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Budgeting and Finance Arrangements for UN Peacekeeping Operations

Budgeting and Finance Arrangements for UN Peacekeeping Operations. MPAC Induction Programme 4 October 2012. 1. Introduction – Outline of Presentation Overview of Field Financial Environment Field Budget and Finance Division Funding and Budget Development

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Budgeting and Finance Arrangements for UN Peacekeeping Operations

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  1. Budgeting and Finance Arrangements for UN Peacekeeping Operations MPAC Induction Programme 4 October 2012 1

  2. Introduction – Outline of Presentation Overview of Field Financial Environment Field Budget and Finance Division Funding and Budget Development COE Reimbursement and Death and Disability Compensation

  3. Overview of Field Financial Environment

  4. Field Resourcing - Emerging Challenges External Challenges: • Increasing complexity/size (mandates and cost) of field operations – affordability for Member States. • Slow mission implementation (under-spends). • TCC/PCC relationship => increasing financial implications. • Reliance on strategic partnerships and coordination/integration e.g. AU, EU, UN agencies, donor support. Internal Challenges: • Shift towards global/regional support framework - GFSS. • Greater alignment between support and operational imperatives. • Overhaul of UN accounting framework (IPSAS) and information systems (Umoja ERP). • Roles and responsibilities – Missions <=> FBFD <=> OPPBA.

  5. 5 * Based on expenditure results to 2010/11 and approved budgets for 2012/13

  6. Field Budget and Finance Division Department of Field Support

  7. Support for Field Financial Requirements Strategic value-add Operational support to field

  8. Field Budget and Finance Division (FBFD/DFS)

  9. Budget and Performance Reporting Service • Roles and Responsibilities • Coordination of funding processes/proposals for all peacekeeping operations and major political missions. • Liaison with the Controller and the Office of Programme Planning, Budgets and Accounts (Dept. of Management) • Support to Fifth Committee and ACABQ. • Resource planning support for new, transitioning and reducing missions. • Development and review of field financial and accounting processes and systems. • Support for recruitment, development and training of field financial personnel.

  10. Memorandum and Claims Management Section • Roles and Responsibilities • Coordination of MOU negotiations with TCCs/PCCs deploying formed units to peacekeeping operations. • Assessment of COE reimbursement payments. • Certification of death and disability compensation claims. • Certification of LOA claims, including payments for aircraft flying hours, ship days, and troop rotations. • Briefing and reporting to Member States on policies and procedures. • Coordination and support of the triennial COE Working Group.

  11. FBFD – Towards Strategic Financial Support • Guidance and coordination • Early agreement on Mission priorities and planning assumptions. • Strategic resource analysis • Establishment of standardised resourcing models. • Establishment of key resourcing benchmarks. • Major reviews of resourcing requirements. • Direct support for transitioning missions. • Capacity development • Recruitment of field financial staff • Consultative development of field issues and practices. • Support to depleted budgetary functions. • Liaison with Controller and support to Legislative Bodies • Cross-cutting explanation of resourcing requirements. • Awareness of operational conditions and priorities.

  12. Funding and Budget Development

  13. Peacekeeping Financing Model • Annual appropriation of expenditure by GA (July to June). • Resourcing requirements based on Security Council mandates. • Assessed contributions – specific peacekeeping scale. • Peacekeeping operations funded individually and separately. • Annual financial and performance reporting.

  14. Principles of Budget Development Process • Empowerment/responsibilities of field missions. • Alignment of operational imperatives and resourcing. • Resourcing efficiency. • Budget Submission => Controller’s consideration.

  15. Key Roles and Responsibilities Missions • Operational and resource planning • Costing of resources • Coordination with external stakeholders • Preparation of Budget Submission DPKO and DFS • Strategic guidance and oversight • Coordination and portfolio analysis • Expert and technical input • Augment field process (where needed) • Submission to Controller; support to Oversight Bodies Controller’s Office/OPPBA • Quality assurance • Consideration of proposed funding requirements • Preparation of reports to oversight and legislative bodies ACABQ (Advisory Committee on Administrative & Budgetary Questions):Examine & report on budgets submitted by the Secretary-General to the General Assembly. Fifth Committee: General Assembly’s consideration of administrative and financial matters.

