PEACEKEEPING COSTS MAY INCREASE BY 52 PER CENT FOR 2000-2001, BUDGET COMMITTEE TOLD AS IT BEGINS SECOND RESUMED SESSION

Resumed Fifty-fifth General Assembly

Fifth Committee

58^th Meeting (PM)

PEACEKEEPING COSTS MAY INCREASE BY 52 PER CENT FOR 2000-2001,

BUDGET COMMITTEE TOLD AS IT BEGINS SECOND RESUMED SESSION

Compared with appropriations for the period ending on 30 June 2000, resources for peacekeeping operations may increase by approximately 52 per cent for the current period ending 30 June 2001, the Fifth Committee (Administrative and Budgetary) was told this afternoon.

Introducing the reports of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), the Chairman of that body further said that by the time budget estimates were finalized for the period ending 30 June 2002, that increase could reach 76 per cent.  While the General Assembly had approved some $1,705.2 million for 1999/2000, total requirements for 2000/2001 could reach $2,600 million.

Introducing some 40 Secretary-General’s reports on the efficiency and budgeting needs and functioning of peacekeeping, United Nations Controller, Jean—Pierre Halbwachs, noted that the requirements for five missions –- in Ethiopia and Eritrea, East Timor, Sierra Leone, Lebanon, Democratic Republic of the Congo -- had yet to be calculated.  But unless the mandates of ongoing missions were to be curtailed, the peacekeeping budget for July 2001 to June 2002 would not be less than that of the current period.  He added that some “bridging” financial actions had been requested for the five “missions in transition”.

With peacekeeping the focus of attention during the second resumed session of the Committee, which started this afternoon, the Committee is also expected to conclude its consideration of a multi-faceted text on human resources management, which had been deferred from its first resumed session (13 March to 2 April).  Among other items on the Committee’s agenda are a review of the Organization’s efficiency and financial situation, the reports of the Board of Auditors, and a report of the Office of Internal Oversight Services on civilian police operations.

Also today, the Committee approved its programme of work for the current week and took note of the proposed agenda for 7 May to 1 June, and of the status of documentation before the Committee.

The reports were also introduced by Director of External Audit Pramesh Bhana; Chief of the Office of the Under-Secretary-General for Management Harriett Schmidt; Under-Secretary-General for Internal Oversight Services Dileep Nair; Inspector Francesco Mezzalama of the Joint Inspection Unit; Assistant Secretary-General for Human Resources Management Rafiah Salim; and ACABQ Chairman Conrad

S.M. Mselle.

Statements were made by the representatives of Iran (on behalf of the “Group of 77” developing countries and China), Libya, India, Sweden (on behalf of the European Union), Lebanon, Syria and the Russian Federation.  Also participating in the discussion were the Director of Accounts Division, Jayantilal Karia, and the Director of Peacekeeping Financing Division, Bock Cheng Yeo.

The Committee will continue its work tomorrow Tuesday, 8 May, at 3 p.m., when general discussion on the items introduced today is going to continue.

Background

At the opening of its second resumed session this afternoon, the General Assembly's Fifth Committee (Administrative and Budgetary) was expected to decide on its agenda and organization of work, and start its general discussion of several items on its agenda, including financing of peacekeeping, human resources management, and reports of the Board of Auditors.

Auditors’ Reports

The Committee had before it the financial report and audited financial statements for the 12-month period from 1 July 1999 to 30 June 2000 and the report of the Board of Auditors (document A/55/5 Volume II).  The document contains an audit of United Nations peacekeeping operations at Headquarters, three field missions funded from the regular budget, 10 missions in liquidation and the United Nations Logistics Base in Brindisi, Italy.  The Board’s main findings include that approximately $39.9 million in certified claims, representing valid expenditure, had not been accrued for and recognized as financial liabilities for the reporting period, but rather were disclosed as contingent liabilities in the notes to those statements.  Also obligations amounting to approximately $2.1 million were not supported by valid obligations documents.

The Board also noted various discrepancies regarding information, contained in the field assets control system which is used to determine the value of non-expendable equipment.  Accordingly, the Board could not confirm the value of that equipment for the reporting period.  It also found that, as at 8 November 2000, approximately 20 per cent (1,029) of authorized mission posts remained vacant, resulting in operational difficulties.  The Board found varying degrees of deficiency with regard to general computer controls and stated that, in general, peacekeeping missions do not comply with the formal policy on environmental matters, nor is there an environmental management system.

The report states that obligations amounting to approximately $7.2 million were incorrectly raised against the 1999/2000 budget for contracts, services and goods received after 30 June 2000.

The Board’s main recommendations are that the Administration ensure compliance with the United Nations accounting standards, timely processing of transactions, and accurate and complete information on non-expendable equipment.  It should also undertake urgent measures to fill vacant posts and formulate an environmental management system.  The Board also recommends the Logistics Base determine an appropriate value for contributions in kind, which should be disclosed in the notes financial statements for peacekeeping operations.

A related report -- the Secretary-General's on the implementation of the recommendations of the Board of Auditors concerning United Nations peacekeeping operations for the financial period ending 30 June 2000 (document A/55/380/Add.2) -- states that many of the Board's recommendations have been implemented.  Efforts have been made to support obligations by valid documents and to raise them in the correct financial period.  Similarly the recommendations to reconcile all differences in inventory reports based on the field assets control system and to ensure timely completion of supplier evaluations had been implemented.  Efforts were being taken to make missions comply with procedures on miscellaneous obligating documents and to ensure proper custody of United Nations property, as well as prompt submission of verification reports to facilitate reimbursements to Member States for contingent-owned equipment.

Regarding review of the rates for determining reimbursement for contingent-owned equipment, the report says that the outcome of the work of the Assembly's post-Phase V Working Group mandated to undertake that review would be addressed during the resumed session.  

Responding to a recommendations that valid expenditures be accrued in the same financial period that they were incurred in, the report notes that it is not possible to record claims for which funding has not yet been decided upon by the General Assembly.  Attempts had been made, however, to reduce the amount of unrecorded certified claims, resulting in a reduction from some $149 million in June 1999 to $39.9 million in June 2000.

On procurement planning, the report says that the Department of Peacekeeping Operations has initiated a range of system contracts over the past year on most major items for peacekeeping operations, and further improvements will be further explored.  Aspects of procurement reform are being reviewed in the context of the report of the United Nations Panel on Peace Operations.  The Department is also taking steps to make the United Nations Liquidation Unit more effective. Recruitment of additional personnel is in progress.

On liquidation guidelines, the report says that, although the provisional guidelines on liquidation of missions provide adequate guidance and are comprehensive, there is a need to further update them.  Once that task is completed, the guidelines will be released as a formal document to all field missions.

In a related report (document A/55/878), the Advisory Committee on Administrative and Budgetary Questions (ACABQ) notes the difference of opinion between the Board and the Administration regarding the treatment of $39.9 million relating to claims for contingent-owned equipment, based on the old method of reimbursement, in place before 1 July 1996.  For the two closed missions concerned -- the United Nations Operation in Somalia (UNOSOM) and the United Nations Assistance Mission for Rwanda (UNAMIR) -- the Administration treats such claims as contingent liabilities pending future decisions by the General Assembly.  The auditors are of the view that they are present obligations, as they relate to benefits already received and verified by the Department of Peacekeeping Operations.

The Administration will be submitting proposals to the Assembly to cover the pending claims of troop-contributing countries in the context of final performance reports, the report states.  Until then, it is not possible to obligate funds and reflect them in the financial statements.  The amounts certified by the Secretary-General are, therefore, shown as contingent liabilities.  Under the circumstances, the ACABQ has concluded that the procedure followed by the Administration is broadly in conformity with the Financial Regulations and Rules of the United Nations.

The Advisory Committee is seriously concerned that an amount of $2.1 million was obligated by the United Nations Transitional Administration in East Timor (UNTAET) without valid supporting documentation.  As that creates potential for fraud, the ACABQ cannot accept that the audit findings in respect of UNTAET “were by their nature exceptional, and that the mission has taken note of the need to comply strictly with rule 104.1 of the Financial Regulations and Rules”.

The Advisory Committee asks that a comprehensive assessment of all aspects of the implementation of the contingent-owned equipment arrangements be made.Aware of the complex nature of the new procedures, it invites the auditors to ascertain the efficiency and timeliness of the process and to inquire about the adequacy and effectiveness of resident auditors.  The Board's recommendation that field missions send verification reports on contingent-owed equipment directly to the Finance Management and Support Service would eliminate delays in the processing of claims.

The ACABQ also asks about a review of the delegation of authority to heads of mission to procure goods and services up to $1 million available locally.  Before delegating authority to the field, it is necessary to ensure the existence of adequate capacities to discharge and monitor the delegated functions.  The ACABQ stresses that procurement and inventory management are large investments by the Organization, and it is essential to ensure that adequate qualified staff are assigned and trained for that purpose.

Human Resources Management

The Committee will also consider a note by the Secretary-General transmitting the report of the Joint Inspection Unit (JIU) on young professionals in selected United Nations system organizations (document A/55/798).  With nearly half the Organization’s various secretariats set to retire within the decade, this report aims to compare and analyse recruitment and management policies and practices regarding entry-level professionals, and to make recommendations on ways to prepare and retain dedicated professionals.

According to the report, the Inspection Unit recommends that secretariats undertake specific efforts to reduce the recruitment age for all Professional posts, and for P-1 and P-3 posts, in particular.  Secretariats should also speed up hiring processes by imposing deadlines on review of applications.  Further efforts should be made to accelerate the placement of successful National Competitive Recruitment Examination (NCRE) candidates and to reduce the number of candidates on the roster.  The roster should be optimized through strengthening the links between human resources planning, examination and staffing.  The Inspections Unit suggests that the Assembly may wish to call on Member States to cooperate in the organization of the exam and, in particular, in its publicity.  Secretariats in major duty stations should also set up joint family-career transition programmes.

By a note on that report (document A/55/798/Add.1), the Secretary-General transmits related comments from the Administrative Committee on Coordination (ACC) on the matter.  This body notes that there is no single "best practice" in human resources management.  Human resources requirements and strategies must be matched to the programme needs of each individual part of the system.  Appointment practices vary considerably from agency to agency and often bear little relation to the earlier "career" concept.  "Entry level" for many specialized agencies may often refer to someone in mid-career, recruited for senior specialist responsibilities at P-4 or P-5 level.

There is also a growing recognition that effective management and retention of staff should include selection, training, development, compensation and structural considerations, the document says.  Across the system, innovative approaches are being explored, such as more effective assessment of future staffing needs and new induction and coaching programmes.  As the Organization increasingly has to compete with other employers for a talented workforce, to recruit and retain good performers, it is important to create competitive employment conditions, and provide opportunities for development and promotion.

