Secretary-General Unveils $5.57 Billion 2016-2017 Programme Budget to Fifth Committee, Continued Use of Recosting Draws Mixed Reviews from Delegates
The Fifth Committee (Administrative and Budgetary) today heard United Nations Secretary-General Ban Ki-moon formally unveil an initial budget proposal of $5.57 billion for the 2016-2017 budget cycle that begins 1 January 2016. The proposal was down 1.6 per cent, or $90.8 million, from the appropriation for the current two-year budget cycle that ends in December and up $10.2 million, or 0.2 per cent, from the budget outline figure set by the General Assembly nearly a year ago.
Mr. Ban said the 0.2 per cent increase over the Assembly’s budget outline figure resulted primarily from adjustments made to accommodate Assembly decisions for Umoja, the Organization’s new enterprise resource planning system that is being rolled out this year.
“In formulating the proposal before you, I continued to challenge my senior managers to find new and better ways of delivering mandates more effectively and efficiently,” the Secretary-General told the Committee. “I urged them to rethink our business practices and embrace innovative synergies.”
Compared to the current budget, the 2016-2017 proposal included a net decrease of 56 posts, primarily related to the freezing of posts. The budget proposal also included a preliminary recosting of $125 million, which combined with the $5.57 billion budget proposal, would bring the regular budget requirements to $5.69 billion.
The Secretariat’s use of recosting to adjust the budget for currency exchange rates, inflation and other unexpected costs again provoked contention among Member States. Ecuador’s representative, for example, speaking on behalf of the Community of Latin American and Caribbean States (CELAC), said recosting was essential as it ensured the Organization’s planned activities were not affected by currency fluctuations, inflation and other factors.
South Africa’s representative, speaking for the “Group of 77” developing countries and China, viewed recosting as a fundamental element of the budget methodology agreed to by Member States and said enough time had been devoted to the issue during previous sessions. “We sincerely hope that we can put this discussion behind us and focus our discussions in providing the Organization with the adequate resources for the implementation of its mandates,” said South Africa’s representative.
Yet the speaker for the United States continued to regard the absence of a budget provision for so-called recosting as troubling. Many international organizations operated in uncertain financial environments yet they managed their budgets each year by realigning their priorities, rather than through recosting. “When we pass a budget in December, we should expect each and very manager within the Secretariat to live within the budget,” she said. “The practice of recosting undermines the very principle of budget discipline and must be abolished.”
The representative of the European Union Delegation urged the Secretary-General and his senior managers to adhere to the current 2014-2015 budget level of $5.53 billion, as agreed by the Assembly in December 2013. It was crucial to move beyond incremental budgeting. When Member States adopted resolutions with budget implications, managers had to redeploy and reprioritize resources and use information and communications technology, including Umoja and the new Global Service Delivery Model.
Carlos Massieu, Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced that body’s related report. The Advisory Committee urged the Secretariat to go beyond incremental budgeting and evaluate all resource requirements to deliver mandates and carry out programmes. ACABQ’s recommendations included an overall reduction of $54.8 million distributed across a number of budget sections.
Fifth Committee Chairman Durga Prasad Bhattarai (Nepal) drew delegates’ attention to the Secretary-General’s ninth progress report on implementation of projects financed from the Development Account and the Independent Audit Advisory Committee’s report on the internal oversight: proposed programme budget for the biennium 2016-2017.
Gerard Biraud, Inspector of the Joint Inspection Unit, introduced the Secretary-General’s note transmitting the Unit’s report on Records and Archives Management in the United Nations. Kenneth Herman, Senior Adviser on Information Management Policy Coordination of the Secretariat of the United Nations System Chief Executives Board for Coordination, introduced the Secretary-General’s note transmitting his comments and those of the Board on the Unit’s report.
The President of the General Assembly, Mogens Lykketoft (Denmark), also addressed the Fifth Committee this morning and noted its crucial tasks, which helped the Organization deliver its mandates on international peace and security, human rights and development. He urged the Fifth Committee to maintain the momentum of negotiations carried out earlier this year and to keep improving its working methods as it concluded its work, particularly on the budget, in a timely manner.
