ACABQ COMPLETES REVIEW OF SYG'S PROPOSED BUDGET

UNCLAS USUN NEW YORK 000640 SIPDIS SIPDIS E.O. 12958: N/A TAGS: AORC UNGA SUBJECT: ACABQ COMPLETES REVIEW OF SYG'S PROPOSED BUDGET FOR THE BIENNIUM 2008-2009 ¶1. Summary: The Advisory Committee on Administrative and Budgetary Questions (ACABQ) held its spring session May 15 - July 27 2007. The session primarily focused on the Secretary General's proposed budget for the biennium 2008-2009 (A/62/6). It held extensive hearings with Secretariat officials and studied numerous documents in completing its analysis of the proposed budget. While the Advisory Committee could have taken a more proactive approach in promoting specific budgetary and management reforms in the context of the budget review, given the scope of work and time pressure as well as the limited experience of some of the members, the Committee chose to limit its comments and recommendations largely on post and non-post resources. With regard to non-post resources, the Advisory Committee continued its focus on system-wide concerns, including, inter alia, use of consultants, travel, training, external printing and information technology. After prolonged consideration of the proposed budget, the Advisory Committee found itself largely in agreement with the overall level of the budget proposed by the SYG (recommendations are based on majority rule). As a result, the recommendations made by the Advisory Committee regarding posts and objects of expenditure have negligible financial consequences on the overall level of the proposed budget. Recommendations are contained throughout the ACABQ's report on the proposed budget for 2008-2009. Final costing of the ACABQ's recommendations is being prepared by the Secretariat. What is most notable about this budget submission is the absence of provisions for a number of other requirements which have been or will be addressed in separate reports. Many of which, if adopted by the GA, will have significant financial implications for the upcoming biennium. The ACABQ's report is scheduled to be issued in September. End summary. ¶2. For the biennium 2008-2009, the SYG proposes a program budget in the amount of $4,395,600,000 for the expenditure sections and $515,340,300 for the income sections (at 2008-2009 rates). On a net basis, the estimates total $3,880,259,700. The proposed 2008-2009 expenditure level of $4,395,600,000 as compared with the revised estimate for 2006-2007 of $4,173,895,900 reflects an increase of 5.3 percent. Upon inquiry, the Committee was informed that the estimated delayed impact in 2010-2011 of proposals in the proposed program budget for the biennium 2008-2009 is $34,700,800. To improve budgetary transparency and provide a more complete picture of the budgetary implications of proposals, the ACABQ is recommending to the GA that future budgets provide information on the full cost of budgetary proposals for each section. ¶3. In addition to the proposals contained in the proposed program budget, the GA will concurrently consider a number of other proposals that have been or will be addressed in separate reports. Decisions by the GA on these proposals will be integral to the implementation of the program of work for the biennium 2008-2009. These include, inter alia, the UN system of administration of justice, the implementation of an enterprise resource planning system, arrangements for business continuity and disaster recovery, revised estimates related to resolutions and decisions of the Human Rights Council, strengthening of OIOS, revised estimates related to resolutions and decisions of ECOSOC and revised estimates related to the updated terms of reference of the IAAC. The totality of resources required for the implementation of these additional proposals was not available at the time of the Committee's review of the budget proposal. While budget procedures (GA resolution 41/213 and 42/211) provide mechanisms for consideration by the GA of new mandates/activities/initiatives arising during the budget period, this year's piecemeal approach to the budget process is more pronounced than in the past. This approach does a disservice to member states in their consideration of the budget and, in particular, in determining resource requirements for priority activities. To ensure the integrity of the budget process and budget discipline, future budgets must reflect a more comprehensive and complete picture of the overall resources requirements for the budget period. ¶4. The budget estimates do not include the costs of peacekeeping and the international tribunals for the former Yugoslavia and Rwanda, which have separate budgets. ¶5. A staffing level of 9,993 posts is proposed under the expenditure sections by the SYG, which represents a net increase of 220 posts when compared with the staffing level for 2006-2007 of 9,676. The SYG, in his proposed budget, proposes the abolition of 35 established