Peacekeeping component

Expenditures (2001/02)

Apportionment (2002/03)

Proposed budget (2003/04)

Change

 Amount

Percentage

UNMIK

360 248.0

330 000.0

315 518.2

(14 481.8)

(4.4)

UNOMIG

25 284.6

31 705.8

30 958.5

(747.3)

(2.4)

UNMIBH

130 718.6

78 543.9

—

(78 543.9)

(100.0)

UNMISET

454 058.0

292 000.0

188 169.2

(103 830.8)

(35.6)

UNIKOM

48 635.7

50 573.2

53 979.1

3 405.9

6.7

UNFICYP

40 288.4

43 652.7

44 368.4

715.7

1.6

UNIFIL

130 911.0

112 042.5

91 752.4

(20 290.1)

(18.1)

UNDOF

34 422.9

38 991.8

40 212.9

1 221.1

3.1

UNAMSIL

617 646.4

669 476.4

520 053.6

(149 422.8)

(22.3)

MONUC

388 827.0

581 933.5

516 804.0

(65 129.5)

(11.2)

UNMEE

185 007.7

220 830.2

198 355.2

(22 475.0)

(10.2)

MINURSO

39 090.5

41 529.5

42 463.3

933.8

2.2

Subtotal, missions

2 455 138.8

2 491 279.5

2 042 634.8

(448 644.7)

(18.0)

UNLB

8 970.8

14 293.2

23 262.9

8 969.7

62.8

Support account

84 343.0

100 896.2

115 863.1

14 966.9

14.8

Total resources

2 548 452.6

2 606 468.9

2 181 760.8

(424 708.1)

(16.3)

The UNMIBH (also in document A/57/684) completed its mandate in December 2002 and is currently in liquidation.  In its report on its performance for 2001/2002, the Advisory Committee on Administrative and Budgetary Questions (ACABQ) (document A/57/773) makes recommendations regarding the liquidation of the Mission and proposes that the unencumbered balance of $9.28 million, as well as the amount of $5.74 million in other income and adjustments be credited to Member States in a manner to be decided by the General Assembly.

The liquidation of UNMIH, United Nations Support Mission in Haiti (UNSMIH)/United Nations Transmission Mission in Haiti (UNTMIH)/United Nations Civilian Police Mission in Haiti (MIPONUH), United Nations Mission of Observers in Tajikistan (UNMOT), United Nations Preventive Deployment Force (UNPREDEP) in the former Yugoslav Republic of Macedonia, United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES), and the UNPF has been completed.  The liquidation of the United Nations Observer Mission in Liberia (UNOMIL) and United Nations Assistance Mission for Rwanda (UNAMIR) will be completed by the end of March 2003.  Final performance reports for UNSMIH/UNTMIH/MIPONUH, UNMIH, UNPREDEP, UNTAES and the United Nations Operation in Somalia (UNOSOM) were submitted to the General Assembly at its fifty-sixth session.

The 2003/2004 budget for the support account for peacekeeping operations largely maintains the 2002/2003 resource level, as the 14.8 per cent increase ($14.97 million) is due mainly to changes in standard salary costs ($4.5 million) and the inclusion of posts for resident auditors ($3.8 million), which had previously been funded under individual peacekeeping mission budgets.  Other factors contributing to the increase in the level of resources for the support account include proposals for the establishment of a regional investigator capacity in Nairobi and Vienna ($1.9 million), additional posts at Headquarters to augment the guidance and support provided to peacekeeping missions ($2.3 million), and the upgrading of information and communication technology support

($1.6 million).

UNMIK’s proposed budget ($315.52 million) (the performance for 2001/2002 and budget proposal for 2003/2004 also presented in documents A/57/678 and A/57/679) represents a decrease of $14.5 million (4.4 per cent) due to the progressive development of the Kosovo Police Service, commensurate with a reduction in the authorized level of international police officers, as well as a reduction in the Penal Management Division as a result of turning over of some duties to Kosovar personnel.  Another factor in the changed requirements is transfer of some executive responsibilities to provisional self-government institutions.

Among the comments contained in the ACABQ report on UNMIK (document A/57/772/Add.5), is an observation that no convincing argument has been   presented to support the rapid expansion of the Mission’s information technology infrastructure. It is not appropriate for a mission that is downsizing to continue to automatically replace electronic data-processing equipment, utilizing the same benchmarks as active or expanding missions.  In view of downsizing, the Advisory Committee also sees no justification for procuring a large number of replacement vehicles. 