Also speaking at today’s meeting were representatives of the United Republic of Tanzania (on behalf of the African Group), Jamaica (on behalf of the Caribbean Community (CARICOM), Switzerland (also on behalf of Liechtenstein) and Japan.
The Committee will reconvene on Tuesday, 13 October, at 10 a.m. to resume its discussion of the proposed 2016-2017 budget and begin discussions on the Office of Internal Oversight Services (OIOS) activities and the Independent Audit Advisory Committee’s 2014-2015 annual report.
Statement by General Assembly President
MOGENS LYKKETOFT (Denmark), President of the General Assembly, stressed the important role of the Fifth Committee (Administrative and Budgetary) by noting that the body carried out tasks crucial to the overall functioning of the United Nations and to the Organization’s work across the three main areas: international peace and security, human rights and development. In addition to the budget, the Committee would, among other things, address the scale of assessments and review the common system compensation package. The policy implications of the Secretary-General’s recent report on the review by the High-Level Independent Panel on Peace Operations required the attention of the Committee, which would also consider financial implications arising from the Addis Ababa Action Agenda and the 2030 Agenda for Sustainable Development.
As a former finance minister, he understood how complex and challenging budget negotiations were, he said. Last year, the Committee demonstrated its ability to effective and expeditiously deliver on the United Nations response to the Ebola emergency. Negotiations in the March and May sessions this year were also held in good spirit. That momentum must be kept. It was also important to continue improving the Committee’s working methods. “The critical and complex issues on the Committee’s agenda will require each and every one of you to work proficiently and tirelessly to reach a timely consensus,” he said, calling for unity, a spirit of compromise, and a timely conclusion of the work, particularly on the budget.
Proposed Programme Budget for Biennium 2016-2017
BAN KI-MOON, United Nations Secretary-General, said the proposed programme budget for the biennium 2016-2017 (document A/70/6) supported the implementation of the priorities set forth in Assembly resolution 69/264 and encompassed a vision and commitment to budget discipline and strict financial management. “In formulating the proposal before you, I continued to challenge my senior managers to find new and better ways of delivering mandates more effectively and efficiently,” the Secretary-General told the Committee. “I urged them to rethink our business practices and embrace innovative synergies.”
Mr. Ban said the Secretariat had presented a budget outline of $5.74 billion to the Assembly, which then invited him to prepare a 2016-2017 proposed programme budget using a preliminary estimate of $5.56 billion. For the biennium 2016-2017, he proposed a budget level of $5.57 billion, before recosting. That amount was 1.6 per cent, or $90.8 million, below the appropriation for the current biennium and was $10.2 million, or 0.2 per cent, above the budget outline figure set by the Assembly. The increase of 0.2 per cent over the budget outline figure was primarily due to adjustments necessary to accommodate Assembly decisions on Umoja, the Organization’s enterprise resource planning system.
The 2016-2017 proposal reflected a net decrease of 56 posts compared to the current budget, primarily related to the freezing of posts, he said. The budget included a preliminary recosting of $125 million, which combined with the $5.57 billion proposal, would bring the regular budget requirements to $5.69 billion. Also included was a provision related to peace and security of $1.12 billion for special political missions that were expected to be extended during the biennium. That reflected a reduction of $120 million compared to the amount proposed in the budget outline. “We have reached a critical moment in shaping the future we want for our children and succeeding generations,” said the Secretary-General, referring to the importance of the Addis Ababa Action Agenda, the 2030 Agenda and the upcoming climate agreement in Paris. “Together these actions can help forge a new global development compact that pursues economic growth, human dignity and environmental sustainability.”
