23 June 2006

DearExcellency:
We have consistently expressedour hope that consultations among Member Stateswill result in a consensusagreementin June to enactcritical UN managementreforms. Attached is a proposal covering a range of these reforms. We would request that you circulate it among Member States in the Fifth Committee. We believe the draft reflects a consensusof Member Statesregarding the path ahead on UN managementreform and includes elements of proposals previously circulated by Japan,the Group of77 and China, and the European Union. We understand that Member Stateswould need time to seekadditional information and engage in further consultations; we look f:orward to this. Accordingly, we are ready to proceed on this proposal and to bring this important matter to an early conclusion.

Sincerely, RobertHill Pennanent Representative Australia of Kenzo Oshima Pennanent Representative Japan of JohnR. Bolton Pennanent Representative The United States America of of

Attachment:asstated. cc: H.E. Mr. JanEliasson President the GeneralAssembly of
His Excellency Mr. John W. Ashe ChainIlan of the Fifth Committee

The GeneralAssembly,
Recalling its resolution 60/1 of 16 September2005, Having considered the report of the Secretary-Generalentitled "Investing in the UnitedNations: for a stronger Organization worldwide" (N60/692), the Secret~{-General's subsequentreport offering detailed infoffilation on implementation of the Jproposed managementrefoffil initiatives (N60/846/Add.1-4), and the related reports of the Advisory Committee on Administrative and Budgetary Questions (N60/735, N60/870),

Oversight and Accountability
Requeststhe Secretary-Generalto appoint a permanenthead of the UN Ethics Office, established 30 December 2005 (ST/SGB/2005/22), and to ensurethe full and effective operation of the Office consistent with the terms of reference previously outlined by the Secretary-General(ST/SGB/2005/22);
2,

Decides that beginning with the 2008-2009 biennium, the Office of In1:emalOversight Services (OIOS) will submit its proposed budget directly to the General Assembly for its consideration and review at its sixty-second sessionto ensurethe operational independenceof OIOS;

3. Notes the establishmentof the Independent Audit Advisory Committe(~(IAAC) and welcomesthe intention of the Secretary-Generalto presentits terms of reference, as well as the independentexternal evaluation of audit and oversight capabilities of the Organization, to the General Assembly for its consideration; 4. Urges the Secretary-Generalto initiate the identification of candidates for the IAAC so as to enable it to begin operations as soon as the General Assembly takes the necessarydecisions;

ManagementReform Informationand Communication Technology
5 Approves the establishmentof the post of Chief Infonnation Technology Officer, as proposed by the SG in A/60/846/add. I, through existing resources. 6. Decides also to replace IMIS with a next generation enterprise resource planning (ERP) systemto ensure that the Organization provides a high level of transparency and accountability with respectto its global resource managementreqllirements, including, inter alia, all information technology needs arising from the adoption of International Public Sector Accounting Standards, subject to the obsef1{ations and recommendations of the ACABQ as contained in paragraphs 15-23 of its Report;

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Requeststhe Secretary-Generalto submit a comprehensive report to the General Assembly during the first part of its resumed sixty-first sessionoutlining the scope, timetable, strategy and detailed resource requirements for replacing !MIS in a timely manner with a next generationEnterprise ResourcePlanning system or other comparable system;

BudgetImDlementation
8. Recallsits resolutions58/270and 60/246 which authorizedthe Secretary-General to

redeployposts Organization-wide meetthe evolving needsof the Organizationin to attainingits mandated programmes activities; and

