Identifier
Created
Classification
Origin
10USUNNEWYORK33
2010-01-21 14:37:00
UNCLASSIFIED
USUN New York
Cable title:  

FIFTH COMMITTEE ACTION ON THE 2010-2011 BUDGET

Tags:  PREL AMGT AORC UN KUNR 
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VZCZCXYZ0002
PP RUEHWEB

DE RUCNDT #0033/01 0211437
ZNR UUUUU ZZH
P 211437Z JAN 10
FM USMISSION USUN NEW YORK
TO SECSTATE WASHDC PRIORITY 8032
UNCLAS USUN NEW YORK 000033 

SIPDIS

E.O. 12958: N/A
TAGS: PREL AMGT AORC UN KUNR
SUBJECT: FIFTH COMMITTEE ACTION ON THE 2010-2011 BUDGET

REF: A. USUN 00005

B. USUN 00007

SUCCESS ON CRITICAL MANAGEMENT REFORMS AND PRIORITY USG
OBJECTIVES WITH MODEST GROWTH IN BUDGET.

UNCLAS USUN NEW YORK 000033

SIPDIS

E.O. 12958: N/A
TAGS: PREL AMGT AORC UN KUNR
SUBJECT: FIFTH COMMITTEE ACTION ON THE 2010-2011 BUDGET

REF: A. USUN 00005

B. USUN 00007

SUCCESS ON CRITICAL MANAGEMENT REFORMS AND PRIORITY USG
OBJECTIVES WITH MODEST GROWTH IN BUDGET.


1. (U) Summary: The main session of the 64th General
Assembly (GA) concluded early on the morning of December 24,
2009 with the adoption of a $5.16 billion 2010-2011 biennium
budget. The Secretary-General initially proposed a 2010-2011
budget of $4.88 billion. However, at the time of his initial
proposal, the SYG identified a number of add-ons that would
have potentially increased the initial budget proposal to
$5.3 or $5.4 billion. Such an increased budget would have
represented a growth of some 10% beyond the 2008-2009 budget,
which already represented a growth of some 15% from the
2006-2007 budget. USUN sought to restrain the overall
increase while ensuring priorities were met. Those priorities
included, among others, the strengthening of United Nations,
Department of Safety and Security (DSS) and the launching of
the Enterprise Resource Planning (ERP) system. USUN was
successful in restraining growth for the 2010-2011 budget to
$5.16 billion, which amounted to an increase of $357 million
(7.5%) from the final 2008-2009 budget. END SUMMARY

USUN SUCCESSFUL ON PRIORITY OBJECTIVES


2. (U) 2008-2009 Budget Reduced: As a result of the final
performance report and final re-costing, the final UN budget
for the 2008-2009 biennium was $4.799 billion --- a decrease
of some $85 million (see A/64/545). The following areas
showed the largest reductions:
International Cooperation for Development ($13.4 million);
Regional Cooperation for Development ($27 million); Human
Rights and Humanitarian Affairs ($14.5 million); Staff
Assessment ($26.6 million); Political Affairs ($8.7 million);
Safety and Security ($7.3 million); and the Development
Account ($5 million.)


3. (U) 2010-2011 Regular Budget Approved: A program budget
for the 2010-2011 biennium of $5.16 billion was approved and
represents a 7.5% increase from the 2008-2009 budget. The
largest increase by area included the Development Account
(22%),Safety and Security (19%),Political Affairs (13%),
Human Rights and Humanitarian Assistance (13%). Special
initiatives like the ERP project also received considerable
additional resources. The U.S., along with other major

donors, was successful in reasonably restraining growth in a
number of areas while at the same time identifying a number
of savings.


