VZCZCXYZ0027
PP RUEHWEB

DE RUCNDT #0089/01 0342245
ZNR UUUUU ZZH
P 032245Z FEB 09
FM USMISSION USUN NEW YORK
TO SECSTATE WASHDC PRIORITY 5763

UNCLAS USUN NEW YORK 000089 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC KUNR PREL
SUBJECT: FIFTH COMMITTEE ACTION ON THE 2008/2009 BUDGET 
 
¶1. Summary:  The main session of the 63rd General Assembly 
concluded early morning on December 24, 2008. The Fifth 
Committee considered an extraordinary number of proposals 
most of which were deferred from the Main session of the 62nd 
General Assembly (GA).  At the outset of the session, the 
Organization was faced with a possible increase of $1 billion 
to the initial 2008-2009 budget approved by the 62nd GA, 
which would have reflected a 25% increase from the final 
2006-2007 budget.  The U.S. working with most Western States, 
particularly Japan, sought to limit the growth of the 
2008-2009 budget to approximately 15% bearing in mind that 
additional costs relating to Special Political Missions 
(SPMs) approved by the Security Council would alone increase 
the budget approximately 10%.  In the end, the 63rd GA 
approved $657 million in additional appropriations. Combined 
with the funding approved in the first resumed session of the 
62nd GA in March 2008 of $36 million, the total additional 
amount approved for the 2008-2009 biennium is $693 million. 
The overall 2008-2009 biennium budget now stands at $4.86 
billion. This represents an increase of 16.6% from the final 
2006-2007 biennium budget. However, because $45 million may 
not be assessed this year under the formulas adopted, the 
total amount assessed under the 2008-2009 biennium may be 
only $648 million, which would result in a 15.5% increase 
from the final 2006-2007 budget.  The GA invited the 
Secretary General to prepare the 2010-2011 biennium budget on 
the basis of a preliminary estimate of $4.87 billion.  Below 
is a summary of proposals adopted during the 63rd main 
session. More detailed reports are provided in SEPTELs on 
individual important proposals. END SUMMARY. 
 
REGULAR BUDGET 
 
¶2. 2010-2011 Budget Outline: The GA approved an estimate of 
$4.87 billion as the basis for the 2010-2011 budget. The GA 
also reaffirmed that the budget outline should be 
comprehensive and requested the SG to submit an annex on SPMs 
containing an updated estimate of the total 2010-2011 budget 
for such missions at the beginning of the 64th session as 
well as the total amount of resources needed to fully 
implement all mandated activities. USUN was not successful in 
having formal budget proposals from the Secretary General not 
yet approved by the GA included in the budget outline, 
despite widespread earlier agreement among Member States that 
in order to have a complete and transparent budget process 
these costs should be included in the budget outline to avoid 
a piece-meal approach to the budget that occurred in relation 
to the 2008-2009 budget.  As we understand, most Member 
States, including the major contributor States, were 
determined to keep the budget that would be initially 
presented to their capitals as low as possible.  The GA also 
requested the SG to issue future budget outlines no later 
than November 15 in off-budget years, if not sooner, 
emphasizing that the budget outline should be submitted 
sufficiently early in order to be a practical tool in the 
budget preparation process.  In this same resolution, the new 
level of the contingency fund was set at $36.5 million. 
 
¶3. Conditions of Service and Compensation for Officials Other 
than Secretariat Officials: This resolution requested the SG 
to revise the Pension Scheme Regulations for ICJ Members and 
the judges and ad-litem judges of the International Tribunal 
for the Former Yugoslavia (ICTY) and the International 
Criminal Tribunal for Rwanda (ICTR).  It further decided that 
any changes to the pension scheme would only apply to ICJ 
Members and the judges and ad-litem judges of the ICTY and 
the ICTR, but would not constitute a precedent for any other 
category of judges working in the UN system.  The GA included 
a prohibition on these judges receiving a pension at the same 
time they were currently serving on the ICC. This issue will 
be reviewed again at the 65th UNGA session.  Any expenditures 
resulting from this change will be reported in the final 
performance reports of the 2008-2009 budget and of the ICTY 
and ICTR. 
 