For 2001/2002, the ACABQ recommends that the Mission’s unencumbered balance of $39.75 million gross be credited to Member States in a manner to be determined by the Assembly, as well as other income amounting to some 423.87 million.  For 2002/2003, the Advisory Committee recommends approval of the Secretary-General’s request for $315.51 million.

For the UNOMIG (also in documents A/57/676 and A/57/677), the proposed budget of some $30,958,500 gross ($28,964,700 net), exclusive of budgeted voluntary contributions in kind in the amount of $18,600, shows a decrease of  $0.7 million (2.4 per cent) due, in part, to the procurement of fewer vehicles and lower requirements for facilities and infrastructure.  Responding to this proposal, the Advisory Committee, in its report (document A/57/772/Add.1), recommendsthat the amount of $30.7 million gross be approved for the maintenance of UNOMIG for the 12-month period beginning on 1 July 2003.  A small reduction in the recommended appropriation against the Secretary-General’s proposal is due to the fact that the ACABQ does not support several proposed posts and recommends against the requested resource growth of $79,700 for travel.  For 2001/2002, the Advisory Committee recommends crediting the unencumbered balance of $1.7 million gross and the other income and adjustments of $977,000 to Member States.

The proposed budget of $188.17 million for the United Nations Transitional Administration in East Timor (UNTAET)/United Nations Mission of Support in East Timor (UNMISET) (also covered in documents A/57/666 and A/57/689) represents a decrease of $103.8 million (35.6 per cent) as a result of downsizing the Mission and a projected withdrawal of the peacekeeping force by the end of June 2004, in accordance with the Secretary-General’s four-phase drawdown plan endorsed by the Security Council.  In a related report, the ACABQ (document A/57/772/Add.11) recommends crediting to Member States the unencumbered balance ($942,000) and interest and other income ($20.68 million) for 2001/2002.  It also recommends reducing the estimated budget requirements for 2003/2004 by $3.17 million, appropriating an amount of $185 million gross for that period.  However, this reduction does not take into account any future changes in the overall strategy currently being considered by the Security Council.

The amount of $91.75 million proposed for UNIFIL (also in documents A/57/662 and A/57/663) shows a decrease of $20.3 million (18.1 per cent) following the downsizing of the Force, including civilian personnel.  In a related report, theAdvisory Committee (document A/57/772.Add.6) recommends that the unencumbered balance of $5.7 million for 2001/2002, as well as interest and other income in the amount of $15.16 million be credited to Member States in a manner to be determined by the Assembly. 

As for the 2003/2004 budget proposal, the ACABQ believes that the estimated requirements of $91.75 million gross should be reduced by $1.75 million, recommending an appropriation of $90 million gross.  In particular, the Advisory Committee recommends against the request for a D-1 post for Deputy Force Commander and questions the need to provide redundant capacity, such as the spare satellite station equipment requested in the proposed budget.  It also proposes reducing the frequency of travel.

For UNAMSIL (also in documents A/57/680 and A/57/681), the proposed budget of $520.05 million represents a decrease of $149.4 million (22.3 per cent) due to the downsizing of the Mission in accordance with the Secretary-General’s drawdown plan endorsed by the Security Council and a higher number of mission staff recruited under appointments of limited duration.  [The ACABQ report on the Mission was not before the Committee at the opening of the resumed session.]

The proposal of $516.8 million for MONUC (also in documents A/57/682, A/57/683 and Add.1 and A/57/756) shows a decrease of $65.1 million (11.2 per cent) as a result of increased use of staff appointed under contracts of limited duration, higher vacancy rates for civilian personnel and lower requirement for equipment due to its acquisition in prior periods.  Also factored in the proposal is a reduction in air transportation requirements.  [The ACABQ report on the Mission was not before the Committee at the opening of the resumed session.]

The budget of $198.35 million for UNMEE (also in documents A/57/672 and A/57/673) also represents a decrease of $22.5 million (10.2 per cent) due to the anticipated completion of border demarcation and delimitation between the two countries by 2004; lower requirements for travel of military personnel; higher vacancy rates for civilian personnel; and higher numbers of mission appointees recruited under appointments of limited duration, as well as lower requirement for equipment due to its acquisition in prior periods.

