United Nations: Observations on Reform Initiatives (Testimony,
06/22/1999, GAO/T-NSIAD-99-196).

Reform at the United Nations, according to the Secretary-General, means
embracing fundamental measures to strengthen the organization and its
efficiency. Some of these measures, including greater accountability and
budget restraint, have been demanded by member states. Other measures
include initiatives announced by the Secretary-General in 1997. This
testimony examines U.N. efforts to (1) unify and focus its
organizational structure; (2) control its budget and institute new
budget procedures; (3) improve oversight, program monitoring, and
evaluation; and (4) improve its human resources management.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-NSIAD-99-196
     TITLE:  United Nations: Observations on Reform Initiatives
      DATE:  06/22/1999
   SUBJECT:  International organizations
	     International cooperation
	     International relations
	     Accountability
	     Performance measures
	     Foreign aid programs
	     Reengineering (management)
	     Cost control
	     Personnel management
IDENTIFIER:  UN Development Assistance Framework

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    United States General Accounting Office GAO
    Testimony Before the Committee on Foreign Relations, U.S. Senate
    For Release on Delivery Expected at                UNITED NATIONS
    2:30 p.m., EDT Tuesday, June 22, 1999              Observations on
    Reform Initiatives Statement of Harold J. Johnson, Associate
    Director, International Relations and Trade Issues, National
    Security and International Affairs Division GAO/T-NSIAD-99-196 Mr.
    Chairman and Members of the Committee: I am pleased to be here
    today to discuss the status of initiatives intended to reform the
    United Nations.  Reform, according to the U.N. Secretary-General,
    means embracing fundamental measures that strengthen the
    organization and its efficiency.  Among these measures are
    initiatives demanded by member states, such as increased
    accountability and budget restraint.  Other measures include
    initiatives the Secretary-General announced in 1997.1 To help
    Congress assess what progress has been made in reforming the
    United Nations, you asked us to examine U.N. efforts intended to
    (1) unify and focus its organizational structure; (2) control its
    budget and institute new budget procedures; (3) improve oversight,
    program monitoring, and evaluation; and (4) improve its human
    resources management.  This testimony represents our preliminary
    assessment.  As requested, we will provide you a comprehensive
    report later this year. My testimony is based on publicly
    available U.N. documents as well as documents available only to
    member delegations and our prior work on U.N. activities, such as
    our recent report on procurement reform.2  We also reviewed
    working files and records obtained from U.N. officials and
    documents obtained from the Department of State and the U.S.
    Mission to the United Nations.  In addition, we held discussions
    with numerous U.N. officials, including the Deputy Secretary
    General and several assistant secretaries-general. To provide
    context for my observations, I will first provide a brief
    background on the conditions that led to the reform measures and
    initiatives. Background              For the past 25 years, U.N.
    member states and others have made attempts to reform the United
    Nations, citing problems such as bureaucratic rigidity, poor
    program performance, duplication and rivalry across its many
    programs, and its high cost.  A specific concern of member states,
    particularly the major donors, was the constantly growing budget
    of  the 1Renewing the United Nations: A Programme for Reform ,
    A/51/950 (New York, N.Y.: United Nations, July 14, 1997); letter
    dated 17 March 1997 from the Secretary-General addressed to the
    President of the General Assembly. 2United Nations:  Progress of
    Procurement Reform (GAO/NSIAD-99-71, Apr. 15, 1999). Letter
    Page 1
    GAO/T-NSIAD-99-196 Secretariat and the seeming inability to
    restrain costs.  Demands were made that U.N. member states adopt
    procedures to control the budget, and, in 1986, the U.N. General
    Assembly adopted consensus budgeting-a process for reaching broad
    agreement without calling for a vote.  The United States supported
    this measure as a step toward ensuring that sufficient attention
    would be paid to the views of the major contributors in the
    development of the budget.  Member states demanded other
    initiatives to increase financial discipline, such as the adoption
    of results-based budgeting and sunset provisions on new U.N.
