Sixty-second General Assembly

Fifth Committee

3^rd Meeting (AM)

BUDGET COMMITTEE TAKES UP REPORT OF JOINT INSPECTION UNIT

 

As the Fifth Committee (Administrative and Budgetary) took up the report of the Joint Inspection Unit this morning, several speakers emphasized that body’s importance as the sole independent external oversight body of the United Nations system and expressed appreciation for recent improvements in its working methods and procedures, including a more user-friendly report format, the efforts to improve the Unit’s website, and create hyperlinks to documents from each participating organization.

Joining others in welcoming new information on the level of implementation of the Unit’s recommendations, the United States’ representative pointed out, however, that those recommendations had little value unless management took prompt action to implement them.  While it was “satisfactory”, as the report suggested, that 72 per cent of the recommendations in single-agency reports in 2004 and 2005 had been accepted by participating organizations, it was disappointing that only 30 per cent of the approved recommendations had been actually implemented.  The implementation of system-wide report recommendations did not appear to be much better.

In that connection, he wanted to know why it was taking two or more years for organizations to take action on the recommendations that were designed to achieve greater efficiencies and more effective delivery of programme outputs.  That failure to take prompt action resulted in system-wide inefficiencies and unnecessary waste of valuable Member State resources.

Pakistan’s representative, speaking on behalf of the “Group of 77” developing countries and China, expressed appreciation for the Unit’s actions to strengthen its follow-up system on the recommendations by monitoring the status of their acceptance and identification of action required by the participating organizations.  He hoped the matrix system developed by the Unit would improve the implementation of the recommendations.

The representative of the Russian Federation said that his delegation expected from the Unit “an aggressive approach” to identifying the weak links in management.  He also drew the Committee’s attention to the importance of timely submission of reports on current and urgent subjects.  For instance, the Unit had produced a report on staff mobility, which was issued after the Assembly had adopted relevant decisions.  Had the report been submitted earlier, those decisions might have been different.

Also this morning, representatives of Kuwait, Russian Federation and Japan made statements on the Committee on Contributions report on the scale of assessments, by which Member States’ contributions to the United Nations budget are calculated.

Also addressing the Committee were the Chairman of the Committee on Contributions, Bernardo Greiver, and the Chair of the Joint Inspection Unit, Mary Deborah Wynes.  Ms. Wynes also introduced the Unit’s report to the Committee.

The Budget Committee will continue its work at 10 a.m., Wednesday, 10 October, when it is expected to take up several reports of the Board of Auditors and the Office of Internal Oversight Services (OIOS).

Background

The Fifth Committee (Administrative and Budgetary) met this morning to continue its debate on the Organization’s scale of assessments (for details, see Press Release GA/AB/3810 of 8 October 2007) and begin its consideration of the report of the Joint Inspection Unit.

In its annual report (document A/62/34), the Joint Inspection Unit -- the only independent external oversight body of the United Nations mandated to conduct system-wide evaluations, inspections and investigations -– states that its programme of work in 2006 was marked by a growing interest in, and intensive discussions of, governance and system-wide oversight as a holistic function of Member States.

In the seven reports and one note issued last year, the majority of recommendations (54 per cent) were aimed at management improvement through enhanced efficiency and effectiveness.  Another 15 per cent were aimed at enhanced coordination and cooperation between participating organizations.  In 2006, four of the Unit’s seven new projects were system-wide or multi-agency in nature, while four solely concerned the United Nations.  Emphasis has been placed on implementation of results-based management, internal and external oversight, strengthening the coordination and support of humanitarian assistance for disaster reduction and response, accountability, and efficiency issues.  The reports issued that year included those on the follow-up review of the Office of the High Commissioner for Human Rights; results-based management; staff mobility; and Goodwill Ambassadors in the United Nations system.  The Unit expects projects not completed in 2006 to be completed during the second quarter in 2007.