In view of persistent under-expenditures experienced by the Mission, the ACABQ, in a related report (document A/57/772/Add.8), recommends reducing its estimated budget by $10 million (5 per cent) and appropriating an amount of  $188.4 million gross instead of the proposed $198.35 for the 2003/2004 period.  For 2001/2002, the Advisory Committee recommends crediting the unencumbered balance of $13.39 million and interest and other income in the amount of some $10.55 million for 2001/2002 to Member States.

Regarding UNIKOM (also in documents A.57.664 and A/57/665), the report states that its proposed budget of $53.98 million represents an increase of    $3.4 million (6.7 per cent) due to an increase in the rate of mission subsistence allowance; additional requirements for facilities and infrastructure, communications and information technology.  [The ACABQ report on the Mission was not before the Committee at the opening of the session.]

For UNFICYP (also in documents A/57/667 and A/57/677 and Corr.1), an amount of $45.67 million gross, inclusive of budgeted voluntary contributions in kind amounting to some $1.32 million, has been requested.  The proposal shows an increase of $0.7 million (1.6 per cent) due to the strengthening of the mission and upgrading of troop accommodations. In this connection, the ACABQ, in a related report (document A/57/772/Add.4) recommends that the General Assembly approve the appropriation of $43.8 million gross, including $20.53 million to befunded from voluntary contributions from the Governments of Cyprus and Greece.  In particular, the ACABQ does not support proposed establishment and reclassification of several posts and recommends better monitoring of personnel training. 

For the 2001/2002 financial year, the Advisory Committee recommends that the unencumbered balance of $730,600 gross, as well as the interest and other income in the amount of some $4.65 million be credited to Member States.  The ACABQ also comments on the problems that have arisen in connection with the application of results-budgeting methodology.  For example, it points out that expected accomplishments and indicators are at a high level of aggregation, even in the support component where there is room to be more specific.  The representatives of the Secretary-General acknowledged this weakness and agreed that in the next submission, the formulation would be more specific.

An increase of $1.2 million (3.1 per cent) is envisioned for the proposed budget of UNDOF (also in documents A/57/668 and A/57/688) ($40.21 million) due to the enhancement of the mission’s information technology infrastructure.  Analysing the mission’s financing, the ACABQ in a related report (document A/57/772/Add.7) recommends crediting to Member States their respective shares of the Mission’s unencumbered balance for 2001/2002 in the amount of $113,400 and income totalling some $2.36 million.  For 2003/2004, the ACABQ recommends reducing the proposed amount by $311,200, appropriating some $39.9 million for the maintenance of the Mission in the next budget cycle.   

The proposed budget of $42.46 million for MINURSO (documents A/57/674 and A/57/675) represents an increase of $0.9 million (2.2 per cent) due to the replacement of information technology equipment and partial replacement of the vehicle fleet.  In this connection, the ACABQ in its report (document A/57/772/Add.2) recommends crediting to Member States the unencumbered balance of $9.76 million and other income and adjustments of $2.53 million for 2001/2002.  In view of the Mission’s under-expenditure pattern and its questions regarding budgeting for staff costs, the Advisory Committee recommends that the amount of some $41.53 million be appropriated for the period of 2003/2004, instead of the requested amount.

As for the UNLB at Brindisi (also in documents A/57/671, A/57/670 and  Corr.1 and A/57/751), its proposed budget of $23.26 million shows an increase of $8.9 million (62.8 per cent) due to the maintenance and operation of uninterrupted year-round communication network; renovation of premises, supplies for maintenance, refurbishment and repair of equipment for the strategic deployment stocks; and office furniture and equipment for the training facility.

Commenting on the financial situation of the Logistics Base, the ACABQ (document A/57/772/Add.9) recommends that the Assembly approve the cost estimates for the Logistics Base in the amount of $22.21 million gross for the period from  1 July 2003 to 30 June 2004.  It notes that the estimated requirements of $16.17 million for operational costs reflect an increase of $8.22 million, or 103.1 per cent, compared with the apportionment for the current budget period. As shown in the budget report, the largest increases in operational costs fall under the budget lines “Communications” ($4.1 million), “Information technology”

($1.4 million), “Facilities and infrastructure” ($1.3 million) and “Miscellaneous supplies, services and equipment” ($1.1 million).  The Advisory Committee is not satisfied with the justification for the increases in resource requirements contained in the report and points out that, in some cases, the explanations are simply generic.  The ACABQ stresses the necessity of adequate explanation and justification for these resources and trusts that future budget submissions will reflect this requirement. 