posts, the establishment of 248 new posts and the conversion of 7 positions to established posts from general temporary assistance. In addition, 2 temporary posts are proposed to be converted to established posts. Upon inquiry, however, the Committee was provided with additional information on the proposed new posts that indicated that many of these posts were in fact conversions from extrabudgetary posts or positions funded from general temporary assistance (GTA). This additional information differed significantly from that which was included in the proposed budget. It further clarified that a total of 49 posts are proposed to be converted from extrabudgetary funding and a total of 42 positions are proposed to be converted from general temporary assistance to established posts under the regular budget. While the Committee's review of the staffing requirements was focused on the SYG's proposed changes rather than looking at total staffing requirements, it did recommend, in some instances, that the request for the establishment of a new post be accommodated through redeployment, particularly in Departments with high vacancies or with large staffing complements. The Committee also called for reductions in general temporary assistance where conversions are proposed. ¶6. Twelve posts are proposed for redeployment between budget sections for 2008-2009, excluding the transfer of CEDAW posts from DESA (section 9) to OHCHR (section 23),which is treated as a technical adjustment to the base. With respect to reclassifications, six posts are proposed for upwards reclassification. ¶7. Reminiscent of past budget discussions, the Committee did not conduct a technical review of the post requests, but rather the members politically aligned themselves in support of certain posts. The end result being that most of the proposed staffing changes are being recommended for approval by the ACABQ. The ACABQ's report contains details on its recommendations regarding the staffing changes. ¶8. For purposes of budgeting, the SYG proposes a vacancy rate of 4.9 percent for professional staff and 1.5 percent for the general service staff and related categories for continuing posts. As of May 31, 2007, the overall vacancy rates in respect of regular budget posts were 6.3 percent for professional level posts and 4 percent for general service and related categories. While the ACABQ does not propose changes to the budgeted vacancy rates, there may be some room to massage these rates. In this regard, it is noted that a 1 percent movement in the vacancy factor represents some $16.3 million for professional staff and some $10.3 million for the general service staff. ¶9. As noted in paragraphs 5 and 6 above, there are a significant number of staffing changes being proposed. The ACABQ's report contains details on its recommendations regarding these changes. The following summarizes the recommendations taken regarding posts at the P-5 and above level, with some notable exceptions. --Section 1 (Overall policymaking, direction and coordination): The Committee endorses the SYG's proposal to convert three positions (1 P-3, 1 P-2 and 1 GS) currently funded from general temporary assistance to established posts for the Ethics Office. With this conversion, the Ethics Office would be staffed by 9 regular budget posts, including a D-2 head of the office. In addition, the ACABQ is recommending to the GA that the ACABQ Secretariat be strengthened. The staffing complement of the Secretariat has not changed for a number of years, despite the increase in the workload of the Committee. Efforts by some Committee members to include a request to enhance their conditions of service was successfully thwarted at the last minute. While the request didn't make it out of the Committee, it may resurface during the Fifth Committee's debate on the budget. --Section 2 (Department of General Assembly and Economic and Social Council affairs and conference management): A regular budget staffing complement of 2096 is proposed for DGACM (NYHQ's, Geneva, Vienna and Nairobi) for the biennium. During informal conversation with the USYG/DGACM, it was learned that conference servicing resources are managed directly by each duty station, thereby limiting the authority and accountability of the USYG/DGACM for the overall management of the Department. To correct this anomaly, the Committee, emphasizes in its report the importance that should be attached to the authority and accountability of the USYG/DGACM in the effective management of all of the resources in section 2 of the budget. The Committee concurs with the SYG's proposal to transfer the Office of Protocol and Liaison Services into the Department. It also concurs with the proposal to establish a D-2 post for the Director of the Cental Planning and Coordination Division in NY. Views differed considerably among the Committee's members on the request to establish 7 new