    programs.  In the early 1990s,the United States and other member
    states identified the lack of effective internal oversight at the
    United Nations as a major problem.  They cited concerns about
    administrative waste and inefficiency.  The Secretariat itself
    identified a crisis in the U.N.'s procurement system that raised
    serious concerns about financial controls.  The U.N. Office of
    Internal Oversight Services (OIOS) was created in 1994 in response
    to concerns such as these.  At the same time, member states also
    demanded systems that could evaluate and monitor the relevance and
    effectiveness of U.N. programs so they could decide which programs
    to retain. In 1994, the Secretary-General reported that the U.N.'s
    management of human resources was in crisis.  The organization was
    faced with new challenges, and its human resources management had
    failed to adequately respond. Among the concerns of the
    Secretariat were a performance appraisal system that did not rate
    staff fairly or consistently, the lack of a code of conduct that
    clearly laid out staff rights and consequences for misconduct, and
    the inability to plan its human resource needs. These problems and
    the demands for change by member states culminated in reform
    initiatives announced in 1997 by the Secretary-General. According
    to the Secretary-General, the United Nations had become
    fragmented, rigid, and, in some areas, irrelevant.  The United
    Nations had also created duplicative bodies, rather than
    instituting effective management structures.  To build a cohesive
    organization that acted with a unity of purpose and deployed its
    resources strategically, the Secretary-General incorporated many
    of the earlier demands for  reform into his initiatives, as well
    as other initiatives to restructure the United Nations. Summary
    The Secretary General has said, and I agree, that reform is a
    process and not an event.  Based on our preliminary assessment, we
    believe that the Secretary-General has undertaken a serious effort
    to reform the United Letter    Page 2
    GAO/T-NSIAD-99-196 Nations to improve its relevance to member
    states and enhance its operational efficiency.  Although clear
    progress has been made in some areas, the initiatives we examined
    have not been fully implemented. Progress has been made in
    unifying and focusing the organizational structure of the U.N.
    Secretariat, and the programs that are part of the United Nations
    proper, to make the Secretariat a more cohesive management unit.
    The Secretary-General appointed a deputy secretary-general to
    function as the chief operating officer and to strengthen internal
    coordination.  A senior management group, composed of the under
    secretaries-general and the heads of those programs that report to
    the Secretary-General, was also created.  This group meets weekly
    to ensure U.N. actions are unified and focused on the same
    objectives.  In sharp contrast with the past, where under
    secretaries operated with great autonomy, this new structure
    provides regular opportunities to communicate, coordinate, and
    focus the work of U.N. departments, offices, and programs on
    common objectives.  While we believe this new structure, now about
    2 years old, is a positive move, the proof of its success will be
    measured in the field, where programs are actually implemented.
    Because we are still in the preliminary phase of our evaluation,
    we have not yet tested the new structure's actual impact on
    improving program delivery and effectiveness.  Also, I should add
    that this new structure does not include the specialized agencies,
    such as the Food and Agricultural Organization, the International
    Labor Organization, and the World Health Organization, and
    consequently, the long-standing concerns about overlap,
    duplication, and coordination within the U.N. system as a whole
    are not being addressed by this organizational restructuring.
    While budgets have been level for the past two bienniums, our
    assessment thus far indicates that no fundamental changes have
    been made to the budgeting process to control the growth of the
    regular budget.  The process for developing budgets is largely
    unchanged, and, adopting regular budgets by member state consensus
    does not assure control of budget growth, as initially hoped.  For
    example, in developing the budget for 2000-2001 the United States
    and Japan, which provide over 45 percent of the U.N.'s financial
    support, objected that the preliminary budget ceiling was set too
    high.  However, no vote was taken to record their dissent, and the
    measure passed by  consensus.  Also, the largest donors do not
    have permanent seats on the Advisory Committee on Budgetary and
    Administrative Questions, where they could most effectively
    advocate budget restraint. Moreover, although the Secretariat
    supports implementing results-based Page 3
    GAO/T-NSIAD-99-196 budgeting and sunset provisions, initiatives
    intended to bring more discipline to the budgetary process, these
    measures have not been adopted. Nonetheless, some progress has
    been made.  The Secretariat has instituted a program intended to
    cut costs and increase efficiencies.  It has thus far reported
    over $13 million in savings by introducing more than 600
    efficiency projects. An area where important improvements have
    been made is in the oversight of U.N. programs and activities;
    however, even here the effort should not be considered complete.