In view of the support provided by the Logistics Base to the peacekeeping missions, as well as the funds and programmes and specialized agencies, the Advisory Committee does not object to the estimates for communications and information technology.  Nevertheless, in examining the budgets of individual peacekeeping operations, the Committee observed that technological innovations and improvements are largely implemented on an ad hoc basis.  It is essential for the field missions to prepare a plan for purchases of communications equipment, hardware and software on the basis of functional requirements.  A time frame for completion of communications or information technology projects should be clearly indicated.  The Communications and Information Technology Section could provide backstopping support on the basis of a comprehensive analysis of projected requirements; this should help to reduce the possibility of over-expenditure for the acquisition or replacement of communications equipment and information technology items.

Further, the Advisory Committee notes that the Logistics Base has emerged  as a global hub for communications and information technology support for peacekeeping.  Therefore, it requests a comprehensive examination of the merit of transferring to the Base of post and non-post resources of the support account earmarked for helping to meet the communications and information technology needs of peacekeeping operations, retaining at Headquarters only a few posts for policy and liaison functions.

Another important document before the Committee was a Board of Auditors report on United Nations peacekeeping operations (document A/57/5/Vol.II), which contains the financial statements of individual missions for the financial period ended 30 June 2002 and the audit opinion of the Board of Auditors. 

According to the document, the financial situation of the United Nations peacekeeping operations during the period from 1 July 2001 to 30 June 2002 has improved significantly, compared with that of the previous financial period, due in part to a large amount received from the United States in settlement of outstanding peacekeeping assessments.  Total unpaid assessed contributions are down by $1.1 billion, from $2.3 billion at the end of June 2001 to $1.2 billion as at 30 June 2002.  Available cash is now almost equal to liabilities, compared with a shortfall of over $1.3 billion at the end of June 2001.

Nevertheless, the failure of a number of Member States to pay their assessed contributions in full and on time continues to affect the Organization’s ability to fully meet its financial obligations. This has also necessitated borrowing from and among peacekeeping funds, while substantial amounts of obligations to Member States for reimbursement for troops and contingent-owned equipment continued to remain unpaid, due to a lack of available cash.  During the period under review, there was an overall increase in total expenditures of $199.2 million, or 8.4 per cent, mainly as a result of the increased deployment of military personnel at UNAMSIL and MONUC, the Board of Auditors states.

According to the report, the Board of Auditors has audited the United Nations peacekeeping operations at Headquarters, as well as two field missions funded from the regular budget, 13 missions funded from special assessed contributions, 11 missions in liquidation and the UNLB at Brindisi, Italy.  The Board also validated the financial statements for peacekeeping operations with special accounts for the financial period ended 30 June 2002 and conducted a special review at the request of the ACABQ.

Among the Board’s main findings are various instances of non-delivery and significant shortcomings in the performance of the contractor with respect to the provision of airfield services at MONUC, although no penalties were imposed on the contractor.

The Board found that approximately 44 per cent of the recommendations made by the Technical Cooperation Bureau of the International Civil Aviation Organization (ICAO) on the system of aviation managementin the Department of Peacekeeping Operations were not implemented.  Regarding the two major trust funds -- the Trust Fund to Support the Multinational Force Deployed in East Timor and the Trust Fund in Support of United Nations Peacemaking and Peacekeeping Activities -- the Board points out that they had balances of $77.4 million and $40.7 million, respectively, as at 30 June 2002.  The trust funds were inactiveand no further expenditure was expected from them under their current mandates.

The Board noted improvements in the management of non-expendable equipment and efforts to maintain more accurate records, which resulted in a significant increase in the level of write-offs.  However, it also observed instances of delays in the approval of property pending write-off and disposal.  There were delays in the write-off process at various missions.

Some $11.9 million in voluntary contributions receivablewere disclosed in the missions’ annual financial statements as at 30 June 2002.  Approximately

$6.4 million (54 per cent) of that amount relates to UNFICYP and has been outstanding for more than eight years.  Accounts payableamounting to

$32.7 million had shown no movement during the financial year under review and remained unpaid at year’s end.

The Board also remarks that results-based budgeting objectiveswere not precise and specific with respect to the circumstances of each mission.  Guidance in the development of measurable performance indicators and outputs may have been insufficient.

