Sixty-first session Agenda items 117 and 132 Programme budget for the biennium 2006-2007 Administrative and budgetary aspects of the financing of the United Nations peacekeeping operations Strengthening of the Office of Internal Oversight Services Revised estimates to the programme budget for the biennium 2006-2007 under sections 28A, Office of the Under-Secretary-General for Management, 29, Internal oversight, and 35, Staff assessment * This report is being issued at this time because of required consultations. Report of the Secretary-General* Contents Paragraphs Page Introduction 1–3 3 Internal oversight 4–19 4 Executive direction and management 12–13 6 Programme of work 14–18 7 Subprogramme 1. Internal audit 14 7 Subprogramme 2. Inspection and evaluation 15–16 8 Subprogramme 3. Investigations 17–18 9 Programme support 19 10 Office of the Under-Secretary-General for Management 20 11 Staff assessment 21 12 Recommendations 22 12 VI. Organizational structure and post distribution of the Office of Internal Oversight Services for the biennium 2006-2007 13 VII. Organizational structure and post distribution of the Office of the Under-Secretary-General for Management for the biennium 2006-2007 14 I. Introduction 1. The Advisory Committee on Administrative and Budgetary Questions, in its fifteenth report on the proposed programme budget for the biennium 2006-2007 (A/60/7/Add.14), recommended the deferral of action on the post and non-post resources proposed for the Office of Internal Oversight Services pending the submission of proposals following the detailed review of the Office. The Advisory Committee recommended that resources equivalent to the revised level of the 20042005 provision, recosted for 2006-2007, as well as an equivalent of general temporary assistance for 39 positions, as presented in the revised estimates to the proposed programme budget for 2006-2007 (see A/60/537), be provided to the Office. Consequently, non-post resources requested in the proposed programme budget and in the revised estimates were deferred pending the consideration of a comprehensive budget proposal. These interim measures have ensured the continuation of the Office’s activities pending the consideration by the legislative bodies of the report of the Office of Internal Oversight Services on proposals for strengthening the Office of Internal Oversight Services (A/60/901). 2. The present document describes changes required to the approved programme budget for 2006-2007 taking into account the information contained in A/60/901. As detailed in that document, the 39 general temporary assistance positions previously approved are proposed for conversion to established posts. A number of required redeployments are also reflected. The converted positions have been distributed across subprogrammes in line with the analysis reflected in A/60/901. Four posts would be redeployed from the Office of Internal Oversight Services to the Office of the Under-Secretary-General for Management to effect the transfer of responsibility for management consulting services, and would be offset by the addition of five regular budget posts to ensure sufficient capacity within the Office of Internal Oversight Services in the area of inspection and evaluation. All post adjustments in the Office of Internal Oversight Services have been effected, through a reduction in general temporary assistance, within the overall resources already approved under the related budget section for the biennium. No new non-post resources for the new converted posts are requested at this time, as such requirements are expected to be dealt with through internal redeployment of funds and to be reported in the context of the second performance report. However, a number of key non-post requirements previously detailed in the proposals for the strengthening of the Office (A/60/901) are incorporated for approval in the present document. While the rationale and justifications for these adjustments are cross-referenced herein, these revised estimates should be considered in conjunction with A/60/6 (Sect. 29) and A/60/901. 