    Through the efforts of Congress, the executive branch, and other
    U.N. member states, the U.N. Office of Internal Oversight Services
    was created in 1994.  As we reported to you in 1997, OIOS has
    established itself as the internal oversight mechanism for the
    U.N. Secretary-General3  and, based on our continuing work at the
    United Nations, this office appears to have become an
    institutional part of the United Nations.  OIOS has clearly
    enhanced and strengthened the audit, inspection, and
    investigations functions at the United Nations.  However, progress
    has been much slower in developing and implementing a monitoring
    and evaluation system to measure and report on program performance
    and effectiveness that would help member states make program
    decisions. To begin addressing what the U.N. Secretariat
    considered a crisis in its human resources management, it recently
    introduced several initiatives and adopted a strategy to carry
    them out.  These initiatives include a new performance appraisal
    system, adoption of a staff code of conduct, and actions to begin
    human resources planning.  However, these initiatives have not yet
    been fully implemented, and some problems have developed in their
    implementation.  For example, after the new merit-based appraisal
    system, introduced in 1996, was applied during the most recent
    rating period, the Secretary-General asked three departments to
    revise the ratings because they were too high and were out of line
    with the rest of the Secretariat.  Also, the code of conduct,
    adopted in December 1998, does not provide the Secretariat with
    clear procedures for applying related disciplinary measures for
    systematic management problems, negligence, and gross negligence.
    Additionally, while the Secretariat has begun using an automated
    database as the basis for its human resources planning, the
    information system is unable to account for and track all staff
    working for the U.N. Secretariat. 3United Nations: Status of
    Internal Oversight Services (GAO/NSIAD-97-59, Apr. 9. 1997). Page
    4
    GAO/T-NSIAD-99-196 With that brief summary, I would like to
    discuss each of these reforms in greater detail. Organizational
    To begin unifying and focusing the United Nations, the Secretary-
    General Restructuring                     announced a major
    reorganization in 1997 and since that time, has taken action to
    implement the changes.  In particular, * a deputy secretary-
    general was appointed to essentially perform the functions of a
    chief operating officer and ensure coordinated U.N. operations; *
    a senior management group was established to set overall policy
    direction; * four executive committees were formed to implement
    the policies and ensure that the actions were coordinated among
    the U.N. organizations; * the U.N. Development Assistance
    Framework was implemented to coordinate the U.N.'s development
    efforts in the field; * various departments and offices were
    restructured and consolidated to strengthen and focus the U.N.'s
    response to humanitarian emergencies; and * human rights
    activities were consolidated, and steps were taken to strengthen
    human rights activities and integrate them into the overall
    activities of the organization. Deputy Secretary-General
    As an integral part of building a cohesive and unified management
    and the Senior Management  structure, the Secretary-General asked
    the General Assembly to approve Group
    the position of deputy secretary-general, whose job would be to
    strengthen coordination, collaboration, and uniformity of focus in
    U.N. operations. The General Assembly approved the position in
    December 1997, and the Secretary-General appointed an experienced
    diplomat as Deputy Secretary-General in January 1998.   Since
    then, the Deputy Secretary-General has worked on many of the day-
    to-day operational issues to ensure that U.N. activities are
    unified. The Deputy Secretary-General chairs the senior management
    group in the Secretary General's absence and has also worked on
    ensuring a consistent U.N. response to personnel reforms and a
    coordinated approach to U.N. activities, such as in Afghanistan.
    The Secretary-General also established a senior management group,
    composed of all the under secretaries-general and the heads of the
    U.N. funds and programs, to provide unified and clear leadership
    for the Page 5
    GAO/T-NSIAD-99-196 organization.  (See app. I for a list of the
    members of the senior management group.)  According to the Under
    Secretary-General for Internal Oversight, through the leadership
    of this group, communication and coordination among U.N.
    organizations has improved.  The senior management group meets
    weekly with the Secretary-General to discuss U.N. operations and
    agree on unified actions and policy direction.  Full attendance
    almost always occurs (sometimes by videoconference) because
    important decisions for the United Nations as a whole are made,
    and the senior managers all have a stake in these decisions.
    Previously, the heads of the funds and programs and other senior
    managers had no regular mechanism to coordinate overall U.N.
    activities; some met with each other only once a year at the
    General Assembly. According to the Deputy Secretary-General, the
    senior management group discusses all major issues affecting the
    United Nations and agrees on a common strategy for them.  For
    example, decisions such as how the United Nations would develop a
    unified response to the crisis in Kosovo and how to implement
    personnel reforms consistently across the organization have been
    discussed and agreed upon.  In deciding on its responses to the
    unfolding events in Kosovo, the High Commissioner for Refugees
    regularly reports to the group and describes her field visits.
