united nations secretariat consolidated report 2006...offer special thanks to the graphic design...

United Nations • New York, 2007

United Nations Secretariat

Consolidated Report2006

NoteThe designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

The term “country” as used in the text of this publication also refers, as appropriate, to territories or areas.

Mention of the names of firms and commercial products does not imply the endorsement of the United Nations.

Reference to “dollars” ($) indicates United States dollars, unless otherwise stated.

Materials in the publication may be freely quoted or reprinted, but acknowledgement is

requested together with a reference to the document. A copy of the publication containing the

quotation or reprint should be sent to:

United Nations Secretariat

c/o Under-Secretary-General for Management

Room S-2727

New York, NY 10017

U.S.A.

UNITED NATIONS PUBLICATION

Copyright © United Nations, 2007

All rights reserved

Contents Page

Foreword by the Secretary-General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Management’s discussion and analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Message from the Under-Secretary-General for the Office of Internal Oversight Services . . . . . . . . . . . . . 25

Performance section

Chapter

International peace and security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Economic growth and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Development of Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Promotion of human rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Humanitarian assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

International law and justice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Disarmament . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Drugs, crime and terrorism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Refugees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Organizational support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

General Assembly and conference management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

Safety and security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Public information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Resources by strategic programme activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Financial section

Message from the Controller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

Financial analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

Board of Auditors: Executive summary of report on peacekeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

iii

Acknowledgements

The preparation of this report was coordinated by Lena Dissin, Cass DuRant, Jade McLachlan

and Promela Suri.

Valuable contributions were made by Khaled Galal Abdelhamid, Jean-Jacques Arnaldez,

Preeta Bannerjee, Hans Baritt, Jason Bellone, Lionel Berridge, Melitta Borovansky-Koenig,

Susan Brandwayn, Anton Bronner, Jim Bradley, Christian Chartier, Augustus De Witt, Demba Diarra,

John Ennis, Paola Emerson, Rune Froseth, Axumite Gebre-Egziabher, Anand Goolsarran, Miguel Gordo,

Brian Gorlick, Violaine Haeringer, Patrick Hayford, Niklas Hedman, Kathryn Hinkle-Babul,

Matt Hochbrueckner, Masahiro Igarashi, Richard Kalina, Katharina Kayser, Carmel Kooros, Jared Kotler,

Martin Kraus, Hong Kwon, Susan Lamb, Florence Lee, Aimee Leung, Vivian Lewis, Caroline Lombardo,

Saahir Lone, Diane Loughran, Gerardo Mendoza, Eva Murray, Kai Nielsen, Andrew Nye, Uren Pillay,

Anne Marie Pinou, Alexandra Barahona Posada, Om Pradhan, Mark Quarterman, Arvin Ramchurn,

Raj Rikhy, Patrice Robineau, Camilla Schippa, Gnilane Senghor, Ashish Shah, Jim Sniffen,

Nishkala Suntharalingam, Emmy Takahashi, Mika Tapio, Sophie Veaudour, Janet Wieser, Urbain Zadi,

Nikolai Zaitsev.

The coordinators are particularly grateful to Tony Proscio, whose adroit assimilation and composition of

vast detail has resulted in a dynamic and concise account of the Secretariat’s performance. They also

offer special thanks to the Graphic Design Unit of the Department of Public Information for its initiative

and creativity in designing the report, and to the Department of General Assembly and Conference

Management for translating, proofreading and printing this document.

Foreword

Foreword by the Secretary-General, Ban Ki-moon

United Nations Secretariat Consolidated Report | 2006 v

The United Nations is famous — some may even say infamous — for pro-ducing large numbers of reports. They cover every imaginable subject of international importance, from specialized scien-tific or technical issues to overarching global threats and challenges. This report — now published for the second year — is unique in that it attempts to provide a consolidated

view of what the UN Secretariat did in the past year, telling the story in words, graphs, figures and pictures. It also combines programmatic and financial information, some-thing which all too often is lacking in our existing reporting practices.

Why is this important? The United Nations does not exist for its own sake, but to serve its Member States and help build better lives for people around the world. It is their organization, and they are the ones who ultimately pay for it. To earn and maintain the support of all stakeholders, we need to be able to declare in simple and straight forward language what the United Nations has done in the past year, and how its resources were used. We need to be able to connect the big headlines of the year with specific and concrete responses from the UN. We need to highlight unsung activities. And we need to paint a picture of how the United Nations itself is evolving and adapting to the ever-changing global environment.

Whether the reader is a parliamentarian preparing for a vote on UN financing, a del-egate from a Member State newly arrived in New York, a student writing a term paper, or a journalist covering global issues, I hope that this report will contribute to a better and deeper understanding of the Organization’s role and relevance to current challenges.

I also hope that this type of annual comprehensive report will prove useful to Member States in assessing the effectiveness of the Secretariat’s work. It is of course

vi United Nations Secretariat Consolidated Report | 2006

impossible to cover everything that has been done in a calendar year. But the present report provides a current and honest overview of the breadth of activities the UN carried out in the course of 2006. It also discusses how the Secretariat continued to reform in order to perform better.

One of the events in 2006 was of course the appointment of a new Secretary-General. I was deeply honoured to have been selected to lead this Organization. In my accept-ance speech, I told the General Assembly: “The true measure of success for the United Nations is not how much we promise but how much we deliver for those who need us most.” This report shows what the Secretariat delivered in 2006 with the resources entrusted to it. It is my hope that it will contribute to a strategic discussion on how we can do even better in the future.

Ban Ki-moonSecretary-General of the United Nations

United Nations Secretariat Consolidated Report | 2006 1

Management’s discussion and analysis

Background

This Consolidated Report provides a strategic overview of the Secretariat’s most significant accomplishments and challenges in 2006 and includes a frank analysis of the Organization’s performance, including lessons learned and corrective actions taken during the course of the year. It focuses on the actual results and progress made during the year in 10 strategic priority areas, and, together with the detailed account of the budget, expendi-tures and staffing, seeks to illustrate the value provided by the Organization in these important areas.

This section of the report provides a summary of highlights and performance, an analysis of finan-cial performance, and an account of the Secretariat’s response to key audit and oversight recommendations. The majority of the discussion here is supported by the detailed information found in the Performance and Financial sections that follow, alongside independent analysis by the Office of Internal Oversight Services and the Board of Auditors.

While it is essential to report on the Organization’s programmatic successes and challenges, it is equally important to discuss the management and organiza-tion of the Secretariat from a governance perspective. Such a discussion is particularly relevant for 2006, when, at the request of Member States, the Secretariat directly addressed challenges to its work caused largely by the dramatic expansion in the size and scope of its operations in recent years. For the Organization to cope with such fundamental change, comprehensive and far-reaching management reform is necessary, as proposed by Secretary-General Annan in his 2006 report to the General Assembly, entitled “Investing

in the United Nations: for a stronger Organization worldwide” (A/60/692).

In his report, Secretary-General Annan conceded that today’s United Nations is vastly different from the Organization that emerged from the San Francisco conference more than 60 years ago. Its normative work remains important and substantive. In the past decade, however, it has undergone a dramatic operational expansion in a wide range of fields, from human rights to development. Most notable has been a fourfold increase in peacekeeping. The United Nations today has a wide range of new missions, a $5.4 billion peace-keeping budget and 97,000 peacekeepers in the field — including more than twice as many civilian staff as are employed at Headquarters in New York. The United Nations, in short, is no longer a conference-servicing Organization located in a few headquarters locations. It is a highly diverse Organization working worldwide to improve the lives of people.

Such a radically expanded range of activities calls for a radical overhaul of the United Nations Secretariat — its rules, structure, systems and culture. While some progress has been made, there is much more to do. The staff members of the Organization — its most valuable resource — are increasingly stretched. And the existing management systems simply do not do them justice.

This section of the report covers the strategic reforms of the Organization, including governance and oversight; ethics, transparency and accountability; and the internal justice system. Reform in these areas is absolutely criti-cal to an Organization whose staff and responsibilities have grown significantly, whose physical presence is worldwide, and whose leadership is committed to build-


2 United Nations Secretariat Consolidated Report | 2006

ing a more transparent, accountable and results- oriented Organization. Those areas of the reform agenda that fall within the responsibility of the Department of Management, such as human resources and information and communications technology, are discussed in the “Organizational support” chapter of this report.

Governance and oversight

As implied above, it is widely acknowledged that the Charter of the United Nations and the missions and mandates of various UN entities have remained largely unchanged since the Organization was founded. It follows therefore that many of the associated govern-ing structures have been until recently based on these original foundations.

In order to assess whether the governance and over-sight structures are still appropriate and effective to meet modern-day challenges, including the increased scope and complexity of the overall UN system, world leaders requested at the 2005 World Summit an evalu-ation of governance and oversight within the United Nations funds, programmes and specialized agencies.

A Steering Committee of eminent experts in adminis-tration was established to conduct the indepen dent review, and the report of the Steering Committee was delivered to the Secretary-General in July 2006 (A/60/883/Add.1 and Add.2). It contained recommendations that were aimed at improving governance, strengthening manage-ment effectiveness and accountability, ensuring the bet-ter use of independent expert advice and strengthening the system of oversight. With specific reference to the Secretariat, the report proposed a series of interrelated and interdependent recommendations, including:

(a) The comprehensive implementation of results-based management;

(b) The strengthening of the overall accountabil-ity framework for senior management;

(c) The implementation of a framework for man-aging risk throughout the Organization, and assigning responsibility for internal controls;

(d) The prompt operationalization of the General Assembly decision to establish an Independent Audit Advisory Committee (IAAC);

(e) Twenty-three recommendations in relation to the Office of Internal Oversight Services (OIOS), including:

(i) Measures to strengthen the operational independence of OIOS, including the establishment of its workplan and budget on the basis of risk;

(ii) The strengthening of the working prac-tices of OIOS.

Many of these recommendations — including the creation of a robust IAAC and greater operational independence for OIOS — are, at the time of print, being considered by the General Assembly. In 2007, the Secretariat looks forward to making progress on other key recommendations, including the develop-ment of a programme for enterprise risk manage-ment and an internal control framework, a review of the Organization’s accountability framework, and the strengthening of results-based management. Collectively, these management reforms will have a significant impact on building a more transparent, accountable and results-oriented Organization.

Ethics, transparency and accountability

Along a parallel path, one of the principal underly-ing elements of the Secretary-General’s reform pro-gramme is to foster a culture of ethics, transparency and accountability. To that end, the Secretariat has been overseeing organizational integrity awareness-raising, ethics training and development of manage-ment accountability.

With respect to integrity and ethics, in October senior officials participated in a two-hour briefing, chaired by the Deputy Secretary-General and addressed by the Secretary-General. This briefing launched a series of half-day workshops, “Working Together: Professional Ethics and Integrity in Our Daily Work”, which com-menced on 7 November 2006. During a pilot phase of



this workshop earlier in the year, the Office of Human Resources Management (OHRM) and the Ethics Office collaborated to refine and adapt the substantive content of the workshop for all Secretariat staff members globally. The sessions provided a forum to discuss typical ethical issues and decision-making in the work environment and to promote a common understanding of profes-sional ethics and integrity among UN staff. OHRM and the Ethics Office worked with counterparts in the offices away from Headquarters to ensure that local facilitators would also be available to deliver this programme.

In addition to the new workshop, ethics training modules were incorporated into many existing learn-ing programmes on offer in the Secretariat, such as orientation for new staff, the human resources mod-ule, and management and leadership development programmes. OHRM and the Ethics Office also final-ized a user-friendly guide to the Organization’s “stand-ards of conduct”, which was also launched at the ethics briefing. This easy-reference guide draws attention to the conflict of interest rules detailed in the Secretary-General’s bulletin “Status, basic rights and duties of United Nations staff members” (ST/SGB/2002/13).

Another significant step forward along this path in 2006 is reflected in the report on the activities of the Management Performance Board (MPB) (A/61/319). The report outlined how the internal system of account-ability related to human resources policies and objectives was strengthened in order to hold programme managers accountable for their performance. At the end of 2005, the Board recommended the adoption of a redesigned senior management compact to form the basis for an annual assessment of performance of senior managers. In July 2006, the Board reviewed actual results against set targets in the 2005 human resources action plans and, on that basis, reviewed the 2006 compacts which were signed by senior managers. The MPB further rec-ommended a series of actions for follow-up and ensur-ing accountability for managerial commitments.

It is clear that an organization such as the United Nations, in the public eye and performing increasingly in the most demanding of circumstances, must move

towards an ingrained culture of ethics, transparency and accountability. The ongoing development in this area, showcased by the workshops, shows the desire to change and adapt the workforce and its standards of conduct.

Internal justice system

Initiatives directed at system-wide governance and the integrity and accountability of the workforce lead to the opposite end of the spectrum — cases where integ-rity and accountability have been called into question — in the appraisal of the efficiency and effectiveness of the Organization’s internal justice system. Again, as implied above, this system of recourse and employee dispute resolution has remained largely unchanged in the 60 years of the UN’s history. However, in recent years the system has been called into question.

At the end of the fifty-ninth session of the General Assembly in 2005, Member States asked the Secretary-General to establish a panel of external experts to consider redesigning the system of internal justice. The reasons for overhauling the current system were very compelling. First, UN staff currently have no access to their national courts in respect of employment-related grievances. The Organization is therefore required to provide its person-nel a legitimate recourse mechanism. Second, promoting the rule of law is an essential element of the UN’s own mandate. It should, therefore, practise internally what it preaches externally when handling disputes between its own staff and managers. And finally, the current system was designed at a time when the Organization employed only a few thousand staff, stationed mostly at Headquarters in New York. Now the system is expected to provide justice to over 55,000 staff within the broader UN family, more than half of whom are in field locations.

The “Redesign Panel”, composed of five eminent jurists, began its work in February 2006 and submitted its report to the General Assembly in July. It was unan-imous in its critical assessment of the current system, judging it to be “outmoded, dysfunctional and ineffec-tive” and lacking in independence. This was indeed a very serious diagnosis, which resonated with many staff and managers within the Organization.


According to the Panel, the existing system has several major deficiencies. Most notably, its protracted, overly centralized nature means that it takes an inordi-nate amount of time to settle a single case from the ini-tial administrative decision to the final judgement. It is based largely on an under-resourced peer review mecha-nism — through Joint Appeals Boards and Disciplinary Committees — that relies on the voluntary participation of staff and managers. Finally, the existing system does not do enough to encourage early resolution of disputes.

Overall, the Panel foresaw a new system that would be “professional, independent and decentralized” and would include:

• More emphasis on informal resolution of dis-putes before they escalate to advanced “litigation”. The Panel proposed significant strengthening of the Ombudsman’s office outside Headquarters, including in large peacekeeping missions. It also proposed the creation of a formal mediation capacity — a function not currently part of the existing system of justice;

• Replacement of the existing advisory bodies with a professionalized two-tier formal system — namely, a first-instance tribunal (the United Nations Dispute Tribunal) that issues binding decisions that either party can appeal to a sepa-rate Appeals Tribunal;

• A broader scope for the existing justice system, which does not currently provide recourse to large numbers of consultants and individual contractors, many of whom are engaged in field locations.

At the end of 2006, Secretary-General Annan was confident that a robust new system — properly resourced, designed and implemented — would lead to a management team that is more accountable and more professional and a workforce more committed and better able to deliver on the demands of the work-place. Secretary-General Ban agreed with the Redesign Panel that the existing system does not serve the needs of staff, managers and the Organization, and in early 2007 submitted his own note on the Panel recommen-

dations, with input from his managers and staff, to the General Assembly. This issue continues in 2007 to be a key focus of the Secretariat.

Operational expansion in practice

The discussion above concentrates largely on internal UN matters as a result of the increase in the Organization’s size and functions. More efficient, transparent and accountable internal structures are not mutually exclu-sive from the Organization’s field operations; they sup-port each other and are in fact entirely interdependent.

The first highlight in the Performance section of this report, in the chapter “International peace and security”, discusses the Organization’s multifaceted response to the crisis in Lebanon in 2006. That response involved, at the front end of operations, political- diplomatic, peacekeeping and humanitarian dimensions. While the Department of Political Affairs filled a key role in its extension of policy advice, analysis and critical diplomacy to bring the conflict swiftly to a close, the Department of Peacekeeping Operations was quick to react to the needs of the vastly increased troops in the United Nations Interim Force in Lebanon by estab-lishing a new structure, in consultation with troop con-tributors, to provide high-level military strategic advice and guidance to aid leadership.

Further in the report, there is to be found the detailed explanation of the ways in which the humani-tarian efforts of the UN intertwined with the politi-cal and peacekeeping efforts to the extent that a sub- collaboration of humanitarian speciality groups dem-onstrated its own effectiveness towards achieving a sat-isfactory outcome in Lebanon.

Throughout the crisis in Lebanon, the unit in the Economic and Social Commission for Western Asia (ESCWA) responsible for Conflict Related Issues (ECRI) was documenting the effects of the Israeli military opera-tions on Lebanon in order to serve as a practical reference to any future work for rehabilitation and reconstruction in the country. Immediately after the war, a series of brain-storming meetings and consultations resulted in a concept



paper entitled “Lebanon’s rebuilding and revival: a policy paper with initiatives”. The paper discussed political, social and economic dimensions of the conflict and presented a series of policy recommendations and project proposals which were welcomed by the Lebanese Government.

This issue perfectly illustrates the weight of the UN’s responsibilities in modern times and how vari-ous components of the Organization mobilized to coordinate a holistic approach to a complex situation.

It is important to emphasize that the success of field operations depends on solid structures at the helm of the Organization to support them. Although, for example, progress towards results-based management may seem abstract to the forces on the ground pursuing critical mis-sions, it is in fact precisely through results-based man-

agement that better systems are in place for the provision of adequate resources to achieve peacekeeping goals.

It is the complexity, scale and urgency of the expand-ing role of the United Nations in the world that call for a more modern and vigorous system of central man-agement. Ensuring that field operations are adequately supported, efficiently run, effectively coordinated and fully accountable is not solely a duty the Organization owes to its Members and donors. It is also the best way to ensure that those who rely on the UN’s front-line activities — victims of conflict or disaster, societies struggling for development and full participation in the global economy, communities seeking justice and fundamental human rights, and many others — will receive the best response that the international com-munity can offer.


United Nations regular budget 1

Overall expenditures for 2006 were about the same as in 2005. Higher salary costs partly attributable to a ➤

weaker United States dollar were offset by lower spending due to restrictions on expenditures in the first half of 2006, pending the General Assembly’s further consideration of the Secretary-General’s reform proposals.

Regular budget (dollars in millions)

2006 2005 2004

(As at 31 December)

Expenditures 1 904 1 898 1 714

Cash 2 193 158 (76)

Unfunded ASHI liability 2 073 3 2 073 3 1 485 4

The cash position showed some improvement but remained dependent upon timely receipt of assess- ➤

ments. At the end of 2006, cash on hand was equivalent to only five weeks’ worth of expenditures.

The accrued liability for after-service health insurance (ASHI) is based on actuarial valuations that are done ➤

every two years at the end of the biennium. The last valuation was done as of December 2005, and liabili-ties showed a 40 per cent increase in 2005 compared to 2003. The next valuation of the ASHI liabilities will be undertaken as of December 2007. As approved by the General Assembly, the accrued ASHI liability was recognized in the 2006 financial statements, and as requested, proposals for funding will be reintroduced at the sixty-second session of the Assembly.

1 Refers to the United Nations General Fund.2 Excludes Working Capital ($100 million) and the Special Account ($221 million in 2006).3 Refers to the end of 2005 accrued liability for ASHI costs, as estimated by an independent actuary.4 Refers to the end of 2003 accrued liability for ASHI costs, as estimated by an independent actuary.

Financial highlightsSummary of budget and expenditures for 2006

Total funds available for 2006 are estimated at $9.3 bil-lion, taking into account the various sources of fund-ing available to the Organization during the period, namely the regular budget, as well as budgets for peace-keeping operations, the International Tribunals, the Capital Master Plan project and other extrabudget-ary operations. Expenditure estimates for 2006 for the regular budget ($1.9 billion), peacekeeping operations ($4.6 billion), International Tribunals ($267 million), the Capital Master Plan project ($36.5 million) and

other extrabudgetary operations ($2.5 billion) total to $9.3 billion. In June and July 2006, the General Assembly approved additional regular budget appropriations relat-ing to special political missions and reform initiatives. It also approved the annual peacekeeping appropriations for the financial period starting in July 2006. The related staff-ing resources available during the period total to 34,407 posts, of which 9,647 relate to the regular budget, 13,522 to peacekeeping operations, 2,032 to the International Tribunals and 9,206 to extrabudgetary operations. Another 102 posts relate to income operations under the regular budget. Miscellaneous income and income from the staff assessment (regular budget, peacekeeping, International Tribunals) during the period are estimated to amount to $388.2 million.



Peacekeeping operations 5

Overall expenditures rose by 12 per cent, from $4,074 million in 2005 to $4,583 million in 2006. The ➤

net increase of $509 million was mainly attributable to the full-year impact of UNMIS (the Sudan) and the expansions in MINUSTAH (Haiti), MONUC (the Democratic Republic of the Congo) and UNOCI (Côte d’Ivoire), which were offset by the closures of UNAMSIL (Sierra Leone) and UNMISET (Timor-Leste), and scaled-down operations in ONUB (Burundi), UNMEE (Ethiopia/Eritrea), UNMIK (Kosovo) and UNMIL (Liberia).

Combined cash in all the active missions at the end of June 2006 was healthy — at $1,642 million. ➤

However, as amounts for each mission are distinct and must be kept segregated, periodic shortages contin-ued for UNMIK (Kosovo), MINURSO (Western Sahara) and UNOMIG (Georgia). This delayed reimbursements to Member States that had provided troops/police units for these missions.

Peacekeeping operations (dollars in millions)

2006 2005 2004

(As at 30 June)

Expenditures 4 583 4 074 2 934

Cash 6 1 642 1 245 1 052

Loans by:

— Closed missions 44 244 178

— Reserve Fund - 73 112

Cash in closed missions is used as a means of last resort to meet essential day-to-day operating expendi- ➤

tures of active peacekeeping missions or to cover temporary shortfalls in the Tribunals or the regular budget. During the year ended 30 June 2006, a total of $44 million was temporarily utilized for active peacekeeping missions, compared to $244 million in the previous year. The decrease in borrowing reflects the somewhat improved liquidity position of the regular budget, the Tribunals and the active peacekeeping missions.

During the year ended 30 June 2006, there was no need to borrow from the Peacekeeping Reserve Fund to ➤

meet the immediate cash requirements for new or expanded missions.

5 Comprises peacekeeping missions authorized by the Security Council. For financial purposes, these peacekeeping operations follow a 12-month cycle from 1 July to 30 June the following year.

6 Comprises total cash in all the active peacekeeping missions.


Tribunals

Expenditures for the two Tribunals — the International Criminal Tribunal for Rwanda and the International ➤

Tribunal for the Former Yugoslavia — grew by only 3 per cent during 2006 compared to 2005, reflecting continued efforts to contain spending.

Tribunals (dollars in millions)

2006 2005 2004

(As at 31 December)

Expenditures 296 287 268

Cash 37 59 16

The cash position of the Tribunals deteriorated slightly with higher outstanding assessments due from ➤

Member States. Nevertheless, there was no requirement for any temporary borrowing during 2006.

United Nations extrabudgetary resources 7

Income continued to rise sharply, growing 26 per cent in 2006 compared to 2005, as higher voluntary ➤

contributions were received, mainly for human rights and humanitarian trust funds, and for emergency relief operations.

Extrabudgetary resources (dollars in millions)

2006 2005 2004

(As at 31 December)

Income 1 113 885 585

Expenditures 797 685 521

Surplus 1 091 886 724

Reported expenditures did not keep pace with income in 2006, primarily because of the level of contribu- ➤

tions received for the new Central Emergency Response Fund ($284 million), against which the reported expenditure is $132 million. It is expected that expenses related to advances issued to implementing part-ners from these resources will be reported in 2007.

As a result of the above, the surplus, which represents the maximum amount available for spending in future ➤

years, rose to $1,091 million at the end of 2006.

7 Comprises general and technical cooperation trust funds of the United Nations.



Background

In addition to the governing and legislative oversight provided by the General Assembly and other inter-governmental bodies, the United Nations is subject to the oversight of the United Nations Board of Auditors (BOA), the Office of Internal Oversight Services (OIOS) and the Joint Inspection Unit ( JIU). These three bodies conduct independent audits, inspections, investigations and evaluations of the United Nations and its funds and programmes. Each body issues reports, either to the intergovernmental bodies or to management directly, containing findings and recom-mending remedial action.

The Board of Auditors’ primary role is to audit the Organization’s financial statements, although it also carries out specific assignments given by the General Assembly and addresses broader management issues during the course of its financial audits. During 2006, the Board prepared reports on the United Nations and its funds and programmes for the biennium ending 31 December 2005; the annual financial statements of peacekeeping operations for the peacekeeping budget year ending 30 June 2006; and those of the Office of the United Nations High Commissioner for Refugees for the year ending 31 December 2005.

OIOS provides internal oversight services in the areas of internal audit, investigations, programme monitoring and evaluation, and management consul-tancy services. While some of its reports are issued directly to the General Assembly, beause it is an internal oversight body a majority of its reports are addressed directly to programme managers to help them improve the manage ment of their departments.

The Joint Inspection Unit provides an indepen-dent view through inspection and evaluation aimed at improving management and methods, and at achiev-ing greater coordination among organizations of the United Nations system. During 2006, it issued seven thematic reports and one special note.

Management’s response mechanisms

The programme managers to whom the oversight report or individual recommendation is addressed are responsible for responding to oversight body findings and recommendations and for taking remedial action.

The Secretary-General has assigned the respon-sibility for the timely and effective follow-up of the most important Organization-wide oversight recom-mendations to the Management Committee. During November and December 2006, the Management Committee met to review 27 main recommendations of BOA that had been outstanding for more than two years and 54 critical OIOS recommendations that were more than three years old or that OIOS had brought to the Secretary-General’s attention as being outstanding recommendations of most concern. Quarterly moni-toring procedures are in place to ensure the prompt compliance with such recommendations.

Findings and recommendations: management’s responseFinancial statementsBOA provided clean audit opinions on the financial state-ments, subject to the following matters of emphasis with respect to the financial statements of the United Nations peacekeeping operations for the financial period end-ing 30 June 2006. These matters of emphasis concerned (a) the lack of a provision for outstanding assessed contri-butions from Member States; (b) the high level of savings arising on cancellation of prior period obligations; and (c) the non-disclosure of actuarial valuation of liabilities for after-service health insurance separately for peace-keeping operations. In respect of these, the Organization is of the view that (a) including a provision for outstand-ing contributions is not necessary because these con-tributions represent binding commitments of Member States; (b) the high level of cancellations was due to an extensive and detailed review of outstanding obligations that was undertaken during fiscal 2006; and (c) separate data pertaining to after-service health insurance liabilities

Response to major audit and oversight recommendations


for peacekeeping were not available in the last actuarial report. However, this is being reviewed with the objective of having this information available in the next actuarial report, which will be as of 31 Dec ember 2007.

2006 issuesThe need for a risk management

and internal control framework

Both BOA and OIOS have observed that it is manage-ment’s responsibility to manage the risks of the Organization and that the most effective way to do this is to adopt a comprehensive risk management and inter-nal control framework.

Risk management strategies have been emerging throughout the Secretariat during the last few years. The comprehensive review of governance and oversight within the United Nations and its funds, programmes and specialized agencies highlighted the need to have a more formalized approach to the management of risk, and a study is now being undertaken to determine how best to do so. A report on this issue will be presented to the General Assembly in 2007.

Procurement Task Force

In response to procurement-related findings by the Independent Inquiry Committee into the oil-for-food programme and of oversight body audits and investigations, the Secretary-General established the Procurement Task Force to investigate procurement-related cases. The Task Force operates as an integral part of OIOS and became operational at the beginning of 2006. As with all OIOS investigations, the reports are presented to management for it to take any necessary follow-up action.

Management is responding to the reports by instigating disciplinary procedures against staff, where warran ted; taking appropriate action against vendors, such as suspension from the vendors roster, where justified; and introducing necessary changes in administrative procedures, such as strengthening internal controls.

Ongoing responsesMajor findings and recommendations of oversight bod-ies do not usually lend themselves to quick fixes, often

involve extensive interaction with the intergovernmental bodies, and therefore can take several years to address. Thus, some of the issues highlighted in the United Nations Secretariat First Consolidated Report 2005 con-tinue to be tackled by management as follows.

Strengthen oversight, auditing and investigations

The need to strengthen oversight across the United Nations system was reviewed by the Steering Com mit-tee on the Comprehensive Review of Gov ern ance and Oversight within the United Nations and Its Funds, Programmes and Specialized Agencies. The Steering Committee’s report, transmitted to the General Assembly in 2006, reaffirmed the need for an Independent Audit Advisory Committee (IAAC) and for ensuring the operational independence and strengthening of OIOS. In addition to the Steering Committee’s report, both OIOS and JIU have provided reports to the General Assembly providing their views.

Early in 2006, the General Assembly approved the creation of IAAC and requested additional informa-tion to facilitate the strengthening of OIOS. At the end of the year, the detailed terms of reference for IAAC were under consideration by the General Assembly.

Strengthen management structure at the top

The Steering Committee also considered how to streng then governance in the top echelons of the Secretariat. A critical first step is to review the accountability framework of the Secretariat. This review, which is being undertaken in 2007, will place particular emphasis on strengthening the account-ability of senior managers; ensuring that the selection procedures for senior management positions relate the qualifications and experience of candidates to availa-ble positions; ensuring effective performance manage-ment; and properly aligning delegation of authority with responsibilities.

Improve coordination of cross-agency programmes

In view of the expansion of integrated field missions and the lessons learned from the Indian Ocean tsunami disaster, system-wide coherence and regional coopera-tion remained a focus of oversight bodies in 2006. With regard to peacekeeping, the Board of Auditors recom-



mended enhancing regional cooperation in the field, and both the Board and JIU recommended formaliz-ing the concept and framework of integrated missions. Regarding strengthening response to disasters and more effectively coordinating cross-agency activities, BOA, OIOS and JIU all conducted reviews of the UN system’s response to the Indian Ocean tsunami.

These complex challenges are being addressed in many ways. A series of recommendations were made by Secretary-General Annan in his report “Strengthening emergency relief, rehabilitation, reconstruction, recovery and prevention in the aftermath of the Indian Ocean tsunami disaster”. And the Peacebuilding Commission began its work as an intergovernmental advisory body whose role includes advising and proposing integrated strategies for post-conflict recovery and bringing together the UN’s broad capacities and experience in conflict prevention, mediation, peacekeeping, respect for human rights, the rule of law, humanitarian assistance, reconstruction and long-term development.

Looking at the big picture, the High-level Panel on UN System-wide Coherence established by Secretary-General Annan to examine, inter alia, ways to eliminate duplication and overlap of functions, and to minimize overhead and administrative costs, issued its report and recommendations in November 2006. The report, entitled “Delivering as One”, provides a clear and bal-anced analysis and a series of ambitious but practical recommendations that can have a significant and long-lasting impact on the effectiveness and relevance of the UN system. For example, in the area of development, the report recommends a “One United Nations” at the country level that has full country ownership and is sup-ported by a strengthened and more consolidated fund-ing structure to increase substantially the effectiveness of UN interventions. The Panel also proposed measures to strengthen coherence at the centre in the areas of gov-ernance, funding and management that are critical for a revamped UN development system. Moreover, many of the proposals are meant to ensure a much more effective integration and strengthening of the policy and norma-tive role of the United Nations and better alignment with operational roles and structures.

Strengthen procurement

Responding to the need to strengthen procurement as highlighted by various oversight body reports in 2005, management commissioned a review of the adequacy of the financial and internal controls on the procurement system that was completed in January 2006. Immediate action was taken on many of the recommendations, including implementation of financial disclosure; revi-sions of terms and conditions for tender documents to manage conflict of interest risks; reinforcement of staff resources; more open communication to staff; and tighter control mechanisms over the bid opening pro-cess. Other actions have been incorporated in the pro-curement reform programme presented to the General Assembly in A/60/846/Add.5. While this represents a comprehensive approach, it should be recognized that with the anticipated increase in workload, particularly with respect to expanding peacekeeping operations, present resources are not sufficient.

The oversight bodies continue to place emphasis on strengthening the UN Procurement Service. As such, the Procurement Service is undergoing continuous and independent assessment by the oversight bodies in order to evaluate the progress being made towards the elimi-nation of weaknesses and to provide recommendations for further improvement.

Create a strong organizational ethic

Management continues to introduce measures to create a strong organizational ethic to address the weaknesses identified by the Independent Inquiry Committee and OIOS in previous years. The Ethics Office was established in January 2006, and training programmes in integrity awareness and prevention of harassment are now manda-tory for all staff. Measures to enforce the Organization’s zero-tolerance policy for sexual exploitation and abuse continue to be strengthened. However, as revealed in a recent OIOS report regarding an investigation carried out at the peacekeeping mission in the Democratic Republic of the Congo in early 2006, the problem of sexual exploi-tation in peacekeeping missions will not easily be solved.


The United Nations has been emerging as a much-changed and key player on today’s world stage. The Organization not only has experienced growth in size, but has also made a fundamental shift from its tradi-tional roots in conference management and report- writing to being a multibillion-dollar-funded protago-nist in the global endeavours to keep peace, combat poverty and mitigate and respond effectively to humani-tarian disasters. This shift in role brings with it greater global exposure and consequently greater expectations of success. Significant steps were taken in 2006 to respond to the impact that this had, and will continue to have, on the Organization and its workforce. Looking ahead, the Secretariat has in its sights more streamlined, more effective, transparent and accountable structures to support all of its endeavours. Continuous improve-ment and transformation of the working culture of the Organization are not only anticipated, but expected.

At the start of 2007, in an unprecedented move towards greater transparency and accountability, the new Secretary-General, Ban Ki-moon, published his finan-cial disclosure statement. He set the cultural agenda by starting as he means to go on — leading by example. He promised to work to enhance staff morale, professional-ism and accountability. The Secretary-General has also stressed the need to enhance staff mobility in the context of comprehensive career development and training. He took the lead in this respect by opening up positions in his Executive Office to expressions of interest through-out the UN system. The Secretary-General has asked senior managers to cooperate fully with his initiatives in changing the working culture of the Organization. To strengthen accountability of senior managers, he has been working with senior managers to complete a com-pact, specifying performance targets to be reviewed by the Management Performance Board. His vision is of a more modern United Nations, with staff who are moti-

vated to do more and do better, having had the opportu-nity to broaden their skills in diverse and multiple roles in the field and at Headquarters.

In immediate response to the challenges faced by the Organization, the Secretary-General set out to the General Assembly key restructuring plans to bridge the gap between demands and capacity in peacekeeping activ-ities, and to fill the political gap by re-energizing the dis-armament agenda. After carefully identifying the strengths and weaknesses of the current system, he proposed to realign the Department of Peacekeeping Operations and the Department of Disarmament Affairs. Although the framework resolutions were adopted, the Secretary-General and his staff will not rest on their laurels. There is much work to do to demonstrate real improvement. To further strengthen the Organization’s capacity to deliver, the Secretary-General intends to upgrade and update the UN’s information and telecommunications system. An enterprise resource planning system will be introduced and a Chief Information Technology Officer appointed.

Progress in 2006 in relation to governance and over-sight, ethics, transparency and accountability, and the administration of justice will provide the platform for greater future changes in working culture and improve-ments in performance. In 2007, the Secretariat will con-tinue this progress while implementing new initiatives to meet new priorities to strengthen the UN through enhanced coordination; to breathe new life into the Secretariat by building a staff that is professional, account-able, mobile and multitasked; and to restore trust in the Organization to do well what is expected of it. The task of managing and monitoring the substantially increased portfolio of the UN, and making a success of its discharg-ing of its responsibilities, will be achieved through the steps that are being taken and by setting ambitious but achievable goals through the coming year, and beyond.

Challenges and future direction



International peace and security

Significant accomplishments in 2006

The response to the crisis in Lebanon ✔

helped secure an end to the armed conflict in Lebanon and Israel and brought about an expanded peace-keeping force in southern Lebanon.

A Comprehensive Peace Agreement ✔

(CPA) in the Sudan achieved a signifi-cant milestone in July, leading to with-drawal of soldiers from eastern Sudan.

The first democratic vote in the ✔

Democratic Republic of the Congo in 40 years took place in July with 25.7 million people registered to vote in more than 50,000 polling stations.

August saw a cessation of hostilities ✔

between the Government of Uganda and the Lord’s Resistance Army, and the prospect of an end to a 20-year conflict in northern Uganda.

In November, a CPA was signed in ✔

Nepal and ended a decade-long conflict.

In December, the mandate in Burundi ✔

was completed with the first demo-cratic elections in 12 years, the instal-lation of a national Government and the dis armament and demobilization of nearly 22,000 combatants.

A Pact on Security, Stability and ✔

Development for the Great Lakes Region was signed in December.

The UN secured $6 million in donor ✔

assistance through the Juba Initiative Project.

Summary of accomplishments and challenges

Areas of challenge

Tensions continue to simmer in the wake of the Lebanon crisis; ♦

a permanent ceasefire and ultimately a peace agreement remain elusive.

Strains in peacekeeping were felt in areas such as Timor-Leste, ♦

where violent clashes took place as the UN mandate was coming to an end, and Kosovo, where no substantial agreement was achieved and the positions of the parties on its status remained far apart.

The July report of the Secretary-General entitled “Progress ♦

report on the prevention of armed conflict” found system-wide weaknesses and an unacceptable gap between the importance attached to prevention and the lack of resources and political will.

The intensity of the Security Council’s work in 2006 strained the ♦

human resources of DPA’s Security Council Affairs Division.

Continuing UN efforts in Somalia were constrained by security ♦

factors and the Transitional Federal Government was under threat due to the fast-moving situation on the ground.

Operational challenges are daunting; the environment is often ♦

remote and difficult with little infrastructure or communications. Field missions face limited or severely weakened local markets for goods and services and a lack of housing stock, potable water or sufficient fresh food supply.

The logistic and supply challenges facing many missions make ♦

deployment a highly complex issue.

Securing adequate numbers of highly qualified and experienced ♦

personnel and sufficient quantities of materiel for UN operations is another significant challenge.

DPA continued to be hampered throughout 2006 by chronic ♦

budget shortfalls.

There was a significant surge in peacekeeping activity in 2006 for ♦

which funding represents 0.5 per cent of global military spending.

The following tables are extracted from detailed chapters of the Performance section of this report. Here, at a glance, the reader will find the main accomplishments and challenges identi-fied by the programme managers as significant in 2006.


Economic growth and development


In September, the General Assembly conducted ✔

the High-level Dialogue on International Migration and Development, identifying ways of maximizing the development benefits of international migra-tion and minimizing its negative impact.

The UN Forum on Forests came to an agreement ✔

in 2006 on the future direction of international forest policy.

The fifth African Development Forum took place ✔

in November, focusing on the role of youth in regional development.

In February, the Economic Commission for Africa ✔

(ECA) organized the first meeting of the Africa Symposium on Statistical Development, encour-aging all African countries to undertake a census in the 2010 Round of Population and Housing Censuses.

ECA provided substantive technical support for ✔

an Africa Fertilizer Summit in June, and also co ordinated the launch of the first comprehen-sive African Water Development Report.

A partnership involving the Economic and Social ✔

Commission for Asia and the Pacific (ESCAP), the Asian Development Bank and the United Nations Development Programme (UNDP) grew in 2006 in support of the Millennium Development Goals, with each partner providing technical and financial assistance.

In November, a Ministerial Conference on ✔

Transport, organized by ESCAP, agreed on a declaration and regional action programme on transport development, held a signing ceremony for the Intergovernmental Agreement on the Trans-Asia Railway Network, and issued a minis-terial declaration on road safety.

(continued on the following page)

Areas of challenge

The Department of Economic and Social Affairs (DESA) ♦

faced difficulties in striking a balance in the preparation of analysis and reports that were authoritative and technically sound and also accessible to policymakers and the public.

There were shortcomings in the availability and quality ♦

of official statistical data for tracking progress on the Millennium Development Goals and other internation-ally agreed development priorities.

Multilateral and bilateral partners continue to need ♦

improvement in their coordination mechanisms and more opportunities for full cooperation in jointly devel-oped programmes. Most national statistical initiatives should be covered by national budgets and supported by a strong political commitment.

In a year that saw 52 new accessions to ECE transport ♦

agreements and 28 new ratifications of ECE environ-mental conventions, there is a challenge to ensure the effective implementation of these legal instruments in countries where legal and institutional frameworks are sometimes weak.

The Economic Commission for Latin America and the ♦

Caribbean (ECLAC) had to stretch its resources to meet the growing demand for technical assistance following the suspension of the Doha Round of trade negotiations. ECLAC has to keep up with an accelerating rate of tech-nological, social and institutional change, which can lead to the fragmentation of knowledge and experience.

ESCWA faced conflict and political instability result- ♦

ing from the July-August war in Lebanon. International staff were evacuated during the war. Even after the war, security concerns remain a challenge.

Keeping up with the increasing complexity of environ- ♦

mental degradation, which requires an enhanced capac-ity for scientific assessment and monitoring, is a key challenge faced by UNEP.

Another challenge for UNEP is the implementation of ♦

the Bali Strategic Plan for Technology Support and Capacity-building.





Significant accomplishments in 2006 (continued)

The Economic Commission for Europe (ECE) ✔

issued the final report on a $2 million project: Energy Efficiency Investments for Climate Change Mitigation, which has led to the identification and development of $60 million in total investments, resulting in annual reductions of some 136,000 tons of carbon dioxide.

Two workshops convened by the Economic and ✔

Social Commission for Western Asia (ESCWA) in 2006 led to a draft policy framework on shared aquifers, as well as other efforts towards improved water management in the region.

In April, ESCWA convened a national conference ✔

in Bahrain; the success of this conference led to the establishment of a Social Policy Unit at the Ministry of Social Development in Bahrain, which is now fully operational.

In 2006, rapid environmental assessments by ✔

the United Nations Environment Programme (UNEP) helped to identify immediate threats and spotlight environmental concerns.

The inaugural Asia-Pacific Ministerial Conference ✔

on Housing and Urban Development unanimously adopted a new mechanism in December setting up a permanent secretariat and agreeing to an Enhanced Framework for better cities, resting on four pillars: pro-poor urban governance and plan-ning, slum upgrading, the delivery of the MDGs on water and sanitation, and financing sustain-able urbanization.

Areas of challenge (continued)

UNEP will increasingly need to foster partnerships ♦

with planning and finance ministries in addition to its partnerships with environment ministries, and will need to better understand the interrelationships among Government ministries.

The principal challenge for the United Nations Human ♦

Settlements Programme (UN-Habitat) is that issues of sustainable urbanization are still not fully appreciated and prioritized in the national development policies or in the United Nations Development Assistance Framework of most countries.

There are inadequate financial and human resources ♦

for UN-Habitat to implement its mandate.

The principal challenge for the United Nations ♦

Conference on Trade and Development (UNCTAD) has been to ensure that its policy analysis and recom-mendations reach the right audience and its technical assistance has a sustainable impact.

The key obstacles facing the International Trade ♦

Centre (ITC) included a lack of visibility at the field level, where the Centre is not as well known as other non-resident agencies.

Participation in international meetings by representa- ♦

tives of poor States remains a critical challenge for the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (OHRLLS), given that the regular budget does not make provisions for such expenditures. Voluntary contributions must be sought, and these are often insufficient.

The main challenges faced by the Office for Outer ♦

Space Affairs (OOSA) were its small staff complement and its limited fellowship budget for its capacity- building workshops and pilot projects.


Development of Africa


The Secretary-General’s Advisory Panel on ✔

International Support for the New Partnership for Africa’s Development (NEPAD), set up to canvass support for the New Partnership for Africa’s Development, held two meetings and published its second report.

In June, a group of experts analysed the ✔

link between natural resources and conflicts in Africa and concluded that there was a need for more information, policy lessons and international support in managing and using natural resources wealth in ways that promote sustainable development.

In October, the United Nations Office of the ✔

Special Adviser on Africa (OSAA) organized an expert panel to discuss institutional chal-lenges in implementing the NEPAD agenda. Another expert group on youth and conflict concluded that the role of youth is essential in promoting durable peace in Africa.

China, India, Brazil, Malaysia and the ✔

Republic of Korea became new development partners of Africa.

The declaration entitled “Enhancing UN-AU ✔

Cooperation: Framework for the Ten-Year Capacity-Building Programme for the African Union” was signed in November.

Areas of challenge

The need to improve organizational capacity and ♦

the lack of an adequate number of staff and finan-cial resources through the regular budget continue to be key concerns that will determine progress in the coming years.

Keeping up with an expanding agenda of meet- ♦

ings, issues and activities related to Africa, both outside and within the UN system, is a significant challenge.



Promotion of human rights


Doubling of the budget for the Office of the ✔

High Commissioner for Human Rights (OHCHR) translated into the addition of 91 human rights posts and an increase of nearly 28 per cent in the Office’s regular budget resources for the biennium 2006-2007.

A new human rights office was established in ✔

Togo and preparations began for a new country office in Bolivia as a means to observe human rights conditions on the ground and to engage more vigorously with national Governments and regional bodies to address abuses.

Expanded field deployments in Uganda contrib- ✔

uted significantly to focusing public attention on serious human rights violations by the military against local residents, thus leading to improve-ments in the Government’s military engagement in the region.

Agreement was reached between the Ministry of ✔

Interior and non-governmental organizations in Cambodia on a key principle underlying a draft law on peaceful demonstration.

A new national human rights institution was ✔

created in Angola, and mediation in the Angolan legal system was introduced.

A Rapid Response Unit was established in ✔

order to strengthen and coordinate OHCHR’s response to human rights crises.

A new Human Rights Council was established ✔

to give practical expression to the recogni-tion of human rights in the UN Charter as an equal aspect of the Organization’s functions and responsibilities alongside security and development.

Three international agreements were adopted ✔

to help advance the agenda of human rights worldwide.

Areas of challenge

Expanded activities set in motion by the 2005 ♦

Plan of Action have created a number of chal-lenges, such as: clarifying accountabilities for new functions; creating new mechanisms, processes and procedures while enhancing existing ones; and ensuring a common understanding of the Plan of Action and the High Commissioner’s mandate.

Time spent on recruitment, staff rotation and ♦

changes in managerial structures have con-strained the optimal functioning of OHCHR in the short term.

There is a need to enhance the New York office ♦

of OHCHR and to clarify accountabilities and coordination mechanisms in relation to the Geneva office.

Limited political support for the High Commis- ♦

sioner’s proposal for a unified standing treaty body resulted in delaying the intergovern mental meeting of State parties to consider options envisaged in the Plan of Action.


Humanitarian assistance


In the widely recognized, impartial and timely ✔

response to the crisis in Lebanon, the Office for the Coordination of Humanitarian Affairs (OCHA) deployed a team to support international efforts. The team collaborated with a network of UN agen-cies and non-governmental organizations to set up effective and wide-ranging coordination and logistics hubs.

OCHA also coordinated inputs from partner organi- ✔

zations towards the flash appeal for international funding, with a target of $155 million to address various humanitarian needs resulting from the Lebanon conflict.

A new UN peacekeeping mission for Timor-Leste ✔

was established to respond to the armed conflict between police and the armed forces in the State.

The Central Emergency Response Fund (CERF), ✔

established in 2006, was successfully put to the test by the crisis in Timor-Leste. Within 10 days of the onset of the crisis, a CERF grant was given to start emergency operations.

Enhancements to the Humanitarian Coordinator ✔

system included new means of identifying, recruit-ing and training potential coordinators well in advance of emergencies.

In March, OCHA launched a $38 million cluster ✔

appeal to train staff, to boost common emergency stockpiles and to develop commonly agreed stand-ards, guidelines, frameworks, systems and tools for emergency response. The cluster approach was used successfully in four major new emergen-cies: Pakistan, Indonesia (Jogyakarta), Lebanon and the Philippines.

Areas of challenge

The humanitarian reform process needs to be ♦

clearly communicated to all stakeholders if it is to take hold and be successful.

Insufficient surge capacities have slowed ♦

response to sudden-onset emergencies and have prevented the rapid scaling-up of humani-tarian presence.



International law and justice


Chambers in the Tribunal for the former ✔

Yugoslavia were trying 25 accused in six trials simultaneously — the highest number in its 14-year history.

The Office of Legal Affairs (OLA) negotiated the ✔

establishment of a Special Tribunal for Lebanon. The Security Council endorsed the establishment and the statutory instruments under which it would operate.

OLA provided intensified capacity-building serv- ✔

ices for Member States and international treaty bodies in the law of the sea and ocean affairs in order to raise awareness and understanding of the legal aspects of international maritime issues.

The “Crossing Borders” treaty event, which ✔

focused on multilateral treaties, led 46 States to take a total of 86 actions related to 40 treaties in the areas, for example, of: refu-gees; disarmament and State security; human security and trafficking; migrant workers; and sustainable development.

Areas of challenge

International Tribunals continue to encounter dif- ♦

ficulty in securing the support of Member States in apprehending fugitives.

Some Member States have been reluctant to ♦

accept acquitted persons or convicted persons completing their sentences.

Delays in the payment of assessed contributions ♦

by Member States have often made it difficult to ensure the smooth and orderly performance of activities.

The limited number of legal professionals has ♦

affected the ability of OLA to provide advice in a timely manner to meet the needs of those requesting its services.


Disarmament


An international conference was held to ✔

review the progress made in the implementa-tion of the Programme of Action to Prevent, Combat and Eradicate the Illicit Trade in Small Arms and Light Weapons in All Its Aspects.

Regional seminars on non-proliferation of ✔

weapons of mass destruction helped to raise participants’ awareness of obligations and requirements under two Security Council reso-lutions to establish domestic controls and to adopt legislative measures to prevent the proliferation of nuclear, chemical and biologi-cal weapons, and their means of delivery.

The Sixth Review Conference of the Biological ✔

Weapons Convention succeeded in bolstering the biological weapons regime in a number of practical ways, including the establishment of an Implementation Support Unit in the Geneva Branch of the Office for Disarmament Affairs (ODA).

In November, the Third Review Conference ✔

of the Convention on Certain Conventional Weapons celebrated the enforcement of a new protocol that tightens international humanitarian law on explosive remnants of war. It established a Sponsorship Programme to assist the least developed States in imple-menting the Convention and participating in activities related to it.

Areas of challenge

Member States failed to reach consensus on ♦

an outcome document and follow-up process at the Conference to review the progress made in controlling illicit small arms and light weapons.

Divergent views of Member States continued ♦

to impede the work of the Conference on Disarmament and have affected the deliberation and outcome in other disarmament forums.

Severe financial constraints in regional centres ♦

hampered ODA’s ability to meet rising demand for workshops and seminars to promote various disarmament issues.