The budget proposal did not yet reflect any possible financial implications required for the Organization to help Member States achieve those goals, he said. The Secretariat was working towards the most appropriate implementation framework for the United Nations system and the Secretariat. “I look forward to continuing our joint efforts to realize the aims of the Organization and meet people’s high expectations,” the Secretary-General said. “This is the start of a broader dialogue that will continue in the weeks to come.”
The Secretary-General introduced reports relating to its proposed programme budget for the biennium 2016-2017. Before the Committee was a Foreword and Introduction (document A/70/6 (Introduction)), as well as sections on Overall policymaking, direction and coordination (document A/70/6 (Sect. 1)), including sub-sections on General Assembly and Economic and Social Council affairs and conference management (document A/70/6 (Sect. 2)and Corr.1); on Political Affairs (document A/70/6 (Sect. 3) and Corr.1), including sub-sections on Disarmament (document A/70/6 (Sect. 4)), Peacekeeping Operations (document A/70/6 (Sect. 5)) and Peaceful Uses of Outer Space (document A/70/6 (Sect. 6)); on International justice and law — International Court of Justice (document A/70/6 (Sect. 7)) and Legal Affairs (document A/70/6 (Sect. 8) and Corr.1).
It also included sections on International cooperation for development — Economic and social affairs (document A/70/6 (Sect. 9)), Least developed countries, landlocked developing countries and small island developing States (document A/70/6 (Sect. 10)), United Nations support for the New Partnership for Africa’s Development (document A/70/6 (Sect. 11)), Trade and development (document A/70/6 (Sect. 12)), International Trade Centre (document A/70/6 (Sect. 13)), Environment (document A/70/6 (Sect. 14)and Corr.1), Human Settlements (document A/70/6 (Sect. 15)), International drug control, crime and terrorism prevention and criminal justice (document A/70/6 (Sect. 16)) and UN-Women (document A/70/6 (Sect. 17)and Corr.1).
Further sections were on Regional cooperation for development — Economic and social development in Africa (document A/70/6 (Sect. 18) and Corr.1), Economic and social Development in Asia and the Pacific, (document A/70/6 (Sect. 19)), Economic development in Europe (document A/70/6 (Sect. 20)), Economic and social development in Latin America and the Caribbean (document A/70/6 (Sect. 21)), Economic and social development in Western Asia (document A/70/6 (Sect. 22)) and Regular programme of technical cooperation (document A/70/6 (Sect. 23)); on human rights and humanitarian affairs — Human rights (document A/70/6 (Sect. 24) and Corr.1), International protection, durable solutions and assistance to refugees (document A/70/6 (Sect. 25)), Palestine refugees (document A/70/6 (Sect. 26)) and Humanitarian assistance (document A/70/6 (Sect. 27)).
Additional sections were on Public Information (document A/70/6 (Sect. 28), Corr.1 and Corr.2); on Common support services — Management and support services (document A/70/6 (Sect. 29)), Office of the Under-Secretary-General for Management (document A/70/6 (Sect. 29A) and Corr.1), Office of Programme Planning, Budget and Accounts (document A/70/6 (Sect. 29B)), Office of Human Resources Management (document A/70/6 (Sect. 29C) and Corr.1), Office of Central Support Services (document A/70/6 (Sect. 29D)), Office of Information and Communications Technology (document A/70/6 (Sect. 29E)), Administration, Geneva (document A/70/6 (Sect. 29F) and Corr.1), Administration, Vienna (document A/70/6 (Sect. 29G)) and Administration, Nairobi (document A/70/6 (Sect. 29H)); and on Internal Oversight (document A/70/6 (Sect. 30)).
Section were also included on Jointly financed administrative activities and special expenses — Jointly financed administrative activities (document A/70/6 (Sect. 31)) and Special expenses (document A/70/6 (Sect. 32)); on Capital expenditures — Construction, alteration, improvement and major maintenance (document A/70/6 (Sect. 33)); on Safety and security (document A/70/6 (Sect. 34)); on Development Account (document A/70/6 (Sect. 35) ; and on Staff assessment (document A/70/6 (Sect. 36)); as well as Income Section 1, 2 and 3 (documents A/70/6 (Income sect. 1), A/70/6 (Income sect. 2) and A/70/6 (Income sect. 3)).
