability to do so would be dependent on the timely submission of financial statements and prompt responses to its questions.

The Board noted the ACABQ requests that it examine the backlog in processing of inter-office vouchers and also the increase in procurement for peacekeeping operations, he said. It also noted a Member State's request that details of the increased peacekeeping procurement be provided. The Board agreed with the observation that the causes and consequences of the MONUA problems should be examined and the lessons applied to other missions.

The Board was grateful for the support expressed for its recommendation that a periodic review of unliquidated obligations be undertaken, and also for regular monitoring, he said. It had also noted requests that it identify areas where streamlining of procedures would increase efficiency.

On the retroactivity of the new system on processing claims for contingent-owned equipment, he explained that under the new system the Board had found that the monthly payment rates were high and expenditure had increased. It remained to be determined how much saving of administrative costs had occurred. The Board would certainly suggest that the Secretariat examine the situation.

On the question about Member States' claims not being reflected in the accounts, there were still a number of troop-contributing countries that had not signed Memoranda of Understanding. Only when those had been signed could obligations be recorded in the accounts. In addition, there were other reasons for their not appearing, including that some claims had not yet been determined as valid by the Secretariat. He hoped to be able to examine the matter with the Secretariat and would report back to the Fifth Committee later.

The Committee's Chairman, MOVSES ABELIAN (Armenia), asked that the Auditor's response be made available to Member States in writing for the Committee's informal consultations.

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