Under the follow-up system adopted by the Unit in 2005, and endorsed by the Assembly in resolution 60/258 -- which asks participating organizations to indicate the status of acceptance and implementation, and the achievement of recommendations -- the report found 30 per cent of system-wide reports issued in 2004 and 2005 accepted, and as many as 45 per cent are still under consideration.  At the end of 2006, 72 per cent of recommendations in single-agency reports were accepted, and 20 per cent still were under consideration.  As setbacks to acceptance, the Unit noted infrequent meetings of governing bodies and their failure to explicitly endorse recommendations.

On the implementation, the report found 22 per cent of recommendations implemented; 32 per cent in progress towards implementation; 13 per cent not yet begun; and 33 per cent not enough information provided.  The Unit expects implementation rates to continuously improve as governing bodies consider more reports.

Regarding expected savings, the Unit recalled its previous recommendation to conduct a review of a possible merger between the United Nations Office for Project Services and the Inter-Agency Procurement Services Offices, which could result in $1.6 million savings per biennium.  As is the practice in several agencies already, the Unit also recommended Goodwill Ambassadors pay their own travel-related expenses.  Inspectors estimate the United Nations Children’s Fund (UNICEF) would save at least $200,000 by having Goodwill Ambassadors self-finance.

Administrative reforms of the Unit in 2006 included:  management assessments of participating organizations; making the Unit’s Web site multilingual; a revamped Intranet which includes an electronic documentation and information centre; and adopting a report template.  The Unit requests, in its 2008-2009 budget proposal, the conversion of two General Service posts to Research Officer posts at the P-3 level, amid the continued reorganization and expansion of the Secretariat’s research staff, and the addition of an Investigation and Inspection Officer to the Unit’s staff.

In connection with its relationship with other oversight bodies, the Unit reports on its 14 December 2006 meeting with the Board of Auditors and the Office of Internal Oversight Services (OIOS) to ensure there is no overlap of work planned by the three entities for 2007.  The Unit’s work programme for 2007 includes 11 reviews:  four system-wide, three multi-agency and four single-agency.

Statements

Addressing the Committee on Contributions report, ZIYAD MONAYAIR ( Kuwait) supported the position of the “Group of 77” developing countries and China and said that the item under consideration was one of the most important ones, since it was closely linked to the financing of United Nations activities.  Considering the Organization’s critical role, it was important to provide it with adequate financing, which would allow it to fulfil its mandate.  The capacity to pay was an essential principle for determining Member States’ contributions.  Any increases for developing country assessments, with a drop in those of developed countries, were not acceptable within the framework of the scale.

His delegation hailed the system of multi-year payment plans, which allowed Member States to fulfil their obligations to the United Nations, he said.  He also supported the recommendations of the Committee on Contributions in connection with Article 19 of the Charter, which would allow several countries to enjoy the right to vote in the Assembly until the end of the current session.  The political will of Member States to pay was essential.  For its part, Kuwait was convinced of the Organization’s essential role and would continue to respect its financial commitments in a timely manner.  His delegation hoped the Committee on Contributions would continue to apply and develop the main elements of the scale methodology to avoid excessive increases in the assessment of developing countries.

MAXIM GOLOVINOV ( Russian Federation) stressed that the just distribution of the expenditures of Member States was the exclusive prerogative of the General Assembly.  He also stressed the important principle of capacity to pay and noted that contributions should be paid in full, on time and unconditionally.  Compliance with that principle helped to make the Organization financially stable, and he believed the existing scale methodology, which was a result of meticulous work done by Member States over the year, did not require any substantive changes.

Continuing, he said that the principle of capacity to pay made the United Nations a unique, universal organization in which each country had a vote, regardless of its financial contribution.  He attached great importance to the further work on the methodology for the scale of assessments done by the Committee on Contributions and expressed satisfaction with the Committee’s recommendations.

He noted the intention of the Committee to continue to consider the elements of the scale of methodology and to submit to the Assembly at its sixty-third session a comprehensive report, in accordance with General Assembly resolution A/RES/61/237.  He, thus, advised that a discussion on the scale of methodology during this session would be premature and unproductive.  He did not object to granting countries in arrears under Article 19 the right to vote until the end of the Assembly’s sixty-second session, as recommended by the Committee on Contributions in its report.