Introduction of Other Reports
CARLOS MASSIEU, Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), said the Advisory Committee’s report (document A/70/7) was the outcome of an extensive review of the Secretary-General’s proposal. The Assembly had invited the Secretary-General to prepare his proposed programme budget for 2016-2017 on the basis of a preliminary estimate of $5.56 billion. The Secretary-General’s proposals amounted to $5.57 billion before recosting, 0.2 per cent more than the level stipulated in the budget outline. After including preliminary recosting, the proposed level of resources totalled $5.69 billion, which exceeded the level of the revised appropriation for 2014-2015 by $34.1 million, up 0.6 per cent.
Noting that there appeared to be a high degree of “automaticity” in resource proposals that were repeated from one budget period to the next, he said the Advisory Committee had indicated there was a need to go beyond incremental budgets and evaluate all resource requirements to deliver mandates and carry out programmes. The Advisory Committee’s recommendations would entail an overall reduction of $54.8 million distributed across a number of budget sections. The information was included in Table 14 of the report. The recommended reductions included $13.7 million for resources proposed for the renovation of the Africa Hall at the Economic Commission for Africa (ECA). Regarding staffing, the Secretary-General proposed a net increase of 12 posts over the previous biennium made up of 82 posts for abolishment, offset by 38 proposed conversions from extrabudgetary resources and the establishment of 56 new posts.
Regarding the impact of Umoja on the 2016-2017 resource requirements, the Advisory Committee understood the Secretary-General was not yet ready to confirm the expected efficiencies and benefits stemming from the system’s implementation and that that was the rationale for the proposed full, or partial, freezing of 81 established posts in 2016-2017, he said. Yet the Advisory Committee affirmed that the authority to approve the freezing of posts rested with the Assembly, along with any changes during the biennium. The Advisory Committee recommended a small number of changes to the proposed list of post freezes where the link to Umoja was not clear. Regarding travel resources for staff, the Advisory Committee noted that budget proposal included a 10 per cent reduction, or $4.4 million, across all offices and departments. The Advisory Committee believed significant savings should have been realized before the 2016-2017 session as measures to limit travel requirements dated back to the sixty-fifth session. It repeated other concerns respecting travel management, including the need for good data pertaining to travel patterns, costs and the impact of policy changes.
DURGA PRASAD BHATTARAI (Nepal), Fifth Committee Chair, drew attention to the following reports: the Secretary-General’s report on “Implementation of projects financed from the Development Account: ninth progress report” (document A/70/97) and the Independent Audit Advisory Committee’s report on “Internal oversight: proposed programme budget for the biennium 2016-2017” (document A/70/86).
GERARD BIRAUD, Inspector of the Joint Inspection Unit, introduced the Secretary-General’s note transmitting the Unit’s report on “Records and Archives Management in the United Nations” (document A/70/280), noting that the report featured a “sad diagnosis” of the status of records and archives management at the United Nations, which was far from fulfilled, with institutional memory degenerating.
Six recommendations had been made, with four of them directed at the Secretary-General and each of the executive heads of the United Nations entities, and the last one directed at Member States. Digital preservation was a challenge to be addressed urgently and the Umoja system needed to be integrated in records and archives management as a basic component.
KENNETH HERMAN, Senior Adviser on Information Management Policy Coordination, Secretariat of the United Nations System Chief Executives Board for Coordination (CEB), introduced the Secretary-General’s note transmitting his comments and those of the Board on the Joint Inspection Unit’s report (document A/70/280/Add.1).
Each organization was approaching information management in a holistic manner, including elements beyond just records and archiving, he said. While a common approach might be helpful in some areas, each organization needed to address the challenge within its own environment. Regarding the recommendations contained in the report, organizations were generally supportive. The overall consensus was that the proposals provided a useful road map for improvement in records and archives functions.