4. (U) DSS Gets Much Needed Funding: Over the last 18
months, DSS has operated without any increase in their
2008-2009 budget despite enduring attacks on UN personnel in
Algeria, Afghanistan, Pakistan and other missions and having
requested supplemental funding from the GA. This session,
the GA approved $242 million of the SYG,s requested $295
million, in line with the Advisory Committee on
Administrative and Budgetary Questions, (ACABQ)
recommendations for 2010-2011 and additional security needs.
The funding will allow U/SYG Starr to begin to implement his
new management priorities including training staff,
augmenting risk/threat analysis capacity and increasing
deployment of security personnel. An attempt was made by the
G-77 to continue to fund DSS at the 2008-2009 (maintenance)
level without any additional funding for urgent security
needs. They argued that it was premature for the Committee to
appropriate additional resources without having a complete
picture of worldwide security needs as well as the fact that
the SYG had indicated that he would be presenting additional
funding proposals for safety and security in regard to
Afghanistan and Pakistan during the first resumed session.
The US and others, including CANZ and Switzerland, argued
that additional resources were needed now to address
immediate security needs. In the end, the G-77 agreed to go
along with ACABQ recommended funding level, which the West
supported. The GA also approved the SYG,s request, which was
endorsed by the ACABQ, to utilize $7.9 million from the UNAMA
budget for a four-month period to meet immediate security
needs in Afghanistan. The amount taken from the UNAMA budget
will be replenished when the SYG submits his formal funding
proposal for emergency funding for Afghanistan and Pakistan
at the first resumed session of the 64th GA in March.


5. (U) Substantial Growth In Special Political Missions
including UNAMA and UNAMI: The SYG, in the budget outline for
2010-2011 initially requested $828.9 million. In line with
established practice, the GA only approved at this time the
2010 budgets for 27 Special Political Missions (SPMs) in the
amount of $569.5 million, a reduction of $30 million or five
percent from the SYG,s proposal of $599.9 million. Given
that the 2010 SPM requirements consumed most of the initial
biennium estimate and that needs are likely to go up for
2011, it is expected that the SPM budget for 2010-2011 could
be as high as $1.1 billion overall. The 2010 funding
includes $232 million for the UN Assistance Mission in
Afghanistan (UNAMA) and $159 million for the UN Assistance
Mission in Iraq.


6. (U) ERP Launched: The GA generally endorsed the SYG,s
proposal for moving forward with the implementation of his
long awaited ERP initiative. Despite initial reservations
from numerous delegations, the SYG received funding to launch
his Pilot First option, which was accepted as the most cost
effective and risk adverse approach to implementing this
major UN reform. This was a success for the U.S., which
strongly supported this approach throughout the negotiations.
The ERP will replace obsolete and redundant ICT platforms
with a single globally comprehensive system, and in the
process standardize Secretariat business processes and
administrative functions. It is also the backbone for
implementation of another key reform application: the
International Public Sector Accounting Standards (IPSAS). The
GA agreed to move ahead with the project by approving $24.1
million ($12 million in commitment authority) from the
regular budget and $28.5 million from the peacekeeping
support account. The GA also responded to the concern of the
U.S. and other delegations regarding potential cost overruns,
timeline of project implementation, and delivery oQhat has
been promised by imposing strict oversight on the project,s
management and requiring yearly progress reports. The GA also
required that all future resource requirements for ERP be
included in subsequent budget proposals. It also requested
the SYG to report at each session on expenditures incurred;
justification of the utilization of resources from the
peacekeeping support account; and optionsQr further
lowering the cost of the project.


7. (U) International Trade Centre Bolstered: The GA
approved additional resources for ITC for 2010-2011 ($29.7
million) in line with the recommendatiQof the ACABQ.


8. (U) Upgrading of NY Human Rights Office: The GA
approved the upgrade of the head of the Office of the High
Commissioner for Human Rights in New York from a D-2 to
Assistant Secretary Level. This upgrade was one of the
highest priorities for the U.S. and working with other
like-minded countries (CANZ, Switzerland, Norway),the U.S.
was able to obtain GA approval despite strong opposition from
India and others who opposed the upgrade on technical
grounds.