3. As a result of these revised estimates, an additional appropriation of $1,308,800 is required, consisting of $601,400 under section 28A, Office of the Under-Secretary-General for Management, $610,000 under section 29, Internal oversight, and $97,400 under section 35, Staff assessment, to be offset by an equivalent amount of income under income section 1, Income from staff assessment, of the programme budget for the biennium 2006-2007. II. Internal oversight 4. In accordance with paragraph 164 (a) of the 2005 World Summit Outcome, adopted in resolution 60/1, the expertise, capacity and resources of the Office of Internal Oversight Services in respect of audit and investigation should be significantly strengthened as a matter of urgency. Having benefited from the report on the external review of the Office (A/60/883 and Add.1 and 2), which was conducted in conjunction with the General Assembly-commissioned review of governance and oversight in the United Nations, the Office put forward its report on proposals for strengthening the Office (A/60/901), which include the establishment of investigations task forces, reinforcement of inspection and evaluation functions, the transfer of the management consulting function, the eventual transfer of responsibility for the programme performance report and other required changes. 5. Proposals of the Office of Internal Oversight Services for its strengthening were formulated following consideration of experiences, lessons learned, best practices and industry standards in conducting oversight activities, as well as recommendations of the Board of Auditors. In examining the inspection and evaluation functions and the benefits derived from these oversight activities, the need to strengthen evaluation, as described in A/60/73, and reinforce inspection with regard to its approach, methodology and number of staff became evident. The Office proposes to strengthen the functions so that it will be able to produce as many as 11 to 13 inspections, 6 of which relate to peacekeeping operations, 2 compliance reports and 8 to 10 evaluation reports per year. Currently, 2 to 3 inspections and 2 to 3 evaluations are produced. With the responsibility to investigate significant cases of wrongdoing transferred from the Investigations Division to the Office’s Procurement Task Force and its Sexual Exploitation and Abuse Task Force, it was deemed appropriate to allocate nine positions to inspection and evaluation from the 27 positions authorized under the outcome document for the regular workload of the Investigations Division. Accordingly, in the current proposal nine additional posts would be dedicated to the inspection and evaluation functions, these posts being allocated out of the 27 general temporary assistance positions initially approved for the Investigations Division (see A/60/901, paras. 68 and 78 and annex III, table 2). 6. Congruent with the recommendation of the external review and as proposed in paragraph 104 of A/60/901, six management consulting posts, four from the regular budget (1 D-1, 1 P-5, 1 P-2 and 1 General Service (Other level)) and two P-4 posts from the peacekeeping support account would be transferred to the Office of the Under-Secretary-General for Management. It should be noted that these posts were originally approved by the General Assembly for the areas of internal audit and evaluation, but have been redeployed over the years in the course of internal restructuring leading to the structure of the Monitoring, Evaluation and Consulting Division. As indicated in paragraph 77 of A/60/901, an Inspection and Evaluation Division will be established comprising two sections, namely, the Evaluation Section and the Inspection Section. The transfer of these posts would be offset by seven additional posts (5 from the regular budget (2 P-3, 2 P-2, 1 General Service (Other level)) and two P-4 posts from the support account) as part of the proposals aimed at the strengthening of the inspection and evaluation functions. With the posts adjustments proposed in the present document, the Division, which would now focus on inspection and evaluation, would have an adequate and efficient management structure. Consequently, the present document does not propose the replacement of posts transferred out at the D-1 and the P-5 level. Instead, two P-3 and one P-2 posts are required under the regular budget to strengthen overall inspection and evaluation capacity. Peacekeeping support account adjustments would be dealt with in the context of the related budget proposals. 7. Inspections provide the General Assembly and senior managers with objective information, independent analysis and actionable recommendations pertaining to the policies, systems and practices required to maximize the programmatic performance of United Nations entities. Inspection thus complements evaluation in its emphasis on reviewing organizational results-based management (while evaluation has its emphasis on validating the actual results achieved). At the same time, the inspection modality has flexibility to incorporate reviews of different risk dimensions and internal control needs as they change over time. In that regard, it is envisaged that inspections will evolve into multidisciplinary reviews comprising Office of Internal Oversight Services evaluators, auditors and investigators as needed. Strengthening of inspection will enable the Office to increase the frequency with which United Nations entities are subjected to independent oversight from one inspection of an entity every 25 years to a more reasonable ambition of an inspection every 5 years. As such, it will add scope and depth to the oversight role of the Office. 