[misc.headlines.unitex] <3/4> FIFTH COMMITTEE CONTINUES REVIEW OF FINANCIAL

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

     that the continuing accumulation of resources in UNDP required
     closer co-operation among the programmes, executing agencies and
     governments.  Special attention should be given to the
     uncalled-for exaggeration in operating costs, and a more rigid
     budgetary discipline should be enforced with regard to UNDP and
     the United Nations Population Fund (UNFPA).

     C.A. SANGA (United Republic of Tanzania) called on the UNDP
     Administrator and Governing Council to address the question of
     liquidity so that the resources available could be fully
     programmed for the benefit of recipient countries.  He said
     observations made by the administrations of the various
     organizations should be part of the Auditors' reports and not
     occupy a separate section of such reports.

     The tendency of some administrations to use project funds to
     establish posts at Headquarters should stop, he continued.  Any
     attempt to reduce financial resources for field projects through
     the creation of such posts, especially if they were not
     earmarked anywhere in the budget, should be strictly
     controlled.

     He welcomed the recommendations of the Panel of External Auditors
     to investigate the extent of abuse in the present practice of
     obligating funds, he stated.  His country was seriously
     concerned, however, at the weaknesses in the United Nations
     Relief and Works Agency for Palestine Refugees in the Near East
     (UNRWA) and called for immediate remedial action.  Regarding the
     management of trust funds of the United Nations Institute for
     Training and Research (UNITAR), no projects should start until
     there was firm assurance that funds were available.

     K.D. DANKWA (Ghana) said the issue of unliquidated obligations of
     the UNDP should not be considered solely, or even mainly, in
     terms of possible abuse.  The practice of several field officers
     of recording such obligations up to the unspent balance of
     allotted funds, regardless of actual commitments, betrayed a
     casual attitude towards planning and programming.  Flexibility
     should none the less be urged with regard to the recording of
     unliquidated obligations as expenditure for the year in which a
     purchase order had been issued.

     Turning to the other organizations audited, he said serious
     efforts should be made to draw the line between programme
     expenditures and administrative and programme support
     expenditures of the UNFPA.  Ghana was particularly alarmed that
     UNITAR was to incur substantial losses for long outstanding
     receivables and deferred charges for which no records were
     available to determine their nature.  The United Nations must
     institute appropriate measures to enforce compliance with
     financial rules and regulations, and it was about time officials
     were held responsible for their actions.

     It was gratifying that UNRWA and the United Nations High
     Commissioner for Refugees (UNHCR) had received unqualified
     audited opinions, he continued. However, UNHCR should pay
     greater attention to the recording of overdue pledges and
     counterpart contributions.  In general, it was a matter of regret
     that the findings and recommendations of the Board remained
     largely unimplemented; the need was evident to introduce
     coercive measures that would ensure accountability in the
     administrative and financial management of the Organization.

     United Nations Development Programme

     M.D. STAFFORD, of the United Nations Development Programme
     (UNDP), said its biennial budget of $6 million termed "the
     programme support and administrative services budget", included
     $2.5 million under programme logistical support projects and
     $3.5 million under project-funded posts at Headquarters.
     Regarding the Board's position that posts in New York should be
     included in the biennial budget, he said there were certain
     legitimate project activities which, for one reason or another,
     were best located at Headquarters


     The UNDP administration conceded that there were problems with
     budgetary discipline, he said, but the Board had nowhere
     criticized the Programme's staffing table control procedures,
     which accounted for 70 per cent of the overall budget. Regarding
     the field offices, many of the problems were in the nature of
     the business -- a far-flung network, often difficult operating
     environments, multiple currencies, multiple expenditure centres
     and variable staffing.  Other problems were procedural, but

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


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