The Board’s main recommendations are that the Administration closely monitor the performance of service providers and impose penalties as appropriate; implement recommendations in respect of air safety management; regularize the excess level of the Peacekeeping Reserve Fund; close inactive trust funds; improve controls and processes to ensure complete and accurate custody and recording of non-expendable equipment; resolve outstanding receivables and payables; and implement the training plan that has been developed.

Also during the current session, the Committee is expected to take up the proposal related to the consolidation of accounts of all peacekeeping operations, which would entail preparation of a single resolution of the General Assembly on the financing of all missions, with each operation representing a section, as in the case of the regular budget.  In this case, assessments would be delinked from the continuation of Security Council mandates, and there would be only one peacekeeping assessment on Member States at the beginning of the peacekeeping budget cycle.  In his report on the feasibility of such course of action (document A/57/746), the Secretary-General points out that such practice is not compatible with current financial practice.  The document contains an analysis of a range of issues that would need to be taken into account should any consolidation be implemented.

In a related report, the ACABQ (document A/57/772) points out that de-linking of assessments from Security Council action on individual mandates may create complications for some Member States, which require such Council mandates before they can pay assessments.  In view of political considerations involved, the ACABQ states that it would be up to the General Assembly to provide further guidance on this matter.

On the general peacekeeping situation, the Advisory Committee welcomes the improvements in the cash position of the active missions, pointing out that, hence, the ability of the United Nations peacekeeping operations to meet their obligations has improved significantly, as compared with previous financial periods. 

The ACABQ also comments on the financial performance of missions for 2001/2002, saying that expenditures amounted to $2,548.5 million against appropriations of $2,773.3 million gross, leaving an unencumbered balance of $224.8 million, or 8.1 per cent of the appropriations.  While reasons for unencumbered balanced are given in various reports before the Committee, their high level reflects significant implementation difficulties.  The Advisory Committee has taken these balances into account when making its recommendations on budget requirements for 2003/2004. 

The Advisory Committee has noted that in a number of missions, large amounts of resources are regularly retained to meet obligations to vendors, staff and others.  Such retentions do not appear to have been determined after a vigorous verification exercise.  The Committee considers that the large amounts of unliquidated obligations, as well as savings regularly realized on prior period obligations, indicate a laxity in obligating funds and illustrate weaknesses in budget implementation and monitoring.  The Committee requests that efforts be made to address these problems.

Welcoming the initial efforts to streamline the budget presentation under the new results-based format, the ACABQ comments that the results-based budgeting exercise still appears to be primarily Headquarters-driven, however.  While the system remains relatively new, systematic training and coaching should be continued and more focused to ensure a coherent and comprehensive understanding and commitment to results-based budgeting in all the missions.

The Advisory Committee also recommends, among other things, reducing the number of expected accomplishments, indicators or achievements and plannedoutputs in the proposed budgets in order to facilitate monitoring and reporting.  While each mission is different, the attempt to have a uniform framework for all complex missions has led to anomalies in some missions where activities for internally displaced persons, public information, mine clearance and so on have all been grouped together under the political component.  For this reason, the Advisory Committee insists that the mandate implementation plan should constitute the framework for budget preparation and performance reporting.

Analysing budget proposals for 2003/2004, the Advisory Committee gives recommendations on various aspects on peacekeeping, ranging from management of military and police personnel, contingent-owned equipment arrangements and resident auditors to the insurance of vehicles.  In general, it believes that missions should have greater authority in the hiring and management of staff.  Missions also need to plan and manage more carefully the departure of staff, particularly heads of services.  It is poor management to allow staff in critical services to leave missions before ascertaining whether they can be replaced promptly.  Also recommended in the report is increased collaboration among missions and between the missions and Headquarters on that important issue, as well as staff mobility between Headquarters and missions.

The Advisory Committee also expresses concern over weaknesses in    inventory management, stressing that they are exacerbated by apparent lack of accountability, vacancy situations and rotation of staff, as well as difficult operating conditions.  At the same time, the report praises the efforts of the Department of Peacekeeping Operations and the field missions in developing communication and information technology.  As projects in that field involve substantial capital expenditure, the ACABQ recommends undertaking those requirements after comprehensive analysis of field missions’ functional requirements.  Moreover, a clear time frame for completion of such projects should be indicated in the proposed budget submissions.

The report further addresses the potential for duplication of databases, requesting a review of various systems in order to make sure they are compatible and interactive.  In the context of peacekeeping budgets for 2004/2005, the Secretariat should evaluate the const-benefit and productivity results of the Peacekeeping Department information technology systems implemented by the end of 2003.

