UN/MANAGEMENT REFORM: U.S. JOINS CONSENSUS IN JULY

UNCLAS USUN NEW YORK 001346

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: AORC UUNR UNGA
SUBJECT: UN/MANAGEMENT REFORM: U.S. JOINS CONSENSUS IN JULY
7 GA ADOPTION OF MANAGEMENT REFORM RESOLUTION

REF: 07/07/06 IO-USUN E-MAILS


1. (U) USUN, as instructed (ref e-mails),joined other
General Assembly members July 7 in adopting by consensus a
resolution (A/C.5/60/L.67) supporting a number of management
reform measures recommended by the Secretary-General in his
report on "Investing in the United Nations for a Stronger
Organization Worldwide: Detailed Report" (A/60/846). Among
the new agreed measures were:

- a decision to allow the Secretary-General, on an
experimental basis, limited budgetary discretion to utilize
shift up to $20 million per year from savings and
efficiencies for general temporary assistance to respond to
evolving needs of the Organization;
- UN adoption of international public accounting standards;
- creation of a new post of Chief Information Technology
Officer to oversee improvements in UN information and
commmunication technology functions;
- replacement of the current Integrated Management
Information System with a new enterprise resource planning
system;
- funding for temporary assistance to improve UN procurement
practices;
- increase in the Working Capital Fund to $150 million,
financed from budget surpluses and assessments;
- full operationalization of the Ethics Office;
- preparation of a single annual Secretary-General's report
on the work of the Organization;
- a request for a comprehensive SYG report to facilitate
Member State and public acess to UN documentation and
information; and,
- a commitment to take action to ensure the operational
independence of the Office of Internal Oversight Services
(OIOS).

The budgetary implications of this resolution amount to
$4,433,100.


2. (U) The GA deferred consideration until the 61st UN
General Assembly session of additional reforms proposed by
the Secretary-General on financial management practices,
including consolidation of UN peacekeeping accounts and
increases in the peacekeeping reserve fund; modification of
commitment authority; and establishment of a reserve fund
within the context of the 2008-2009 regular budget. The GA
also delayed action on additional reforms in the areas of
procurement, human resource management and
oversight/governance/accountability, pending its receipt and
detailed analysis of SYG and other reports on these issues,
including the independent external evaluation of UN audit and
oversight capabilities being prepared by Price Waterhouse.
Ambassador Wallace, speaking following the GA vote, voiced
concern over the lack of agreement on ensuring budgetary
independence for OIOS, increased measures to achieve
effective procurement reform, and financing costs associated
with establishment of a new post of senior information
technology officer from previously authorized funds. By
contrast, the South African delegate, on behalf of the Group
of 77 and China, also spoke after the GA vote, listing all
the reforms achieved since world leaders agreed to the
Outcome Document in September 2005, and the critical role
played by the G-77 in achieving these objectives.


3. (SBU) Of the seven issue-specific addendum reports
detailing the SYG's specific recommendations outlined in
"Investing in the UN" (A/60/692),GA members only focused
discussions leading to the July 7 resolution on proposals
contained in addenda 1 through 4 (information and
communication technology, budget implementation, financial
management practices, and improving reporting mechanisms
including public access to UN documentation). Some of the
draft language, including on ICT, improved reporting and
public access, and financial management practices, that was
jointly proposed during negotiations by the U.S., Japan and
Australia was incorporated in the final document. However,
members of the G-77 resisted repeated U.S. efforts to secure
consensus support for language twice advocated by the
Advisory Committee on Administrative and Budgetary Questions
(A/60/7/Add.23, A/60/870) that would have called upon OIOS to
submit its proposed 2008-2009 budget to the GA without
Secretariat review, as well as language that would have

SIPDIS
created new permanent posts in the area of procurement to
reform and improve current practices. The G-77, claiming no
action could be taken until the release of the independent
external evaluation of audit and oversight capabilities of
the UN, also opposed U.S. attempts to include language that
urged the SYG to begin indentifying candidates for the
Independent Audit Advisory Committee (IAAC). As a
consequence, the GA will not address these issues until the
61st session.



4. (SBU) Comment: While the atmosphere and dynamics of the
negotiations that resulted in the July 7 GA adoption of the
resolution text were less acerbic and combative than the
bitter disputes surrounding the GA's May 8 adoption of the
resolution (A/RES/60/260) prompted by the SYG's original
March 7 "Investing in the UN" report, a resolution the U.S.
and 49 other Member States opposed, the G-77 again rejected
any attempts by the U.S. and others to press forward in any
meaningful way with the management reform agenda. The G-77
publicly touted its full support for UN reform while
continuing privately to resist disruption of the status quo.
There are few signs on the horizon that the G-77 approach
will change anytime soon. End comment.
BOLTON