UNDOF – Finance – SecGen report (Addendum)

 Financing of the United Nations peacekeeping forces in the Middle East:

United Nations Disengagement Observer Force

Report of the Secretary-General

Addendum

    Contents 

 I.  Introduction

 1.   The Security Council, by its resolution 1081 (1996) of 27 November 1996, extended the mandate of the United Nations Disengagement Observer Force (UNDOF) to 31 May 1997.

 2.   The financial provision for the period from 1 December 1995 to 30 June 1996 to maintain the operation of UNDOF was approved by the General Assembly in its resolution 50/20 A of 1 December 1995. For the same period, the General Assembly, by its resolution 50/20 B of 7 June 1996, appropriated to the Special Account for UNDOF the amount of $18,753,000 gross ($18,211,998 net) and apportioned the same amounts among Member States.

 II.   Financial performance report for the period from 1 December 1995 to 30 June 1996

 3.   Annex I, column 1, sets out by budget line item the cost estimates for maintaining UNDOF for the period from 1 December 1995 to 30 June 1996, as contained in annex I to document A/50/386 of 7 September 1995. The cost estimates reflect the apportionment of the resources provided to UNDOF during the period since the Secretary-General's proposals were approved without change. The expenditures recorded for the period are shown in column 2 by budget line item. Related unliquidated obligations are reflected in column 3. Savings or overruns, which reflect differences between the apportionment of resources and the actual expenditures, are shown in column 4 and result in an unencumbered balance of $1,129,300 gross ($1,066,700 net).

 4.   Supplementary information on the financial performance report is presented by budget line item in annex II. The authorized staffing, incumbency and vacancy rates for civilian and military personnel for the reporting period are shown in annex III.

 5.   As shown in annex I, column 1, the total resources made available to UNDOF for the period from 1 December 1995 to 30 June 1996 amount to $18,753,000 gross ($18,221,000 net). Expenditures for the period (column 2) amount to $17,623,700 gross ($17,154,300 net).

 6.   The expenditures incurred during the reporting period for all main budget headings were less than their estimated costs and resulted in total savings of $1,129,300 gross ($1,066,700 net) as follows: military personnel costs ($238,100), civilian personnel costs ($441,900), premises and accommodation ($89,200), transport operations ($108,800), communications ($57,400), other equipment ($121,300), supplies and services ($36,100) and staff assessment ($62,600). The above expenditures include the share of UNDOF towards the ad hoc financing of the United Nations Logistics Base in Brindisi totalling $64,000, reflected under premises/accommodation ($8,000), miscellaneous supplies ($30,000) and air and surface freight ($26,000).

 7.   The above savings were realized mainly as a result of more favourable rates obtained for the hire of aircraft used for rotation of military personnel; filling vacant posts with staff at lower levels; cancellation and deferment of construction projects; and reduced procurement of major equipment items owing to availability of some items from the United Nations Logistics Base in Brindisi.

 III.  Action to be taken by the General Assembly at its fifty-first session

  8.   The action to be taken by the General Assembly at its fifty-first session in connection with the financing of UNDOF is a decision to credit Member States their respective shares in the unencumbered balance of $1,129,300 gross ($1,066,700 net) for the period from 1 December 1995 to 30 June 1996. 

   Annex I 

    Financial performance report for the period from 1 December 1995 to 30 June 1996: summary statement

   (Thousands of United States dollars) 

 ^a Total expenditures are inclusive of unliquidated obligations, which are presented in column 3 for information purposes only.

   Annex II 

    Financial performance report for the period from 1 December 1995 to 30 June 1996: supplementary information

 Savings/(overruns) 

  (United States dollars)

 1.   Military personnel costs  ……………………………………………………238 100

   (a)   Military observers     ……………………………………………………X

 1.   No provision was made under this heading

   (b)   Military contingents    ……………………………………………………238 100

 2.   The savings under emplacement, rotation and repatriation of troops ($229,000) were due to favourable rates obtained for commercial and government-provided aircraft services. Table 1 below shows the actual cost of rotation against the budgeted amount. In February 1996, 29 members of the Canadian transport platoon were replaced by a unit made available by the Government of Japan. Provision was made to cover the cost of repatriating the Canadian contingent and phasing in the Japanese platoon during the reporting period.