There is a lack of an information technology ♦

strategy in collaboration with other UN pro-grammes to raise the public’s understanding of ODA events.



Drugs, crime and terrorism


Myanmar, Thailand and the Lao People’s ✔

Democratic Republic significantly reduced illicit opium production to near-negligible levels.

The United Nations Office on Drugs and Crime ✔

(UNODC) provided field-based technical assistance in the establishment of the Central Asia Regional Information and Coordination Centre (CARICC), a regional law enforcement intelligence centre to fight illicit drug trafficking.

UNODC reached an agreement with the Collective ✔

Security Treaty Organization to develop joint projects against drugs and crime.

UNODC provided support for regional cooperation ✔

on anti-narcotics law enforcement with the NATO-Russia Council and with the Government of Qatar.

UNODC provided technical assistance to benefit ✔

police, law-enforcement officers and crime experts in the formulation of a Counter-Kidnap Manual and a Toolkit to Combat Trafficking in Persons.

There was universal adoption by the General ✔

Assembly of the United Nations Counter-Terrorism Strategy aimed at strengthening international resistance to terrorism.

The UN assisted 54 countries on the ratification ✔

and implementation of international conventions and protocols related to terrorism.

New pilot projects developed in Ghana and ✔

Pakistan under the Container Control Programme will help Governments control the movement of sea freight. In Ecuador, this programme helped lead to the seizure of more than 5.5 tons of cocaine worth more than $550 million.

A comprehensive four-year medium-term Strategy ✔

(2008-2011) was set up aimed at institutionalizing a results-oriented approach across all the compo-nent parts of UNODC.

Areas of challenge

Afghan opium production continues to account for ♦

more than nine tenths of total world supply, with a surge increase of 49 per cent in the last year.

Cocaine demand in Europe and worldwide demand ♦

for cannabis have both risen.

Intergovernmental commitments have not been ♦

matched by increased material support to UNODC’s regular budget; there is a growing imbal-ance between mandates, tasks and resources.

The lack of reliable and necessary data on crime ♦

trends and limited resources for crime prevention from Member States are obstructions.


Refugees


The United Nations Relief and Works Agency ✔

for Palestine Refugees in the Near East (UNRWA) enrolled almost 500,000 children in its 663 schools, recorded some 9 million patient visits to its clinics, and ran or sup-ported 105 community centres for women.

To achieve more equitable sharing of burdens ✔

and responsibilities, and to build capacity to receive and protect refugees, the Office of the United Nations High Commissioner for Refugees (UNHCR) worked with Government authorities in countries neighbouring Iraq and other countries that are providing funds to register Iraqi asylum-seekers.

The Executive Committee Conclusion on ✔

women and girls at risk was adopted, provid-ing a framework for UNHCR, Governments and other actors to work together to identify and respond more effectively to the risks of violence against women and girls in situations of displacement.

UNRWA launched a “Schools of Excellence” ✔

initiative in September to rehabilitate the edu-cation of almost 200,000 Palestine refugee youth in Gaza.

UNHCR launched a Ten-Point Plan of Action ✔

recommending a comprehensive and collab-orative response involving countries of origin, transit and destination, and international agen-cies and non-governmental organizations, to ensure that measures to curb irregular migra-tion would not adversely affect the protection of refugees.

Areas of challenge

The operation of returning nearly 26,000 refugees to ♦

Southern Sudan was severely challenged by fragile security conditions and a lack of infrastructure and basic services such as schools and health clinics.

Situations where armed elements enter asylum coun- ♦

tries mixed with arriving refugees present a significant challenge, such as in eastern Chad, where ethnic violence spread and severely strained the ability of security forces to protect hundreds of thousands of refugees.

Sexual and gender-based violence also threatens ♦

many refugees and internally displaced persons, given that camps are often in remote locations where government mechanisms and the rule of law are weak.

International UN staff working in Gaza and hold- ♦

ing Israeli service visas experienced great difficulty entering Israel. Inadequate resources in 2006 also undermined UNRWA’s ability to meet the needs of the refugees.

UNRWA’s reform process has underlined the need ♦

for significant increases in the number of local and international staff. Underfunding and concomitant austerity measures have drained the Agency’s capac-ity to take on new tasks.



Organizational support


In June, the conference managers of the ✔

Department of General Assembly and Conference Management (DGACM) reached agreement in key areas of their work — including proactive document management, capacity calculations, a common ter-minology database for the Department’s language staff, and computer-assisted translation.

DGACM launched an information technology global ✔

initiative.

In DGACM, document management became more ✔

efficient through a precise advance schedule or “slotting system” of submitting documents and better workload planning.

The framework for accountability for the United ✔

Nations Security Management System was recom-mended for approval by the General Assembly.

The Department of Safety and Security (DSS) ✔

expanded its security briefings to all staff serv-ing in the UN system, and developed an agreed accountability framework and enhanced training of security staff.

The Department of Public Information (DPI) ✔

executed a successful communications campaign for the General Assembly High-level Dialogue on Migration in September.

DPI’s “Stand Up against Poverty” campaign event ✔

succeeded in mobilizing over 23 million people worldwide in a 24-hour period in October, setting a new Guinness World Record for the largest such event ever organized.

DPI’s “Water for Life” campaign with MTV and Jay-Z ✔

about the world’s water and sanitation crisis was very successful.

DPI arranged the first annual International Day ✔

of Commemoration in Memory of the Victims of the Holocaust.

The United Nations Fund for International ✔

Partnerships managed working arrangements between UN entities and the United Nations Foundation, resulting in $191 million in investment by the Foundation and its funding partners.


Areas of challenge

Some reporting mandates are adopted too close ♦

to the meetings for which they are intended, which can be problematic for DGACM.

A major challenge for DGACM — particularly in the ♦

language services — is forthcoming retirements of staff.

DSS faces significant challenges in attracting and ♦

identifying suitably qualified candidates from unrep-resented and underrepresented countries.

It is difficult for DPI to attain the right balance ♦

between developing new products and delivery methods and strengthening traditional methods for conveying information in the face of a zero-growth budget.

Complex, outmoded and fragmented management ♦

systems and processes hamper the Organization’s ability to respond to changing requirements.

Without the approval of some human resources ♦

proposals, such as streamlining contractual arrangements and harmonizing conditions of service, it will be difficult for the Organization to manage its workforce effectively.

Many labour-intensive and paper-based business ♦

processes hinder DM’s performance.

Staff development is another area of challenge: ♦

Investment in developing and managing talent at all levels of the Organization is inadequate.

Another significant, ongoing challenge is the physi- ♦

cal maintenance of the Secretariat facilities.



Significant accomplishments in 2006 (continued)

The Secretary-General’s report “Investing in ✔

the United Nations: for a stronger Organization worldwide” proposed radical changes to the way the Department of Management (DM) conducts its business, from streamlining employment contracts to consolidating peacekeeping budget accounts.

The General Assembly’s endorsement in July of ✔

two key information and communications tech-nology (ICT) proposals — the creation of a Chief Information Technology Officer position and the procurement of an enterprise resource planning system — paved the way for a reformation of ICT services within the Secretariat.

The General Assembly approved UN system-wide ✔

adoption of International Public Sector Accounting Standards.

In March, DM signed a Financial Management ✔

Framework Agreement with the World Bank.

DM established the Procurement Reform ✔

Implementation Team in October.

In December, the General Assembly approved a ✔

project scope for the Capital Master Plan as well as a budget of $1.88 billion and a schedule for project completion.

DM refined its policy on staff mobility, developed ✔

information technology infrastructure to support it, and offered training and learning opportunities for staff.

OIOS

Message from the Under-Secretary-General for the Office of Internal Oversight Services, Inga-Britt Ahlenius

The year 2006 has been an extraordinary year for the Office of Internal Oversight Services (OIOS). In addition to the extensive coverage of the oversight programme of work, the Office initi-ated changes to strengthen its functions and operations as part of the UN system-wide focus on governance and oversight.

With respect to oversight and governance in the United Nations, the year was characterized by three main and inter-related themes:

1. Strengthening internal oversight mechanisms, including the Office of Internal Oversight Services (OIOS)

2. Strengthening accountability3. Improving transparency

1. Strengthening internal oversight mechanisms, including OIOS

In the 2005 World Summit Outcome document (General Assembly resolution 60/1), the General Assembly noted the urgent need to improve substantially United Nations oversight and emphasized the importance of operational independence for OIOS. A governance and oversight review was subsequently conducted by the independent Steering Committee on the Comprehensive Review of Governance and Oversight within the United Nations and Its Funds, Programmes and Specialized Agencies. Based on this, I prepared my own pro-posals for strengthening OIOS (A/60/901) for the consideration of the General Assembly in July 2006. In addition, to meet the immediate budgetary implications of these pro-posals, a separate regular budget revised estimate for the 2006-2007 biennium was submitted for the Assembly’s approval (A/61/610). The outcome of these proposals is still pending approval by the General Assembly.

In 2006, the Office continued to build and strengthen initiatives to help the Organization improve controls and manage risks and to improve the professional prac-tices of the Office itself. These initiatives included:



Risk-based work planning

In 2006, the Office launched a systematic risk assessment methodology to develop risk-based workplans resulting in oversight priorities. Implementation of the project is expected by the end of 2007 and, provided that the issue of a new funding mechanism for OIOS is solved, the 2008 workplan would be fully risk-based. The risk assessments will provide OIOS with the structured framework to justify the areas that it considers the highest risk to the Organization and the resources required to conduct the oversight assignments to address them.

A new system for monitoring recommendationsIn order to streamline the monitoring of recommendation implementation, OIOS launched a single recommendations database, known as Issue Track, in February 2006. This system replaced seven disparate databases that had been used by the Office in the past. This new instrument will improve OIOS monitoring of reporting on the implementation status of recommendations to the General Assembly and the Secretary-General.

Professional Practices SectionTo ensure that the Office produces consistently high-quality oversight work, initiatives are under way to develop further the professional practices within each functional division. OIOS is therefore in the process of establishing dedicated professional practice units or focal points in each division.

2. Strengthening accountabilityAs I have stated previously, the adoption of a formal and robust internal control frame-work, such as one based on the Guidelines for Internal Control Standards for the Public Sector of the International Organization of Supreme Audit Institutions (INTOSAI), a United Nations–sponsored organization, is a necessary and logical step in the United Nations Secretariat. Now is the time for the Organization to institutionalize a cul-ture control consciousness, including effective risk management. Only this would make the Organization’s commitment to the Member States regarding transparency and accountability fully effective.

The General Assembly’s requests, in resolution 61/245, for reports on enterprise risk management and internal control framework; results-based management; and account-ability framework are a significant step forward. OIOS would like to emphasize that for the synergies among these systems/processes to be realized they must be fully aligned.

OIOS would like to emphasize, however, that these studies should not be conducted independently of each other but rather as part of an integrated internal control framework.

I very much look forward to the adoption and implementation of an internal control framework especially for the establishment of guidelines under which programme man-


OIOS

agers will take full ownership for the Organization’s system of internal controls. In this regard, managers would also be called to report on the effectiveness of internal controls in the programmes under their leadership. This personal attestation would bind individual managers to consider the implementation of internal control measures as a necessary enabler of programme success. That said, an internal control framework is primarily a tool for management to ensure that it is not only in charge, but also in control.

3. Improving transparency

General Assembly resolution 59/272 made a groundbreaking step towards increased transparency in the Organization by deciding that reports of OIOS “shall be submitted directly to the General Assembly as submitted by the Office” and that the “reports of the Office of Internal Oversight Services not submitted to the General Assembly are, upon request, made available to any Member State”. This initiative has signi ficantly improved the dialogue between OIOS and Member States.

In addition, the availability of reports to Member States is in line with the Secretary-General’s support for increased transparency. It is also an established practice in many national Governments of the Member States to make internal audit reports public.

Internal control and programme performance of the United Nations Secretariat

(i) Overall assessment

In the absence of a formal and structured internal control framework, OIOS reiterates its comment in last year’s report that it is unable to provide an overall assessment of inter-nal control and performance in the Organization. While the Office is moving towards reporting on its audits using an internal control framework-based approach, this cannot substitute for the responsibility of managers to report on the effectiveness of their internal control systems. OIOS’s role is, put simply, to evaluate such management assessments to obtain reasonable assurance that they are reliable.

In the current period, OIOS has noted multiple instances where a breakdown in internal control has exposed the Organization to unnecessary risk. Of the greatest concern are the lapses in the control environment. Such lapses, in some cases, have facilitated the mismanagement and misuse of the Organization’s resources. It should be noted that the control environment is created at the very top of the Organization, by the tone set by the senior management with not only words but also deeds. The control environment, which, in essence, establishes the atmosphere of the Organization, is the foundation and most important component of internal control. Its purpose is to enable and encourage people to conduct their activities and carry out their responsibilities with integrity, high ethical values and competence. Challenging operational realities have often been cited to justify a weak control environment, reasons that the Member States do not need to accept.


(ii) Significant risk and control issues in 2006

Investigations into sexual exploitation and abuseOIOS investigated a broad range of violations in the Organization, including waste, abuse, negligence and other forms of mismanagement and serious misconduct including fraud. Of particular concern were allegations related to sexual exploitation and abuse, which rep-resented about one third of all allegations received by OIOS. As of 31 December 2006, 30 of the allegations received had been fully investigated by OIOS and reports issued to the Department of Peacekeeping Operations. A total of 203 allegations remained under active investigative status.

Audits and investigations on procurementOIOS reports on procurement have identified serious deficiencies in procurement man-agement, systems and processes. A special task force was established in January 2006 to investigate wrongdoing in all procurement matters wherever the Organization is engaged. Since June 2006, the Procurement Task Force has issued 11 investigation reports. The reports detail significant findings of waste, abuse, negligence and other forms of misman-agement, as well as of fraud, in the establishment and execution of a number of high-value contracts between the Organization and various vendors to provide goods and services to the United Nations.

Audits in procurement management also revealed serious control weaknesses and mis-management, wasteful expenditures, overpayments to vendors and questionable procure-ment practices. For example, in UNMIS the practice was followed of soliciting bids from a short list of vendors, but the criteria for shortlisting were often not transparent. Potential bidders were not given sufficient time to submit their bids, and the timelines for the submis-sion of bids and proposals as indicated in the Procurement Manual were not being observed. Those practices restricted the competition and increased the costs to UNMIS. In one case, a $17 million contract for the supply of gravel was awarded on a “sole bid” basis at what appeared to be exorbitant prices. Similar lapses in management practices, inconsistent with the Procurement Manual, were also observed in OIOS’s quick impact audit of bid-opening procedures conducted in several duty stations simultaneously.

Audits of peacekeeping and peacebuilding operationsOIOS’s report on the review of management structures of DPKO (A/61/743) high-lighted that the Department’s management structures must ensure that operational and management processes are fully integrated with a strong internal control framework, and supported by effective governance and accountability mechanisms. The audit pointed out serious control weaknesses in administrative and logistical support functions, as had also been identified in prior OIOS audits. No systematic risk management mechanism had been developed, and monitoring of DPKO’s subprogrammes by the Office of the Under-Secretary-General of DPKO needed major improvement. OIOS also conducted a review of DPA’s management of special political missions (A/61/357), and concluded that there was a high risk of duplication of functions between DPA regional divisions and the DPKO


OIOS

Office of Operations. OIOS also noted that the basis for assignment of “lead” responsibili-ties between DPA and DPKO was not clear. Both reports were prepared before the recent restructuring of DPKO by creating the Department of Peacekeeping Operations and the Department of Field Support.

Programme evaluations and inspectionsOIOS completed its in-depth evaluation of political affairs, which is implemented by the Department of Political Affairs, with a summary report on the entire Department as well as individual evaluation reports on the five political affairs subprogrammes and special political missions (E/AC.51/2007/2, E/AC.51/2006/4, E/AC.51/2007/2/Add.1, E/AC.51/2007/2/Add.2, E/AC.51/2007/2/Add.3, E/AC.51/2007/2/Add.4). OIOS found that DPA is fulfilling most of its core functions largely to the satisfaction of many of its cli-ents. Performance is more mixed, however, with regard to its functions supporting the pre-vention, control and resolution of conflicts. The Department faces several significant chal-lenges regarding the performance of its substantive divisions/units, including insufficient knowledge management, operational guidelines and work processes. A complex operating environment and executive management issues regarding unclear roles and responsibilities as well as the need for strengthened coordination and communication create further chal-lenges to the full implementation of the Department’s mandate.

OIOS inspections have highlighted the need for strengthened policy coordination among regional United Nations entities, as reported in the inspection of programme and admin-istrative management of the subregional offices of the Economic Commission for Africa (ECA) (A/60/120), and the challenges that need to be addressed by the Economic and Social Commission for Western Asia (ESCWA) to realize its full potential, as reported in the inspection of the programme and administrative management of ESCWA (A/61/61).

(iii) Management response

For the period 1 January to 31 December 2006, OIOS issued 2,038 recommendations to United Nations entities for which it provides oversight coverage. These called for, among other things, the development or improvement of policies and procedures, the enhancement of workflow processes, the strengthening of measures to correct systemic deficiencies, and savings and recoveries. As at 31 December 2006, 50 per cent of all recommendations were implemented.

(iv) Financial implications

During the year 1 January to 31 December 2006, OIOS recommended a total of $13.0 mil-lion in cost savings and recoveries to the Organization, the majority of which were identified in peacekeeping missions. Actual savings and recoveries in this period totalled $2.1 million. The low actual recovery rate shows that the impact of OIOS’s recommendations cannot be fully measured until fully implemented by programme managers.


Acknowledgement

In conclusion, I would like to take this opportunity to acknowledge the efforts of OIOS staff, who work tirelessly and sometimes in very difficult conditions to deliver the oversight man-date. I also commend OIOS staff for their positive attitude to changes in the Office, for the improvements in the quality of our reports and for compliance with professional standards.

Performance section

International peace and security ■

Economic growth and development ■

Development of Africa ■

Promotion of human rights ■

Humanitarian assistance ■

International law and justice ■

Disarmament ■

Drugs, crime and terrorism ■

Refugees ■

Organizational support ■



BackgroundThe primary purpose of the United Nations, articu-lated at the beginning of Article 1 of its Charter, is the maintenance of international peace and security. That fundamental mission informs virtually every chapter of this report, whether on efforts to pro-mote economic and social development or defend human rights, to coordinate humanitarian relief or strengthen international law, to control illicit weap-ons or combat global crime and drug trafficking. And many of the departments and programmes that take centre stage in those later chapters likewise appear as crucial partners in this first chapter. Under most circumstances, there is no fixed boundary separating the Organization’s work on behalf of peace and secu-rity from its other strategic priorities.

Yet in situations of immediate peril, where violence or the impending prospect of conflict poses an imminent threat to stability and order, two parts of the Secretariat take a central role in conducting, organizing and sup-porting United Nations activities: the Departments of Political Affairs and of Peacekeeping Operations. They are therefore the principal actors — though not the

only ones — in this discussion of peace and security in 2006.

The Department of Political Affairs (DPA) moni-tors and assesses global political developments and advises the Secretary-General on initiatives that could advance the cause of peace. It provides support and over-sight to UN peace envoys and political missions in the field, and serves Member States directly through elec-toral assistance and collectively through staff support to the work of the Security Council and other UN bodies. Its services span the full spectrum from conflict preven-tion to peacemaking to post-conflict peacebuilding.

Primarily through the work of its regional divi-sions, DPA regularly provides timely analysis and advice to inform the Secretary-General’s diplomacy. Among other things, DPA’s analysis helps in detecting and responding to potential crises before they erupt. It is also the lead UN department for peacemaking and preventive diplomacy. As such, it contributes directly to the effectiveness of the Secretary-General’s “good offices” — the international credibility, stature and goodwill that help him and his envoys prompt war-ring parties towards peace or deter political and armed

UN Photo/123916


conflicts. Such diplomatic efforts often precede the deployment of UN peacekeeping forces.

The Department of Political Affairs is also the focal point for electoral assistance by the United Nations system, evaluating requests from Member States and ensuring consistency in the delivery of services by the many UN agencies and departments who support the conduct of fair and credible elections. This is a growing area of responsibility and expertise, as elections occupy an increasingly important place in peace processes and political transitions aimed at ending bloodshed or pre-venting disputes from escalating.

The Security Council, in carrying out its crucial functions, relies on the Department’s staff for substan-tive and secretariat support. DPA also provides such support to two standing committees established by the General Assembly, dealing with Palestine and decolo-nization, respectively. Besides its central offices at UN Headquarters in New York, DPA draws from the work of special political missions and peacebuilding support offices under its supervision in Africa, Asia and the Middle East.

The Department of Peacekeeping Operations (DPKO) plans, deploys, manages and provides political and substantive guidance to UN peacekeeping opera-tions around the world. Although the deployment of blue-helmeted troops to monitor ceasefire agreements remains a key aspect of many peacekeeping operations, such operations today often have even more complex mandates to support national authorities in rebuilding the State after devastating and often lengthy periods of conflict. This adds up to a broad range of man-dated tasks, each of which demands appropriate focus, expertise and resources, often at significant levels, both in the field and at Headquarters. It also demands a much higher degree of integration among various lines of work — including political, humanitarian, legal and development efforts, among others — at every level and phase.

By the end of December 2006, more than 100,000 men and women were deployed in 18 UN peace opera-

tions around the world, of which approximately 82,000 were troops, police and military observers provided by contributing countries. Of the 110 nations that had sent uniformed personnel to UN peacekeeping mis-sions, the leading contributors were India, Pakistan and Bangladesh, which together provided more than 40 per cent of UN peacekeepers. The deployment fig-ures are expected to increase in 2007, with the com-pletion of deployments in Lebanon and Timor-Leste that began in 2006, and with the prospect of several new operations under negotiation, including both peacekeeping missions and special political missions. In 2006, 98 UN peacekeepers died in the field.

DPA and DPKO work closely with one another and with other United Nations entities on the ground and at Headquarters in the implementation of their mandates in peace and security. Each collaborates with the United Nations Development Programme, for example, which provides electoral support and reinte-gration assistance to former combatants and supports institution-building and mine-action programmes. Other examples of partners on peace and security within the United Nations family include the High Commissioners for Refugees and for Human Rights, the United Nations Children’s Fund (UNICEF) and the Department of Public Information. Partnerships beyond the United Nations include a global network of regional organizations, international financial insti-tutions, training institutions, academic and research organizations and non-governmental organizations.

Highlights

During 2006, conflicts in the Middle East escalated and expanded onto new terrain as Lebanon was engulfed in a war with Israel, and as hope stemming from Israel’s with-drawal from the Gaza Strip was quickly overshadowed by heightened Israeli-Palestinian (and intra-Palestinian) tensions and violence following the Hamas victory in Palestinian elections. At the centre of international diplomacy in the region, the Secretary-General remained an active participant in the Middle East Quartet, the


Internationalpeace and security

forum consisting of the United Nations, the United States of America, the European Union and the Russian Federation, which works to urge implementation of the road map to peace between Israel and the Palestinians. After Palestinian elections in January, the Quartet urged that any Palestinian Government be committed to the principles of recognizing Israel, renouncing violence and respecting previous agreements with Israel.

Besides advising and assisting the Secretary-General throughout the Quartet process, the Department of Political Affairs also continued to provide oversight and support from Headquarters to UNSCO, the Office of the United Nations Special Coordinator for the Middle East Peace Process. UNSCO, based in Gaza with offices in Jerusalem and the West Bank, is the focal point in the region for UN support to peace initiatives and for the coordination of humanitarian aid to the Palestinian people. (For more on assistance to Palestine refugees, see the chapter “Refugees”.)

There was arguably no greater test during 2006 for UN resolve and effectiveness in preserving inter-national peace and security than the month-long war in Lebanon and Israel, which began after Hizbullah’s kidnapping of two Israeli soldiers on 12 July. More than 1,100 Lebanese were reported killed, along with dozens of citizens of northern Israel and five UN per-

sonnel, during 34 days of intense fighting. The armed confrontation ended with UN Security Council resolu-tion 1701 (2006), establishing a cessation of hostilities and the deployment of an expanded UN peacekeeping force in southern Lebanon. The same resolution reiter-ated the need for a comprehensive Middle East peace, underscoring how tensions in the region are linked.

The Department of Political Affairs played a cen-tral role in a multifaceted UN response to the crisis in Lebanon, which encompassed political- diplomatic, peacekeeping and humanitarian dimensions. (For more detail on UN humanitarian operations in Lebanon, see “Humanitarian assistance”.) DPA pro-vided staff support and policy advice, for example, to the numerous high-level diplomatic initiatives of the Secretary-General and his envoys to the region that helped to bring the conflict to a close. These included the July visit of a “Troika” of senior UN envoys as well as the Secretary-General’s own visit to the region in August, which proved instrumental in ending the Israeli blockade of Lebanon and in assembling the expanded peacekeeping force called for by resolution 1701. DPA also provided continuous oversight and support to the Office of the United Nations Special Coordinator for Lebanon (UNSCOL), a UN political mission based in Beirut that worked through-out the crisis and its aftermath to provide informa-tion and analysis on developments inside Lebanon and to carry out critical diplomacy on behalf of the Secretary-General with parties to the conflict.

The international peacekeeping mission, the 28-year-old UN Interim Force in Lebanon (UNIFIL), had been steadily declining in size and influence before the out-break of hostilities in 2006, shrinking to 2,000 troops from a high in the 1980s of close to 7,000. Following the withdrawal of the Israel Defense Forces (IDF) from south Lebanon in 2000, UNIFIL had become largely focused on that part of its mandate related to restoring international peace and security between Lebanon and Israel. UNIFIL became primarily an observation and monitoring mission, oriented towards the “Blue Line” delineating the boundary between Lebanon and Israel,

UN

Photo/113734


as the UN deployment had neither the mandate nor the resources to run interference between Hizbullah and IDF beyond playing a mediation and liaison role. The tenuous modus vivendi in UNIFIL’s area of operation collapsed with Hizbullah’s attack on Israel on 12 July and Israel’s retaliation.

With the passage of resolution 1701, UNIFIL was given a robust and detailed mandate and its author-ized strength increased to 15,000. Its newly expanded mission includes, among other things, monitoring the cessation of hostilities, assisting the Lebanese Armed Forces (LAF) in establishing an area free of unauthor-ized armed personnel, assets and weapons south of the Litani River, and assisting the Government of Lebanon in exercising its authority throughout the south. The unprecedented speed of the deployment, rising to a force of 8,000 in less than two months, enabled the withdrawal of IDF and the deployment of LAF per-sonnel for the first time in decades throughout south Lebanon, including down to the Blue Line. UNIFIL organized tripartite meetings with LAF and IDF — the first in many years — to ensure that this pro-cess proceeded without any major hitches. However, a political process leading to a permanent ceasefire, and ultimately a peace agreement, remains elusive at best, and tensions continue to simmer.

In a significant departure from recent prac-tice, European countries have taken the lead in UNIFIL and are contributing troops in large numbers, alongside such traditional contribu-tors as Ghana and India. Prior to this size-able deployment of European Blue Helmets to Lebanon, less than 6 per cent of all UN peace-keepers serving globally came from the conti-nent. The 7,000 European troops pledged to UNIFIL more than doubled the total number of military troops coming from European/NATO countries in all UN peacekeeping mis-sions combined. In order to address European concerns about command and control, DPKO, in consultation with key troop contributors (France and Italy in particular), established a new structure, the Strategic Military Cell, to

provide high-level military strategic advice and guidance to the Under-Secretary-General for Peacekeeping and, through him, to the Force Commander.

By year’s end, political divisions in Lebanon that were exacerbated by the war constituted one of the most important obstacles to the full implementation of resolution 1701, as well as to the success of other pre-existing UN efforts for a peaceful and indepen dent Lebanon. These include the work of the United Nations Independent Investigation Commission investigating the 2005 assassination of former Prime Minister Rafik Hariri and other crimes, as well as the efforts being led by the UN Office of Legal Affairs to assist Lebanon in the establishment of a Special Tribunal to try those accused in the killings. (Both efforts are described more fully in the chapter “International law and justice”.)

UN efforts at peace and security likewise faced severe challenges in the Sudan in 2006. The main focus of the United Nations Mission in the Sudan (UNMIS) has been to monitor and actively support the implemen-tation of the Comprehensive Peace Agreement (CPA) of 2005. Yet the deteriorating crisis in the Sudan’s west-ern Darfur region and international efforts to resolve it increasingly involved UNMIS and the Department of Peacekeeping Operations as the year progressed.

UN

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The peace agreement’s power-sharing process achieved a significant milestone in July, when the Sudan People’s Liberation Army completed the with-drawal of the last of its soldiers from eastern Sudan and moved them to the south, as the CPA requires. Meanwhile, the Sudan Armed Forces (SAF) contin-ued to withdraw from the south, with a target date of July 2007 for its CPA-prescribed redeployment to the north. UNMIS was then able to close down its operations in eastern Sudan in September, while also deploying over 600 police officers to the south. The police assisted with community policing in Juba, the traditional capital of Southern Sudan, and in training the newly formed Southern Sudan Police Service. In addition, during 2006, UNMIS helped to strengthen the war-torn infrastructure in the south by assisting with the demining and repairing of more than 300 kilo-metres of roads.

Despite its resource problems, UNMIS provided support to the Darfur talks in Abuja in 2006, which culminated in a Darfur Peace Agreement in May between the Government of the Sudan and one faction of the Sudan Liberation Army/Movement. However, the post-agreement period witnessed an increased splintering and realigning of the rebel groups, with conflicting and competing demands, as well as an increase in hostilities between signatories and non- signatories. The African Union Mission has increas-ingly become the target of attacks. Meanwhile, major ceasefire violations committed by all parties and the apparent attempt by the Government to seek a military solution to the crisis have cast the long-term viability of the peace agreement into question.

The small size of the African Union Mission and deteriorating conditions in the region led the African Union Peace and Security Council to request that its mission transition to a UN peace operation. The Security Council authorized the expansion of UNMIS into Darfur to protect civilians and support the imple-mentation of the Darfur Peace Agreement, though the Government of the Sudan has thus far not given the necessary consent for the expansion to proceed.

As 2006 drew to a close, the appointment of a Special Envoy of the Secretary-General in December signifi-cantly intensified UN efforts towards peace in Darfur.

In contrast to the difficulties faced in the Sudan, a major bright spot in international peace and security was the signing of a comprehensive peace agreement in Nepal in November 2006, ending a decade-long conflict that claimed some 13,000 lives. Though this was foremost an achievement of the parties and the people of Nepal, the United Nations played an impor-tant role in encouraging the politically negotiated solution and in providing advice at every stage of the process. Working on behalf of the Secretary-General, DPA’s diplomacy over the course of several years with all parties in Nepal was an important factor in posi-tioning the Organization to assist in peace talks and in the subsequent monitoring and implementation of the agreements. By year’s end, the United Nations was moving rapidly to respond to a request from Nepal’s Government and Maoist insurgents to deploy a UN political mission to support the peace process in key areas including arms monitoring, electoral assistance and human rights.

Nepal’s peace agreement came on the heels of a dra-matic “people’s movement” in April 2006 that forced an end to direct rule by the country’s constitutional mon-arch just over a year after King Gyanendra had assumed full executive powers. Throughout a tense political crisis, the presence on the ground of a field office of the High Commissioner for Human Rights helped to build con-fidence in the United Nations and was widely credited with deterring violence. (A fuller discussion of human rights accomplishments in Nepal appears in the chapter “Promotion of human rights”.) The Secretary-General and others in the international community urged the King of Nepal to restore democracy, return to peace talks and respect human rights. Following the restoration of democratic institutions, the peace process resumed and rapidly led to agreements and the outlines of a peace settlement through which the Maoists would end their armed struggle and enter the political mainstream through Constituent Assembly elections in 2007.


After a preliminary request for UN assistance to this process, a Personal Representative of the Secretary-General was established in Nepal in August, assisted by a team of advisers. This initial political presence on the ground was instrumental throughout the remainder of the year in helping the parties forge a consensus position on the United Nations role, and in planning for an eventual UN political mission.

Following the signing of the Comprehensive Peace Accord on 21 November 2006, the United Nations moved quickly to assist in the implementation. On 8 December, following tripartite negotiations includ-ing the United Nations, the parties concluded an agreement spelling out detailed modalities for UN monitoring of the cantonment of the Maoist forces, the restriction of the Nepal Army to its barracks and the storage of arms and munitions during the transi-tion period leading to the election of the Constituent Assembly. This would be one of the keys to ensuring an environment free of fear and intimidation in which an interim government could be formed and a credible election held.

Later in December the Secretary-General, acting with the consent of the Security Council, initiated the deployment to Nepal of an advance group of 35 unarmed UN arms monitors and 25 civilian electoral experts. He simultaneously dispatched an interdis-ciplinary assessment mission to the country, led by

DPA, to develop a concept of operations and recom-mendations for the design of a full-fledged UN politi-cal mission to support the peace process. Crucial oper-ational support from the Department of Peacekeeping Operations helped make possible the arrival of the first UN monitors on 24 December. With that step, the United Nations was well on its way to the success-ful deployment in early 2007 of the United Nations Mission in Nepal (UNMIN).

Another bright spot, albeit still tentative, appeared on 26 August 2006, with the signing of a cessation of hostilities between the Government of Uganda and the Lord’s Resistance Army (LRA). The agreement offers the prospect of an end to the brutal 20-year con-flict in northern Uganda, in which more than 100,000 people have died and children have been widely victimized. The United Nations played a valuable behind-the-scenes role in assisting the talks, mediated by the Government of Southern Sudan, that led to this breakthrough and continued thereafter in hopes of leading to a definitive peace accord.

Throughout the mediation process leading up to the Cessation of Hostilities Agreement, the United Nations was the sole international actor support-ing the peace process. DPA and the Office for the Coordination of Humanitarian Affairs provided staff support and advice to the mediators and helped to generate logistical support and funding for the talks. Senior DPA officials with experience in conflict medi-ation in Africa travelled to the site of the talks and provided direct assistance and advice to the media-tion team. The Organization helped to augment the fragile resource base of a complex mediation that involved not only the direct parties to the conflict but also community leaders from northern Uganda who have influence over LRA. The United Nations secured some $6 million in donor assistance through the Juba Initiative Project.

In December, as the peace process appeared to stall and parties had failed to move beyond the Cessation of Hostilities Agreement to address the substan-tive issues at the heart of the conflict, the Secretary-

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General appointed a Special Envoy for the LRA-affected areas. His mandate is to help solidify the peace process and build support for it in the region. As the year drew to a close, the peace process was in a fragile state. Although the talks remained deadlocked over these and other issues, the parties agreed on 16 December to extend the cessation of hostilities until the end of February 2007. The UN Special Envoy, with assistance from DPA, prepared to carry out his first visit to the region. Expectations were high that the United Nations would succeed in shoring up the African-led mediation effort and helping to restore momentum to the process.

Across Uganda’s western border, the United Nations Mission in the Democratic Republic of the Congo (MONUC) saw further progress in 2006 in establishing a free, fair and transparent electoral system and long-term stability in a country that has been beset by regional conflict for more than a decade. Following a successful constitutional referendum in 2005, the first democratic vote in the Democratic Republic of the Congo (DRC) in 40 years, MONUC assisted the country’s Independent Electoral Commission in organizing national legislative and presidential elec-tions in July 2006. These proved to be the largest and most complex election process ever supported by a UN mission, and also the most expensive, at a total cost of nearly $500 million.

With more than 17,000 uniformed personnel and some 100 aircraft, MONUC provided vital logistical and technical support for elections across a country that equals all of Western Europe in size. The UN mission supported the recruitment and training of more than 250,000 polling agents and transported more than 3,500 tons of electoral material in UN air-craft and other vehicles from four logistic bases to over 200 destinations around the country. MONUC also supported the collection of election results from more than 50,000 polling stations, transporting them to 62 destinations where the results were processed. The mission held and supported training sessions to ensure a well-prepared cadre of polling agents throughout the DRC. A total of 73,000 Congolese police officers were

mobilized for the elections, more than half of them trained by MONUC.

All told, 25.7 million people were registered to vote, and the resulting electoral process initiated a new period of constitutional government. UN electoral assistance is typically a collaborative effort of various departments. In the case of the historic vote in the DRC, DPA’s Electoral Division carried out the initial needs assessment mission at the start of the process, worked with DPKO to design the electoral compo-nent within MONUC, and continued to provide technical advice and support as the various rounds of elections unfolded.

At the end of 2006, MONUC was the largest UN peacekeeping operation in the world, with more than 16,000 troops, 1,100 police, 3,800 civilian personnel and a budget in 2006 over $1 billion. In conducting its operations in 2006, MONUC continued successfully to apply the integrated mission approach that has increased both the effectiveness and the efficiency of UN activ-ity in areas where the Organization is simultaneously addressing a web of political, military, humanitarian and other needs. In the DRC, the approach involves joint planning mechanisms and coordinated activities with all relevant UN agencies in such areas as elections, secu-rity, gender and child protection.

Elections in the DRC were part of a larger pat-tern of progress towards stability in the Great Lakes Region of Africa, where, for example, the last armed rebel group was brought into the political process in Burundi, after more than a decade of civil and ethnic conflict there. In December 2006, the United Nations Operation in Burundi (ONUB) completed its man-date, having overseen the first democratic elections in 12 years, the installation of a national Government and the disarmament and demobilization of nearly 22,000 combatants. At the same time, the interna-tional community pledged its continued support and commitment for the sustainability of the peace process in Burundi by establishing a new Integrated Office in the country on 1 January 2007, to support the new Government in its peacebuilding efforts.


Taken together, these events not only were signs of progress within the DRC and Burundi, but also dem-onstrated the broader impact of a UN-backed effort to consolidate peace across the whole area through greater regional cooperation. That effort, the International Conference on the Great Lakes Region, reached a major milestone on 16 December 2006 with the sign-ing in Nairobi, by 11 countries in the wider region, of the Pact on Security, Stability and Development for the Great Lakes Region. The signing of the pact cul-minated a four-year diplomatic process and brought to fruition an idea that first originated after the Rwandan genocide of 1994 and the subsequent conflicts it helped trigger: that lasting peace could only come to the Great Lakes through a regional approach. The pact now pro-vides, for the very first time, a framework for the core countries collectively to identify the key problems fac-ing the region, and to work together to formulate plans for addressing them.

As in Burundi, emphasis likewise shifted from peacekeeping to peacebuilding in Sierra Leone in 2006, with the establishment of a United Nations Integrated Office in January, following the withdrawal of the UN peacekeeping mission at the end of the previous year. However, the transition from peacekeeping to peace-building was interrupted in Timor-Leste as violent clashes took place in the capital city of Dili in April and May, just as the mandate of the United Nations Office in Timor-Leste (UNOTIL), which had been established in 2005, was coming to an end. Following a breakdown of law and order and the disintegration of the national police in Dili, the leaders of Timor-Leste in May requested assistance from the Governments of Australia, Malaysia, New Zealand and Portugal for police and military assistance to restore security.

On 11 June, the President of Timor-Leste, the President of the National Parliament and the Prime Minister wrote to the Secretary-General to request a “robust United Nations police, military and civil-ian mission” to succeed UNOTIL. In response, the Secretary-General appointed a Special Envoy to lead a multidisciplinary assessment mission to Timor-

Leste to develop recommendations for an integrated UN mission. Taking account of the underlying causes and consequences of the crisis, the assessment mission identified the scope of tasks that would most appropri-ately be undertaken by a post-UNOTIL mission and developed recommendations on a comprehensive and integrated approach for a future UN presence.

On 25 August, the Security Council adopted reso-lution 1704 (2006), establishing the United Nations Integrated Mission in Timor-Leste (UNMIT), con-sisting of 1,608 civilian police, 34 military liaison officers, and international and national civilian staff. UNMIT has pursued an integrated approach with the UN country team to coordinate activities in mandated priority areas, taking account of the Government-led international compact framework, and to work in a complementary manner in order to achieve greater impact in implementing its wide-ranging mandate.

An immediate task of UNMIT during the initial months was to ensure the restoration and maintenance of public security in Timor-Leste through interim law enforcement, while conducting a screening process for the national police. UNMIT also proceeded with a comprehensive assessment of the national police to serve as the basis for the development of a reform, restructur-ing and rebuilding plan covering all aspects of capacity-building and institutional development of the force.

Haiti is another example of the complex, multi-dimensional UN peacekeeping operations that DPKO continued to manage in 2006. The United Nations Stabilization Mission in Haiti (MINUSTAH) contin-ued to build on the progress it had made with regard to integration in 2005 and assisted Haitian authorities in organizing and conducting presidential, parliamentary and local elections. It helped develop a police reform plan, participated in joint anti-crime operations and supported the extension of State authority.

Kosovo entered an important new phase in 2006, following the Secretary-General’s earlier appointment of a Special Envoy for Kosovo’s future status process. Since 1999, the UN Interim Administration in Kosovo



(UNMIK) has carried out administrative duties in the area, in conjunction with the Kosovo Force, led by NATO, which is responsible for maintaining security. The Special Envoy and his staff chaired a number of talks between Belgrade and Pristina in 2006, yet after more than a year of negotiations (which spilled over into the early months of 2007) no substantial agreement had been achieved and the positions of the parties on the crucial issue of Kosovo’s status remained far apart. Concluding that further talks would be unlikely to break this deadlock, the Special Envoy presented a set-tlement proposal to the Security Council in 2007, where it remains under consideration as this report is written.

Just as 2006 highlighted the growing strains on UN peacekeeping, it also underscored the importance of conflict prevention as a potentially cost-effective means of avoiding the escalation of crises into violent conflicts that eventually may require the presence of peacekeepers. In an effort to give renewed attention to this theme, the Secretary-General submitted to the General Assembly in June a major “Progress report on the prevention of armed conflict”. Drawing on the results of a system-wide capacity review conducted by the Department of Political Affairs, the report measured advances in the last five years in building UN capabilities across a range of activities to

deter violence. These include not only preventive diplo-macy when a crisis appears imminent, but also such meas-ures as the promotion within countries of participatory democracy, good governance, human rights and equitable development. The report also analysed the Organization’s capacity to address global risk factors that transcend boundaries, such as trafficking in small arms.

The report’s conclusions were sobering. While not-ing that a growing “culture of prevention is beginning to take hold at the United Nations”, the report still found system-wide weaknesses and an unacceptable gap between the rhetorical importance attached to preven-tion and the dearth of resources and political will actu-ally dedicated to this goal. Among other recommenda-tions, the report challenged Member States to earmark to conflict prevention each year an amount of money equivalent to a small percentage of the annual peace-keeping budget. Just a fraction invested in conflict pre-vention in the past five years “would surely have saved both lives and money”, the Secretary-General wrote.

Building support for prevention can be difficult, given that success is hard to measure other than in the absence of conflict. Nonetheless, in 2006, at least three instances of effective prevention illustrated the benefits of increasing investment in this area:

• AborderdisputebetweenNigeriaandCameroon took a major step towards its final resolution with an agreement reached in June by which Nigeria subsequently completed the withdrawal of its troops from the disputed Bakassi Peninsula. The Greentree Agreement was achieved through nego-tiations between the Presidents of the two countries mediated by the Secretary-General, with support and follow-up by DPA and the Secretary-General’s Special Representative for West Africa.

• Elections intheGambiatook place peacefully in September, despite a period of tense and polarized political discourse leading up to them. Many actors in the country credited part of the success to the work of a UN Special Envoy to the Gambia, dis-patched upon DPA’s recommendation, who acted

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as a mediator and facilitator before, during and after the elections.

• NationalelectionsinGuyana in August were far less tense and violent than in previous years due to the success of Guyanese-led efforts — involving political parties, media and various public institu-tions — to manage conflict more peacefully this time. These efforts received important and coor-dinated support from DPA, the United Nations Development Programme, the Department of Economic and Social Affairs, UNICEF and others before, during and after the elections.

Performance analysis

In assessing the performance of the Department of Political Affairs in 2006, it is essential to begin by noting that the Department continued to be ham-pered throughout 2006 by chronic budget shortfalls. Though previously documented in the 2005 report of the Secretary-General’s High-level Panel on Threats, Challenges and Change, these chronic resource defi-ciencies were reiterated in a number of new assessments of UN capacity during 2006. The Secretary-General’s five-year progress report on prevention, mentioned under “Highlights”, was one of these. Another was a report published in May on the results of an evaluation of DPA’s regional divisions by the Office of Internal Oversight Services (OIOS). The regional divisions bear primary responsibility for monitoring global developments and advising on actions to prevent and resolve conflict.

With the support of Member States, DPA took important first steps during 2006 to remedy some of these constraints by strengthening the Department’s ability to support conflict mediation. The establish-ment of DPA’s Mediation Support Unit (MSU) and its initial activities during the second half of 2006 were made possible by the approval of a small core staff through the regular UN budget as well as through important voluntary contributions. By the end of the year, a number of new initiatives were either completed

or under way under the MSU umbrella. These include: (a) the launch in October 2006 of the UN Peacemaker website (www.un.org/peacemaker) containing a data-base of peace agreements, lessons learned and other tools for peacemaking professionals; (b) initial steps towards the establishment during 2007 of a standby team of mediation experts who are on call to assist UN and non-UN peace envoys in the field; and (c) initial development of systems to train mediators and to put in place debriefing mechanisms to ensure that institu-tional memory is built up and preserved.

In another priority area for DPA, electoral assist-ance, requests for technical assistance from Member States have increased in complexity in recent years. This is especially true in Africa, which accounts for one half of the countries receiving United Nations electoral assistance. Many countries have gone through several electoral cycles and now seek the assistance of the United Nations in consolidating their electoral institutions and ensuring their sustainability. The Department’s electoral assistance staff continues to broaden its own electoral knowledge, to enlarge and diversify its roster of expert consultants and to strengthen its partnerships within and outside the UN system.

One extremely important responsibility of DPA is supporting the work of the Security Council and its subsidiary organs, a function on which the Department’s Security Council Affairs Division takes the lead role. The intensity of the Security Council’s work in 2006 strained the Division’s human resources, and to compensate for staffing shortages it continued to strengthen internal procedures and outputs and to increase coordination and information-sharing within the Division.

Several DPA-managed political missions operate in extraordinarily difficult security and political environ-ments in which the context itself poses sizeable obsta-cles to success. This is the case in Iraq, for example, where the United Nations Assistance Mission in Iraq (UNAMI) continued — despite security constraints that limit staff size and mobility — to make contri-butions to efforts by Iraq and the international com-



munity to reduce the violence, assist those in need and promote a path towards reconciliation and recovery. In July 2006, the United Nations and the Government of Iraq jointly initiated the preparatory process leading to the launch in early 2007 of the International Compact with Iraq, a five-year effort to bring Iraq and the inter-national community together around a shared vision for the future.

Continuing UN efforts in Somalia were also con-strained by security factors and a fast-moving situation on the ground that posed a serious threat during 2006 to the internationally recognized Transitional Federal Government (TFG) and the process of national rec-onciliation through which it was formed. Leading the UN Secretariat’s response — as the sudden spread of the Union of Islamic Courts heightened tensions between the Courts and the TFG — was the United Nations Political Office for Somalia (UNPOS), headed by a Special Representative of the Secretary-General. While continuing to work from a base in Nairobi due to the prevailing insecurity in Somalia, the Special Representative was an active participant in efforts to broker compromise between the TFG and the Union of Islamic Courts. Following the passage of Security Council resolution 1725 (2006), authorizing an African-led protection force to defend the fledgling Government, UNPOS remained active in encouraging the TFG to reach out to its opponent in an inclusive dialogue that could be the basis for lasting peace.

For the Department of Peacekeeping Oper-ations, the first consideration in assessing perform-ance for 2006 was the surge in peacekeeping activity that took place in this single year alone. At the begin-ning of 2006, DPKO supported 18 peace operations and 13 other field missions and offices, involving approximately 85,000 deployed personnel overall. By year’s end, after such events as the redeployment of peacekeepers in southern Lebanon and Timor-Leste and concerted reconnaissance for possible operations in Chad and the Central African Republic, DPKO was still directing 18 peacekeeping operations, but these had grown to encompass roughly 100,000

military, police and civilian personnel. Meanwhile, the Department was providing administrative and logistical support for another 15 UN special politi-cal missions and offices around the world as well as to the African Union Mission in Darfur. The current annual budget for UN peacekeeping is approximately $5.6 billion, which represents 0.5 per cent of global military spending.

However, the scope of peacekeeping activity can-not be measured in numbers alone. United Nations peacekeeping operations today are deployed with complex mandates to support national authorities in rebuilding the State after devastating and often lengthy periods of conflict. Besides assisting in the maintenance of security and public order, peacekeep-ing missions normally must also support the restora-tion of essential services and help in tackling the root causes of conflict. These expansive mandates must be pursued in environments that are often volatile and insecure, where peacekeepers may be resisted by fac-tions and armed groups that remain outside of the established peace process. Even where missions are not military in nature — such as in Afghanistan, where the UN Assistance Mission is limited to political and social goals such as resolving disputes, institution-building and monitoring human rights — progress is often limited by volatile surroundings and a general lack of security.

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Even where political and security conditions are favourable, the operational challenges for UN peace operations are daunting. The modern peacekeeping environment is often remote and difficult, with little infrastructure or communications. The largest cur-rent operation, the UN mission in the Democratic Republic of the Congo, is deployed in a country the size of Western Europe that has only 300 miles of paved road. UN field missions face practical challenges such as limited or severely weakened local markets for goods and services and the lack of housing stock, potable water or sufficient fresh food supplies. The logistic and supply challenges facing many missions make deployment a highly complex issue in which speed is only one of several considerations that must be addressed.

The increase in the number, scope, size and opera-tional environment challenges for UN peace operations has consequences for the way in which field missions are managed and supported by Member States and the Secretariat. The necessary attention that must be devoted to planning, launching and deploying new mis-sions constrains the amount of time and energy avail-able for managing ongoing missions. The impact of this reality is most often felt in those areas most crucial for the successful and timely termination of a peacekeeping operation: regular reflection and review of strategy; eval-uation and adaptation of policies and plans in response to developments on the ground; monitoring and oversight of mission activities and UN personnel; and early warn-ing and action procedures to ensure a rapid response to problems and challenges as they arise.

Another significant challenge is securing adequate numbers of highly qualified and experienced person-

nel and sufficient quantities of materiel for UN opera-tions. The level of activity required to raise, support and rotate the 100,000 people currently in the field strains the capacity of the countries that recruit and sponsor these personnel as much as it weighs on UN Headquarters and field staff. When coupled with the difficult operating environments, the personnel chal-lenges inevitably affect the timeline for the deployment and full staffing of a new peace operation. When more than one such operation is being planned in parallel, the impact is greater still.

The increasing establishment of “integrated mis-sions” also demands a degree of coordination and co operation with UN agencies, funds and programmes, as well as the Bretton Woods institutions, for which structures, plans and processes have only recently begun to be elaborated. Enhancing strategic partnerships with multilateral and regional organizations has become an important aspect of the burden- sharing of peacekeep-ing. United Nations personnel conti nue to work along-side forces of the North Atlantic Treaty Organization in complex efforts in Kosovo and Afghanistan, and there continues to be close co operation with the Organization of American States in Haiti. Considerable progress has also been achieved during 2006 in strengthening the partnerships with the European Union and the African Union with regard to peacekeeping.