The report states that there is overall agreement on the need to reduce the age of recruitment, keeping in mind that requirements must be tailored to the needs of each organization.  The use of exit questionnaires could provide a sound basis for analysing separations.  Some innovative ideas to accelerate recruitment have been put forward in December 2000, including use of more creative job advertisements, use of generic job descriptions and rosters of pre-screened applications, use of headhunters and simplification of processes. 

The report notes the Secretariat’s efforts to accelerate placement of successful national competitive exams candidates and stresses the importance of sharing of experiences and best practices regarding development of staff.  Also important are orientation and induction programmes.  Zero nominal growth has somewhat handicapped the organizations’ capacity to take large initiatives in this regard, but a number of pilot programmes are being instituted.

Mobility enhances workforce flexibility by providing staff with on-the-job learning experiences, the report states, but a number of organizations have no programmatic need for geographical mobility.  As for spouse employment, within the United Nations system supportive measures are being introduced to enhance employment opportunities for staff members' partners, including the Participating Agencies Mobility System (PAMS).  Organizations also encourage host governments to consider granting work permits for spouses accompanying staff members.

Financing of Peacekeeping Operations

The general report of the ACABQ on the financing of peacekeeping operations (document A/55/874) addresses various aspects of United Nations peacekeeping, and includes an addenda devoted to the performance and budgets of particular missions.  It summarizes information about expenditures and unencumbered balances; unliquidated obligations; procurement, performance and budget estimates; proposals for 2001-2002; status-of-forces agreements; contingent-owned equipment verification; civilian personnel matters; mission liquidation and disposition of assets; and public information programmes.

As recent and anticipated developments are likely to affect several missions' mandates, scope and scale, as well as their resource requirements, the ACABQ recommends that the General Assembly approve, in May 2001, the following bridging actions, pending the submission of the missions' respective budgets at the next session:

-- United Nations Interim Force in Lebanon (UNIFIL):  based on the revised budget of some $199.01 million gross ($195.12 million net) for the period from 1 July 2000 to 30 June 2001, to approve and assess an amount of some $99.55 million gross ($97.56 million net);

-- United Nations Mission in Ethiopia and Eritrea (UNMEE):  based on the authorized budget of $180 million gross (some $177.87 million net) for the period from 1 July 2000 to 30 June 2001, to approve and assess an amount of $90 million gross (some $88.93 million net);

-- United Nations Mission in Sierra Leone (UNAMSIL):  based on the revised budget for the period from 1 July 2000 to 30 June 2001 of $550 million gross ($546.75 million net) recommended by the ACABQ in its report (document A/55/839) to approve and assess an amount of $275 million gross ($273.37 million net);

-- United Nations Transitional Administration in East Timor (UNTAET):   based on the budget of $563 million gross ($546.05 million net) approved by the Assembly, to approve and assess an amount of $282 million gross (some

$273.03 million net).

Regarding the United Nations Interim Administration in Kosovo (UNMIK), the ACABQ states that it is not fully convinced that the mere arrival of new special representative should necessarily result in the submission of revised estimates. 

It recommends that the Secretariat study the arrangements for contingent-owned equipment in the memorandum of understanding, identify elements that often account for delays, and submit the results to the General Assembly.  It also stresses the importance of ensuring that qualified personnel are available in the field to implement all the requirements of the contingent-owned equipment reimbursement procedures.

An effective procedure is needed to determine the capacity of troop-contributing countries to meet requirements for wet-lease and self-sustainment provisions of such leases, the ACABQ states.  It is also necessary to ensure consistent application of the contingent-owned equipment manual.  Overall, the “new” wet-lease arrangements appear to be working well.  Nevertheless, the ACABQ is concerned that some troop-contributing countries might experience difficulties meeting the required level of equipment and self-sustainment.  The Secretary-General is encouraged to review the practical aspects of the wet-lease arrangements and resulting efficiency gains.

The ACABQ asks the Secretariat to report on measures to increase mobility and recommends information on staff on short-term loan be provided in performance reports.  Information on lessons learned and measures taken to ensure accountability should be addressed in future reports on safety of United Nations personnel.  The staff assigned to missions should be adequately briefed and trained on security measures prior to their arrival in the mission area and during their assignment.  Expenditures on staff security should be clearly identified in peacekeeping performance reports and budgets.

Recognizing that the Secretary-General needs flexibility to manage the staffing table, the report also cautions against assuming that the Assembly will automatically approve a requested post at the level of an incumbent temporarily placed against a vacancy.  While travel is essential for implementing mission mandates, the Advisory Committee states that every effort should be made to justify travel expenditures.  Before making travel arrangements, attempts should be made to use, in the first instance, modern means of communication, including video conferencing.

The Secretariat is encouraged to make greater use of volunteers, especially in the areas of human rights, communications and public information.  It is necessary to ensure close cooperation with United Nations volunteers at the early stages of missions.  Much can be learned from a successful volunteers’ roster.  It cautions, however, that volunteers should not be seen as a means of obtaining cheap labour for peacekeeping operations.

The report notes that large investments are made for procurement and inventory management, and stresses the importance of assigning and training qualified staff for inventory management and asset control of peacekeeping operations to perform these functions in field missions.  Logistics units should report directly to the civilian component of the mission as a matter of urgency in all peacekeeping operations to improve procurement planning.

Another source of concern is the Secretariat’s capacity to handle liquidation and to eliminate backlogs in claims, information and personnel management services.  The ACABQ recommends addressing both short- and long-term aspects of these problems, in the context of the Secretary-General’s comprehensive review and capacity study.  When liquidating a mission, it is advisable to retain the mission's personnel, rather than recruit temporary staff.  After liquidation, all efforts should be made to place retained personnel in other missions to take advantage of their expertise and experience.

According to the Secretary-General’s report on the financial performance of the United Nations Observer Mission in Angola for the period from 1 July 1999 to 30 June 2000 (documents A/55/844 and Corr.1), the General Assembly appropriated some $15.05 million gross for the liquidation of the Mission in June 2000

($14.31 million net), inclusive of $369,153 for the support account and $72,387 for the United Nations Logistics Base.  Expenditures for the period totalled $14.23 million gross, resulting in an unutilized balance of $818,100 gross ($903,800 net) for 1999-2000, primarily as a result of the earlier-than- anticipated repatriation of military personnel and lower actual costs under international civilian staff salaries. 

The report asks the General Assembly to decide on the treatment of the total unencumbered balance for 1998-1999 and 1999-2000 combined totalling some $967,600.

In a related report of the ACABQ (document A/55/879), that body recommends acceptance of the Secretary-General's proposals.

The Committee also had before it the Secretary-General's report on the financial performance of the United Nations Iraq-Kuwait Observation Mission (UNIKOM) for 1 July 1999 to 30 June 2000 (document A/55/810).  In June 1999, the Assembly appropriated some $53.9 million gross (about $51.9 million net) for the period.  Expenditures totalled some $51.0 million gross (about $49.3 million net), resulting in an unspent balance of some $2.98 million gross (about $2.65 million net).  The balance resulted primarily from lower costs for rations and rotation travel for military personnel, a higher vacancy rate for international staff, and the termination of the contract for the fixed-wing aircraft due to the closure of Iraqi airspace.

The Secretary-General asks the Assembly to decide on the treatment of the unspent balance of some $2.98 million for the period 1 July 1999 to 30 June 2000.

The Committee also had before it a report of the Secretary-General on the budget for UNIKOM for 1 July 2001 to 30 June 2002 (document A/55/811) which proposes some $54.22 million gross (some $52.099 million net), inclusive of budgeted voluntary contributions in-kind of some $3.12 million, be approved.  Of the total budget, some 28 per cent relate to civilian personnel costs, operational costs account for 22 per cent, and military personnel costs are 46 per cent.

The report recommends the Assembly appropriate some $51.1 million gross (some $48.97 million net) for the Mission for 1 July 2001 to 30 June 2002, including some $32.65 million net (two thirds of the cost) funded through voluntary contributions from the Government of Kuwait.  Assessment of $18.45 million gross (some $16.32 million net) would follow.

According to a related ACABQ report (document A/55/874/Add.2), that body notes that additional requirements resulted from the unbudgeted cost ($87,700) of rollover protection for 43 new vehicles procured during the period.  It asks for a technical analysis of the high incidence of the rollover phenomenon to identify the causes.  The unencumbered balance of some $2.99 million gross for 1 July 1999 to 30 June 2000 should be credited to Member States, after two thirds is first refunded to Kuwait.

The Committee had before it the Secretary-General's reports (document A/55/853)on the financial performance of the United Nations Mission in Sierra Leone (UNAMSIL) for 1 July 1999 to 30 June 2000.  It states that the Assembly appropriate some $265.79 million gross ($264.37 million net), exclusive of voluntary contributions in kind of some $1.55 million, for that period.

Expenditures for the period totalled some $263.34 million gross

($262.04 million net), resulting in an unencumbered balance of some $2.45 million gross ($2.34 million net), principally due to the lower cost of rations and no rotations of military personnel, as well as unutilized resources for the acquisition of vehicles and equipment.  The unencumbered balance was partially offset by additional requirements for air operations, contingent-owned equipment and transportation by air of contingent-owned equipment to Sierra Leone in connection with the rapid reinforcement and expansion of the military component of the Mission in May and June 2000. 

The report proposes the Assembly decide on the treatment of the unencumbered balance and apply to UNAMSIL special arrangements as regards article IV of the financial regulations of the United Nations.  [In the case of UNAMSIL, as with several other more recent peacekeeping missions, there are certain amounts obligated for reimbursement to governments for death and disability compensations, contingent-owned equipment and self-sustainment that will be required for the settlement of claims.  They need to be retained beyond the period stipulated under financial regulations IV.3 and IV.4.]

In a related ACABQ report (document A/55/869), that body recommends approval of the special arrangements for the settlement of death and disability compensations, contingent-owned equipment and settlement of claims.  It also recommends the unencumbered balance of some $2.45 million gross ($2.34 million net) for 1 July 1999 to 30 June 2000 be credited to Member States.

The Committee also had before it the report of the Secretary-General on the financial performance of UNMIK for 10 June 1999 to 30 June 2000 (document A/55/724).

According to the report, in December 1999 the Assembly appropriated some $427.06 million gross for the establishment and maintenance of the Mission for

10 June 1999 to 30 June 2000.  As indicated in the financial performance report, expenditures for the period totalled some $361.79 million gross (some

$352.23 million net), inclusive of some $106.33 million in unliquidated obligations.

The resulting unencumbered balance of about $65.27 million gross represents, in gross terms, approximately 15.2 per cent of the amount appropriated.  It is almost entirely due to reduced civilian personnel costs ($58.37 million), owing to higher-than-anticipated vacancy rates among civilian police and international and local staff.

