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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 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 COE Reimbursement and Death and Disability Compensation
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 * Based on expenditure results to 2010/11 and approved budgets for 2012/13
Field Budget and Finance Division Department of Field Support
Support for Field Financial Requirements Strategic value-add Operational support to field
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.
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.
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.
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.
Principles of Budget Development Process • Empowerment/responsibilities of field missions. • Alignment of operational imperatives and resourcing. • Resourcing efficiency. • Budget Submission => Controller’s consideration.
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.
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
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
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
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)
COE Reimbursement and Death and Disability Compensation
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.
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%
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.
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
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