Among the organizational accomplishments of 2006 has been the creation of an initial operating capa-bility for standing police capacity. This new resource will provide for the coherent, effective and respon-sive start-up for the law enforcement component of peacekeeping operations as well as assist with current operations.

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Background

The United Nations serves as the central forum for the nations of the world to deliberate, reach agree-ments and act in concert to address global concerns. In the previous chapter, discussion of the Organization’s work focused on various kinds of direct intervention on behalf of Member States in locations of real or potential conflict. However, in other areas of worldwide concern, such as the promotion of sustainable social, economic and environmental development, the Organization’s work often takes the form not so much of interven-tion as of consensus- building and facilitating action on multiple levels. For many challenges, the first objective of the United Nations is to pursue international agree-ment on standards, goals and responsibilities, and then to encourage and support individual States and multi-national bodies in achieving them.

In advancing the cause of sustainable social and eco-nomic development for all, the means of defining goals and organizing action include, first of all, a normative process: the examination of issues and possible global responses, culminating in a set of internationally agreed development goals on which States make concrete

commitments to work collectively. This process has been driven, in the past decade, by a series of landmark conferences and summits, prominently including the Millennium Summit of 2000, which adopted what are now called the Millennium Development Goals (MDGs) and also outlined a wide range of commit-ments in human rights, good governance and democ-racy. The MDGs have been strengthened and refined in subsequent gatherings, including the World Summit of 2005, and remain at the heart of the global economic, social and environmental development agenda.

Reaching normative decisions and acting on them depend on a parallel analyticaleffort, in which many parts of the UN system contribute research, analysis and policy development to inform States’ deliberations and action as well as the work of intergovernmental bodies and civil society. Critical analytical support from the United Nations also serves to monitor and evalu-ate progress, and obstacles to progress, on international goals. To facilitate such progress, the United Nations likewise provides operational support to Member States and international bodies to translate global com-mitments into national policies and actions, and to build regional and national capacities for implementation.

Monitor and evaluate progress and obstacles to progress:

Realign priorities, policies and actions.

Facilitate implementation of commitments at all levels —

global, regional, country.

Forge commitments to specific courses of action, including

time-bound targets.

Build policy consensus on goals, guiding principles

and solutions.

Identify and promote understanding of global development issues — economic, social, environmental:

Analyse policy options for addressing the issues.

Five phases of action on development issues:the development sequence


The United Nations is the only organization able to support all three tracks — normative, analytical and operational — simultaneously at the global, regional and national levels.

A central actor in supporting the UN development agenda is the Department of Economic and Social Affairs (DESA), which works with a wide range of organizations both within and outside the UN system to carry forward the agenda and its vision for a shared future. DESA’s core functions include: (a) promoting intergov-ernmental consensus and commitments; (b) conducting research and analysis on key development issues to elabo-rate policy options and advice; (c) supporting the global statistical system, which is criti cal to tracking and evalu-ating progress; and (d) providing technical assistance to countries to help implement agreed policies. These func-tions, and the Department’s related activities, cover the entire development sequence illustrated in the accompa-nying diagram.

In partnership with a wide range of actors — includ-ing civil society and many parts of the UN system, such as the United Nations Development Programme

(UNDP), the International Labour Organization (ILO) and the World Bank — DESA works to inform and affect the direction of policy processes across glo-bal, regional and national levels. The Department works within a framework of cooperation over nearly the entire range of development matters, encompassing social and economic issues, finance, statistics, population, gender, public administration, the environment and more.

The five UN regional commissions support inter-national action by promoting regional cooperation on development issues in their respective parts of the world: Africa, Asia and the Pacific, Europe, Western Asia, and Latin America and the Caribbean. The commissions have strong analytical and normative capabilities that complement their operational activi-ties and the regional efforts of UN funds and pro-grammes. They also monitor and advance progress in their respective regions towards internationally agreed development goals, including the MDGs.

To achieve sustainable development for all people, environmental protection is a fundamental element of the international agenda, alongside economic and



social goals. To ensure that the environmental dimen-sion of sustainable development is pursued in a coordi-nated, coherent way, the United Nations Environment Programme (UNEP) serves as the voice of the envi-ronment in the UN system. UNEP is an advocate, educator, catalyst and facilitator, promoting the wise use and conservation of the planet’s natural assets for sustainable development. The Programme supports the full integration of environmental stewardship into national and international efforts towards agreed development goals, particularly the goal of eradicating extreme poverty and hunger. Achieving this and other goals depends in large part on ensuring a sustainable natural resource base to support the livelihoods of people emerging from poverty.

The unprecedented growth of urbanization world-wide poses tremendous challenges for sustainable develop ment — challenges that form the core mis-sion of the United Nations Human Settlements Programme (UN-Habitat). The Programme pro-motes socially and environmentally sustainable cities and towns that provide decent, affordable dwellings, basic services and economic opportunities for poor res-idents. It advocates for inclusive urban governance and

the right to residential security of tenure. Its strategic goal of Cities without Slums rests on four pillars: advocacy of global norms, analysis of information, field-testing of solutions, and financing.

International trade likewise poses critical opportu-nities and challenges for sustainable growth, particu-larly in developing countries and those with economies in transition. To help them, and the least developed countries in particular, successfully integrate into the global economy is the primary objective of the United Nations Conference on Trade and Development (UNCTAD). Established in 1964, UNCTAD serves as the focal point in the UN system for the integrated treatment of trade and development and interrelated issues in the areas of finance, technology, investment and sustainable development. A partnership between the World Trade Organization and the United Nations, with the latter acting through UNCTAD, led to the creation of the International Trade Centre (ITC). As the joint technical cooperation agency for the two parent organizations, ITC provides integrated trade-development programmes focusing on export success for business in developing countries. ITC delivers technical assistance in three key areas: strengthening the international competitiveness of enterprises, devel-oping the capacity of trade-service providers to sup-port businesses, and supporting policymakers in inte-grating the business sector into the global economy.

The development challenges facing the three most vulnerable groups of countries are the special concern of the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (OHRLLS). The three groups comprise as many as 90 countries — 36 of them in Africa — amounting to almost half of the total United Nations membership. The Office works in three related ways. It mobilizes and coordinates action by various members of the UN system on behalf of the respect-ive groups of countries. It advocates for the interests of the countries, in partnership with relevant parts of the UN system and with the civil society, media, academia

The Millennium Development Goals

1 Eradicate extreme poverty and hunger

2 Achieve universal primary education

3 Promote gender equality and empower women

4 Reduce child mortality

5 Improve maternal health

6 Combat HIV/AIDS, malaria and other diseases

7 Ensure environmental sustainability

8 Develop a global partnership for development

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and foundations. And it helps mobilize international support and resources for the implementation of the programmes of action related to all three groups of countries.

At the dawn of the space age, in 1959, the General Assembly established a Committee on the Peaceful Uses of Outer Space to promote international co operation in ensuring that space research and technology, as well as relevant international law, contribute to economic and social development. The Office for Outer Space Affairs (OOSA) serves as the Committee’s secre-tariat and implements the UN Programme on Space Applications. The Office conducts training courses, workshops, seminars and advisory activities with the aim of further promoting, through international co operation, the use of space technologies and data for sustainable economic and social development in devel-oping countries. Its work covers a wide range of areas in which space science and technology can contribute to an improved quality of life, including disaster man-agement, environmental protection, natural resources monitoring, tele-health and tele-education, as well as prevention of infectious diseases.

Highlights

Advancing the development agenda

The United Nations Economic and Social Council (ECOSOC), one of the principal organs of the United Nations established by its Charter, is the central forum for discussing and formulating policy recommenda-tions on economic and social issues. The 2005 World Summit strengthened the Council’s role in leading and guiding the development agenda in the twenty-first century. Building on the World Summit outcome, the General Assembly in 2006 adopted further legisla-tion to strengthen ECOSOC. Throughout the delib-erations in the General Assembly, DESA developed options and analyses to inform debate and to outline possible approaches. The cumulative impact of these efforts helped stimulate the interest of world leaders in

putting ECOSOC at the centre of efforts to monitor and advance implementation of the development agenda in a unified and coherent way.

The newly empowered ECOSOC will hold Annual Ministerial Reviews of implementation of the internationally agreed development goals, including the MDGs. It will convene a biennial Development Cooperation Forum to examine the range of issues involved in development cooperation and to strengthen its contribution to achieving the development goals. The Council will also hold ad hoc meetings on specific humanitarian emergencies, to raise awareness and pro-mote engagement of all stakeholders in international relief efforts. And it will interact with the newly estab-lished Peacebuilding Commission on the economic and social dimension of post-conflict recovery, an essential element in ensuring a durable peace.

In 2006, ECOSOC’s high-level segment con-sidered the importance of promoting full employ-mentanddecentworkforall. The Council adopted a Ministerial Declaration on Full Employment and Decent Work, which identifies a number of concrete steps for implementing the 2005 World Summit com-mitment to make full and productive employment a central objective of national and international policies, and systematically monitoring progress towards that goal. DESA, through its Office of ECOSOC Support and Coordination, helped to enlist and support the participation in the debate of a large number of minis-ters and high-level officials from capitals with diverse portfolios such as economic cooperation, planning and labour. It also elicited exceptional cooperation from many parts of the UN system whose work was critical to various aspects of the debate, especially ILO. This in turn helped to bring about a comprehensive treatment, in a number of round-table discussions, of different, interrelated dimensions of the challenge of employ-ment generation and decent work.

Another significant event of 2006 was the High-level Dialogue on International Migration and Develop ment, which the General Assembly con-



ducted on 14 and 15 September. The Commission on Population and Development, which is serviced by DESA, was excellently placed to make a major contri-bution to the Dialogue, which identified ways of maxi-mizing the development benefits of international migra-tion and minimizing its negative impacts. The Dialogue also focused on policy issues, including the challenge of achieving the MDGs. Organized and supported by DESA, the discussion proved that international migration can be debated constructively in the United Nations. The Dialogue affirmed several messages con-tained in the report of the Secretary-General prepared by DESA’s Population Division, namely: (a) that inter-national migration is a growing phenomenon and a key component of development; (b) that it can be a positive force for development for countries of both origin and destination, when supported by the right policies, includ-ing respect for the fundamental rights and freedoms of all migrants; and (c) that it is important to strengthen international cooperation on international migration.

In October 2006, the Secretary-General released an in-depth study onviolenceagainstwomen, a com-prehensive examination of the universality, breadth and depth of this critical issue and of the gaps and challenges in the public response. Two months later, the General Assembly adopted, by consensus, a resolu-tion providing guidance on the follow-up to the study by different stakeholders, including Member States at the national level, entities of the UN system and inter-governmental bodies. The study’s vigorous analytical input, which DESA’s Division for the Advancement

of Women synthesized, was crucial to its success. Preparation of the study involved an extensive pro-cess of consultations and inputs by Member States, NGOs, UN entities, experts and other stakeholders, thus drawing from existing research, knowledge and experience at the national, regional and global levels.

DESA’s analytical expertise was also critical to another publication in the past year, the World Economic and Social Survey 2006 (WESS). This edition of the annual Survey addressed the issue of increasingly divergent growth and development world-wide and identified the main factors underlying this trend. The WESS noticed that only a few developing countries had been growing at sustained rates in recent decades, while the rest remained unable to break away from a low-growth path. As a result, these countries remain vulnerable to global shocks, prone to conflicts and unable to make strides against poverty. The analy-sis provided in the WESS by DESA’s Development Policy and Analysis Division supported the intergov-ernmental debate in such forums as ECOSOC, includ-ing its high-level segment, and the Second Committee of the General Assembly.

For more than four years, DESA has supported the work of an Ad Hoc Committee of the General Assembly to produce an international Convention on theRightsofPersonswithDisabilities. In Decem ber, the Committee produced a final draft, and the General Assembly adopted it, together with its Optional Protocol. The new Convention offers States that will ratify it an effective tool for promoting and protect-ing the rights of all persons with disabilities, explicitly addressing the developmental challenges posed by the inclusion of 650 million persons with disabilities into the development mainstream while achieving interna-tionally agreed development goals.

The Convention is the first human rights treaty to be adopted in the twenty-first century and one of the most rapidly negotiated treaties in the history of inter-national law. Extensive use of the Internet, including real-time posting and dissemination of amendments, comments and proposals, together with issuance of

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documents in alternative formats (e.g., Braille), all facilitated by DESA’s Division for Social Policy and Development, greatly accelerated the pace of nego-tiations. Between 2004 and 2006, DESA raised substantial funds to ensure full participation of civil society participants with disabilities from developing countries.

The UN Forum on Forests, which is also serviced by DESA, came to an agreement in 2006 on the future direction of international forest policy. After two weeks of intense negotiations, the sixth session of the Forum agreed on four shared global objectives: revers-ing the loss of forest cover worldwide through sus-tainable forest management; enhancing forest-based economic, social and environmental benefits; increas-ing significantly the area of protected and sustainably managed forests; and mobilizing a significant increase in official development assistance for sustainable for-est management. During its 2006 session, the Forum’s mandate was renewed for another nine years, to 2015. The UN Forum on Forests demonstrated Member States’ strong political commitment to sustainable for-est management and agreed to conclude and adopt a non–legally binding instrument on all types of forests at its seventh session next year.

Achieving the Millennium Development Goals depends partly on the capacity of States and inter-national organizations to track progress with reliable data. DESA’s technical cooperation with nationalstatisticalsystems in strengthening statistical capac-ity has consistently received positive feedback, point-ing to a measurable impact on national and sub-regional statistical programmes. The special strength of DESA’s technical cooperation work is that it is fully integrated with the normative work on statisti-cal standards and norms, for which the UN Statistical Commission, served by DESA, is the authoritative body. Outcomes of DESA’s capacity-building ini-tiatives in States and subregions have included the implementation of changes in statistical legislation, introduction of user committees, changes in statisti-cal offices’ functional arrangements, changes in census

management and topics covered in the census, signifi-cant progress on economic and environmental statis-tics, and improvement in offices’ relations with users and data providers.

Development at the regional level

The challenges of development, and the means of addressing them, vary from region to region and require focused attention from regional actors. The work of the five UN regional commissions is therefore as diverse as are their regional circumstances and needs.

For the Economic Commission for Africa (ECA), an important event of 2006 was the fifth African Development Forum in November, which focused on the role of youth in regional development. Among other outcomes, the Forum launched the African Union Youth Charter and elicited input from mem-ber States on a Common Action Plan for Youth and Development in Africa. In February 2006, ECA organized the first meeting of the Africa Symposium on Statistical Development, which, among other actions, encouraged all African countries to under-take a census in the 2010 Round of Population and Housing Censuses. Organized in close cooperation with the UN Statistics Division, the Symposium also created a group called “Friends of ECA”, charged with engaging the Commission on statistical challenges and needs in the region. In its ongoing support for the New Partnership for Africa’s Development (NEPAD), ECA provided substantive technical support for an Africa Fertilizer Summit in June and also coordinated the launch of the first comprehensive African Water



Development Report — both of which respond to specific development priorities of NEPAD. (For more information on NEPAD and the range of UN efforts to support it, see “Development of Africa”.)

A three-way partnership involving the Economic and Social Commission for Asia and the Pacific (ESCAP), the Asian Development Bank and UNDP grew into a significant regional collaboration in 2006 in support of the MDGs. With each partner providing technical and financial assistance, the effort focused on areas of common concern among countries of the region, such as harmonizing legal and regulatory frameworks, and provided opportunities for countries to share experiences and good practices, exchange mutual technical support and reach agreement on joint action. In November 2006, a Ministerial Conference on Transport, organized by ESCAP, agreed on a declaration and regional action programme on trans-port development, held a signing ceremony for the Intergovernmental Agreement on the Trans-Asia Railway Network and issued a ministerial declaration on road safety. The Commission’s sixty-second session, in April, included for the first time a special session for Pacific island leaders, focusing on issues of critical importance to island States.

In 2006, the Economic Commission for Europe (ECE) issued the final report on a $2 million project called Energy Efficiency Investments for Climate Change Mitigation, which has led to the identifica-tion and development of some $60 million in total investments, resulting in annual reductions of some 136,000 tons of carbon dioxide. In June, ECE member countries adopted the Recommendations for the 2010 Censuses of Population and Housing — a key statisti-cal standard, describing and analysing particular cen-sus topics of regional significance, which will in turn guide the 2010 censuses in all European countries. The Commission also adopted a series of recommen-dations in 2006 for reducing the number of dead and injured by roadway accidents, in response to the need to confront road safety problems around the world. Based on best national practices made available by all

stakeholders, these recommendations will be dissemi-nated worldwide.

The thirty-first biennial session of the Economic Commission for Latin America and the Caribbean (ECLAC) took place in March 2006 in Montevideo, where the central topic was social protection sys-tems, including health, social welfare and anti- poverty programmes across the region. The session’s main resolution called upon Governments to extend these systems to all members of society. A separate resolu-tion, designed as the region’s contribution to the UN High-level Dialogue on International Migration and Development, also called on Governments to focus on the benefits of migration to development and on the vulnerability of migrants and their families. An ECLAC report entitled “International migration, human rights and development” was also presented at the High-level Dialogue. The number and range of short-term advi-sory services rendered by the Commission increased significantly in 2006, in response to the needs of its members.

For more than six years, the Economic and Social Commission for Western Asia (ESCWA) has led the development of an Integrated Transport System in the Arab Mashreq, comprising road, rail and mari-time transport agreements. The process achieved an important milestone in September 2006, when a Memorandum of Understanding on Maritime Transport Cooperation entered into force, followed by an expert group meeting to help member States meet the treaty’s obligations. This was the third and last of the agreements that constitute the Integrated Transport System. Separately, two ESCWA work-shops in 2006 led to a draft policy framework on shared aquifers, as well as other efforts towards improved water management in the region. In April, ESCWA convened a national conference in Bahrain, bringing together Government officials, experts from public and private sectors, and key stakeholders. The goal was to reach consensus on needs and determine country-specific mechanisms required for integrat-ing social policy within the national development

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framework. The success of this conference led to the establishment of a Social Policy Unit at the Ministry of Social Development in Bahrain which is now fully operational. In November 2006, ESCWA organized an equally successful conference in Egypt. Jordan, Oman, Saudi Arabia and the Palestinian Authority have requested similar conferences.

The environmental roots of sustainable development

Stewardship over the environment, and its incorpo-ration into sustainable development, call for the abil-ity to monitor, analyse and manage environmental trends consistently and reliably over time. That in turn demands capacity in data processing, modelling and analysis. In 2006, with technical assistance from UNEP, these elements were strengthened in several countries of the Asia-Pacific region, leading to the pro-duction of national State of the Environment reports for Bangladesh, Bhutan, the Democratic People’s Republic of Korea, India, the Lao People’s Democratic Republic, Maldives, Nepal, Sri Lanka and Viet Nam. At the regional level, in May 2006 UNEP launched its second Africa Environment Outlook report, which noted that the region was realizing only a fraction of its nature-based economic potential which, if used effec-tively, fairly and sustainably, could provide a way out of poverty for most of Africa’s 800 million people.

In April 2006, a significant advance in protecting theozonelayer was achieved with the announcement that more than 5,000 farms, farmers’ associations, major supermarket chains and other organizations from 30 countries had joined forces with UNEP in a new International Partnership to Phase Out Methyl Bromide. Methyl bromide is used to kill pests in the soil before planting crops such as tomatoes, strawberries, melons and flowers. In 1992 it was officially controlled as an ozone-depleting substance and is scheduled for phase-out under the Montreal Protocol on Substances that Deplete the Ozone Layer. UNEP is working with scientists and the industry to make information on cost-effective or proven alternatives to methyl bromide

widely available. Separately, UNEP and the World Meteorological Organization reported in August that expected full recovery of the ozone layer is now likely to be delayed by between 5 and 15 years.

Another new initiative that will help to bring the results of UNEP assessments to a global audience was launched in September, when the popular Internet site Google Earth introduced more than 100 satellite images from UNEP’s best-selling environmental atlases One Planet, Many People and Africa’s Lakes on its “ featured content” section. The images allow users to “fly” around the planet and zoom in on environmental hot spots to see how human activities have brought about environ-mental change. The content will be updated regularly as new information becomes available.

When the humanitarian community mobilizes in response to disaster or conflict, rapid deployment of environmental expertise is urgently needed as well, since the secondary effects of disasters and conflicts often include damage to industrial facilities and environmen-tal infrastructure that result in contamination of air, water and soil or create additional risks. In 2006, rapid environmental assessments by UNEP have helped to identify these immediate threats and spotlight environ-mental concerns that require attention in early recovery and subsequent phases. For example, in July, when the fuel depot of a power plant was struck during hostilities in Lebanon, an estimated 10,000 to 15,000 tons of fuel oil spilled into the Mediterranean and contaminated the Lebanese and Syrian coastlines. The Joint Environment Unit, a partnership of UNEP and the UN Office for the Coordination of Humanitarian Affairs, worked with the Lebanese Ministry of Environment, the European Union, the World Conservation Union and the UN country team to coordinate the massive clean-up effort.

Climate change was a major theme in UNEP’s sport and environment programme during 2006. Programme representatives collaborated closely with the organizing committees of both the XX Olympic Winter Games in Turin, Italy, and the FIFA World Soccer Cup, which was held in Germany in the summer, to incorporate environ-mental sustainability into their event planning. Both



events proved to be the most environmentally friendly of their kind ever, achieving significant reductions in car-bon emissions, waste and freshwater use.

UNEP is also forging stronger linkswithwork-ers and their trade unions. In January 2006, the Programme hosted the first Trade Unions Assembly on Labour and the Environment. More than 150 rep-resentatives of labour organizations, trade unions, Governments, the private sector and UN bodies dis-cussed the interlocking interests of workers’ rights and environmental protection and ways to establish partnerships for joint environmental policy design and implementation.

Developing sustainable human settlements

Every two years since 2002, UN-Habitat has arranged an international gathering called the World Urban Forum, where major political figures and decision mak-ers, civil society leaders, slum-dwellers and people from every walk of life debate ways of making the world’s rap-idly growing cities better and safer places for all that are sustainable and environmentally friendly. In 2006, UN-Habitat’s thirtieth anniversary year, the Forum drew some 10,000 participants from over 100 countries, com-mitting to keep urban sustainability high on the national and local agenda in countries around the world. Among other distinctive features of this Forum was a signifi-cantly greater opportunity for national Governments and municipalities to interact with grass-roots wom-en’s organizations, youth groups, the representatives of slum-dwellers and other non-governmental organiza-

tions, reflecting UN-Habitat’s priority for more inclu-sive international meetings.

UN-Habitat’s State of the World’s Cities Report, launched in 2006, shows how inequality in access to services, housing, land, education, health care and employment opportunities within cities has socio-economic, environmental and political repercussions. These include rising violence, urban unrest, environ-mental degradation and underemployment, all of which threaten to diminish any gains in income and poverty reduction. The report indicates that “running the poor out of town” — through evictions or discrim-inatory practices — is not the answer. Rather, helping the poor to become more integrated into the fabric of urban society is the only long-lasting and sustainable solution to the growing urbanization of poverty.

In a fitting climax to 2006, the inaugural Asia-Pacific Ministerial Conference on Housing and Urban Development, co-sponsored by UN-Habitat and the Government of India in December, unani-mously adopted a new mechanism setting up a perma-nent secretariat in the world’s most populous region. More than 35 ministers agreed to an enhanced frame-work for better cities, resting on four pillars: pro-poor urban governance and planning, slum upgrading, the delivery of the MDGs on water and sanitation, and financing sustainable urbanization. A similar gather-ing for Africa took place in April, when ministers from more than 30 African countries met at UN-Habitat headquarters in Nairobi for a special session of the African Ministerial Conference on Housing and Urban Development to discuss strategies for achiev-ing the Millennium Development Goals in Africa’s urban slums. Among the session’s results was a pledge to make every effort to reduce urban poverty and ensure that cities in Africa are sustainably managed.

Promoting development through trade

To help developing countries cope with the mixed impact of global economic independence, UNCTAD’s research and publications in 2006 advanced discussion on several current issues. Its Least Developed Countries


Report 2006 pointed out the need for national and international policies that focus on building produc-tive capacities in the world’s least developed countries in order to reduce poverty. UNCTAD’s World Investment Report 2006 — frequently regarded as the world’s most authoritative source on foreign direct investment — proposed ways in which developing countries can take advantage of emerging patterns in international investment flows. The organization’s flagship publica-tion Trade and Development Report 2006 examined the concept of “policy space” for developing countries and their need for flexibility in policymaking for develop-ment. This report generated lively international discus-sion on the crucial causes of global trade imbalances and, in response, many delegations endorsed the call for an internationally co ordinated macroeconomic approach to address them.

To strengthen awareness of international trade and trade liberalization in developing countries, UNCTAD held close to 100 seminars, workshops and train-ing programmes in 2006, on topics ranging from the interface between the World Trade Organization and other trade negotiations to non-tariff measures affect-ing trade, securing market access under various envi-ronmental requirements in export markets, and the opportunities for commodity production and trade for African countries. A 2006 expert meeting on the energy sector focused on three themes: adjusting to a changing energy economy, biofuels, and oil and gas in Africa and the least developed countries.

In an innovative public-private partnership, UNCTAD and Royal Philips Electronics joined forces to explore possibilities and prerequisites for establishing an energy-saving light bulb industry in the Southern African Development Community region. A July conference in Pretoria, sponsored by UNCTAD, Philips and UNDP, considered ways of starting investment, production and trade of energy-saving lamps in the region.

To help nations attract and benefit from foreign direct investment for their development purposes, UNCTAD’s InvestmentPolicyReviews undertake evaluations of the policy, regulatory, institutional and operational frame-

work for investment in individual countries. In 2006, Reviews for Colombia and Rwanda were published (bring-ing the total of completed Reviews to 22), and those for Morocco and Zambia were completed. Reviews for Brazil and Nigeria remained under way at year’s end, and those for Mauritania, Viet Nam and the Dominican Republic were in preparation. The Reviews are often followed up by technical assistance on such matters as legal frame-works, business regulations, institutional reforms and strategies for promoting foreign direct investment inflows. For instance, Algeria, Egypt, Botswana, Mauritius and Peru received such assistance in 2006 to facilitate reforms that have improved the investment climate and generated increased inflows of foreign investment, diversified such flows into new sectors and strengthened linkages between domestic and foreign firms.

UNCTAD’s Automated System for CustomsData (ASYCUDA) has been helping Governments reform the customs clearance process. Among other benefits, ASYCUDA helped authorities computerize and simplify customs procedures, thus speeding up the clearance process and minimizing administrative costs to the business community and the economy. More than 90 countries currently benefit from the system in its different versions. In 2006, new ASYCUDA projects were launched in the Comoros, Eritrea, Seychelles and Swaziland. The system went live in the Central African Republic, Guinea and Nigeria.

Among many efforts to support development in Africa, and particularly NEPAD, UNCTAD provides

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ongoing analysis of Africa’s development challenges together with policy recommendations, advisory serv-ices, technical assistance and advocacy. In the light of the commitment by the international community to double aid to Africa, the 2006 edition of UNCTAD’s Economic Development in Africa series of reports exam-ined how the continent could use the increased aid for sustainable growth and development.

The International Trade Centre in 2006 organized a series of buyer-sellermeetingsand matchmaking events to provide opportunities for small and medium-sized enterprises to promote their products and serv-ices within the context of existing regional trade agree-ments. This in turn helps to create regional value chains for global competitiveness. During 14 such gatherings throughout the year, 750 enterprises and 416 business associations across the globe explored business part-nerships, generating new business worth an estimated $32.5 million in aid relief items, cotton, food products, leather, pharmaceuticals and services.

ITC also provides training for small and medium-sized enterprises in procurement procedures, trade information and quality management to help them compete in particular regional and international mar-kets. For example, recognizing the growing demand for cotton by the Asian textile industry, ITC cooperated with the Governments of China and India to assist 48 selected African cotton suppliers in learning how to penetrate Asian markets. At these meetings, African participants learned first-hand the quality require-ments of the Asian textile industry, and Chinese and Indian textile manufacturers gained a clearer picture of the potential for importing African cotton. Similarly, selected enterprises in the fisheries sector in Indonesia received assistance to understand and meet the food safety requirements of the European Union market, while in Malaysia the training needs of enterprises in the fisheries sector were assessed. In Bangladesh, inte-grated production and marketing assistance was pro-vided to 10 selected tanneries.

During 2006, ethical fashion emerged as a new niche market, where consumers seek products that

incorporate social values such as fair conditions of work, sharing of profits and boosting of family incomes. Through cooperation between ITC, the United Nations Industrial Development Organization (UNIDO) and 12 small producers of leather goods, a luxury collection of fashion accessories was created in Ethiopia under the brand name of Taytu. UNIDO assisted in creating the initial collection and ITC sup-ported Taytu in promoting and marketing the collec-tion, building the image of the brand, contacting the main customers of the segment and displaying the collection in the most exclusive exhibitions for fashion accessories in Paris in autumn 2006.

Development in the most urgent settings

The Programme of Action for the Least Developed Countries, drawn up in Brussels and endorsed by the General Assembly in 2001, had its midterm review in September 2006 at the sixty-first session of the General Assembly. The review provided an opportunity for the international community to take stock of the constraints that jeopardize full implementation of the Programme by its intended completion date of 2010 — including a shortage of official development assistance and resources for development. The process also allowed least devel-oped countries (LDCs) and other global stakeholders to consider how such factors as technology transfer and good governance could contribute to more suc-cessful implementation. In preparation for the review, OHRLLS organized two regional meetings, in Africa and in Asia, where LDCs gathered to formulate regional views and positions for a full ministerial meeting in June. OHRLLS also organized and supported that meeting, where the positions of all 50 LDCs were prepared and assembled.

The Office also made arrangements and provided support for inter-agency meetings and special events within the UN system in advance of the review, as well as for a series of informal hearings with non- governmental organizations, civil society and the pri-vate sector, which were convened by the President of


the General Assembly. Finally, the Office supported a preparatory meeting for all Member States just before the high-level meeting in September. It also produced four major publications as background for the session, two of which were prepared jointly with the World Bank and UNDP, respectively.

To help small island developing States (SIDS) recover more quickly from disaster or emergen-cies, OHRLLS initiated an event in October called “Resources for Emergencies: the Role of CERF in ImplementingtheSpiritoftheMauritiusStrategy”. CERF, the Central Emergency Response Fund, is a significant new resource in times of natural disaster, to which small island States are particularly vulnerable, yet only three had made use of the fund since it was launched in early March 2006. (More information on CERF is available in the chapter “Humanitarian assist-ance”.) The Mauritius Strategy, adopted in 2005, reaf-firmed and strengthened international commitment to implementing a Programme of Action for SIDS that had been launched in 1994 in Barbados. The Strategy took specific note of the vulnerabilities of SIDS to natural disaster and of the need for the international commu-nity to support more effective prevention and recovery. By year’s end, a total of $261.2 million in commitments for these purposes had been made for 331 projects in 35 countries. This event is expected to further enhance resource flows to SIDS in future emergencies.

For the 31 landlocked developing countries (LLDCs) and their transit neighbours, a Programme of Action agreed in Almaty, Kazakhstan, in 2003 has set in motion an ambitious effort to establish effi-cient transit transport systems, aimed at helping these countries integrate fully into the international trading system. To advance the Almaty agenda and to further strengthen the bargaining positions of LLDCs in multilateral trade and development forums, a meet-ing of Heads of State and Government took place in September, assisted by OHRLLS. The meeting resulted in a political declaration to accelerate the implementation of the Almaty Programme.

Harnessing distant resources for development

For more than three decades, the United Nations Programme on Space Applications has derived its agenda from a series of UN Conferences on the Exploration and Peaceful Uses of Outer Space (UNISPACE). The most recent of these, UNISPACE III in 1999, set in motion a long-term Plan of Action for strengthening the capability of Member States, particularly developing countries, to apply space sci-ence for economic, social and cultural development. Among the priorities established by UNISPACE III was the harnessing of space technologies and applica-tions in disaster management, by providing accurate and timely information and communication support in case of disasters. As a result of OOSA’s active engage-ment with Member States and many parts of the UN system and space-related international organizations, this priority achieved a major milestone in December, when the General Assembly established the United Nations Platform for Space-based Information for Disaster Management and Emergency Response(SPIDER) as a programme of OOSA.

SPIDER is an open network of providers of dis-aster management support that aims to ensure that all countries have access to, and develop the capacity to use, all types of space-based information to support the full disaster management cycle. The Platform will

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contribute to achieving universal access to space-based technology solutions, spreading the benefits across the globe and supporting the development of standards for delivery of space-based data, technology solutions and services. One of the key benefits expected from the implementation of SPIDER is the bridging of gaps between the space service providers and the disaster management community.

As a result of joint work by OOSA, Member States and relevant international organizations, the International Committee on Global Navigation Satellite Systems (ICG) held its first meeting in November 2006 in Vienna. The ICG is a forum where senior-level representatives of the operators and devel-opers of space-based navigation and positioning sys-tems can address ways of promoting universal access to these systems, their compatibility and interoperabil-ity, and their integration into national infrastructures, particularly in developing countries. Participants in ICG include representatives of the United States of America and the Russian Federation, operators of GPS and Glonass (the two existing global navigation and positioning systems), the European Space Agency and the European Commission, developers of Galileo (a third global system), and China, India, Japan and Nigeria, developers of regional navigation and posi-tioning systems. ICG also includes non-governmental specialized societies as well as interested specialized agencies of the United Nations system.


Among DESA’s key responsibilities is the prepara-tion of analysis and reports that are not only authori-tative and technically sound but also accessible to a broad audience of policymakers and the public at large. Striking this balance can pose subtle difficulties, as for example in the preparation of the World Economic and Social Survey, whose treatment of complex and technical issues must be expressed in understandable language and graphics without sacrificing precision or depth. Consequently, increased attention has been paid

in recent years to the accessibility and overall presenta-tion of the report.

In DESA’s work on the Convention on the Rights of Persons with Disabilities in 2006, the lack of acces-sibility of the UN premises as well as of its conference services and websites made it challenging and frustrat-ing for the very large number of delegates with dis-abilities to participate in the negotiations. After three years of hosting such meetings, the United Nations has become more aware of the need to modify the way it delivers services in order to allow the full and effective participation of delegates with disabilities in compli-ance with the spirit and letter of the Convention.

A third area of concern for DESA in the past year has been shortcomings in the availability and quality of official statistical data for tracking progress on the Millennium Development Goals and other interna-tionally agreed development priorities. Despite some progress in strengthening national statistical capaci-ties thanks to DESA’s technical cooperation work, one source of the problem continues to be the limited abil-ity of countries to apply internationally agreed defini-tions — a shortcoming to which the Department is devoting particular attention. Also, data often come from different sources without validation from the national statistical authority, and there is frequently a general lack of coordination within national statisti-cal systems and no clearly defined authority to oversee and verify data originating from different providers. Existing data collection programmes in many develop-ing countries are not sustainable, and some national statistical offices are too dependent on data from sur-veys driven by donors, with little national ownership. Some countries also lack a focal point responsible for centralizing requests from international agencies and reporting to the international statistical system.

Multilateral and bilateral partners continue to need improvement in their coordination mechanisms and more opportunities for full cooperation in jointly developed programmes. Initiatives by international agencies and donors should be built around the exist-ing national statistical strategies and master plans and


remain in accordance with the plans. Also, in order for capacity-building activities to be sustainable, most national statistical initiatives should be covered by national budgets and supported by a strong politi-cal commitment. Coordination within countries also needs to be improved between agencies producing sta-tistics and the national statistical office, with the lat-ter being established as a professionally independent institution and with a clear mandate for the collection, processing and dissemination of official statistics. This in turn would facilitate coordination of international partners who normally deal with different counter-parts, from national statistical offices to various line ministries. Finally, the donor community needs to acknowledge that although statistics are increasingly recognized as an indispensable tool for development, resources for them are still relatively poor, compared with funds for other development initiatives.

Several regional commissions undertook pro-gramme and administrative reforms in 2006 and other-wise sought to make better use of their resources. To extend the benefits of ECA’s work to more stakehold-ers in Africa, beyond the community of experts and officials who are regular participants in its activities, the Commission’s Executive Secretary took various steps in 2006 to streamline its programme, strengthen its subregional offices and improve its management and administrative processes. An enhanced quality-assurance process and human-resources management are part of the administrative changes under way. In Asia and the Pacific, ESCAP took several steps to improve system-wide coherence in the region, including an overall evaluation of the Commission that began in 2006. The evaluation identified ESCAP’s comparative advantages, its strategic role in the region and the pri-ority needs of its member States. To promote system-wide coherence at the regional level, the Commission organized two regional coordination meetings involv-ing 30 entities.

In 2005, ECE States adopted a reform plan for the Commission, all the main measures of which were implemented in 2006, including a streamlined

work programme, a new governance structure and strengthened programme planning and evaluation. The programme streamlining led to a redeployment of some 15 per cent of the ECE staff, a significant challenge that was completed with a clear, transpar-ent internal placement process. In a year that saw 52 new accessions to ECE transport agreements and 28 new ratifications of ECE environmental conventions, the challenge is to ensure the effective implementa-tion of these legal instruments in countries where legal and institutional frameworks are sometimes weak. Technical cooperation and capacity-building therefore proved important during the year and remain a prior-ity. Also in 2006, ECE and ESCAP collaborated on a reform of the Special Programme for the Economies of Central Asia, a joint programme of advice and tech-nical assistance in support of subregional cooperation. The reform is bringing first results through stronger interest among member countries, improved coordina-tion among partner institutions and better funding.

For Latin America, where economic growth depends heavily on lowering trade barriers, suspension of the Doha Round of trade negotiations (discussed further under UNCTAD, below) posed several dif-ficulties for ECLAC and its members. Among other things, the suspension gave greater impetus to negoti-ating bilateral agreements with the United States, the European Union, China and other Asian nations. One result is that ECLAC has had to stretch its resources to meet the growing demand for diverse forms of techni-cal assistance to adapt to this new reality. In its efforts to bolster member countries’ capacity to foster pro-duction and innovation in their economies, ECLAC is required to keep up with an accelerating rate of tech-nological, social and institutional change. The magni-tude and speed of change can lead to a fragmentation of knowledge and experience, impeding the incorpora-tion of this knowledge into effective policy.

The most prominent challenge that ESCWA faced in 2006 was conflict and political instability resulting from the July-August war in Lebanon. International staff were evacuated during the war, and their work



continued in a temporary office in Vienna and in vari-ous locations including Jordan and Cairo. The war also had direct consequences for several ESCWA projects, such as the E-Caravan, a mobile computer school serv-ing rural communities in south Lebanon, which was struck down in an Israeli missile attack. A pilot project on employment creation in south Lebanon, a collabora-tion with the International Labour Organization, was badly set back when crops that had been supported by the programme were destroyed in the conflict. Even after the war, security concerns remain a challenge; ECSWA’s conferences and workshops had to be moved outside Lebanon, causing additional strain in organ-izing, planning and executing these events. ESCWA’s Unit for Emerging and Conflict Related Issues (ECRI), established in January 2006 to develop a conceptual and operational framework for engaging in development under crisis conditions, documented the effects of the July-August 2006 war on Lebanon. ECRI organized a series of consultations with Lebanese stakeholders resulting in a number of rehabilitation policy recom-mendations and reconstruction project proposals for the Lebanese Government.

In environmental affairs, a key challenge for UNEP is keeping up with the increasing complexity of envi-ronmental degradation, which requires an enhanced capacity for scientific assessment and monitoring. Following consultations with Governments and other stakeholders, UNEP proposed in 2006 to develop a system of networks that draws on existing bodies, including academic institutions and centres of excel-

lence, as well as specialized agencies and scientific bod-ies of relevant multilateral environmental agreements. Based on this approach, a more systematic and com-prehensive system for keeping the environment under review has been outlined in “Environment Watch Strategy: Vision 2020”, scheduled for presentation to the UNEP Governing Council in early 2007.

Another challenge for UNEP in 2006 was the imple-mentation of the Bali Strategic Plan for Technology Support and Capacity-building, which called on the Programme to play a more prominent role in support-ing country-level capacity-building and training and national-level coordination of the environmental com-ponent of sustainable development. The plan, adopted in 2005, called on UNEP to deliver its support in a more coordinated way (internally and within the UN system) and on a much bigger scale, focusing on areas where it has comparative advantages, communicat-ing its key messages more effectively, advertising its services and establishing partnerships that facilitate delivery on the ground. In response, a series of short-, medium- and long-term recommendations emerg-ing from an external and internal consultative process called on UNEP to streamline its operations to better implement the Strategic Plan.

In September 2006, UNEP established a South-South coordination unit to enhance delivery of tech-nology support and capacity-building to recipient countries. The Programme also strengthened its part-nership with UNDP in implementing a host of joint country-level capacity-building activities in 2006, which could pave the way for establishing similar col-laborative arrangements with other UN bodies in the implementation of the Bali Strategic Plan.

As ministries of planning and finance tend to be the Government focal points for interacting with UN country teams, UNEP will increasingly need to fos-ter partnerships with these ministries in addition to its partnerships with environment ministries, and will need to understand better the interrelationships among Government ministries country by country. In this regard, UNEP will need to develop tangible country-

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specific evidence on the economic advantages of inte-grating environmental considerations into national development in order to convince sometimes sceptical policymakers and planners that environmental invest-ments are worthwhile.

The principal challenge for UN-Habitat in recent years has been that, despite the hardships imposed by chaotic urbanization in most developing countries, issues of sustainable urbanization are still not fully appreciated and prioritized in the national develop-ment policies or in the United Nations Development Assistance Framework of most countries. In response, UN-Habitat has increased its presence in selected countries by recruiting more Habitat Programme Managers in collaboration with UNDP.

Another serious challenge is that of inadequate financial and human resources for the agency to imple-ment its mandate. Although the Programme engages with donors in identifying human-settlements priori-ties in its biennial programme budgets, securing the requisite funding for the agreed priorities remains a problem. UN-Habitat has limited financial resources to support its mandate and relies on extrabudgetary and mostly earmarked resources that are unpredictable and unsustainable. Although earmarked contributions are most welcome, their increase over non-earmarked contributions affects the Programme’s ability to plan

and deliver its programme of work in a strategic and predictable manner.

Among the lessons of 2006 for UN-Habitat was that the project approach supported by grants cannot arrest slum formation, much less contribute to slum reduction. Augmenting national budgetary allocations with private sector domestic capital, and using inter-national finance for seed capital, have been shown to make a significant impact in the provision of water and sanitation. The Water for African Cities and Water for Asian Cities programmes, joint efforts with the African Development Bank and the Asian Development Bank, are effectively supporting Governments in providing and managing pro-poor, gender- and age-sensitive water and sanitation programmes.

In 2006, the Government of Kenya and UN-Habitat, the private sector, civil society and represen-tatives of various community-based groups worked on a strategy aimed at increasing the proportion of afford-able and decent housing for low-income urban house-holds. One of the notable lessons that emerged from the experience is that there are considerable resources at the local level that could be utilized for the scaling up of slum-upgrading and other urban development activities, provided suitable incentives make it worth-while for the private sector to take up the challenge.

For UNCTAD, the suspension of the Doha Round of trade negotiations at the World Trade Organization at the end of July 2006 presented a major setback. UNCTAD has been playing a major role in the international efforts to make the multilateral trad-ing system more open, fair and development-oriented, which is one of the internationally agreed goals of the Millennium Declaration. With the suspension of the Doha Round, UNCTAD needed to expand its effort in helping developing countries and countries with economies in transition to find other means to gain from international trade, such as through regional or South-South trade.

Bringing the fruits of its research and intergovern-mental and expert debates to operational reality posed

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another challenge for UNCTAD. For example, the organization has long advocated greater coherence of the international monetary, financial and trading sys-tems as a means of allowing developing countries to gain fully from economic globalization. The reason is that the various systems affect one another, and can profoundly affect outcomes, in complex ways. Tariff cuts to increase imports, for instance, may be rendered ineffective if the exchange rate moves in the opposite direction, or if import demand is suppressed by a rise in interest rates. Within each separate realm, there is some mechanism for international policy discussions, but these discussions tend to take place in isolation from one another. Although UNCTAD made strides in stimulating debate on this issue among various stakeholders in 2006, including at the Bretton Woods institutions, there has been little tangible progress in making greater coherence a reality.

At the national level, the principal challenge has been to ensure that UNCTAD’s policy analysis and recommendations reach the right audience and its technical assistance has a sustainable impact. With no established field presence, UNCTAD sometimes found it difficult to maintain a close dialogue with target constituencies for its policy recommendations, or to follow up its technical assistance sufficiently with timely interventions to assist in the implementa-tion of policies introduced as a result of its assistance. Consequently, to maximize the impact of UNCTAD’s knowledge-based products and services, it is desirable to have more systematic collaboration with institu-tions that have an extensive field presence. The “One UN” reform process may facilitate this effort.

The key obstacles facing ITC in 2006 included a lack of visibility at the field level, where the Centre is not as well known as other non-resident agencies within the UN family. ITC has also found it diffi-cult to measure fully the impact of its services on the small and medium-sized enterprises that are its main intended beneficiaries. In executing projects and pro-grammes in individual countries, the Centre also fre-quently faces difficulties due to political constraints

or to the limited absorptive capacity of its partners on the ground. ITC has found some weaknesses in the in-house coordination of certain programmes and has been constrained by unpredictable and late arrival of some donor funds.

Based on an external evaluation of ITC in 2004/05, the Centre has taken two strategic decisions that will govern its work in the coming years. The first is that, in an increasingly complex integrated economy, trade-related technical assistance needs are not only increas-ingly far-reaching but also highly varied. ITC there-fore intends to situate itself appropriately in this larger context and focus on its specific niches and competi-tive advantages. Assistance will therefore be provided in collaboration with other trade-related technical assistance providers in a manner that ensures coher-ence of all interventions and maximization of syner-gies. The second strategic decision is that ITC’s clients are, by definition, small entities and require projects in line with their absorption capacity. This affects the way in which the Centre uses its regular budget resources, due to the significant management inputs required by staff in serving its clients. The Centre will need to develop new ways of delivering technical assist-ance by working more closely and differently with its partners in the field. With the new focus on country programmes, there will be a need to develop decentral-ized systems for delivering technical assistance and a greater reliance on the ability of ITC’s field network to implement projects.

Participation in international meetings by repre-sentatives of poor States remains a critical challenge for OHRLLS, given that the regular budget does not make provisions for such expenditures, and voluntary contributions must be sought from donors, UNDP or other interested organizations. Such contributions are often not sufficient to cover the full need and sometimes leave little time for recipients to make arrangements for travel. Another area of concern for the Office has been the need for more extensive inter-agency consultation, both within the UN system and with Member States and outside organizations. The implementation of the


Brussels Programme of Action requires the involve-ment of several UN system organizations and funds. Yet until the Midterm Review in September, these agen-cies had not met as a group to discuss and strategize the implementation of the Programme. When the meeting did occur, many representatives were not fully aware of their agencies’ mandates and responsibilities concerning the Programme. Finally, during negotiations between the LDCs and the rest of the international community, many of the key donor countries were not able to sub-scribe fully to the proposals put forward by the LDCs, known as the Cotonou Strategy, at their ministerial meeting in Benin. In view of this, the General Assembly accepted the Strategy as an LDC initiative but did not adopt it for implementation by the international com-munity as a whole.

The main challenges faced by OOSA in 2006, as in previous years, were its small staff complement (20) to prepare for and service six and a half weeks of effective intergovernmental and inter-agency meeting time, and its limited fellowship budget for its capacity- building workshops and pilot projects. To overcome these challenges, the Office has increased its coordina-tion with specialized agencies of the UN system and its cooperation with Governments of Member States. In 2006, the Office increased its specialist pool in order to formulate and carry out a new fund-raising strategy. It will take into account the growing demand from devel-oping countries for OOSA’s support in space-related capacity-building, as well as the increasing privatiza-tion of outer space activities, which poses both oppor-tunities and challenges for seeking additional funds.

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Background

Promoting development and security in Africa has risen steadily in importance on the world’s agenda in recent years, both within and beyond the United Nations system. Currently, more than 60 per cent of discussions in the Security Council concern Africa, and the continent has been a priority topic at each of the most recent G8 summits. Africa lies at the cen-tre of international efforts towards the attainment of the Millennium Development Goals, and the 2005 World Summit Outcome document specifically high-lighted capacity-building for the African Union (AU). Increasingly, Africa is viewed as a major theatre in the fight against international terrorism and transnational organized crime, and in the struggle against pandem-ics such as avian flu and HIV/AIDS. An international consensus has clearly been established that the United Nations system must pay special attention to the needs of Africa, and the consequences of that consensus are evident throughout this report.

The United Nations Office of the Special Adviser on Africa (OSAA), created in May 2003, was set up to strengthen UN support for Africa in its development efforts. In particular, OSAA is mandated to enhance international support for Africa’s development and security through its advocacy and analytical work, and

to assist the Secretary-General in improving coherence and coordination of the UN system support to Africa. OSAA also facilitates intergovernmental deliberations on Africa at the global level, and is the focal point for the New Partnership for Africa’s Development (NEPAD) at the United Nations. NEPAD is an African-owned, African-driven blueprint for the economic and social recovery of the continent, endorsed by the interna-tional community and driving much of the Africa-related work across the UN system. OSAA monitors the full range of UN efforts that contribute to NEPAD and helps to mobilize international support for the Partnership’s agenda, in close cooperation with the Economic Commission for Africa and the Secretariat’s Department of Public Information.

Highlights

The Secretary-General’sAdvisoryPanelonInterna-tional Support for NEPAD, comprising several emi-nent international personalities, was set up to canvass support for the New Partnership from around the world. The panel held two meetings in 2006 and pub-lished its second report, entitled “From commitments to results: moving forward NEPAD implementation”. Among other recommendations, the report urged sup-port for various African efforts to build institutional


capacity around NEPAD, and it drew attention to essential areas of UN support for the New Partnership that needed to be reinforced.

In June 2006, a broad-based group of experts met in Cairo to analyse thelinkbetweennaturalresourcesand conflicts in Africa. The group’s deliberations and final report underlined the need for more information, policy lessons and international support in managing and using natural resource wealth in ways that promote sustainable development. Among other things, the group concluded that countries emerging from recent conflict need particular support in creating policies and mechanisms to manage resources and to harness them for post- conflict reconstruction and development.

In October, OSAA organized an expert panel to discuss institutional challenges in implementing the NEPAD agenda, to coincide with the General Assembly’s joint debate on African issues. The panel focused on building capacity and integrating effort among the various organizations and institu-tions in Africa with key roles to play in the NEPAD agenda, such as the AU Commission, the Economic Commission for Africa, regional economic communi-ties and the NEPAD secretariat.