As indicated in the Secretary-General's proposed budget for UNMIK for 1 July 2001 to 30 June 2002 (document A/55/833), he seeks some $448.8 million gross ($418.89 million net) for the Mission.  This is a 0.2 per cent decrease in gross terms in relation to the current period ending 30 June 200, including decreases of some $25.56 million, or 28.5 per cent, in operational requirements and $24,000, or 1.5 per cent, under other programmes, offset by increases of some $22.22 million, or 6.8 per cent, in civilian personnel costs and $212,100, or 2.7 per cent, in military personnel costs.

For a number of reasons, but mainly owing to the change of the Special Representative of the Secretary-General in January 2001 and the major priorities identified by the new Special Representative for the coming months, the Secretary-General envisages the submission of revised estimates to the budget.  The changes proposed to the current staffing table include a reduction of 20 General Service posts in Civil Administration and 58 local level posts in the Security Section for the period from 1 July 2001 to 30 June 2002.

In a related report (document A/55/874/Add.6), the ACABQ notes that the delegation of authority to recruit and manage UNMIK personnel has proven to be of considerable benefit to the Mission and that such experience is being evaluated. One of the early lessons learned was that delegation of authority must be accompanied by proper planning and the provision of adequate resources.  The UNMIK database containing personnel applications was shared with UNTAET.  However, as the database was not geographically diversified, the ACABQ expects the Secretariat to continue to diversify it.

The ACABQ notes that since the requirements associated with the deployment of formed police units were not specifically identified in the approved budget to 30 June 2000, expenditure has been met through redeployment of approved resources. In March 2000, six special police units from four Member States were deployed as part of the civilian police component of the Mission.  Upon enquiry, the Committee was informed that associated costs amounted to approximately $11.64 million.  While acknowledging such circumstances often affect missions in their initial stages, the ACABQ believes that proper procurement planning should minimize instances of last-minute procurement activity.

The Advisory Committee recommends the unencumbered balance of $65.27 million gross ($57.86 million net) for the period from 10 June 1999 to 30 June 2000 be credited to Member States in a manner to be determined by the General Assembly.

On the proposed budget for 1 July 2001 to 30 June 2002, it cautions against automatic submission of revised estimates to reflect changes consequent on a new Special Representative.  Even taking into account the impending elections, every effort should be made to keep within the total initial estimate.  Variations in allocation and between objects of expenditure could be reflected in the performance report, as well as in the budget for 2000-2003.  Reclassification of posts can only be effected through submission of a budget proposal and the subsequent approval by the Assembly.

Noting the increase of civilian personnel costs from some $322.98 million to the proposed $345.2 million, the ACABQ asks that this trend be monitored and adjusted, if necessary.  Regarding some $64.12 million in operational requirements and an estimated requirement for some $1.87 million under field defence equipment for civilian police, the ACABQ has no objection to this request, but expects a better explanation of such estimates in the future.  Adequate explanation also needs to be provided in performance reports to justify changes in expenditure for training.  The ACABQ also expresses concern about the payment of taxes and duties for fuel and the use of United Nations fuel stations by non-UNMIK vehicles.

Taking into account those comments, the ACABQ recommends the Assembly appropriate $400 million gross for UNMIK for the 12-month period to 30 June 2002. Given experience gained during the municipal elections, it expects that every effort will be made to absorb any additional requirements for the Kosovo-wide elections.

Also before the Committee was the Secretary-General’s report on the financial performance report of the United Nations Mission for the Referendum in Western Sahara (MINURSO) for 1 July 1999 to 30 June 2000 (document A/55/764).  In June 1999, the General Assembly appropriated some $52.12 million gross (about $48.17 million net) for MINURSO’s maintenance.  Expenditures for the period totalled about $49.21 million gross (some $45.86 million net), exclusive of voluntary contributions of about $6.5 million, resulting in an unused balance of about $2.91 million.

The unused balance was primarily the result of reduced requirements under international civilian staff costs owing to the greater-than-projected proportion of Mission appointees, as well as lower-than-budgeted requirements under air operations.  The General Assembly should decide how it wants this unused balance of $2.91 million gross ($2.31 million net) treated, the report states.

The Secretary-General's proposed budget for MINURSO for 1 July 2001 to 30 June 2002 (document A/55/794) requests some $48.85 million gross ($45.28 million net) be approved, exclusive of budgeted voluntary contributions in kind estimated at over $5.65 million.  Some 51 per cent of the proposed budget relates to civilian personnel costs.  Operational requirements account for 27 per cent of the budget, and military personnel costs reflect 15 per cent.

In a related ACABQ report, that body notes an under-expenditure of about $1.25 million in operational requirements was due to the lower cost of air operations.  It recommends that the unutilized balance of some $2.91 million gross ($2.31 million net) for 1 July 1999 to 30 June 2000 be credited to Member States as the Assembly decides.

Regarding the Mission's proposed budget, the Secretary-General states he may have to request supplementary estimates, the ACABQ notes.  In view of consistent under-expenditure for the Mission, the ACABQ expects that, before requesting supplementary estimates, all efforts should be made to absorb, if possible, additional costs.  In connection with training, the Advisory Committee notes from the proposed budget that provision of $65,000 has been made to train 11 staff members, and recommends that, in future, the number of staff trained or budgeted for, and training provided in the previous period, be specified.

The ACABQ recommends that the Secretary-General's proposed $48.85 million gross ($45.28 million net) be approved for the maintenance of MINURSO for 1 July 2001 to 30 June 2002.

Also before the Committee was the Secretary-General's financial performance report of the United Nations Mission of Observers in Tajikistan (UNMOT), for

1 July 1999 to 30 June 2000 (document A/55/816 and Corr.1).  It notes that, in June 1999, the Assembly appropriated some $18.7 million gross (about $17.5 million net) for the Mission, inclusive of $930,639 for the support account for peacekeeping operations, and $182,487 for the United Nations Logistics Base.  Expenditures for the period totalled some $13.9 million gross ($13.1 million net) resulting in an unspent balance of $4.75 million gross ($4.36 million net).

Following the first multi-party parliamentary election in Tajikistan in February 2000, the Security Council supported the Secretary-General's intention to withdraw UNMOT when its mandate expired on 15 May 2000.  Some $16.4 million gross (about $15.3 million net) had been assessed up to 15 May 2000, when the Mission's mandate expired.  Against that revised assessed figure, projected expenditures

and obligations for the period 1 July 1999 to 15 May 2000 amounted to some

$11.5 million gross (about $10.9 million net).  Noting that the projected costs for the closure and liquidation of the Mission -- estimated at $3.4 million

($3.3 million net)-- could be met within the revised assessed figure, the United Nations Controller requested the concurrence of the ACABQ to enter into commitments for that amount, and the ACABQ concurred.

The unspent balance resulted mainly from lower mission subsistence allowance payments for military observers, civilian police monitors and international staff, lower travel costs for military observers and lower international staff salaries and common staff costs, the report says.  Also influential were non-procurement of vehicles and communications equipment and lower commercial communication charges, offset by higher expenditures under spare parts, repairs and maintenance for vehicles, communications equipment and other equipment, as well as higher commercial freight charges.

The report proposes that the Assembly should reduce the appropriation approved by the General Assembly to some $16.37 million gross ($15.29 million net); and decide on the treatment of the consequential unencumbered balance of some $2.42 million gross ($2.18 million net) for the period from 1 July 1999 to

30 June 2000.

In connection with this issue, the ACABQ (document A/55/880) endorses those recommendations.

Also before the Committee was a report from the Secretary-General on the disposition of the assets of the United Nations Preventive Deployment Force (UNPREDEP)(document A/55/390).  The Assembly had previously endorsed proposals on the disposition.  According to the Secretary-General, the inventory value of the assets of the Force at 1 March 2000 was some $20.2 million, 46 per cent of which have been transferred to the other peacekeeping operations, or to the United Nations Logistics Base for temporary storage.  The Secretary-General seeks authority from the General Assembly for the transfer to the former Yugoslav Republic of Macedonia Government of assets with a total inventory value of $1,705,200 and a corresponding residual value of $835,300.

The report notes that assets with an inventory value of some $5.2 million were sold for $2.39 million (excluding expendable assets with a value of $480,900) to other organizations or within the mission area. 

In its related report on the matter (document A/55/870), the ACABQ notes that two of the purchasing organizations -- the International Tribunal for the Former Yugoslavia and the Office of the United Nations High Commissioner for Human Rights -- are funded from assessed budgets.  The Secretariat acknowledged, upon enquiry, that assets had been sold to the International Tribunal and the Office of the High Commissioner due to an error.  The ACABQ was also informed that in, future, the Department of Peacekeeping Operations would ensure that United Nations activities financed from assessed contributions are not invoiced for equipment.

The ACABQ also notes that assets with a value of $79,600 had been written off as unaccounted for, as the liquidation team was not able to identify the officials who received some of the battalions’ equipment.  In some cases, the problems resulted from the fact that the receiving officials were military personnel, subject to transfer every six months.  The ACABQ trusts that now the field assets control system is fully operational, instances of inability to identify the names of the officials who receive assets would be reduced.  The ACABQ also recommends that United Nations officials should be designated to receive, inspect and report on equipment provided to missions.

Regarding the transfer of assets to the former Yugoslav Republic of Macedonia, the ACABQ notes that it has already been made under “temporary possession” arrangements, pending the approval of the General Assembly.  In this particular case, the ACABQ recommends the approval of the transfer, but, as a matter of principle, states that proposals on such grants of temporary possession should in the future be submitted to it prior to actual transfer, whether under “temporary possession” arrangements or otherwise.  Final liquidation reports should contain information on the results of liquidation -- how the liquidation plan was implemented, whether the resources, including staffing, had been sufficient, and any other challenges encountered and steps taken to address them.

Before the Committee was the Secretary-General's financial performance report n the United Nations Disengagement Observer Force (UNDOF) for 1 July 1999 to 30 June 2000 (document A/55/747), according to which expenditures for the period totalled some $35.03 million gross ($34.32 million net), resulting in an unencumbered balance of $324,900 gross ($297,700 net).  That was the result of lower-than-authorized troop strength, favourable rates for the use of aircraft and purchase of vehicles, civilian vacancies and deferment of a construction project. Savings were partially offset by additional requirements arising from payments to settle troop-contributing governments’ claims for injury, disability or illness during past financial periods.

The General Assembly should decide on the treatment of that $324,900 gross ($297,700 net), the report states.

Also before the Committee was the Secretary-General's proposed budget for UNDOF (document A/55/778) for 1 July 2001 to 30 June 2002.  He seeks some

$34.5 million gross (some $33.8 million net) for that period.  He also asks the Assembly to credit back to Member States an amount of $4 million representing the remaining net surplus balance held in UNDOF’s suspense account.