8. To ensure its full independence, the Office of Internal Oversight Services proposed measures in A/60/901 aimed at strengthening its management and operational processes. Among the areas that were identified as requiring improvement are funding arrangements based on a risk-based workplan, and a reformed budget process that would make the Office’s funding independent of the Secretariat. Other requirements pertain to human resources management, training, technology and knowledge management and space requirements. Proposals on the foregoing matters presented in paragraphs 48 to 51, 109, 114, 117 and 119 of A/60/901 require extensive discussions and collaboration with various offices in the Secretariat. The Office will launch these projects on the basis of their priority and the availability of resources in due course. With the approval of needed funds proposed in the present revised estimates for training, technology and knowledge management, the Office will be able to embark on these essential strengthening initiatives first. 9. The completion of the formulation of risk-based workplans is anticipated for the end of 2007. Resources required on the basis of such a workplan will be taken into account in revised estimates to the Office’s budget for the biennium 2008-2009, which are expected to be submitted by the Office under revised arrangements to the General Assembly at its sixty-third session, in the third quarter of 2008. Consultations on the funding arrangements and the budget process will be carried out promptly, taking into account General Assembly decisions on the proposals contained in A/60/901. 10. The external review recommended that the responsibility for the preparation of the biennial programme performance report of the Secretary-General be transferred to the Department of Management. The Office agrees with this recommendation (see A/60/901, paras. 68-70). Arrangements to ensure the smooth transfer of this function are under discussion, and it is expected that this recommendation will be implemented in the context of the proposed programme budget for the biennium 2008-2009. 11. The post tables in the present document reflect the redistribution and conversion of the 39 general temporary positions, a number of internal redeployments and the adjustments related to the transfer of the management consulting function. As regards extrabudgetary information, it is recalled that the staffing of the Office under the peacekeeping support account has been financed as general temporary assistance pending reconsideration by the General Assembly after its review of reports on oversight and governance. For consistency as regards traditional presentation, and given the pending reconsideration by the General Assembly, the peacekeeping support account staffing has been presented as previously approved for the 2005/06 period, with post changes reflecting already proposed adjustments to the staffing complement approved for that period. Table 1 Requirements by component and source of funds (1) Regular budget Component Resources (thousands of United States dollars) Posts 2006-2007 appropriation Change Total 2006-2007 appropriation Changea Total A. Executive direction and management 1 796.6 400.7 2 197.30 6 3 9 B. Programme of work 1. Internal audit 12 580.2 (240.0) 12 340.20 41 7 48 2. Inspection and evaluation 5 405.4 878.6 6 284.00 18 12 30 3. Investigations 9 604.8 (593.6) 9 011.20 20 15 35 C. Programme support 1 943.1 164.3 2 107.4 6 3 9 Subtotal 31 330.1 610.0 31 940.1 91 40 131 (2) Extrabudgetary Subtotal 56 354.6 — 56 354.6 166 22 188 Total, (1) and (2) 87 684.7 610.0 88 294.7 257 62 319 a Extrabudgetary information reflects the planned conversion of general temporary assistance to posts under the peacekeeping support account. A. Executive direction and management Additional resource requirements: $400,700 12. Resource requirements reflect the strengthening of the Office of the Under-Secretary-General through the addition of three posts ($360,700), and a non-post provision to assist in developing and implementing a training and staff development strategy for the Office of Internal Oversight Services ($40,000). As initially proposed in the programme budget, one P5 post would be inwardly