Another expert group met in mid-November to consider theroleofyouth in promoting durable peace

in Africa. The Expert Group Meeting on Youth and Conflict concluded that, to a significant degree, the fu-ture of the continent depends on the integration of young people — especially ex-combatants — into the full political, social and economic life of their societies.

China, India, Brazil, Malaysia and the Republic of Korea have all emerged as significant new development partners of Africa. In 2006, OSAA began to pay close attention to this trend. The Special Adviser on Africa represented the Secretary-General at the Africa-China Summit in Beijing in November 2006. OSAA is mon-itoring the follow-up to this summit.


The principal factors in Africa’s development touch on virtually every strategic priority across the entire United Nations system — including not only eco-nomic development and trade, but also peace and secu-rity; the control of illicit weapons and of crime, drugs and terrorism; promotion of human rights and the rule of law; and humanitarian assistance to refugees and victims of conflict and natural disasters. Accordingly, UN activities in support of Africa appear throughout this report, and no attempt has been made to describe them all here.

Rather, the focus in this chap-ter is on the critical need for effec-tive coordination, integration and information-sharing across this expanding universe of effort. One particular area of coordina-tion — that between the United Nations and the African Union — took an important step forward in November 2006 with the sign-ing of the declaration entitled “Enhancing UN-AU Coopera-tion: Framework for the Ten-Year Capacity-Building Programme for the African Union”.U

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The question of organizational capacity — not only at the African Union, but in the secretariat of NEPAD and in various regional entities critical to Africa’s development — ranks high among the key factors that will determine progress in the coming years. Building a well-run, fully staffed, expert and sta-ble network of organizations addressing development issues is one of the objectives of UN-AU collabora-tion, but it is also a key concern for other elements of Africa’s growth.

Within OSAA, the ability to gather information, coordinate activity and furnish timely, useful informa-tion for its many partners and constituents depends

heavily on the level of human and financial resources available. Since the creation of the Office in 2003, OSAA has never had a full complement of staff. Its costs for travel to international and regional meet-ings across Africa and around the world — a prime means of monitoring activity and seeking out oppor-tunities for better coordination — have not been fully met through regular budget resources. Instead, the Office has sought extrabudgetary contributions from donor countries, a time-consuming and unpredictable approach. Keeping up with the expanding agenda of meetings, issues and activities related to Africa, both within the UN system and outside, remained the greatest challenge facing OSAA throughout 2006.

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BackgroundBy virtue of their membership in the United Nations, and by consent to various human rights treaties, Member States are obliged, in the words of Article 1 of the Charter, to cooperate in “promoting and encour-aging respect for human rights and for fundamental freedoms for all without distinction as to race, sex, lan-guage, or religion”. The United Nations has, since its earliest years, applied a range of tools, such as informa-tion, negotiation, advice and advocacy, in order to assist States in implementing these obligations and to rein-force their will to promote and protect the full range of human rights worldwide.

The expression of that will progressed significantly with the General Assembly’s endorsement of a new Plan of Action at the World Summit in 2005, and even more forcefully with a doubling of the regular budget for the Office of the High Commissioner for Human Rights (OHCHR), to be phased in over five years beginning in 2006. In the biennium 2006-2007, this translated into the addition of 91 human rights posts and an increase of nearly 28 per cent in the Office’s regular budget resources.

The mission of OHCHR is to work for the protec-tion and promotion of all human rights for all people, to help empower people to realize their rights, and to assist those responsible for upholding such rights in ensuring that they are implemented. The Office gives priority to the most pressing human rights violations, both acute and chronic, particularly those that put life in imminent peril. It focuses attention on those who are at risk and vulnerable on multiple fronts, such as minorities or women and children in areas of conflict. OHCHR pays equal attention to the realization of civil, cultural, economic, political and social rights, including the right to development. It measures the impact of its work through a series of objective indicators closely tracked by the Office and its partners.

OHCHR supports the work of the United Nations human rights bodies, such as the Human Rights Council and the mechanisms set up for monitoring compliance with international human rights treaties. It also seeks to integrate human rights more fully into all the programmes of the United Nations system. In 2006, the Office contributed to a series of guidance materials aimed at incorporating a human rights perspective into a broad range of UN policies and guidelines.


HighlightsThe new five-year Plan of Action outlines a series of priorities for OHCHR, including several that directly address the need for persuasion, engagement, collabo-ration and leadership by the United Nations in pro-moting and protecting the full range of human rights.

One of the Plan’s priorities entails deepening OHCHR’s ability to observe human rights condi-tions on the ground and to engage more vigorously with national Governments and regional bodies to address abuses. To this end, several current OHCHR country and regional offices have been strengthened with additional staff. A new country office opened in Togo in 2006, and preparations began for a new office in Bolivia. Consultations with potential host Governments and other preparations are under way for the opening of five new regional offices: in Panama City, Bishkek, Dakar, Cairo and a fifth location that was still undecided at the end of 2006.

Results of OHCHR’s expanded field deployments are already becoming visible, including in places of ongo-ing conflict. For example, in Uganda, a recently estab-

lished field presence in the north-eastern subregion of Karamoja has contributed significantly to focusing pub-lic attention on serious human rights violations by the military against local residents — including summary executions, looting of property and destruction of live-stock — under the pretext of a disarmament campaign. Persistent advocacy by OHCHR, including a visit by the High Commissioner in early 2006, and joint efforts with partners in the Ugandan Government, other UN programmes and civil society, as well as victims, have led to improvements in the Government’s military engage-ment in the region.

In Nepal, massive demonstrations in April 2006 became the focus of military action in which OHCHR concluded that all branches of the armed forces had com-mitted excessive use of force. UN monitoring teams, work-ing closely with local human rights defenders throughout the country, had walked kilometres each day to document events, help deter violence, prevent police beatings or shooting at demonstrators, and facilitate access to medical treatment for the injured, including children. UN human rights personnel repeatedly visited over a thousand per-sons detained during the protest period. When dem-onstrators converged on Kathmandu in unprecedented numbers on 21 April, OHCHR monitoring teams inter-vened with the senior police or army officers at the secu-rity blockades along the route of the demonstrations to assure them that the United Nations would be watching, and to urge restraint and respect for international law.

Three days later, under pressure from the demon-strations, the King of Nepal restored the House of Representatives. The new Government ministers, many of whom had only recently been released from deten-tion where OHCHR had been visiting them, joined civil society in acknowledging the important role that the United Nations and its human rights office had played in the restoration of democratic rights.

Elsewhere, long-standing field operations have also made progress as a result of effective engagement with host Governments. For example, in Cambodia, the Office’s advice, based on treaty standards, was instru-mental in building a consensus between the Ministry

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of Interior and non-governmental organizations on a key principle underlying a draft law on peaceful dem-onstration. The consensus, if reflected in the final draft of the legislation, would ensure that the law serves to facilitate, rather than restrict, the exercise of the right to peaceful assembly. In Angola, OHCHR’s sys-tematic assistance to the Parliament and the elected Ombudsman has helped create a new national human rights institution. The Office’s advocacy efforts on access to justice also resulted in the introduction of mediation in the Angolan legal system.

In order to strengthen and coordinate the Office’s response to human rights crises, a Rapid Response Unit was established in 2006. The unit was instrumen-tal in helping OHCHR to fulfil increasingly common assignments in connection with commissions of inquiry and other human rights fact-finding missions. The Rapid Response Unit proved particularly valuable in the second half of 2006, when it supported a number of initiatives at the request of the Secretary-General, the Human Rights Council or peacekeeping missions. These included a preliminary forensic assessment mis-sion to Liberia — a technical survey of a suspected mass grave site, which resulted in recommendations on technical issues as well as on improvements in Liberia’s transitional justice process.

In addition to working with Governments, another priority of the Plan of Action for human rights calls for

widerandcloserpartnerships with development and humanitarian agencies, international think tanks and civil society. Among other things, the Office has led inter-agency efforts within the United Nations to strengthen human rights expertise on UN country teams with spe-cialized training and additional human rights advisers in the field. It has also played a central role in the develop-ment of a new curriculum of human rights training for other parts of the UN system. OHCHR has devoted particular attention to expanding advice and training to personnel in humanitarian and peacekeeping opera-tions. One consequence has been that a number of peacekeeping missions now regularly issue reports on human rights conditions and concerns in the countries where they are deployed.

On 15 March 2006, the General Assembly adopted a resolution creating the new Human Rights Council, to replace the former Com mission on Human Rights, and making it a subsidiary body of the General Assembly. The establishment of the Council has given practical expression to the recognition of human rights in the UN Charter as an equal aspect of the Organization’s functions and responsibilities, alongside security and development. However, the period of transition poses particular challenges in ensuring that the successes of past experience — notably a respected system of spe-cial procedures such as high-level rapporteurs and rep-resentatives of the Secretary-General — are retained and strengthened. It is essential that the failings of the past not weaken the new and upgraded architecture for the protection and promotion of human rights.

Several important international agreements were reached in 2006 that advance the agenda of human rights worldwide. On 22 June, the Optional Protocol to the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment entered into force. OHCHR has provided advice to States on issues relating to ratification and accession since the adoption of the treaty in 2002. On 13 December, the General Assembly adopted the International Convention on the Rights of Persons with Disabilities and its Optional Protocol. The Convention is the culmination of five years

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of work, which began in 2001, and to which OHCHR contributed systematically with technical advice and expertise in close collaboration with the Secretariat’s Department of Economic and Social Affairs. And on 20 December, the General Assembly adopted the International Convention for the Protection of All Persons from Enforced Disappearance. The Convention, which closes the gaps remaining in the international legal framework on enforced disappearance, is the result of a three-year process supported with advice and logistics by OHCHR.


The expanded activity set in motion by the Plan of Action and the subsequent biennial strategic manage-ment plan for 2006-2007 has created a number of chal-lenges as well as opportunities for OHCHR in the past year. Managinggrowth of this magnitude poses several challenges at once: clarifying accountabilities for new functions; creating new mechanisms, processes and pro-cedures while also revising existing ones; and ensuring a common understanding of the Plan of Action and the High Commissioner’s mandate. Time spent on recruit-ment, staff rotation and changes in managerial struc-tures, while necessary and beneficial in the long term, have in the short term brought constraints to the opti-mal functioning of the Office.

Widening OHCHR’s partnerships — including partners from the United Nations, the World Bank and civil society — has made it even more important for the Office to prioritize and strategize its interventions as it devotes increased attention to influencing, supporting and building the capacity of other agencies and organi-zations. Its location in Geneva, away from the centre of policy decision-making in New York, has posed addi-tional challenges. Among other things, it has highlighted the need for major strengthening of the New York office of OHCHR, while clarifying accountabilities and coor-dination mechanisms in relation to the Geneva office.

Work in support of the UN human rights bodies was particularly challenging in 2006 — the first year

of the existence of the Human Rights Council. This institution-building phase required strong professional support from the Secretariat. The capacity of the Secretariat will need to be strengthened in the coming years to effectively serve the Council, which essentially functions as standing body. The High Commissioner’s proposal for a unified standing treaty body has not received the necessary political support from all quar-ters concerned. As a result, the intergovernmental meeting of State parties to consider options envisaged in the Plan of Action has been postponed. The Office is focusing on efforts to harmonize the working meth-ods of treaty bodies.

Two treaty bodies — the Human Rights Committee and the Committee against Torture — have revised and streamlined their working methods, based on sugges-tions formulated by OHCHR, to address their backlog in deciding on pending complaints. As a result, the back-log for both bodies was reduced in 2006. The revised working methods also allowed the two bodies to decide on a larger number of complaints at each session, result-ing in a reduction of the average time between registra-tion of a complaint and a final decision on it.

The concept of countryengagement has helped to bring the Office together as one in working towards common objectives in all of its work. This represents a fundamental change in the working culture — away from a traditional system in which parts of the Office functioned solely on distinct mandates, to instead working together across organizational structures towards common objectives and priorities. Achieving these integrated organizational objectives will require constant monitoring for the years to come.

In order to strengthen the support provided from Geneva to country engagement, a substantial increase in staffing levels began to be implemented in 2006. Draft guidelines on human rights country assessments have been developed to enhance the impact of country engagement through strengthened coordination with the work of treaty bodies and special procedures and to ensure that equal attention is paid to civil, cultural, economic, political and social rights.

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Background

In times of natural disaster or violent upheaval, the provision of humanitarian assistance — swiftly and impartially — requires worldwide public and private generosity, but also something more. The effective use of emergency aid calls for a carefully organized mobili-zation of resources, coordination of effort, maintenance of open and effective communications, and the ability to marshal and deploy a wide variety of expertise and materiel from a worldwide network of partners. In this critical realm of communication and coordination, the United Nations plays a unique and central role.

Within the UN system, critical services of relief and reconstruction are provided by a host of departments and programmes whose effectiveness depends on care-ful integration and sequencing of their respective efforts. These organizations include, among many others, the Offices of the High Commissioners for Refugees and Human Rights, the United Nations Development Pro-gramme, the United Nations Children’s Fund and the World Food Programme. Many governmental and non- governmental organizations are also heavily involved in relief efforts. The challenges of planning and integration also extend to this universe of outside partners which, though independent of the United Nations, relies partly

on the Secretariat’s services in funding and coordinating the various contributions.

This responsibility for swift response and ongoing coordination is carried out for the United Nations prima-rily through the Secretariat’s Office for the Coordination of Humanitarian Affairs (OCHA). Besides support-ing immediate relief in times of emergency, in close consultation with its national, international and non- governmental partners, the Office advocates for the rights of people in need, promotes preparedness and prevention, and facilitates sustainable solutions that con-tinue long after the immediate crisis is past.

OCHA’s mission includes six broad areas of sup-port to international humanitarian efforts. It mobilizes and manages funding through consolidated appeals and humanitarian financing mechanisms. It develops and deploys an assortment of emergency tools and serv-ices to respond to particular needs and types of crises. It formulates and promotes policies on humanitarian issues, including such topics as landmines and gender-based violence. OCHA also serves as a global advo-cate of humanitarian principles and concerns, such as the humane and neutral provision of assistance, acting on behalf of the worldwide humanitarian community. And it provides information management support to humanitarian organizations and programmes around


the world. The Office also helps to recruit, train and support Humanitarian Coordinators, who lead the United Nations’ country-level response in the most severe emergencies.

Highlights

One of the most sensitive and challenging humanitarian crises of 2006 was in Lebanon, which resulted from the military confrontation between Israel and Hizbullah. The speed of developments and changes in circum-stances, the extent of human suffering, and the political significance of the conflict all posed enormous obstacles to international relief efforts. Within days of the start of hostilities on 12 July, nearly a million refugees and internally displaced persons had fled the conflict area, with 90 per cent only returning after the announcement of cessation of hostilities. Due to the large number of affected people and their mobility, these populations were difficult to track and to reach.

The 57-day economic blockade imposed by Israel, denial of access for commercial ships and aircraft, destruction of other transport infrastructure, and fuel shortages all created significant barriers to the delivery of humanitarian supplies and deployment of personnel. Yet even amid these difficult circumstances, the response by the United Nations and its partners in the region was both timely and widely recognized as impartial.

By the end of the first week of hostilities, OCHA had deployed a three-person team to support the humani-tarian efforts of the Resident Coordinator, the leader of the UN country team in Lebanon, with a designated Humanitarian Coordinator appointed 10 days later. Over

the following weeks, the OCHA team expanded to 22. Together with a network of UN agencies and nongovern-mental organizations, the team swiftly set up coordination and logistics hubs in Tyre and Sidon, where relief agencies could confer, hold meetings, use communications equip-ment and access a full range of online resources through the Humanitarian Information Centre.

In Lebanon, the recently established cluster approach to humanitarian coordination proved especially effective. Working in groups of priority sectors, such as health, water and sanitation, and protection, representatives of partner organizations and UN agencies collaborated on identifying needs and filling gaps in service, thus avoid-ing duplication of effort. Within the first week of the conflict, OCHA coordinated inputs from an array of partner organizations towards the flash appeal for inter-national funding, with a target of $155 million. Later work on the appeal provided a rigorous prioritization of needs, particularly for food, water and shelter, which many donors found helpful. An interim humanitarian report on the progress of the flash appeal was issued seven weeks after the initial appeal, providing reassur-ance to the host Government that expenditures were being carefully tracked, and indicating to donors that an overall monitoring system was in place.

Earlier in 2006, armed conflict erupted between the police and the armed forces of the world’s second-youngest State, Timor-Leste. Besides widespread casualties, the violence resulted in the total or partial destruction of more than 3,000 homes between April and May and the displacement of over 150,000 people, equivalent to 15 per cent of the country’s population. The situation prompted an urgent need for emergency response coordination, joint planning and fund- raising, advocacy and information management. It also led to the establishment of a new UN peacekeeping mis-sion for Timor-Leste — the fifth such mission since 1999 — which required careful coordination between humanitarian and peacekeeping activities.

OCHA immediately deployed resources to the scene by drawing from the surge capacity of its Bangkok regional office and the Regional Disaster Adviser for

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the Pacific. In late May, OCHA assigned four inter-national staff to Timor-Leste, and by June, the Office had organized the launch of a flash appeal for funding. It held regular donor briefings, organized coordination and planning meetings and workshops, and facilitated a high-level retreat of Government ministers, UN agencies and non-governmental organizations to plan for durable solutions to internal displacement.

The crisis in Timor-Leste also served as one of the first test cases for a new vehicle for timely humanita rian assistance called the Central Emergency ResponseFund (CERF), which had been launched just one month earlier. Within 10 days of the onset of the crisis, a Rapid Response CERF grant allowed for start-up of emergency operations in Timor-Leste. The new Fund builds on what had formerly been a $50 million emer-gency loan pool, by adding a much larger ($450 million) grant component. In the past, contributions towards emergency appeals used to take weeks and sometimes months to arrive. But in a typical appeal in 2006, 37 per cent of the required funding was on hand within the first 30 days, more than twice as fast as before CERF.


The creation of CERF was part of a wider- ranging humanitarian reform process, which is aimed at forging more effective partnerships between the United Nations and non-UN actors. Besides ensuring more adequate and timely humanitarian financ-ing, which is a principal goal of CERF, the reform process also rests on two additional pillars: strengthening the Humanitarian Coordinator system, and using the cluster approach to build up capacities in “gap” areas to help ensure adequate response capacity, predictable leadership and strong partner-ships in all sectors.

Humanitarian Coordinators are the most senior UN humanitarian officials on the ground in times of crisis; they are typi-cally appointed in emergencies that require a

senior official on site full-time over an extended period. The quality of emergency response, both short- and long-term, depends largely on timely deployment of a well-prepared, experienced official with knowledge of the affected area. Enhancements to the Humanitarian Coordinator system included new means of identify-ing, recruiting and training potential coordinators well in advance of emergencies. For the first time, the roster of potential candidates now includes individuals from outside the United Nations system as well as UN per-sonnel. The training programme for the Humanitarian Coordinators commenced in November with the HC Pilot Induction Briefing.

To strengthen response capacity in areas where there are currently gaps and weaknesses, and create clearer sectoral leadership, OCHA, on behalf of the international humanitarian system, launched a $38 mil-lion cluster appeal in March 2006. The funds are being used to train deployable emergency staff, to boost com-mon emergency stockpiles and to develop commonly agreed standards, guidelines, frameworks, systems and tools for emergency response. By year’s end, contribu-tions totalled $25 million, though most of that amount arrived well into the appeals process, thus resulting in less progress than expected during 2006.

The cluster approach was used in four major new emergencies in 2006: Pakistan, Indonesia ( Jogyakarta), Lebanon and the Philippines. It was also introduced

Food:$78,602,597

Health:$56,060,825

Protection/human rights/rule of law:$3,895,818

Shelter and non-food items:$7,168,961

Water and sanitation:$14,557,836

Agriculture:$12,950,990

Coordination and support services: $33,151,062

Mine action:$516,800

Multi-sector:$51,365,878

Education:$1,036,718

2006 CERF committed funds by sector


in five countries with ongoing humanitarian opera-tions: the Democratic Republic of the Congo, Liberia, Somalia, Uganda and Colombia. Most clusters have reported a greater pooling of knowledge and sharing of best practices, better contingency planning and more effective use of existing resources. National authori-ties have also indicated that the cluster system has improved the structure, accountability and profession-alism of emergency response. Still, one of the lessons of the capacity-building exercise thus far has been that the humanitarian reform process needs to be clearly communicated to all stakeholders if it is to take hold and be successful.

Among other key lessons of 2006 is that active par-ticipation by non-governmental partners in the global clusters has been constrained by lack of resources. Finding creative ways to ensure continued effective engagement by such organizations, especially local NGOs, will be critical to ensuring the continued rel-evance of the global capacity-building and response preparedness exercise.

Another area of intense activity in 2006 has been in improvingemergencyresponse. This effort has ben-efited from lessons-learned exercises completed in the past year, which evaluated international response to the 2004 Indian Ocean tsunami and the 2005 Pakistan earthquake. Among the lessons of these analyses and other recent experience is that insufficient surge capaci-ties have slowed response to sudden-onset emergencies and have prevented the rapid scaling-up of humanita-rian presence.

Responses to the emergencies in Pakistan and Lebanon were rapid. Within 8 to 10 hours of the earthquake, OCHA and the United Nations Disaster Assessment and Coordination Team had deployed staff to the respective country. Even so, in Pakistan it still took too long to recruit and deploy surge capacity, and replacement of surge capacity with regular staff was also delayed, leading to the prolonged deployment of the assessment and coordination teams. While quick to

arrive in Lebanon, OCHA had difficulty responding at full capacity. The team never reached critical mass and lacked the appropriate balance and regional exper-tise. OCHA has made it a high priority to strengthen and make its surge capacity more effective. Surge ros-ters need to include a more diverse range of staff who speak relevant languages and understand the dynamics of countries to which they will be deployed.

An effective humanitarian response also requires effective coordination with national and international military forces. In the Lebanon emergency, the United Nations pursued an unusual but successful concur-rence procedure with the Israel Defense Forces (IDF), in which UN humanitarian personnel were stationed within the offices of a party to the conflict for the first time. This enabled humanitarian officials to have greater access to affected populations while also improving security for humanitarian convoys and safety for relief workers. In the process, IDF also developed a greater understanding of the operations of UN agencies.

Another element of timely response is the prompt and strategic funding of humanitarian efforts at the onset of emergencies. The flash and consolidated appeals processes have improved performance in this area. Future flash appeals will more clearly define the duration of appeals — whether oriented to short-term relief or longer-term transitional needs — according to realistic assessments of the operating capacity on the ground. Financial tracking and reporting efforts will be scaled up to better inform the host Government and donors on expenditures and performance.

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Background

Providing for the “adjustment or settlement of interna-tional disputes”, based on “the principles of justice and international law”, is among the founding purposes of the United Nations, set forth in Article 1 of its Charter. Among the first and most prominent embodiments of these purposes is the International Court of Justice, the principal judicial organ of the United Nations, established in the Charter to hear contentious issues between States. The Court also issues advisory opinions on legal questions submitted to it by duly authorized international organs and agencies, thus contributing to preventive diplomacy and the development of international law. Sitting at The Hague in the Netherlands, the 15-member Court had 13 cases pending before it as of the end of 2006.

Other courts and tribunals have also been created under UN auspices to hear cases arising from specific issues or conflicts. One example — and the first criminal court ever established by the UN Security Council — is the International Tribunal for the Former Yugoslavia, which began work in 1993. The Tribunal was created as the “justice pillar” of the United Nations peacekeep-ing action in the Balkans, and hears cases involving

crimes against humanity (including genocide) and/or war crimes committed during the Yugoslav conflicts between 1991 and 2001 in Croatia, Bosnia, Kosovo and Macedonia. Its Chambers, based in The Hague, consist of 16 permanent judges and up to 12 ad litem judges at any given time. During 2006, up to 85 detainees were in the custody of the Tribunal.

The Security Council followed a similar approach in establishing the International Criminal Tribunal for Rwanda, whose mandate is to prosecute and punish per-sons most responsible for crimes such as genocide, crimes against humanity and war crimes committed in Rwanda and its neighbouring States in 1994. The Tribunal’s seat is in Arusha, United Republic of Tanzania. Its 18 trial judges (comprising nine permanent judges and nine ad litem) presided over trials related to 32 defendants in 2006.

Besides the direct administration of justice in courts and tribunals, the Secretariat also works to promote international law and improve the effective implemen-tation of the rule of law. To that end, the Secretariat’s Office of Legal Affairs (OLA) not only serves as the central legal service for the United Nations, responsible for providing legal advice to UN organs in the fields of public and private law and protecting the rights


and privileges of the Organization, but works with Member States on the progressive development and codification of international law. It provides assistance to intergovernmental bodies and States in the law of the sea, international trade law and treaty law. It also registers and publishes treaties and assists Member States in becoming parties to, and living up to the obli-gations of, international conventions.

Highlights

Cases before the International Court of Justice in 2006 originated from all over the world: four between European States, two between African States, four between Latin American States, one between Asian States and two cases of an intercontinental nature. In 2006, the Court concluded one case and delivered an order on provisional measures in another. In the same period, the Court held four sets of hearings in three dif-ferent cases for a total of nearly three months of sittings. Three cases were simultaneously under deliberation as the calendar year came to an end.

Among the Court’s most widely followed cases in many years has been the Application of the Convention on the Prevention and Punishment of the Crime of Genocide (Bosnia and Herzegovina v. Serbia and Montenegro). Although the ruling was issued in 2007, the decision was based on nine weeks of hearings held in 2006, between 27 February and 9 May. (The Court ultimately ruled that Serbia “had not com mitted gen-ocide”, but that it had “violated the obligation to pre-vent genocide”.) In a long-standing dispute between Argentina andUruguay over pulp mills on the River Uruguay, the Court ruled in July 2006 that the circum-stances, as presented, were not such as to require the Court’s power to indicate provisional measures. A sub-sequent request by Uruguay, which the Court heard in December, resulted in a similar ruling issued in early 2007. In another significant dispute, between the Democratic Republic of the Congo and Rwanda, the Court found in February that it did not have jurisdic-tion to proceed to the merits.

The Tribunal for the former Yugoslavia com-menced three trials between April and July 2006 involv-ing five, six and seven accused individuals, respectively. Combined with proceedings that were already under way, its Chambers were at one point trying 25 accused in six trials simultaneously, the highest number in its 14-year history. However, the Tribunal found itself under critical scrutiny during the year, when Milan Babic, the former President of a self-proclaimed Serb political entity in eastern Croatia, committed suicide on 5 March while serving his sentence of 13 years, and when Slobodan Milosevic, the former President of the Federal Republic of Yugoslavia, died of natural causes on 11 March, just weeks before the completion of his landmark trial.

The untimely death of Mr. Milosevic frustrated gravely the course of justice, as it resulted in the termi-nation of the proceedings without a judgment of any kind. Notwithstanding, the transcripts of the court sessions and the evidentiary materials exposed during this four-year-long trial constitute an invaluable his-torical and legal legacy, and may well be used in other cases. One of these latter cases is the trial of Vojislav Seselj, yet another major political leader tried at the Tribunal. However, this trial was delayed when the accused went on a hunger strike that lasted six weeks, causing the Appeals Chamber to bring a legal remedy to an unacceptable life-threatening situation. The case resumed in early 2007.

At the same time that the Tribunal continued concentrating on the proceedings against the most senior accused persons, it also accelerated the referral of cases involving lower-ranked suspects. By the end of 2006, seven people who were initially indicted by the Tribunal were transferred for trial in Bosnia and Herzegovina; and referral of an eighth to Serbia was under consideration by the Appeals Chamber.

In 2006, the TribunalforRwanda concluded trials in relation to five accused, delivering judgment in four of these cases. Judgment in the fifth case is expected in 2007. Two sentencing hearings and judgments fol-lowing guilty pleas were completed during 2006. Nine U

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other cases, involving a total of 25 additional defen-dants, were ongoing in the same period. The Tribunal is therefore on track to complete the trials of 65 to 70 accused by the end of 2008.

The high volume of proceedings before the Rwanda Tribunal placed considerable demands on its four courtrooms, requiring enhanced measures in 2006 to maintain full and efficient use of the available space. The Office of the Prosecutor has likewise taken various streamlining steps during the year aimed at improving workflow and instituting best practices.

The Office of Legal Affairs is responsible for the establishment of and support for international and internationally assisted criminal tribunals. This effort is aimed at ending the impunity of perpetrators of seri-ous crimes. OLA made significant progress in 2006 in the establishment of a Special Tribunal for Lebanon, which would be mandated with bringing to justice those responsible for the bombing that killed former Lebanese Prime Minister Rafik Hariri and others. On behalf of the United Nations, the Office negotiated an agreement with Lebanon on the establishment of the Tribunal and on the statute under which it would operate, and the Security Council endorsed those instruments.

OLA also provided intensified capacity-building services for Member States and international treaty bodies in the lawof theseaandoceanaffairs. These activities included advisory services, briefings and train-ing programmes, publications and databases aimed at raising awareness and understanding of the legal aspects of international maritime issues.

A significant treaty event took place in September, called “Crossing Borders”, in which 46 States took a total of 86 actions related to 40 treaties. The event focused on multilateral treaties in the following areas: refugees and stateless persons; migrant workers; human security and trafficking in persons and firearms; sus-tainable development, food security and ecological migration; and disarmament and State security. OLA annually hosts such events to increase States’ participa-tion in treaties.


Because of its statutory obligations, the International Court of Justice has little control over its workload in any given year. The number and timing of cases before the Court depend on actions brought before it by States and on advisory opinions requested by organs of the United Nations and specialized agencies. Such actions and requests may arise without notice at any time. Nor is the total number of cases on the docket a full measure of the Court’s responsibilities during the year. The sub-mission of preliminary objections in a case can some-times result in two consecutive sets of proceedings, each comprising the filing of written pleadings and the organ-ization of oral proceedings, and requiring separate judg-ments. States are sometimes authorized to intervene in proceedings, and respondents sometimes file counter-claims, both of which circumstances can multiply the number of pleadings, hearings and decisions. Further, the Court must always be ready to respond promptly to requests for the indication of provisional measures or to urgent requests for advisory opinions.

Still, the Court has undertaken several measures in recent years to increase the speed and efficiency of its


proceedings, with tighter deadlines and the practice of working on several cases in parallel. All these measures have of course boosted the productivity of the insti-tution, but they cannot by themselves be enough to ensure that the Court will be able, in the near future, to perform its functions. That requires additional resources aimed at its core judicial work.

Although the International Tribunals are judi-cially fully independent, they are operationally depen-dent on international cooperation in order to carry out their mandates successfully. The collection of potential evidence, the arrest and subsequent transfer of accused persons, and the enforcement of sentences are just a few examples of areas where the Tribunals must rely on UN Member States, including the countries of the former Yugoslavia and Rwanda, respectively, to fulfil their missions. Both Tribunals have encountered dif-ficulty in securing the cooperation of Member States in apprehending fugitives.

The two Tribunals jointly intensified their efforts to prepare for the legacy of ad hoc criminal tribunals when their current trials and appeals are closed. The Tribunals analysed which functions could be consid-ered essential, such as witness protection, the enforce-ment of sentences, and the use of their archives.

In the Tribunal for the former Yugoslavia, not a single arrest was effected in 2006, resulting in the continuing flight of six fugitives, including Radovan Karadzic and Ratko Mladic (known to be in Serbia), although 12 years have passed since they were indicted. Besides the offence to victims of the crimes allegedly committed by the fugitives, this situation also seri-ously jeopardizes the Tribunal’s deadline of 2010 for the completion of proceedings. The President and the Prosecutor have said throughout 2006 that the Tribunal will not close down before all indictees have been brought to The Hague.

Thanks to the cooperation of a number of States, the Tribunal was able to transfer four persons defini-tively sentenced to Austria (two convicts), Italy (one) and Denmark (one). These bring to 23 the number of convicted persons serving their sentences by the end of

2006, with another eight convicts waiting to be trans-ferred. The Tribunal also signed an agreement with the Czech Republic on the loan of prison staff; and Sweden accepted the Tribunal’s request to conduct an audit of its Detention Unit. But in the face of the cur-rent and expected trials, the Registrar called upon the international community in June to enter into at least ten more agreements for the enforcement of sentences and into at least five more agreements for the reloca-tion of sensitive witnesses.

The International Criminal Tribunal for Rwanda will take all possible measures to complete its trial activities at the first instance by the end of 2008, as required by the completion strategy. This impending completion date has made it increasingly difficult for the Tribunal to attract and retain staff, given the short remaining term of employment. Meanwhile, the increased pace of trials has only intensified the amount of work to be performed in meeting the completion deadlines, and thus the need for con-tinuity and the retention of skilled personnel. The Tribunal’s Registry has formulated special meas-ures to retain staff, some of which are still pending approval.

Alongside the Tribunal’s difficulty in securing sup-port for apprehending fugitives, which was mentioned earlier, there have also been other impediments to its ability to fulfil its mandate. Protection of witnesses by host countries has sometimes been limited, resulting in the death or disappearance of witnesses and the loss of evidence. Some Member States have also been reluc-tant to accept acquitted persons or convicted persons completing their sentence. And the Tribunal has had difficulty in transferring cases to national jurisdictions, though its first referral of a case to a national jurisdic-tion did occur in April 2007.

Resources for building judicial capacity in Rwanda, a critical part of the Tribunal’s longer-term legacy, have been scarce. In general, payment of assessed contribu-tions by Member States has often been delayed, and the issuance of allotments has tended to be piecemeal, thus making it difficult to ensure the smooth and



orderly performance of activities other than the core functions of the Tribunal.

The Office of Legal Affairs has found it especially challenging in 2006 to maintain predictability and time-liness in fulfilling requests for legal advice, including the Office’s participation in the drafting of documents with legal implications. An escalating workload in some areas — particularly in peacekeeping, where the increase in legal work has been especially steep — affects OLA’s ability to provide advice in a timely manner in a way that fully meets the needs of those requesting its services. The

limited number of legal professionals available to OLA compounds all these challenges; however, the Office is implementing plans to retain additional staff, especially to address the increasing workload related to peacekeeping.

Staff capacity to provide assistance to the Legal Counsel in the overall direction and management of the Office has also been limited. To remedy this prob-lem, OLA began in 2006 the process of establishing an Office of the Under-Secretary-General for Legal Affairs, with staff redeployed from elsewhere in OLA and some new posts.

UN Photo/85970

Disarmament


BackgroundIn the pursuit of disarmament and non- proliferation, the challenge is not only to formulate effective policies on which the nations of the world can agree, but equally to overcome the practical difficulties of putting these policies into effect. In both these areas, the United Nations provides essential guidance, techni-cal advice and informed advocacy to Member States and international bodies aimed at limiting the world’s supply of weaponry and promoting international security.

As the Secretariat’s primary agent in this field, the Office for Disarmament Affairs (ODA) monitors and analyses global developments in disarmament and non-proliferation, and assists Member States in reviewing and implementing multilateral disarmament agree-ments, instruments and frameworks. (In 2006, and until April 2007, ODA was known as the Department for Disarmament Affairs, or DDA.) The Office sup-ports multilateral negotiation and deliberation on dis-armament and non-proliferation issues. It encourages transparency, information exchange and confidence-building measures in the field of disarmament, and helps to advance regional approaches to disarmament and non-proliferation. With sustained diplomacy and advocacy, ODA helps to build awareness, understand-ing and support of UN efforts in this field.

Yet the work of disarmament also involves the col-lective efforts of a great many other organizations and partnerships, both within and beyond the UN family. ODA’s responsibilities therefore include coordination and collaboration with a range of entities whose missions focus on disarmament and non-proliferation — such as the International Atomic Energy Agency, the Orga n-isation for the Prohibition of Chemical Weapons, the Preparatory Commission for the Comprehensive Nuclear-Test-Ban Treaty Organization, the United Nations Institute for Disarmament Research, and the Small Arms Survey. But the Office also works closely with organizations whose much broader mandates encompass an interest in disarmament, such as the World Health Organization, the Office on Drugs and Crime, and UN programmes dedicated to social and economic development, as well as a wide range of independent multilateral bodies and civil society organizations.

Highlights

In the past year, four significant events took place that yielded some dividends, as well as some disappointment, in the field of disarmament. These events reflect two important objectives of 2006. The first is to ensure that multilateral negotiations on disarmament lead to univer-sally acceptable agreements. The second is to promote


efforts to limit weapons of mass destruction, particularly nuclear weapons. The latter objective includes assistance to Member States, when requested, in implementing existing treaties on these weapons.

The first of the significant events of 2006 was an international gathering in late June and early July to review progress in controlling illicit small arms and light weapons, following a Plan of Action adopted five years earlier. Unfortunately, the Conference to Review Progress Made in the Implementation of the Programme of Action to Prevent, Combat and Eradicate the Illicit Trade in Small Arms and Light Weapons in All Its Aspects did not reach agreement on an outcome document and follow-up process. Member States were unable to agree on whether the Conference should focus only on progress in imple-menting the Plan of Action or whether it should also revisit issues on which no agreement had been reached in 2001. Yet, despite the disappointing out-come, the Conference did succeed in bringing the issue of small arms to the forefront of the disarmament agenda, as evidenced by the number and diversity of high-level participants addressing the Conference, including both senior Government officials and rep-resentatives of major international, regional and non- governmental organizations.

ODA contributed to the progress of the Conference both in advance and throughout its proceedings. The Office organized a number of informal consultations in the months before the Conference, where Member States could discuss issues of major concern, and also advised Member States on logistical and substantive matters related to the Conference proceedings. In addi-tion, in collaboration with the Secretariat’s Department of Public Information, ODA mounted a vigorous media and communication campaign to promote the purposes and objectives of the Review Conference.

The second significant development of 2006 was a series of regional seminars on non-proliferation of weapons of mass destruction, organized by ODA through its regional centres and funded by a number of donor States. Seminars in China, Ghana and Peru

aimed to raise participants’ awareness of obligations and requirements under two Security Council resolutions, 1540 (2004) and 1673 (2006). These require that all States establish domestic controls to prevent the pro-liferation of nuclear, chemical and biological weapons and their means of delivery; that they create appropri-ate controls over related materials; and that they adopt legislative measures related to these requirements. Some 200 representatives of national Governments and of regional, subregional and international organizations participated in at least one of the regional seminars.

The third important event was the Sixth Review Conference of the Biological Weapons Convention that took place in Geneva in November-December 2006, and was attended by the Secretary-General. The Conference succeeded in bolstering the biological weapons regime in a number of practical ways, includ-ing the establishment of an Implementation Support Unit in ODA’s Geneva Branch. The unit will support meetings agreed upon by the Conference and activi-ties related to national implementation and univer-salization of the Convention, as well as the exchange of confidence-building measures among States parties.

The fourth important event, also in November, was the Third Review Conference of the Convention on Certain Conventional Weapons. The Conference celebrated the entry into force of a new protocol that tightens international humanitarian law on explosive remnants of war, the unexploded aftermath of conflict that wreaks deadly havoc among unsuspecting civil-ians. The Conference also established a Sponsorship Programme to assist the least developed States in implementing the Convention and participating in activities related to it. The Conference also agreed on a plan of action to universalize the Convention.

The November Review Conferences — on biologi-cal and conventional weapons, respectively — repre-sented important progress on two central treaties. As such conferences occur only once every five years, their relative successes are all the more significant given the unpromising circumstances in which they took place. The absence of a meaningful outcome in the field of U

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disarmament and non-proliferation at the 2005 World Summit, combined with the lack of a substantive outcome from the Nuclear Non-Proliferation Treaty Review Conference that year, had cast dark shadows over the prospects for disarmament diplomacy in 2006. Member States and ODA made a heavy invest-ment in trying to reverse fortunes during the ensu-ing year, securing a number of dividends in these two Review Conferences.


Despite the progress represented above under “Highlights”, the disarmament programme of the United Nations continued to face formidable obsta-cles in 2006, both political and financial. Politically, the divergent views of Member States continued to impede the work of the Conference on Disarmament, where the nine-year-long impasse continued. The dif-ference in Members’ views prevented the Conference from reflecting in its final report several positive developments that had occurred during the course of its deliberation. Divergent views likewise affected

the deliberation and outcome in other disarmament forums, including the failure of the Review Conference on small arms and light weapons to produce an out-come document, as was described earlier.

Financially, despite vigorous fund-raising efforts, it remained a daunting challenge for ODA to raise funds for regional activities. Amid a steady increase in requests for assistance from States, the regional cen-tres for peace and disarmament were faced with severe financial constraints, particularly in Africa. While some of this gap can be filled in the short term with more effective fund-raising, Member States may wish to con-sider providing core funding to the regional centres from the regular budget. Difficulty in raising extrabudget-ary resources for outreach activities likewise hampered ODA’s ability to meet rising demand for workshops and seminars to promote various disarmament issues.

One lesson from recent experience with regional seminars on non-proliferation of weapons of mass destruction is that such activities must be more directly tailored to the specific needs of States and their respect-ive regions and subregions in order to yield the intended outcome. Success in these seminars contributes directly

to the Office’s effectiveness by prompt-ing more requests from Member States for assistance in implementation of the Security Council resolutions on weapons of mass destruction.

In its effort to disseminate impartial information to Member States and the public, the Office faces a continuing chal-lenge to make more and better use of infor-mation technology, including on its various websites. Another recent lesson — based on a highly successful approach taken before the Review Conference on small arms and light weapons — has been that developing an information strategy well in advance of major disarmament meetings and events, in collaboration with other UN programmes, helps raise the public’s understanding of these events and the issues they address.

Alessandro Scotti

Drugs, crime and terrorismBackground

All of the essential purposes of the United Nations — peace and security, economic and social development, human rights, humanitarian assistance and the rule of law, among others — are undermined by the corrosive forces of transnational crime, terrorism, corruption and the international drug trade. Since 1997, the United Nations Office on Drugs and Crime (UNODC) has been a global leader in the fight against these destructive forces.

The Office’s mission rests on three pillars. One is researchandanalysis, meant to deepen international understanding of drugs and crime issues and to expand the base of evidence for policy and operational deci-sions. UNODC provides accurate data on drug pro-duction and trafficking through such publications as the World Drug Report and regional studies on the impact of crime, violence and development.

Another pillar is assistance to States in ratify-ing and implementing international treaties on drugs, crime and terrorism and in developing domestic legis-lation consistent with these treaties and with the most promising means of addressing the three problems. Besides help in the drafting of legislation, UNODC provides training for judicial officials as part of its Legal Advisory Programme. The Office also provides sub-

stantive and secretariat services to various treaty-based and governing bodies. UNODC is the guardian of a considerable body of internationally recognized prin-ciples in crime prevention and criminal justice, encom-passing such issues as juvenile justice, the treatment of offenders, international cooperation, good governance, victim protection and violence against women.

The third pillar is field-based technical coopera-tion with Member States and other organizations to enhance capacity for counteracting illicit drugs, crime, corruption and terrorism. Among the Office’s portfolio of 279 active projects in 2006 were counter-narcotics enforcement (26 per cent of the total); prevention, treat-ment and rehabilitation programmes (24 per cent); and sustainable livelihood projects that help create legitimate alternatives to the cultivation of illicit crops.

Highlights

The bright spot for international drug control in 2006 was the remarkable success of the Golden Triangle countries — Myanmar, Thailand and the Lao People’s Democratic Republic — in slashing illicit opium pro-duction to near-negligible levels. But those gains were eclipsed by the bad news from Afghanistan, the year’s big story. Afghan opium production, which accounts


Counter-narcotics enforcement

Anti-money- laundering

Criminal justicereform

Core programme

28HIV/AIDSAnti–organized crime

Prevention, treatmentand rehabilitation

Terrorism prevention

Anti–human trafficking

Sustainable livelihoods

Anti-corruption activities

Advocacy (7)

Laboratory and scientific services (4)

Legal advisory services (1)

Illicit drugs and crime (6)

Information technology (3)

Research and trend analysis,illicit-crop monitoring (8)

2

17

29

8

121

71

209

73

Breakdown of 2006 ongoing projects by theme


for more than nine tenths of total world supply, surged 49 per cent in the past year, to a record 6,100 tons, according to UNODC’s Annual Opium Survey.

The main increases were seen in Afghanistan’s trou-bled southern provinces. With 165,000 hectares under opium cultivation in 2006, the record harvest exceeded total global consumption by 30 per cent. Poppy cul-tivation in Helmand province alone rose by 162 per cent compared with 2005. Only six of the country’s 34 provinces were opium-free.

This setback in Afghanistan was one of three areas of alarm spotlighted in the Office’s World Drug Report 2006. A second was the rise in cocaine demand in Europe, a concern made all the more noteworthy given that worldwide demand for the drug had otherwise levelled off. A third danger signal in the report was a worldwide increase in demand for cannabis, a drug that has become more potent in recent decades and whose harmful characteristics are now little different from those of other plant-based drugs such as cocaine and heroin. A special chapter on cannabis showed that an estimated 162 million people used the drug, equivalent to 4 per cent of the global population aged

15 to 64. While the dangers posed by cannabis contin-ued to rise, many facts about the supply and demand for this drug remained obscure. Further research on this and other issues is under way at UNODC, with expected publication in 2007.

After an impressive decline in coca cultivation in Colombia in the first half of the decade, the area under cultivation increased by 8 per cent in 2005, the most recent year for which data were available during 2006. However, due to simultaneous decreases in Bolivia and Peru, the total area of coca cultivation in 2005 remained at about the same as in the year before. A special chapter of the UNODC report Coca Cultivation in the Andean Region discussed the environmental effects of illicit drug cultivation and processing. While deforestation and water and soil pollution were identified as problems, the study found that very few reliable data were available to measure the extent of the problem accurately.

As part of its field-based technical assistance, UNODC took several important initiatives in 2006 to support cross-border counter-narcotics and anti–organ-ized crime efforts. In February, five Central Asian coun-tries (Kyrgyzstan, Kazakhstan, Turkmenistan, Tajikistan and Uzbekistan) joined the Russian Federation and Azerbaijan in agreeing to set up a regional law enforce-ment intelligence centre in Almaty, Kazakhstan, to fight



illicit drug trafficking. The initiative, called the Central Asia Regional Information and Coordination Centre (CARICC), aims primarily at gathering intelligence to make drug seizures and arrest traffickers. It is significant, not only as a critical step in international cooperation, but also because of the strategic importance of this region in controlling the flow of illegal drugs on the world market. Roughly one fifth of Afghanistan’s 2006 opium crop was smuggled through the five Central Asian republics par-ticipating in the centre. By the end of 2006, five countries had signed the Agreement establishing CARICC, two had still to do so, and none had yet ratified it.

UNODC has supported many aspects of the CARICC initiative, including the renovation and equipping of the centre building. The Office will also be part of the eventual recruitment and training of staff from various law enforcement agencies from across the region — including police, customs officers, immigra-tion officials and others — who will be working in an inter-agency, regional environment.

UNODC’s regional drug control and crime pre-vention portfolio in Central Asia is one of its largest, totalling some $40 million per year, and it continues to expand. In April, UNODC agreed to work closely with the Collective Security Treaty Organization, con-sisting of Armenia, Belarus, Kazakhstan, Kyrgyzstan,

the Russian Federation and Tajikistan, on fighting drug trafficking, terrorism and trans-border crime. The six-nation organization will collaborate with UNODC to develop joint projects against drugs and crime and share information about their respective activities. UNODC will assist law-enforcement personnel from the member countries in gathering and analysing intel-ligence, sharing information, and coordinating opera-tions where appropriate. Other UNODC projects during the year have supported regional cooperation on anti-narcotics law enforcement with the NATO-Russia Council and with the Government of Qatar.

Besides assisting in these multilateral efforts against narcotics-related crime, UNODC’s other anti-crime efforts encompassed a wide range of technical assist-ance tools for police, law-enforcement officers and crime experts in 2006. For example, a Counter-Kidnap Manual, produced with the help of the Government of Colombia and experts from 16 countries, gave police and policymakers concrete guidelines on how to respond effectively to kidnappings — a crime that ensnares more than 10,000 people a year worldwide. A Toolkit to Combat Trafficking in Persons provided a checklist to help officials identify trafficking victims, as well as other guidance on interviewing victims and vic-tim protection. The Toolkit addressed the need to bring national legislation into compliance with international standards and to strengthen international co operation in criminal justice, including the extradition of crimi-nals and confiscation of the proceeds of crime.

In strengthening international resistance to terror-ism, a landmark event took place in 2006, when the General Assembly unanimously adopted the United Nations Counter-Terrorism Strategy on 8 September — the first time that all 192 Member States were able to agree on a common approach on this issue. The Counter-Terrorism Strategy makes extensive reference to the work of UNODC in this area and urges States to make use of the Office’s expertise.

In 2006, UNODC provided direct assistance to 54 countries on ratification and implementation of international conventions and protocols related to

Breakdown of 2006 ongoing projects by region

Global

LatinAmericaand theCaribbean

South Asia–East Asia and the Pacific

West and Central Asia

Africa and the

Middle East

Central and EasternEurope

16 35

61

4954

64


terrorism. It conducted 11 regional workshops that reached more than 82 countries and trained approxi-mately 1,700 criminal justice officials. By the end of December 2006, 85 countries had ratified the first 12 international conventions and protocols relating to the prevention and suppression of terrorism, com-pared with 75 in 2005, and 26 in 2003. This is clearly a growth area for the Office, which will aim to inte-grate counter-terrorism efforts into other substantive areas of its work, including money-laundering, trans-national organized crime, corruption and criminal jus-tice reform.

A point of worldwide vulnerability to both crime and terrorism is sea transport — particularly the 220 million containers that move around the globe every year, transporting 90 per cent of the world’s cargo virtually uninspected. To reduce the risk of the use by organized crime syndicates and terrorists of containers for criminal purposes, UNODC designed a Container Control Programme to help Governments control the movement of sea freight. The programme began in Ecuador and Senegal in 2005, and new pilot projects were added in Ghana and Pakistan in 2006. In March, the Joint Port Control project pulled off a stunning success in Guayaquil, Ecuador, when cus-toms and police seized more than 5.5 tons of cocaine, a haul that would have been worth more than $550 mil-lion in North America or Europe. The consignment had arrived from the Colombian port of Buenaventura in December 2005 in a container officially carrying bed sheets.


In order to deliver results, UNODC needs a clear idea of where it is going and the means to get there. To this end, the Office engaged a broad spectrum of stakeholders in 2006 in developing a medium-term Strategy (2008-2011). The Strategy sets forth three main themes of UNODC’s work. The first is the ruleof law, in which the Office’s main objectives are to promote, at the request of Member States, effec-

tive responses to crime, drugs and terrorism as well as effective, fair and humane criminal justice systems. The second main objective is to provide high-quality policyandtrendanalysis, enhancing knowledge of thematic and cross-sectoral trends for effective policy formula-tion, operational response and impact assessment in drugs and crime.