Statements
KAREN LINGENFELDER (South Africa), speaking on behalf of the “Group of 77” developing countries and China, said recosting was a fundamental element of the budget methodology agreed to by Member States and the Group was satisfied with the amount of time devoted to this issue during previous sessions. “We sincerely hope that we can put this discussion behind us and focus our discussions on providing the Organization with the adequate resources for the implementation of its mandates.” She expressed the Group’s deep concern over the Secretariat’s creative interpretation of Assembly resolution 69/264 on the budget outline to carry out a series of arbitrary cuts. That same text included two very important issues that the Secretariat seemed to have ignored. Firstly, that the budget outline was a preliminary estimate of resources, and secondly, the budget proposal should reflect resource levels that corresponded with agreed mandates for their full, efficient and effective implementation.
The Group was concerned that the Secretary-General had decided to freeze a considerable amount of posts to attain so-called “efficiencies” and “further reductions”, she said. It did not understand why freezing posts that had been proposed by the Secretary-General and approved by the Member States to give the Organization the right tools to deliver its agreed mandates were now being frozen by the same Secretariat that requested them. Many of the freezes were unjustifiably based on the expected benefits from Umoja. Umoja was a massive project that, while claiming it would reduce costs, was requesting more than $14 million from the 2016-2017 budget, in addition to the significant resources already claimed from the past and present biennium. After reviewing the seventh progress report on Umoja, the Group noted there was still no concrete benefit realization plan despite the Assembly’s repeated calls.
Turning to 2030 Agenda, she expressed the Group’s belief that Member States had to provide the United Nations with the adequate resources it needed to perform its role as the key enabler of that new development agenda. “We have serious doubts, however, on whether the current budget provides the United Nations with the appropriate means needed for such an ambitious feat,” she said. As stated two years ago, the Group believed the Organization was facing a governance crisis, whereby legislative bodies approved mandates and set priorities, and voluntary contributions were often used to bend the priorities towards specific mandates. There were two classes of mandates, the privileged ones that benefited from the constant flow of resources from assessed contributions and voluntary assistance by donor countries, and the neglected ones, which were constantly underfunded and “scrambling for a few crumbs from the regular budget”, she said. The Group firmly rejected that double standard.
JUSTIN KISOKA (United Republic of Tanzania), speaking on behalf of the African Group, said that the Group was interested to learn how the budget proposal was designed to address African challenges. The Group was deeply concerned that the continuation of unjustifiable across-the-board resource reductions might jeopardize mandate delivery in areas of key interest to Africa, such as development. The approach of negative budget growth did not take into account the “real changes” and additional mandates of the Organization. Expressing deep concern about reductions in the number of post and non-post resources in important areas, including development for Africa, maintenance of international peace and security, effective coordination and humanitarian assistance, disarmament, drug control, crime prevention and combating international terrorism, he sought clarification on how mandates in those areas would be implemented with such reductions.
The Group would focus its examination on, among other things, political affairs, including disarmament, peacekeeping, mediation, conflict prevention; international cooperation for development, including support for Africa, least developed countries, landlocked developing States, and small island developing States; trade and development; women’s empowerment; and regional cooperation in the areas of economic and social development. He also sought an update on how the budget proposal factored in implementation of the “forgotten” mandate related to the financing of the Programme of Assistance in the Teaching, Study, Dissemination and Wider Appreciation of International Law. The Group would carefully examine staff changes, including proposed abolishment of many junior posts to justify senior posts through reclassification and other measures. He also sought an explanation for the delay in the recruitment of the head of the United Nations Office to the African Union and the impact of such a situation on mandate delivery. Lastly, he stressed that no changes should be made to the established budget methodology, procedures and practices or the Organization’s Financial Regulations and Rules, without prior review and approval by Member States.