redeployed from the Internal Audit Division to carry out the essential functions of a Special Assistant to the Under-Secretary-General. In addition, as detailed in paragraphs 98 to 102 of A/60/901, a P-5 and a P-3 post would be added, through conversion from overall general temporary assistance provisions, to augment the capacity of the Office of the Under-Secretary-General in two specific areas. A Legal Officer at the P-5 level would report directly to the Under-Secretary-General for Internal Oversight Services and ensure the availability of competent legal counsel to enable the Office of Internal Oversight Services to respond properly to the outcome of oversight activities that become subject to legal review and to review reports on an as-required basis. A Programme Officer at the P-3 level would deal with, among other things, the Office’s internal and external communications, given the recent growth in the number of the Office’s staff and their geographical dispersion. 13. As reflected in paragraph 114 of A/60/901, the Office proposes to develop and implement, with expert assistance, a training and staff development strategy for the Office of Internal Oversight Services that will include a central inventory of staff skills and a related strategy, a career model for the Office’s staff with defined career paths, and individualized training programmes. Continuous training of staff is required, particularly in the field of audit, in compliance with the international auditing standards. Equally important is to uphold the quality of the Office’s work in other oversight disciplines. Staff training is necessary to maintain quality. Accordingly, an amount of $40,000 is proposed to hire a consultant for three months for the purpose of assisting in the development and implementation of a training and staff development strategy for the Office. Table 2 Resource requirements Category Resources (thousands of United States dollars) Posts 2006-2007 appropriation Change Total 2006-2007 appropriation Change Total Regular budget Post 1 656.2 360.7 2 016.9 6 3 9 Non-post 140.4 40.0 180.4 Subtotal 1 796.6 400.7 2 197.30 6 3 9 Extrabudgetary 167.3 — 167.3 — — — Total 1 963.9 400.7 2 364.6 6 3 9 B. Programme of work Subprogramme 1 Internal audit Additional resource requirements: ($240,000) 14. Conversions from general temporary assistance resources under subprogramme 1 consist of eight posts (1 D-1, 1 P-5, 3 P-4 and 3 P-3) to strengthen audit operations in New York, and a D-1 post to head audit operations based in Nairobi. Resource requirements also reflect the redeployment of a General Service (Other level) post from Internal Audit, New York, to augment Internal Audit, Geneva, and the outward redeployment of a P-5 post to strengthen the Office of the Under-Secretary-General, and a P-3 to strengthen capacity in the Inspection and Evaluation Division, as initially reflected in the proposed programme budget for 2006-2007. Paragraphs 58 to 64 of A/60/901 address in more detail the Internal Audit Division. Non-post requirements reflect a reduction of $833,300 in general temporary assistance under this subprogramme, partially offset by a provision of $110,000 to provide licensing for 112 audit staff at $985 per staff member per annum to use the Auto-Audit electronic working papers system (see A/60/901, para. 117). Table 3 Resource requirements Category Resources (thousands of United States dollars) Posts 2006-2007 appropriation Change Total 2006-2007 appropriation Changea Total Regular budget Post 10 410.8 483.3 10 894.1 41 7 48 Non-post 2 169.4 (723.3) 1 446.1 Subtotal 12 580.2 (240.0) 12 340.2 41 7 48 Extrabudgetary 45 998.7 — 45 998.7 93 20 113 Total 58 578.9 (240.0) 58 338.9 134 27 161 a Extrabudgetary information reflects the planned conversion of general temporary assistance to posts under the peacekeeping support account. Subprogramme 2 Inspection and evaluation Additional resource requirements: $878,600 15. Additional resource requirements of $878,600 include the strengthening of subprogramme 2 through the inward redeployment of a P-4 post from the Investigations Division to establish a self-evaluation and learning function and a P-3 post from the Internal Audit Division to increase capacity to carry out inspections, as initially reflected in the proposed programme budget for 2006-2007. Nine posts (1 D-2, 3 P-3, 4 P-2, and 1 General Service (Other level)) are proposed for conversion from overall general temporary assistance provisions for the Office, given the need to strengthen this area (see A/60/901, paras. 65-78). 