Concerned by Cost Overruns of Umoja, Group of 77 and China Seek More Information in Fifth Committee on Strategic Outlook, Longer-Term Improvements, Investments
The Group of 77 and China today expressed concern in the Fifth Committee (Administrative and Budgetary) about cost overruns for Umoja, the UN’s enterprise resource planning system, and requested the Secretariat elaborate on its strategic outlook and the longer-term improvements and investments foreseen until 2030.
“Despite the progress made so far, there exist over-expenditures in certain areas. Therefore, we look forward to accurate information on the increase in $1.4 million of the total cost of ownership of Umoja to 2030, the full extent of benefits realization and further details on Umoja-related resources for 2024,” said Diosdado Hernandez (Cuba), speaking on behalf of the group. He also sought information on the revised funding model for the Enterprise Resource Planning Solution Division to ensure that the project remains cost-effective and transparent.
Concurring with the Advisory Committee on Administrative and Budgetary Questions (ACABQ), he said any proposal for a revised apportionment of Umoja-related resources should have a clear methodological basis and justification as well as a commensurate impact on the scalability of resources. This is particularly pertinent in view of the downsizing and closure of peacekeeping operations — including the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA), set the close by year’s end.
Umoja is a key element of the UN’s administrative reform and modernization. Its major upgrade to SAP ERP 6.0 Enhancement Package 8 (EHP8) must be done with due care and in total compliance with the Secretariat's 2019 cybersecurity action plan, he said, stressing that “with the circulation of personal and organizational data, it is only right that Umoja is equipped with a strong capability to counter threats to its infrastructure, especially after the compromise of the system's security earlier this year”. Further, the intellectual property rights to the platform and the solutions it provides must remain with the Organization.
Introducing the Secretary-General’s annual progress report on Umoja’s functioning and development (document A/78/505), Sunitha Korithiwada, Director of the Enterprise Resource Planning Solution Division of the Department of Management Strategy, Policy and Compliance, said the Umoja upgrade will enable the Organization to unlock new features and functionalities to significantly improve its user experience. Her Division continues to implement advancement of Umoja Analytics, continuous improvement of Umoja applications, and upgrading and maintaining of the system’s security and infrastructure.
The major Umoja upgrade to EHP8 and the advancement of Umoja Analytics — particularly the Member States Portal and the deployment of Umoja Self-Service Analytics — have been the focus during the past year. She noted her Division’s considerable progress in closing open audit recommendations which, concerning the strategic plan for Umoja, is setting the stage, through the upgrade to EHP8, to enable the system to continue functioning and be fit for purpose until 2030.
“Longer term improvements will be addressed after EHP8, and will be included in future capital investment plans, programme budget proposals, and Umoja progress reports”, she stressed, further noting the Organization’s commitment to supporting Member States with the Umoja Analytics portals. The Division will continue to work with its partners in the Secretariat to enhance the portals and identify opportunities to develop new portals based on Member States’ needs.
Welcoming the Advisory Committee’s remarks on user outreach relating to Umoja improvements, the clearance of the production support ticket backlog, and the importance of implementing outstanding oversight body recommendations, she assured of her Division’s continued work in these areas with business teams and the Office of Information and Communication Technology as needed, adding that since 2021, Umoja costs have been maintained at the minimum needed to sustain the system with the Secretariat remaining fiscally responsible in the execution of the Umoja strategy, including the implementation of the major upgrade to EHP8, within existing resources.
Abdallah Bachar Bong, Chair of ACABQ, introduced its related report (document A/78/7/Add.25), noting that a clear long-term strategic plan for the Umoja system — including within the scope of the Organization’s revised information and communication technology strategy — is key to comprehensively assess future improvements and investments and their related costs. ACABQ expects that future progress reports will improve in these areas, and lessons learned and the benefits of ongoing improvements should inform future Umoja developments and be reported regularly to the General Assembly. Underscoring the importance of implementing recommendations of oversight bodies, he requested the Secretary-General to include a summary of these implementations in progress reports.
On the total cost of ownership of Umoja to 2030 with overall increase of $1.4 million driven mostly by the system’s increased maintenance costs, he recalled prior recommendations, trusting that increases in costs, particularly those related to maintenance, will be contained as much as possible. More details on the methodology used to derive constituent costs, including indirect costs and those related to maintenance and training, should be included in the Umoja progress report which should centralize, with appropriate detail, all information on Umoja-related resources, including posts and non-post items. This is currently fractured among various Secretariat reports, he noted.
Regarding the system’s major upgrade to the SAP ERP 6.0 EHP8, the Advisory Committee would like more clarity on the upgrade’s total cost and the methods used to contain costs within existing resources. Noting the Secretary-General’s plan to maintain an annual progress report on Umoja which does not include a revised proposal for the financing model for the Enterprise Resource Planning Solution Division and related costs and services, he said ACABQ expects more clarification on the chosen reporting approach and the financing options under consideration.