    Since the Emergency Relief Coordinator is also one of the group's
    members, a unified U.N. response has been planned.  As such, it
    was has been agreed that the High Commissioner's office will lead
    the U.N.'s immediate response to the humanitarian crisis in Kosovo
    with help from the Emergency Relief Coordinator.  According to the
    Deputy Secretary-General, the work of the executive committees
    provides a good indicator of how well the senior management group
    is working because the executive committees plan and implement
    programs in accord with the direction set by the senior management
    group. Executive Committees    Four new executive committees-(1)
    peace and security, (2) humanitarian affairs, (3) economic and
    social affairs, and (4) development operations- were established
    to plan and implement focused and unified U.N. action as agreed to
    by the senior management group.  The Secretary-General placed U.N.
    departments, offices, and the programs and funds into appropriate
    groups; named a convenor of each committee from the senior
    management group; and expected the committees to coordinate, plan,
    and implement U.N. activities as teams. (App. II compares the U.N.
    organization before and after these reforms.)  According to senior
    U.N. officials, the concept of the senior management group and
    executive committees grew out of Page 6
    GAO/T-NSIAD-99-196 recognition that the U.N. system was too
    vertical, with each organization operating in a stovepipe fashion,
    reporting only to the Secretary-General and, in some cases, their
    governing committees.  There was also frustration that some
    programs, with their own sources of funding, did not consider
    systemwide U.N.  programming a priority. All executive committees
    have been meeting regularly since late 1997.  For example, as of
    April 1999, the economic and social affairs committee had met
    formally 15 times.  According to members of these committees, the
    under secretaries-general and heads of offices frequently attend
    the meetings because they all have a stake in shaping overall U.N.
    programming in their areas.  Some examples of the committees' work
    include the following: * The Executive Committee for Peace and
    Security developed a unified plan for the referendum in East
    Timor, involving the Departments of Peacekeeping Operations and
    Political Affairs, the Human Rights Coordinator, and other
    committee members. * The Executive Committee for Humanitarian
    Affairs developed a unified U.N. response to Hurricane Mitch and
    negotiated U.N. access to areas controlled by the Union for the
    Total Independence of Angola, on behalf of all committee members
    including the High Commissioner for Refugees, the U.N. Development
    Program, and the U.N. Children's Fund. * The Executive Committee
    for Economic and Social Affairs developed an online statistical
    database of all activities undertaken by 12 of its members, which
    can sort the activities by issue, type of activity (such as a
    conference or publication), location, and date. * The Executive
    Committee for Development Operations has begun implementing the
    U.N. Development Assistance Framework after completing pilot tests
    in 18 countries.  (The framework is more fully described below.)
    U.N. Development        To better coordinate the efforts of U.N.
    organizations and build an Assistance Framework    integrated
    program  for its development activities, the United Nations is
    implementing the U.N. Development Assistance Framework  in
    countries where it provides assistance.  One view of the framework
    is that it translates a country's need for development assistance
    into a coordinated operational plan of action among U.N. agencies.
    The framework document is prepared jointly by a team composed of
    all U.N. organizations in a country.   The team agrees upon and
    specifies U.N. objectives; strategies of cooperation; projects to
    be undertaken; and proposals for follow-up, Page 7
    GAO/T-NSIAD-99-196 monitoring, and evaluation.  In August 1997, a
    pilot phase was initiated to test the framework in 18 countries.