In a related ACABQ report (document A/55/874/Add.1), that body recommends the unencumbered balance of $324,900 gross ($297,700 net) be credited to Member States as the Assembly decides.

Regarding the staffing of the Force, the ACABQ recommends the application of a vacancy factor in future budgets, given that vacancy rates for preceding periods were rather high.  It also states that identification of accommodation needs has been unduly ad hoc, and a procedure is needed to review the state of accommodations on a systematic basis.

In the view of the ACABQ, current logistics arrangements in UNDOF inhibit proper procurement planning, and this should be urgently addressed.  Training programmes should be carefully identified to meet the needs of the mission.  It also urges the Secretariat to accelerate negotiations towards conversion to the new contingent-owned equipment arrangements.

The ACABQ recommends appropriation of some $34.53 million gross

($33.78 million net) for UNDOF's maintenance for the 12 months to 30 June 2002.  It also recommends that Member States be credited with the remaining net surplus held in the UNDOF suspense account.

Also before the Committee was the Secretary-General's financial performance report for the United Nations Interim Force in Lebanon (UNIFIL) for 1 July 1999 to 30 June 2000 (document A/55/757), according to which, in June 1999, the Assembly appropriated some $148.9 million gross for UNIFIL's maintenance.  Expenditures for the period totalled some $149.47 million gross, including some $43.18 million in unliquidated obligations.

The overrun of $571,000 gross (some $1,27 million net) was due to additional operational requirements (some $5.18 million) for prefabricated buildings, transport, air support, communications and data-processing equipment, related to the rapid augmentation of the Force to a troop level of 4,871, and additional military personnel costs ($636,300).  This was offset, in part, by unutilized balances under civilian personnel costs and lower salaries paid to temporary local staff who replaced experienced local staff temporarily assigned to other missions.  There were also savings under other programmes, owing to the cancellation of a number of training courses.

According to the report, it is anticipated that the overrun will be eliminated through liquidation of obligations.  The Secretary-General, therefore, recommends that the General Assembly take no financing action on the additional amount.

The related ACABQ report (document A/55/885) states that, as a result of the planned withdrawal of Israeli troops from Lebanon and the consequent expectation that troop strength would be increased from 4,513 to approximately 5,600 as of

30 June 2000, the United Nations Controller informed the ACABQ that and additional $12 million would be required to implement related activities in the weeks leading up to 30 June 2000.  A commitment authority for $12 million was provided in a letter dated 26 May 2000.  That amount has not been assessed on States.

The ACABQ recommends the Assembly take note of the additional requirements of $571,000 gross ($1,270,800 net) for UNIFIL to 30 June 2000 and that it authorize the Secretary-General to use credits in an equal amount arising from the cancellation of obligations.  It also recommends the balance of $186,252 in the reserve account for third-party liability insurance for helicopters be credited to Member States.

Before the Committee was the Secretary-General's report on financing the United Nations Protection Force (UNPROFOR), the United Nations Confidence Restoration Operation in Croatia (UNCRO), the United Nations Preventive Deployment Force (UNPREDEP), and the United Nations Peace Forces headquarters (document A/55/840).  In this report, the Secretary-General recommends the Assembly decide to continue to temporarily suspend the provisions of financial regulations 4.3, 4.4 and 5.2(d) in respect of a surplus of some $174.74 million gross

($175.52 million net) in the light of the chronic cash shortage of the combined forces.  [Those rules were suspended by General Assembly resolution 54/269 of

15 June 2000 in order to allow for reimbursement of troop contributors and in the light of the cash shortage of the combined Forces.]

In a related ACABQ report (document A/55/886), that body notes that no progress has been made in obtaining reimbursement of some $127.38 million incurred by the United Nations Peace Forces for goods and services that should have been provided without cost under the terms of the agreements with the host governments.  It reiterates its concern at this lack of progress and encourages the Secretary-General to pursue the issue.  It also states that the Assembly may wish to consider continuation of the temporary suspension of the specific financial regulations in the light of the chronic cash shortage of the United Nations Peace Forces.

According to the Secretary-General's financial performance report of the United Nations Peacekeeping Force in Cyprus (UNFICYP) for the 12-month period ending 30 June 2000 (document A/55/739), in June 1999, the Assembly appropriated about $45.63 million gross ($43.89 million net) for the mission's maintenance for that period.  Expenditure totalled some $45.11 million gross, resulting in an unencumbered balance of $523,400 gross ($504,000 net), largely the result of lower ration costs for troops, as well as lower travel and salary costs, somewhat offset by higher expenditures under non-staff operational requirements.  The report suggests the General Assembly decide how to treat the unencumbered balance.

The Committee also had before it the Secretary-General's proposed budget for UNFICYP for 1 July 2001 to 30 June 2002 (document A/55/788).  He suggests some $42.4 million gross (about $40.8 million net), inclusive of budgeted voluntary contributions in kind amounting to some $1.4 million, be allocated.  Military personnel costs are 54.8 per cent of that total, civilian personnel costs account for some 20.8 per cent, and operational costs would be about 20.5 per cent.

The Secretary-General asks the Assembly to appropriate some $41.02 million gross (about $39.5 million gross net), including some $20.2 million to be funded through voluntary contributions from the Government of Cyprus ($13.7 million) and the Government of Greece ($6.5 million).

In a related ACABQ report (document A/55/874/Add.3), that body recommends that the unencumbered balance of $523,400 gross ($504,000 net) for period from

1 July 1999 to 30 June 2000 be credited to Member States.  It also recommends that $41.019 million (some $39.49 million net) be approved for the maintenance of the mission for the 12 months to 30 June 2002, including the $20.17 million to be funded through voluntary contributions

According to the report of the Secretary-General on the financial performance of the United Nations Observer Mission in Georgia (UNOMIG) for the period from 1 July 1999 to 30 June 2000 (document A/55/682), in June 1999 the General Assembly appropriated some $31 million gross ($29.5 million net) for UNOMIG for that period.  Expenditures for the period amounted to some $25 million gross ($23.73 million net), inclusive of about $2.81 million in unliquidated obligations.  The resulting unencumbered balance of some $6 million gross represents, in gross terms, 19 per cent of the amount appropriated.  The Assembly should decide how to treat this unencumbered balance.

The Secretary-General’s report on the proposed budget for UNOMIG for 1 July 2001 to 30 June 2002 (document A/55/768) was also before the Committee.  The Secretary-General seeks some $27 million gross (some $25.38 million net) for that period -- a 4.9 per cent decrease over the current period.  The decrease results from anticipated decreases of $1,008,000 in military personnel costs and $1,183,700 in operational requirements, offset in part by increases of $567,300 in civilian personnel costs and $116,000 in other programmes.

In a related ACABQ report (document A/55/874/Add.4), that body notes that the unencumbered balance resulted mainly from savings under military and civilian personnel and operational requirements, owing to restrictions on movement and the continued closure of team bases, as well as postponed separation of two sector offices for security reasons and postponed establishment of several liaison offices.  Other factors included a vacancy rate of 19 per cent for international staff, as well as more favourable than anticipated contractual arrangements for aircraft.  These were offset in part by higher requirements for temporary assistance and travel.

The ACABQ recognizes that political instability and security problems in the Mission area have made it impossible to fully implement planned activities and have affected the deployment of civilian and military personnel, leading to high vacancy rates.  It recommends that the unencumbered balance of some $6 million gross for 1 July 1999 to 30 June 2000 be credited to Member States.

Regarding the proposed budget, the ACABQ states that it has no objection to the proposed changes in staffing, which include a net increase of 38 posts (10 international and 28 local) and the reclassification of one P-3 post to the P-4 level and two P-2 posts to the P-3 level.  Four of the new posts will be for the new Air Operations Unit, to be established within the General Services Section.  As some discrepancies were found by the auditors in the accounts of UNOMIG for the period ending 30 June 2000, the ACABQ trusts that efforts will be made to rectify this situation.

It recommends that some $27 million gross ($25.38 million net) be approved for UNOMIG's maintenance for 1 July 2001 to 30 June 2002.

Also before the Committee is the Secretary-General's financial report on

the United Nations Mission in Bosnia and Herzegovina (UNMIBH) for 1 July 1999 to 30 June 2000 (document A/55/683).  It states that in June 1999 the Assembly appropriated some $178.2 million gross ($168.19 million net) for UNMIBH for that period.  Expenditures totalled some $152.21 million gross ($143.37 million net), resulting in an unencumbered balance of over $25.99 million gross ($24.83 million net). The General Assembly must decide on the treatment of that balance.

The Committee also had before it the Secretary-General's proposed budget for UNMIBH for 1 July 2001 to 30 June 2002, which includes the budget for the United Nations Mission of Observers in Prevlaka (UNMOP) and the United Nations liaison offices at Belgrade and Zagreb (document A/55/752).  He recommends the General Assembly appropriate some $143.59 million gross for the missions.

This amount represent a 4.3 per cent decrease ($6,411,100) in total resources compared to the previous budget, as a result of a 24.1 per cent decrease in military personnel costs, a 2.7 per cent decrease in civilian personnel costs, and a 14.9 per cent decrease in operational costs.  This is partially offset by a 10.4 per cent increase in staff assessment and a 2.2 per cent increase in other programmes.

In a related report, the ACABQ notes that the high vacancy rates in civilian personnel and police are due to the need to provide assistance to the United Nations missions in Kosovo and East Timor, and requests specific information be included in future performance reports on staff assigned to assist other United Nations missions.

The ACABQ states that it understands the new Mission headquarters will be rent-free for eight years beginning April 2000 and that the $3 million cost to the United Nations is for renovation.  In view of the rent-free arrangement, the renovation would be completely amortized by April 2003.   Should a monitoring mission be required beyond the proposed completion of the mandate in December 2002, rental savings will accrue.  The ACABQ recommends that all future budget submissions provide a complete justification for significant investments

($1 million and above) in premises not owned by the Organization.

The ACABQ recommends the unencumbered balance of some $25.99 million gross for 1 July 1999 to 30 June 2000 be credited to Member States.

On the proposed budget to 30 June 2002, the ACABQ welcomes the proposed staffing reduction of 35 international staff (two P-4, eight P-3, 13 General Service, 12 Field Service) and the net increase of two national officers and

98 local staff.

It notes that the mandate of the Judicial System Assessment Programme concluded in December 2000 and an Independent Judicial Commission would take over many of its functions.  The Secretary-General proposes that 22 of the 42 posts of that Programme be used for the Criminal Justice Advisory Unit within the Office of the Commissioner of the International Police Task Force, and the ACABQ has no objection to this proposal.

It also recommends approval of the proposed conversion of 85 security posts to local staff, and notes that the increase of $1.9 million for local staff salaries is substantially offset by a reduction of $1 million for security services.