AMÉRICA LOURDES PEREIRA SOTOMAYOR (Ecuador), speaking on behalf of the Community of Latin American and Caribbean States (CELAC), said it was essential to reach a balance between the Organization’s three main pillars: peace and security, development and human rights. The Community was concerned that the regular budget resources requested by the Secretary-General for section 24 “Human rights” included a 5.0 per cent reduction, compared with the revised appropriation for the 2014-2015 biennium. Assuring adequate resources for the development pillar was very important for CELAC and the Economic Commission for Latin America and the Caribbean (ECLAC) was a key player in the region’s development agenda. ECLAC was extremely concerned about the proposed cuts — 1.7 per cent less than the previous biennium at revised rates — earmarked for the Commission. The Community believed it was discriminatory and unfair that, for the third biennium in a row, the Commission was among the most affected by the proposed reductions as other departments maintained, or increased, their proposed budgets.
She emphasized the importance of ensuring adequate resources for the human rights pillar of the regular budget and reiterated its support for the work of the Special Representative of the Secretary-General on Violence against Children. CELAC remained concerned over the existing funding and backstopping arrangements of special political missions. Over the last decade, their budget had grown dramatically and distorted the regular budget. Those missions comprised a considerable share of the regular budget, but did not take into account the special responsibilities of the permanent members of the Security Council for maintaining international peace and security. It was urgent to review those arrangements. Turning to recosting, she said it was an essential part of the existing budget methodology as it ensured that planned activities were not affected by currency fluctuations and inflation. She urged the Secretariat and all Member States to strictly abide by the numerous Assembly decisions that stated that no changes to the established budget methodology, procedures and practices, or to the Financial Regulations and Rules, should be implemented without prior considerations and approval of the Assembly.
SHORNA-KAY RICHARDS (Jamaica), speaking on behalf of the Caribbean Community (CARICOM), said that valid questions remained as to whether the proposed budget, which reflected a reduction of 1.6 per cent before recosting, could prevent the full implementation of mandates. The Assembly should approve resources commensurate with mandates and there should be no arbitrary cuts for the sake of efficiency. The proposed budget, which was prepared prior to the conclusion of some important processes, such as the financing of the Addis Ababa Action Agenda and the forthcoming climate change agreement, did not reflect any additional requirements arising from those decisions.
The Community noted the planned extrabudgetary resources for small island developing States, she said. It also welcomed the preparation of the project to follow up implementation of the mandate to ensure mainstreaming of the Samoa Pathway - the outcome document of the historic Third International Conference on Small Island Developing States — as well as establishment of the global business network for those countries. Regarding regional commissions, it was the collective responsibility of Member States to provide adequate resources so that they could implement their core mandates without depending on extrabudgetary resources. The Community joined CELAC in expressing concern about the trend of decreasing resources allocated to ECLAC.
IOANNIS VRAILAS, representative of the European Union Delegation, urged the Secretary-General and his senior managers to adhere to the budget level of $5.53 billion for the current 2014-2015 biennium, as agreed by the Assembly in December 2013. As for the next two years, he stressed the need to go beyond incremental budgeting. All United Nations entities should ensure that when Member States decide to adopt resolutions with programme and budget implications, absolute priority must be given to redeploying and reprioritizing resources. That was only possible if managers were able to manage properly to achieve optimal results. Emerging challenges required new functions and mandates, which in turn required a rethink of governance and management, using information and communications technology, including Umoja and the new Global Service Delivery Model.
The Union welcomed decisions to address the Organization’s growing personnel costs by removing obsolete posts, he said, urging the Secretary-General to conduct a comprehensive review of the staffing table, with a focus on the creation of more Professional and high-level posts, and the lack of entry-level posts. There was a need to increase the level of predictability of the budget. For new mandates, that entailed improved working methods, redeployment and reprioritization. But the issue of recosting remained a perennial problem. Despite progress made pursuant Assembly resolution 67/246 on the need to address the effects of inflation and currency fluctuation on the budget, the Union stood ready to address that issue for both 2014-2015 and 2016-2017 in a comprehensive way. A sounder basis to budget for such costs was imperative.