Table 1     Budgeted vs. actual cost of rotation

 3.   The savings under rations ($8,800) were due to lower market prices of fresh fruits and vegetables.

   (c)   Other costs pertaining to military personnel     ……………………………………………………X

     (i)  Contingent-owned equipment     ……………………………………………………X

 4.   The amount allocated for contingent-owned equipment has been fully obligated to cover potential claims.

     (ii)   Death and disability compensation     ……………………………………………………X

 5.   The amount allocated has been obligated to cover potential claims for death, injury or disability of military personnel.

 2.   Civilian personnel costs   441 900

   (a)  Civilian police   ……………………………………………………X

 6.   No provision was made under this heading.

   (b)   International and local staff     ……………………………………………………441 900

 7.   Savings totalling $484,400 were realized under international staff salaries ($210,000), local staff salaries ($131,400), general temporary assistance ($24,100), common staff costs ($106,500) and other travel costs ($12,400). These savings were offset in part by an overexpenditure of $42,500 under overtime, which was incurred during the streamlining in July 1992 and the movement of UNDOF headquarters and its civilian component from Damascus to Camp Faouar during the first half of 1994.

 8.   The savings under salaries for international staff and common staff costs were attributable to vacancies reported during the period under review, as reflected in annex III. Also, some vacant local staff posts were temporarily filled by staff engaged at lower levels (average level 3, step 4) as compared with the budgeted level (average level 4, step 5). Savings under other travel costs were attributable to efforts to ensure that only the most essential travel was undertaken.

 3.   Premises/accommodation  89 200

 9.   Savings totalling $106,200 under maintenance supplies ($53,200) and construction/prefabricated buildings ($53,000) were offset in part by additional requirements of $17,000 for rental of premises ($9,000) based on the contracts entered into by UNDOF for such premises and for maintenance services ($8,000).

 10.   Owing to changes in work priority scheduled projects, which included upgrading the shelter at position Herman base and creation of a workshop at Camp Faouar, were cancelled, resulting in reduced requirements for maintenance supplies.

 11.   Savings under construction/prefabricated buildings came as a result of the cancellation of construction of a central laundry in Camp Faouar, renovation of one building in Camp Ziouani, demolition of four buildings in Camp Ziouani and construction of the UNDOF headquarters operations bunker.

 4.   Infrastructure repairs     ……………………………………………………X

 12.   No provision was made under this heading.

 5.  Transport operations    ……………………………………………………108 800

 13.   Savings of $122,800 were reported under purchase of vehicles ($101,400), workshop equipment ($18,800) and petrol, oil and lubricants ($2,600). This was partially offset by an overrun of $14,000 under spare parts, repairs and maintenance.

Table 2     Breakdown of vehicles budgeted and purchased during the period from 1 December 1995 to 30 June 1996

 14.   As will be recalled, provision for freight for the transfer of 23 vehicles from Brindisi was made under purchase of vehicles (see annex II, A/50/386, para. 35). The subsequent non-delivery to UNDOFof those vehicles resulted in the savings under this heading. It was determined that those vehicles would prove detrimental rather than beneficial to UNDOF operations, since most, if not all, of them were old, required a lot of repair and maintenance and could not be used in the rough terrain and mountainous areas of UNDOF operations. For those reasons, a request for new vehicles will be included in the budget proposals for the mission for the period from 1 July 1997 to 30 June 1998.

 15.   Savings under workshop equipment resulted from reduced requirements. Savings under petrol, oil and lubricants resulted from UNDOF being able to obtain petroleum products at a reduced rate from the host country.

 16.   The overexpenditure reported under spare parts, repairs and maintenance was due to the necessary build-up of a proper first-line supply of parts for the M35 trucks received from Brindisi. By performing these proper first-line repairs with the necessary spare parts, it was expected that more serious and expensive repairs could be prevented in the future. Moreover, most of the M35s were received without the appropriate safety/ancillary equipment (such as first aid kits, safety triangles, wheel wrenches and jacks), resulting in an unforeseen need to obtain them.

 6.  Air operations     ……………………………………………………X

 17.   No provision was made under this heading.

 7.  Naval operations     ……………………………………………………X

 18.   No provision was made under this heading.

 8.  Communications     ……………………………………………………57 400

   (a)   Complementary communications    ……………………………………………………57 400

 19.   Savings were realized under communications equipment ($18,700), spare parts and supplies ($23,300), workshop and test equipment ($12,200) and commercial communications ($3,200). These savings resulted from some communications equipment being obtained from Brindisi and from delays in procuring other items.