16. In addition, with the transfer of the management consulting function, four posts (1 D-1, 1 P-5, 1 P-2 and 1 General Service (Other level)) would be transferred to the Office of the Under-Secretary-General for Management. Five posts (2 P-3, 2 P-2, and 1 General Service (Other level)) are proposed as replacements given the overall requirements under this subprogramme in support of the strengthened focus on inspection and evaluation (see A/60/901, paras. 65-78). Table 4 Resource requirements Category Resources (thousands of United States dollars) Posts 2006-2007 appropriation Change Total 2006-2007 appropriation Change Total Regular budget Post 5 174.5 878.6 6 053.1 18 12 30 Non-post 230.9 — 230.9 Subtotal 5 405.4 878.6 6 284.0 18 12 30 Extrabudgetary 1 352.0 — 1 352.0 3 — 3 Total 6 757.4 878.6 7 636.0 21 12 33 Subprogramme 3 Investigations Additional resource requirements: ($593,600) 17. Sixteen posts are proposed for conversion from general temporary assistance, of which eight posts (1 D-1, 4 P-4, 2 P-3 and 1 General Service (Other level)) would be based in New York, while the complement in Vienna would increase by six posts (1 P-5, 4 P-2 and 1 General Service (Other level)) and in Nairobi by two posts (2 P4). The Investigations Division is addressed in paragraphs 79 to 97 of A/60/901. In addition, two posts (P-5 and P-4) from the investigations office in Vienna would be redeployed to the investigations office in New York, and one P-4 post would be redeployed from the investigations office in New York to the Inspection and Evaluation Division, as initially reflected in the proposed programme budget. 18. As regards non-post resources, the reduction of $1,612,400 reflects a decrease in budgeted general temporary assistance provisions ($1,972,400), partially offset by increased provisions to implement a more comprehensive case management system ($300,000) and for forensic imaging ($60,000), as indicated in paragraph 117 of A/60/901. The case management system is essential to store, manage and monitor all case-related information, including details and status. A new system will provide increased compatibility with powerful tools available in the market and facilitate the extraction of statistical information from the case management database. Its hardware will also improve remote access to the database. Given the large number of cases received by the Division, its current set-up and capacity are insufficient to ensure efficient case management. Forensic imaging would enable the Division to obtain comprehensive data imaging that is critical for probative material, including evidence stored electronically. Currently, the ability of the Division in this regard is limited. Table 5 Resource requirements Category Resources (thousands of United States dollars) Posts 2006-2007 appropriation Change Total 2006-2007 appropriation Change Total Regular budget Post 5 193.1 1 018.8 6 211.9 20 15 35 Non-post 4 411.7 (1 612.4) 2 799.3 Subtotal 9 604.8 (593.6) 9 011.2 20 15 35 Extrabudgetary 8 155.8 — 8 155.8 68 — 68 Total 17 760.6 (593.6) 17 167.0 88 15 103 C. Programme support Additional resource requirements: $164,300 19. Resource requirements reflect three proposed General Service (Other level) posts, through conversion from overall general temporary assistance provisions, to ensure that the Executive Office maintains a capacity to administer increased operations ($144,300). The net increase of $20,000 in non-post provisions reflects requirements for office layout alterations necessary to maximize the use of existing office space for the Office of Internal Oversight Services ($100,000), partially offset by a reduction in general temporary assistance of $80,000. It is anticipated that a total of 2,000 square feet in the four locations of the Office in New York will have to be reconfigured at a cost of $50 per square foot, as part of ongoing efforts to resolve the current shortage of office space. Table 6 Resource requirements Category Resources (thousands of United States dollars) Posts 2006-2007 appropriation Change Total 2006-2007 appropriation Changea Total Regular budget Post 1 445.1 144.3 1 589.4 6 3 9 Non-post 498.0 20.0 518.0 Subtotal 1 943.1 164.3 2 107.4 6 3 9 Extrabudgetary 680.8 — 680.8 2 2 4 Total 2 623.9 164.3 2 788.2 8 5 13 a Extrabudgetary information reflects the planned conversion of general temporary assistance to posts under the peacekeeping support account. III. Office of the Under-Secretary-General for Management 20. Additional resource requirements of $601,400 under section 28A, Office of the Under-Secretary-General for Management, reflect the transfer of four posts (1 D-1, 1 P-5, 1 P-2, and 1 General Service (Other level)) from the Office of Internal Oversight Services in line with the transfer of the management consulting