P-5 posts for senior revisers through the conversion of temporary assistance resources. In the opinion of most members, there were no compelling arguments presented to support this request. Despite this, some members remained steadfast in their desire to provide these posts, ultimately a compromise was reached in which the ACABQ recommends approval of general temporary assistance equivalent to three P-5 posts. The Committee concurs with the SYG's proposals for Geneva, Vienna and Nairobi. With respect to Nairobi, the proposed establishment of 7 new posts is proposed in lieu of posts currently funded on a reimbursable basis from extrabudgetary resources of UNEP, UN-Habitat and other UN funds and programs. The continued strengthening of the Nairobi Office is in accordance with GA resolution 52/220 and 57/292. --Section 3 (Department of Political Affairs): Although the Committee was informed that the SYG is considering making proposals at a future date concerning the overall requirements of DPA, it concurs with the SYG's proposal to establish 3 new posts in DPA to meet immediate priorities. The Committee calls for greater cooperation and coordination between DPA and DPO, including the exchange of expertise between Departments. The Committee does not comment on Special Political Missions (SPM) as consideration of the estimates in respect of SPMs, good offices and other political initiatives will be considered in a separate report during the fall UNGA session. With respect to the Peacebuilding Support Office, 8 new posts and 7 conversions from general temporary assistance funding to established posts are proposed. After much debate, the Committee concurred with the SYG's proposal. --Section 5 (Peacekeeping Operations): ACABQ's report provides a revised organizational structure for both the Department of Peacekeeping Operations (DPO) and the Department of Field Support (DFS),taking into account the decisions in GA resolution 61/278, including posts, post levels and related sources of funding, as at July 1, 2007. The staffing complement of DPO for 2008-2009 includes 28 regular budget posts and 394 extrabudgetary posts, compared to 30 regular budget posts and 294 extrabudgetary posts in the biennium 2006-2007. The staffing complement of DFS for 2008-2009 includes 30 regular budget posts, as well as 405 extrabudgetary posts, compared to 32 regular budget posts and 344 extrabudgetary posts in the biennium 2006-2007. --Section 7 (International Court of Justice): The SYG's proposed budget includes the proposal to establish 11 new posts for the Court. While the Committee agrees to the establishment of one P-5 post of Senior Legal Officer to be placed in the Department of Legal Matters, it does not agree with the SYG's proposal to establish nine P-2 posts for Law Clerks. The Court currently has a pool of five P-2 Law Clerks and one P-3 Legal Officer for the Office of the President. The ACABQ has consistently held the view that the support the judges require can effectively be met by a pool of law clerks. While the Committee continues to support this approach, it recommends to the GA that the pool be increased by only three new P-2 posts. This was a compromise that was reached after hours of negotiations as some members had been approached by some of the judges. The persistent lobbying by some judges will undoubtedly continue into the Fifth Committee's deliberations. The Committee does not recommend support of the proposed reclassification of one P-4 post of Chief of Library to the P-5 level, but does agree to the merger of the Archives, Indexing and Distribution Division, currently headed at the P-3 level, and the Library Division, currently headed at the P-4 level, into the new Documentation Department. --Section 8 (Legal Affairs): The ACABQ recommends that the GA support the request for one new P-5 post as Special Assistant to the USYG and the internal redeployments proposed in conjunction with the proposed establishment of an Office of the USYG. The USYG convincingly argued that the long-standing arrangement of pooling resources from the Office of the General Legal Counsel and other offices within the Department in support of his immediate office is not practical nor feasible in view of the ever-increasing demands on the Department. --Section 15 (Human Settlements (HABITAT): The proposed reclassification of the post of Director of the NY Office from D-1 to D-2 proved to be hotly debated in the Committee. The current incumbent heavily lobbied some members, particularly the African members. As a result, the Committee discussed this proposed reclassification far too long. In the end, however, the Committee did not agree to the reclassification of the post as the sole justification provided in support of the reclassification was based on representational tasks involving attendance at meetings at various levels, This proposed reclassification will continue to