TAKESHI MATSUNAGA ( Japan) expressed appreciation for the useful and informative report of the Committee on Contributions.  His delegation concurred with the recommendations of the Committee regarding the application of Article 19 of the Charter.  He also viewed multi-year plans as a useful tool in encouraging payment of Member States’ arrears and would like to encourage the States that had not done so to submit such plans at an early date.

In his concluding remarks, the Chair of the Committee on Contributions, BERNARDO GREIVER, thanked all the delegations for their statements, saying that their views would be conveyed to the members of the Committee and taken into account.  The Committee was now engaged in a study of methodology, and several reports would be presented to the Assembly next year.  He thanked Member States for their support.

Report Introduction

MARY DEBORAH WYNES, Chairperson of the Joint Inspection Unit, introduced the Unit’s report.  She emphasized that the Unit viewed oversight as the ultimate function of Member States, noting that oversight in a public sector organization went far beyond internal auditing.  She added that the Unit expected to complete at least 13 reports and notes in 2007.  Although she appreciated the Committee’s support on the issue of replacing two General Service posts with Research Officer posts at the P-2 and P-3 levels, she noted that the Unit had failed to convince the Advisory Committee on Administrative and Budgetary Questions (ACABQ) of the proposal’s validity.  She urged continued support for the conversions.

IMTIAZ HUSSAIN ( Pakistan), speaking on behalf of the Group of 77 and China, expressed his appreciation for the Unit’s work as the sole independent, external oversight body of the system.  In particular, he commended the improvements in its working methods, tools and procedures, such as the harmonized report format, which would make documents more reader-friendly and in line with the Assembly’s guidelines.

Regarding the programme of work for 2007, he stressed the full implementation of the recommendations of concerned agencies and entities.  Expressing further appreciation, he noted the actions taken by the Unit to strengthen its follow-up system, and he hoped the matrix system developed by the Unit would improve its implementation.  He called the acceptance rate for both system-wide and single-agency reports encouraging, and urged participating organizations to provide information on the status of implementing the Unit’s recommendations.  Continuing, he noted that management assessments would be a useful internal tool for the respective organizations in preparing their work programmes.  He called the implementation of the Unit’s recommendations on the internal justice system, results-based management and the management of the United Nations laissez-passer concrete examples of their quality.

On collaborations, he noted that the Group was pleased with the efficiency gains and expected savings likely to be accrued from the strengthening collaboration between the Office of Project Services procurement service and the Inter-Agency Procurement Services Office to the amount of $1.6 million per biennium.  He also hoped savings would be made from modifying the travel expenditures of Goodwill Ambassadors.  Continuing, he said the Group was pleased with ongoing cooperation and coordination between the Unit, the Office of Internal Oversight Services (OIOS), and the Board of Auditors.  He commended the Unit’s initiative to make documents available in six languages on their website and noted that the Group looked forward to the establishment of electronic documentation and an information centre to facilitate information gathering.  He then expressed concern that two research assistants were not assigned to inspectors, and called the Unit’s request for upgrading two General Service posts well placed.

ANDREW S. HILLMAN ( United States) said that his delegation appreciated the reorganization of the Unit’s schedule in response to the request of Member States in resolution 61/238.  As pointed out by the Chairperson in the preface to this year’s report, the new approach had resulted in a number of benefits for the Unit, including better coordination and information-sharing with other oversight bodies.

The United States also welcomed the additional information provided in this year’s report on the level of implementation of the Unit’s recommendations, he continued.  Those recommendations, however helpful they might be, had little value unless management took prompt action to implement them.  Thus, while it was “satisfactory”, as the report suggested, that 72 per cent of the recommendations in single-agency reports in 2004 and 2005 had been accepted by participating organizations, it was disappointing that only 30 per cent of the approved and accepted recommendations had been actually implemented.  Although 59 per cent of the remaining recommendations were listed as in the process of being implemented, he would be interested to learn why it had taken so long for management and the governing boards to act on the Unit’s recommendations.