Requirements for civilian police are estimated at 100 per cent occupancy, but experience shows that full incumbency may not materialize, the report states.  The ACABQ also points out that since the Mission is beginning to wind down, it is expected that long-term personnel recruitment and placement and investment in equipment and infrastructure would begin to slow down during the coming financial period.

The ACABQ concludes that the requirements for the period ending on 30 June 2002 should not exceed $140 million gross.  It also recommends that, upon the completion of the Mission’s mandate, arrangements be made to place many of the current international staff of UNMIBH in other existing missions, should their requirements so permit.  Where it is not possible to immediately place such staff, their names should be placed in the Department of Peacekeeping Operations personnel roster for future recall.

Also before the Committee was the financial performance report for the United Nations Civilian Police Mission in Haiti (MIPONUH) for 1 July 1999 to

30 June 2000 (document A/55/753).  It states that in June 1999 the General Assembly appropriated some $18.64 million gross ($17.62 million net) for that period.  Expenditures for the period totalled some $18.08 million gross

($16.95 million net), resulting in an unencumbered balance of $559,116 gross ($666,216 net), mainly as a consequence of that fact that no expenditures were incurred for the refurbishment of equipment and only modest expenditures were incurred for assets shipped to the United Nations Logistics Base.

The Secretary-General recommends the Assembly note that commitment authority for some $2.2 million gross ($1.99 million net) authorized by the ACABQ was not used.  He also recommends the Assembly authorize use of $164,200 gross ($142,900 net) from resources provided for the period ending 30 June 2000 to meet the cost of completing liquidation tasks at Headquarters, as already agreed by the ACABQ, as well as to conduct the final audit of the Mission.   The Secretary-General also recommends taking a decision on the treatment of the remaining unencumbered balance of $394,916 gross ($523,316 net) for the period ending 30 June 2000.

Another report on financing of the Haiti missions (document A/55/667) provides details on the final disposition of the assets of those missions.  The inventory value of their assets as of 15 March 2000 was some $27.2 million, 46 per cent of which has been transferred to other peacekeeping operations or to the United Nations Brindisi Logistics Base for temporary storage.  The General Assembly is asked to take note of the report on the final disposition of the missions’ assets.

The Committee also had before it a related report from the ACABQ (document A/55/881), in which that body expresses concern about the weakness in liquidation planning identified in the report of the Board of Auditors.  It recommends that, in future, the Secretary-General's requests for resources for mission liquidation be accompanied by a detailed liquidation plan.  It also recommends that performance reports disclose miscellaneous income received during the reporting period in corresponding tables.

The ACABQ expresses concern about the final disposition of assets of the Haiti missions, particularly the items listed as stolen or unaccounted for.  It notes that items reported as unaccounted for include 20 prefabricated buildings, 37 computers and 99 items of other equipment (including nine generators and 42 air conditioners).  The ACABQ trusts that the proper use of the field assets control system, as well as measures to avoid losses of United Nations property, should result in better control.

Also before the Committee was the financial performance report of the United Nations Mission in the Central African Republic (MINURCA) for 1 July 1999 to

30 June 2000 (document A/55/849), which states that the Assembly appropriated a total of some $41.1 million gross (some $40.069 million net) for this period.  Expenditures for the period were some $39.9 million gross ($38.91 million net), resulting in an unencumbered balance of some $1.19 million gross, mainly as a result of lower costs for military and civilian personnel, as well as reduced operational requirements under premises/accommodation, air operations and other programmes.

According to the report, the General Assembly is asked to decide on the treatment of that unencumbered balance.

In a related ACABQ report (document A/55/884), that body expressed concern that the reasons for significant variation in performance between the appropriations and subsequent expenditures for such requirements as military personnel, civilian personnel and operational requirements had not been adequately explained in the Secretary-General’s report.  It recommends that such variation be fully analysed in future reports.

The ACABQ further recommends that the unencumbered balance of $1.19 million gross (some $1.15 million net) for 1 July 1999 to 30 June 2000 be credited to Member States.

Administrative and Budgetary Aspects of Peacekeeping Financing

Under this agenda item, the Committee had before it a note by the Secretary-General on an Office of Internal Oversight Services management audit of United Nations civilian police operations (document A/55/812). It states that civilian police components in peacekeeping operations have increased significantly. Less than two years ago, civilian police, who are provided by Member States, numbered approximately 2,200 and functioned primarily as monitors. Currently, there are more than 8,600 civilian police personnel, 75 per cent of whom have full executive police powers. Based on a request from the Department of Peacekeeping Operations, a management audit was initiated by the OIOS to review civilian police operations, with a view to enhancing their effectiveness.

The report states that the audit was conducted at United Nations Headquarters and at the three missions with the largest civilian police components –- UNMIBH, UNTAET and UNMIK. The audit identified several positive accomplishments by the Department of Peacekeeping Operations, including using civilian police selection assistance teams in home countries, using databases for managing police personnel, crime statistics and logistics tracking in UNMIK, and integrating civilian advisers into the Police Commissioner's office at UNTAET.

Notwithstanding these accomplishments, the report continues, many of the previous recommendations concerning civilian police have not been implemented. The Department has continued to "reinvent" civilian police management and administrative systems with the inception of each new mission.

In order to assist in improving civilian police operations, the Secretary-General presents several observations and recommendations in three broad categories, namely, strategic issues, recruitment and managerial issues, the report states.

The report notes that a comprehensive civilian police strategy has not yet been developed. Such a strategy should establish a methodology for calculating required civilian police strength, provide a common civilian police identity across all missions, and establish performance mechanisms for institutionalizing lessons learned. Greater use of information technology is also needed, both at Headquarters and in the missions. The Oversight Office recommends that the Department of Peacekeeping Operations, among other things, raise the level of the post of Civilian Police Adviser within the Department and change the structure so that he reports directly to the Under-Secretary-General for Peacekeeping Operations, thereby enabling him to better assist the Security Council in its decision-making. 

The report also recommends strengthening staff capabilities within the Civilian Police Unit to develop strategic plans and policies, and to manage information systems and technology. It recommends development of civilian police mission start-up kits (including standard operating procedures, organizational structures, job descriptions, management information systems and equipment specifications) in order to facilitate rapid and effective deployment of civilian police to new missions.

On recruitment issues the report notes that selection criteria remain unchanged throughout the life of a mission, regardless of its stage and the skills needed. The qualifying grade for the English proficiency test has been standardized, although it was clear that in certain missions, a higher level of proficiency would be more appropriate. Frequent civilian police rotations, particularly at senior management levels, were detrimental to operations. In order to improve civilian police recruitment and training, the Oversight Office recommends that the Department, among other things, develop a cadre of "United Nations-certified" civilian police who are ready for rapid deployment. It further recommends expanding the use of selection assistance teams.

On managerial issues, the report notes that civilian police are deployed in several non-policing roles, such as guarding prisons, protecting dignitaries, providing security and performing customs duties. The audit also revealed inefficiencies in transporting large civilian police contingents to and from missions. To improve the overall management, the Oversight Office recommends that the Department request Member States to contribute skilled civilian or non-commissioned civilian police officers to perform administrative functions, as well as specialists in the other non-policing activities currently being performed by civilian police. It also recommends the appointment of a central coordinator within the Civilian Police Unit, responsible for managing rotations and repatriations.

The report of the Secretary-General on the experiences learned from the use of resident auditors (document A/55/735) states that the main motivations behind employing resident auditors (Oversight Office staff members deployed to missions) is that their continuous presence in peacekeeping missions would provide reasonable assurance that the established internal controls are functioning effectively, provide an additional deterrent against mismanagement, waste, abuse or fraud in high-risk missions, and enable the Oversight Office to gain in-depth knowledge of mission operations and prepare it to react promptly to audit-worthy events as they develop.

Both the Oversight Office and the Peacekeeping Department agree that the practice has been very useful and should be continued, the report states. From 1994 to 1999, 15 resident auditors were deployed in 10 missions, serving a total of 209 staff-months. Their work resulted in the issuance of more than 1,500 recommendations, which have enjoyed better than 80 per cent acceptance by management. Among other corrective actions, these recommendations called for the recovery of fraud-related and other overpayments amounting to $9.5 million and the adoption of various cost-saving or income-enhancement measures amounting to an additional $9.3 million.

The use of resident auditors presents a number of challenges, however, including recruiting qualified candidates; ensuring that the appointed candidates receive proper training and exposure to best auditing practices; and ensuring that they maintain an effective working relationship with mission management without compromising their independence.

The Oversight Office has recommended that a resident auditor at the P-4 or P-3 level be assigned for each $100 million of annual budgeted expenditure and that for missions with annual budgets exceeding $200 million an auditing assistant at the G-7 or G-6 level also be assigned. That recommendation has been endorsed by the ACABQ. The Oversight Office also proposes that resident audit teams in large missions be headed by resident auditors at the P-5 level in view of the complexity of the operations to be covered. This is in line with what the ACABQ supported for UNTAET.

According to the report, as at 31 December 2000, 13 resident auditor posts and three auditing assistant posts had been authorized in six peacekeeping missions. Full implementation of the Oversight Office formula would result in the inclusion of one additional mission, UNIFIL, under the resident auditor arrangement; and establishment of up to five additional resident auditor posts at the P-3 through P-5 levels and one auditing assistant post at the G-7 or G-6 level. The actual recruitment and deployment of any additional resident auditors will be made only after the Oversight Office makes a detailed assessment of the risks and audit requirements for each mission. The Secretary-General supports deployment of resident auditors to major peacekeeping operations based on the criteria described above.

In its related report (document A/55/828), the ACABQ is requesting the Board of Auditors, in its next submission, include information on the adequacy of the resident audit function in missions. The ACABQ stresses that a proper selection process applied to all eligible candidates for resident auditors' posts, combined with a strict definition of functions, is essential. Other challenges can be surmounted by assuring the rotation of resident auditors among different posts and by strengthening the coordination between the field and Headquarters.

In the Secretary-General's report on the use of United Nations Volunteers (UNV) (document A/55/697) before the Committee, he concludes that the UNV programme has proven capable of identifying and deploying qualified United Nations volunteers to peacekeeping missions and field operations. The Department of Peacekeeping Operations is committed to strengthening this partnership and extending its collaboration with the UNV programme. It intends to continue its efforts to explore the potential for increased use of United Nations Volunteers in peacekeeping wherever feasible, in particular for those functions or skills which are not normally available in the Secretariat or which are limited.

