REGULAR BUDGET FOR THE BIENNIUM 2008-2009

UNCLAS USUN NEW YORK 000168 SIPDIS SIPDIS SENSITIVE E.O. 12958: N/A TAGS: AORC AFIN ABUD UNGA PGOV SUBJECT: REGULAR BUDGET FOR THE BIENNIUM 2008-2009 ¶1. (SBU) We have received informally a copy of a note from the Controller to the SYG's Chef de Cabinet that identifies an additional potential $1.1 billion in "add ons" to the 2008-2009 biennium budget. (See Paragraph 2). We understand that other Member States have also received the note or the attachment to the note listing the additional potential "add ons". ¶2. (SBU) Begin Text: Note To The Chef De Cabinet Regular Budget for the Biennium 2008-2009 ¶1. The General Assembly, at its 62nd session in December 2007 appropriated an amount of $4.17 billion. At that time, it recognized that the Secretary-General would need to revert to the Fifth Committee in 2008 to secure funding for special political missions already approved, but not funded for 2008 and subsequently for all approved special political missions for 2009. In addition, the assembly had before it papers requesting some $50 million for business continuity and $22.2 million for the Department of Political Affairs. Further, there are outstanding reports sought by the General Assembly for submission by the Secretary-General with respect to the following items: (a) ICT/ERP (b) Development Pillar (c) Accountability/results-based management/enterprise risk management (d) OIOS Finally, there are routine reports expected of the Secretary-General at mid-point of the biennium, revising SIPDIS estimates for currency and inflation in the context of the first performance report. ¶2. While it is difficult to make precise projections of the evolution of the programme budget during the rest of the biennium due to the unpredictability of intergovernmental initiatives requiring programme budget implication statements, it is apparent that should requests of Member States, as reflected in reports of the Secretary-General, be approved in the course of 2008, an addition to the regular budget could amount to as much as $1.1 billion. ¶3. It is my understanding from the USG/DM that the Secretary-General has been recently approached by the SIPDIS Permanent Representative of the USA on this matter and will also be meeting with the Permanent Representative of Japan next week. I further understand that the Secretary-General will be visiting Washington and at that time it is highly �A;likely that the issue of the budget level will be raised. It may further be predicted that Member States will propose increases which might be considered arbitrary as regards to the total level that the 2008-2009 budget may reach. ¶4. While the Secretary-General clearly needs to satisfy major contributors that budgetary discipline is in place and that only reasonable burdens will be placed on Member States, it is also important that the membership be reminded of the fact that expenditure requirements are generated strictly on the basis of mandates approved by Member States and within a budget that is traditionally adopted by consensus. The Secretariat in large part has no control over the level of SIPDIS expenditures requirements to meet the programmatic wishes of the membership. In particular, more than half of the projected increases are for actions taken by the security Council in respect of special political missions. In addition, the effect of unanticipated inflation and exchange rate fluctuations in the region of $100 million is also beyond the control of the Secretary-General. Other additional requirements in large part reflect emerging costs for modernizing the Secretariat as part of the management reforms already approved in principle by the General Assembly following the 2005 World Summit for investing in the United Nations. /s/ Warren Sach Assistant Secretary-General Controller 8 February 2008 Attachment: Potential add-ons to the programme budget for the biennium 2008-2009 Thousands of US Dollars Special Political Missions 2008 55,000.0 Special Political Missions 2009 500,000.0 Construction Baghdad 100,000.0 Information and Communications Technology Enterprise systems for the 56,000.0 United Nations Secretariat Worldwide Revised estimates: Disaster 50,359.9 recovery and business continuity for the United Nations Strategy and governance CITO tbd Human rights (Durban) 6,794.7 Strengthening of the Department 22,206.4 of Political Affairs (A/62/521) ACABQ on Strengthening of the (8,596.9) 13,609.5 Department of Political Affairs (A/62/521) Development Pillar 23,000.0 Accountability/Results-Based 1,500.0 Management Enterprise Risk Management tbd Security Panel tbd Unforeseen expenses 7,000.0 Detailed proposals for streamlining 7,600.0 United Nations contractual arrangements (A/62/274) Cuts non-absorption tbd Associated costs to Capital Master Plan 184,000.0 Revised estimates for currency and 101,000.0 inflation Total 1,105,864.1 *Includes conditions of service and compensation for official other than Secretariat officials members of the International Court of Justice (A/62/538) Balance in the contingency fund: $12,191,000. End Text. KHALILZAD