The third focus of UNODC’s work is on the inter-locking themes of prevention, treatment and reinte-gration, and alternative development. The main objectives of this line of work are to reduce opportuni-ties and incentives for illicit activities and gains, and to reduce drug abuse, HIV/AIDS, criminal activity and victimization, with a special focus on women and chil-dren. This also entails the dissemination of informa-tion and successful practices in all these areas. Closely related objectives include enhancing effective preven-tion campaigns, care and reintegration into society of drug users and offenders, and assistance to victims of crime. In promoting sustainable development, the objective is to foster and strengthen international cooperation based on the shared responsibility prin-ciple. Where appropriate, this includes support of pre-ventive alternative development.

Much of 2006 was devoted to extensive consulta-tions within UNODC staff and with Member States, external experts and civil society organizations on the content and structure of the medium-term Strategy, which in 2007 was endorsed by UNODC’s intergov-ernmental bodies. The Strategy provides a cornerstone for institutionalizing a results-oriented approach across all the component parts of the Office. For the first time, it sets forth a comprehensive plan for a four-year period, with concrete results grouped thematically, rather than by organizational unit, thus encouraging cross- fertilization of ideas, experiences and lessons learned.

The Strategy serves as a logic model not only for planning, but also for monitoring and reporting purposes. It was also essential for fostering a uni-fied corporate identity and capitalizing on synergies among the various elements of the Office, including the UN International Drug Control Programme and

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the Centre for International Crime Prevention, which came together to form UNODC. Building blocks for the implementation of the Strategy were identified in 2006 and training began on Project Cycle Management and Evaluation.

Also in 2006, a working group of Friends of the Chairs was created for the two Commissions supported by UNODC: the Commission on Narcotic Drugs and the Commission on Crime Prevention and Criminal Justice. The working group allows for in-depth consul-tations regarding the UNODC Strategy with the lead-ers of both Commissions. This is the first time that the two governing bodies were convening joint sessions, though the sessions remained informal.

In recent years, Member States have underlined the need to strengthen UNODC’s capacity to help them deal with the challenges posed by drugs, crime and terrorism. But resources must keep pace with rising expectations and demands. So far, intergovernmental commitments have not been matched by increased material support to UNODC’s regular budget. There is a growing imbalance between mandates and tasks, on the one hand, and resources, on the other.

The Office’s tasks have increased significantly over the past five years, most notably with the adoption of the United Nations Convention against Corruption and the United Nations Convention against Transnational Organized Crime, with its three Protocols. Yet the share of the regular budget within UNODC’s total budget has dropped by 16 per cent, from 13.5 per cent of total funding in 2002-2003 to 11.3 per cent in 2006-2007. This is insufficient to support new man-dates and projects. The Office needs stable, predictable and sufficient funding for its core mandated activities.

In the current biennium, some 89 per cent of UNODC’s funding consists of voluntary contribu-tions, with the remainder coming from the regular budget. Voluntary funding has risen by 70 per cent since 2002, which is a strong show of support from individual donors. But this consists mainly of ear-marked contributions that do not necessarily corre-spond to the priorities agreed by intergovernmental bodies. States make these contributions for specific projects and they cannot be used to augment the short-fall in the regular budget.

UNODC’s efforts at alternative development, a key element of its drug control programme, also require significant investment. In 2006, at most 10 per cent of farmers who needed assistance received the support they needed to find other ways of feeding their families. Lasting progress in curbing production of opium and cocaine requires a comprehensive devel-opment strategy that includes better transport and infrastructure, improved security, health care, rural development, criminal justice, better education and good governance.

UNODC aims to be as successful in crime and ter-rorism prevention as it has been in drug control. But a major constraint is the lack of reliable data on crime trends. On drugs, UNODC issues the most authorita-tive reports based on crop surveys, drug addiction data and trend analysis, which are relied on by Governments, experts, the media and even intelligence agencies. This is expertise of a high calibre, contributing to powerful knowledge-based policy analysis. But the crime pil-

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lar is weaker, not least because not all Member States provide the necessary data, and resources for crime prevention are limited.

UNODC highlighted the absence of reliable data in its report Trafficking in Persons: Global Patterns in 2006, its first such report. There is a similar need for much better data in tracking major issues such as cor-ruption and organized crime, where it is not even clear what should be measured, and how. Underreporting is likewise a problem: many countries are not monitor-ing these crimes and are not providing the information needed for effective multilateral action. The result is that agencies working on these issues are operating in an “information fog” and do not have an accurate pic-ture of the world crime situation.

Refugees


Background

From the earliest years of the United Nations, Member States have invested the Organization with responsi-bility for safeguarding the rights and well-being of the world’s most vulnerable people, notably the tens of mil-lions of refugees and internally displaced persons (IDPs) on every continent of the globe.

To lead in discharging this responsibility worldwide, the General Assembly established the Office of the United Nations High Commissioner for Refugees (UNHCR) in 1950. In 2006, the High Commissioner and his staff of 6,300 in 116 countries were tasked with providing protection and material help, and with seek-ing durable solutions, for more than 20 million of the world’s displaced. This figure reflects the increasing involvement of UNHCR in conflict-related situations of internal displacement.

Refugees are legally defined as people who are out-side their countries because of a well-founded fear of persecution based on their race, religion, nationality, political opinion or membership in a particular social group, and who cannot, or do not want to, return home. As a humanitarian, non-political organiza-tion, UNHCR has two basic and closely related aims: to protect refugees and to seek durable solutions by which they can restart their lives in a normal environ-

ment. When it is sometimes impossible for refugees to go home, UNHCR helps them either to integrate in countries where they first sought asylum or to go to one of some 15 countries that regularly accept refugees for permanent resettlement.

International protection is the cornerstone of the agency’s work. In practice this means trying to guarantee a refugee’s basic human rights and ensuring that no per-son will be returned involuntarily to a country where he or she has reason to fear persecution, a process known as “refoulement”. In that context, UNHCR promotes inter-national refugee agreements and monitors Government compliance with international refugee law. It works with public authorities, civil society and refugee communities themselves to provide protection and to minimize the threat of violence, including sexual assault.

Legal protection means little unless a person’s basic material needs — including shelter, food, water, sani-tation and medical care — are also met. The agency therefore coordinates the provision and delivery of such items and has designed specific projects for women, children and the elderly, who usually comprise 80 per cent of a refugee population. For example, UNHCR and partners such as the World Food Programme work to ensure that refugee women participate in the management and distribution of food and non-food items. Other projects that take account of specific

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protection-related risks for particular groups include the provision of legal counselling and representation, vocational training, income-generating activities and ensuring safe access to firewood.

At all levels of its activities, UNHCR works in partnership with Governments and regional, interna-tional and non-governmental organizations, as well as with fellow UN agencies. Collaboration in the spirit of “Delivering as One” in the past year has included par-ticipation and contributions to ongoing discussions on UN reform initiatives in many areas, as well as active involvement in the inter-agency cluster approach as a predictable and strongly engaged operational partner with wide and in-depth field experience.

Preceding the establishment of UNHCR was the UnitedNations Relief andWorksAgency forPalestine Refugees in the Near East (UNRWA), whose distinct mission includes promoting the human development, self-reliance and well-being of those who fled their homes in British Mandate Palestine during and after the 1948 conflict, and lost both their homes and means of livelihood as a result. More than 4.3 million Palestine refugees were on the Agency’s rolls in 2006, and thus eligible for its health, education and other services, including welfare and emergency humanitarian aid. UNRWA operates in the Gaza Strip, Jordan, Lebanon, Syria and the West Bank, including East Jerusalem.

UNRWA employs some 27,000 staff, most of whom are Palestine refugees, and — unlike most UN

agencies — delivers services directly to its beneficiaries. In 2006, it enrolled close to 500,000 children in its 663 schools, recorded some 9 million patient visits to its 127 clinics, and ran, or supported, 105 community centres for women. Over the decades, its serv-ices have helped the refugees attain some of the highest education and health standards in the Middle East.

Unlike UNHCR, whose man-date is oriented towards protection for refugees and finding solutions for their plight, UNRWA is prima-rily charged with providing essential services for the Palestine refugees until the resolution of the issue, in the context of a final political settlement of the Israeli-Palestinian conflict. Through its core programmes and regular interventions with governmental authorities, UNRWA also provides a measure of protection to Palestine refugees.

Highlights

UNHCR

UNHCR helped many refugees to find solutions to their plight in 2006. The end of civil wars in recent years allowed for large-scale repatriation operations to be undertaken in Angola and Liberia. The Angola repat-riation operation, which has now ended, saw the return of some 400,000 refugees over a period of five years. The operation in Liberia has achieved the organized return of 90,000 refugees since October 2004 and has also supported an additional 200,000 spontaneous refu-gees. In the largest organized repatriation operation in the history of UNHCR, over 4.8 million Afghans have returned home, mostly from Pakistan and the Islamic Republic of Iran, since 2002.

However, other situations have remained politi-cally complex, slowing down the repatriation process. For example, UNHCR assisted the return of nearly 26,000 refugees to Southern Sudan in 2006, but the

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operation was severely challenged by fragile security conditions and a lack of infrastructure and basic serv-ices such as schools and health clinics.

One of UNHCR’s goals in the protection of refu-gees is to bring about a more equitable sharing of bur-dens and responsibilities among all the parties affected by population displacements, and to build the capac-ity of Governments and civil society to receive and protect refugees. An example of progress in this area in 2006 was the registration of asylum-seekers from Iraq. UNHCR worked to achieve a fair distribution of effort among not only Government authorities in countries neighbouring Iraq but also other countries that are providing funds, staff expertise and resettle-ment places. These combined efforts include register-ing Iraqi asylum-seekers, providing documentation that is recognized in asylum countries as allowing for legal stay, enhancing access to rights and services such as medical care, education and humanitarian assist-ance, and resettling the most vulnerable.

Among the most complex protection challenges have been situations where armed elements try to enter asylum countries mixed with arriving refugees. This has been a grave concern, for example, in eastern Chad, where ethnic violence has spread from neighbouring Sudan and severely strained the ability of Government security forces to protect several hundreds of thou-sands of internally displaced Chadians and Sudanese refugees. Fighting has restricted humanitarian access to camps and to the many IDPs scattered in surround-ing villages. The civilian character of some camps was undermined when rebels were found to be recruit-ing refugees to fight for their cause. In September 2006, UNHCR issued Operational Guidelines on Maintaining the Civilian and Humanitarian Character of Asylum, which provide practical guidance on the identification, separation and internment of armed elements in such situations.

Sexual and gender-based violence also threatens many refugees and IDPs, given that camps are often in remote locations where government mechanisms and the rule of law are weak. In Kenya, where prevention and

response to sexual and gender-based violence received particular attention in 2006, better policing and distri-bution of firewood have reduced the incidence of attacks on women and children who are out gathering wood. UNHCR has instructed all its country offices to estab-lish standard procedures to prevent or respond to sexual and gender-based violence. An Executive Committee Conclusion on women and girls at risk, adopted in 2006, also provided a framework for UNHCR, Governments and other actors to work together to identify and respond more effectively to the particular risks of violence against women and girls in situations of displacement.

UNRWA

In a vigorous effort to rehabilitate the education of almost 200,000 Palestine refugee youth in Gaza, UNRWA launched a “Schools of Excellence” initiative in September 2006. Given the deepening conflict in 2006 and a worsening humanitarian crisis, the considerable education achievements of past years have been imper-illed, and academic standards in both UNRWA and Palestinian Authority schools have declined. UNRWA’s initiative seeks to strengthen classroom teaching through recruitment of remedial teachers and surveillance of illit-eracy, better lesson planning and repetition of scholastic years by underperforming students. By the end of 2006, UNRWA was ready to pilot the initiative in 31 schools. Implementation was scheduled for early 2007.

The crisis in Lebanon (discussed at greater length in the chapters “International peace and security” and “Humanitarian assistance”) presented enormous and unexpected challenges for UNRWA. Nevertheless, it was able to continue its regular services with little inter-ruption and offered emergency aid and shelter to many thousands in need. In the occupied Palestinian territory, the Agency provided emergency food aid to more than 1 million Palestinians, and created more than 3 million workdays for 50,000 unemployed refugees, supporting a further 300,000 to 400,000 people. UNRWA also provided cash assistance to impoverished refugee fami-lies, funded the reconstruction of homes destroyed by the Israel Defense Forces, and brought health care through mobile clinics to communities cut off by the


West Bank barrier. In Gaza, support to municipalities helped maintain vital public services.


UNHCR

One of UNHCR’s biggest challenges in 2006 related to becoming a predictable and fully engaged partner in the newly developing inter-agency approach to situations of internal displacement. Increasingly, the United Nations has improved the coordination of such activities by organizing “clusters” of UN and partner agencies, typically with one agency in the lead, focus-ing on particular areas such as emergency telecommu-nications or water and sanitation, where critical needs or gaps have been identified. (More information on the “clusterapproach” is presented in “Humanitarian assistance”.) UNHCR has assumed responsibility for leading clusters on protection, emergency shelter, and camp coordination and management in situations of conflict-related internal displacement.

What became evident during 2006 was that, when working with IDPs, the operational environment is very different from the majority of refugee operations. Security is an overriding concern, as IDPs are often trapped in, or flee to, the margins of conflict. This is a significant operational constraint and requires elevated levels of vigilance and clearly defined safety and secu-rity controls. For example, in Chad, where the num-bers of IDPs has grown from some 30,000 to 120,000, limited humanitarian access and security remain major constraints to UNHCR’s efforts to deliver protection and assistance.

Among the ways that UNHCR helps to strengthen implementation of the 1951 Refugee Convention and the 1967 Protocol is by providing technical support to States in the determination of refugee status. In 2006, experts were deployed to UNHCR field offices and Governments in 12 countries to help process asy-lum applications in emergency situations, and to pro-vide support and expert advice on the development

and implementation of procedures for determining refugee status.

During 2006, the phenomenon of “mixed move-ments” of migrants and refugees continued to grow. These are situations in which the large majority of peo-ple on the move are migrants, but some are also in need of international protection, such as refugees, victims of trafficking and unaccompanied minors. Acknowledging the challenges that many Governments face in address-ing such movements, UNHCR launched a Ten-Point Plan of Action in 2006, aimed at ensuring that measures taken to curb irregular migration do not prevent refugees from gaining the international protection they need and to which they are entitled. The plan recommends a com-prehensive and collaborative response involving countries of origin, transit and destination, as well as international agencies and non-governmental organizations.

UNHCR’s operations depend on quick, flexible and efficient deployment of expert staff and relief material to an emergency situation that may be any-where across the globe. However, while the agency’s target is to be able to respond to an exodus of 500,000 people at any moment, financial limitations in 2006 hindered the establishment of the desired level of emergency stockpiles in convenient locations. Ninety-eight per cent of UNHCR’s annual budget is financed by voluntary contributions. With continuing under-funding of the programme budgets approved by the Executive Committee, Member States are encouraging UNHCR to broaden its donor base.

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Refugees

In early 2006, the High Commissioner initiated a structural and management change process designed to address a number of trends, including increases in fixed costs and decreases in the share of resources being directly provided to refugees and other persons of con-cern. Expected outputs include greater adaptability and predictability in a changing operational and insti-tutional environment; enhanced operational efficiency; a leaner headquarters, with possible out-posting of some administrative and support services to a more cost-effective location; and a reallocation of resources to maximize essential protection and assistance deliv-erables. Executive Committee Member States have signalled their support for the structural and manage-ment change process, and the agency is currently in the midst of a challenging organizational reform, with the aim of improving the quality and quantity of services to the millions of vulnerable people who depend on UNHCR today.

UNRWA

Among the most severe challenges was the war in Lebanon in July and August. The fighting put a tempo-rary halt to UNRWA’s “Camp Improvement Initiative”, which aims to improve the poor quality of daily life in the 12 camp areas, where about 215,000 refugees live. The Agency was able to resume various projects later in 2006, but the domestic political deadlock fac-ing the Government of Lebanon, whose support was vital, underscored the difficult environment surround-ing this initiative. The Government’s long-standing restrictions on employment of Palestine refugees in Lebanon contributed to high rates of unemployment and poverty and, consequently, increased pressure on UNRWA to meet their needs. UNRWA welcomed the Government’s decision to repeal most restrictions in 2006, but saw no evidence that the measure would produce tangible, near-term improvements in the refu-gees’ low standard of living.

Deepening conflict in the occupied Palestinian ter-ritory during 2006 impeded regular operations. A near-complete ban on the movement of Palestinians in and out of Gaza, imposed by the Government

of Israel, had serious negative consequences. At times, locally recruited staff were stuck outside the territory for weeks on end, unable to return home or report to work. International UN staff working in Gaza and holding Israeli service visas have also experienced great difficulty entering Israel. In the West Bank a significant number of local staff faced difficulty getting to UNRWA’s main field office in Jerusalem because of similar Israeli restrictions on movement. UNRWA’s excess costs resulting from the various restrictions on movement approached $1.75 million in 2006.

Inadequate resources in 2006 also undermined UNRWA’s ability to meet the needs of the refugees. Donor contributions to UNRWA’s $470.9 mil-lion core budget decreased compared to the previous year. Proportionately, the response to the Emergency Appeal for the occupied Palestinian territory was bet-ter, but still fell short of Agency needs by more than $25 million.

In 2006, UNRWA embarked on a comprehensive management reform initiative to strengthen its capac-ity to deliver its services. Focus areas included human resources and programme management, organiza-tional processes and enhanced consultations with stakeholders in the development of strategic priorities. The Agency was also examining how best to achieve a cohesive approach to programming, particularly in cross-sectoral areas such as psychosocial support to the refugees and the upgrading of housing and infrastruc-ture in the official camp areas.

The Agency’s reform process has underlined the need for significant increases in the number of local and international staff — a prerequisite for enhanced efficiency and higher quality of services. Decades of underfunding and concomitant austerity measures have drained the Agency’s capacity to take on new tasks. As part of its efforts to mobilize the funds required for comprehensive reforms, UNRWA is developing ways to articulate more persuasively the needs of the refu-gees, the effects of underfunding on them, and short-comings in its programme activities.


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Organizational supportThe previous chapters represent the Secretariat’s nine strategic programme priorities and outline the perform-ance of each in fulfilling their mandates. This chapter, on the other hand, tells about the work done by sev-eral departments to support the substantive activities detailed throughout the rest of the Performance sec-tion. These include conference services, public informa-tion and human resources management, facilities and ICT support, security and financial control, all of them underpinning the efficient and effective day-to-day functioning of the Secretariat.

General Assembly and conference managementThe Department of General Assembly andConference Management (DGACM) provides the tools and services for all the meetings that are vital to the intergovernmental processes among the Member States of the United Nations, and produces the neces-sary documentation in the six official languages of the United Nations. The Department also provides the necessary technical secretariat services for intergov-ernmental bodies along with a full range of conference services. The Department is responsible for drafting the biennial calendar of conferences and meetings of the

United Nations and presenting it to the Committee on Conferences for its review and recommendation to the General Assembly.

HighlightsThe year 2006 was extremely important for the Department of General Assembly and Conference Management. The project on integrated global man-agement of conference services made solid progress. In line with reports of task forces established under this project, common approaches to administrative policies, practices and procedures were identified and standardized in a cooperative venture involving four duty stations (New York, Geneva, Vienna, Nairobi), thus bringing the four closer than ever before. The Department adopted this cooperative approach, which yielded tangible results.

The Department, at its annual coordination meet-ing of conference managers held in June 2006, reached agreement in key areas of its work — including proac-tivedocumentmanagement,capacitycalculations,acommonterminologydatabaseforitslanguagestaff,and computer-assisted translation. Harmonizing and standardizing key conference servicing opera-tions across the four duty stations will make it easier

to achieve consistency in reporting to Member States and to compare all opera-tions. It will also provide help to stream-line conference-servicing activities, which, in turn, will lead to better sharing of resources and workload.

Also in 2006, the Department launched an information technologyglobal initiative. Outside consultants were engaged to undertake a compre-hensive review of business processes and information technology applications. The goal of the project was to streamline processes and improve integration across the four duty stations. Staff members from all four duty stations were actively involved over a period of several months. In the past, duty stations had developed IT applications in a separate fashion. As part of this initiative, it was agreed that future major development of local applications would stop. Instead, decisions on the best way to move forward would be taken as a unified whole.

Following the study and extensive consultations including a two-day workshop, agreement was reached among the four duty stations on implementing the four major recommendations. The Department established an IT governance board, with participation of IT and programme focal points from all four duty stations.

The Department continued to review its current practices in meetings management with a view to improving — to the extent possible — the services provided to meetings of regional groups. There was an increased demand by Member States for such meet-ings, and, through judicious and coordinated plan-ning, the Department was able to provide services for most requests.

The Department also made progress to utilize better the conference-servicing resources. The electronic meet-ings management programme (e-Meets) was deployed at all four duty stations and greatly facilitated meeting requests, approval and information dissemination.

The Assistant Secretary-General visited the United Nations Office at Nairobi (UNON) and the Economic Commission for Africa to discuss concerns about the low utilization rate of both venues. UNON and ECA strengthened their collaboration so that conference service providers could benefit from best practices. One concrete example of such cooperation is the intro-duction of e-Meets at ECA, thus leveraging an existing system in a cost-effective way.

Document management became more efficient throughapreciseadvancescheduleor“slottingsys-tem”ofsubmittingdocumentsandbetterworkloadplanning through management of the waivers on document length. The Department proactively dealt with the consistent problem of the late issuance of documentation. In addition, the introduction of elec-tronic workflow tools and print-on-demand technol-ogy in publishing contributed to timelier issuance of documents.

Performance analysisThe timeliness of document submission has improved steadily. However, the Department is sometimes faced with factors beyond the control of the Secretariat, which may lead to late submission. For example, some reporting mandates are adopted too close to

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the meetings for which they are intended. To address this, the Department underwent a self-evaluation exercise, with the assistance of OIOS and with the participation of author departments. The majority of the recommendations were incorporated into the Department’s procedures and internal analyses for achieving its goals.

The Department continued its initiatives to assist author departments with drafting. It issued a revised editorial directive to guide authors on how to submit documents in a form that optimizes electronic process-ing through the electronic document management sys-tem. It expanded the availability and visibility of the United Nations Editorial Manual online.

The efforts to work more efficiently have yielded positive results. Summary records of the General Assembly are now issued within three months of the closure of meetings, and in 2006, the Department cleared backlogs dating back to 2003. Annual surveys are conducted, and delegations participate in twice-yearly informational meetings on the quality of the language services provided.

A major challenge for the Department is the forth-coming retirements of staff, and the situation is partic-ularly acute in the language services. The Department has met with colleagues in OHRM to discuss strat-egy with regard to planning and scheduling language exams to fill the relevant rosters, and began an out-reach programme to universities.

Timeliness and cost-effectiveness have improved, evidenced by the steady increase throughout 2006 in the timely issuance of documents and the Department’s maintaining a sound budgetary position. Enhancing productivity from a full-system perspective remains a continuous process. Improving quality was and is still a high priority for the Department.

The Department successfully transformed itself from reactive to proactive conference managers. Advance planning played an increasingly important role in the timely submission and issuance of docu-ments. Common approaches to administrative poli-

cies, practices and procedures were identified and standardized.

Safety and securityThe critical task of keeping United Nations staff safe in an increasingly volatile environment is the responsibility of the DepartmentofSafetyandSecurity (DSS). For DSS, the main points of focus in its day-to-day work are effective safety and security operations at 150 duty stations worldwide and integration of all civilian secu-rity personnel throughout the United Nations Security Management System (UNSMS), including those in peacekeeping missions.

In discharging its responsibilities, DSS works along-side all relevant departments of the Secretariat, nota-bly with the Department of Peacekeeping Operations (DPKO), with which it integrates civilian security com-ponents of field operations. DSS is also an integral part of the Inter-Agency Security Management Network (IASMN) — established by the United Nations System Chief Executives Board for Coordination (CEB) — to oversee the development of the policies, procedures and practices of UNSMS. IASMN makes recommendations to CEB’s High-Level Committee on Management, which reviews these recommendations and either decides on them or recommends to CEB how they should be implemented.

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HighlightsIn 2006, the framework for accountability for theUnited Nations Security Management System was recommended for approval by the General Assembly. The framework brings all individuals included in the Security Management System into a single network encompassing all staff, including the Secretary-General, regardless of their function or duty station — thus rein-forcing the message that security concerns everyone in the UN system.

Furthermore, the Department enhanced its capac-ity in 2006 to manage emergency situations by taking stock of lessons learned and investing in physical and technological facilities to allow DSS officers to man-age complex security situations for sustained periods of time. DSS also expanded its security briefings to all staff serving in the UN system, and developed an agreed accountability framework and enhanced train-ing of security staff. To its credit, the Department’sCritical Incident Stress Management Unit has been universally praised.

Throughout the year, DSS strived to recruit quali-fied staff, bearing in mind gender and geographic con-siderations, and by the end of the year, incumbency rates had reached 86 per cent — having filled 90 per cent of posts at Headquarters and 78 per cent in the field stations.

Performance analysisWhile DSS made good progress in 2006, the main obstacle in achieving a more coherent and reliable crisis management system was the lack of adequate resources. Recruitment figures indicate significant challenges in attracting and identifying suitably qualified candidates from unrepresented and underrepresented countries. To this end, Member States are encouraged to support such initiatives as approaching associations for former military and police officers.

More tangibly, DSS has fulfilled its objectives in relation to mainstreaming planning and budgeting

processes; increasing awareness of regulations and pro-cedures through publications and extensive training; and improving compliance with Minimum Operating Security Standards (MOSS), for which the compli-ance unit became fully operational in 2006.

At the strategic level, DSS is transforming the UN security paradigm from a largely preventive approach to one of enabling operations in the field by encour-aging managers and security advisers to work together to develop innovative measures for the management of risk, while ensuring the security, safety and well-being of staff as a high priority.

Public informationThe Department of Public Information (DPI) helps to fulfil the goals of the United Nations by commu-nicating strategically the activities and concerns of the Organization to achieve the greatest public impact. To accomplish this, DPI strives to improve its client orien-tation by strengthening the working relationships with substantive areas of the Secretariat and the United Nations system. The Department develops commu-nications campaigns using the latest information and communication technologies quickly and directly to deliver information worldwide. It targets global audi-ences, particularly opinion leaders and young people, and continually works to expand its partnerships with civil society organizations.

HighlightsThe Department executed a successful communi-cations campaign for the General Assembly High-level Dialogue on Migration in September 2006. Collaborating with the Office of the President of the General Assembly, the Special Representative of the Secretary-General on Migration and Development, and the Department of Economic and Social Affairs, it produced a 10-part press kit that included newly avail-able statistics and policy analysis by the Secretariat on the subject of international migration. An analysis of


links and breaking stories on system-wide activities. As one of the most popular UN news sources, the Centre was listed on the Best-2006.com website as a top site in the “News” category.

DPI arranged on 27 January 2006 the first annual InternationalDayofCommemoration inMemoryof the Victims of the Holocaust, in a moving cere-mony in the General Assembly Hall with the theme “Remembrance and Beyond”.

The Department continued to develop co-branded media and educational partnerships with broadcasters, NGOs, UN agencies, Governments, academic institu-tions, celebrity spokespersons and the private sector. A notable success during 2006 was the “Water for Life” campaign with the MTV channel and the music artist Jay-Z about the world’s water and sanitation crisis. The campaign included a press launch with the Secretary-General; a documentary special broadcast in 179 countries, streamed on ThinkMTV.com and now available for free; a website, which was nominated for the 2007 Webby Award in the activism category; and free comprehensive educational resources. Inspired by the Water for Life documentary special, hundreds of students from several schools in New York have, for example, raised money to fund a water pump in a vil-lage school in South Africa.

the media coverage showed that the key messages on the role of the United Nations regarding migration framed by DPI were picked up in 90 per cent of the articles collected.

Approached by the Millennium Campaign Office of the United Nations Development Programme, DPI helped plan and coordinate a global campaign in sup-port of the Millennium Development Goals. One of the campaign events succeeded in mobilizing over 23 mil-lion people worldwide to “StandUpagainstPoverty” in a 24-hour period (15-16 October), setting a new Guinness World Record for the largest such event ever organized. UN information centres played a key role in mobilizing participants at schools, football and cricket matches, rallies and other public forums, who recited an anti-poverty pledge as part of the event.

Using the Internet as an expanded platform for delivering information yielded dynamic results, both in audience reach and in scope of content. United Nations Radio’s estimated potential weekly listenership dou-bled over two years to some 300 million. Working with UN agencies and peacekeeping operations across the globe, DPI was able to expand its supply of video news material, sending video material by satellite feed to some 600 broadcasters worldwide six days a week.

Innovations during 2006 included the launchofapressreleasewebpage, allowing users direct and easy access to rapidly produced summaries of intergov-ernmental meetings, press conferences and other activities at UN Headquarters. Another new product introduced in 2006 was a monthly, 26-minute television news magazine show, 21st Century, which is now being broadcast by part-ners in different parts of the world and offers an in-depth perspective on UN issues.

The Department continued to enhance its United Nations NewsCentre portal with focus pages, related

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Performance analysisA major “climactic” challenge to the success of public information efforts in 2006 was the residual nega-tive perception of the effectiveness and probity of the United Nations among some Member States that arose as a result of divisions in the Security Council over Iraq, and the findings of the oil-for-food programme inquiry. The year 2006 was a rebuilding phase, in which the Organization worked to restore confidence in the UN, with some genuine success.

DPI’s integrated approach to communications, with its focus on consultation and coordination, is yielding positive results but has not been without challenges. Experience has shown that the earlier the coordination process begins, the more effective it is. Regular con-sultations with and feedback from other departments and offices have enabled DPI to tailor its products and services more closely to the needs of the Organization.

This integrated approach has had some positive impact on how the UN story is being told. For exam-ple, a public information training workshop for peace-keeping missions organized by DPI together with the Department of Peacekeeping Operations in April 2006 emphasized the need to “get the story out” through the visual media. UNTV and the peacekeeping missions have now aligned their electronic communications so that video footage from peacekeeping missions is transformed into feature stories at Headquarters and disseminated to broadcasters worldwide by UNifeed, DPI’s satellite-based distribution service, which now distributes at least two feature stories on peacekeeping every week.

The Department continuously works to attain the right balance between developing new products and delivery methods on the one hand and strengthening traditional methods for conveying information on the other. This balance requires both human and financial resources, both of which are challenging in the face of a zero-growth budget.

The Department made a number of organiza-tional changes in response to new areas of activity and

changes in the focus of some existing programme areas. To drive forward the mandate for advocacy of out-reach programmes newly established by the General Assembly, an Advocacy Unit was created to convey key messages to target audiences, for example in con-nection with Holocaust remembrance. A new focus has also been placed on academic initiatives, resulting from the need to consolidate areas of “inreach” to the Organization by civil society actors whose ideas and activities could contribute to the evolution of UN poli-cies and programmes.

PartnershipsServing as a gateway to the UN system, the United Nations Office for Partnerships creates opportunities for public and private sector advocacy of UN goals and issues, and provides a mechanism for helping to fund the operational work of the United Nations. The Office provides technical assistance to UN departments, funds, programmes and specialized agencies on the identifica-tion, development and management of global partner-ships in support of UN goals; convenes interdepartmen-tal and inter-agency meetings to promote dialogue with relevant private sector parties on partnership strategies and policy issues; and monitors programme implemen-tation of projects and programmes funded by external grants. The Office comprises the United Nations Fund for International Partnerships (UNFIP) and the United Nations Democracy Fund, which was established in 2006. The Office and the Global Compact work closely together to reinforce each other’s mandates.

HighlightsDuring 2006, UNFIP managed working arrange-ments between UN entities and the United Nations Foundation, resulting in $191 million in investment by the Foundation and its funding partners, including the American Red Cross, the Bill and Melinda Gates Foundation and Vodafone, notably in children’s health. The Democracy Fund approved $35 million in grants


for democracy-building projects focused on civil and political rights, voters’ education, political party capacity development, integrity action in public life, and strength-ening the participation of women in political processes and forums. Through a Measles Partnership, UNFIP worked closely with the World Health Organization, UNICEF and the United Nations Foundation to expand children’s access to malaria treatments and life-saving supplies. In the area of cultural and environmen-tal protection, UNFIP worked with the United Nations Foundation and UNESCO to conclude a landmark agreement with the world’s leading online travel com-pany, Expedia, Inc., for safeguarding World Heritage sites by promoting sustainable tourism and developing tourism-based business in the communities surround-ing the sites.

Performance analysisDuring 2006, the Office expanded the engagement of UN entities with private sector actors in the fields of education, energy, health, telecommunications, water and sanitation, and world heritage. It also initiated con-tacts for UN-led advocacy in the areas of human secu-rity, including trafficking, urban poverty, gender-based violence and human rights. As the Office extends its outreach to more and more non-traditional UN part-ners, such as Citigroup, the Committee Encouraging Corporate Philanthropy, the Commonwealth Business Council, Google.org, the LTB Foundation, Microsoft, the Synergos Institute, Standard Chartered Bank, the United States Chamber of Commerce and Wal-Mart, it has highlighted a need for the UN system to develop a mechanism to exchange views and share experiences in working with corporate and private philanthropy, including consultations on corporate social responsi-bility policies. It has also highlighted a need to develop, refine and harmonize UN policies and procedures for doing business with the private sector; improve collab-oration of partnership functions within the UN system in order to achieve seamless communications between the UN and non-traditional partners; and update administrative and budgetary processes in order to

facilitate financial management and reporting require-ments of non-governmental investors. In addition, it is pursuing the development of a comprehensive database (a “Google forDevelopment”) of best practices and lessons learned in the area of partnerships, including negotiating agreements, sound financial practice, risk assessment and advocacy.

ManagementThe Department of Management (DM) provides the backbone of services for day-to-day operation of the Secretariat, with responsibilities ranging from recruit-ing, training and paying staff to procuring goods and services. Generally speaking, the Department’s mis-sion is to formulate policies and procedures and pro-vide strategic guidance, direction and support to all Secretariat entities in three broad management areas — human resources, finance and budget, and support operations and services. Such support is as diverse as information and communications systems, facilities management, travel and transportation arrangements, archives and record management, and mail opera-tions. In addition, the Department is responsible for overseeing the implementation of the Capital Master Plan, a major project to refurbish the United Nations Headquarters complex and, in the process, to comply with life safety and building codes and address technol-ogy and security needs. As of 2006, the Department is also responsible for coordinating influenza pandemic preparedness activities among all New York–based UN system entities.

HighlightsThe year 2006 was extremely important for the Department of Management, as months of research and planning by DM staff culminated in former Secretary-General Kofi Annan’s comprehensive management re -form package, entitled “Investing in the United Nations: for a stronger Organization worldwide”. Mandated by Member States at the World Summit in September



2005 and presented to the General Assembly in March 2006, this report proposed radical changes to the way in which DM conducts its business, from streamlining employment contracts to consolidating peacekeeping budget accounts. While the General Assembly did not approve all of the proposed reforms and in many cases requested additional information, it did endorse several significant proposals, as described below.

The General Assembly’s endorsement in July of two key information and communications technol-ogy (ICT) proposals paved the way for a reformation of ICT services within the Secretariat. Specifically, Member States approved the creation of a Chief Information Technology Officer (CITO) position at the Assistant Secretary-General level and agreed to the procurement of an enterprise resource planning (ERP) system to replace the myriad stand-alone and outdated ICT systems currently used throughout the Secretariat and in peacekeeping operations.

In the fall of 2006, the Department of Management organized a workshop to discuss the introduction of ERP systems in the context of an international organization. The goal of the meeting was to share lessons learned and the challenges associated with ERP implementation. Around 25 ERP project managers, experts and client managers from eight international organizations, includ-ing NATO and the World Bank, met with 60 UN offi-

cials at various levels of administrative, management and substantive respon-sibility, including 20 staff from DPKO. The sessions were of great benefit to the UN as it prepares for the implementa-tion of an ERP system. The feedback from the UN agencies and international organizations was extremely positive, with participants suggesting that this knowledge-sharing approach should be continued in the future.

The new ERP system must be fully operational by the end of 2009 in order to support another significant management reform approved by the

General Assembly in July 2006 — the adoption of International Public Sector Accounting Standards (IPSAS) by the United Nations system. These stand-ards will improve the quality and credibility of the financial reports of the Organization. Since the General Assembly’s decision, the Department of Management has formed an IPSAS adoption steering committee, has appointed an IPSAS project team leader and is recruiting a full team. This group will closely coordi-nate with the team working on ERP implementation to ensure that timetables and key milestones are inte-grated. The adoption of IPSAS is a UN system-wide effort with all UN system organizations planning to adopt these standards by 2010 and with three organi-zations (the World Health Organization, the World Food Programme and the International Civil Aviation Organization) aiming to adopt them sooner. To sup-port implementation of IPSAS throughout the sys-tem, an inter-agency-funded process is under way. This process includes the development of harmonized IPSAS-compliant accounting policies and guidance, support for system-wide communication and training, and monitoring of system-wide progress.

The Department made progress in another area of financial management with the signing in March 2006 of a FinancialManagement FrameworkAgreement with the World Bank. This agreement resolved a long-

18,607Field locations

11,115Headquarters*

2,572Regional

commissions

Fast facts

Total: 32,294 staff members as of 31 December 2006

Includes internationally and locally recruited staff, regardless of length of contract; excludes United Nations staff administered by other organizations.

Staff by location

*Includes established offices in Geneva, Vienna and Nairobi.


standing issue with regard to the treatment of external audit requirements between the two institutions. It was agreed that the UN Board of Auditors shall be solely responsible for the conduct of external audit of all UN activities, in compliance with the “single audit” principle.

Along with laying the groundwork to overhaul its ICT and accounting infrastructure, the Secretariat also made progress towards the physical overhaul of its Headquarters complex in New York City. On 22 December, the General Assembly approved a project scope for the Capital Master Plan as well as a budget of $1.88 billion and a schedule for project completion by 2014. The Member States reached these agreements after nearly seven years of planning, analysis and detailed design work by the Secretariat.

The Department also made progress in another area of reform that had been under development for many years — the global policy on staffmobility. Based on the premise that a more mobile and multi-skilled staff will better serve the Organization as its activities become more and more global, the policy sets a five-year limit on the time a staff member can spend in the same position. Through a managed reassignment programme, staff will be given the opportunity to move to different job func-tions and/or duty stations every five years. In coordina-

tion with all departments and offices, and in preparation for the managed mobility programme, DM conducted voluntary reassignments for staff at various levels. It also refined the mobility policy, developed information tech-nology infrastructure to support it, offered training and learning opportunities for staff, and conducted ongoing, awareness-building communications. This preparatory work in 2006 led to the launch of the first phase of the managed reassignment programme in May 2007.

To address weaknesses in the Secretariat’s procure-mentpoliciesandsystems that were uncovered by the oil-for-food inquiry and other investigations of 2005, the Department established the Procurement Reform Implementation Team in October 2006. This team is meant to ensure the implementation of a host of pro-curement reform initiatives, which focus on strengthen-ing internal controls, optimizing UN acquisition and procurement management in order to reduce acquisition costs, and strategically managing UN procurement. The team is also responsible for reviewing existing processes and procedures and developing new policies, guidelines, methods and tools. For example, the team developed and delivered training for procurement staff on the concept of “Best Value for Money”. In addition, the Procurement Division of DM is in the process of establishing a Vendor

Registration and Management Team to increase procurement opportunities for vendors from developing countries and coun-tries with economies in transition, a priority for Member States. The Division is also developing a com-prehensive framework to promote ethics and prevent conflicts of interest among all staff involved in procurement-related activities.

As part of a broader effort to make the Organization more transparent, the Department’s Facilities and Commercial Ser v-ices Division placed special empha-sis in 2006 on enhancing public access to UN archival material.

0

20

40

60

80

100

120

140

160

16 20 18 18 16 17 1724

19 198

17101011

142148 148

142 137

2002* 2003 2004 2005 2006

Year as of December 31*2002 data are from June 30.

Numb

er of

Mem

ber S

tates

Staff employment: representation of Member States

Unrepresented

Underrepresented

Within range

Over-represented



It launched the Archives and Records Management Section website, which, for the first time, provides the general public direct online access to UN archives. Also in the area of information management and after a two-year implementation project, in April the Secretariat was awarded the prestigious International Organization for Standardization (ISO) informa-tionsecuritycertification. Based on an independent review of its management processes and technical sys-tems, the Secretariat was formally registered as fully compliant with the industry standard.

The year 2006 also saw the establishment of a new function within the Department of Management, that of the NewYorkPandemicInfluenzaPreparednessCoordinator. Headed by an Assistant Secretary-General, this office is tasked with coordinating the plan-ning and preparedness activities of New York–based UN system entities and overseeing the production of a coherent, costed, harmonized and realistic pandemic response plan to ensure the safety and security of staff and facilities and maintain business continuity of criti-cal operations should a pandemic occur. Established in May, the office compiled a list of critical functions — and identified the associated personnel — that must continue under various emergency scenarios. It also made significant progress towards the develop-ment of a detailed plan for a system-wide response to a pandemic in New York.

Performance analysisIt is essential for the Department of Management to perform well, as its performance affects that of the entire Secretariat. Unfortunately, the Organization’s ability to respond to changing requirements is ham-pered by complex, outmoded and fragmented man-agement systems and processes. An example is in the area of human resources management. While all Secretariat staff are international civil servants, they serve under several different contractual arrange-mentswithdifferentbenefitsandconditionsofserv-ice. These arrangements evolved over time to address specific situations but no longer meet the needs of an increasingly field-based Organization. They have become cumbersome and difficult to administer and result in inequitable treatment of staff. In addition, the conditions of service offered to Secretariat staff serving in the most difficult locations are less favour-able than those offered to staff of the UN funds and programmes, who increasingly work side by side with Secretariat staff. These differences are unfair and impede the Organization’s ability to attract and retain qualified personnel.

To address these constraints, in 2006 the Department, on the basis of an unprecedented outreach to staff and managers throughout the Organization, developed a set of integrated proposals for overhauling


its current human resources framework aimed at cre-ating a more productive, flexible and results-oriented Organization. These proposals, described in former Secretary-General Annan’s report “Investing in People”, included a more proactive, targeted and speedy recruit-ment system; an integrated approach to mobility of staff, enhanced career development and support; streamlined contractual arrangements and harmonized conditions of service; and strengthened leadership and management capacity. While Member States responded positively to a number of these proposals, such as managed mobility and a revamping of the recruitment system, they have not yet given approval to some others, such as stream-lining contractual arrangements and harmonizing con-ditions of service. Without the authority to make these improvements, it will be difficult for the Organization to manage its workforce effectively.

Also hindering the Department’s performance are many labour-intensive and paper-based business processes. The absence of an integrated information technology system has contributed to the proliferation of stand-alone human resources systems, frequently supporting similar functions and processing the same information. Multiple parallel systems also work against the goal of an integrated global Secretariat. Modern information technology systems are critical to producing real-time statistics on staff demograph-ics and are essential for planning, adopting and imple-menting standards of global best practices in human resources management. Fortunately, the General Assembly approved the Secretary-General’s proposal for newhuman resources ICT tools, which will be compatible with a future ERP and will increase trans-parency, promote consistency in human resources management throughout the Organization, and facili-tate access to information and reporting.

In addition to these ongoing ICT-related reform activities, the Secretariat continued improving ICT operations through the adoption of international best practices. The concept of “anytime/anywhere” is now a reality, as all UN staff are virtually guaranteed access to e-mail, Intranet/Internet, information sources such

as the Official Document System (ODS), telecommu-nications and videoconferencing.

The upgradingofmajorICTsystems is focused on two primary objectives: enterprise resource planning and information management. This dual emphasis underpins a commitment to providing better managerial decision-support tools, financial control, human resources manage-ment and supply chain management and more detailed, accurate and timely management reporting.

Moving forward, the Secretariat will need to ensure much greater integration of its processes, workflow and knowledge management, allowing managers to integrate programme objectives, knowledge assets and budget-ary and financial data into one integrated technology-assisted process. This integration is essential if the Secretariat is to act more transparently and efficiently in managing staff and resources, and it is an absolute pre-condition for the adoption of the International Public Sector Accounting Standards by the year 2010.

In order to prepare itself for these changes and address current challenges, the Department’s Office of Programme Planning, Budget and Accounts (OPPBA)undertookanexternalreview to assess the extent to which its organizational structure, staffing, management framework and operations successfully fulfil the Office’s objectives; deliver sound financial, management and administrative control systems; and are aligned with current established best practices of structure and operational methodologies, at appro-priate resource levels. An external review was alsoundertakenofglobal treasuryoperations to review the processes, procedures, systems and resources sup-porting global treasury operations at the Secretariat and several offices away from Headquarters, and to identify options to improve the Organization’s treas-ury management capabilities.

The accepted findings from these reviews resulted in a realignment of functions and resources in order to strengthen OPPBA’s capacity to support the increased scope and level of regular budget activities, including the International Tribunals, and the unprecedented



level of special political missions. The reorganization is expected to be completed by the end of 2007.

A perennial performance objective for the Department is the improvement of geographic rep-resentation and gender balance among Secretariat staff. Despite special efforts, such as holding managers accountable to targets set in their human resources action plans, the achievement of this goal remains a sig-nificant challenge. Fluctuations in budget assessments, numbers of staff and posts, and the total number of Member States make these objectives moving targets and therefore difficult to achieve.

Staff development is another area of challenge. Investment in developing and managing talent at all levels of the Organization is inadequate, with funds for training amounting to only 1 per cent of staff costs, which is considerably less than the amount invested by other international organizations.

Another significant, ongoing challenge is the physi-cal maintenance of the Secretariat’s facilities. In 2006, the Department prevented major incidents and dis-ruptions of service in part through better risk man-agement and the implementation of proactive meas-ures, including upgrading the fire alarm and back-up emergency power systems, more frequently testing the electrical systems and better targeting preventive maintenance measures based on a statistical analysis of the frequency and types of problems that occur.

A bright spot in DM’s performance in 2006 was in the area of travel services. Through continued nego-tiations with major airlines, the Department realized savings of 25 per cent relative to the full cost of travel, despite the tightening of discounts in the travel indus-try. In addition, an online booking facility was intro-duced for official travel, which allows travellers direct Internet access to flight, train and hotel information.