  16. Process and Timelines Controller’s Instructions - July DPKO/DFS: • Issue procedural guidelines (DFS). • Issue strategic guidance (DPKO/DFS). • Issue Standard Costs and Ratios Manual (DFS). • Identify strategic shifts and major cross-cutting issues and priorities. Mission: • Preliminary operational planning. • Detailed budget instructions. • Convene Budget Committee. • Close financial accounts. • Evaluate previous performance => preparation of performance report. • Establish major resourcing priorities. August

  17. Process and Timelines August DPKO/DFS: • Strategic review of Mission’s priorities and planning assumptions. • Review and comment on Mission’s proposed results (RBB). • Detailed input by cost centres. Mission: • Identification of strategic priorities • Prepare and submit planned results (RBB) and major resource planning assumptions. • Detailed resource planning and costing – cost centres and other sections. • Identify and submit staffing changes and justifications. September

  18. Process and Timelines September/October DPKO/DFS: • Priorities Review by USGs for DPKO and DFS. • In-situ support to missions (Abacus). • Review and comment on Mission’s proposed staffing. • Review and comment on Mission’s draft Budget Submission. Mission: • Engagement with Abacus team • Consolidation/standardisation of initial resourcing proposals and cost estimates. • Review and adjustment by Budget Committee. • Consultation with UNHQ on draft Budget Submission. • Endorsement by Mission leadership. Budget Submission to Controller - November

  19. Process and Timelines November November to January: Review by Controller’s Office January: Submission of budget documents to ACABQ February to April: ACABQ’s review of budget and Performance Report April to June: Fifth Committee’s review of Budget and Performance Report June (following year)

  20. COE Reimbursement and Death and Disability Compensation

  21. Principles of COE Reimbursement Process • Payment for ‘lease’ of major equipment, self-sustainment, and medical support. • Reimbursements paid only when required MOU in place. • Reimbursements processed from the end of each quarter (ending Mar, June, Sept, Dec); paid one further quarter later. • Verification reports from Missions – basis for calculating and processing claims. • Actual payments dependent on availability of cash as determined by the Controller. • Missions individually funded. • All TCCs/PCCs for a mission paid at same time. • Usually full quarterly payment.

  22. Current caseload (COE and D&D) • Number of formed units under MOU – 380 • Number of COE claims each year – 2,700 • Number of D&D and LOA claims each year – 300 • Value of COE, LOA and D&D claims each year - $900 million • Proportion of COE costs (incl. self-sustainment) to total PK budget – 12%

  23. Death and Disability Compensation • Resolution A/RES/64/269 • Death – payment of $70,000. • Disability – percentage of $70,000 based on proportion of permanent impairment. • TCC/PCC must submit a claim. • Payments to be transferred to the injured or family.

  24. Next COE WG is scheduled for 20 – 31 January 2014 November 2011: National Cost Data forms / templates were sent to Member States for completion – 2012 should be used as base year for costing equipment. 31 May 2013: Member states should have submitted their National Cost Data to Secretariat, or should have completed the “Form to Elect to use COE manual rates”. 31 August 2013: All issue papers for discussion at the WG should be submitted to Secretariat. November 2013: Secretariat forwards WG agenda, final consolidated national cost data and Issue papers to Member states. 12 October 2012: Informal briefing to Member States (NLB Conf. Rm. E at 10:30am). COE Working Group - 2014

  25. Contingent Personnel Reimbursements => Senior Advisory Group Resolution 65/289 recognises financial burden placed on TCCs/PCCs. Last review of troop costs in 1992, with an ad-hoc increase in 2002. GA provided one-time supplemental payment of $85 million to TCCs/PCCs for 2011/12. • -additional one time payment of $60 million for first nine months of 2012/13 Established Senior Advisory Group • to consider rates of reimbursement to troop contributing countries and related issues • has recently begun its work • GA called for completion of work by March 2013 26

  26. Questions and Answers

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