OTHER GAINS


9. (U) Budgetary Discretion Continued: The Committee
considered the SYG,s belated request to extend and increase
his budgetary discretion authority that had been granted in
2006 on an experimental basis. This authority allowed the SYG
to enter into commitments of up to $20 million during each of
the previous two biennia. The SYG provided information on his
use of Qority and requested it be expanded to $30 million.
Following the introduction of this item, which occurred very
late in the session, the G-77 proposed deferring it. They
argued that the Committee was not given adequate time to
consider the proposal and there were no valid reasons why the
request was so late. While most other delegations, including
the West, agreed in principle with the G-77,s concerns, they
did not support completely deferring the item. In the end,
the GA decided to extend the SYG,s existing authority for
three months and consider the SYG,s request in the first
resumed session.


10. (U) Associated Costs for the Capital Master Plan
Absorbed: Consistent with US objectives, the GA called for
any CMP &associated costs8 in 2010 to be absorbed within
the existing budget for the CMP.

SUCCESSES IN IDENTIFYING SAVINGS AND EFFICIENCIES

11: Recosting, Vacancy Rate and Other Efficiency Cuts: The GA
decided not to assess half of the amount subject to recosting
in 2010 which will save Member States approximately $44
million. The GA also raised the established vacancy rate from
6.5% to 9.6% for professional posts, 3.5% to 4% for general
service staff and 27.2 to 28.2 for field security staff in
order to more accurately reflect the staffing within the UN
and to address over-budgeting due to an inaccurate vacancy
rate. In addition, the GA reduced non-post resources by 2%
with the exception of the Development Account and the Office
of Central Support Services; reduced the use of consultants
by 7% for 2010-2011, and cut $1 million for external printing.


12. (U) No Supplemental Resources for ICT: The Office of
Information and Communication Technology (OICT) requested
supplemental resources for the implementation of Enterprise
Content Management (ECM) and Customer Relations Management
(CRM) initiatives. However, the GA decided not to
appropriate resources for this &add-on8, saving some $18

million. The EU, supported by the G-77, were intractable in
their opposition to these initiatives arguing that each could
be implemented with existing resources. The OICT must now
begin deploying these programs with existing resources during
2010 in order to avoid incurring penalties should some 10,000
user licenses already purchased go unused. The Assembly
requested that the SYG submit a new proposal for the 2012-13
biennium. A total of $1.5 million was approved for the
development of a unified disaster recovery plan for
maintaining the Brindisi enterprise data center.

DISAPPOINTMENTS


13. (U) Development Account: Throughout the session, the
G-77 questioned whether resources were being equitably
distributed among peace and security; development and human
rights and consequently proposed language that would have
increased the Development Account (DA) to $200 million from
its 2008-09 level of $18.5 million. While it was universally
understood that the figure was posturing by the G-77, the
West, in the end, sought to limit the growth of the fund to
around $5 million. The GA ultimately recommended that the DA
receive $5 million from the 2010-2011 regular budget and $7.5
million from unencumbered balances from the previous
biennium. The GA also decided to establish one P-5 and one
P-4 post to provide program support to the DA. These posts
were requested under the Development Pillar strengthening
proposal during the 63rd GA, but the GA took no decision on
them at that time. The G-77 was also particularly resolute in
supporting the United Nations support for the New Partnership
for Africa's Development and Least Developed Countries,
Landlocked Developing Countries and Small Island Developing
States.


14. (U) Policy Making, Direction and Coordination: The GA
decided to establish an Under-Secretary General's post at the
UN office in Nairobi, an issue of great importance to the
G-77. The Committee also agreed to establish a P-4 legal
research post for the Registry of the United Nations Dispute
Tribunal in New York.

