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Budgeting and Finance Arrangements for UN Peacekeeping Operations

Budgeting and Finance Arrangements for UN Peacekeeping Operations. MPAC Induction Programme 14 April 2011. 1. Introduction – Outline of Presentation Field Budget and Finance Division Overview of Field Financial Environment Overview of Budget Process

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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 14 April 2011 1

  2. Introduction – Outline of Presentation Field Budget and Finance Division Overview of Field Financial Environment Overview of Budget Process Reimbursement and Compensation of TCCs/PCCs

  3. Overview of Field Financial Environment • External Challenges • Increasing complexity/size (mandates and cost) of field operations – affordability for Member States. • Criticism of slow mission implementation (under-spends). • Reliance on strategic partnerships and coordination/integration e.g. AU, EU, UN agencies, donor support. • Internal Challenges • Shift towards global/regional support framework. • Greater alignment between support and operational (substantive) imperatives – UNHQ and field. • Overhaul of UN accounting framework (IPSAS) and information systems (Umoja ERP). GFSS

  4. Field Budget and Finance Division Department of Field Support

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

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

  7. 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.

  8. Memorandum and Claims Management Section • Roles and Responsibilities • Coordination of MOU negotiations with TCCs/PCCs deploying formed units to peacekeeping operations. • Calculation 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. • Coordination and support of the triennial COE Working Group.

  9. FBFD – Towards Strategic Financial Support • Procedures 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 and enhancement • Recruitment of field financial staff. • Consultative development of field issues and practices. • Support to depleted budgetary functions. • Liaison with Controller and support to Oversight Bodies • Cross-cutting explanation of resourcing requirements. • Awareness of operational conditions and priorities.

  10. Funding and Budget Development

  11. 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.

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

  13. 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.

  14. 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

  15. 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

  16. 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

  17. 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)

  18. COE Reimbursement and Death and Disability Compensation

  19. Principles of COE Reimbursement Process • Payment for ‘lease’ of major equipment, self-sustainment, and medical support. • Reimbursements processed 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 paid at same time. • Usually full quarterly payment.

  20. Current caseload • Number of units under MOU – 378 • 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 to a PK mission’s total budget – 12% to 22%

  21. Death and Disability Compensation • Formed units (troops and police) • 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.

  22. Death and Disability Compensation • Military Observers/Civilian Police • Resolution A/RES/64/269- FBFD now processes • Death – payment of $70,000. • Disability – percentage of $70,000 based on proportion of permanent impairment. • TCC/PCC must submit a claim/behalf of injured or family. • Payments to be transferred by TCC/PCC to the injured or family.

  23. Meetings took place 17 - 28 January 2011 354 technical experts /95 Member states Conducted a comprehensive review of the reimbursement rates for Major Equipment , Self-sustainment and Medical support categories Details on proceedings contained in A/C.5/65/16 Key outcomes Major Equipment - 1.3%increase in rates Self-Sustainment - 2.1% increase in rates Impact of new rates on the 2011/12 peacekeeping budget $15.6 M If all the recommendations of the Working group are approved by GA. 2011/12 Peacekeeping budget will increase by $16.3 M COE Working Group

  24. Questions and Answers

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