Press Conference on Financial Situation of United Nations

 

During a Headquarters press conference this afternoon, Angela Kane, Under-Secretary-General for Management, and United Nations Controller, Jun Yamazaki, presented a mixed picture as they outlined the Organization’s financial health, its proposed budget, and recent reform and management initiatives

Ms. Kane, who briefed the General Assembly’s Fifth Committee (Administrative and Budgetary) last Friday (see press release GA/AB/3921), told correspondents today that cash positions were projected to be positive at year-end for all the United Nations funds, though the final outcome would depend on last-quarter contributions from Member States, including major contributors. 

She said that at $2.1 billion, unpaid peacekeeping assessments showed a decrease of some $780 million, compared with the end of 2008, reflecting reduced amounts owed for peacekeeping by major contributors, as well as the lower level of assessments issued for the current peacekeeping fiscal year, pending the approval of a new scale of assessments for 2010.

However, while unpaid assessments had dropped for peacekeeping, there had been increased deficits for the regular budget, the Tribunals and the capital master fund, she said.  Further, when measured against last year, there were more Member States that had not met their obligations in full.  Unpaid assessed contributions currently stood at $3.1 billion.  That amount included $830 million for the regular budget, $2.1 billion for peacekeeping, $63 million for the Tribunals and $86 million for the Capital Master Plan.

Ms. Kane said that 22 Member States had paid all their assessments in full as of 20 October:  Australia, Austria, Azerbaijan, Canada, the Congo, Croatia, Finland, Germany, Iceland, Ireland, Italy, Liechtenstein, Monaco, New Zealand, Niger, the Philippines, Singapore, Slovakia, South Africa, Sweden, Switzerland and Tajikistan.  In addition, 123 States had paid their regular budget dues in full.

Regarding the international criminal Tribunals, she said assessments for those courts had been somewhat higher in 2009 than in 2008, and the amount outstanding was higher by $10 million.  The number of Member States paying their assessments for both Tribunals in full by 20 October was 84, 13 fewer than at the same time last year.

The total $1.9 billion budget of the Capital Master Plan (CMP) had been approved in December 2006, she continued.  As of 20 October, payments totalling some $1.1 billion had been received against assessments due and payable, with $86 million still outstanding.  In addition, a number of States that had not opted for one-time payments had nevertheless made advance payments.  In all, she said 119 Member States had paid their CMP assessments in full as of 20 October.

Regarding the budget for 2010-2011, she said that considering the world economic and financial climate, the Secretary-General’s $4.89 billion budget proposal represented an increase of only 0.5 per cent -- $22.4 million -- over the appropriations for 2008-2009.  Prepared on the basis of a preliminary $4.87 billion budget outline, the proposals reflected the main priorities of the Organization, as set out in the strategic framework for the period 2010-2011.

The budget reflected a thorough analysis and review of resources and activities, with extensive consultations with programme managers to ensure the optimal utilization of resources, she said.  Some of the priorities set by the General Assembly had contributed to the budget increase, including those related to the funding of the Peacebuilding Support Office, strengthening the Office of the High Commissioner for Human Rights, new initiatives to strengthen the rule of law activities and a new administration of justice system, internal oversight and strengthening the development pillar and the Department of Political Affairs.

The proposal included $829 million for special political missions and a one-time provision of $52.7 million in connection with the adoption of the General Assembly human resources management resolution last December, which had come in effect on 1 July this year.  Following a preliminary re-costing for inflation, the proposed budget amounted to some $5.06 billion at preliminary 2010-2011 rates.

On human resources, she said that as of 1 July, new contractual arrangements had been adapted to the changing operational needs of the United Nations, building the basis for an integrated Secretariat with the conditions of service that offered increased job security and equity of treatment of staff.  The elements that the Assembly was still considering related to eligibility requirements, the role of the performance appraisal system and procedures for granting and terminating continuing contracts.  Among other things, it was also important to look at the financial and management implications of granting continuing contracts to staff. 

Regarding the Enterprise Resource Planning (ERP) system, which had been named "Umoja" –- “unity” in Swahili -- she said that taken together, the Organization’s regular and peacekeeping budgets amounted to about $10 billion, but the United Nations did not have the tools to properly handle that kind of funding.  The ERP system was a unique opportunity to build an integrated global information system for the Secretariat.  Umoja would represent a revolutionary step in handling the Organization’s human, financial and material resources.  It would also increase transparency and accountability, and link results to the use of resources. 

Responding to numerous questions, which ranged from the effects of dollar fluctuations on the budget to the Organization’s hiring practices and new carpets on the Secretariat’s 23rd floor, Mr. Yamazaki said that the final amount of the budget to be adopted in December would incorporate adjustments for dollar exchange rate fluctuations.  Among possible add-ons to the 2010-2011 budget, he mentioned items on safety and security, some Enterprise Resource Planning-related expenses, business continuity management, and unfunded liabilities under after-service health insurance.

Ms. Kane said the budget outline, which had been presented to the Assembly last autumn, had been quite transparent in providing the list of items that had not been included, because action was pending on certain issues.  For example, in connection with safety and security, it was necessary to wait until the new Under-Secretary-General came up with a new strategy.  There were also a number of issues, for example, the outbreak of H1N1 flu, which had to be addressed “in a major way”.  It was also important to note that while the budget was presented in dollars, many expenditures were made in non-dollar denominations.

Regarding the composition of the Secretariat, she said that in 1949, the Organization had had 1,549 staff members, two thirds of whom worked in New York. Now, the United Nations had just under 40,000 staff, with only 12,236 people working at Headquarters.  About 34 per cent of staff -- including 20 per cent of Under-Secretaries-General and Assistant Secretaries-General -- was female.

To another question, she replied that the Organization’s oversight bodies, including the Office of Internal Oversight Services (OIOS), Joint Inspection Unit and Board of Auditors, made about 2,300 recommendations each year.  The Department of Management carefully monitored their implementation.  Most recommendations were implemented within the first year.

To questions about the Enterprise Resource Planning system, she said that $20 million for the system had only been allocated in March, and now it was difficult to fulfil the schedule, which had been elaborated during the main part of the Assembly’s sixty-third session.  It was also important to remember that the budget estimate that had been made last year had been a preliminary one.  With many systems to be used in the field, both the Department of Management and Department of Field Support were fully behind the project and would like to develop it faster than it was going.

On another aspect, she said that International Public Accounting Standards (IPSAS), which were to be introduced at the United Nations by 2010, “cannot happen, unless we have ERP”.  Right now, IPSAS implementation was likely to take place at the end of the ERP process in 2012. 

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For information media • not an official record