¶4. Development:  This resolution was the top priority for the 
G-77 for this session. The G-77 argued initially for approval 
of all 152 posts requested by the SG plus the retention of 
two posts proposed for elimination (the Special Advisor for 
Africa and assistant). However, after submitting a draft 
resolution for approval of all of those posts, in violation 
of the principle of consensus that normally governs the work 
of the Fifth Committee, the G-77 settled for ninety one new 
posts as well as retention of the Special Advisor on Africa 
(Under Secretary General level.)  The G-77 also agreed to the 
reduction of costs for travel, consultants, experts and 
contractual services, excluding the regional commissions. 
The establishment of approved posts will be staggered with 
posts for the regional economic commissions to be established 
effective January 1, 2009 and posts for DESA, LLDC/SIDS, 
NEPAD and UNCTAD to be established effective July 1, 2009. 
The resolution also requests the SG to report on the 
implementation of this resolution in the 2012-2013 budget. 
These decisions will cost $9.7 million for 2009 and 
 
approximately $22.2 million for 2010-2011. 
 
¶5. Department of Political Affairs: The General Assembly 
decided to strengthen the Department of Political Affairs by 
approving 49 new posts of varying levels with specific 
directions on posts and makeup of divisions. These decisions 
will cost $6.2 million for 2009 and approximately $17 million 
for 2010-2011. 
 
¶6. Information and Communications Technology (ICT)/Enterprise 
Resource Planning (ERP): The GA approved $20 million for the 
implementation of ERP comprising $5.1 million from the 
2008/2009 regular budget, $7.1 million from the July 
2008/June 2009 peacekeeping support account, and $7.8 million 
from 2008/2009 extrabudgetary resources.  The GA approved 
$2.3 million in interest accrued under the Integrated 
Management Information System Fund to be applied to the $5.1 
million requirement.  The remaining $2.8 million is to be 
absorbed within existing resources and reported on in the 
final performance report for the 2008-2009 biennium. 
 
For the Enterprise content management project, The GA 
approved $2 million to be absorbed within regular budget 
existing resources and reported in the final performance 
report.  For disaster recovery and business continuity, the 
GA approved $7.1 million for the establishment of a new 
primary data center on the North Lawn comprising of $5.7 
million from the regular budget to be absorbed from within 
existing resources and reported in the final performance 
report and $1.4 million from the peacekeeping support 
account. The GA noted its deep regret that the Secretary 
General entered into a long-term lease for a secondary data 
center before the site's viability had been fully established 
and its concern that the delay in identifying an alternate 
site could lead to further costs including costs to the 
Capital Master Plan, and risk to data.  The GA urged the 
Secretary General to explore alternative uses for the leased 
space as a matter of urgency. 
 
In addition, the GA approved $2.5 million to be absorbed 
within existing resources under the regular budget and 
reported in the final performance report for disaster 
recovery and business continuity services to UN Headquarters, 
offices away from headquarters and field missions.  The GA 
further noted with appreciation the Government of Spain's 
commitment and approved a secondary active telecommunications 
facility at Valencia to support peacekeeping activities.  The 
budget requirement of $149 thousand for the establishment of 
this site will be funded from within resources approved for 
the UN Logistics Base for the period of July 1, 2008 - June 
30, 2009. 
 
¶7. Human Resources Management: A new HR regime, primarily to 
enhance the UN's ability to recruit and retain staff in the 
field, was adopted at a cost of $13.2 million which is 
included in the SPM budget and $80.9 million under the 
peacekeeping budget. See Septel USUN 0011. 
 
¶8. UN Common System: The GA approved a revised base/floor 
scale of gross and net salaries for staff in the professional 
and higher categories; a revised level of the hardship, 
mobility and non-removal allowances; and a revised flat-rate 
allowance for children and secondary dependent's allowances. 
Any costs incurred as a result of these decisions will be 
reported in the final performance report for the 2008-2009 
biennium. 
 
¶9. Administration of Justice: The GA approved complete 
overhaul of the organization's internal justice system for 
resolving employment-related disputes.  The GA requested that 
any costs implications resulting from this action be absorbed 
from within existing appropriations and actual costs reported 
on in the final performance report. The GA also requested the 
Secretary General to conclude cost-sharing agreements with 
the relevant Funds and Programs by June 30,2009. See Septel 
USUN 0030. 
 
¶10. Special Political Missions (SPMs): The GA approved 
budgets for 27 SPMs totaling $429,497,600.  The GA took note 
of an unencumbered balance of $15,850,800 for 2008 and 
decided to appropriate $413.6 million under the regular 
budget. The GA also approved a commitment authority of $5 
million for design work for the headquarters facilities for 
the UN Assistance Mission in Iraq.  According the 
Secretariat, there will be additional resource requests for 
SPMs in the next resumed session in March 2009. 
 