Resources by strategic programme activity

Resource tables

111


Strategic programme activity

2006 expenditures (in United States dollars) 2006 posts

Regular budget

(RB)

Other assessed funds a, b

Extra- budgetary

(XB) Subtotal

Regular budget

(RB)

Other assessed funds a, c

Extra- budgetary

(XB) Subtotal


Political affairs

Policymaking organs 56 298 - - - - -

Executive direction and management 3 885 737 - - 31 - -

Prevention, control and resolution of conflicts 10 672 872 - 1 898 900 87 - -

Electoral assistance 2 032 088 - 131 700 16 - -

Security Council affairs 5 801 296 - 139 200 52 - -

Decolonization 725 856 - - 5 - -

Question of Palestine 2 734 299 - - 16 - -

Special Coordinator for the Middle East Peace Process 6 013 885 - 94 200 56 - -

Special political missions 250 220 163 - 11 760 500 - - -

Peacebuilding Support Office 492 181 - - - - -

Programme support 2 443 520 - 6 700 13 - -

Subtotal 285 078 195 - 14 031 200 299 109 395 276 - - 276

Peacekeeping operations

Executive direction and management 816 688 - 2 289 504 - - 4

Operations 2 642 871 - - 6 - -

Mission support 3 296 744 - - 19 - -

Military and civilian police advice and planning 489 859 - - 32 - -

Mine action coordination - - 42 152 829 4 - 21

United Nations Truce Supervision Organization 28 342 821 - - - - -

United Nations Military Observer Group in India and Pakistan 6 511 941 - - 248 - -

Programme support 571 176 - 253 491 71 - 2

MINURSO - 42 348 400 3 761 300 1 229 -

MINUSTAH - 479 636 600 - - 944 -

MONUC - 1 055 040 300 3 293 400 - 2 399 -

ONUB - 238 951 600 - - 666 -

UNAMSIL - 86 137 300 - - 445 -

UNDOF - 40 116 900 93 100 - 141 -

UNFICYP - 43 826 300 1 278 400 - 145 -

UNIFIL - 91 264 200 - - 394 -

UNMEE - 155 996 100 376 200 - 408 -

UNMIK - 233 753 600 1 217 800 - 2 879 -

UNMIL - 707 104 900 264 000 - 1 284 -

UNMIS - 801 124 400 - - 1 530 -

UNMISET - 1 619 600 - - 60 -

UNOCI - 382 268 900 - - 769 -

UNOMIG - 31 150 000 290 200 - 287 -

UNLB - 27 527 400 - - 162 -

Peacekeeping support account - 135 988 200 - - 780 -

Subtotal 42 672 100 4 553 854 700 55 270 224 4 651 797 024 381 13 522 27 13 930

TOTAL 327 750 295 4 553 854 700 69 301 424 4 950 906 419 657 13 522 27 14 206

112




Regular budget

(RB)


Extra- budgetary

(XB) Subtotal

Regular budget

(RB)


Extra- budget-ary (XB) Subtotal


Economic and social affairs

Policymaking organs 1 777 323 - - - - -


Economic and Social Council support and coordination 5 794 464 - 190 935 46 - -

Gender issues and advancement of women 4 948 259 - 930 337 42 - 4

Social policy and development 7 494 830 - 1 286 053 60 - -

Sustainable development 7 999 603 - 5 952 507 60 - 5

Statistics 15 480 126 - 1 248 890 123 - -

Population 6 001 093 - 267 937 45 - -

Global development trends, issues and policies 5 602 712 - - 46 - -

Public administration, finance and development 6 082 716 - 13 569 626 50 - 3

Sustainable forest management 1 166 320 - 1 261 230 6 - 6

Financing for development 2 851 079 - 283 906 21 - -

Programme support 5 368 386 - 33 194 764 28 - 17

Advanced to INSTRAW 1 042 200 - - - - -

Subtotal 74 377 309 - 58 186 185 132 563 494 542 - 35 577

Least developed countries, landlocked developing countries and small island developing States

Programme of work 2 129 643 - 750 900 15 - -

Subtotal 2 129 643 - 750 900 2 880 543 15 - - 15

Trade and development


Executive direction and management 3 185 058 - 186 185 24 - 1

Globalization, interdependence and development 8 440 396 - 4 089 064 58 - 1

Investment, enterprise and technology 11 219 137 - 4 415 694 82 - 3

International trade 11 547 838 - 8 847 571 84 - 4

Services infrastructure for development, trade efficiency and human resources development 6 806 567 - 13 114 324 50 - 7

Special needs of least developed countries, small island developing States and landlocked developing countries and the related special problems and challenges faced by transit developing countries 2 480 756 - 1 101 903 19 - 2

Programme support 10 993 088 - 53 049 73 - 18

Subtotal 54 820 100 - 31 807 790 86 627 890 390 - 36 426

International Trade Centre UNCTAD/WTO

Programme of work 13 675 217 - - - - -

Subtotal 13 675 217 - - 13 675 217 - - - -

Resource tables

113




Regular budget

(RB)


Extra- budgetary

(XB) Subtotal

Regular budget

(RB)



Economic growth and development (continued)

Environment


Executive direction and management 2 828 123 - 12 235 000 20 - 56

Environmental assessment and early warning 680 485 - 17 704 000 3 - 66

Environmental law and conventions 1 042 746 - 17 002 000 8 - 51

Policy implementation 221 647 - 25 032 000 2 - 71

Technology, industry and economics - - 32 578 000 - - 104

Regional cooperation and representation 816 452 - 14 254 000 7 - 133

Communications and public information 626 681 - 4 128 000 7 - 34

Subtotal 6 245 134 - 122 933 000 129 178 134 47 - 515 562

Human settlements



Shelter and sustainable human settlements development 3 209 229 - 28 831 448 28 - 37

Monitoring the Habitat Agenda 2 861 870 - 5 072 088 28 - 36

Regional and technical cooperation 842 578 - 90 427 317 5 - 34

Human settlements financing 182 827 - 9 508 972 1 - 12

Programme support - - 4 368 823 - - 42

Subtotal 8 799 990 - 143 182 000 151 981 990 74 - 169 243

Economic and social development in Africa



Trade, finance and economic development 3 887 265 - 731 175 43 - 3

Food security and sustainable development 3 069 195 - 612 278 27 - -

Governance and public administration 2 786 872 - 1 015 886 27 - -

Information and science and technology for development 1 804 626 - 2 734 181 25 - 8

Economic cooperation and regional development 3 629 900 - 1 335 816 35 - 4

Gender and women in development 1 913 533 - 451 281 20 - 3

Subregional activities for development 10 341 894 - 348 297 83 - -

Development planning and administration 469 486 - - - - -

Social development 147 520 - - - - -


Regional Commissions New York Office 690 972 - - 6 - -

Subtotal 47 104 235 - 11 730 937 58 835 172 526 - 92 618

114




Regular budget

(RB)


Extra- budgetary

(XB) Subtotal

Regular budget

(RB)




Economic and social development in Asia and the Pacific


Executive direction and management 2 484 634 - 31 866 24 - -

Poverty and development 3 147 873 - 1 160 243 37 - 13

Statistics 1 834 758 - 2 981 278 21 - 10

Development of Pacific island countries and territories 704 765 - 131 696 7 - -

Trade and investment 2 479 563 - 1 105 199 27 - 8

Transport and tourism 2 548 975 - 492 550 28 - 2

Environment and sustainable development 2 702 834 - 1 005 024 30 - 1

Information, communication and space technology 2 324 131 - 1 307 824 22 - 15

Social development, including persistent and emerging issues 2 720 320 - 1 131 730 32 - 7


Subtotal 37 451 858 - 10 772 331 48 224 189 429 - 85 514

Economic development in Europe


Environment 4 221 120 - 4 758 588 32 - 6

Transport 5 027 075 - 1 167 339 37 - 6

Statistics 3 823 510 - 102 772 29 - -

Economic cooperation and integration 1 831 182 - 187 041 13 - 1

Sustainable energy 1 733 277 - 1 049 349 11 - 4

Trade 3 248 147 - 66 790 24 - -

Timber and forestry 922 854 - 30 706 7 - -

Housing, land management and population 785 162 - 146 785 6 - -


Subtotal 27 700 026 - 8 158 168 35 858 194 195 - 18 213

Resource tables

115




Regular budget

(RB)


Extra- budgetary

(XB) Subtotal

Regular budget

(RB)




Economic and social development in Latin America and the Caribbean


Executive direction and management 3 452 650 - 182 341 30 - 2 Linkages with the global economy, regional integration and cooperation 2 576 674 - 335 629 26 - 1

Production and innovation 2 614 818 - 1 666 483 20 - 5

Macroeconomic policies and growth 2 753 489 - 2 035 066 34 - 3

Social development and equity 1 786 834 - 800 416 15 - -

Mainstreaming the gender perspective in regional development 644 132 - 162 341 5 - -

Population and development 1 386 789 - 872 057 15 - 1

Planning of public administration 1 121 990 - 1 566 125 11 - 12

Sustainable development and human settlements 1 588 589 - 231 814 13 - 1

Natural resources and infrastructure 1 394 126 - 294 836 14 - 1

Statistics and economic projections 2 291 693 - 375 440 25 - -

Subregional activities in Mexico and Central America 3 461 821 - 1 039 471 41 - 1

Subregional activities in the Caribbean 2 334 549 - 39 328 34 - -


Subtotal 45 411 253 - 10 565 986 55 977 239 476 - 37 513

Economic and social development in Western Asia



Integrated management of natural resources for sustainable development 2 690 867 - 167 190 25 - -

Integrated social policies 2 270 598 - 2 606 161 20 - -

Economic development and integration 4 309 924 - 246 101 40 - -

Information and communication technology for regional integration 1 531 520 - 1 779 514 13 - -

Statistics for evidence-based policymaking 1 314 845 - 224 268 13 - -

Advancement of women 893 129 - - 9 - -

Conflict mitigation and development - - - - - -

Programme support 14 314 436 - 255 429 119 - -

Subtotal 28 808 156 - 5 337 599 34 145 755 255 - - 255

Peaceful uses of outer space

Programme of work 2 874 047 - 299 517 20 - -

Subtotal 2 874 047 - 299 517 3 173 564 20 - - 20

Regular programme of technical cooperation

Regular programme of technical cooperation 18 910 554 - - - - -

Subtotal 18 910 554 - - 18 910 554 - - - -

Development account

Development account 1 660 000 - - - - -

Subtotal 1 660 000 - - 1 660 000 - - - -

TOTAL 369 967 522 - 403 724 413 773 691 935 2 969 - 987 3 956

116




Regular budget

(RB)


Extra- budgetary

(XB) Subtotal

Regular budget

(RB)




United Nations support for the New Partnership for Africa’s Development

Coordination of global advocacy of and support for the New Partnership for Africa’s Development 2 729 689 - 212 000 21 - -

Regional coordination of and support for the New Partnership for Africa’s Development 426 056 - - 4 - -

Public information and awareness activities in support of the New Partnership for Africa’s Development 900 070 - 74 200 7 - -

TOTAL 4 055 815 - 286 200 4 342 015 32 - - 32


Human rights



Right to development, research and analysis 5 357 634 - 8 768 720 47 - 29

Supporting human rights bodies and organs 5 394 392 - 10 908 867 51 - 18

Advisory services, fact-finding and field activities 7 870 267 - 47 018 389 82 - 430

Support for human rights thematic fact-finding procedures 3 644 290 - 3 260 667 24 - 20


Committee on Missing Persons in Cyprus 290 899 - - - - -

TOTAL 33 542 503 - 78 804 498 112 347 001 270 - 540 810




Policy and analysis 798 073 - 3 336 829 4 - 14

Coordination of humanitarian action and emergency response 3 088 326 - 108 905 854 24 - 696

Natural disaster reduction - - 8 906 631 - - 61

Emergency support services 1 897 748 - 4 467 228 10 - 19

Humanitarian emergency information and advocacy 1 408 668 - 18 813 354 10 - 88


TOTAL 11 434 629 - 150 874 691 162 309 320 66 - 982 1 048

Resource tables

117




Regular budget

(RB)


Extra- budgetary

(XB) Subtotal

Regular budget

(RB)




International Court of Justice

International Court of Justice 18 059 188 - - 100 - -

Subtotal 18 059 188 - - 18 059 188 100 - - 100

Legal affairs


Overall direction, management and coordination of legal advice and services to the United Nations as a whole 2 265 441 - 329 246 15 - 3

General legal services provided to United Nations organs and programmes 2 770 685 - 942 911 21 - 7

Progressive development and codification of international law 2 859 130 - - 21 - -

Law of the sea and ocean affairs 3 645 104 - 253 484 28 - -

Progressive harmonization and unification of the law of international trade 2 730 765 - 137 268 21 - -

Custody, registration and publication of treaties 3 431 306 - - 29 - -

Programme support 942 640 - - 7 - -

Subtotal 19 939 122 - 1 662 909 21 602 031 142 - 10 152

International Tribunal for the Former Yugoslavia

The Chambers - 6 172 498 - - - -

Office of the Prosecutor - 40 231 031 183 387 - 325 1

The Registry - 97 419 388 1 808 854 - 665 28

Subtotal - 143 822 917 1 992 241 145 815 158 - 990 29 1 019

International Criminal Tribunal for Rwanda

The Chambers - 4 355 014 - - - -

Office of the Prosecutor - 29 740 939 109 036 - 225 -

The Registry - 89 148 814 835 418 - 817 -

Subtotal - 123 244 767 944 454 124 189 221 - 1 042 - 1 042

TOTAL 37 998 310 267 067 684 4 599 604 309 665 598 242 2 032 39 2 313

118




Regular budget

(RB)


Extra- budgetary

(XB) Subtotal

Regular budget

(RB)



Disarmament

Disarmament



Multilateral negotiations on arms limitation and disarmament 2 126 263 - 427 500 8 - -

Weapons of mass destruction 1 252 169 - - 8 - -

Conventional arms 1 482 225 - 753 900 10 - -

Monitoring, database and information 1 268 123 - 75 900 8 - -

Regional disarmament 1 314 051 - 1 807 600 9 - -


TOTAL 9 488 677 - 3 064 900 12 553 577 55 - - 55


International drug control, crime prevention and criminal justice


Executive direction and management 284 845 - 546 479 1 - 5

Research, analysis and advocacy 2 959 327 - 9 409 606 22 - 54

Services for policymaking and treaty adherence 7 659 627 - 7 795 572 64 - 44

Technical assistance and advice 3 017 730 - 86 598 400 22 - 257

Programme support 456 999 - 3 755 863 - - 28

TOTAL 14 930 981 - 108 105 920 123 036 901 109 - 388 497

Refugees

Protection of and assistance to refugees

Protection of and assistance to refugees 30 720 504 - 1 069 268 413 2 - 5 465

Subtotal 30 720 504 - 1 069 268 413 1 099 988 917 2 - 5 465 5 467

Palestine refugees

Programme of work 19 834 764 - 584 952 649 113 - 46

Subtotal 19 834 764 - 584 952 649 604 787 413 113 - 46 159

TOTAL 50 555 268 - 1 654 221 062 1 704 776 330 115 - 5 511 5 626

Resource tables

119




Regular budget

(RB)


Extra- budgetary

(XB) Subtotal

Regular budget

(RB)




Overall policymaking, direction and coordination

Policymaking organs 14 707 557 - 9 603 400 21 - 1

Secretary-General 1 286 589 - - - - -


Office of the Ombudsman 743 620 - - 7 - -

Ethics Office 832 644 - - 6 - -

Subtotal 37 509 852 - 14 884 900 52 394 752 165 - 4 169

General Assembly and Economic and Social Council affairs and conference management

General Asssembly and Economic and Social Council affairs and conference management 278 670 725 - 11 239 523 1 899 - 103

Subtotal 278 670 725 - 11 239 523 289 910 248 1 899 - 103 2 002

Public information


Strategic communication services 29 250 749 - 834 600 354 - -

News services 30 773 212 - 67 000 199 - -

Library services 11 723 949 - 16 700 109 - -

Outreach services 5 729 362 - 1 834 000 52 - 10

Special conferences 232 471 - - - - -

Programme support 3 388 305 - - 22 - -

Subtotal 82 541 284 - 2 752 300 85 293 584 748 - 10 758

Management and support services

Office of the Under-Secretary-General for Management 9 442 536 - 336 751 50 - 3

Office of Programme Planning, Budget and Accounts 15 276 242 - 8 359 003 132 - 122

Office of Human Resources Management 32 110 437 - 5 887 629 169 - 44

Office of Central Support Services 109 976 199 - 40 973 452 - 37

United Nations Office at Geneva 49 044 699 - 11 853 400 301 - 94

United Nations Office at Vienna 16 842 268 - 4 363 117 91 - 29

United Nations Office at Nairobi 10 559 014 - 7 509 863 98 - 206

Subtotal 243 251 395 - 38 350 736 281 602 131 1 293 - 535 1 828

Internal oversight

Executive direction and management 820 257 - - 6 - -

Internal audit 5 037 353 - 6 471 615 41 - 37

Monitoring, evaluation and consulting 2 603 491 - - 18 - -

Investigations 3 499 342 - 603 200 20 - 3


Subtotal 12 677 209 - 7 074 815 19 752 024 91 - 40 131

120




Regular budget

(RB)


Extra- budgetary

(XB) Subtotal

Regular budget

(RB)



Organizational support (continued)

Jointly financed administrative activities

International Civil Service Commission 3 016 536 - - - - -

Joint Inspection Unit 1 663 394 - - - - -

United Nations System Chief Executives Board for Coordination 869 868 - - - - -

Subtotal 5 549 798 - - 5 549 798 - - - -

Special expenses

Special expenses 48 975 131 - 2 970 999 - - -

Subtotal 48 975 131 - 2 970 999 51 946 130 - - - -

Construction, alteration, improvement and major maintenance

Construction, alteration, improvement and major maintenance 29 903 949 - - - - -

Subtotal 29 903 949 - - 29 903 949 - - - -

Capital Master Plan

Capital Master Plan - 36 526 184 - - - -

Subtotal - 36 526 184 - 36 526 184 - - - -

Staff assessment

Staff assessment 207 618 632 - - - - -

Subtotal 207 618 632 - - 207 618 632 - - - -

Safety and security

Safety and security 85 158 567 - 4 567 330 936 - 40

Subtotal 85 158 567 - 4 567 330 89 725 897 936 - 40 976

TOTAL 1 031 856 542 36 526 184 81 840 603 1 150 223 329 5 132 - 732 5 864

GRAND TOTAL 1 891 580 542 4 857 448 568 2 554 823 314 9 303 852 424 9 647 15 554 9 206 34 407

a Comprising funds for peacekeeping, the Capital Master Plan and the International Tribunals.

b Reflects expenditures in peacekeeping-related trust funds, inclusive of programme support costs and budgeted voluntary contributions-in-kind in peacekeeping missions.

c For peacekeeping-related posts, this column reflects actual average incumbency of international staff, national staff and temporary positions. It excludes United Nations volunteers, observers, contingents, United Nations police and government-provided personnel.

Financial section

Message from the Controller ■

Financial analysis ■

Financial statements ■

Board of Auditors: ■

Executive summary of report on peacekeeping

Financial section


Message from Warren Sach, Assistant Secretary-General, ControllerThe Organization continued its pattern of increased activities in the first year of the 2006-2007 biennium. When compared to the first year of the 2004-2005 biennium, total expenditures for the regular budget for the year 2006 increased by 11.1 per cent. There was also an increase of 6.4 per cent in expenditures for technical cooperation activities and an increase of 69.8 per cent in expenditures for general trust funds compared to the first year of the 2004-2005 biennium.

In 2006, the Organization presented a comprehensive reform package to strengthen the United Nations. While many improvements were realized during the year, the Organization continues to face many challenges in the areas of budget and finance. At the end of 2006, there were $373 million in outstanding assessments for the regular budget, $1.8 billion for peacekeeping operations and $51 million for the two International Tribunals. At year’s end, the cash available for regular budget activities was equivalent to only five weeks’ worth of expenditures. While 139 Member States had fully paid their regular budget assessments, only 18 Member States had fully paid their peacekeeping assessments. At the end of 2006, troop contributors were owed $1 billion. The financial health of the Organization depends on Member States’ meeting their financial obliga-tions in full and on time.

In December 2006, the General Assembly approved a $1.877 billion budget for the Capital Master Plan. The cost of the project is to be funded from assessments of Member States. In addition to the costs of the project, the General Assembly approved the establishment of a working capital reserve of $45 million.

Peacekeeping activities continued to grow in 2006. Budgets for 13 operations, the support account and the United Nations Logistics Base in Brindisi were approved by the General Assembly for the period 1 July 2006 to 30 June 2007. The total approved appropriation was $5.4 billion, which represented an increase of 8 per cent compared to the previous year figure of $5 billion.

Warren Sach Assistant Secretary-General Controller


Key components as at 31 December (actual) (In millions of United States dollars)

2005 2006

Assessments Regular budget 1 828 1 755

Tribunals 295 269

Peacekeeping 4 738 3 450

Capital Master Plan 18 109

Unpaid assessments Regular budget 333 361

Tribunals 25 51

Peacekeeping 2 919 1 890


Cash on hand* Regular budget* 123 150

Tribunals 55 32

Peacekeeping* 1 506 1 760


Debt owed to Member States Peacekeeping 695 1 010

* Not including reserve accounts.


Financial section

Introduction

This section provides a succinct analysis of the results as reported in the attached set of financial statements. As such, the analysis pertains to increases or decreases in 2006 (the first year of the current 2006-2007 bien-nium), as compared with 2004 (the first year of the pre-vious 2004-2005 biennium), except for peacekeeping operations and the Office of the United Nations High Commissioner for Refugees, which are on a 12-month cycle. Comments are in the same sequence as the finan-cial statements themselves.

United NationsStatements I and II are overall summaries for presenta-tion purposes only, bearing in mind that the resources in underlying funds cannot be co-mingled.

Statement IV shows regular budget expenditures by part and by section for 2006, compared to the approved appropriations for the 2006-2007 biennium. Overall spending in 2006 of $1,904 million was 45.6 per cent of the total appropriation of $4,174 mil-lion for 2006-2007. Detailed explanations of variances are included in the performance reports submitted to the General Assembly.

Statement V for the regular budget shows that the United Nations had accrued, but not funded, liabili-ties of $2,308 million, comprising $2,073 million for after-service health insurance (ASHI), $134 million for annual leave and $101 million for repatriation ben-efits. As a result of these liabilities, which pertain to all funds including peacekeeping operations, the overall fund balance of the United Nations General Fund and related funds had a deficit of $1,996 million at the end of 2006.

Statement VI for technical cooperation activities shows increased income of 10 per cent in 2006 as

compared to 2004, and increased expenditures of 6 per cent, resulting in higher closing fund balances. This is mainly a timing difference, as the funds received are expected to be utilized by projects in the 2006-2007 biennium.

Statement VII for general trust funds shows that donor contributions more than doubled in 2006 as compared to 2004, reaching $814 million. Donors provided increased support spread across the spectrum of the Organization’s activities. In absolute terms, the largest contributions continued to be for human rights and humanitarian funds, emergency relief opera-tions and the United Nations Fund for International Partnerships.

Statement VIII accounts for the Tax Equalization Fund, which was established by the General Assembly to equalize the net pay of staff members irrespective of their national tax obligations. Applying this princi-ple, credits are given to Member States, and the United States is charged for taxes it levies on UN staff sala-ries. At the end of 2005, the fund balance in favour of the United States was $97 million, which is shown as accounts payable in the 2006 statements.

Statement IX shows expenditures of $44 mil-lion in 2006, compared to $51 million in 2004. Expenditures were mainly for the Capital Master Plan ($37 million).

Statement X summarizes activities for all other special funds, including funds held in trust for staff health plans and compensation awards, and special accounts for programme support costs. Funds held in trust are managed conservatively to retain reserves, which totalled $362 million at the end of 2006. Programme support accounts are utilized in support of extra budgetary activities, and related reserves rose to $166 million at the end of 2006.

Financial analysis


Peacekeeping operationsPeacekeeping operations follow a 12-month cycle, from 1 July to 30 June of the following year.

Statement I shows income and expenditures for combined peacekeeping operations. Overall expend-itures rose by 12 per cent from $4,074 million in 2005 to $4,583 million in 2006. The net increase of $509 mil-lion was mainly attributable to the full-year impact of UNMIS (Sudan) and the expansions in MINUSTAH (Haiti), MONUC (Democratic Republic of the Congo) and UNOCI (Côte d’Ivoire), which were offset by the closures of UNAMSIL (Sierra Leone) and UNMISET (Timor-Leste), and scaled-down operations in ONUB (Burundi), UNMEE (Ethiopia/Eritrea), UNMIK (Kosovo) and UNMIL (Liberia). The main changes in expenditures of missions are shown in the table below, together with total 2006 expenditures.

Mission expenditures (In millions of United States dollars)

Increase (decrease) in 2006

Total 2006

MONUC a 137 1 078

UNMIS b 582 801

UNMIL c (39) 745

MINUSTAH a 127 504

UNOCI a 55 402

ONUB c (50) 254

UNMIK c (62) 246

UNMEE c (26) 165

UNAMSIL d (183) 92

UNMISET d (80) 2

Subtotal 461 4 289

All others — net 48 294

Total 509 4 583a Expansion.

b UNMIS started in fiscal 2005; fiscal 2006 expenditures reflect a full year of operations.

c Scaled-down operations.

d Closure.

The details of fiscal 2006 expenditures by mission and a comparison to its appropriation are shown in Schedule 1.1 of the financial statements.

Statement II shows assets and liabilities for com-bined peacekeeping operations. Cash in the active mis-sions continued to be sufficient for operating require-ments and for timely reimbursement to countries that had provided troops or formed police units, except for UNMIK (Kosovo), MINURSO (Western Sahara) and UNOMIG (Georgia). In addition, cash shortages continued for a number of closed missions, including UNOSOM (Somalia), UNTAC (Cambodia) and MINURCA (Central African Republic), as well as the two earliest peacekeeping missions — UNEF (Egypt) and ONUC (Congo).

International Criminal Tribunal for RwandaStatement I shows expenditures that were 13 per cent higher than in 2004, mainly as a result of higher staff-ing costs.

Statement II shows that cash on hand at the end of 2006 was barely sufficient for day-to-day operations. In addition, the Tribunal had accrued, but not funded, liabilities of $44 million with respect to ASHI, annual leave and repatriation benefits, which resulted in a neg-ative fund balance of $20 million at the end of 2006.

International Tribunal for the Former Yugoslavia

Statement I shows that expenditures were 9 per cent higher in 2006 than in 2004, with increases mainly in staff costs and for contractual services.

Statement II shows an improved cash position. However, the Tribunal had accrued, but not funded, liabilities of $27 million with respect to ASHI, annual leave and repatriation benefits at the end of 2006.

United Nations Office on Drugs and Crime

In addition to the expenditures accounted for under the United Nations Office on Drugs and Crime, support for the programme is provided through the regular budget of the United Nations, which incurred expend-itures of $15 million in 2006 and also in 2004.


Financial section

Statement I shows total voluntary contributions increased by 6 per cent, to $107 million in 2006 from $101 million in 2004, with marked differences in contri-butions for special and general purpose funds. Increases continued for special purpose funds, and programme expenditures also rose, reflecting higher delivery. On the other hand, contributions for general purpose funds remained relatively flat, requiring a number of actions to contain costs and arrest the decline in the liquidity position. At the end of 2006, closing reserves for all funds showed an increase to $163 million compared to $119 million at the end of 2004, after reflecting an adjustment of $18 million to record the accrued, but not funded, liabilities for ASHI, annual leave and repatria-tion benefits. Total cash on hand was $150 million at the end of 2006.

United Nations Environment Programme

In addition to the expenditures accounted for under the United Nations Environment Programme, support for the environment programme is provided through the regular budget of the United Nations, which incurred expenditures of $6 million in 2006 compared to $5 mil-lion in 2004.

Statement I shows that overall income grew by 6 per cent to $251 million in 2006, compared to $237 million in 2004. On the other hand, expenditures rose by 14 per cent to $253 million, reflecting increased utilization of available funds. The overall liquidity position remained satisfactory, with total cash on hand at the end of 2006 increasing slightly to $228 million.

UN-Habitat

In addition to the expenditures accounted for under the United Nations Human Settlements Programme, support for the human settlements programme is pro-vided through the regular budget of the United Nations, which incurred expenditures of $9 million in 2006 as compared to $7 million in 2004.

Statement I shows that during 2006, the Organi-za tion maintained its rising trend in voluntary con-

tributions. The total of voluntary contributions, including funds received from UN agencies under inter- organizational arrangements, reached an all-time high of $126 million in 2006 as compared to $96 mil-lion in 2004. Of the total income received, $116 mil-lion was special purpose funds, and only $10 million was general purpose funds. The continuing imbalance between the two remains a major challenge for UN-Habitat that is being addressed as part of its longer-term resource mobilization and communications strategy. Expenditures in 2006 more than doubled to $134 million, compared to $61 million in 2004, and closing reserves at the end of 2006 totalled $86 mil-lion, as compared to $71 million in 2004. The overall liquidity position remained satisfactory, with total cash on hand of $128 million at the end of 2006.

United Nations Relief and Works Agency for Palestine Refugees in the Near East

Statement 1 shows total income received under UNRWA’s regular budget funds for 2006 was $385 million, including $20 million from the regular budget of the United Nations. Expenditures totalled $418 million, and prior-year adjustments included $169 million in respect of accumulated termination benefits that would be payable in the event of cessa-tion of operations. As a result, the reserves of the regu-lar budget had a deficit of $140 million at the end of 2006. Non- regular budget funds had total income of $222 million and expenditures of $182 million, and (taking into account reserves brought forward) ended 2006 with closing reserves of $143 million. The over-all liquidity position continued to be satisfactory, with total cash on hand of $201 million at the end of 2006.

Office of the United Nations High Commissioner for RefugeesThe financial statements of UNHCR are prepared on a 12-month calendar year basis.

Statement I shows that during 2006, overall volun-tary contributions decreased slightly, by 2 per cent, to


$1,111 million, including $31 million from the regular budget of the United Nations and $25 million from the Central Emergency Response Fund of the United Nations. However, a weakening United States dol-lar resulted in currency gains of $24 million in 2006 compared to losses of $36 million in the previous year. As income was short of funds originally programmed, spending restrictions were instituted during 2006, and total expenditures came in at $1,104 million. Closing reserves of $195 million were up from $133 million at the end of 2005. However, UNHCR has not recog-nized, or funded, accrued liabilities for ASHI, annual leave and repatriation benefits, which were estimated at $447 million at the end of 2006. Cash on hand at the end of 2006 increased to $225 million from $133 mil-lion at the end of the previous year.

International Trade CentreApproximately half of the Centre’s activities are financed by voluntary contributions and the other half by assessments on the United Nations and WTO in equal shares.

Compared to 2004, overall income in 2006 increased by 12 per cent, to $64 million. Expenditures also increased by 14 per cent, as the Centre launched a number of new programmes, established alliances with new partners and refined its products, services and business processes. In 2006 the Centre had accrued, but not funded, liabilities for ASHI, annual leave and repatriation benefits totalling $49 million, resulting in an overall deficit of $8 million in closing reserves and fund balances. The liquidity position of ITC remained satisfactory, with cash on hand of $44 million at the

end of 2006 compared to $31 million at the end of 2004.

United Nations University

Statement I shows total income during 2006 of $65 million, compared to $50 million in 2004. Included in the 2006 figure of $65 million is interest income of $10 million, gains on sale of securities of $17 million, and exchange gains of $12 million, compared to inter-est income of $9 million, gains on sale of securities of $4 million, and exchange gains of $17 million in 2004. Expenditures declined to $38 million compared to $41 million in 2004, and closing reserves at the end of 2006 were $324 million, including $307 million for the Endowment Fund. Cash and investments in the Endowment Fund at the end of 2006 totalled $302 mil-lion, which had a market value of $325 million. This was a small increase over the end of 2004 levels when the Endowment Fund had cash and investments of $286 million with a market value of $315 million.

United Nations Institute for Training and Research

Statement I shows that total income for 2006 decreased by 7 per cent, to $12 million, due to decreases in income for special purpose funds. However, expenditures increased to $13 million, as some projects had been funded in prior years. By the end of 2006, the clos-ing reserves had declined to $9 million, after reflecting an adjustment of $2 million to record the accrued but not funded liabilities for ASHI, annual leave and repat-riation benefits. The liquidity position of UNITAR remained satisfactory, with cash on hand of $13 million at the end of 2006.

The following financial statements are verbatim extracts taken from the complete set of financial statements provided separately to the General Assembly. The complete set of statements and accompanying notes are too lengthy to reproduce in this report.

Note to the reader:

Financial section

129

UN

: St

ate

men

t I

United

Nations

All

Funds

Sum

mary

a, b

St

atem

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f inc

ome

and

expe

nditu

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and

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per

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coo

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G

ener

al

trust

fund

s (S

t. VI

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E

qual

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d (S

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Cap

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struc

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in p

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sp

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fund

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12

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2 3

82

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25

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65

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65

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.

The

acco

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fina

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ents.

130

UN

: St

ate

men

t II

United

Nations

All

Funds

Sum

mary

a, b

St

atem

ent o

f ass

ets,

liab

ilitie

s an

d re

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)

Gen

eral

Fun

d a

nd re

late

d fu

nds

(St.

V)

Tec

hnic

al

coo

pera

tion

act

iviti

es

(St.

VI)

Gen

eral

tr

ust f

unds

(S

t. VI

I)

Tax

E

qual

izat

ion

Fun

d (S

t. VI

II)

Cap

ital A

sset

s &

Con

struc

tion

in p

rogr

ess

(St.

IX)

Oth

er

spe

cial

fun

ds

(St.

X)

All

fund

s e

limin

atio

ns

Tot

al

2006

Tot

al

200

4 c

Ass

ets

Cas

h an

d te

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its 5

5 45

6 4

157

3

5 06

4 -

135

3

2 62

0 -

127

432

3

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46

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vestm

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- -

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600

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3 6

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3 1

30

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3 69

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2 0

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esse

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1

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f 9

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78

319

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80

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Land

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37 8

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437

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- -

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133

133

-

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33 1

33

74

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l ass

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97 1

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Liabili

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tribu

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rece

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in a

dvan

ce 7

944

-

- -

5 1

86

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13

130

2 9

06

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ligat

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1

42 0

40

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142

103

348

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453

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Inte

r-fun

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lanc

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667

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1

56 3

13

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- 9

681

3

904

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521

f 5

5 88

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yabl

e 1

17 6

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1 7

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s 7

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End-

of-se

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st-re

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307

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g -

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l lia

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660 4

26

Res

erve

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und b

ala

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rves

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8 74

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s fu

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214

306

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Wor

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100

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00 0

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land

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17 6

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417

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Aut

horiz

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13

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97 1

14

a Se

e no

tes

2 an

d 3.

b Th

e pe

acek

eepi

ng a

ccou

nts,

the

Uni

ted

Nat

ions

Iraq

esc

row

acc

ount

s an

d ac

coun

ts fo

r the

Uni

ted

Nat

ions

Com

pens

atio

n C

omm

issi

on a

nd th

e In

tern

atio

nal T

ribun

als

for t

he F

orm

er Y

ugos

lavi

a an

d Rw

anda

ha

ve b

een

omitt

ed a

s th

ey a

re re

porte

d in

sep

arat

e se

ts of

fina

ncia

l sta

tem

ents.

c C

ompa

rativ

e fig

ures

hav

e be

en re

state

d to

con

form

to c

urre

nt p

rese

ntat

ion.

d Re

pres

ents

inve

stmen

ts in

bon

ds, t

reas

ury

bills

and

com

mer

cial

pap

ers.

e Se

e no

te 2

m (i

ii).

f In

clud

es in

terfu

nd lo

ans

and

bala

nces

rela

ting

to p

eace

keep

ing

activ

ities

, the

Uni

ted

Nat

ions

Iraq

esc

row

acc

ount

s, th

e U

nite

d N

atio

ns C

ompe

nsat

ion

Com

mis

sion

, and

the

Inte

rnat

iona

l Trib

unal

s fo

r the

Fo

rmer

Yug

osla

via

and

Rwan

da w

hich

hav

e no

t bee

n el

imin

ated

.g

Repr

esen

ts ac

crue

d lia

bilit

ies

for a

fter-s

ervi

ce h

ealth

insu

ranc

e (A

SHI)

costs

of $

2,07

2,82

9,00

0 as

of 3

1 D

ecem

ber 2

005,

and

for u

nuse

d va

catio

n da

ys o

f $13

3,59

1,21

8 an

d re

patri

atio

n be

nefit

s of

$1

01,0

93,8

17 a

s of

31

Dec

embe

r 200

6. T

hese

wer

e pr

evio

usly

dis

clos

ed in

the

note

s, a

nd a

re n

ow re

flect

ed in

the

finan

cial

sta

tem

ents

as li

abili

ties.

See

not

e 11

.

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

fina

ncia

l sta

tem

ents.

Financial section

131

UN

: St

ate

men

t IV

United

Nations

Gen

eral F

und

Stat

emen

t of a

ppro

pria

tions

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

App

ropr

iatio

nsEx

pend

iture

App

ropr

iatio

n pa

rt an

d se

ctio

n

Res.

60/

247,

60/2

81, 6

0/28

3 a

nd 6

1/25

3D

isbu

rsem

ents

Unl

iqui

date

d

oblig

atio

nsTo

tal

exp

endi

ture

U

nenc

umbe

red

ba

lanc

e

Part

I.

Ove

rall

polic

y-m

ak

ing,

dir

ection a

nd c

oord

ination

01O

vera

ll po

licy-

mak

ing,

dire

ctio

n an

d co

ordi

natio

n 7

7 00

4 3

3 01

5 4

495

3

7 51

0 3

9 49

4 02

Gen

eral

Ass

embl

y af

fairs

and

con

fere

nce

serv

ices

602

512

2

72 6

34

6 0

37

278

671

3

23 8

41

Tota

l 6

79

51

6

30

5 6

49

1

0 5

32

316 1

81

363 3

35

Part

II.

Polit

ical a

ffair

s03

Polit

ical

affa

irs 6

86 8

71

244

727

4

0 35

1 2

85 0

78

401

793

04

Dis

arm

amen

t 2

0 47

1 9

113

3

76

9 4

89

10

982

05Pe

acek

eepi

ng o

pera

tions

96

671

39

827

2 8

45

42

672

53

999

06Pe

acef

ul u

ses

of o

uter

spa

ce 6

176

2

814

6

0 2

874

3

302

Tota

l 8

10

18

9

29

6 4

81

4

3 6

32

340 1

13

470 0

76

Part

III.

In

tern

ational j

ust

ice

and la

w07

Inte

rnat

iona

l Cou

rt of

Justi

ce 3

6 78

5 1

7 94

8 1

11

18

059

18

726

08Le

gal a

ffairs

42

153

19

274

665

1

9 93

9 2

2 21

4

Tota

l 7

8 9

38

3

7 2

22

7

76

37 9

98

40 9

40

Part

IV.

In

tern

ational c

ooper

ation f

or

dev

elopm

ent

09Ec

onom

ic a

nd s

ocia

l affa

irs 1

57 4

74

72

658

1 7

19

74

377

83

097

10O

ffice

of t

he H

igh

Repr

esen

tativ

e fo

r LD

Cs,

LLD

Cs

and

SID

S 5

053

2

081

4

9 2

130

2

923

11

Uni

ted

Nat

ions

sup

port

for t

he N

ew P

artn

ersh

ip fo

r Afri

ca’s

Dev

elop

men

t 1

0 80

3 3

873

1

83

4 0

56

6 7

47

12Tr

ade

and

deve

lopm

ent

117

153

5

3 78

5 1

035

5

4 82

0 6

2 33

3 13

Inte

rnat

iona

l Tra

de C

entre

UN

CTA

D/W

TO 2

6 90

2 1

3 67

5 -

13

675

13

227

14En

viro

nmen

t 1

2 28

7 6

167

7

8 6

245

6

042

15

Hum

an s

ettle

men

ts 1

8 28

9 8

590

2

10

8 8

00

9 4

89

16In

tern

atio

nal d

rug

cont

rol,

crim

e pr

even

tion

and

crim

inal

justi

ce 3

2 83

8 1

4 61

0 3

21

14

931

17

907

Tota

l 3

80

79

9

17

5 4

39

3

595

179 0

34

201 7

65

Part

V.

Reg

ional c

ooper

ation f

or

dev

elopm

ent

17Ec

onom

ic a

nd s

ocia

l dev

elop

men

t in

Afri

ca 1

07 4

04

43

352

3 7

52

47

104

60

300

18Ec

onom

ic a

nd s

ocia

l dev

elop

men

t in

Asi

a an

d th

e Pa

cific

74

665

36

398

1 0

54

37

452

37

213

19Ec

onom

ic d

evel

opm

ent i

n Eu

rope

57

110

27

187

513

2

7 70

0 2

9 41

0 20

Econ

omic

and

soc

ial d

evel

opm

ent i

n La

tin A

mer

ica

and

the

Car

ibbe

an 9

7 18

0 4

4 35

8 1

053

4

5 41

1 5

1 76

9 21

Econ

omic

and

soc

ial d

evel

opm

ent i

n W

este

rn A

sia

56

325

25

782

3 0

26

28

808

27

517

22Re

gula

r pro

gram

me

of te

chni

cal c

oope

ratio

n 4

6 88

1 1

6 72

7 2

184

1

8 91

1 2

7 97

0

Tota

l 4

39

56

5

19

3 8

04

1

1 5

82

205 3

86

234 1

79

Part

VI.

Hum

an r

ights

and h

um

anitari

an a

ffair

s23

Hum

an ri

ghts

88

009

31

072

2 4

70

33

542

54

467

24Pr

otec

tion

of a

nd a

ssis

tanc

e to

refu

gees

67

031

30

721

- 3

0 72

1 3

6 31

0 25

Pale

stine

refu

gees

36

731

19

835

- 1

9 83

5 1

6 89

6 26

Hum

anita

rian

assi

stanc

e 2

6 56

6 1

0 64

6 7

89

11

435

15

131

Tota

l 2

18

33

7

92

27

4

3 2

59

95 5

33

122 8

04

132

UN

: St

ate

men

t IV

United

Nations

Gen

eral F

und

Stat

emen

t of a

ppro

pria

tions

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

App

ropr

iatio

nsEx

pend

iture

App

ropr

iatio

n pa

rt an

d se

ctio

n

Res.

60/

247,

60/2

81, 6

0/28

3 a

nd 6

1/25

3D

isbu

rsem

ents

Unl

iqui

date

d

oblig

atio

nsTo

tal

exp

endi

ture

U

nenc

umbe

red

ba

lanc

e

Part

VII.

Public

info

rmation

27Pu

blic

info

rmat

ion

178

852

8

0 65

2 1

889

8

2 54

1 9

6 31

1

Tota

l 1

78

85

2

80

65

2

1 8

89

82 5

41

96 3

11

Part

VIII

. Com

mon s

upport

ser

vice

s28

AO

ffice

of t

he U

nder

-Sec

reta

ry-G

ener

al fo

r Man

agem

ent

19

959

9 1

07

336

9

443

1

0 51

6 28

BO

ffice

of P

rogr

amm

e Pl

anni

ng, B

udge

t and

Acc

ount

s 3

2 91

8 1

5 11

6 1

60

15

276

17

642

28C

Offi

ce o

f Hum

an R

esou

rces

Man

agem

ent

67

557

29

965

2 1

45

32

110

35

447

28D

Offi

ce o

f Cen

tral S

uppo

rt Se

rvic

es 2

45 4

09

104

307

5

669

1

09 9

76

135

433

28

EA

dmin

istra

tion,

Gen

eva

107

193

4

4 75

5 4

290

4

9 04

5 5

8 14

8 28

FA

dmin

istra

tion,

Vie

nna

35

297

15

842

1 0

00

16

842

18

455

28G

Adm

inis

tratio

n, N

airo

bi 1

9 64

5 1

0 35

3 2

06

10

559

9 0

86

Tota

l 5

27

97

8

22

9 4

45

1

3 8

06

243 2

51

284 7

27

Part

IX

. In

tern

al o

vers

ight

29In

tern

al o

vers

ight

31

545

12

125

552

1

2 67

7 1

8 86

8

Tota

l 3

1 5

45

1

2 1

25

5

52

12 6

77

18 8

68

Part

X.

Join

tly fi

nance

d a

dm

inis

trative

act

ivitie

s and s

pec

ial e

xpen

ses

30Jo

intly

fina

nced

adm

inis

trativ

e ac

tiviti

es 7

799

5

550

-

5 5

50

2 2

49

31Sp

ecia

l exp

ense

s 9

3 47

9 4

8 90

5 7

0 4

8 97

5 4

4 50

4

Tota

l 1

01

27

8

54

45

5

70

54 5

25

46 7

53

Part

XI.

Capital e

xpen

diture

s32

Con

struc

tion,

alte

ratio

n, im

prov

emen

t and

maj

or m

aint

enan

ce 7

8 53

2 2

0 42

5 9

479

2

9 90

4 4

8 62

8

Tota

l 7

8 5

32

2

0 4

25

9

479

29 9

04

48 6

28

Part

XII.

Se

curi

ty a

nd S

afe

ty33

Secu

rity

and

Safe

ty 1

95 5

38

82

732

2 4

27

85

159

110

379

To

tal

19

5 5

38

8

2 7

32

2

427

85 1

59

110 3

79

Part

XIII

. D

evel

opm

ent

acc

ount

34D

evel

opm

ent a

ccou

nt 1

6 48

1 1

3 95

4 -

13

954

2 5

27

Tota

l 1

6 4

81

1

3 9

54

-

1

3 9

54

2 5

27

Part

XIV

. St

aff

ass

essm

ent

35St

aff a

sses

smen

t 4

36 3

48

207

619

-

207

619

2

28 7

29

Tota

l 4

36

34

8

20

7 6

19

-

2

07 6

19

228 7

29

Gra

nd T

ota

l 4

17

3 8

96

1

80

2 2

76

1

01 5

99

1 9

03 8

75

2 2

70 0

21

(continued)

Financial section

133

UN

: St

ate

men

t V

U

nited

Nations

Gen

eral F

und a

nd R

elate

d F

unds

St

atem

ent o

f inc

ome

and

expe

nditu

re a

nd c

hang

es in

rese

rves

and

fund

bal

ance

s fo

r the

twel

ve-m

onth

per

iod

of th

e bi

enni

um 2

006-

2007

end

ing

31 D

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ber 2

006

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usan

ds o

f Uni

ted

Stat

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Uni

ted

Nat

ions

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l Fun

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l A

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tal 2

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Tota

l 200

4

Inco

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Ass

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d co

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ns

1 92

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332

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reve

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3 69

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3 69

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2 38

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--

2 38

2 3

099

Inte

rest

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16 3

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523

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892

2

787

Oth

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me

12

582

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60

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642

9

167

Tota

l inco

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1 9

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5

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1 6

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Expen

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ts1

484

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43 5

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57 8

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-57

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235

Ope

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160

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148

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55

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73

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Prio

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Net

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of

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pen

diture

55

78

9

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58

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72

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Prov

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of p

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45 4

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Oth

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and

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s

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307

514

)(2

307

514

)(1

275

)

Rese

rves

and

fund

bal

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of p

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d10

3 28

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7 99

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6 31

4

Res

erve

s and f

und b

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s, e

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f per

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20

4 5

73

1

00

00

0 2

24

28

7

(2 3

07 5

14)

(1 7

78 6

54)

290 3

51

134

UN

: St

ate

men

t V

I Te

chnic

al C

ooper

ation A

ctiv

itie

s

Stat

emen

t of i

ncom

e an

d ex

pend

iture

and

cha

nges

in re

serv

es a

nd fu

nd b

alan

ces

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

U

nite

d N

atio

nsEC

AES

CA

PEC

EEC

LAC

ESC

WA

UN

CTA

DU

N-H

abita

t To

tal

2006

Tota

l 20

04

Inco

me

Volu

ntar

y co

ntrib

utio

ns

45 0

81

8 15

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540

4 99

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900

1

504

28 4

75

- 10

8 65

1 89

888

Fund

s re

ceiv

ed u

nder

inte

r-org

aniz

atio

n ar

rang

emen

ts6

559

413

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255

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000

Allo

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om o

ther

fund

s

7 59

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464

1 77

8 1

190

1 82

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691

806

562

18 9

11

19 5

20

Inte

rest

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4 10

3 73

9 1

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373

647

391

2 14

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74

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Oth

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inco

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286

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48

226

32

306

- 89

9 50

7

Tota

l inco

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63

62

1

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0

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38

5

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54

4 1

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34 5

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562

150 8

90

136 6

31

Expen

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f and

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cos

ts45

415

6

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5 57

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8 31

6 2

480

20 0

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92 3

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85 6

81

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1 26

0 74

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301

4 46

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2 14

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509

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8 11

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68

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2 5

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2 89

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cos

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325

11

676

11

334

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013

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6 70

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5 52

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11

562

145 7

53

136 9

46

Exce

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r ex

pen

diture

2 7

68

5

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94

3

1 2

07

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76

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294

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Prio

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Net

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2 7

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)9

43

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20

7

2 7

60

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877)

293

- 5 0

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Tran

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ther

fund

s 73

5 (2

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Oth

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djus

tmen

ts to

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s

- -

- -

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5

Rese

rves

and

fund

bal

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s, b

egin

ning

of p

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d97

473

8

566

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73

7 56

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233

8

163

44 0

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9 48

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3 24

4

Res

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s and f

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ala

nce

s, e

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f per

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10

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85

8

29

8

34

34

7

8 7

76

1

2 8

12

5 2

49

44 0

39

- 214 3

06

140 3

52

Financial section

135

UN

: St

ate

men

t V

II

United

Nations

Gen

eral T

rust

Funds

St

atem

ent o

f inc

ome

and

expe

nditu

re a

nd c

hang

es in

rese

rves

and

fund

bal

ance

s fo

r the

twel

ve-m

onth

per

iod

of th

e bi

enni

um 2

006-

2007

end

ing

31 D

ecem

ber 2

006

(Tho

usan

ds o

f Uni

ted

Stat

es d

olla

rs)

Pol

itica

l A

ffairs

In

tern

atio

nal

Justi

ce a

nd L

aw

Eco

nom

ic

and

Soci

al

Dev

elop

men

t

Hum

an

Righ

ts an

d H

uman

itaria

n A

ffairs

P

ublic

In

form

atio

n

Com

mon

Su

ppor

t and

M

isce

llane

ous

Uni

ted

Nat

ions

Fu

nd fo

r In

tern

atio

nal

Partn

ersh

ip

(UN

FIP)

T

otal

200

6 T

otal

200

4

Inco

me

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ntar

y co

ntrib

utio

ns 5

6 44

1 2

416

4

2 36

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64

281

4

9 62

6 8

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9 8

14 4

44

395

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Fund

s re

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47

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13

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616

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37

Allo

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ns fr

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s -

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5

46

Inte

rest

inco

me

6 9

61

507

3

943

1

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77

6 8

87

2 9

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40

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11

553

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2 7

92

173

3

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Tota

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67

04

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5

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57 9

21

123 2

82

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46

Expen

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390

1

663

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1 49

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56 4

04

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362

979

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12

125

556

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216

4

25

4 8

51

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523

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2

351

1

11

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613

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789

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722

3

92

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133

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53

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599

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363

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786

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13

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14 9

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89

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7 14

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46

Prog

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ted

Nat

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)

1 9

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302

4

281

3

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25

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383 7

38

Exce

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41

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6

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1

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23

2)

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55

310 5

77

64 8

08

Prio

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482

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20)

(812

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33

(8)

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8

39

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(582

)

Net

ex

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of

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me

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pen

diture

33

36

4

(2

09

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1)

20

6 8

37

(

24

0)

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94

303 2

69

64 2

26

Tran

sfer

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ther

fund

s

(8 1

77)

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42

70

905

- -

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2 97

0 (9

46)

Tran

sfer

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aniz

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ns

(36

805)

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3) -

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10)

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3)

Refu

nds

to d

onor

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447

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(1 2

55)

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83)

(26)

(52)

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963

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5 60

8)

Rese

rves

and

fund

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s, b

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ning

of p

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d 1

57 4

33

11

318

100

654

3

50 9

56

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168

637

1

3 13

7 8

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38

668

941

Res

erve

s and f

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ala

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s, e

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f per

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14

3 3

68

1

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9

9 3

87

6

27

51

5

7 2

37

191 5

39

53 8

31

1 1

33 9

86

686 4

00

136

UN

: St

ate

men

t V

IIIU

nited

Nations

Tax

Equaliz

ation F

und

Stat

emen

t of i

ncom

e an

d ex

pend

iture

and

cha

nges

in re

serv

es a

nd fu

nd b

alan

ces

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

Uni

ted

Stat

es o

f Am

eric

aO

ther

Mem

ber S

tate

sTo

tal 2

006

Tota

l 200

4

Inco

me

Staf

f ass

essm

ent r

ecei

pts

from

:

Uni

ted

Nat

ions

Reg

ular

Bud

get

46

102

163

455

2

09 5

57

208

232

Peac

e-ke

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g op

erat

ions

30

702

84

316

115

018

9

5 35

9

Inte

rnat

iona

l Trib

unal

s

6 9

54

21

607

28

561

30

399

Tota

l inco

me

83

75

8

269 3

78

353 1

36

333 9

90

Expen

diture

Estim

ated

reim

burs

emen

ts to

sta

ff m

embe

rs s

ubje

ct to

Uni

ted

Stat

es in

com

e ta

xes

for t

ax y

ears

200

4 an

d 20

05

Fede

ral i

ncom

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xes

41

000

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1 00

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3 50

0

Stat

e in

com

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11

900

- 1

1 90

0 1

1 00

0

City

inco

me

taxe

s 4

400

-

4 4

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4 0

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Soci

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8 7

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700

8

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otal

66

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6 00

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7 00

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Cre

dits

give

n to

oth

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r Sta

tes

for:

Uni

ted

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- 1

70 2

29

170

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1

66 3

73

Peac

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-

95

494

95

494

73

932

Inte

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iona

l Trib

unal

s

- 1

8 70

4 1

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6

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84 4

27

284

427

2

63 9

11

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6

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78

605

Tota

l ex

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diture

66

67

8

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27

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05

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16

Exce

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short

fall)

of

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r ex

pen

diture

17

08

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49)

2 0

31

12 4

74

Prio

r per

iod

adju

stmen

ts

(3 9

07)

- (3

907

) (2

172

)

Net

ex

cess

(sh

ort

fall)

of

inco

me

ove

r ex

pen

diture

1

3 1

73

(

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49)

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76)

10 3

02

Prov

isio

nal s

avin

gs o

n or

can

cella

tion

of p

rior p

erio

d ob

ligat

ions

6

- 6

3

603

Oth

er a

djus

tmen

ts to

fund

bal

ance

s

- 6

401

6

401

(2

409

)

Rese

rves

and

fund

bal

ance

s, b

egin

ning

of p

erio

d -

11

973

11

973

25

431

Res

erve

s and f

und b

ala

nce

s, e

nd o

f per

iod

13

17

9

3 3

25

16 5

04

36 9

27

Financial section

137

UN

: St

ate

men

t IX

United

Nations

Capital A

sset

s and C

onst

ruct

ion in

pro

gre

ss

Stat

emen

t of i

ncom

e an

d ex

pend

iture

and

cha

nges

in re

serv

es a

nd fu

nd b

alan

ces

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

Cap

ital

Ass

ets

Fund

Con

struc

tion

in p

rogr

ess

Tota

l20

06

Tota

l20

04

Cap

ital

Mas

ter P

lan

Secu

rity

mea

sure

sU

NO

NEC

AEC

LAC

Oth

er

Inco

me

Ass

esse

d co

ntrib

utio

ns -

108

698

- -

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08 6

98

-

Allo

catio

ns fr

om o

ther

fund

s

- -

6 1

06

- 1

670

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5

1 68

8

Inte

rest

inco

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709

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309

2

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402

2

441

4

81

Oth

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llane

ous

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309

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2 3

09

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88

Tota

l inco

me

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11

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6

10

6

2 6

18

1

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121 2

24

54 2

57

Expen

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(Sc

hed

ule

9.1

)

Tota

l ex

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36

526

7 1

03

113

2

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und b

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43

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138

UN

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United

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for t

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of U

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trus

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7 86

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35

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34

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from

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- 3

227

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7 52

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36

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87

Financial section

139

Notes to the financial statements

Note 2

Summary of significant accounting and financial

reporting policies of the United Nations

(a) The accounts of the United Nations are maintained in accordance with the Financial Regulations and Rules of the United Nations as adopted by the General Assembly, the rules formulated by the Secretary-General as required under the regulations and administrative instructions issued by the Under- Secretary-General for Management or the Controller. They also take fully into account the United Nations System Accounting Standards, as adopted by the United Nations System Chief Executives Board for Coordination (CEB). The Organization follows International Accounting Standard 1, Presentation of financial statements, on the disclosure of accounting policies, as modified and adopted by the United Nations System Chief Executives Board for Coordination, as shown below:

(i) Going concern, consistency and accrual are fundamental accounting assumptions. Where fundamental accounting assumptions are followed in financial statements, disclo-sure of such assumptions is not required. If a fundamental accounting assumption is not followed, that fact should be disclosed together with the reasons;

(ii) Prudence, substance over form, and materiality should gov-ern the selection and application of accounting policies;

(iii) Financial statements should include clear and concise disclosure of all significant accounting policies that have been used;

(iv) The disclosure of the significant accounting policies used should be an integral part of the financial statements. These policies should normally be disclosed in one place;

(v) Financial statements should show comparative figures for the corresponding period of the preceding financial period;

(vi) A change in an accounting policy that has a material effect in the current period or may have a material effect in subsequent periods should be disclosed together with the reasons. The effect of the change should, if material, be disclosed and quantified.