    In May 1998, an assessment of the pilot phase was started, with
    all the principal framework organizations in attendance.  In April
    1999, the United Nations approved the guidelines for preparing and
    implementing the framework, and the General Assembly passed a
    resolution recognizing the move to full implementation.4  As of
    April 1999, final frameworks had been completed in 11 countries,
    with 6 frameworks co-signed by the World Bank.5 While progress has
    been made in implementing the framework, the critical question is
    whether participating U.N. organizations will work together.  At
    the assessment workshop in September 1998, it was noted that a
    cultural change is required for the framework to succeed.  This
    necessitates commitment at all levels of the U.N. system.  The
    experience in Guatemala illustrates the issue.  Seventeen U.N.
    system organizations have activities in Guatemala, with a
    portfolio of about $400 million and a total staff of about 800
    local and international workers.  The U.N. organizations and the
    World Bank participated in developing the framework and
    identifying priority objectives with the Guatemalan government.  A
    shared information database with indicators was also developed,
    and lead agencies were given specific tasks. However, according to
    the U.N. country team's report to the U.N. Economic and Social
    Council, the headquarters of each U.N. agency set the tone for
    cooperation.  The message from headquarters to the field was that
    individual agency results were more important than overall U.N.
    system results.  Our own reports have found similar problems in
    U.N. cooperation.  Our 1998 evaluation of the Joint U.N. Program
    on the Human Immunodeficiency Virus/Acquired Immunodeficiency
    Syndrome found that U.N. agencies in the field had difficulty
    working together and coordinating their activities.6 Concerns
    about a joint program led to lack of commitment to working
    together on the part of some agency officials. 4Resolution Adopted
    by the General Assembly, A/RES/53/192 (New York, N.Y.: United
    Nations, Feb. 25, 1999). 5The World Bank has introduced the
    Comprehensive Development Framework to involve all aid donors in
    planning assistance activities within a country.  The U.N.
    Development Assistance Framework and the Bank's Comprehensive
    Development Framework are intended to be complementary. 6HIV/AIDS:
    USAID and U.N. Response to the Epidemic in the Developing World
    (GAO/NSIAD-98-202, July 27, 1998). Page 8
    GAO/T-NSIAD-99-196 Restructuring Humanitarian  In March 1998, the
    United Nations began reorganizing Secretariat units to Affairs
    launch coherent and coordinated humanitarian operations.   The
    Department of Humanitarian Affairs was dissolved and replaced with
    the Office for the Coordination of Humanitarian Affairs, headed by
    the Emergency Relief Coordinator.  The office's role was narrowed
    to focus on three core functions: (1) policy planning and
    development, (2) advocacy (including fund-raising), and (3)
    coordination of humanitarian emergency response.  Other emergency-
    related activities were redistributed within the U.N. system.  For
    example, demining activities were transferred to the Department of
    Peacekeeping Operations, and demobilization of combatants was
    transferred to the U.N. Development Program.  In addition, the
    Office of the Emergency Relief Coordinator was reorganized and its
    staff was reduced from 250 to 137 professionals.  According to a
    Department of State official, this change represented the most
    visible and positive indication of reform, as the previous
    directorate was overstaffed and lacked leadership. As part of the
    restructuring of humanitarian affairs, the United Nations
    initiated the Strategic Framework concept.  The framework is
    intended to unify the actions of U.N. agencies in countries that
    are in conflict or have just completed peace agreements.   To
    date, the Strategic Framework has been employed only in
    Afghanistan, but the United Nations plans to utilize the approach
    in Sierra Leone.  According to Department of State officials, the
    Strategic Framework faces challenges of coordination similar to
    the U.N. Development Assistance Framework.  A U.N. report on the
    experience in Afghanistan has not been completed. Human Rights
    In his reform proposals, the Secretary-General committed to
    strengthening the U.N.'s human rights programs and fully
    integrating them into the organization's activities.  As a first
    step, representatives from the High Commissioner for Human Rights
    were placed on all four executive committees.  According to a
    senior official in the New York Human Rights Office, the High
    Commissioner has taken advantage of this opportunity and made
    human rights activities a part of all programs.  For example, the
    High Commissioner provided input into the formulation of
    guidelines for the development assistance framework.  Human rights
    activities are now a component of each framework and are included
    in country programs such as Guatemala, Malawi, and Mozambique in
    the form of specific training and outreach programs on human
    rights.  According to U.N. officials, the elevation of human
    rights as an issue and its inclusion into these programs
    represents a marked change from less than 2 years ago. Page 9
    GAO/T-NSIAD-99-196 The United Nations has taken other steps to
    strengthen human rights activities, such as * consolidating the
    Center for Human Rights into the Office of the High Commissioner
    for Human Rights and restructuring the Office by reducing the
    number of divisions from five to three, * upgrading the head of
    the High Commissioner's office in New York to the level of
    director and adding five staff, * conducting an analysis of
    technical assistance related to human rights provided by U.N.