Noting that the estimates for official travel for 2003/2004 amount to some $13.6 million, the Advisory Committee notes that individual missions’ budgets often gave inadequate and misleading reasons for increased requirements.  It points out that the justification citing the need “to increase efficiency and effectiveness” is not sufficient and recommends increased use of such alternative methods of communication as videoconferencing.

On training, the Advisory Committee comments that staff members in some missions may be receiving multiple training courses that are not related to their areas of responsibility, and makes recommendations to address this problem.  The ACABQ reiterates that there is a need for better planning for training of personnel and subjects covered in the training programmes.  It has also called for the Secretariat to develop a methodology and monitoring system to evaluate the results of training in peacekeeping and related areas and make it more mission-specific.

By his note contained in document A/57/78, the Secretary-General transmits to the Assembly a report of the Joint Inspection Unit (JIU) on reforming the field service peacekeeping personnel.  The Inspectors explain the need for such a reform by the changes that have occurred over the last decades in the nature, mandates and management of peace operations.  The original composition of the Field Service in terms of occupational groups, qualifications and skills no longer matches the requirements of today’s peace operations.

The Inspectors present seven recommendations on the ways to improve the Field Service, stating that proposals in this respect should include a clear definition of the occupational groups and number of individuals needed in each mission, as well as criteria for hiring field staff.  As a first step, the Field Administration and Logistics Division should the Department of Peacekeeping Operations should urgently complete the inventory of skills and competencies available and develop a course plan, with detailed cost estimates and time frames.  Within the context of the reform, the Inspectors suggest that the concept of parent duty stations should be revised in order to align the entitlements of Field Service Officers with those with other categories of staff while continuing to reward mobility and hardship.  Also needed is a new policy for mobility and rotation of field officers.  The Secretary-General should propose a number of measures to alleviate the strain of field service on individual staff members and their families.  The report recommends that two Peacekeeping Department Professionals should be posted on a full-time basis for 18 months to implement the reform. 

An addendum to the JIU report (document A/57/78/Add.1) contains the Secretary-General’s comments on the matter.  According to this document, the Department of Peacekeeping Operations has already commenced a review of the Field Service, which will take into account the current peacekeeping staff as a unique pool of experienced and highly mobile individuals.  The importance of linking the restructuring exercise to other aspects of the global staffing strategy adopted by the Department has to be recognized.  Also, the increased use of local General Service staff and national professionals in peacekeeping missions needs to be addressed.  A significant part of the implementation of the Inspectors’ recommendations has been the restructuring of the Personnel Management and Support Service of the Peacekeeping Department’s Office of Mission Support, which involves the establishment of two new sections there devoted to civilian training and human resources planning. 

Regarding the concept of parent duty station, the Secretary-General proposes that instead of designating New York as the administrative duty station for the new Field Service category, consideration be given to locating peacekeeping administration at an established duty station or in a neighbouring third country in the region.  The Department of Peacekeeping Operations is working with the Office of Human Resources Management and other parties concerned to simplify the system of administering entitlements and ensure that field staff are adequately compensated for their dangerous, stressful and difficult work.

On the rotation policy, the Peacekeeping Department intends to plan, manage, train and place Field Service Officers in a more transparent and orderly fashion.  The Administration is in favour of the proposal regarding the need to administer Field Service Officers along the same lines as other staff members under the

100 series of staff rules, but points out the need to issue the necessary directives and administrative instructions and guidelines.  While the Administration supports moving staff services closer to the clients, a distinction should be made between the delegation of authority and decentralization of processes.  Rather than delegating authority in respect of field staff as a specific group, the Peacekeeping Department is currently identifying specific entitlements and benefits, the processing of which will be delegated to the field.  The report goes on to explain the system of promotion and criteria for recruitment of Field Service Officers.  The Secretary-General further agrees with the need to use staff counsellors in field missions.  As for the two officers to be dedicated to the implementation of the reform, the Secretary-General points out that the entire Personnel Management and Support Service is dedicated to this work. 

Referring to the fact that the JIU report contains comments from participating organizations, the Advisory Committee, in a related part of its report (document A/57/434), notes that the general thrust of the report was well received and welcomed by most participating organizations.  The ACABQ recommends that the Assembly endorse the JIU recommendations and request inclusion of information about related policy changes in the introduction to the proposed programme budget for 2004-2005.  The Advisory Committee intends to revert to this subject during the review of the proposed budget for the next biennium.