(b) The Organization’s accounts are maintained on a fund accounting basis. Separate funds for general or special pur-poses may be established by the General Assembly, the Security Council or the Secretary-General. Each fund is maintained as a distinct financial and accounting entity with a separate self-balancing double-entry group of accounts. Separate financial statements are prepared for each fund or for a group of funds of the same nature.

(c) The financial period of the Organization is a biennium con-sisting of two consecutive calendar years for all funds other than

peacekeeping accounts, which are reported on a fiscal year basis covering the period from 1 July to 30 June.

(d) Generally, income, expenditure, assets and liabilities are recognized on the accrual basis of accounting. For assessed income, the policy set out in paragraph (k) (ii) below applies.

(e) The accounts of the Organization are presented in United States dollars. Accounts maintained in other currencies are trans-lated into United States dollars at the time of the transactions at rates of exchange established by the United Nations. In respect of such currencies, the financial statements shall reflect the cash, investments, unpaid pledges and current accounts receivable and payable in currencies other than the United States dollars, trans-lated at the applicable United Nations rates of exchange in effect as at the date of the statements. In the event that the application of actual exchange rates at the date of the statements would provide a valuation materially different from the application of the Organi-zation’s rates of exchange for the last month of the financial peri-od, a footnote will be provided quantifying the difference.

(f) The Organization’s financial statements are prepared on the historical cost basis of accounting and are not adjusted to reflect the effects of changing prices for goods and services.

(g) The cash flows statement is based on the indirect method of cash flows, as referred to in the United Nations System Account-ing Standards.

(h) The Organization’s financial statements are presented in accordance with the ongoing recommendations of the Task Force on Accounting Standards to the High Level Committee on Management (HLCM).

(i) The results of the Organization’s operations presented in Statements I, II and III are summarized by general type of activ-ity and are presented on a combined basis for funds other than those that are reported on separately, after the elimination of all inter-fund balances and instances of double-counting of income and expenditure. Their presentation on a combined basis does not imply that the various separate funds can be intermingled in any way, since, normally, resources may not be utilized between funds.

(j) Separate financial statements are issued for the United Nations general and related funds, for the United Nations Iraq escrow accounts, for the United Nations Compensation Commis-sion, for the International Tribunal for the Former Yugoslavia under the provisions of Security Council resolutions 808 (1993) and 827 (1993), for the International Tribunal for Rwanda, under the provisions of Security Council resolution 955 (1994), and for the peacekeeping accounts, which are reported separately on a fis-cal year basis covering the period from 1 July to 30 June.

(k) Income:

(i) The amounts necessary to finance the activities of the United Nations regular budget, the peacekeeping opera-tions, the Capital Master Plan, the International Tribunals for the former Yugoslavia and Rwanda and the Working

140

Capital Fund are assessed to Member States in accord-ance with the scale of assessments determined by the General Assembly;

(ii) Income is recognized when assessments to Member States have been authorized by the General Assembly. Neither appropriations nor spending authorities are recognized as income except to the extent that a matching assessment on Member States has been levied;

(iii) Amounts assessed to non-member States that agree to reimburse the Organization for the costs of their partici-pation in United Nations treaty bodies, organs and con-ferences are credited to miscellaneous income;

(iv) Voluntary contributions from Member States and other donors are recorded as income on the basis of a written commitment to pay monetary contributions at specified times within the current financial period. Voluntary con-tributions made in the form of services and supplies that are acceptable to the Secretary-General are credited to income or noted in the financial statements;

(v) Income from revenue-producing activities (including activities handled by outside contractors) is shown in the financial statements on a net basis, after the subtraction of directly related operating expenditures;

(vi) Income received under inter-organizational arrange-ments represents allocations of funding from agencies to enable the Organization to administer projects or other programmes on their behalf;

(vii) Allocations from other funds represent monies appropri-ated or designated from one fund for the transfer to and disbursement from another fund;

(viii) Income from jointly financed activities represents amounts charged to other organizations for their share of joint costs paid for by the Organization;

(ix) Income for services rendered includes amounts charged for staff salaries and other costs that are attributable to providing technical and administrative support to other organizations;

(x) Interest income includes all interest earned on deposits in various bank accounts, investment income earned on mar-ketable securities and other negotiable instruments, and investment income earned in the cash pools. All realized losses and net unrealized losses on short-term investments are offset against investment income. Investment income and costs associated with the operation of investments in the cash pools are allocated to participating funds;

(xi) Miscellaneous income includes income from rental of premises, the sale of used or surplus property, refunds of expenditures charged to prior periods, income from net gains resulting from currency exchange adjustments, except for those arising from revaluation of current-period obligations as stated in (l) (i) below, settlements of insurance claims, amounts assessed on new Member

States for the year of admission to the United Nations, amounts assessed to non-member States as stated in (k) (iii) above, monies accepted for which no purpose was specified and other sundry income. In respect of general trust funds, miscellaneous income also includes savings on or cancellation of prior-period obligations;

(xii) Income relating to future financial periods is not recog-nized in the current financial period and is recorded as deferred income, as referred to in item (n) (iii) below.

(l) Expenditure:

(i) Expenditures are incurred against authorized appropria-tions or commitment authorities. Total expenditures reported include unliquidated obligations and disbursements. Expend itures also include currency exchange adjustments arising from revaluation of current-period obligations;

(ii) Expenditures incurred for non-expendable property are charged to the budget of the period when acquired and are not capitalized. Inventory of such non-expendable property is maintained at the historical cost;

(iii) Expenditures for future financial periods are not charged to the current financial period but are recorded as deferred charges, as referred to in item (m) (vi) below.

(m) Assets:

(i) Cash and term deposits represent funds held in demand-deposit accounts and interest-bearing bank deposits;

(ii) Investments include marketable securities and other negoti-able instruments acquired by the Organization to produce income. Short-term investments are stated at the lower of cost or market value; long-term investments are stated at cost. Cost is defined as the nominal value plus or minus any unamortized premium or discount. The market value of investments is disclosed in the footnotes to the financial statements;

(iii) Cash pools comprise participating funds’ share of cash and term deposits, short-term and long-term investments and accrual of investment income, all of which are man-aged in the pools. The investments in the cash pools are similar in nature and are accounted for as set out in item (m) (ii) above. The share in the cash pools is reported separately in each participating fund’s statement and its composition and the market value of its investments are disclosed in the footnote to the statement;

(iv) Assessed contributions represent legal obligations of con-tributors and, therefore, the balances of unpaid assessed contributions due from Member States are reported irre-spective of collectability. It is the policy of the United Nations not to make provision for delays in the collection of such assessments;

(v) Inter-fund balances reflect transactions between funds, and are included in the amounts due to and from the

Financial section

141

United Nations General Fund. Inter-fund balances also reflect transactions directly with the United Nations Gen-eral Fund. Inter-fund balances are settled periodically, depending on the availability of cash resources;

(vi) Deferred charges normally comprise expenditure items that are not properly chargeable to the current financial peri-od. They will be charged as expenditure in a subsequent period. These expenditure items include commitments approved by the Controller for future financial periods in accordance with financial rule 106.7. Such commitments are normally re stricted to administrative requirements of a continuing nature and to contracts or legal obligations where long lead times are required for delivery;

(vii) For purposes of the balance sheet statements only, those portions of education grant advances that are assumed to pertain to the scholastic years completed as at the date of the financial statement are shown as deferred charges. The full amounts of the advances are maintained as accounts receivable from staff members until the required proofs of entitlement are produced, at which time the budgetary accounts are charged and the advances settled;

(viii) Construction in progress is shown in the accounts as such until completion of the construction projects, at which time the completed construction projects, together with the cost of the land, are reflected as capital assets of the Organization;

(ix) Maintenance and repairs of capital assets are charged against the appropriate budgetary accounts. Furniture, equipment, other non-expendable property and lease-hold improvements are not included in the assets of the Organization. Such acquisitions are charged against budgetary accounts in the year of purchase. The value of non-expendable property is disclosed in the notes to the financial statements.

(n) Liabilities and reserves and fund balances:

(i) Operating and other types of reserves are included in the totals for reserves and fund balances shown in the financial statements;

(ii) Unliquidated obligations for future years are reported both as deferred charges and as unliquidated obligations;

(iii) Deferred income includes pledged contributions for future periods, advances received under revenue-producing activities and other income received but not yet earned;

(iv) Commitments of the Organization relating to prior, cur-rent and future financial periods are shown as unliqui-dated obligations. Current-period obligations relating to the regular budget and special accounts remain valid for 12 months following the end of the biennium to which they relate. Obligations for most technical cooperation activities remain valid for 12 months after the end of each calendar year. Unliquidated obligations relating to

amounts owed by peacekeeping operations to Member States may be retained for a period of five years beyond the end of the financial period. Unliquidated obligations relating to funds with a multi-year financial cycle remain valid until the completion of the project;

(v) Accrued liabilities for end-of-service and post-retirement benefits, comprising those for after-service health insur-ance (ASHI), unused vacation days and repatriation benefits, which were previously disclosed in notes to the financial statements, are effective with the twelve-month period of the biennium 2006-2007 ending 31 December 2006, included as liabilities in the statement of assets, liabilities and reserves and fund balances. The change in presentation is made in order to recognize such liabili-ties when incurred, and is in accordance with the Gen-eral Assembly resolution 60/255 of 8 May 2006 with respect to recognition of ASHI liabilities. See note 11;

(vi) Contingent liabilities, if any, are disclosed in the notes to the financial statements;

(vii) The United Nations is a member organization partici-pating in the United Nations Joint Staff Pension Fund (UNJSPF), which was established by the General Assem-bly to provide retirement, death, disability and related benefits. The UNJSPF is a funded defined benefit plan. The financial obligation of the Organization to the UNJSPF consists of its mandated contribution at the rate established by the General Assembly, together with its share of any actuarial deficiency payments under arti-cle 26 of the Regulations of the UNJSPF. Such deficiency payments are only payable if and when the General Assembly has invoked the provision of article 26, follow-ing a determination that there is a requirement for defi-ciency payments based on an assessment of the actuarial sufficiency of the UNJSPF as at the valuation date. As at the date of the current financial statement, the General Assembly has not invoked this provision.

(o) Technical cooperation activities:

(i) The technical cooperation financial statements report on activities financed by voluntary contributions, funds received under inter-organizational arrangements from UNDP, UNFPA and other sources, and by allocation from section 23 of the regular budget;

(ii) Voluntary contributions from Member States or other donors for technical cooperation activities are recorded as income upon receipt of cash, including amounts received pending the identification of specific projects;

(iii) The allocation income from UNDP and UNFPA is deter-mined taking into account interest and other miscellane-ous income against total expenditure;

(iv) Distribution of interest income for trust funds is calculated at year’s end using the percentage participation of each fund based on the monthly average fund balance;

142

(v) Miscellaneous income arising from regular budget activi-ties is credited to miscellaneous income of the General Fund. Interest and miscellaneous income for technical cooperation trust funds are credited to the trust funds concerned;

(vi) Unliquidated obligations for the current period in respect of all technical cooperation activities other than those funded from the regular budget remain valid for 12 months following the end of the calendar year, rather than the biennium, to which they relate. However, in accordance with UNDP/UNFPA reporting requirements, such obliga-tions may be retained beyond 12 months when a firm liability to pay still exists. Savings on or cancellation of prior-period obligations are credited to individual projects as a reduction of current-period expenditure;

(vii) The appropriation for the technical cooperation pro-grammes of the regular budget is administered in accord-ance with the Financial Regulations of the Organization. Unliquidated obligations for the regular programme of technical cooperation that are outstanding at the end of a financial period are transferred from the United Nations General Fund accounts to the technical cooperation accounts in the following financial period;

(viii) A system of average costing is used for UNDP/UNFPA projects whereby those elements of experts’ actual costs that are unique to the individual expert are charged to UNDP/UNFPA projects at average cost. This is calcu-lated by apportioning those costs over all UNDP or

UNFPA projects in respect of which expert-months have been delivered in the current period;

(ix) The repatriation grant entitlement is calculated on the basis of eight per cent of net base pay for eligible project personnel, except those subject to average costing.

(p) Trust Funds established by the General Assembly or the Secretary-General are of two types — general trust funds and technical co operation trust funds:

(i) Accounts for general trust funds are maintained under the same accounting procedures as those adopted for the regular budget, except that savings on or cancellation of prior-period obligations are credited to miscellaneous income;

(ii) General trust funds are charged with costs for the repat-riation grant entitlement, which is calculated on the basis of eight per cent of net base pay of eligible personnel;

(iii) Accounts for technical cooperation trust funds and for UNDP/UNFPA general trust funds are accounted for on the same basis as described above for technical coop-eration activities;

(iv) Funds provided to reimburse the Organization for the use of its facilities are not treated as trust funds. Any unspent balances of such funds held by the Organiza-tion are included as part of accounts payable totals reported in the General Fund (Statement V) or in other statements.

Financial section

143

Pea

cek

eepin

g:

State

men

t I

Sum

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of

United

Nations

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per

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4 9

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4 3

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9 74

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29

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31

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- 1

3 79

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159

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s 5

7 47

0 4

4 25

1 -

- 1

01 7

21

11

653

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60

294

8 4

34

11

306

- 8

0 03

4 2

9 04

5

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16

133

31

215

480

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6 1

5 13

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5 0

83

36

2

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7 1

59

1

1 7

86

(203 5

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5 1

48 7

26

4 4

81 6

72

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4 5

58

34

7b

21

1 3

47

1

1

(186 9

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4 5

82 7

59

4 0

74 3

06

Exce

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52

5 0

15

4

5 8

12

1

1 7

75

(16 6

35)

565 9

67

407 3

66

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(3 2

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(6 0

33)

2 8

45

(6 7

56)

(6 0

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Net

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52

4 7

31

4

2 5

28

5

742

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559 2

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401 2

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300

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3

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1

52

- 3

04 1

66

167

812

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retu

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(450

862

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(41

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- (4

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(245

597

)

Tran

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s to

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- (1

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(57

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(44

251)

- -

(101

721

) (1

1 65

3)

Res

erve

s and f

und b

ala

nce

s, b

egin

nin

g o

f per

iod

74

2 8

12

2

21

85

2

63

9 4

16

-

1 6

04 0

80

1 2

92 2

47

Res

erve

s and f

und b

ala

nce

s, e

nd o

f per

iod

1 0

59

42

1

21

0 1

43

6

03

543

-

1 8

73 1

07

1 6

04 0

80

a Se

e no

te 5

.b

Sche

dule

1.1

.

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

fina

ncia

l sta

tem

ents.

144

Pea

cek

eepin

g:

Sched

ule

1.1

United

Nations

pea

cek

eepin

g o

per

ations

Sum

mar

y of

exp

endi

ture

s fo

r act

ive

peac

ekee

ping

ope

ratio

ns

for t

he p

erio

d fro

m 1

July

200

5 to

30

June

200

6 as

at 3

0 Ju

ne 2

006

(Tho

usan

ds o

f Uni

ted

Stat

es d

olla

rs)

Expe

nditu

re

Mis

sion

App

ropr

iatio

n

Mili

tary

an

d po

lice

pe

rson

nel

Civ

ilian

pe

rson

nel

Ope

ratio

nal

requ

irem

ents

Pror

ated

cos

ts

of U

NLB

and

su

ppor

t acc

ount

Volu

ntar

y

cont

ribut

ions

(b

udge

ted)

Tota

l ex

pend

iture

Une

ncum

bere

d ba

lanc

e

UN

FIC

YP 4

7 94

4 1

8 13

1 1

2 22

9 1

3 46

7 2

328

1

278

4

7 43

3 5

11

UN

DO

F 4

3 70

6 2

0 22

4 7

868

1

2 02

6 2

184

-

42

302

1 4

04

UN

IFIL

99

228

40

778

30

341

20

146

4 9

75

- 9

6 24

0 2

988

MIN

URS

O 5

1 06

7 6

217

1

5 80

8 2

0 32

3 2

408

3

761

4

8 51

7 2

550

UN

OM

IG 3

6 38

0 3

954

1

7 60

1 9

595

1

818

-

32

968

3 4

12

UN

AM

SIL

113

216

3

4 19

8 2

6 58

0 2

5 35

9 5

677

-

91

814

21

402

UN

MIK

252

552

7

0 23

0 1

35 8

15

27

708

12

662

- 2

46 4

15

6 1

37

MO

NU

C 1

157

096

4

48 5

43

163

232

4

43 2

65

20

221

3 2

37

1 0

78 4

98

78

598

UN

MIS

ET 1

758

-

1 1

04

515

9

6 -

1 7

15

43

UN

MEE

185

993

7

8 05

8 2

7 77

8 5

0 16

0 9

329

-

165

325

2

0 66

8

UN

MIL

760

687

3

77 4

20

109

620

2

20 0

65

38

145

264

7

45 5

14

15

173

UN

OC

I 4

38 1

69

185

684

6

6 98

4 1

29 6

00

19

392

- 4

01 6

60

36

509

MIN

UST

AH

541

302

2

39 6

74

88

832

151

131

2

4 81

3 -

504

450

3

6 85

2

ON

UB

307

693

1

20 5

27

59

641

58

783

15

421

- 2

54 3

72

53

321

UN

MIS

969

469

2

31 6

65

91

087

478

372

-

- 8

01 1

24

168

345

Subt

otal

5 0

06 2

60

1 8

75 3

03

854

520

1

660

515

1

59 4

69

8 5

40

4 5

58 3

47

447

913

UN

LB —

stra

tegi

c de

ploy

men

t sto

ck re

plen

ishm

ent

66

404a

-

- 4

7 83

1 -

- 4

7 83

1 1

8 57

3

Tota

l 5

07

2 6

64

1

87

5 3

03

8

54

52

0

1 7

08

34

6

159 4

69

8 5

40

4 6

06 1

78

b 4

66 4

86

a A

ppro

pria

tions

do

not a

pply

to s

trate

gic

depl

oym

ent s

tock

act

iviti

es. I

nste

ad s

trate

gic

depl

oym

ent s

tock

s ar

e re

plen

ishe

d as

a re

sult

of tr

ansf

ers

to p

eace

keep

ing

and

polit

ical

mis

sion

s.

(

Thou

sand

s of

U

nite

d St

ates

dol

lars

)b

Tota

l exp

endi

ture

per

sch

edul

e 1.

1

Less

: pr

orat

ed c

osts

of U

NLB

and

sup

port

acco

unt p

er s

ched

ule

1.1

Le

ss:

strat

egic

dep

loym

ent s

tock

repl

enis

hmen

ts re

cord

ed in

pea

ceke

epin

g m

issi

ons

and

UN

LB

Add

: ac

tual

cos

ts of

UN

LB a

nd s

uppo

rt ac

coun

t per

sch

edul

es 2

0.1

and

21.1

A

dd:

actu

al e

xpen

ditu

re o

f Pea

ceke

epin

g Re

serv

e Fu

nd p

er s

tate

men

t XIX

A

dd:

expe

nditu

re o

f MO

NU

A p

er s

tate

men

t XXV

II

T

otal

exp

endi

ture

as

per s

tate

men

t 1

4 60

6 17

8 (1

59 4

69)

(27

477)

163

515 1 11

4 58

2 75

9

Financial section

145

Pea

cek

eepin

g:

State

men

t II

Sum

mary

of

United

Nations

pea

cek

eepin

g o

per

ationsa

St

atem

ent o

f ass

ets,

liab

ilitie

s an

d re

serv

es a

nd fu

nd b

alan

ces

as a

t 30

June

200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

Tota

l act

ive

oper

atio

ns

Peac

ekee

ping

Re

serv

e Fu

nd,

Prog

ram

me

Supp

ort,

Logi

stics

Bas

eTo

tal c

ompl

eted

op

erat

ions

All

peac

ekee

ping

fund

s el

imin

atio

ns

Tota

l

2006

2005

Ass

ets

Cas

h an

d te

rm d

epos

its 3

2 37

9 1

046

4

91

- 3

3 91

6 3

4 97

8 C

ash

pool

b 1

609

907

2

07 4

72

340

667

-

2 1

58 0

46

1 7

07 0

42

Ass

esse

d co

ntrib

utio

ns re

ceiv

able

from

Mem

ber S

tate

sc 7

30 3

07

13

607

526

998

-

1 2

70 9

12

1 6

56 9

86

Spec

ial a

ccou

nts

for u

npai

d as

sess

ed c

ontri

butio

ns 5

5 55

2 -

11

962

- 6

7 51

4 6

7 51

4 Vo

lunt

ary

cont

ribut

ions

rece

ivab

le 5

979

-

- -

5 9

79

5 5

72

Acc

ount

s re

ceiv

able

from

Mem

ber S

tate

s 3

693

1

1

35 5

91d

- 1

39 2

85

139

592

O

ther

acc

ount

s re

ceiv

able

31

057

2 5

01

482

(2

378

) 3

1 66

2 2

3 44

5 In

ter-f

und

bala

nces

rece

ivab

le 2

456

2

7 43

8 6

540

(3

6 43

4) -

3 4

12

Due

from

oth

er p

eace

keep

ing

fund

s -

12

820

23

816

(36

636)

- -

Def

erre

d ch

arge

s 6

407

1

029

2

5 -

7 4

61

9 8

07

Inte

r-offi

ce tr

ansa

ctio

ns p

endi

ng p

roce

ssin

g 6

02

9

- -

611

1

76

Oth

er a

sset

s -

- 2

849

-

2 8

49

2 8

49

Tota

l ass

ets

2 4

78

33

9

26

5 9

23

1

04

9 4

21

(75 4

48)

3 7

18 2

35

3 6

51 3

73

Liabili

ties

Con

tribu

tions

or p

aym

ents

rece

ived

in a

dvan

ce 6

384

-

66

- 6

450

9

8 95

6 U

nliq

uida

ted

oblig

atio

ns 1

011

911

4

2 11

9 1

21

- 1

054

151

1

279

092

A

ccou

nts

paya

ble

to M

embe

r Sta

tes

236

499

-

223

663

-

460

162

3

36 1

85

Oth

er a

ccou

nts

paya

ble

82

298

7 5

10

537

(2

378

) 8

7 96

7 9

5 46

5 In

ter-f

und

bala

nces

pay

able

57

858

6 1

51

7 1

51

(36

434)

34

726

35

866

Due

to o

ther

pea

ceke

epin

g fu

nds

11

000

- 2

5 63

6 (3

6 63

6) -

- Vo

lunt

ary

cont

ribut

ions

hel

d in

sus

pens

e 1

1 98

5 -

- -

11

985

11

985

Def

erre

d cr

edits

8

66

- 1

27 4

01d

- 1

28 2

67

128

340

In

ter-o

ffice

tran

sact

ions

pen

ding

pro

cess

ing

117

-

17

- 1

34

118

D

ue to

Uni

ted

Nat

ions

Spe

cial

Acc

ount

- -

3 3

29

- 3

329

3

329

D

ue to

Uni

ted

Nat

ions

Bon

d A

ccou

nt -

- 4

4 04

8 -

44

048

44

048

Oth

er li

abili

ties

- -

13

909

- 1

3 90

9 1

3 90

9

Tota

l lia

bili

ties

1 4

18

91

8

55

78

0

44

5 8

78

(75 4

48)

1 8

45 1

28

2 0

47 2

93

Res

erve

s and f

und b

ala

nce

sW

orki

ng c

apita

l fun

ds -

150

000

-

- 1

50 0

00

150

000

A

utho

rized

reta

ined

sur

plus

55

552

- 8

0 21

1 -

135

763

1

35 7

63

Surp

lus

to b

e tra

nsfe

rred

e -

- 4

3 75

0 -

43

750

43

750

Cum

ulat

ive

surp

lus

— s

trate

gic

depl

oym

ent s

tock

act

iviti

es -

21

911

- -

21

911

40

466

Cum

ulat

ive

surp

lus

1 0

03 8

69

38

232

479

582

-

1 5

21 6

83

1 2

34 1

01

Tota

l res

erve

s and f

und b

ala

nce

s 1

05

9 4

21

2

10

14

3

60

3 5

43

-

1 8

73 1

07

1 6

04 0

80

Tota

l lia

bili

ties

and r

eser

ves

and f

und b

ala

nce

s 2

47

8 3

39

2

65

92

3

1 0

49

421

(75 4

48)

3 7

18 2

35

3 6

51 3

73

a Se

e no

te 5

.b

See

note

2 (l

) (ii)

.c

Incl

udes

ass

esse

d co

ntrib

utio

ns u

npai

d irr

espe

ctiv

e of

col

lect

abili

ty.

d In

acc

orda

nce

with

Gen

eral

Ass

embl

y re

solu

tion

51/1

2 A

of 4

Nov

embe

r 199

6, in

clud

es e

xpen

ditu

res

tota

lling

$12

7,37

9,95

4, w

hich

are

reim

burs

able

by

Mem

ber S

tate

s as

det

aile

d in

the

repo

rt of

the

Se

cret

ary-

Gen

eral

(A/5

4/80

3). T

he e

quiv

alen

t am

ount

is a

lso in

clud

ed in

def

erre

d cr

edits

. See

sta

tem

ent X

XXI.

e U

nder

the

term

s of

Gen

eral

Ass

embl

y re

solu

tion

56/2

92 o

f 27

June

200

2, a

n am

ount

of $

43,7

50,0

15 s

hall

be re

turn

ed to

Mem

ber S

tate

s up

on th

eir s

ettle

men

t of t

he s

epar

ate

asse

ssm

ent f

or s

trate

gic

depl

oym

ent s

tock

s.

See

state

men

ts XX

XI a

nd X

XXIII

.

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

fina

ncia

l sta

tem

ents.

146

Tribunal for Rwanda: Statement I

International Criminal Tribunal for the Prosecution of Persons Responsible for Genocide and Other Serious Violations of International Humanitarian Law Committed in the Territory of

Rwanda and Rwandan Citizens Responsible for Genocide and Other Such Violations Committed in the Territory of Neighbouring States

between 1 January and 31 December 1994 (ICTR)a Statement of income and expenditure and changes in reserves and fund balances

for the twelve-month period of the biennium 2006-2007 ending 31 December 2006 (Thousands of United States dollars)

2006 2004b

Income

Assessed contributionsc 134 879 122 179

Interest income 1 305 231

Other/miscellaneous income 588 377

Total income 136 772 122 787

Expenditure

Staff and other personnel costs 109 111 100 739

Travel 5 988 3 903

Contractual services 11 817 7 153

Operating expenses 5 392 5 433

Acquisitions 831 1 173

Other 1 392 932

Total expenditure 134 531 119 333

Excess (shortfall) of income over expenditure 2 241 3 454

Prior period adjustments (12) -

Net excess (shortfall) of income over expenditure 2 229 3 454

Provisional savings on or cancellation of prior period’s obligations 3 923 5 574

Other adjustments to reserves and fund balancesd (44 311) -

Reserves and fund balances, beginning of period 18 011 2 616

Reserves and fund balances, end of period (20 148) 11 644

a See notes 2 and 3.b Restated to conform to current presentation.c In accordance with General Assembly resolutions 60/241and 61/241, assessments for the International Tribunal are based in part on the scale of

assessment applicable to the United Nations regular budget and in part on the scale of assessment applicable to peace-keeping operations.d Represents accrued liabilities for after-service health insurance (ASHI) costs of $24,694,000, for unused vacation days of $10,868,800 and for

repatriation benefits of $8,748,600. These were previously disclosed in the notes, and are now reflected in the financial statements as liabilities. See note 7.

The accompanying notes are an integral part of the financial statements.

Financial section

147

Tribunal for Rwanda: Statement II

International Criminal Tribunal for the Prosecution of Persons Responsible for Genocide and Other Serious Violations of International Humanitarian Law Committed in the Territory of

Rwanda and Rwandan Citizens Responsible for Genocide and Other Such Violations Committed in the Territory of Neighbouring States

between 1 January and 31 December 1994 (ICTR)aStatement of assets, liabilities and reserves and fund balances as at 31 December 2006

(Thousands of United States dollars)

2006 2004

Assets

Cash and term deposits 2 571 1 701

Cash poolb 3 391 1 312

Assessed contributions receivable from Member Statesc 23 523 13 643

Interfund balances receivable 451 2 795

Other accounts receivable 2 995 3 327

Deferred charges 2 566 1 851

Inter-office transactions pending processing 21 190

Total assets 35 518 24 819

Liabilities

Contributions or payments received in advance 26 9

Unliquidated obligations — current period 7 478 7 071

Unliquidated obligations — future periods 1 323 -

Due to the United Nations Mission in Haiti - 4 500

Other accounts payable 2 499 1 557


End-of-service and post-retirement liabilitiesd 44 311 -

Total liabilities 55 666 13 175

Reserves and fund balances

Cumulative surplus (20 148) 11 644

Total reserves and fund balances (20 148) 11 644

Total liabilities and reserves and fund balances 35 518 24 819

a See notes 2 and 3.b Represents share of the United Nations Headquarters cash pool and comprises cash and term deposits of $1,141,026, short-term investments of

$1,670,610 (market value $1,670,610), long-term investments of $544,003 (market value $540,724) and accrued interest receivable of $35,261.c Includes assessed contributions unpaid irrespective of collectability.d Represents accrued liabilities for after-service health insurance (ASHI) costs of $24,694,000, for unused vacation days of $10,868,800 and for



148

Tribunal for former Yugoslavia: Statement I

International Tribunal for the Prosecution of Persons Responsible for Serious Violations of International Humanitarian Law Committed

in the Territory of the Former Yugoslavia since 1991 (ITY)aStatement of income and expenditure and changes in reserves and fund balances

for the twelve-month period of the biennium 2006-2007 ending 31 December 2006 (Thousands of United States dollars)

2006 2004

Income

Assessed contributionsb 152 444 174 690

Interest income 3 255 299

Other/miscellaneous income 940 237

Total income 156 639 175 226

Expenditure

Staff and other personnel costs 116 607 112 134

Travel 3 313 3 185

Contractual services 28 158 20 401

Operating expenses 11 908 11 055

Acquisitions 848 1 338

Other 264 239

Total expenditure 161 098 148 352

Excess (shortfall) of income over expenditure (4 459) 26 874

Prior period adjustments (2) -

Net excess (shortfall) of income over expenditure (4 461) 26 874

Provisional savings on or cancellation of prior period’s obligations 2 603 6 767

Other adjustments to reserves and fund balancesc (27 264) -

Reserves and fund balances, beginning of period 48 432 (12 567)

Reserves and fund balances, end of period 19 310 21 074

a See notes 2 and 3.b In accordance with General Assembly resolutions 60/243 and 61/242, assessments for the International Tribunal are based in part on the scale

of assessment applicable to the United Nations regular budget and in part on the scale of assessment applicable to peacekeeping operations.c Represents accrued liabilities for after-service health insurance (ASHI) costs of $17,457,000, for unused vacation days of $4,382,100 and for



Financial section

149

Tribunal for former Yugoslavia: Statement II

International Tribunal for the Prosecution of Persons Responsible for Serious Violations of International Humanitarian Law Committed

in the Territory of the Former Yugoslavia since 1991 (ITY)aStatement of assets, liabilities and reserves and fund balances as at 31 December 2006

(Thousands of United States dollars)

2006 2004

Assets

Cash and term deposits 707 4 284

Cash poolb 29 876 8 989

Assessed contributions receivable from Member Statesc 27 222 16 855

Other accounts receivable 1 435 1 891

Deferred charges 26 385 98 184


Total assets 85 692 130 272

Liabilities

Contributions or payments received in advance 144 1

Unliquidated obligations — current period 7 696 10 651

Unliquidated obligations — future periodsd 25 780 97 371

Inter-fund balances payable 4 636 391

Other accounts payable 859 776


End-of-service and post-retirement liabilitiese 27 264 -

Total liabilities 66 382 109 198

Reserves and fund balances

Cumulative surplus 19 310 21 074

Total reserves and fund balances 19 310 21 074

Total liabilities and reserves and fund balances 85 692 130 272

a See notes 2 and 3.b Represents share of the United Nations Headquarters cash pool and comprises cash and term deposits of $10,053,133, short-term investments of

$14,719,086 (market value $14,719,086), long-term investments of $4,792,995 (market value $4,764,105) and accrued interest receivable of $310,671.

c Includes assessed contributions unpaid irrespective of collectability.d Extension of the contract for penitentiary services is currently under negotiation; see note 5 (e).e Represents accrued liabilities for after-service health insurance (ASHI) costs of $17,457,000, for unused vacation days of $4,382,100 and for



150

UN

OD

C:

State

men

t I

Conso

lidate

d Inco

me

and E

xpen

diture

and C

hanges

in R

eser

ves

and F

und B

ala

nce

s

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (U

nite

d St

ates

dol

lars

)

Refe

renc

eG

ener

al P

urpo

se

Spec

ial P

urpo

se

Elim

inat

ions

To

tal 2

00

6

Tota

l 200

4

INCO

ME

Volu

ntar

y C

ontri

butio

nsSc

hedu

le 1

14 1

21 9

9892

911

093

- 107 0

33 0

91

100

998

950

Fund

s Re

ceiv

ed u

nder

Inte

r-org

aniz

atio

n A

rran

gem

ents

Sche

dule

1-

6 29

9 78

2-

6 2

99 7

82

3 83

6 91

7

Oth

er/M

isce

llane

ous

Inco

me

Prog

ram

me

Supp

ort I

ncom

eSc

hedu

le 5

8 52

3 80

5-

(8 5

23 8

05)

- -

Inte

rest

Inco

me

1 13

5 46

95

482

062

- 6 6

17 5

31

1 89

0 42

0

Mis

cella

neou

s In

com

e1

119

052

4 38

4 46

2-

5 5

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Financial section

151

UN

OD

C:

State

men

t II

Conso

lidate

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sset

s and L

iabili

ties

and R

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The

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f the

fina

ncia

l sta

tem

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152

UN

EP:

State

men

t I

United

Nations

Envi

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Pro

gra

mm

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ll Fu

nds

Sum

mar

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hous

ands

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nite

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ombi

ned

state

men

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ncom

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d ex

pend

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cha

nges

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serv

es a

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alan

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he fi

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bie

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Financial section

153

UN

EP:

State

men

t II

United

Nations

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ronm

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gra

mm

e A

ll Fu

nds

Sum

mar

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hous

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sset

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0 34

2 1

571

1

0 15

7 -

390

959

3

78 0

39

154

UN

-Habitat:

Sta

tem

ent

IU

nited

Nations

Hum

an S

ettlem

ents

Pro

gra

mm

e

All

fund

s su

mm

ary

Com

bine

d sta

tem

ent o

f inc

ome

and

expe

nditu

re a

nd c

hang

es in

rese

rves

and

fund

bal

ance

s fo

r the

firs

t yea

r of t

he b

ienn

ium

200

6-20

07 e

nded

31

Dec

embe

r 200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

Refe

renc

eFo

unda

tion

(St.

IV)

Tech

nica

l coo

pera

tion

(St.

VI)

All

fund

s

elim

inat

ions

Tota

l 200

6To

tal 2

004

Inco

me

Volu

ntar

y co

ntrib

utio

nsSc

hedu

le 5

.2 &

7.2

54

696

62

275

- 1

16 9

71

84

620

Oth

er/m

isce

llane

ous

inco

me

Fund

s re

ceiv

ed u

nder

inte

r-org

aniz

atio

n ar

rang

emen

tsN

ote

2 k

(ii) &

s (i

ii)-

9 1

15

- 9

115

1

1 53

0

Inco

me

for s

ervi

ces

rend

ered

- 1

8 (1

8) -

2 8

52

Inte

rest

inco

me

3 0

00

2 7

72

- 5

772

1

341

Oth

er/M

isce

llane

ous

Not

e 3

(a)

100

1

0 -

110

2

0

Tota

l inc

ome

57

796

74

190

(18)

131

968

1

00 3

63

Expe

nditu

re

Foun

datio

n ac

tiviti

esSc

hedu

le 5

.1

48

989

- (1

8) 4

8 97

1 2

7 32

3

Tech

nica

l coo

pera

tion

activ

ities

Sche

dule

7.1

- 8

4 74

7 -

84

747

33

720

Tota

l exp

endi

ture

48

989

84

747

(18)

133

718

6

1 04

3

Exce

ss/(

Shor

tfall)

of i

ncom

e ov

er e

xpen

ditu

re 8

807

(1

0 55

7) -

(1 7

50)

39

320

Prio

r per

iod

adju

stmen

tsN

ote

3 (b

) (1

6) 1

61

- 1

45

(204

)

Net

exc

ess/

(sho

rtfal

l) of

inco

me

over

exp

endi

ture

8 7

91

(10

396)

- (1

605

) 3

9 11

6

Savi

ngs

on p

rior p

erio

ds’ o

blig

atio

nsN

ote

2 (k

) (vi

ii) 2

46

69

- 3

15

685

Tran

sfer

(to)

/fro

m re

serv

es (3

03)

- -

(303

) (1

548

)

Cre

dits

to m

embe

r sta

tes

(don

ors)

Not

e 3

(c)

(49)

(485

)-

(534

) (3

04)

Fund

bal

ance

s, b

egin

ning

of p

erio

d 3

6 74

6 4

6 46

7 -

83

213

28

673

Fund

bal

ance

s, e

nd o

f per

iod

45

431

35

655

- 8

1 08

6 6

6 62

2

Rese

rves

, beg

inni

ng o

f per

iod

2 8

81

1 8

02

- 4

683

3

063

Tran

sfer

s to

/(fro

m) r

eser

ves

303

-

- 3

03

1 5

48

Rese

rves

, end

of p

erio

d 3

184

1

802

-

4 9

86

4 6

11

Tota

l res

erve

s an

d fu

nd b

alan

ces

48

615

37

457

- 8

6 07

2 7

1 23

3

Financial section

155

UN

-Habitat:

Sta

tem

ent

IIU

nited

Nations

Hum

an S

ettlem

ents

Pro

gra

mm

e

All

fund

s su

mm

ary

Com

bine

d sta

tem

ent o

f ass

ets,

liab

ilitie

s, re

serv

es a

nd fu

nd b

alan

ces

as

at 3

1 D

ecem

ber 2

006

(Tho

usan

ds o

f Uni

ted

Stat

es d

olla

rs)

Refe

renc

eFo

unda

tion

(St.

V)Te

chni

cal c

oope

ratio

n (S

t. VI

I)A

ll fu

nds

elim

inat

ions

Tota

l 200

6To

tal 2

004

Ass

ets

Cas

h an

d te

rm d

epos

itsN

ote

5 3

642

9

277

-

12

919

25

967

Cas

h po

olN

ote

5 7

7 04

0 3

8 10

3 -

115

143

7

2 42

1

Acc

ount

s re

ceiv

able

Volu

ntar

y co

ntrib

utio

nsSc

hedu

le 5

.2 2

210

-

- 2

210

9

19

Inte

r-fun

d ba

lanc

esN

ote

4 (d

) 1

1 40

3 5

0 82

2 -

62

225

65

008

Oth

erN

ote

4 (a

) 1

041

2

842

-

3 8

83

2 1

46

Bala

nces

rela

ting

to p

roje

cts

fund

ed b

y do

nors

Not

e 4

(e)

- 3

2 73

8 -

32

738

-

Oth

er a

sset

sN

ote

4 (b

) 1

54

141

-

295

7

99

Tota

l ass

ets

95

490

133

923

-

229

413

1

67 2

60

Liabi

litie

s

Paym

ents

or c

ontri

butio

ns re

ceiv

ed in

adv

ance

Sche

dule

5.2

17

- -

17

10

Unl

iqui

date

d ob

ligat

ions

29

710

43

284

- 7

2 99

4 2

8 60

6

Acc

ount

s pa

yabl

e

Inte

r-fun

d ba

lanc

esN

ote

4 (d

) 1

4 42

0 4

9 05

2 -

63

472

60

020

Oth

er

Not

e 4

(c)

2 7

28

4 1

30

- 6

858

5

514

Bala

nces

rela

ting

to p

roje

cts

fund

ed b

y do

nors

Not

e 4

(e)

- -

- -

1 7

73

Oth

er li

abili

ties

- -

- -

104

Tota

l lia

bilit

ies

46

875

96

466

- 1

43 3

41

96

027

Rese

rves

and

fund

bal

ance

s

Fina

ncia

l res

erve

Not

e 2

(o)

2 4

19

--

2 4

19

2 4

19

Ope

ratin

g re

serv

esN

ote

2 (p

) 7

65

1 8

02

- 2

567

2

192

Earm

arke

d fu

nd b

alan

ceN

ote

2 (q

) 2

8 01

2 2

9 34

4 -

57

356

52

143

Cum

ulat

ive

surp

lus

Not

e 4

(f) 1

7 41

9 6

311

-

23

730

14

479

Tota

l res

erve

s an

d fu

nd b

alan

ces

48

615

37

457

- 8

6 07

2 7

1 23

3

Tota

l lia

bilit

ies,

rese

rves

and

fund

bal

ance

s 9

5 49

0 1

33 9

23

- 2

29 4

13

167

260

156

UN

RW

A:

State

men

t 1

United

Nations

Rel

ief

and W

ork

s A

gen

cy

for

Pale

stin

e Ref

ugee

s in

the

Nea

r Ea

st

Stat

emen

t of I

ncom

e, E

xpen

ditu

re a

nd C

hang

es

in W

orki

ng C

apita

l and

Fun

d Ba

lanc

es

for t

he Y

ear 2

006

(in

USD

)

Bie

nniu

m

2004

-200

5 A

ll Fu

ndsa

D

etai

ls N

ote

Reg

ular

Bud

get F

unds

N

on-R

egul

ar B

udge

t Fun

ds

All

Fund

s

Mic

ro fin

ance

an

d M

icro

-en

terp

rise

Pro

gram

mef

G

rand

Tot

al

Cas

h In

-Kin

d

Reg

ular

B

udge

t Fun

ds

Tota

l E

mer

genc

y A

ppea

l P

roje

ctsb

Non

-Reg

ular

Bu

dget

Fun

ds

Tota

l

INCO

ME

1 (f)

Contr

ibutions:

729

778

758

C

ontri

butio

ns b

y G

over

nmen

ts

2

39 0

43 3

18

1 7

17 7

38

240

761

056

1

09 8

17 9

50

37

225

968

147

043

918

3

87 8

04 9

74

- 3

87 8

04 9

74

244

881

597

C

ontri

butio

ns b

y In

ter-G

over

nmen

ts

1

04 4

06 0

23

1 1

66 9

44

105

572

968

2

9 79

8 76

1 2

8 52

0 25

1 5

8 31

9 01

2 1

63 8

91 9

79

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63 8

91 9

79

37

644

788

Con

tribu

tions

by

Uni

ted

Nat

ions

Age

ncie

s 2

0 55

1 75

3 1

111

129

2

1 66

2 88

2 3

655

582

1

85 5

09

3 8

41 0

91

25

503

973

- 2

5 50

3 97

3

17

414

587

Con

tribu

tions

by

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-Gov

ernm

ents

5

686

4

57 6

05

463

291

6

370

995

6

195

195

1

2 56

6 19

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0 -

13

029

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57 5

94

Con

tribu

tions

by

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er S

ourc

es

5

2

30 9

31

648

717

8

79 6

48

288

301

4

4 23

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32 5

34

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82

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212

182

1 0

32 9

77 3

25

Tota

l Contr

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3

64 2

37 7

11

5 1

02 1

33

369

339

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1

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31 5

90

72

171

155

222

102

745

5

91 4

42 5

88

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91 4

42 5

88

Oth

er Inco

me

10

341

262

Mis

cella

neou

s In

com

e 6

7

018

817

-

7 0

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17

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78

222

378

7

241

195

3

488

968

1

0 73

0 16

3

(18

573

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Exch

ange

Gai

ns/(

Loss

es)

7

8 8

33 0

33

- 8

833

033

-

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8 8

33 0

33

20

917

8 8

53 9

50

(8 2

31 9

40)

Tota

l Oth

er Inco

me

15

851

851

- 1

5 85

1 85

1 -

222

378

2

22 3

78

16

074

229

3 5

09 8

85

19

584

114

1 0

24 7

45 3

85

TOTA

L IN

CO

ME

380

089

561

5

102

133

3

85 1

91 6

94

149

931

590

7

2 39

3 53

3 2

22 3

25 1

23

607

516

817

3

509

885

6

11 0

26 7

02

(987

495

326

)EX

PEN

DIT

UREd

1

(g)

(411

751

049

) (6

630

598

) (4

18 3

81 6

47)

(139

018

496

) (4

2 50

7 86

9) (1

81 5

26 3

64)

(599

908

011

) (4

796

079

) (6

04 7

04 0

90)

37

250

059

EXCES

S (S

HO

RTF

ALL

) O

F IN

CO

ME

OV

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XPEN

DIT

URE

(31

661

488)

(1 5

28 4

65)

(33

189

953)

10

913

094

29

885

664

40

798

759

7 6

08 8

06

(1 2

86 1

94)

6 3

22 6

12

19

936

439

Adj

ustm

entse

2

&16

(1

67 1

74 1

11)

1 6

56 4

27

(165

517

684

) (8

580

870

) 1

542

219

(7

038

651

) (1

72 5

56 3

35)

(146

041

) (1

72 7

02 3

76)

57

186

498

NET

RES

ULT

FO

R T

HE

YEA

R

1.1

0 (1

98 8

35 5

99)

127

961

(1

98 7

07 6

37)

2 3

32 2

25

31

427

883

33

760

108

(164

947

530

) (1

432

235

) (1

66 3

79 7

65)

32

253

893

Wor

king

Cap

ital a

s at

01.

01.2

006

38

654

463

- 3

8 65

4 46

3 -

- -

38

654

463

- 3

8 65

4 46

3

77

343

359

Fund

Bal

ance

s as

at 0

1.01

.200

6 1

9 91

0 89

0 4

98 9

67

20

409

857

71

100

194

37

821

190

108

921

384

1

29 3

31 2

41

- 1

29 3

31 2

41

(2 4

09 8

64)

Cha

nge

in R

etai

ned

Earn

ings

MM

P &

MC

SP 0

1.01

.200

6 -

- -

- 5

10 7

84

510

784

5

10 7

84

(4 1

22 6

02)

(3 6

11 8

18)

38

654

463

Work

ing C

apital a

s at

31.1

2.2

006

(150

001

472

) -

(150

001

472

) -

- -

(150

001

472

) -

(150

001

472

)

129

331

241

Fu

nd B

ala

nce

s as

at

31.1

2.2

006

9 7

31 2

26

626

928

1

0 35

8 15

5 7

3 43

2 41

9 6

9 66

2 11

4 1

43 0

94 5

33

153

452

687

(4

122

602

) 1

49 3

30 0

85

(3 6

11 8

18)

Ret

ain

ed E

arn

ings

MM

P &

MCSP

for

the

Year

2006

- -

- -

97

743

97

743

97

743

(1 4

32 2

35)

(1 3

34 4

92)

164

373

886

To

tal W

ork

ing C

apital a

nd F

und B

ala

nce

s as

at

31.1

2.2

006*

(140

270

246

) 6

26 9

28

(139

643

317

) 7

3 43

2 41

9 6

9 75

9 85

7 1

43 1

92 2

76

3 5

48 9

58

(5 5

54 8

37)

(2 0

05 8

79)

a Pl

ease

refe

r to

Not

e 18

b

Plea

se re

fer t

o St

atem

ent 6

c Pl

ease

refe

r to

App

endi

x 4

d Pl

ease

refe

r to

App

endi

x 1,

2 a

nd 3

e Pl

ease

refe

r to

Stat

emen

t 5

f Ple

ase

refe

r to

note

18

and

MM

P Fi

nanc

ial S

tate

men

ts in

Par

t III

* Pl

ease

refe

r to

note

No.

16.