haunt the Fifth Committee when it gets down to the inevitable "horsetrading" of posts in the final hours of negotiations. --Section 23 (Human Rights (OHCHR): A total of 36 new posts are proposed (18 in 2008 and 18 in 2009). At this time four of the new posts are proposed for the Human Rights Council Branch (HRC). The estimates proposed under this section will be for revisited during the biennium 2008-2009 as a result of decisions arising from the ongoing review by the HRC of its subsidiary machinery, which by a decision of June 18, 2007 would entail three components, namely the Universal Periodic Review, the HRC Advisory Committee and a strengthened victim-oriented complaint procedure; requirements relating to the implementation of HR decision 3/104 and resources for the implementation of two new conventions, the International Convention for the Protection of All Persons from Enforced Disappearance and the Convention on the Rights of Persons with Disabilities should they enter into force during the biennium. The Committee was informed that the phasing-in of the posts was intended to reflect the time required to complete recruitment, given the high number of current vacancies, and to build the new Office structure through the initial recruitment of managers and subsequently their staff. For 2008-2009, the organizational structure of the OHCHR is proposed to consist of four divisions, eight branches and other organizational units, with the establishment of a number of new senior management posts. With the exception of the following, the Committee concurs with the SYG's staffing proposals. The Committee does not agree with the proposed establishment of a D-1 post for Chief of Staff. The Committee was concerned that the functions may overlap with those of the Deputy High Commissioner. It also does not agree with the P-4 post requested for the NY Office. It found the description of the needs to be addressed through the establishment of this post to be exceedingly general. The Committee also does not concur with the proposed establishment of a D-2 post for the Director of the Special Procedures Division nor does it concur with the request of a general service post to support the Director. A convincing case was not made to demonstrate the need for this Division to be headed at the D-2 level. GA resolution 60/1 called for the strengthening of OHCHR through the doubling of its regular budget resources over the next five years with a view to progressively setting a balance between regular budget and voluntary contributions to its resources. The assumption in the proposed budget for 2008-2009 appears to be that the baseline against which the doubling of resources is to be measured is the appropriations for 2004-2005. This is consistent with the view previously expressed by the Committee. The GA has yet to pronounce itself on the appropriate starting point for the redoubling. The Committee also notes that past and present strengthening of OHCHR has focused solely on Headquarters and recommends that subsequent proposals should also concentrate on the Office's field presence. --Section 26 (Humanitarian Assistance): Three posts are proposed for conversion from extrabudgetary resources to regular budget funding. While the Committee does not object to these conversions, it notes that the proposed budget also includes 85 new extrabudgetary posts, for a total of 1,041 envisaged extrabudgetary posts and that the choice of these particular three posts for conversion appeared somewhat arbitrary. The Committee recommends that in the future such requests be accompanied by an indication of the essential elements that underpin the need for conversion. --Section 28 (Management and Support Services): Within the Office of Program Planning, Budget and Accounts (OPPBA),the SYG proposes the re-establishment of a one D-2 and one P-4 for the Office of the Deputy Controller to enhance the overall management of OPPBA. As background, the Deputy Controller post was abolished about 10 years ago when a decision was taken to remove the Treasury and Contributions functions from OPPBA. This decision was revisited at some point in time and subsequently both functions were brought back into OPPBA. The Committee concurs with the request for these two posts, as well as the request for a P-5 post in the Budget Division and a P-4 post in the Accounts Division to primarily focus on special political missions, and a D-1 post for the head of the Financial Information Operations Service. Turning to the Office of Human Resource Management (OHRM),a new organizational structure is proposed, comprised of the Office of the ASYG and four divisions, namely the Policy and Strategic Planning Division, the Recruitment and Staffing Division, the Learning and Development Division and the Medical Services Division. It is envisaged that each Division would be headed at the D-2 level. As a result, one new D-2 