It appeared the record on implementation of system-wide report recommendations was not much better, he continued.  Why, for example, were as many as 45 per cent of those recommendations still under consideration by the governing bodies?  Why did it take two or more years for organizations to take action on the recommendations that were designed to achieve greater efficiencies and more effective delivery of programme outputs?  That failure to take prompt action resulted in system-wide inefficiencies and unnecessary waste of valuable Member State resources. The United States, as a member of many governing boards, planned to address that matter in upcoming meetings of those organizations.

Noting that the Unit was carrying out four system-wide reviews as part of its 2007 programme of work, coupled with another three reviews on common services, he encouraged the Unit to continue to focus its energies on system-wide reports in the future.  He welcomed the Unit’s ongoing efforts to increase coordination and improve information-sharing with other oversight bodies within the Organization.  He also commended the Unit’s efforts to improve its website, create an electronic documentation and information centre with hyperlinks to documents from each participating organization, improve its working methods and procedures, and make its reports more user-friendly and concise.

In its budget proposals for 2008-2009, the Unit was requesting a conversion of two General Service posts to Research Officer posts at the P-3 level to increase the professional capacity of the Unit and facilitate the timely and effective completion of its projects, he continued.  He invited Chairperson Wynes to comment on that request.  The United States also sought further clarity on the Unit’s efforts to recruit an investigation and inspection officer, as the first step towards creating an in-house investigative capacity.  How would the investigation function complement and/or differ from investigations currently carried out by internal oversight functions within the United Nations system?  What specific types of investigations and inspections would the Unit conduct and how would the duties of the investigation and inspection officer differ from those of other Unit professional staff?

YURIY SPIRIN ( Russian Federation) emphasized the Unit’s special place in the United Nations system as the only independent external oversight body, and said that it must be constantly and specifically involved in the search for management improvements, including possible system-wide solutions aimed at saving resources.  The Russian Federation attached great importance to the improvement of the Unit’s functioning and effectiveness and expected from the Unit an aggressive approach in identifying the weak links in management.

Bearing in mind the considerable amount of work conducted by the Unit in its review of the management and administration within various United Nations bodies, he said it would be advisable to conduct such a review of the United Nations Secretariat, as well.  He also drew the Committee’s attention to the importance of the timely submission of reports on current and urgent subjects.  For instance, the Unit had produced a report on staff mobility, which was issued after the Assembly had adopted relevant decisions.  Had the report been submitted earlier, those decisions might have been different.

In conclusion, Ms. WYNES, the Unit’s Chairperson, referring to the statement by the United States and why it has taken so long for respective organizations to act on recommendations, said that agencies needed to develop systems for implementation.  Further, delays were also related to the timetable of when reports would be considered.

Regarding why it sometimes took two or more years for organization to take action, she said that the Unit’s reports were only dealt with once a year, but organizations met at various times.  Again, she said varying timetables often caused delays in implementation.  Also, once recommendations were accepted, multiple steps were needed to move into the implementation phase itself.  She said she was pleased to see the United States on governing boards and bodies for upcoming meetings.

Regarding the budget and the conversion of the P-2 and P-3 positions, she said the proposal, which was supported by the Secretariat, would help to alleviate the problem of conflicting timeframes.  She emphasized that the issue was very important to the Unit and said that the change would help to increase output.  She urged the Committee’s support.

With respect to investigations, she noted that the Unit had the issue in its mandate.  The intent was to focus on gaps faced in smaller agencies, which did not have investigative capacity.  Also, investigative abilities and expertise would distinguish those positions from other research posts.  She mentioned that the World Intellectual Property Organization (WIPO) had conducted their own internal audit, because the Joint Inspection Unit did not have the capacity or the resources.  She, therefore, recommended increasing the Unit’s capacity.

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For information media • not an official record