3 b

Financial section

157

UN

RW

A:

State

men

t 2

United

Nations

Rel

ief

and W

ork

s A

gen

cy

for

Pale

stin

e Ref

ugee

s in

the

Nea

r Ea

st

Ass

ets

and

Liabi

litie

s St

atem

ent

As

at 3

1 D

ecem

ber 2

006

(i

n U

SD)

As

at 3

1 D

ecem

ber 2

005

All

Fund

sa

PA

RTIC

ULA

RS

Not

e

Reg

ular

Bud

get F

unds

N

on-R

egul

ar B

udge

t Fun

ds

All

Fund

s

Mic

rofin

ance

an

d M

icro

-en

terp

rise

Prog

ram

mec

G

rand

Tot

al

Cas

h In

-Kin

d

Reg

ular

Bu

dget

Fun

ds

Tota

l E

mer

genc

y A

ppea

l P

roje

ctsb

Non

-Reg

ular

Bu

dget

Fun

ds

Tota

l

ASS

ETS:

177

541

057

C

ash

on H

and

and

in B

anks

1

0 4

5 09

5 87

9 (1

10 5

78)

44

985

300

86

328

317

59

733

698

146

062

014

1

91 0

47 3

15

10

372

931

201

420

246

65

638

359

Con

tribu

tion

Rece

ivab

le

11&

16

19

281

212

712

267

1

9 99

3 47

9 2

2 83

1 93

2 2

4 18

1 29

8 4

7 01

3 23

0 6

7 00

6 70

9 2

75 8

14

67

282

523

32

499

581

Acc

ount

s Re

ceiv

able

net

of p

rovi

sion

for

12

21

426

582

975

2

1 42

7 55

7 2

981

251

2

895

203

5

876

453

2

7 30

4 01

0 6

565

168

3

3 86

9 17

8

unco

llect

able

am

ount

s

4 5

92 1

89

Prep

aid

expe

nses

and

adv

ance

s to

sup

plie

rs

3 9

98 9

39

24

265

4 0

23 2

04

5 5

23 1

70

516

861

6

040

031

1

0 06

3 23

5 1

69 9

87

10

233

222

628

887

Pr

oduc

tion

Uni

ts In

vent

ory

13

693

651

-

693

651

-

- -

693

651

-

693

651

- D

ue fr

om M

MP

356

569

-

356

569

-

- -

356

569

(3

56 5

69)

-

280 9

00 0

73

TO

TAL

ASS

ETS

90 8

52 8

32

626 9

28

91 4

79 7

61

117 6

64 6

70

87 3

27 0

59

2

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91 7

29

2

96 4

71 4

90

1

7 0

27 3

31

3

13 4

98 8

21

LIA

BIL

ITIE

S:

26

822

786

Acc

ount

s Pa

yabl

e 1

4 2

3 73

2 08

5 -

23

732

085

- 6

06 1

69

606

169

2

4 33

8 25

3 5

46 2

63

24

884

516

- A

rea

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f Acc

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Ter

min

atio

n Lia

bilit

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2

169

251

877

-

169

251

877

-

- -

169

251

877

-

169

251

877

52

444

368

Rese

rve

for U

nliq

uida

ted

Budg

et C

omm

itmen

ts 1

5 3

7 40

2 46

3 -

37

402

463

37

732

251

14

683

014

52

415

265

89

817

728

- 8

9 81

7 72

8

(1 1

32 1

39)

Due

To/

(Fro

m) A

rea

Staf

f Pro

vide

nt F

und

4

716

554

-

716

554

-

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716

554

-

716

554

19

481

902

Def

erre

d In

com

e 2

0 10

0 -

20

100

6 5

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00

- 6

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6

520

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8

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16

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TAL

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31 1

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232

251

15

289

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521

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290 6

44 5

12

2

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63

2

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75

RES

ERV

ES:

38

654

463

Wor

king

Cap

ital

(150

001

472

) -

(150

001

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) -

- -

(150

001

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(150

001

472

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129

331

241

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nd B

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26

626

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1

0 35

8 15

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3 43

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9 66

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452

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122

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MM

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- 9

7 74

3 9

7 74

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432

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334

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18

909

270

Acc

umul

ated

Res

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— M

CSP

& M

MP

- -

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2 2

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20

2 2

78 0

20

2 2

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20

19

660

905

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TO

TAL

LIA

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ND

RES

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90 8

52 8

32

626 9

28

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61

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64 6

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27 0

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2

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31

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a Pl

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Not

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b

Plea

se re

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o St

atem

ent 7

c

Plea

se re

fer t

o M

MP

Fina

ncia

l Sta

tem

ents

in P

art I

II

158

UN

HCR:

State

men

t I

Offi

ce o

f th

e U

nited

Nations

Hig

h C

om

mis

sioner

for

Ref

ugee

s St

atem

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f Inc

ome

and

Expe

nditu

re a

nd C

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es in

Res

erve

s an

d Fu

nd B

alan

ces

for t

he y

ear e

nded

31

Dec

embe

r 200

6 (in

thou

sand

s of

Uni

ted

Stat

es d

olla

rs)

Sche

dule

or

Not

e Re

fere

nce

Wor

king

Cap

ital

and

Gua

rant

ee

Fund

Ann

ual

Prog

ram

me

Fund

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eral

UN

Reg

ular

Bu

dget

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d

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lem

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nd, G

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al

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27

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27

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Can

cella

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Sch

50

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92

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15 0

60

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sfer

Sup

plem

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Ann

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eN

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2 (d

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(a)

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00

0

Tran

sfer

to/f

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oth

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nds

Not

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4 (b

) (c)

(d)

(14

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21 8

020

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13)

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00)

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0

RES

ERV

ES A

ND

FU

ND

BA

LAN

CES

,

BEG

INN

ING

OF

YEA

R37

755

7 77

473

658

731

7 42

220

893

133

310

141

740

RES

ERV

ES A

ND

FU

ND

BA

LAN

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EN

D O

F Y

EAR

50

00

05

8 8

40

05

5 4

02

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24 1

60

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78

133 3

10

Financial section

159

UN

HCR:

State

men

t II

Offi

ce o

f th

e U

nited

Nations

Hig

h C

om

mis

sioner

for

Ref

ugee

s St

atem

ent o

f Ass

ets,

Lia

bilit

ies,

Res

erve

s an

d Fu

nd B

alan

ces

as a

t 31

Dec

embe

r 200

6 (in

thou

sand

s of

Uni

ted

Stat

es d

olla

rs)

Sche

dule

or

Not

e Re

fere

nce

Wor

king

Cap

ital

and

Gua

rant

ee F

und

Ann

ual

Prog

ram

me

Fund

, Gen

eral

UN

Reg

ular

Bu

dget

Fun

d

Supp

lem

enta

ry

Prog

ram

mes

Fu

nd, G

ener

al

Juni

or

Prof

essi

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rs F

und,

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ote

2 (d

)

Med

ical

In

sura

nce

Plan

, N

ote

2 (d

)20

0620

05

ASS

ETS:

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h an

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5

Acc

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Sch

1, 2

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e 10

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LIA

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3, 4

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RES

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TOTA

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FU

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50

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71

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44

243 5

25

160

ITC:

State

men

t I

Inte

rnational T

rade

Cen

tre

UN

CTA

D/W

TO

Stat

emen

t of i

ncom

e an

d ex

pend

iture

and

cha

nges

in re

serv

es a

nd fu

nd b

alan

ces

fo

r the

twel

ve-m

onth

per

iod

of th

e bi

enni

um 2

006-

2007

end

ing

31 D

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ands

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nite

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dol

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Gen

eral

fund

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nica

l co

oper

atio

n ac

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me

supp

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and

othe

r fun

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bute

dlia

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fund

sel

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f per

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1 6

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a Se

e no

te 2

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Incl

udes

UN

DP

finan

ced

proj

ects,

whi

ch w

ere

show

n se

para

tely

in p

revi

ous

finan

cial

sta

tem

ents.

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pres

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liabi

litie

s fo

r end

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ce a

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ost-r

etire

men

t ben

efits

whi

ch h

ave

not b

een

distr

ibut

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the

resp

ectiv

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nds.

See

Not

e 7.

d C

ompa

rativ

e fig

ures

hav

e be

en re

clas

sifie

d to

con

form

to c

urre

nt p

rese

ntat

ion.

e Se

e no

te 3

(a).

f Re

pres

ents

accr

ued

liabi

litie

s fo

r afte

r-ser

vice

hea

lth in

sura

nce

(ASH

I) co

sts o

f $41

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unu

sed

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tion

days

of $

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0,00

0 an

d fo

r rep

atria

tion

bene

fits

of $

5,40

0,00

0. T

hese

wer

e pr

evio

usly

dis

clos

ed in

the

note

s an

d ar

e no

w re

flect

ed in

the

finan

cial

sta

tem

ents

as li

abili

ties.

See

Not

e 7.

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

fina

ncia

l sta

tem

ents.

Financial section

161

ITC:

State

men

t II

Inte

rnational T

rade

Cen

tre

UN

CTA

D/W

TO

Stat

emen

t of a

sset

s, li

abili

ties

and

rese

rves

and

fund

bal

ance

s as

at 3

1 D

ecem

ber 2

006a

(T

hous

ands

of U

nite

d St

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dol

lars

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Gen

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fund

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Prog

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ts Re

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s an

d ot

her f

unds

U

ndis

tribu

ted

liabi

litie

scA

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nds

el

imin

atio

nsTo

tal

200

6 To

tal

2004

d

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ets

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h an

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l res

erve

s and f

und b

ala

nce

s 1

62

2

33

45

7

2 1

19

3

05

9

(48 6

87)

- (

8 4

30)

28 9

55

Tota

l lia

bili

ties

, re

serv

es a

nd f

und b

ala

nce

s 8

49

7

45

63

8

2 4

48

4

19

9

-

(2 3

50)

58 4

32

48 8

13

a Se

e no

te 2

.b

Incl

udes

UN

DP

finan

ced

proj

ects,

whi

ch w

ere

show

n se

para

tely

in p

revi

ous

finan

cial

sta

tem

ents.

c Re

pres

ents

liabi

litie

s fo

r end

-of-s

ervi

ce a

nd p

ost-r

etire

men

t ben

efits

whi

ch h

ave

not b

een

distr

ibut

ed to

the

resp

ectiv

e fu

nds.

See

Not

e 7.

d C

ompa

rativ

e fig

ures

hav

e be

en re

clas

sifie

d to

con

form

to c

urre

nt p

rese

ntat

ion.

e Re

pres

ents

shar

e of

the

Uni

ted

Nat

ions

Offi

ces

away

from

Hea

dqua

rters

(OA

H) c

ash

pool

s an

d co

mpr

ises

cas

h an

d te

rm d

epos

its o

f $35

,716

,639

, sho

rt-te

rm in

vestm

ents

of $

6,95

1,91

1 (m

arke

t val

ue $

6,95

1,91

1),

long

-term

inve

stmen

ts of

$1,

378,

358

(mar

ket v

alue

$1,

367,

962)

and

acc

rued

inte

rest

rece

ivab

le o

f $35

4,21

5.f

Repr

esen

ts ac

crue

d lia

bilit

ies

for a

fter-s

ervi

ce h

ealth

insu

ranc

e (A

SHI)

costs

of $

41,1

87,0

00, f

or u

nuse

d va

catio

n da

ys o

f $2,

100,

000

and

for r

epat

riatio

n be

nefit

s of

$5,

400,

000.

The

se w

ere

prev

ious

ly d

iscl

osed

in th

e no

tes

and

are

now

refle

cted

in th

e fin

anci

al s

tate

men

ts as

liab

ilitie

s. S

ee N

ote

7.

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

fina

ncia

l sta

tem

ents.

162

UN

U:

State

men

t I

United

Nations

Univ

ersi

ty a

Stat

emen

t of i

ncom

e an

d ex

pend

iture

and

cha

nges

in re

serv

es a

nd fu

nd b

alan

ces

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

UN

U C

entre

O

pera

ting

Fund

UN

U H

eadq

uarte

rs

Build

ing

O

pera

ting

Fund

b

UN

U-W

IDER

O

pera

ting

Fu

nd

UN

U-IN

TEC

H

Ope

ratin

g

Fund

UN

U-II

ST

Ope

ratin

g

Fund

UN

U-IN

RA

Ope

ratin

g

Fund

UN

U-B

IOLA

C

Ope

ratin

g

Fund

UN

U-IA

S O

pera

ting

Fu

nd

Inco

me

Volu

ntar

y co

ntrib

utio

ns3

627

1 04

5 2

258

2 59

0 20

1 19

-

4 0

39

Inte

rest

inco

me

515

- 12

9 42

29

6

- -

Inco

me

for s

ervi

ces

rend

ered

7 1

456

- -

- -

- -

Oth

er/m

isce

llane

ous

inco

me:

Sale

s in

com

e an

d ro

yalti

es fr

om p

ublic

atio

ns18

0 -

11

1 -

- -

-

Mis

cella

neou

s in

com

e52

-

150

220

2 -

- 2

3

Tota

l inco

me

4 3

81

2

50

1

2 5

48

2

85

3

232

25

-

4 0

62

Expen

diture

Staf

f and

oth

er p

erso

nnel

cos

ts8

107

206

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7 1

475

1 25

6 53

6 -

1 0

13

Trav

el

484

- 36

16

80

72

-

137

Con

tract

ual s

ervi

ces

176

3 29

24

-

14

- 2

6

Ope

ratin

g ex

pens

es51

5 10

20

3 20

0 17

2 35

-

679

Acq

uisi

tions

133

- 32

40

29

6

- 1

2

UN

U h

eadq

uarte

rs b

uild

ing

- 2

040

- -

- -

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Rese

arch

and

trai

ning

net

wor

ks, a

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isse

min

atio

n3

979

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1 09

9 1

042

52

493

2

715

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l ex

pen

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13

39

4

2 2

59

4

06

5

2 8

54

2 5

79

715

493

4 5

82

Exce

ss (

short

fall)

of

inco

me

ove

r ex

pen

diture

(9 0

13

)2

42

(1

51

7)

(1)

(2 3

47)

(690)

(493)

(520)

Prov

isio

nal s

avin

gs o

n, o

r can

cella

tion

of, p

rior p

erio

d’s

oblig

atio

ns1

497

- 16

2 50

21

1 9

6 8

323

Tran

sfer

s (to

) fro

m o

ther

fund

s6

434

- 2

292

927

1 85

7 1

680

1 42

6 -

Oth

er a

djus

tmen

ts to

rese

rves

and

fund

bal

ance

s -

- -

- -

- -

-

Rese

rves

and

fund

bal

ance

s, b

egin

ning

of p

erio

d8

471

- 2

217

1 09

8 1

287

(818

)(6

26)

1 27

5

Res

erve

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s, e

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f per

iod

7 3

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3

15

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1 0

08

268

315

1 0

78

Financial section

163

UN

U:

State

men

t I (c

ontin

ued)

United

Nations

Univ

ersi

ty a

Stat

emen

t of i

ncom

e an

d ex

pend

iture

and

cha

nges

in re

serv

es a

nd fu

nd b

alan

ces

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

UN

U-IL

I O

pera

ting

Fund

UN

U-IN

WEH

O

pera

ting

Fu

nd

UN

U-C

RIS

Ope

ratin

g

Fund

UN

U-E

HS

Ope

ratin

g

Fund

UN

U-II

GH

O

pera

ting

Fu

ndc

UN

U-JA

F O

pera

ting

Fu

nd

UN

U-IC

DF

Ope

ratin

g

Fund

UN

U-R

CF

Ope

ratin

g

Fund

Inco

me

Volu

ntar

y co

ntrib

utio

ns50

0 1

829

186

2 01

3 80

0 -

- -

Inte

rest

inco

me

- 67

-

- -

- -

-

Inco

me

for s

ervi

ces

rend

ered

- -

- -

- -

- -

Oth

er/m

isce

llane

ous

inco

me:

Sale

s in

com

e an

d ro

yalti

es fr

om p

ublic

atio

ns -

- -

- -

- -

-

Mis

cella

neou

s in

com

e -

1 -

202

- -

- -

Tota

l inco

me

50

0

1 8

97

1

86

2

21

5

800

-

-

-

Expen

diture

Staf

f and

oth

er p

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nnel

cos

ts38

6 54

5 17

7 1

849

- -

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Trav

el

116

154

9 66

-

- -

-

Con

tract

ual s

ervi

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22

19

6 69

-

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-

Ope

ratin

g ex

pens

es13

0 47

-

130

- -

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Acq

uisi

tions

92

12

- 63

-

- -

-

UN

U h

eadq

uarte

rs b

uild

ing

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- -

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Rese

arch

and

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ning

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ks, a

nd d

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n26

1 1

206

- 67

0 -

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Tota

l ex

pen

diture

1 0

07

1

98

3

19

2

2 8

47

-

-

-

-

Exce

ss (

short

fall)

of

inco

me

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r ex

pen

diture

(5

07

) (

86

) (

6)

(6

32

) 8

00

-

-

-

Prov

isio

nal s

avin

gs o

n, o

r can

cella

tion

of, p

rior p

erio

d’s

oblig

atio

ns -

140

3

4

6 -

- -

-

Tran

sfer

s (to

) fro

m o

ther

fund

s78

-

- 1

4 28

0 -

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Oth

er a

djus

tmen

ts to

rese

rves

and

fund

bal

ance

s -

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-

Rese

rves

and

fund

bal

ance

s, b

egin

ning

of p

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d42

3 89

28

21

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1 94

6 97

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500

Res

erve

s and f

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ala

nce

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f per

iod

(6

) 1

43

2

5

(3

59

) 1

080

1 9

46

973

2 5

00

164

UN

U:

State

men

t I (c

oncl

uded

)U

nited

Nations

Univ

ersi

ty a

Stat

emen

t of i

ncom

e an

d ex

pend

iture

and

cha

nges

in re

serv

es a

nd fu

nd b

alan

ces

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (T

hous

ands

of U

nite

d St

ates

dol

lars

)

Ope

ratin

g

Fund

s En

dow

men

t Fu

ndTr

ust

Fund

Und

istri

bute

d lia

bilit

iesd

Tota

l 200

6To

tal 2

004

Inco

me

Volu

ntar

y co

ntrib

utio

ns 1

9 10

7 4

639

4

79

- 2

4 22

5e

18

269

Inte

rest

inco

me

788

2

5 74

0f

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26

528

12

403

Inco

me

for s

ervi

ces

rend

ered

1 4

63

- -

- 1

463

1

408

Oth

er/m

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llane

ous

inco

me:

Sale

s in

com

e an

d ro

yalti

es fr

om p

ublic

atio

ns 1

92

- -

- 1

92

224

Mis

cella

neou

s in

com

e 6

50

12

312g

3

- 1

2 96

5 1

8 09

4

Tota

l inco

me

22

20

0

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69

1

482

-

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73

50 3

98

Expen

diture

Staf

f and

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7 55

7 -

433

-

17

990

18

130

Trav

el

1 1

70

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1 2

01

1 1

91

Con

tract

ual s

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ces

388

-

97

- 4

85

775

Ope

ratin

g ex

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es 2

121

-

34

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155

2

650

Acq

uisi

tions

419

-

2

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21

378

UN

U h

eadq

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2 0

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040

3

282

Rese

arch

and

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ning

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nd d

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min

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n 1

3 27

5 -

364

-

13

639

14

291

Tota

l ex

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diture

36

97

0

-

961

-

37 9

31

40 6

97

Exce

ss (

short

fall)

of

inco

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r ex

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diture

(1

4 7

70

) 4

2 6

91

(

479)

-

27 4

42

9 7

01

Prov

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nal s

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n, o

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of, p

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ns 2

536

-

254

-

2 7

90

2 5

53

Tran

sfer

s (to

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sh 1

4 98

8 (1

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8) -

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-

Oth

er a

djus

tmen

ts to

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rves

and

fund

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si -

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(6 0

67)

(6 0

67)

-

Rese

rves

and

fund

bal

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s, b

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of p

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d 1

9 07

6 2

78 9

31

1 5

35

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99 5

42

304

934

Res

erve

s and f

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nce

s, e

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f per

iod

21

83

0

30

6 6

34

1

310

(6 0

67)

323 7

07

317 1

88

a Se

e no

tes

2, 3

and

4.

b Th

e U

NU

Hea

dqua

rters

Bui

ldin

g O

pera

ting

Fund

was

pre

viou

sly a

ccou

nted

for i

n th

e U

NU

Cen

tre O

pera

ting

Fund

. In

orde

r to

impr

ove

the

pres

enta

tion,

effe

ctiv

e 1

Janu

ary

2006

, thi

s fu

nd is

sho

wn

sepa

rate

ly.c

The

UN

U-II

GH

Ope

ratin

g Fu

nd in

Kua

la L

umpu

r, M

alay

sia

whi

ch c

ontri

bute

s to

the

reso

lutio

n of

glo

bal h

ealth

issu

es, p

artic

ular

ly in

rela

tion

to th

e ne

eds

of d

evel

opin

g co

untri

es, w

as e

stabl

ishe

d ef

fect

ive

from

1 Ja

nuar

y 20

06. T

he o

pera

tions

of U

NU

-IIG

H a

re fu

nded

by

volu

ntar

y co

ntrib

utio

ns fr

om th

e G

over

nmen

t of M

alay

sia.

d Re

pres

ents

liabi

litie

s fo

r end

-of-s

ervi

ce a

nd p

ost-r

etire

men

t ben

efits

whi

ch h

ave

not b

een

distr

ibut

ed to

the

resp

ectiv

e fu

nds.

See

not

e 5.

e Re

pres

ents

volu

ntar

y co

ntrib

utio

ns fr

om g

over

nmen

ts of

$20

,148

,518

and

oth

er v

olun

tary

con

tribu

tions

in th

e am

ount

of $

4,07

6,21

5.f

Repr

esen

ts in

tere

st in

com

e of

$9,

555,

915

and

net g

ain

on s

ale

of s

ecur

ities

of $

16,8

71,5

46 le

ss in

vestm

ent m

anag

emen

t fee

s of

$68

7,75

9.g

Repr

esen

ts ne

t gai

n on

fore

ign

exch

ange

reva

luat

ion

of $

12,3

11,5

84.

h Se

e no

te 2

(l) (

iv).

i Re

pres

ents

accr

ued

liabi

litie

s fo

r afte

r-ser

vice

hea

lth in

sura

nce

(ASH

I) co

sts o

f $3,

626,

000,

for u

nuse

d va

catio

n da

ys o

f $70

0,42

3, a

nd fo

r rep

atria

tion

bene

fits

of $

1,74

1,10

8. T

hese

wer

e pr

evio

usly

dis

clos

ed in

the

note

s an

d ar

e no

w re

flect

ed in

the

finan

cial

sta

tmen

ts as

liab

ilitie

s. S

ee n

ote

5.

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

fina

ncia

l sta

tem

ents.

Financial section

165

UN

U:

State

men

t II

United

Nations

Univ

ersi

ty a

Stat

emen

t of a

sset

s, li

abili

ties,

rese

rves

and

fund

bal

ance

s as

at 3

1 D

ecem

ber 2

006

(Tho

usan

ds o

f Uni

ted

Stat

es d

olla

rs)

UN

U C

entre

O

pera

ting

Fund

UN

U H

eadq

uarte

rs

Build

ing

Ope

ratin

g Fu

ndb

UN

U-W

IDER

O

pera

ting

Fund

UN

U-IN

TEC

H

Ope

ratin

g Fu

nd

UN

U-II

ST

Ope

ratin

g Fu

nd

UN

U-IN

RA

Ope

ratin

g Fu

nd

UN

U-B

IOLA

C

Ope

ratin

g Fu

nd

UN

U-IA

S O

pera

ting

Fund

Ass

ets

Cas

h an

d te

rm d

epos

its 6

156

-

4 1

53

1 9

64

1 6

79

- -

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Shor

t-ter

m in

vestm

ents

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- -

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Long

-term

inve

stmen

ts -

- -

- -

- -

-

OA

H c

ash

pool

s 7

123

-

522

6

52

410

1

20

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Volu

ntar

y co

ntrib

utio

ns re

ceiv

able

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Inte

r-fun

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lanc

es re

ceiv

able

126

-

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280

9

96

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Oth

er a

ccou

nts

rece

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le 7

96

55

47

146

8

9 9

2

1

94

Inte

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g 7

526

5

50

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Def

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27

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79

Tota

l ass

ets

21

95

4

60

5

4 7

29

2

77

4

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10

998

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44

Liabili

ties

Unl

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date

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ions

2 2

98

231

8

77

353

5

30

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110

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Inte

r-fun

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lanc

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ayab

le 5

419

-

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Oth

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paya

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1 1

20

132

4

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Inte

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47

570

1

021

5

71

-

End-

of-se

rvic

e an

d po

st-re

tirem

ent l

iabi

litie

s -

- -

- -

- -

-

Tota

l lia

bili

ties

14

56

5

36

3

1 5

75

7

00

1

203

1 1

42

683

1 2

66

Res

erve

s and f

und b

ala

nce

s

Fund

prin

cipa

l -

- -

- -

- -

-

Bala

nces

rela

ted

to p

roje

cts

fund

ed b

y do

nors

4 5

98

- 8

49

296

1

98

- -

595

Cum

ulat

ive

surp

lus

(defi

cit)

2 7

91

242

2

305

1

778

8

10

268

3

15

483

Tota

l res

erve

s and f

und b

ala

nce

s 7

38

9

24

2

3 1

54

2

07

4

1 0

08

268

315

1 0

78

Tota

l lia

bili

ties

, re

serv

es a

nd f

und b

ala

nce

s 2

1 9

54

6

05

4

72

9

2 7

74

2 2

11

1 4

10

998

2 3

44

166

UN

U:

State

men

t II

(con

tinue

d)

United

Nations

Univ

ersi

ty a

Stat

emen

t of a

sset

s, li

abili

ties,

rese

rves

and

fund

bal

ance

s as

at 3

1 D

ecem

ber 2

006

(Tho

usan

ds o

f Uni

ted

Stat

es d

olla

rs)

UN

U-IL

I O

pera

ting

Fu

nd

UN

U-IN

WEH

O

pera

ting

Fu

nd

UN

U-C

RIS

Ope

ratin

g

Fund

UN

U-E

HS

Ope

ratin

g

Fund

UN

U-II

GH

O

pera

ting

Fu

ndc

UN

U-JA

F O

pera

ting

Fu

nd

UN

U-IC

DF

Ope

ratin

g Fu

nd

UN

U-R

CF

Ope

ratin

g Fu

nd

Ass

ets

Cas

h an

d te

rm d

epos

its 1

7 2

319

-

2 5

05

- -

- -

Shor

t-ter

m in

vestm

ents

- -

- -

- -

- -

Long

-term

inve

stmen

ts -

- -

- -

- -

-

OA

H c

ash

pool

s -

- -

- -

- -

-

Volu

ntar

y co

ntrib

utio

ns re

ceiv

able

- -

186

-

- -

- -

Inte

r-fun

d ba

lanc

es re

ceiv

able

145

-

- -

- 1

946

9

73

2 5

00

Oth

er a

ccou

nts

rece

ivab

le 3

43

18

2

104

-

- -

-

Inte

r-offi

ce tr

ansa

ctio

ns p

endi

ng p

roce

ssin

g -

- -

- 1

080

-

- -

Def

erre

d ch

arge

s an

d ot

her a

sset

s 2

4

1 -

- -

- -

-

Tota

l ass

ets

50

7

2 3

78

1

88

2

60

9

1 0

80

1 9

46

973

2 5

00

Liabili

ties

Unl

iqui

date

d ob

ligat

ions

373

5

88

4

926

-

- -

-

Inte

r-fun

d ba

lanc

es p

ayab

le -

- -

- -

- -

-

Oth

er a

ccou

nts

paya

ble

4

1

- -

- -

- -

Inte

r-offi

ce tr

ansa

ctio

ns p

endi

ng p

roce

ssin

g 1

36

1 6

46

159

2

042

-

- -

-

End-

of-se

rvic

e an

d po

st-re

tirem

ent l

iabi

litie

s -

- -

- -

- -

-

Tota

l lia

bili

ties

51

3

2 2

35

1

63

2

96

8

-

-

-

-

Res

erve

s and f

und b

ala

nce

s

Fund

prin

cipa

l -

- -

- -

- -

-

Bala

nces

rela

ted

to p

roje

cts

fund

ed b

y do

nors

- 6

11

- 5

68

- -

- -

Cum

ulat

ive

surp

lus

(defi

cit)

(6)

(468

) 2

5 (9

27)

1 0

80

1 9

46

973

2

500

Tota

l res

erve

s and f

und b

ala

nce

s (

6)

14

3

25

(

35

9)

1 0

80

1 9

46

973

2 5

00

Tota

l lia

bili

ties

, re

serv

es a

nd f

und b

ala

nce

s 5

07

2

37

8

18

8

2 6

09

1

080

1 9

46

973

2 5

00

Financial section

167

UN

U:

State

men

t II

(con

clud

ed)

United

Nations

Univ

ersi

ty a

Stat

emen

t of a

sset

s, li

abili

ties,

rese

rves

and

fund

bal

ance

s as

at 3

1 D

ecem

ber 2

006

(Tho

usan

ds o

f Uni

ted

Stat

es d

olla

rs)

Ope

ratin

g

Fund

s En

dow

men

t Fu

ndTr

ust

Fund

Und

istri

bute

d lia

bilit

iesd

All

fund

s

elim

inat

ion

Tota

l 20

06To

tal

2004

e

Ass

ets

Cas

h an

d te

rm d

epos

its 1

8 79

3 1

2 33

1 5

60

- -

31

684

25

082

Shor

t-ter

m in

vestm

ents

- -

- -

- -

7 6

92

Long

-term

inve

stmen

ts -

289

325

f -

- -

289

325

2

67 0

18

OA

H c

ash

pool

s 8

827

g -

- -

- 8

827

1

7 03

8

Volu

ntar

y co

ntrib

utio

ns re

ceiv

able

186

4

751

-

- -

4 9

37

5 8

08

Inte

r-fun

d ba

lanc

es re

ceiv

able

7 9

66

4 1

57

- -

(12

123)

- -

Oth

er a

ccou

nts

rece

ivab

le 1

805

2

774

3

40

- -

4 9

19

4 3

12

Inte

r-offi

ce tr

ansa

ctio

ns p

endi

ng p

roce

ssin

g 1

1 22

7 -

1 6

61

- (1

2 88

8) -

-

Def

erre

d ch

arge

s an

d ot

her a

sset

s 4

02

- 2

-

- 4

04

148

Tota

l ass

ets

49

20

6

31

3 3

38

2

56

3

-

(25 0

11)

340 0

96

327 0

98

Liabili

ties

Unl

iqui

date

d ob

ligat

ions

7 4

49

- 3

28

- -

7 7

77

8 2

98

Inte

r-fun

d ba

lanc

es p

ayab

le 5

419

6

704

-

- (1

2 12

3) -

-

Oth

er a

ccou

nts

paya

ble

1 6

30

- 9

15

- -

2 5

45

1 6

12

Inte

r-offi

ce tr

ansa

ctio

ns p

endi

ng p

roce

ssin

g 1

2 87

8 -

10

- (1

2 88

8) -

-

End-

of-se

rvic

e an

d po

st-re

tirem

ent l

iabi

litie

sh -

- -

6 0

67

- 6

067

-

Tota

l lia

bili

ties

27

37

6

6 7

04

1

25

3

6 0

67

(25 0

11)

16 3

89

9 9

10

Res

erve

s and f

und b

ala

nce

s

Fund

prin

cipa

l -

231

512

-

- -

231

512

2

25 2

11

Bala

nces

rela

ted

to p

roje

cts

fund

ed b

y do

nors

7 7

15

- -

- -

7 7

15

6 9

62

Cum

ulat

ive

surp

lus

(defi

cit)

14

115

75

122

1 3

10

(6 0

67)

- 8

4 48

0 8

5 01

5

Tota

l res

erve

s and f

und b

ala

nce

s 2

1 8

30

3

06

63

4

1 3

10

(

6 0

67)

-

323 7

07

317 1

88

Tota

l lia

bili

ties

, re

serv

es a

nd f

und b

ala

nce

s 4

9 2

06

3

13

33

8

2 5

63

-

(

25 0

11)

340 0

96

327 0

98

a Se

e no

tes

2, 3

and

4.

b Th

e U

NU

Hea

dqua

rters

Bui

ldin

g O

pera

ting

Fund

was

pre

viou

sly a

ccou

nted

for i

n th

e U

NU

Cen

tre O

pera

ting

Fund

. In

orde

r to

impr

ove

the

pres

enta

tion,

effe

ctiv

e 1

Janu

ary

2006

, thi

s fu

nd is

sho

wn

sepa

rate

ly.c

The

UN

U-II

GH

Ope

ratin

g Fu

nd in

Kua

la L

umpu

r, M

alay

sia

whi

ch c

ontri

bute

s to

the

reso

lutio

n of

glo

bal h

ealth

issu

es, p

artic

ular

ly in

rela

tion

to th

e ne

eds

of d

evel

opin

g co

untri

es, w

as e

stabl

ishe

d ef

fect

ive

from

1 Ja

nuar

y 20

06. T

he o

pera

tions

of U

NU

-IIG

H a

re fu

nded

by

volu

ntar

y co

ntrib

utio

ns fr

om th

e G

over

nmen

t of M

alay

sia.

d Re

pres

ents

liabi

litie

s fo

r end

-of-s

ervi

ce a

nd p

ost-r

etire

men

t ben

efits

whi

ch h

ave

not b

een

distr

ibut

ed to

the

resp

ectiv

e fu

nds.

See

not

e 5.

e C

ompa

rativ

e fig

ures

hav

e be

en re

state

d to

con

form

to th

e cu

rren

t pre

sent

atio

n.f

Repr

esen

ts in

vestm

ents

in b

onds

and

equ

ities

, the

mar

ket v

alue

of w

hich

was

$31

2,90

4,23

9.g

Repr

esen

ts sh

are

of U

nite

d N

atio

ns O

ffice

s aw

ay fr

om H

eadq

uarte

rs (O

AH

) cas

h po

ols

and

com

pris

es c

ash

and

term

dep

osits

of $

7,07

1,10

7, s

hort-

term

inve

stmen

ts of

$1,

436,

194

(mar

ket v

alue

$1,

436,

132)

, lon

g-te

rm

inve

stmen

ts of

$24

7,62

0 (m

arke

t val

ue $

245,

566)

and

acc

rued

inte

rest

rece

ivab

le o

f $72

,104

.h

Repr

esen

ts ac

crue

d lia

bilit

ies

for a

fter-s

ervi

ce h

ealth

insu

ranc

e (A

SHI)

costs

of $

3,62

6,00

0, fo

r unu

sed

vaca

tion

days

of $

700,

423,

and

for r

epat

riatio

n be

nefit

s of

$1,

741,

108.

The

se w

ere

prev

ious

ly d

iscl

osed

in th

e no

tes

and

are

now

refle

cted

in th

e fin

anci

al s

tatm

ents

as li

abili

ties.

See

not

e 5.

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

fina

ncia

l sta

tem

ents.

168

UN

ITA

R:

State

men

t I

United

Nations

Inst

itute

for

Train

ing a

nd R

esea

rch a

Stat

emen

t of i

ncom

e an

d ex

pend

iture

and

cha

nges

in re

serv

es a

nd fu

nd b

alan

ces

for t

he tw

elve

-mon

th p

erio

d of

the

bien

nium

200

6-20

07 e

ndin

g 31

Dec

embe

r 200

6 (U

nite

d St

ates

dol

lars

)

Oth

er a

ctiv

ities

Gen

eral

Fun

dSp

ecia

l-Pur

pose

G

rant

s Fu

ndA

ctiv

ities

fina

nced

by

UN

DP

Und

istri

bute

d lia

bilit

iesb

All

fund

s el

imin

atio

nsTo

tal

2006

Tota

l 20

04c

Inco

me

Volu

ntar

y co

ntrib

utio

ns

448

514

8 80

5 84

9 -

- -

9 2

54 3

63

11

359

204

Fund

s re

ceiv

ed u

nder

inte

r-org

aniz

atio

n ar

rang

emen

ts11

5 50

0d

1 69

4 24

3 39

7 26

8 -

- 2

207

011

1

587

474

Prog

ram

me

supp

ort i

ncom

e 1

211

171

31 1

67

- -

(1 2

42 3

38)

- -

Inte

rest

inco

me

65 7

80

586

024

- -

- 6

51 8

04

220

010

Oth

er/m

isce

llane

ous

inco

me

40 1

24

119

726

- -

- 1

59 8

50

49

771

Tota

l inco

me

1 8

81

08

9

11

23

7 0

09

3

97

26

8

-

(1 2

42 3

38)

12 2

73 0

28

13 2

16 4

59

Expen

diture

Staf

f and

oth

er p

erso

nnel

cos

ts1

502

229

6 33

1 71

5 22

5 32

2 -

- 8

059

266

6

378

943

Trav

el10

8 04

5 86

8 12

8 69

612

-

- 1

045

785

8

27 6

27

Con

tract

ual s

ervi

ces

8 75

4 37

9 12

7 -

- -

387

881

4

46 9

02

Ope

ratin

g ex

pens

es41

5 86

7 40

4 64

7 6

403

- -

826

917

5

59 1

39

Acq

uisi

tions

7 64

0 56

193

4

145

- -

67

978

140

971

Oth

er81

549

2

938

076

62 3

59

- -

3 0

81 9

84

2 01

4 13

2

Tota

l dir

ect

expen

diture

2 1

24

08

4

10

97

7 8

86

3

67

84

1

-

-

13 4

69 8

11

10 3

67 7

14

Prog

ram

me

supp

ort c

osts

-1

212

911

29 4

27

- (1

242

338

) -

-

Tota

l ex

pen

diture

2 1

24

08

4

12

19

0 7

97

3

97

26

8

- (

1 2

42 3

38)

13 4

69 8

11

10 3

67 7

14

Exce

ss (

short

fall)

of

inco

me

ove

r ex

pen

diture

(2

42

99

5)

(9

53

78

8)

-

-

-

(1 1

96 7

83)

2 8

48 7

45

Prio

r per

iod

adju

stmen

ts -

(13

265)

- -

- (1

3 26

5) 1

000

Net

ex

cess

(sh

ort

fall)

of

inco

me

ove

r ex

pen

diture

(2

42

99

5)

(9

67

05

3)

-

-

-

(1 2

10 0

48)

2 8

49 7

45

Prov

isio

nal s

avin

gs o

n, o

r can

cella

tion

of, p

rior p

erio

ds’ o

blig

atio

ns3

091

278

959

- -

- 2

82 0

50

227

577

Refu

nd to

don

ors

- (2

6 44

3) -

- -

(26

443)

(947

)

Oth

er a

djus

tmen

ts to

rese

rves

and

fund

bal

ance

s (1

51 4

62)e

(495

500

)f -

(1 8

57 0

00)

- (2

503

962

) -

Rese

rves

and

fund

bal

ance

s, b

egin

ning

of p

erio

d1

453

526

11 3

63 0

08

- -

- 1

2 81

6 53

4 6

624

062

Res

erve

s and f

und b

ala

nce

s, e

nd o

f per

iod

1 0

62

16

0

10

15

2 9

71

-

(1

857 0

00)

-

9 3

58 1

31

9 7

00 4

37

a Se

e no

te 3

.b

Repr

esen

ts ac

crue

d lia

bilit

ies

for a

fter-s

ervi

ce h

ealth

insu

ranc

e w

hich

hav

e no

t bee

n di

strib

uted

to th

e re

spec

tive

fund

s. T

hese

wer

e pr

evio

usly

dis

clos

ed in

the

note

s an

d ar

e no

w re

flect

ed in

the

finan

cial

sta

tem

ents

as

liabi

litie

s. S

ee n

ote

4.c

Com

para

tive

figur

es h

ave

been

recl

assi

fied

to c

onfo

rm to

cur

rent

pre

sent

atio

n.d

Repr

esen

ts co

ntrib

utio

n fro

m U

nite

d N

atio

ns R

egul

ar B

udge

t.e

Repr

esen

ts ac

crue

d lia

bilit

ies

for u

nuse

d va

catio

n da

ys o

f $91

,688

and

for r

epat

riatio

n be

nefit

s of

$59

,774

resp

ectiv

ely.

The

se w

ere

prev

ious

ly d

iscl

osed

in th

e no

tes

and

are

now

refle

cted

in th

e fin

anci

al s

tate

men

ts as

lia

bilit

ies.

See

not

e 4.

f

Repr

esen

ts ad

justm

ent o

f acc

rued

liab

ilitie

s fo

r unu

sed

vaca

tion

days

of $

180,

250

and

for r

epat

riatio

n be

nefit

s of

$31

5,25

0, in

ord

er to

fully

reco

gniz

e su

ch li

abili

ties

in th

e fin

anci

al s

tate

men

ts. P

revi

ously

, the

se li

abili

ties

had

been

par

tially

acc

rued

and

fund

ed, f

or u

nuse

d va

catio

n da

ys o

f $18

6,92

7 an

d fo

r rep

atria

tion

bene

fits

of $

326,

927.

See

not

e 4.

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

fina

ncia

l sta

tem

ents.

Financial section

169

UN

ITA

R:

State

men

t II

United

Nations

Inst

itute

for

Train

ing a

nd R

esea

rch a

Stat

emen

t of a

sset

s, li

abili

ties,

rese

rves

and

fund

bal

ance

s as

at 3

1 D

ecem

ber 2

006

(Uni

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The United Nations Board of Auditors has audited UN peacekeeping operations for the financial period ended 30 June 2006 and has issued a long-form report and an audit opinion. The Board’s report includes an executive summary, which has been reproduced verba-tim below.

Reproduction of executive summary of the Board’s report on United Nations peacekeeping operations (A/61/5, Vol. II)

The Board of Auditors has audited the United Nations peacekeeping operations for the financial period ended 30 June 2006. The list of missions audited is reflected in annex I to the present chapter. The audit at Headquarters included the Peacekeeping Reserve Fund and the support account for peacekeeping opera-tions and 22 completed missions.

The Board also addressed special requests from the Advisory Committee on Administrative and Budgetary Questions and the General Assembly. In addition to the audit of the accounts and financial statements for the financial period ended 30 June 2006, the Board also carried out reviews of peacekeeping operations under financial regulation 7.5.

The Board issued an unqualified audit opinion on the financial statements for the United Nations peacekeeping operations for the financial period ended 30 June 2006, as reflected in chapter III, with emphases of matters.

Implementation of previous recommendations

As requested by the Advisory Committee on Administrative and Budgetary Questions in para -graph 8 of its report on the administrative and budget-ary aspects of the financing of United Nations peace-keeping operations (A/59/736), the Board evaluated the ageing of its previous recommendations that had not

yet been fully implemented and has indicated the finan-cial period in which such recommendations were first made in annex II to the present chapter. Of a total of 72 recommendations, 25 (35 per cent) had been imple-mented, while 44 (61 per cent) were under implementa-tion and 3 (4 per cent) had not been implemented. Of the 44 recommendations not yet fully implemented, 22 (50 per cent) relate to the 2004/05 period; 16 (36 per cent) to 2003/04; 4 (10 per cent) to 2002/03; 1 (2 per cent) to 2001/02; and 1 (2 per cent) to 2000/01.

Coordination among oversight bodiesThe Board continually coordinates with the Office of Internal Oversight Services, and experts in the plan-ning of its audits in order to avoid duplication of effort. Accordingly, the Board considered the scope and results of the work of internal audit.

Financial overview for the financial period ended 30 June 2006

Total income stood at $5.1 billion ($4.5 billion in 2004/05) while total expenditure totalled $4.6 bil-lion ($4.1 billion in 2004/05). Of the increase in total income, 79 per cent was attributable to assessed con-tributions. The 12 per cent increase in expenditure was brought about by the expanded operations of three mis-sions, namely: UNMIS, UNOCI and MINUSTAH.

Assessed contributions outstanding for the finan-cial year ended 30 June 2006 decreased by 23.3 per cent, from $1.66 billion (2004/05) to $1.27 billion. This improved the level of cash available of $2.19 bil-lion ($1.74 billion in 2004/05) to settle liabilities of $1.92 billion ($2.06 billion in 2004/05). An amount of $706.3 million of the gross outstanding contribu-tions of $1.27 billion (56 per cent) had been outstand-ing for over one year, of which $165.7 million related to active missions, $527.1 million to completed mis-sions and $13.6 million to special-purpose accounts.

United Nations Board of Auditors


Financial section

Overall findings

The key findings arising from the Board’s audit are shown below:

Procurement and contract management(a) The Procurement Service was unable to influ-ence the geographical distribution of contracts;

(b) Mandatory registration documents were still not supplied before suppliers were registered in the roster of UNMIK;

(c) Vendor performance evaluations by MINURSO, UNMIS and UNLB had not been submitted to the Procurement Office;

(d) At United Nations Headquarters and UNFICYP, adequate performance bonds had not been obtained from contractors;

(e) Inadequate procurement planning was observed in UNMIK, MINUSTAH and UNOCI, and in two offices at United Nations Headquarters;

(f ) The training needs of procurement officers at MINUSTAH and UNMIK were not identified;

(g) The declarations of independence by procure-ment staff as evidence of considerations of their inde-pendence were not signed in UNMIL;

(h) Ex post facto submissions by MINUSTAH to the Headquarters Committee on Contracts were still noted;

(i) At UNMIL, there were lengthy lead times for approval of contract submissions by the Headquarters Committee on Contracts;

(j) Purchases of goods at UNMOGIP and UNOCI were approved by procurement officials without ade-quate authority;

(k) Deliveries of services by suppliers in MINUSTAH and ONUB were made without signed contracts.

Air operations

While there was a decrease of total air transportation budget due to the end of mandate of UNMISET and

UNAMSIL, air operations in missions significantly increased compared with the previous period as a result of the increased operations at UNMIS and UNOCI. The Board noted the following deficiencies for the finan-cial period ended 30 June 2006:

(a) The 108,445 (90,973 in 2004/05) total flight hours utilized were 57,264 hours (34.55 per cent) less than the 165,709 (133,296 in 2004/05) hours budgeted;

(b) Only 16 of the 53 carriers that had existing con-tracts with the United Nations had been subjected to an on-site aviation quality inspection;

(c) About 30 per cent of the aircraft were not subjected to performance evaluation on a regular basis;

(d) Based on the International Civil Aviation Organization’s benchmarks, there were inadequate aviation support staff to manage the increased air fleet;

(e) An Aviation Safety Council was not yet estab-lished at United Nations Headquarters Department of Peacekeeping Operations;

(f ) Non–United Nations passengers were allowed to board United Nations aircraft and travel to differ-ent destinations in the Sudan without approval by authorized United Nations officials.

Vehicle fleet management

The Department of Peacekeeping Operations accounted for a fleet of 15,532 vehicles valued at $428.16 mil lion as at 30 June 2006. The Board noted that:

(a) UNMIK had overpaid the fuel supplier $2.3 mil-lion over a period of more than four years;

(b) A rotation policy for vehicles to optimize effi-ciency and utility was not being implemented at UNMIK, UNMIS and UNOCI;

(c) The standard vehicle replacement criteria were not being observed at UNMOGIP and UNMIL;


(d) The use of the CarLog system had not been maximized at UNMIS and UNFICYP;

(e) At UNMIK, discrepancies and errors were noted in the reports generated from CarLog and FuelLog systems;

(f ) Approximately 45 per cent of the total vehicle fleet of 15,532 were involved in accidents.

Asset management

The value of recorded non-expendable property in -creased by 17 per cent, from $1.04 billion as at 30 June 2005 to $1.22 billion as at 30 June 2006. During the financial period, acquisitions amounted to $276.5 mil-lion while disposals and adjustments, and write-off amounted to $95.2 million and $4.4 million, res pect-ively. The Board noted that:

(a) At UNMEE, a delay was noted in updat-ing the Galileo system as regards 58 vehicles worth $850,809;

(b) At UNOCI, physical inventory had not been completed at the end of the 2005/06 financial period;

(c) Non-expendable property aggregating $14.4 mil-lion identified for disposal was awaiting further dis-posal processes;

(d) There was a need to match the delegated authority with the current demand for an up-to-date approval for write-off and disposals of non- expendable property.

Strategic deployment stocks

Strategic deployment stocks were valued at approxi-mately $88.2 million as at 30 June 2006, compared with $60.8 million in the previous financial period. The Board noted that:

(a) Replenishment of strategic deployment stocks was tracked and matched through the Galileo system upon actual receipt of goods by the recipient-missions instead of at the time of the issuance of the material release order;

(b) A total of 24 shipments had exceeded the 26-day lead time for inspection adopted by UNLB for 2005/06;

(c) There were no sufficient protective facilities for 153 electric generators with an aggregate cost of $1.9 million.

Support account for peacekeeping operations

The Advisory Committee on Administrative and Budget-ary Questions requested the Board of Auditors to make an evaluation on the evolution of the support account for peacekeeping operations. The Board noted that:

(a) There was no defined formula or model to show the relationship of the level and complexity of peacekeeping operations and the level of the support account;

(b) The review of proposals for new posts in consid-eration of the criteria set forth under the report of the Secretary-General on the support account (A/45/493) needs to be undertaken. The Administration needs to revisit the provisions of document A/45/493 to deter-mine those criteria which hamper efficient management processes in respect of changing circumstances/require-ments and in strengthening the review process;

(c) Some job descriptions and workplans did not pro-vide adequate, clear, specific, consistent and updated information to facilitate review and verification of the use of posts as intended.

Rations

Ten rations contracts with an approximate contract value of $427.36 million had been awarded by the Depart ment of Peacekeeping Operations as at September 2006. The Board noted that:

(a) There were issues that needed to be addressed in ensuring proper management of rations, inter alia: absence of back-up plans or alternative arrange-ments for the supply of essentials like food; delivery of rations without approved contract; disparity in cost


Financial section

of items purchased; and absence of punitive clauses in the rations contract;

(b) Four ration contracts, including their amend-ments, totalling $197.7 million were not supported by the required contractor’s performance evaluation reports.

Human resources management

The Department of Peacekeeping Operations had ini-tiated several projects during the period under review to improve the management of human resources. The Board noted that:

(a) There were requirements relative to human resources planning that were not adhered to, such as: absence of human resources annual training plan; gen-der equality; and insufficiency in evaluating the train-ing needs of personnel;

(b) The overall average vacancy rate for interna-tional civilian staff for all missions was 26 per cent, which is 3.4 per cent lower than the previous year rate of 29 per cent;

(c) Other deficiencies were noted in the following areas: monitoring and payment of overtime; payments made on medical insurance premiums; signing of appointment letters; and approval of leave application forms.

Results-based budgeting

The implementation of results-based budgeting has been continuously enhanced. However, instances of the previous Board’s recommendations on this matter were still not being implemented in the case of MINUSTAH and UNMIK, where the following had been observed:

(a) In MINUSTAH there were certain indicators that were either not measurable, specific, time-based or did not have expected accomplishments that justi-fied the resource requirements;

(b) UNMIK did not have enough portfolio of evidence consisting of the actual source documents that support the actual indicators of achievement and outputs in the absence of a formal systematic information-gathering system.

Information and communication technology

(a) UNMIL, UNMIK and UNOMIG had not acted on the previous recommendation of the Board to align missions with the United Nations norm of one printer to every four desktop computers;

(b) The limited facilities of UNLB to support the satellite operation for missions had created, inter alia, problems in terms of power and cooling system, inad-equacy of storage facilities for needed spare parts and a too crowded working area.

Quick impact projects

The quick impact project was envisioned to be a tool for a mission to gain acceptance by the host community. It was intended to attain a visible impact in the shortest time possible. In at least three missions, the Board had observed the following:

(a) At UNMIS and ONUB, monthly reports of ongoing projects had not been submitted by the executing agencies, contrary to the memorandums of understanding;

(b) There were 15 out of 20 (75 per cent) projects at UNMEE that had not been completed within the six to eight weeks duration as called for by the terms of reference, which defeated the very purpose of a quick impact project.

Recommendations

The Board has made several recommendations based on its audit observations. A summary of the main recom-mendations of the Board is set out in paragraph 14 of the report.

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