Use of Temporary Property Management Posts Faces Scrutiny as Budget Committee Debates Ways to Strengthen United Nations Assets Control
The use of temporary property management posts came under the scrutiny of the Fifth Committee (Administrative and Budgetary) today, as delegates discussed ways to strengthen assets control at the United Nations Secretariat.
Stephen Cutts, Assistant Secretary-General of the Department of Management’s Office of Central Support Services, said that substantial work had been done in developing a new property management framework, using interim resources. But those ad hoc arrangements were not sustainable in the long term, he said, stressing the need for adequate regularized resources in order to continue the level of work expected. In addition, the adoption of the International Public Sector Accounting Standards (IPSAS) prompted the Secretariat to develop new skill sets in order to attribute appropriate values to its assets.
He said that the implementation of IPSAS and other major administrative initiatives, such as the Umoja enterprise resource planning system, had brought a significant increase in scope and complexity of financial reporting, record keeping and management of the Organization’s diverse portfolio of assets. Those properties represented a major investment by Member States, and were currently estimated at $4.1 billion with the total inventory value at $393.3 million, excluding non-capitalized items and heritage assets that would still require to be managed.
The objectives of strengthening property management, he continued, were to ensure the efficient and effective use of those assets, to provide accurate and consistent reporting as required under IPSAS, and to protect Member States’ investments. The new property management framework supported the life cycle approach to managing real estate properties and focused on adequate stewardship and accounting for all assets. The Secretary-General intended to submit resource requirements as part of the relevant budget proposals for Headquarters, other offices, regional commissions and field missions.
Carlos Ruiz Massieu, Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), recommended that the vacant posts now diverted to support existing ad hoc arrangements for property management at Headquarters and other sites should be used for their intended purpose, or abolished.
He noted that administrative reforms, such as IPSAS and Umoja, had given the Organization the capacity to improve the management and reporting of its assets. Therefore, more detailed and analytical information on the Organization’s assets should be provided in the Secretary-General’s reports. The Advisory Committee also recognized the need to improve the weaknesses in property management that had been identified by the Board of Auditors. Should the Secretary-General move to strengthen those property management procedures, he should submit a proposal to the General Assembly with a clear business case, including justification for any new staffing resources.
Dayana Rios Requena, Bolivia’s representative, speaking on behalf of the “Group of 77” developing countries and China, said the Group was concerned that the Secretary-General had been circumventing intergovernmental scrutiny by funding some positions through vacancy management. The Group agreed with the Advisory Committee that if the Secretary-General moved to strengthen property management procedures, including structural changes, he should submit a proposal to the Assembly. The proposal should include a clear business case, including full justification for any new staffing requirements. The Group was disappointed that approved posts were being used for unintended purposes.
The Group was also concerned with the Organization’s weaknesses in asset management, both expendable and non-expendable property, and the deficiencies in asset disposal activities at liquidated missions, she said, stressing the importance of establishing sound asset management practices in order to support the use of IPSAS and improve financial information reporting. She also highlighted the need for the Secretariat to carry out the recommendations of the oversight bodies and the key programme tasks determined by the interdepartmental working group.
For details, delegates had before them the report of the Secretary-General on strengthening property management at the United Nations Secretariat (document A/69/400), introduced by Mr. Cutts, and the related report of ACABQ (document A/69/571), introduced by Mr. Massieu.
The Fifth Committee will meet again at 10 a.m. on Tuesday, 18 November, to take up issues related to human resources management.