UN FINANCES: 2006 PAYMENTS ARE SLOW

UNCLAS USUN NEW YORK 001071

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: AORC KUNR UNGA
SUBJECT: UN FINANCES: 2006 PAYMENTS ARE SLOW



1. SUMMARY: On May 24th, UN Controller Warren Sach updated
the Fifth Committee on the current financial situation of the
United Nations. He noted that the overall financial
situation in 2005 was better than 2004, but that 2006
payments thus far on the regular budget were below payments
made this time in 2005. The Fifth Committee will have a
general discussion on the UN's financial situation on
Thursday, June 1st. END SUMMARY.


2. With regard to the UN Regular Budget, unpaid assessments
at the end of 2005 totaled $333 million vs. $357 million at
the end of 2004. However, cross-borrowing was needed during
October and November 2005. As of April 30, 2006, the UN has
received $877 million in payments against assessments of
$1,755 million. The level of paid assessments thus far in
2006 is approximately $200 million less than the same period
in 2005. As of April 30, there was $697 million available in
cash in the combined general fund ($380 million for the
regular budget, $100 million in the working capital fund, and
$217 million in the special account). The Controller stated
that, if past payment patterns were followed, $881 million
would be received by year end.


3. Unpaid peacekeeping assessments at the end of 2005
($2,919 million) were higher than at the end of 2004 ($2,570
million),but the amount as of December 31, 2005 included
$1,183 million in assessments issued earlier in the month.
Total cash on hand for peacekeeping missions at December 31,
2005 was $1,646 million ($1,179 million from active missions,
$327 million from closed missions, and $140 million in the
peacekeeping reserve fund). The UN projects that $1,366
million in cash ($917 million from active missions, $306
million from closed missions and $143 in the reserve fund)
will be available at the end of 2006. The UN expects that,
after liabilities are paid, there will be $73 million
remaining from closed missions that can be used for
cross-borrowing purposes. Unpaid assessments at April 30th
equal $1,640 million, including $488 million in assessments
issued earlier in the month.


4. As of April 30, 2006, the UN tribunals for Rwanda and
Yugoslavia had unpaid assessments of $142 million, as
compared to $150 million at the same time in 2005. The
Capital Master Plan received $41.8 million in payments as of
April 30th vs. assessments of $51.5 million (not including a
new $23.5 million appropriation approved in May 2006, for
which an assessment letter has not yet gone out).
BOLTON