EU Presidency Statement - Board of Auditors

EU Presidency Statement on Item 121, Financial reports and reports of the Board of Auditors, by The Permanent Mission of the United Kingdom to the United Nations, on behalf of the European Union, Fifth Committee, New York

Thank you Mr Chairman.

I have the honour to speak on behalf of the European Union. The Acceding Countries Bulgaria and Romania, the Candidate Countries Turkey and Croatia*, the Countries of the Stabilisation and Association Process and potential candidates Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Serbia and Montenegro, EFTA country Iceland, member of the European Economic Area, as well as Ukraine and the Republic of Moldova align themselves with this declaration.

The EU thanks the Board of Auditors for the quality and thoroughness of its reports on the implementation of recommendations in United Nations and on the UNHCR. We attach great importance to the external audit function and therefore the role of the BOA, and commend the high standards of their reports. We also thank the BOA for the cohesive format of the report on implementation, which is both instructive and informative.

Implementing the recommendations of the BOA is a key issue. The EU is encouraged by the number that have already been implemented and is pleased that there is a strong increase compared with the previous report. We would like to propose that the BOA include further assessment on the status of implementation in particular those recommendations that have not yet been implemented. Moreover given the breadth of recommendations, it would be helpful to have an assessment of those that have the most significant impact and therefore which areas necessitate immediate action.

The EU expresses concern that a number of recommendations consistently occur in different parts of the secretariat, indicating a lack of communication. Where weaknesses are identified in one location, these should be corrected throughout the secretariat and not just in that location or department. We would like reassurance that there is follow up on implementation and that remedial actions are taken where such consistent non- implementation takes place.

There are a number of areas which are of concern to the EU, and which we will raise in further detail at the informal session. First, there are many comments on the negative impact of new and expensive IT projects across the board. These have been run with increasing, uncontrolled costs and introduced at a time when the financial position of some agencies is seriously deteriorating, and results of such projects meagre.

Secondly there is the longstanding underlying financial situation of UNHCR, and in particular the wider problems with after service health insurance and post retirement charges as noted by the BOA. In light of the strong increases in expenditures (8%) while resources are stagnating, we face a situation of decreased reserves in tandem with an increase in unfunded liabilities. At the same time the number of refugees dropped from 9.68 million to 9,24 million in 2004. Therefore we support the BOA recommendations to address this problem. At the same time we reaffirm our wish that the UN increase its RB contribution to the UNHCR headquarters in accordance with GA resolution 59/276.

Thirdly, the EU notes with interest the remarks of the BOA on staff management, in particular in the area of fraud prevention where despite the efforts of management recommendations remain only partially implemented. We emphasise once again our wish for the rules of recruitment in the secretariat and agencies to be rigorously implemented.

Fourthly the lack of improvement at UNOPS is of continuing concern especially considering the discussion that was held last year pressing for rapid action. We will follow up these issues in greater detail in the informal session.

In conclusion, we again express our sincere appreciation to the Board for their excellent work.

Thank you Mr Chairman.


* Croatia continues to be part of the Stabilisation and Association Process.

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