¶11. Program Budget Implications and Revised Estimates to the 
2008/2009 Biennium:  The program budget implications (PBIs) 
and revised estimates that were charged against the 2008-2009 
contingency fund this past session amounted to $7.069 
million.  With these recent charges, $5.12 million remains in 
the contingency fund for the 2008-2009 biennium. The PBIs and 
revised estimates included funding for a rule of law unit 
 
($575K); Durban II ($642.7K); Convention on the Elimination 
of All Forms of Racial Discrimination (CERD) ($404K); 
extension of the mandate for the SRSG for Children and Armed 
Conflict ($2.05M); Committee on the Rights of the Child 
($546K); Human Rights Council decisions ($1.85M); and  the 
Convention on the Rights of Persons with Disabilities ($1M). 
Another PBI that was considered, but costs were absorbed 
included the arms trade treaty. The United States called for 
a vote on the arms trade treaty PBI and voted no. Israel 
called for a vote on the Durban PBI and the U.S. voted no 
along with Israel and 6 other countries. The U.S. 
disassociated from consensus on the Committee on the Rights 
of the Child and the CERD PBIs. 
 
ITEMS NOT INCLUDED IN THE REGULAR BUDGET: 
 
TRIBUNALS 
 
¶12. Financing of International Criminal Tribunal for Rwanda 
(ICTR):  The GA approved an revised estimate of $38 million 
for 2008-2009 which brings the total appropriation for the 
ICTR to $305.4 million.  The assessment for 2008 was $136 
million and for 2009 it is $169.3 million. However, the GA 
decided that Member States' respective share of the Tax 
Equalization Fund as well as the increase in the estimated 
staff assessment in the amount of $15.7 million shall be 
applied to the Member States' apportionment. 
 
¶13. Financing of the International Tribunal for the Former 
Yugoslavia (ITY): The GA approved a revised estimate of $28.7 
million for 2008-2009 which brings the total appropriation 
for the ITY to $376.2 million.  The assessment for 2008 was 
$173.7 million and for 2009 it is $202.3 million.  However, 
the GA decided that Member States' respective share of the 
Tax Equalization Fund as well as the increase in the 
estimated staff assessment income in the amount of $21.2 
million shall be applied to the Member States' apportionment. 
 
PEACEKEEPING MISSIONS 
 
¶14. Financing of UN Mission in Ethiopia and Eritrea (UNMEE): 
The GA noted the Security Council decision to terminate the 
UNMEE mandate effective July 31, 2008 and decided to reduce 
the July 2008/June 2009 appropriation of $100.4 million to 
$37.02 million as well as the staff assessment income from 
$2.3 million to $1.1 million.  The GA then further decided to 
apportion among Member States $28.7 million for the period 
from August 1, 2008 - June 30, 2009 in addition to the $8.75 
million already apportioned from July 1-31, 2009. The GA also 
decided that Member States' respective share of the Tax 
Equalization Fund of the estimated staff assessment income of 
$916 thousand for the period of August 1, 2008- June 30, 2009 
shall be applied to the Member States' apportionment.  The GA 
will keep this item under review. 
 
¶15. Financing of the African Union-United Nations Hybrid 
Operation in Darfur (UNAMID): The GA decided to apportion 
among Member States $449.86 million for the period of January 
1 - June 30, 2009.  This is in addition to the amount of 
$919.4 million already apportioned to Members States. The GA 
also decided to authorize the Secretary General, upon advice 
of the Controller, to assess Member States, as required, a 
further amount of up to $200 million for operations for the 
period of January 1 - June 30, 2009.  The GA will keep this 
item under review. 
 
UN PENSION SYSTEM 
 
¶16. The GA approved an additional $2.2 million for the UN 
Joint Staff Pension Fund which will be covered by Fund 
resources and not charged against the regular budget. This 
action brings the total amount appropriated for the Fund in 
2008-2009 to $153 million.  The GA also approved changes in 
Fund benefits such as streamlining provisions governing 
family or former family members and allowing participants who 
return to active contributory services after a period of 
disability to count the disability period as contributory 
service without having to pay contributions for that time. 
In regards to investments, the GA approved the inclusion of 
contractual settlement provisions in the agreement with the 
Global Custodian of the Fund and welcomed the continued 
effort by the Secretary General to diversify its investments 
between developed and emerging markets. But the GA stressed 
the need to ensure that, under the current volatile market, 
investment decisions should be implemented cautiously taking 
into account the four main criteria for investment - safety, 
profitability, liquidity, and convertibility. 
 
DEFERRED ITEMS 
 
¶17. A few items with budget implications were deferred for 
action in the next resumed session in March, such as the 
Secretary General's proposed accountability framework and the 
contingent liability reserve for the United Nations Postal 
 
Administration. 
Rice