post is requested for the newly formed Recruitment and Staffing Division. While the Committee concurs with the reorganization and the need for this new Division to headed at an appropriately high level, it recommends that the functions and responsibilities of the proposed D-2 post be met through redeployment from within the Department of Management. It, therefore, does not recommend the establishment of this new post. It does concur with the request for the establishment of a P-5 post in the Division to focus on recruitment outreach activities. With respect to the Nairobi Office (UNON),the SYG proposes the establishment of 2 new posts and the conversion of 34 General Service/Local Level posts from extrabudgetary posts to regular budget posts. The conversions are based on GA resolution 52/220, which addressed the issue that UNON was mostly funded from extrabudgetary resources and requested the SYG to bring the financial arrangements of the Office in line with those of similar UN administrative offices. The gradual process of achieving this alignment was first reflected in the proposed budget for 2000-2001. If the GA approves this proposal, all professional posts and close to 37 percent of local level posts in UNON Administration would be funded from the regular budget. The Committee was informed that 144 local level posts and 3 national officer posts would still remain under extrabudgetary funding during the 2008-2009 budget period. --Section 29 (OIOS): The Committee provides an update of the staffing situation in OIOS to reflect the staffing changes adopted by the GA in its resolution 61/275. Of the fifty-four new posts proposed, 25 were approved by the GA in this resolution. The ACABQ takes exception to the budgetary procedures followed by the OIOS in presenting its proposed staffing requirements. In a number of cases, there is no relationship between the positions authorized in GA resolution 60/246 as general temporary assistance (GTA) and the functions now proposed to be established through redeployment and conversion to established posts. Positions funded from GTA are of a temporary nature and are intended for specific functions. Should these specific functions no longer be required, the related positions and resources should be surrendered. The ACABQ takes a conservative approach to the request for the establishment of new posts in OIOS. At this time it recommends that the GA approve the establishment of a P-5 post for Legal Officer and the conversion to establish posts of two GS posts in the Executive Office. For the following reasons, the Committee considers that this is not the appropriate time to act on the staffing proposals for 2008-2009: (i) OIOS requires a period of consolidation and reflection on the totality of its assets and needs, rather than continuing to make piecemeal requests for additional resources; (ii) OIOS is preparing a risk based workplan to be concluded by the end of 2007; (iii) the Investigations Division has been the subject of an internal review, but the conclusions in terms of structures and resource requirements are not yet finalized; iv) review of OIOS by the Board of Auditors is expected; and (v) the GA is due to select members to the IAAC in 2007 that will examine the workplan and review the budget of OIOS. The Committee believes it is advantageous first to allow these reviews to be concluded. Therefore, the Committee recommends that the SYG submit a comprehensive report to the GA at its 63rd session on the requirements of OIOS. --Section 30 (Jointly financed administrative activities and special expenses): The Committee concurs with the request for a P-5 Senior Personnel Policies Officer in the International Civil Service Commission (ICSC). The Committee does not concur with the request for two professional posts in the Joint Inspection Unit (JIU),as insufficient justification was provided. The JIU proposal was presented as "cost neutral" since it was proposed to abolish two GA posts in exchange for a P-2 and P-3 level posts. However, this assertion was found to be incorrect. The Committee recommends the retention of the GS research assistant post and the abolition of the GS registry clerk post, since the latter post was deemed no longer needed by the JIU. Resource requirements under this section of the budget are financed on an inter-agency basis. --Section 33 (safety and Security): The Committee concurs with the request for 8 new posts proposed by the SYG. In addition, the Committee received a separate note, dated June 14, 2007, from the SYG regarding the proposed reclassification of the D-2 Deputy to the USYG for Safety and Security to the ASYG level, effective January 1, 1007. The Committee recommends approval of this reclassification, however, with the effective date of January 1, 2008. ¶10. The Advisory Committee proposes limited adjustments to non-post resources in a number of budget sections. KHALILZAD