9. Recognizes the need for limited discretion in budgetary implementation for the
Secretary-General within defined parameters to be agreed by the General Assembly along with clear accountability mechanismto Assembly for its use; 10. Authorizes the Secretary-General, on an experimental basis, and subject to the provisions of paragraph 11 below, to manage, at his discretion and for the purpose of meeting the evolving needs of the Organization in attaining the mandated programmes and activities, the amount of 1 percent of the unutilized total post cost resources arising from the difference between a higher realized vacancy rate than budgeted, for temporary posts, general temporary assistanceand related operational costs; 11. Authorizes the Secretary General, with the prior concurrence of the Advisory Committee on Administrative and Budgetary Questions and subject to the Financial Regulations and Rules of the United Nations and the provisions., to enter into commitments to meet the evolving needs of the Organization arising either during or subsequentto the biennium, within the authorized amount stipulated in paragraph 3, provided that the concurrence of the Advisory Committee shall not be necessary for such commitments not exceeding 8 million US dollars in anyone year of the biennium 2006-2007 as the Secretary-Generalcertifies relate to meeting the emerging priority needs of the Organization not authorized in respect of the maintenance of peace and security under the provisions of paragraph 1 (a) of resolution 60/249. 12. Resolves that the Secretary-Generalshall report to the General Assem,blythrough the Advisory Committee in the context of the performance reports, all commitments made under the provisions of the presentresolution; 13. Requeststhe Secretary-General to utilize this authority avoiding any adverse impact on the work of each section of the biennium programme budget; 14. Stresses that the authority shall not imply any change in the human resources managementpolicies of the Organization;

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15. Requeststhe Secretary-Generalto review the implementation of this authority and report thereon to the General Assembly through the Advisory Commi1tee at its 62nd seSSIon.

FinancialManal!ement Practices
16. Decides to authorize the Secretary-Generalto enter into commitments not to exceed the current authorized level of the PeacekeepingReserve Fund of$150 million, without reference to the number of Security Council decisions; 17. Also decides to increasethe current delegation to the Advisory Committee on Administrative and Budgetary Questions for approval of commitment authority to the current authorized level of the PeacekeepingReserve Fund of$150 million; 18. Further decides to amend financial regulations 4.6 and 4.8 by replacing in eachcase the figure of$50 million with $150 million; Decides to authorize an increase in the Working Capital Fund to $150 million dollars; 20. Decides to approve adoption by the United Nations of International Public Sector Accounting Standards (IPSAS) and endorsesthe recommendation of the ACABQ to authorize approval of the requestedresourcesto pennit the Secretary-(:Jeneral to begin implementation of IPSAS, with the stipulation that expenditures relating to the infonnation technology aspectof implementation should await the General Assembly's further definitive decision on the systemto be used; Improving Reporting Mechanisms: Public Access to UN Documentation 21. Notes the intention of the Secretary-Generalto implement a policy on Jpublicaccessto UN documentation as outlined in part IV of Addendum 4 of his detailed report on "Investing in the United Nations: for a stronger Organization worldwide" (N60/846/Add.4), and endorsesthe observations and recommendations of the ACABQ in this regard; 22. Welcomesthe intention of the Secretary-Generalto submit a single, comprehensive annual report to the General Assembly, subject to the observations and recommendations of the ACABQ on this proposal; 23. Requeststhe Secretary-Generalto consolidate reports on related subjec:ts,if so decided by the Main Committees, along the lines proposed in Annex I of Addendum 4 of his detailed report on "Investing in the United Nations: for a stron,ger Organization worldwide" (N60/846/Add.4).

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19.

Future Consideration of Management Reforms 24. Decides to revert, as a matter of priority, to the consideration of the procurement rules, regulations and policies, taking into account the Secretary-General's report (A/60/846.Add.5), with a view to achieving greater transparencyand accountability in procurement practices and full implementation of procurement reforms early in the regular part of its sixty-first session; 25. Also looks forward to considering proposals to be put forward by the SecretaryGeneral to strengthenthe authority of the Office of Human Resources Management and the accountability of programme managers for issuesrelated to human resources managementduring the regular part of its sixty-first session; 26. Decides to consider, as a matter of priority, the independentexternal evaluation of audit and Oversight capabilities of the Organization, with a view to strengthening oversight and improving, inter alia, the expertise, capacity, and resourc:es the of Office of Internal Oversight Services during the regular part of its sixt~{-first session; 27. Reaffirms its intention to continue consideration of measuresto fulfil11:he commitments made by Heads of State and Government in the World Summit Outcome Document (A/60/1) to strengthenthe United Nations by ensuring the efficient and effective functioning of an accountable Secretariatrooted in a culture of organizational accountability, transparencyand integrity.

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