Committee Chairman MURARI RAJ SHARMA (Nepal) opened the meeting by introducing the Committee’s new Secretary, Movses Abelian of Armenia.  The former Permanent Representative of Armenia, Mr. Abelian was not only a profound scholar, but also a warm, energetic person who brought a great wealth of experience to the Committee.  His appointment was a wonderful gain for the Secretariat.

He said challenging days were ahead for the Committee.  He was confident that, working together, the Committee would repeat its sterling performance.  The Bureau had frontloaded the programme of work, leaving most of the last week open so as to give more room for informal consultations on outstanding issues, as well as time for documentation to be translated into all official languages.  Given the work ahead, he hoped the Committee would be in a position to accept the work programme.  He also appealed to the Committee to continue its tradition of consensus.

The representatives of Croatia (on behalf of the Eastern European Group), United States, Morocco (on behalf of the “Group of 77” developing countries and China), Botswana (on behalf of the African Group), Niger and Australia (on behalf of the Western European and Other States Group) congratulated the Committee’s Secretary on his new appointment and noted that his vast experience would prove advantageous in carrying out his new tasks.  Delegates also expressed their appreciation for Nora Benary, the Committee’s interim Secretary, for her tireless efforts in guiding the Committee.

Organization of Work

The representative of Greece (on behalf of the European Union and associated States) expressed dissatisfaction with the late issuance of reports, in particular the reports of the Advisory Committee on Administrative and Budgetary Questions (ACABQ).  Concerning the support account, he said a significant increase had been requested corresponding to a larger number of posts, mostly for the Office of Internal Oversight Services.  That request would be examined carefully.  The Union was inclined towards adopting a “chapeau” and including in one legislative text –- where appropriate –- resolutions on active peacekeeping missions, saying it would streamline the drafting of resolutions and improve coherence.  The possible consolidation of the accounts of peacekeeping operations would not be compatible with current financial practices. 

The representative of Cuba proposed postponing the informal consultations scheduled for tomorrow on item 126, the administrative and budgetary aspects of the financing of United Nations peacekeeping operations, until the Committee had been able to hold a substantive debate on the matter.  Informal consultations could prejudge negotiations on that item, as well as other linked matters.

The representative of Syria supported Cuba’s proposal and proposed that the Committee consider items deferred from its first resumed session during the first part of the current session.

The Committee CHAIRMAN said the Bureau had decided to put the item up front on the Committee’s programme so as to provide a framework its deliberations and to expedite its work.  He proposed that the Committee proceed with the programme of work as it was, with the understanding that adjustments would be made as necessary during the course of the session.

The Committee then approved its programme of work for the second resumed session.

