Financing of peacekeeping missions – Fifth Cttee meeting – Press release (excerpts)

ADMINISTRATIVE AND BUDGETARY COMMITTEE BEGINS

SECOND RESUMED SESSION,

WITH FOCUS ON FINANCING OF PEACEKEEPING OPERATIONS

Peacekeeping Costs of $2.016 Billion for 2000-2001

Significant Increase over Earlier Biennium, Committee Told

The Fifth Committee (Administrative and Budgetary) this morning began its second resumed fifty-fourth session, which will focus on the financing of peacekeeping missions.

As it began its consideration of some 40 financial reports on a variety of peacekeeping missions, the Committee was told that total estimated peacekeeping requirements for 1 July 2000 to 30 June 2001 are approximately $2.016 billion gross, a significant increase over the totals for 1999-2000 and 1998-1999.  According to the Advisory Committee on Administrative and Budgetary Questions (ACABQ), while the budgets of five of six ongoing missions had decreased, total requirements had risen due to the expansion of new missions in Kosovo, East Timor and the Democratic Republic of the Congo, and the expansion of the Sierra Leone operation.  The scope of activities and the nature of personnel required for those recent missions was a dramatic change, said C.S.M Mselle, Chairman of the ACABQ, as he introduced that body’s reports.

The volatility of peacekeeping made life difficult for both Member States and the Secretariat, Jean-Pierre Halbwachs, the United Nations Controller, told the Committee, as he introduced the Secretary-General’s reports on a number of missions.  That volatility made it difficult to follow standard budgetary cycles.  However, the accuracy of the Secretary-General’s estimates over the past two years was borne out in the small balances left at the end of financial periods, he added.

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United Nations Disengagement Observer Force (UNDOF)/United Nations

Interim Force in Lebanon (UNIFIL)

Before the Committee was the Secretary-General's financial performance report for UNDOF for 1 July 1998 to 30 June 1999 (document A/54/707).  On 26 June 1998, the General Assembly appropriated some $35.40 million gross ($34.51 million net) for that period.  Expenditures for the period totalled about $33.66 million gross ($32.92 million net), resulting in an unencumbered balance of some $1.74 million gross ($1.59 million net).

The unencumbered balance resulted mainly from civilian vacancies, the report states, and from favourable unit cost rates obtained for vehicles, favourable exchange rates and receipt of some items from the United Nations Logistics Base in Brindisi.  The Secretary-General proposes the General Assembly decide on the treatment of that unencumbered balance.

Also before the Committee was the Secretary-General's proposed budget for UNDOF (document A/54/732) for 1 July 2000 to 30 June 2001. The Secretary-General seeks some $34.95 million gross (about $34.2 million net).  Some 54 per cent of these resources relate to military personnel costs, with 15 per cent for civilian personnel, 29 per cent for operational costs and staff assessment comprising 2 per cent of the total.  He recommends the General Assembly appropriate that amount for the mission's maintenance, assess it at a monthly rate of some $2.91 million, and credit back to Member States about $4.02 million during the fifty-fourth Assembly session, representing part of the remaining net surplus balance held in the UNDOF suspense account.

In a related report from the ACABQ (document A/54/841/Add.1), that body notes that for the period 1 July 1998 to 30 June 1999 the unencumbered balance of some $1.74 million gross (about $1.59 million net) amounts to some 4.9 per cent of the amount appropriated.  Unliquidated obligations as at 31 December 1999 were some $13.32 million, with some $9.22 million government-related.  The report recommends that Member States be credited their respective shares of the unencumbered balance in a manner to be determined by the Assembly.

Commenting on the proposed budget of mission for 1 July 2000 to 30 June 2001, the ACABQ notes the proposed requirements represent a 5.1 per cent increase over 1 July 1999 to 30 June 2000, due to increased salaries and common staff costs, for premises and accommodation and for transport operations, offset by a decrease for communications and other equipment.  The replacement of leased equipment with new contingent-owned equipment, under new arrangements, required extensive discussions and negotiations with the troop contributors involved, according to the report.  It recommends acceptance of the Secretary-General's staffing table proposal.

It recommends approval of the Secretary-General's proposal that the Assembly appropriate some $34.95 million gross for July 2000 to 30 June 2001. It also recommends the Member States be credited some $4.02 million this Assembly session, as part of the net surplus in the UNDOF suspense account.

The Committee also had before it the Secretary-General's financial performance report for UNIFIL (document A/54/708).  In it, he asks the General Assembly to decide on the treatment of an unencumbered balance of some $8.329 million gross (almost $8.085 million net), for the period from 1 July 1998 to 30 June 1999.  The report also contains a financial performance report for the Force for that period, for which the Assembly had appropriated almost $142.985 million gross ($139.133 million net), while expenditures had totalled some $134.655 million gross (roughly $131.049 million net).

The Secretary-General explains the unencumbered balance as being due largely to actual troop strength being lower than budgeted, a high vacancy rate for civilian staff caused by the temporary assignment of experienced UNIFIL staff to assist in other missions, savings on the purchase of vehicles because of better unit prices, and savings related to the receipt of equipment, vehicles and supplies from the Brindisi Base and other peacekeeping missions.  Those savings were partially offset by additional requirements related to upgrading the mission's computer systems to ensure year 2000 compliance.

Also before the Committee was a Secretary-General's proposed budget for UNIFIL for 1 July 2000 to 30 June 2001(document A/54/724). The Secretary-General estimates he will need some $139.55 million gross (about $135.72 million net), which would include budgeted voluntary in kind contributions valued at $180,000. This would be a 0.4 per cent decrease ($541,600) compared to the 1 July 1999 to 30 June 2000 apportionment.  Civilian personnel costs would account for some 18 per cent of the budget, with operational requirements accounting for 21 per cent, military personnel costs some 57 per cent, and staff assessment comprising 3 per cent.

Changes to staffing for UNIFIL are proposed, including the establishment of one new P-3 level post for a Supply Management Officer, the reclassification of the Budget Cost Control Officer post from P-3 to P-4 and of a Civilian Engineer post from P-2 to P-3.  It is proposed that three General Service posts and three Field Service-level posts be converted into six local-level posts, that one General Service post in the Chief Administrative Officer's office be abolished, and that one Field Service post be redeployed to that office from the Communications Section.

In a related report from the ACABQ on the UNIFIL financial performance report (document A/54/841/Add.2), that body recommends that proposals to deal with an unbudgeted contingent liability of some $1.49 million related to contingent provided equipment be presented in the next UNIFIL budget submission. It also recommends that Member States be credited their respective shares of the unencumbered balance of about $8.33 million in a manner the General Assembly determines.

Regarding the proposed UNIFIL budget for 1 July 2000 to 30 June 2001, the ACABQ recommends acceptance of the staffing changes proposed by the Secretary-General.  It recommends that UNIFIL replace only 20 per cent of its total holdings of data-processing equipment (requirements would amount to $438,650), thus reducing to $797,150 from $846,650 the resources required.  It recommends that a vacancy rate for international staff of 8 per cent, rather than the 5 per cent rate used by the Secretary-General, would better reflect experience on this mission, and would reduce requirements by $540,681.  After adjustment for these two reductions, the ACABQ recommends acceptance of the budget proposal.

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