[misc.headlines.unitex] <4/4> FIFTH COMMITTEE CONTINUES REVIEW OF FINANCIAL

unitex@rubbs.fidonet.org (unitex) (10/11/89)

     progress had been made in 1989 towards tackling those issues
     amenable to management intervention.

     Speakers had referred to the Programme's deviation from
     "generally accepted accounting principles" in the recording of
     unliquidated obligations, he continued.  However, although a
     study had shown that the International Accounting Standards
     Committee recommendations could serve as guidelines for the
     harmonization of financial statements of United Nations bodies,
     the organizations believed that not all the guidelines could be
     fully applicable. There were, for example, genuine reasons for
     adopting the recording of expenditure on the basis of
     obligations rather than the "delivery" approach:  the points of
     delivery for project equipment were dispersed world-wide,
     frequently in remote locations, and practical difficulties were
     often involved in defining and determining the time of actual
     delivery of a great deal of equipment purchased.

     UNDP was making every effort to improve the process of accounting
     and auditing for Government-executed projects, he stated.  As to
     cash management, exchange losses were unavoidable for an
     organization such as UNDP, which operated world-wide and which
     received and disbursed virtually every national currency.  UNDP
     had no contractual arrangement with the banks with which it
     transacted business; competitive bidding for both foreign
     exchange and investment transactions was an integral part of its
     policy and practices.

     Regarding the concern with the liquidity position of UNDP, he
     said that from 1992, UNDP would need either to receive
     substantially increased resources or reduce delivery levels to
     live within available resources.  As to consultants, the
     administrator had approved a post for a consultant manager, and
     a full review would be undertaken of guidelines, evaluations,
     contracts, terms of reference and other areas.

     YOGESH KUMAR GUPTA (India) said the information provided today on
     the use of consultants differed from that contained in the
     report.  India was concerned that consultants were being hired
     for work which could be done by available staff members.

     JEAN-MICHEL BOUR (France) said the explanations given by UNDP
     resembled those given last year and two years ago.  What would
     happen next year if the administration did not take further
     steps to respond quickly to the recommendations made to it? he
     asked.  Regarding the Programme's establishment of the United
     Nations International School in Hanoi, he asked how many
     children of international civil servants attended the school, and
     whether its creation was justified by the number of pupils.

     Mr. STAFFORD said he hoped consultants would be used for the
     proper purpose and not be employed for temporary part-time work
     or where there was available staff to do the job.  Regarding the
     school in Viet Nam, UNDP agreed with the Auditors that any time
     a similar move was made in promoting a school, the action would
     be taken through the Governing Council.  The Resident
     Representative had felt that people with children would not go to
     that country because of the school facilities, which was why
     UNDP had provided a loan, still outstanding, of $75,000.  The
     school now had 25 students, five of whom were affiliated with
     the Organization.  Perhaps the initiative had been outside the
     Programme's mandate, but if UNDP staff were not allowed to be
     part of those international schools, there would be a crisis of
     education.

     LUIS MARIA GOMEZ, Acting Under-Secretary-General for
     Administration and Management and Assistant Secretary-General
     for Programme Planning, Budget and Finance, said UNDP did make
     the United Nations aware at all times of the initiative.
     Furthermore, the United Nations school in New York was
     encouraged to assist the fledgling institute in Viet Nam to
     permit uniformity of curricula to assist the mobility of those
     children of an international community, and the Organization was
     grateful to UNDP for that.  Viet Nam was
     not the only place where the situation was being faced; a similar
     case existed in Afhganistan.

     Mr. GUPTA (India) said that though the established financial
     rules might not have been fully observed in that particular
     situation, the initiative of UNDP in the case of the school in a
     region with considerable need for international development
     staff was very commendable, and in any case the amount involved
     was very small.

 * Origin: UNITEX --> Toward a United Species (1:107/501)


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