gaab3560.p2

05/05/2003 Press Release GA/AB/3560 NOTE:  FOLLOWING ARE SUMMAIRES OF STATEMENTS IN THE RESUMED MEETING OF THE FIFTH COMMITTEE.  A COMPLETE SUMMARY OF THE MEETING WILL BE MADE AVAILABLE AT THE CONCLUSION OF THE MEETING, AS PRESS RELEASE GA/AB/3560. Background During its second resumed session, opening today and expected to last through 30 May, the Fifth Committee (Administrative and Budgetary) will focus mostly on in-depth consideration of various aspects of peacekeeping financing, ranging from the funding of individual missions to gender mainstreaming and  write-off of contingent-owned equipment.  For that purpose, the Committee is  going to take up documents related to administrative and budgetary aspects of peacekeeping, performance reports and audited financial statements of individual missions for the current financial year and their budget requirements for the period from 1 July 2003 to 30 June 2003. The financial year of peacekeeping operations runs from 1 July to 30 June, and their costs are assessed among Member States on the basis of a special peacekeeping scale.  Unlike the regular budget, the budgets of peacekeeping missions are less amenable to forward planning, because they are subject to decisions of the Security Council that may be taken at any time during the year, depending on the world situation.  For the same reason, the total cost of United Nations peacekeeping is subject to considerable fluctuations from year to year. The programme of work of the Fifth Committee this May reflects attempts to consolidate peacekeeping financing, in particular through presentation of overview reports and consideration of a proposal, which would entail preparation of a single resolution of the General Assembly on the financing of all missions. To facilitate the Organization’s rapid deployment capacity, at the conclusion of its second resumed session last year, the Committee approved a brand new concept of strategic deployment stocks (SDS), which are expected to enhance the United Nations materiel readiness for deployment within 30 to 90 days.  Taking into account the reserve at the United Nations Logistics Base (UNLB) in Brindisi, Italy, as of 30 April 2002, the Assembly approved some $141.55 million for the implementation of the SDS, envisaging the expansion of the role of UNLB, which should take on new responsibilities as an operational arm of the new mechanism.  It will also serve as a training and conference centre and a support base for air operations.  Funding for the strategic deployment stocks will be from the United Nations Peace Forces (UNPF), United Nations Mission in Haiti (UNMIH) and the Peacekeeping Reserve Fund, in accordance with resolution 56/292 of 27 June 2002. The United Nations Peacekeeping Reserve Fund was established by the General Assembly in 1992 to serve as a cash-flow mechanism to ensure the rapid deployment of peacekeeping operations.  The initial level of the reserve fund was set at  $150 million.  Total reserves and fund balances as at 30 June 2002 were $197.4 million -- $47.4 million higher than the approved level of $150 million, representing accrued interest income.  The application of that amount was undecided. For the current peacekeeping budget cycle, last June, the Assembly adopted a budget of some $2.6 billion for the functioning of 12 active United Nations missions, including some $100.9 million for the maintenance of the peacekeeping support account and $12.09 million for the UNLB.  Introduced in the last decade, the support account allows the Secretariat to plan and deploy peacekeeping operations in a coordinated manner.  It is financed through assessments on all active missions, according to their size, as is the UNLB. On peacekeeping financing, the Committee had before it the Secretary-General’s consolidated report (document A/57/723) -– submitted for the first time this year -- which provides an overview of financial and administrative aspects of peacekeeping, including the performance of individual missions in 2001/2002 and the budget proposals for the period, which begins on 1 July 2003.  The report describes the improvements that are being introduced for the mission budgets for 2003/2004 under the recently adopted results-based methodology and the global approaches to the operational aspects of peacekeeping and the related costs.  It also provides an update on the provision of goods and services to peacekeeping operations by Member States. According to the report, for the period from 1 July 2001 to 30 June 2002, expenditures amounted to $2.5 billion against approved budgets of $2.7 billion, including some $2.67 billion for peacekeeping missions, $9 million for the UNLB at Brindisi, and $89.7 million for the peacekeeping support account.  The overall implementation rate for the period amounted to 92 per cent, leaving an unencumbered balance of $0.2 billion.  This implementation rate is a marginal improvement, compared with 90 per cent for the previous 2000-2001 period. The proposal for the period from 1 July 2003 to 30 June 2004 amounts to  $2.2 billion, compared with an approved level of $2.6 billion for the current period, including $2.49 billion for missions; $14.3 million for the Logistics Base; and $100.9 for the Support Account.  For 2003/2004, improvements have been introduced in the format of mission budgets, including objective-setting for all mission components.  For the missions’ mandate performance for 2001/2002, a transitional format has been used. The Secretary-General proposes a total of 9,995 posts for peacekeeping missions for the period 2003/2004, compared with 12,681 in the current period, exclusive of UNLB and the Support Account.  This net decrease of 2,686 posts largely represents the downsizing of the United Nations Interim Administration Mission in Kosovo (UNMIK), United Nations Mission of Support in East Timor (UNMISET), United Nations Mission in Sierra Leone (UNAMSIL) and the United Nations Interim Force in Lebanon (UNIFIL) and the closure of the United Nations Mission in Bosnia and Herzegovina (UNMIBH).  A total of 136 posts are proposed for UNLB and 761 posts for the Support Account (including 27 posts for resident auditors for the Office of Internal Oversight Services in peacekeeping operations formerly budgeted under individual peacekeeping missions), totalling 10,892 posts, compared with 13,513 for 2002/2003. The processing of contingent-owned equipment has improved, compared with earlier years, the Secretary-General states.  Claims for all missions up to 31 December 2001 have been processed, and claims from January to June 2002 will be processed by the end of June 2003.  Five workshops on contingent-owned equipment methodology and procedures were held for military advisers of permanent missions, and annual workshops will be held to facilitate the participation of officials rotating into the permanent missions.  Pre-deployment visits are now an integral part of the Secretariat’s role in the deployment of troops to missions, and 25 such visits have taken place in the past two years. The Missions’ actual expenditures for the 2001-2002 financing cycle, the apportionment for 2002/2003 and the proposed budget for 2003/2004 are presented in the following table (in thousands of US dollars):