OTHER ITEMS


15. (U) Israel Isolated On Funding For Human Rights
Council: Israel requested that a vote be held on PART V of
the budget resolution on special subjects. Part V of this
resolution took note of the SYG,s reports on financial
estimates resulting from resolution S-9/1 adopted by the
Human Rights Council during its ninth special session.
(Resolution S-9/1 called for an independent international
fact-finding mission, whose findings were later referred to
as the Goldstone Report, to be dispatched to Israel and the
Palestinian territories to investigate the military action
that had taken place in Gaza in December 2008). The vote was
136 in favor (U.S.),2 against (Israel, Guatemala) (Note:
Guatemala clarified that they had accidentally voted no, but
had intended to vote in favor),and 3 abstentions (Benin,
Cameroon, and Cote d,Ivoire). In an explanation of vote,
Israel said it could not support expenditure or allocation of
funds that endorsed and permitted the work of any such
mission that was established with predetermined conclusions.
The U.S. made an explanation of position and stated it voted
in favor because of its support for several activities that
were funded through Part V, including the mandate of the
independent expert in Sudan, the extension of the work of the
Special Rapporteur to the DPRK and Burma, and assistance to
Somalia in the area of human rights. The U.S. further
clarified that the vote should not reflect any change in
opinion on the outcome of the Goldstone Report. Following the
vote, the Fifth Committee adopted the resolution as a whole.


16. (U) Increase of International Staff for UNRWA: The SYG
requested three international posts for UNRWA to strengthen
its management capacity and in support of UNRWA,s
Organizational Development Plan. Following the submission of
the SYG,s request, UNRWA Commissioner General Karen AbuZayd
directly appealed to Member States to approve 11 additional
international posts for this same need and due to the fact
that bilateral voluntary funding for these positions were
expiring. The GA decided to approve the 3 posts requested by
the SYG as well as the 11 additional posts for a total of 14
for 2010-2011.


17. (U) Human Resources Management: Earlier in the session,
the General Assembly decided to defer consideration of the
human resources management (HRM) agenda item. As a result,
the G-77 attempted to use the budget resolution as a vehicle
for passing policy language that would normally be adopted in
an HRM resolution. Most troublesome policy paragraphs were
successfully defeated by the West. One paragraph was retained
requesting the Secretary-General not take measures on
geographic mobility until the GA had an opportunity to
consider the mobility policy. This paragraph was drafted in
response to revelations that the SYG intended to establish

high mobility requirements for senior officials as of 1
January 2010. In previous weeks, senior UN officials
privately approached USUN with concerns about the
requirements, indicating that their application would put
both internal candidates and female candidates at a
disadvantage. The Fifth Committee is expected to consider the
mobility policy along with other outstanding HRM issues
during the sixty-fifth session in fall 2010.


18. (U) Special Advisor for Africa: One cost-saving measure
proposed by the SYG and endorsed by the Office of Internal
Oversight (OIOS) to merge the functions of the Special
Adviser on Africa with that of the High Representative for
the Least Developed Countries, Landlocked Developing
Countries and Small Island Developing States was met with
resolute opposition from the G-77. The GA had disagreed with
this proposal during the 63rd GA and the G-77 were angered
that the idea was still being promoted by the SYG and further
promulgated by OIOS as a good idea that still merited
consideration. They urged the SYG to fill the Special
Advisor position immediately. This became a contentious issue
that was raised in almost all negotiations on various agenda
items including program planning. Subsequently, the GA
approved a program planning resolution that reiterated that
the OIOS should not propose changes to legislative decisions
and mandates already approved by intergovernmental bodies.

DEFERRED ITEMS


19. (U) Several items with budget implications were
deferred for action until the first resumed session in March.
Most notably among these items is the SYG,s proposal for $85
million emergency funding for strengthening safety and
security in Afghanistan and Pakistan. Also to be considered
is the SYG,s proposal to extend and expand his limited
budgetary discretion authority; the SYG,s report on
Procurement Activities and the five year review of OIOS.
RICE