Death and Disability Claims

The Committee had before it a note of the Secretary-General containing a summary of the progress made in 2000 in processing death and disability claims under both the old (national legislation) and new (ex gratia) regimes (document A/C.5/55/40). According to the document, the backlog of claims received before 19 May 1997 has been eliminated. Annexed to the note is information on expected claims, progress made in processing claims in 2000 by country and peacekeeping operation, and the total number of casualties reported by peacekeeping operations and the related number of claims submitted to the Secretariat

The document states that there were 263 claims pending at 31 December 1999, included 19 claims from the backlog in respect of periods prior to 19 May 1997. During 2000, 145 claims were received and 318 claims were processed, with 90 claims pending at the end of the year. The 19 claims from the backlog were cleared during 2000 and are not included in the 90 claims pending at 31 December 2000.

The Secretary-General states that as claims are submitted in different currencies and are subject to fluctuations of the exchange rate, it is not feasible to give a dollar value for each claim. The Secretariat also believes that the inclusion of dollar amounts for claims would give a misleading description of the value of pending claims.

In a related ACABQ report (document A/55/883), the ACABQ welcomes the improvement in the presentation of the report, but states there is room for further improvement. It asks for a column indicating dollar amount of the claims settled and paid during the specific reporting year. It also asks for information in the next report on the complete process for the settlement of death and disability claims. The ACABQ believes that steps should be taken to involve the Permanent Missions of Member States at the outset of the exercise, in order to facilitate and accelerate the process.

United Nations Logistics Base

The Committee also had before it the Secretary-General's financial performance report for the United Nations Logistics Base at Brindisi (document A/55/714) containing the financial performance information for the Base for the year ending 30 June 2000  It states that the Assembly, in June 1999, approved cost estimates of some $7.46 million for the financing of the Base for that period. An unencumbered balance of some $1.37 million from 1 July 1997 to 30 June 1998 was applied and the remaining balance of some $6.08 million was prorated among individual active peacekeeping operation budgets. Those amounts, also reflected in the respective performance reports for each individual mission, are shown in this performance report.

According to the performance report, expenditures for 1 July 1999 to 30 June 2000 amounted to some $7.03 million, including unliquidated obligations of some $1.87 million. The resulting unencumbered balance of $430,500 is mostly due to civilian vacancies among international staff, as well as reduced operational requirements. Savings of $227,100 are reported under civilian personnel costs, out of an apportionment of some $4.22 million. An average vacancy rate of 18 per cent among international staff for the reporting period resulted from delays in recruitment and temporary reassignment of staff.

The proposed budget for the Logistics Base for the 12-months ending 30 June 2002 was also before the Committee (document A/55/830). The Secretary-General seeks some $8.98 million gross ($8.17 million net) for its maintenance -- a reduction of $334,800 (or 3.6 per cent) compared to the previous apportionment.

According to a related ACABQ report (document A/55/874/Add.8), that body was informed that unliquidated obligations had been further reduced to $642,139 as of 31 December 2000. It recommends acceptance of the Secretary-General's proposal to apply the unencumbered balance of $430,500, as well as the interest income of $289,000 and miscellaneous income of $340,000 (some $1.06 million in total), to the resources required for the period from 1 July 2001 to 30 June 2002.

Regarding the proposed budget for the next 12-month period, the ACABQ notes that the cost estimates contained in the budget report are for maintenance. The Secretary-General proposes to submit a revised budget for the Base for 1 July 2001 to 30 June 2002 after completion of the review of the Base’s concept of operation and related requirements (including the review of the composition and number of mission start-up kits), due in the early part of the fall of 2001, along with the Headquarters capacity study and comprehensive review.  Unless the revisions entail significant changes in financial requirements, the results of the reviews should be reported in the next performance report and budget, in the winter of 2002. The ACABQ recommends that the budget proposal for the Base be accepted by the Assembly.

Peacekeeping Support Account

Also before the Committee was the Secretary-General’s financial performance report for the support account for peacekeeping operations for 1 July 1999 to 30 June 2000 (document A/55/861), which states that, in June 1999, the Assembly authorized some $34.88 million for post and non-post requirements for the period ending on 30 June 2000, including the establishment of 400 posts. Subsequently, it approved an additional 67 support account-funded posts and authorized the Secretary-General to enter into commitments not exceeding some $3.5 million for the additional staff costs.

The report states that the revised total resources made available for the support account until 30 June 2000 therefore amounted to some $38.38 million, comprising some $34.88 million prorated among individual peacekeeping missions and some $3.5 million in commitment authority. Actual expenditures amounted to some $38.36 million, resulting in an unused balance of $27,900. The balance is primarily due to savings under common services, which were offset by higher expenditures under salaries and overtime.

The Assembly is asked to decide to appropriate some $3.5 million to be prorated among the individual active peacekeeping operations and decide to apply the unencumbered balance of $27,900, interest income of some $1.27 million and miscellaneous income of $1,000 to the support account requirements for the period from 1 July 2001 to 30 June 2002.

Also before the Committee was the report on the budget for the support account for peacekeeping operations for the period from 1 July 2001 to 30 June 2002 (document A/55/862). The requirements are presented on a maintenance basis, pending completion of the comprehensive review and capacity study that is currently under way.

According to the report, the Secretary-General proposed requirements at the maintenance level for 1 July 2001 to 30 June 2002 of some $73.6 million gross (some $64.3 million net). The increase of $13.7 million gross (some $12.4 million net) over the current appropriation of $59.8 million is largely attributable to the full 12-month cost of the 93 additional support account posts and non-post resources approved by the General Assemble in resolution 55/238 of 23 December 2000. 

The report recommends that the General Assembly take action to approve additional support requirements for the period from 1 July 1999 to 30 June 2000 in the amount of some $3.5 million originally authorized by General Assembly in December 1999.

In addition, it recommends that the Assembly approve the support account estimate amounting to some $73.6 million gross (some $64.3 million net) for the 12-month period ending on 30 June 2002; apply the unencumbered balance of some $27,900, interest income of some $1.2 million and miscellaneous income of some $1,000 (some $1.3 million in total) from 1 July 1999 to 30 June 2000 to the resources required for 1 July 2001 to 30 June 2002; and to prorate the balance of some $75.8 million gross (some $66.5 million net) among active peacekeeping operation budgets.

In a related report from the ACABQ (document A/55/882), that body recommends the Assembly accept the proposal to appropriate the commitment authority of some $3.5 million, to be prorated among the individual active peacekeeping operations. It also recommends that the unencumbered balance, interest income and miscellaneous income (some $1.3 million in total) for 1 July 1999 to 30 June 2000 be applied to the resources required for the next period.

On the budget proposal for 1 July 2001 to 30 June 2002, the ACABQ notes that the Secretary-General is proposing requirements at a maintenance level pending submission of the current review and capacity study of peacekeeping support structures to the legislative bodies, and plans to then submit revised estimates. It points out, however, that the timing of the submission of the results of the studies and their examination by the competent intergovernmental bodies will determine whether final action should be taken during the first part of the fifty-sixth session. Given that it will take some time to prepare revised estimates, it would be more prudent for the ACABQ to reconsider the support account at its winter 2002 session. 

The ACABQ states that the standard recruitment time of 260 to 190 days for open positions within peacekeeping operations was too long, particularly for posts authorized on an emergency basis. It encourages the Secretary-General to continue to draw the Assembly's attention to any measures he takes to streamline the process and shorten the recruitment period. It also reiterates the need for the Secretary-General to draw attention to any practical problems he is encountering in implementing existing policies and guidelines on recruitment and placement of personnel, particularly for peacekeeping operations.

The report also states that the ACABQ has repeatedly indicated the essential importance of providing accurate workload data and analysis. Workload data can only be of use to the legislative bodies if they are analysed in a way that justifies the existing resource allocation or the additional required resources. It has been assured, it notes, that proposed programme budget for 2002-2003 would include changes in conformity with the results-based budgeting technique. It expects, therefore, that its request will be implemented in the context of the next support account proposals. It further asks that extrabudgetary resources provided be clearly identified and disclosed in future cost estimates reports.

According to the report, the ACABQ recommends that training programmes funded from the support account, as well as those funded from the regular budget for the civilian staff for peacekeeping activities, be systematically evaluated to ensure that they achieve their stated objectives. It notes its intention to follow up on the rise in unit cost of electronic data-processing in the context of its review of the proposed budget for 2002-2003, when it will also follow up on the issue of the allocation of space to the Department of Peacekeeping Operations. In the meantime, more support functions that can be delegated to field missions should be identified.

The report states that the ACABQ agrees with the recommendations of the Secretary-General, and recommends that, for the purpose of prorating the $75.84 million gross, amounts for the following missions should be:  UNIFIL (some $199.1 million), UNMEE ($180 million), UNAMSIL ($550 million), UNTAET ($563 million); and United Nations Organization Mission in the Democratic Republic of the Congo (MONUC) (to be determined).

Also before the Committee was the Secretary-General's comprehensive report on the use of the field assets control system (document A/55/845) describing the extent to which it has benefited procurement and the management of peacekeeping assets. It describes the initial stages of implementation of the field assets control system and expands on the status of the field mission logistics system.

According to the report, the field assets control system of the Department of Peacekeeping Operations is an online inventory tracking and management system currently deployed at 28 peacekeeping missions. As new systems are developed and deployed, the number of databases requiring management and control is expected to significantly grow, thereby increasing the complexity of managing the entire operation, as well as the load on the data and communications infrastructure. The introduction of management tools and techniques within the system will be needed.

The Department plans to outsource specific maintenance and support activities of the field mission logistics system, the report states, while retaining specialist activities, with overall plan and coordination of the whole project within the Field Mission Logistics Unit/Communications and Electronic Services Section. There is also an increasing need to provide for enhanced security measures at operational and database levels, as well as during transmission, and to maintain well-developed contingency plans in the event of failure or disaster. The Secretariat intends to develop and progressively deploy additional logistics support systems to create an integrated, online field logistics system to provide better accountability for contingent-owned equipment, United Nations-owned equipment and supplies and improve logistics responsiveness by automating administrative procedures. 

The report presents human, technical and other requirements and resource considerations for that purpose.

In related sections of the ACABQ report on peacekeeping financing (document A/55/874, paragraph 46), that body states it will offer more comments when it reviews the Secretary-General's report. It remains concerned, however, about weaknesses in inventory management and asset control of peacekeeping operations. It has identified lack of procurement planning and vendor performance evaluation, and systematic training and retention of staff as major causes of concern.

Organization of Work

The Committee’s Chairman, GERT ROSENTHAL (Guatemala) said that as most documents before the Committee were out, it could conclude its work in the three weeks of the resumed session.  Of course, the Bureau would review the progress of work continuously and make the necessary adjustments during the course of the session, as required.

SEYED MORTEZA MIRMOHAMMAD (Iran), speaking on behalf of the "Group of 77" developing countries and China, said he appreciated the efforts of the Bureau to address the problems of documentation and programme of work.  To avoid uneven distribution of meetings, it was necessary to schedule a meeting for Friday,

11 May, on the financing of peacekeeping operations.  Sufficient time should be allocated to the question of the budgetary and administrative aspects of peacekeeping. 