function. In addition, two P-4 posts funded under the peacekeeping support account would be transferred to the Office of the Under-Secretary-General for Management, and would be reflected in the context of the support account budget proposals. In addition to the post requirements of $589,000, related non-post provisions of $12,400 are required to cover costs for communications, maintenance of office equipment and supplies. Table 7 Requirements by component and source of funds (section 28A) (1) Regular budget Component Resources (thousands of United States dollars) Posts 2006-2007 appropriation Change Total 2006-2007 appropriation Change Total A. Executive direction and management 5 437.9 — 5 437.9 8 — 8 B. Programme of work 1. Management services and administration of justice 8 452.0 601.4 9 053.4 16 4 20 2. Services to the Fifth Committee and the Committee for Programme and Coordination 1 354.1 — 1 354.1 5 — 5 C. Programme support 3 809.2 — 3 809.2 17 — 17 Subtotal 19 053.2 601.4 19 654.6 46 4 50 (2) Extrabudgetary Subtotal 5 314.9 325.8 5 640.7 8 2 10 Total, (1) and (2) 24 368.1 927.2 25 295.3 54 6 60 Subprogramme 1 Management services and administration of justice Table 8 Resource requirements Category Resources (thousands of United States dollars) Posts 2006-2007 appropriation Change Total 2006-2007 appropriation Change Total Regular budget Post 3 944.3 589.0 4 533.3 16 4 20 Non-post 4 507.7 12.4 4 520.1 Subtotal 8 452.0 601.4 9 053.4 16 4 20 Extrabudgetary 1 332.2 325.8 1 332.2 7 2 9 Total 9 784.2 927.2 10 385.6 23 6 29 IV. Staff assessment 21. As a result of the post adjustments in the present document, additional requirements amounting to $97,400 arise under section 35, Staff assessment, of the programme budget for the biennium 2006-2007. This amount would be offset by an equivalent amount of income under income section 1, Income from staff assessment. V. Recommendations 22. The General Assembly is requested to approve an additional appropriation of $1,308,800, consisting of $601,400 under section 28A, Office of the Under-Secretary-General for Management, $610,000 under section 29, Internal oversight, and $97,400 under section 35, Staff assessment, to be offset by an equivalent amount of income under income section 1, Income from staff assessment, of the programme budget for the biennium 2006-2007. VI. Organizational structure and post distribution of the Office of Internal Oversight Services for the biennium 2006-2007 a Posts converted from general temporary assistance. b Inward redeployment. c Additional post to replace posts transferred to the Department of Management. Abbreviations: RB, regular budget; XB, extrabudgetary; USG, Under-Secretary-General; GS, General Service; PL, Principal level; OL, Other level. VII. Organizational structure and post distribution of the Office of the Under-Secretary-General for Management for the biennium 2006-2007 a Posts transferred from the Office of Internal Oversight Services. Abbreviations: RB, regular budget; XB, extrabudgetary; USG, Under-Secretary-General; GS, General Service; PL, Principal level; OL, Other level.   sss1 \* MERGEFORMAT A/61/610 sss1 \* MERGEFORMAT A/61/610 FooterJN \* MERGEFORMAT 06-64464 \* MERGEFORMAT 14 \* MERGEFORMAT 13 FooterJN \* MERGEFORMAT 06-64464 United Nations A/61/610 General Assembly Distr.: General 6 December 2006 Original: English jobn \* MERGEFORMAT 06-64464 (E) 111206 Barcode \* MERGEFORMAT *0664464* Office of the Under-Secretary-General RB: 1 USG 1 P-5a 1 P-5b 1 P-4 1 P-3 1 P-3a 1 GS (PL) 2 GS (OL) Executive Office RB: XB: 1 P-5 1 P-3 1 P-4 3 GS (OL) 1 P-3 1 GS (PL) 2 GS (OL) 3 GS (OL)a Inspection and Evaluation Division RB: XB: 1 D-2a 3 P-4 1 D-1 3 P-5 5 P-4 1 P-4b 3 P-3a 1 P-3b 2 P-3c 1 P-2 4 P-2a 2 P-2c 1 GS (PL) 3 GS (OL) 1 GS (OL)a 1 GS (OL)c Internal Audit Division RB: XB: 1 D-2 2 D-1 1 D-1 16 P-5 2 D-1a 37 P-4 4 P-5 24 P-3 1 P-5a 2 P-2 7 P-4 25 GS (OL) 3 P-4a 7 LL 7 P-3 3 P-3a 6 P-2 4 GS (PL) 8 GS (OL) 1 GS (OL)b Investigations Division RB: XB: 1 D-2 1 D-1 1 D-1a 1 P-5 2 P-5 13 P-4 1 P-5a 34 P-3 5 P-4 1GS (PL) 6 P-4a 4 GS (OL) 5 P-3 14 LL 2 P-3a 4 P-2a 2 GS (PL) 3 GS (OL) 2 GS (OL)a 1 LL Office of the Under-Secretary-General RB: 1 USG 1 D-2 Executive Office of the Department RB: 1 D-1 1 P-5 2 P-4 1 P-3 3 GS (PL) 9 GS (OL) Secretariat of the Fifth Committee and the Committee for Programme and Coordination RB: XB: 1 D-2 1 P-3 1 P-5 1 GS (PL) 2 GS (OL) Review and appeals RB: XB: 3 P-5 1 P-4 1 P-4 1 P-3 5 GS (OL) 1 P-3 1 P-2 Principal Office RB: 1 D-1 2 P-5 3 GS (OL) Office for Oversight and Internal Justice RB: XB: 1 D-1 1 P-4 2 P-5 1 P-3 1 P-4 1 GS (OL) 3 GS (OL) Management Consulting RB: XB: 1 D-1a 2 P-4a 1 P-5a 1 P-2a 1 GS (OL)a