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DE RUCNDT #0640/01 2152233
ZNR UUUUU ZZH
R 032233Z AUG 07
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC 2398
INFO RUEHNR/AMEMBASSY NAIROBI 0637
RUEHGV/USMISSION GENEVA 2815
RUEHUNV/USMISSION UNVIE VIENNA 0676

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