He went on to say that the issue of documentation should be addressed seriously, for it affected the work of the Committee.  The Secretariat should comply with the 6-week rule for the submission of the documents.  Rules and regulations governing distribution of drafts in all official languages should be strictly followed.  He wanted to know the reasons for the delay in the issuance of several reports and said that the reports issued late or not issued on time in all official languages could not be considered, as scheduled.  Another chronic problem was also the late submission of summary records. 

The CHAIRMAN said that the proposals of the representative of Iran would be incorporated in the programme of work of the Committee.

The Committee approved its programme of work for the first week of the resumed session and noted the proposed programme for the remainder of the session and the document on the status of the documentation before the Committee.

Introduction of Reports and Statements

PRAMESH BHANA, Director of External Audit (South Africa), introduced the report of the Board of Auditors (document A/55/5/Vol.II), saying that while the Board had not qualified its opinion of the fair presentation of the financial statement, it had included a paragraph in its audit opinion that emphasized two matters.  First of all, claims totalling approximately $39.9 million from troop- contributing countries had not been accrued in the accounts of the peacekeeping operations, mainly because funds had not been reserved to settle the claims.  The Board was pleased with the efforts by the Administration to reduce the non-accrual of certified claims by approximately 73 per cent.  However, it remained concerned that the omission of valid claims in the peacekeeping accounts was not in accordance with the United Nations accounting standards.

The second matter to which the audit opinion referred related to the Board’s inability to obtain assurance that the value of non-expendable equipment amounting to some $457 million was reasonable.  That was the result of deficiencies identified during the audit relating to the control and recording of such equipment.  The Board had provided a summary of its findings and recommendations to afford an overview of the main issues.  The Board had also reviewed the status of implementation of its recommendations for the financial periods ended 30 June 1998 and 1999.

The ACABQ had made two requests to the Board in its report on the financial reports and audited statements dated 5 April.  The first request was that the Board make a comprehensive assessment of all aspects of the implementation of the contingent-owned equipment arrangements.  The Board was also invited to inquire about the adequacy and effectiveness of resident auditors at the field missions.  The Board was pleased to inform the Committee that it had already planned to follow up on those matters during the next audit of peacekeeping operations.

Introducing the first report of the Secretary-General on the implementation of the auditors’ recommendations , HARRIETT SCHMIDT, Chief of the Office of the Under-Secretary-General for Management, said that in preparing the report due consideration was given to the need for disclosure of those responsible for the implementation of relevant recommendations.  The Administration continued to attach great importance to the implementation of the Board’s recommendations.  The process would continue to be under review by senior management, as required.

ABDALLA KHALID (Libya) asked for clarification regarding the amount of

$39.9 million for contingent-owned equipment.  Were the accounts reported on the basis of accrued expenditures?  He wanted to know how the initial amount had been reduced by over 70 per cent.

In response to that question, Mr. BHANA said that he would return to that issue in his closing remarks.  The Board had previously reported that approximately $149 million had not been accrued.  The process followed was to obligate amounts only once the funds had been reserved for that purpose.  For troop-contributing countries, once certified, the amounts should be accrued.  Based on the United Nations accounting standards, the amount should be accrued. 

Mr. KHALID (Libya) wanted to know how the accruals were developed.  He was trying to understand from the documents if actual services or goods were delivered, regardless of the obligation.  Accrual should mean that the services had been rendered and goods had been manufactured, or were in transit. 

    The Chairman of the ACABQ, CONRAD S.M. MSELLE, said that upon review of the situation the Advisory Committee had identified the differences between the Board and the Secretariat regarding the treatment of $39.9 million relating to claims for contingent-owned equipment, based on the old method of reimbursement, in place before 1 July 1996.  The Administration treated such claims as contingent liabilities pending future decisions by the General Assembly. The auditors are of the view that they are present obligations, as they relate to benefits already received and verified by the Department of Peacekeeping Operations.  Under the circumstances, the ACABQ has concluded that the procedure followed by the Administration is broadly in conformity with the Financial Regulations and Rules of the United Nations.

Director of Accounts Division JAYANTILAL KARIA said that, as far as the technical issue was concerned, the concept used by the United Nations was an accrual concept.  Appropriations were not available to record appropriation on the books, and funds not yet approved by the Assembly could not be reflected.  The Administration had followed a procedure whereby, in preparing the peacekeeping reports, an appropriation had been requested following the recommendation of the Fifth Committee.

Mr. KHALID (Libya) said that he hoped it would be possible to agree on the matter and bring about a resolution acceptable to all.  He agreed that unless the money had been appropriated by the Assembly, it could not be obligated.  Creating the obligations in the first place seemed to present a problem.  If the obligations waiting for an appropriation were not created, there would be no problem.

BOCK CHENG YEO, Director, Peacekeeping Financing Division, said the issue was not new.  However, last year, final performance reports had been submitted, allowing the Assembly to regularize the obligations and reduce the number of claims pending.  The Assembly could not take financing action before such reports were submitted.  The remaining $39 million were there pending the submission of two final performance reports encompassing all known liabilities UNOSOM and UNAMIR.

Turning to the financing of peacekeeping operations, JEAN-PIERRE HALBWACHS, United Nations Controller, introduced some 37 reports that would form the bulk of the Committee’s work during the session.  Those reports included performance reports for 15 peacekeeping missions for the period 1 July 1999 to 30 June 2000,  budget estimates for seven peacekeeping missions for the period 1 July 2001 to

30 June 2002, as well as two reports on the final disposition of assets for UNPREDEP and MIPONUH, and 11 reports falling under the administrative and budgetary aspects of the financing of peacekeeping operations.  For the period ending 30 June 2000, the General Assembly had approved $2.5 billion for all peacekeeping operations.  He added that during this session, the Committee would consider the first budget for the United Nations Mission in the Democratic Republic of the Congo (MONUC), increasing that figure by $140 million.  Overall, he said the budgetary mechanisms and procedures established by the Assembly in 1994 had proven to be flexible, practical and durable.

As for future budgetary needs, he noted that the requirements for five missions –- in Ethiopia and Eritrea, East Timor, Sierra Leone, Lebanon, Democratic Republic of the Congo --  had yet to be calculated, but it was a fair assumption that unless the mandates of ongoing missions were to be curtailed, the peacekeeping budget for July 2001 to June 2002 would not be less than that of the current period.   He added that some “bridging” financial actions had been requested for the five “missions in transition”.  He went on to highlight some of the financial and budgetary details included in the performance reports on the Organization's peacekeeping operations.  He said that against total appropriations and commitment authorities with assessments amounting to $1.7 billion gross, expenditures and obligations amounted to $1.5 billion, leaving an unencumbered balance of some $176 million, or some 13 per cent, which is available as credits to Member States.

The Chairman of the ACABQ, CONRAD S.M. MSELLE, introduced related reports of that body, saying that the Advisory Committee had commented on a wide range of subjects.  The general conclusion from all the reports was that, in comparison with the appropriations for the period ending on 30 June 2000, resources for peacekeeping operations could increase by approximately 52 per cent for the current period ending 30 June 2001.  By the time budget estimates were finalized for the period ending 30 June 2002, the increase could reach 76 per cent, compared with the level of appropriations for 2000.   While the General Assembly had approved some $1,705.2 million for 1999/2000, total requirements for 2000/2001 could reach $2,600 million.  Before the end of the current resumed session, a clearer picture for the current financial period would emerge after reviewing additional estimates for the Mission in the Democratic Republic of the Congo. 

The monthly summary of personnel contributions had increased from 12,461 in March 1999 to 29,286 in March 2000 and 41,805 in March 2001, he said.  Currently, the largest Mission was UNAMSIL with 17,500 authorized troop strength.  The streamlined budget preparation changes and closer coordination between the Headquarters and field operations had considerably improved the capacity of the Secretariat to manage peacekeeping operations.  The legislative changes introduced by the Assembly had enabled the ACABQ and the Fifth Committee to examine peacekeeping budget in a more orderly manner. 

In spite of the progress achieved, the Advisory Committee had pointed out in its reports many areas that needed continuous evaluation and assessment of the adequacy and efficiency of current methods and procedures for the management of peacekeeping operations.  The general report of the ACABQ commented on areas that needed further improvement.  In particular, there was an urgent need to improve the capacity of the Secretariat to recruit and place civilian personnel in missions in a timely manner.  The bulk of unencumbered resources for peacekeeping resulted from high vacancies in civilian personnel.

On peacekeeping performance reports, the ACABQ recommended that the unencumbered balance of $175.2 million for the period ending 30 June 2000 be credited to Member States in the manner indicated in the relevant reports of the Committee.  The report on the performance of UNTAET would be submitted to the fifty-sixth session of the Assembly.  However, the ACABQ recommended that a decision be made at the current resumed session to credit Member States with the unencumbered balance of some $57.99 million. 

Performance reports showed that non-receipt of assessed contributions affected the timely reimbursement to troop-contributing countries and seriously distorted the cash flow situation of the missions concerned.  The ACABQ had reviewed the budgets of seven missions totalling $799.4 million for the period

1 July 2001 to 30 June 2002.  It recommended approval of the Secretary-General’s estimates with minor modifications.  The recommendations on UNMIK for $400 million would be subject to review in the context of revised estimates to be submitted to the Committee in February and March 2002.  Estimates for five missions would be submitted to the fifty-sixth session of the General Assembly.  In the meanwhile, the ACABQ recommended providing resources for four missions -– UNIFIL, UNMEE, UNAMSIL and UNTAET -– for the period from 1 July to 31 December 2001.  Shortly, the estimates for the Mission in the Democratic Republic of the Congo would be taken up. 

The ACABQ recommended acceptance of the proposals on the support account to assess $75.8 million and on the Logistics Base in Brindisi ($8.9 million).  The post-Phase V Working Group had taken up the subject, but no agreement had been reached on specific definitive recommendations to the Assembly.  The resources on those two items would be affected by the results of the studies currently under way to implement the recommendations of the panel on peacekeeping operations.  The Advisory Committee had also examined again the subject of rates of reimbursement to troop-contributing countries for troop costs.  To assist Member States in reaching a broad political compromise at this stage, it had decided to recommend, as an ad hoc arrangement, an increase in the rates of reimbursement of between 4 and 6 per cent.  Consideration should also be given to having recourse to a group of qualified individuals who would make proposals on the methodology and the elements on which it was based.

RAMESH CHANDRA (India) asked for the last two statements to be circulated among the members of the Committee.