 20.   Savings under spare parts, supplies and test and workshop equipment were due to lower requirements for some of those items.

   (b)  Main trunking contract     ……………………………………………………X

 21.   No provision was made under this heading.

 9.  Other equipment     ……………………………………………………121 300

 22.   Savings totalling $148,900 under office furniture and equipment ($20,400), data-processing equipment ($43,900), generators ($34,000), observation equipment ($27,000) and spare parts, repairs and maintenance ($23,600) were offset in part by additional requirements of $27,600 under medical and dental equipment ($3,000) and accommodation equipment ($24,600).

 23.   In compliance with the provisions of the special measures related to the financial crisis, items procured under office furniture and equipment were only replacement items and were limited to the minimum required for the effective operation of the mission. The meagre expenditure reported under observation equipment was due to an inspection performed during May-June 1996, when it was determined that UNDOF should continue to utilize the existing equipment for another year, owing to the financial constraints faced by the Organization.

 24.   Savings under data-processing equipment and generators were realized owing to the delay in processing the requisitions prior to the end of the mandate. Hence, the items were not procured.

 25.   Urgently required medical equipment in the form of oxygen backpacks, oxygen inhalation sets and automatic respiration units contributed to the overrun of $3,000 under medical and dental equipment. Moreover, the overrun under accommodation equipment was due to the replacement of one large industrial dishwasher ($9,000) for the kitchen in Camp Faouar because of wear and tear, as well as the acquisition of stoves and food storage units for UNDOF positions in the area of separation to minimize spoilage of food ($15,600).

 10.   Supplies and services    ……………………………………………………36 100

   (a)   Miscellaneous services    ……………………………………………………13 500

  26.   The savings of $18,100 under miscellaneous services were due to reduced requirements for medical treatment and services ($4,000) and miscellaneous other services ($14,100). As a result of expenditures in respect of one general temporary assistance post being inadvertently recorded under contractual services, an overrun of $4,600 under this line item was incurred.

 27.  Savings of $4,000 under medical treatment were due to the lower than anticipated number of cases requiring treatment outside the mission area.

   (b)  Miscellaneous supplies    …………………………………………………… 22 600

 28.   Savings totalling $95,000 under stationery and office supplies ($10,600), medical and dental supplies ($31,800), sanitation and cleaning materials ($16,600), uniform items, flags and decals ($33,400) and field defence stores ($2,600) were offset in part by additional requirements of $72,400 under quartermaster and general stores. These savings were mainly due to the implementation of special measures related to the financial crisis to freeze expenditures in the affected accounts.

 29.   The purchase of essential fire safety equipment, including explosives and alpine tools, blankets, sheets, kerosene, butane gas and the replacement of a portable fire pump, caused the overexpenditure under quartermaster and general stores. Also, requirements for Brindisi amounting to $30,000 contributed to the overrun under this heading.

 11.   Election-related supplies and services     ……………………………………………………X

 12.   Public information programmes     ……………………………………………………X

 13.   Training programmes     ……………………………………………………X

 14.   Mine-clearing programmes     …………………………………………………..X

 15.   Assistance for disarmament and demobilization     ……………………………………………………X

 30.   No provision was made under these headings.

 16.   Air and surface freight    ……………………………………………………(26 000)

 31.   An overexpenditure of $26,000 was realized under this heading owing to additional requirements to cover expenses related to the day-to-day operations of the United Nations LB in Brindisi, as authorized in the report of the Secretary-General of 1 April 1996 (A/50/907).

 17.   Support account for peacekeeping operations     ……………………………………………………X

 32.   The amount authorized has been transferred to the support account for peacekeeping operations.

 18.  Staff assessment    ……………………………………………………62 600

 33.   Savings under this heading were due to the overall vacancy rate of 17 per cent in respect of international staff, as reflected in annex III, as well as the lower grade levels of local staff on board in comparison with the cost estimates.

 19.   Income from staff assessment    ……………………………………………………(62 600)

 34.   This amount is derived from item 18 above.

   Annex III

    Authorized staffing, incumbency and vacancy rates for the period from 1 December 1995 to 30 June 1996 

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