JURG LAUBER (Switzerland), speaking also for Liechtenstein, said that a major shortcoming of the current budgetary process was that Member States made decisions without considering the performance of the Organization’s programmes. Due to the lack of that important link between the allocation of resources and past performance, Member States were embroiled in micromanagement of resources, often getting involved in the discussion on the creation or abolishment of individual posts, instead of strategically guiding the Organization for clear future results. On the Umoja system, he was not entirely convinced by the rationale of the proposal to “freeze” posts if they were not needed now. The Committee tended to underbudget in certain areas, such as special political missions. As a result, Member States ended up with a final bill much higher than initially approved. That was not proper financial management. On peacekeeping, the best way to deal with conflict was to prevent it. Yet, the Organization did not invest enough in the promotion of human rights, conflict prevention and mediation capacities. His delegation would like to see a shift in that regard in future budget proposals.
HIROSHI MINAMI (Japan) said his delegation was 100 per cent behind the Secretary-General’s effort to “do more with less”. He also expressed support for the proposal to freeze 81 posts as part of benefits realization of Umoja, while urging the Secretary-General to identify more posts that could be abolished without compromising the Organization’s ability to deliver its mandate. Although the proposed 2016-2017 budget slightly exceeded the budget outline agreed on in December, the Secretary-General had made efforts to observe the outline. Japan was more concerned with recosting and add-ons. The preliminary recosting for the 2016-2017 budget was estimated at $125 million. Many Governments and international organizations were managing exchange-rate fluctuations and inflation better. Although Japan supported the 2030 Agenda and reviews on the Organization’s peacekeeping and peacebuilding architecture, among other new initiatives, efforts should be made to absorb such add-ons.
ISOBEL COLEMAN (United States) said the constraints of a budget process by which the Committee continued to consider only the changes from one biennium to the next had led to a lack of strategic prioritization and prevented a long overdue impact assessment. It was frustrating that the political will to change the process remained elusive. “We cannot return to the days of unsustainable budget growth. We must continue the recent progress that has been made on promoting sustainable budget levels that balance Member States’ financial constraints with the need to ensure that the Organization has the means to carry out its mission,” she said. “The only viable United Nations is an affordable one.” Regarding Umoja, the United States was pleased to see the 2016-2017 budget proposed freezing the equivalent of 68 posts and viewed it as a “down-payment” on much deeper future reforms. “The potential efficiency gains of Umoja demand much bolder action than the freezing of just one half of 1 per cent of posts,” she added. She also noted specific reductions in budget proposals such as the 10 per cent reduction in staff air travel costs and a $30 million reduction in the cost of programme support. Yet the budget proposal was a work in progress with many unknown costs and potential add-ons.
To achieve true budget discipline over the biennium cycle, Member States must use existing tools and guidance to ensure the budgets stayed within approved levels, she said. Under Assembly resolution 41/213 additional resource requests had to be met either by a contingency fund or within existing resources by reprioritizing activities. Exceptions were reserved for extraordinary expenses, such as the recent United Nations response to Ebola. Yet the Committee was presented with new resource requirements almost as a fait accomplit and resolutions emanating from subsidiary bodies were simply turned into resource requirements without the necessary step of reprioritizing existing activities. As a result, budgets were driven upward by the hundreds of thousands of millions of dollars. “We must reassert the essential nature of an approved budget — that it is a ceiling not to be broached except in extraordinary circumstances,” she said.
The absence of a budget provision for so-called recosting was equally troubling for the United States, which took issue with the ongoing practice, she said. Every international organization operated in an uncertain financial environment. Yet many of them managed their budgets each year without recosting, by reprioritizing activities when necessary. “The UN Secretariat can do the same,” she said. In March, the Assembly asked the Secretariat to make the most accurate exchange rate forecast and to hedge those estimates by purchasing futures contracts. “When we pass a budget in December, we should expect each and every manager within the Secretariat to live within the budget,” she said. “The practice of recosting undermines the very principle of budget discipline and must be abolished.”