DILEEP NAIR, Under-Secretary-General for Internal Oversight Services (OIOS), then introduced the report of the OIOS on the management audit of civilian police operations (document A/55/812) and the report of the Secretary-General on experiences learned from the use of resident auditors (document A/55/735).  He noted that the OIOS had carried out its audit concurrently with a study conducted by the Panel on United Nations Peace Operations.  The findings in the OIOS report were parallel to those of the Panel.

Describing the main findings contained in the report, he said that a comprehensive civilian police strategy had yet to be developed despite the massive increase in the deployment of the civilian police.  The structure, reporting lines and staffing strength of the civilian police unit had adversely affected its ability to manage operations effectively.  Resource utilization also needed to be improved.  The matters addressed in the document needed to be fully addressed.  He was pleased that the Department of Peacekeeping Operations had generally accepted the OIOS recommendations and, in some cases, had already taken steps to implement them.

Regarding resident auditors, he said that the OIOS had developed a formula for providing audit coverage in large missions, which was a useful guide for determining the number and level of resident auditors needed for adequate internal mission audit coverage.  He hoped the Committee would endorse the findings and conclusions of the Secretary-General’s report.

PER NORSTRÖM (Sweden), speaking on behalf of the European Union, said the Union was strongly committed to United Nations peacekeeping, which it considered one of the Organization’s core functions.  Indeed, the Union financed a large share of peacekeeping operations as well as mission personnel.  The Organization’s peacekeeping efforts were global, and to be able to meet the myriad needs of those efforts, particularly that of the Department of Peacekeeping Operations to plan, deploy and manage peace operations, it was necessary to ensure that adequate structure and staffing were in place.  It was also important to consider the multifaceted requirements faced by most peacekeeping missions, namely the restructuring of institutions, human rights issues and the situation of children in armed conflict.

He went on to say that with the budgets for the four largest peacekeeping missions being submitted to the Assembly next year, and due to recent or anticipated developments that would likely affect the mandates or resource requirements for those missions, it would be of utmost importance to adhere to the normal peacekeeping budget cycles.  As the expenditures for peacekeeping were moving upward, a presentation by the Secretariat on budgetary forecasts beyond budget years under consideration would be most helpful in assisting Member States with planning.  Regarding the issue of wet-lease and self-sustainment arrangements, the Union agreed with the ACABQ that an effective procedure needed to be put in place for ascertaining the capacity of troop-contributing countries to meet those requirements.

He said that lack of procurement planning and inadequate staffing for inventory management continued to be cause for concern.  In that regard, the use of the field assets control system now operational in all missions should make better control of United Nations property achievable.  With regard to the support account, the Union agreed with the Secretary-General’s report, which noted that requirements of the budget were calculated at a “maintenance level”, pending submission to the Assembly of revised resource requirements next fall. He went on to say that he also agreed with the Advisory Committee’s opinion that urgent matters needed to be taken to streamline the recruitment process for filling open positions in the Department of Peacekeeping Operations, particularly those approved in December.  At the same time, filling those positions also highlighted the need to allocate additional space to the Department as soon as possible.

He said the Union recognized that many improvements had been made in the management of peacekeeping missions, particularly where findings of the Board of Auditors had highlighted the need for adherence to rules and regulations. He therefore regretted the late issuance of the Board’s report.  The Union believed that, in order for Member States to be able to assess more easily the effective and efficient management of missions, it would be useful for each mission to set its own objectives related to its administration.  Those objectives could be reported on each budget submission.

IBRAHIM ASSAF (Lebanon) said on the basis of the information provided in the reports on peacekeeping operations, he had noted that a budget for UNIFIL had not been issued.  He wanted to know, therefore, what sort of financial rules and regulations would be adopted that were expected to be adopted on the matter.  Would the Committee adopt a new resolution during the current session to finance UNIFIL or would it make due with the previous resolution from January 2000?

In response to that question, Mr. YEO said that there had been a request for approval of a commitment authority to be granted for resources for the Mission in Lebanon and five other missions.  Those finances would be equivalent to half the budgetary level for those missions for 2000-2001 or, roughly, financing for six months.  That would allow time to provide detailed budgetary requirements for submission to the Assembly in the fall.  That time would also allow for any further action or consideration by the Security Council.

Mr. ASSAF (Lebanon) said that answer was satisfactory, but still would like to know if, as had been the Committee’s practice in the past, a resolution would be adopted on the matter.

The CHAIRMAN said that indeed a resolution would be adopted on the funding of UNIFIL.

ABDOU AL-MOULA NAKKARI (Syria) associated himself with the Group of 77 regarding the organization of work of the Committee.  It was possible that

follow-up would be needed on some matters the representative of Iran had raised.  As for the items introduced this afternoon, he said that he would like to make a statement on UNDOF financing later.  At that point, he hoped a representative of the ACABQ would be able to shed light on some points of interest to his delegation.  For instance, the Controller had mentioned a proposal by the Secretariat to convert certain G posts into local ones in the context of cost reduction.  He wanted to receive further explanations on that matter.

Turning to UNIFIL, he said that his understanding was that the same methodology was to be adopted as before, but for an interim period of six months.  The ACABQ report (document A/55/874) mentioned some missions that did not have a budget yet in view of the possibility that their mandate and circumstances could change.  He would prefer to see an official report on those relevant questions.  Instead of resorting to temporary measures, he would prefer to see the details on the needs of the missions in question, including the vacancies and the financial needs.  Also, Israel had been asked several times to make compensation for the bombing of Qana.  He wondered if any new information could be provided on that matter.  Since there was no official report on the financing of UNIFIL, he did not know about the latest developments in that respect.  

The ACABQ report before the Committee also stressed the need to increase mobility and mentioned United Nations volunteers.  Those questions needed to be considered in greater depth before the Committee could adopt a definitive position on them. 

In the annex to the ACABQ report, United Nations Truce Supervision Organization was mentioned along with UNIFIL.  That was an item adopted every two years by the General Assembly.  Those two missions should be treated separately, for they were not interrelated.

VASILY V. GRUZDEV (Russian Federation) said he wanted to address the financing of UNMIK.  The main goal of that Mission was to assist in full implementation of resolution 1244 of the Council.  Among other actions, it was supposed to assist in the establishment of the transitional administration and development of an adequate infrastructure for self-government.  The budget of the Mission through June 2002 had been proposed at the level of $448 million, which represented a small reduction in appropriations compared with the current period.  In connection with the replacement of the Special Representative of the Secretary-General, a revised budget of the Mission was to be submitted.  The conclusion of the ACABQ that a replacement of the Special Representative should not automatically mean the change in the budget, since the mandate of the Mission remained unchanged, seemed logical.

For the upcoming elections, he continued, it was important to ensure safety, which would guarantee a free expression of will by all ethnic groups in the Province.  For that reason, it was necessary to carefully prepare for the elections.  In general, however, UNMIK should not go beyond the framework of initial estimates, even in view of the coming elections.  He supported the ACABQ recommendations on the resources for that Mission.  During informals, he also wanted to receive clarification on the proposed travel appropriations for UNMIK, which seemed excessive.

Responses to Questions

Responding to questions, Mr. HALBWACHS said there were a few question that could be answered right away.  To the representative of Syria, he said there had been a proposal to convert General Service posts to local level posts in two missions.  At UNIKOM, a conversion of eight positions had been proposed and at UNMIBH, the conversion of 13 positions had been proposed.  He added that no such proposal had been made with respect to UNDOF, but there had been a request for adding two local level posts outright.  As for the financing of UNIFIL, he said that since the Security Council had extended the mandate of that Mission by six months, with a provision that it would consider the matter further, he felt that it was too early to issue a full budgetary report.  He also took note of the comments made by the representative of the Russian Federation.

Mr. NAKKARI (Syria) noted the intention of the Secretariat to follow up the questions he had raised.  He said his delegation had understood that there was only one peacekeeping operation in which a proposal had been made to convert a General Service post to one at the local level.  He added that he had not referred to UNIFIL or UNDOF specifically.  He reiterated that UNTSO was financed biannually through action by the Assembly . He asked if Israel had paid the cost of bombing the United Nations forces headquarters in Qana.

Mr. HALBWACHS said that no money had been received from Israel.

Mr. ASSAF (Lebanon) proposed, in light of the fact that Israel had not paid the required amount, the addition of a paragraph on that subject when the Committee next considered a resolution on financing for peacekeeping operations.

Turning to human resources management, Inspector FRANCESCO MEZZALAMA introduced the report of the JIU on recruitment and management of young Professionals within the Organization (document A/55/798).  He said that all the inspectors agreed that the international civil service now operated in a completely different atmosphere than it did immediately following the Second World War.  he increased competition of the Organization’s various secretariats now faced from other global employees, the advent of modern communications technologies and increased insistence from Member States on more efficient use of resources all pointed to a need to rejuvenate their workforces and re-engineer management of their human resources.

He went on to say, however, that despite all this, the main problem facing the United Nations system was not the ability to attract a large number of applicants, but rather the need to ensure that those applicants possessed the right skills and that those skills were fully utilized.  He said one of the main problems in preparing the report had been the lack of comparable statistics on separations of Professional staff by type of separation and grade.  The report therefore advocated that such additional information and data be made available.  Other recommendations in the report emphasized the need to reduce the recruitment age, to strengthen mechanisms established to ensure the successful integration and development of young Professionals and to accelerate the placement of candidates who had successfully completed the national competitive recruitment exam.  He added that the report did not suggest that junior Professionals should be given priority eligibility for study leave programmes; rather, it aimed to highlight the need to encourage the continued acquisition of expert knowledge in some critical fields.

RAFIAH SALIM, Assistant Secretary-General for Human Resources Management, introduced the comments of the Secretary-General on the JIU report (document A/55/798/Add.1).  She said that the Secretary-General highly appreciated the Inspectors’ work on that matter, for it was a major focus of his human resources reform programme.

It was important to recognize the significant differences between particular organizations’ mandates and requirements, taking into account the needs of each organization, she said.  However, all organizations were increasingly aware that recruitment and retention of competent staff were of vital importance.  Sharing of best practices was very useful in the search for effective measures. 

She went on to say that placing stress on the need to rejuvenate the United Nations and to bring in the needed skills while ensuring fair geographical representation, the Secretary-General appreciated the comments on national competitive examinations.  Steps were being taken to address the areas of particular concern.  Speedier placement of successful candidates on the roster was among the priorities.  Opportunities were being created for junior staff, including special orientation and training programmes.  She and her colleagues would be pleased to further discuss the matter. 

Regarding the junior staff retention, she said that the Inspectors had pointed out that between July 1998 and June 1999, many resignations had been presented by staff at P-2 level.  An overwhelming majority of those resignations, however, were of people with limited duration appointments.  They were not national examination candidates.  There was, in fact, a marked decrease in the number of resignations on the part of not national examination candidates staff.  Measures were taken to facilitate spouse employment at all duty stations, for it was critical for retaining young Professional staff.

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