    agencies in order to formulate proposals for their improvement,
    and * working to establish a human rights data bank to disseminate
    information and analysis. Despite the gains made in reforming the
    U.N.'s human rights program, challenges persist.  For example,
    including  human rights as a basic consideration in U.N.
    activities is not supported by all countries. According to a
    Department of State official, human rights issues are highly
    political for member states, and U.N. agency officials are often
    hesitant to raise these issues with member governments out of fear
    of jeopardizing their access in the country and damaging their
    particular program. Reforms related to increasing the efficiency
    of the human rights entities have also not progressed.  According
    to State Department officials, the High Commissioner has not
    reduced the duplication and overlap in human rights reporting by
    the 11 treaty bodies and 37 Special Rapporteurs because member
    states control the requirements and have not agreed to changes.7
    Budget Control and     Although the United Nations has maintained
    level budgets for the past two Results-Based          bienniums,
    our preliminary assessment indicates that no fundamental changes
    have been made to the budgeting process to control the growth of
    Budgeting              the regular budget-an area of long-standing
    concern of your Committee. Under procedures adopted by the General
    Assembly in 1986, the U.N.'s 7Several U.N. human rights treaties,
    aimed at providing increased protection to vulnerable groups, have
    been adopted and come into force upon ratification by the
    requisite number of States parties, such as the International
    Convention on the Elimination of All Forms of Racial
    Discrimination (1965) and the Convention against Torture and Other
    Cruel, Inhuman or Degrading Treatment or Punishment (1984). The
    implementation of these core human rights treaties is monitored by
    committees, or "treaty monitoring bodies." The Commission on Human
    Rights and the Economic and Social Council have established a
    number of extra-conventional procedures and mechanisms that have
    been entrusted to Special Rapporteurs or experts.  Their mandates
    are to examine, monitor, and publicly report on human rights
    situations in specific countries or on major human rights
    violations worldwide. Page 10
    GAO/T-NSIAD-99-196 regular budget is approved by consensus.8
    Under consensus budgeting, the Secretary-General submits to the
    General Assembly a budget outline that contains a preliminary
    estimate of funding requirements.  The Advisory Committee on
    Administrative and Budgetary Questions reviews the proposed
    funding requirements.  A larger administrative committee, the
    Fifth Committee, then tries to obtain the broadest possible
    agreement among members in approving a level for the Secretary-
    General to use in preparing the budget. The process does not
    appear to have assured that the views of the major donors have
    been sufficiently considered thus far in formulating the 2000-2001
    budget.  In 1998, the General Assembly approved a preliminary
    budgeting level equivalent to $2.655 billion for the 2000-2001
    biennium, in comparison to the estimated $2.527 billion for 1998-
    99 budget.  Any member state can request a vote in the General
    Assembly if it dissents, thus breaking the consensus on the
    preliminary level.9  The United States and Japan, which together
    pay about 45 percent of the regular budget, did not agree.
    However, neither member requested a vote.  Consequently, the level
    was formally approved by consensus, even though the two largest
    donors dissented.  State officials predicted that the actual
    budget-developed later in the year-would be lower than the
    preliminary estimate.  State officials said they would consider
    requesting a vote if the final budget level was considered to be
    too high. Another aspect of controlling the level of the budget
    involves the work of the Advisory Committee on Administrative and
    Budgetary Questions. Although the advisory committee plays a
    crucial role in determining the regular budget level, member
    states that pay the largest share of the budget do not have
    permanent seats on the committee.  For example, the United States,
    Japan, Germany, France, and Italy combined are assessed about 67
    percent of the regular budget, but none has a permanent seat on
    this key financial committee.10  The committee's role is to review
    the budgets and finances of the United Nations and make
    recommendations to the General 8Review of the Efficiency of the
    Administrative and Financial Functioning of the United Nations, GA
    Res. 41/213 (New York, N.Y.: United Nations Dec. 19, 1986). 9Rules
    and Procedures of the General Assembly (A/520/Rev.15) (New York,
    N.Y.; United Nations, Dec. 31, 1984) 10France, Italy, and Japan
    are current members of the Advisory Committee on Administrative
    and Budgetary Questions.  The 16 members of the committee are
    elected by the General Assembly and serve 3 year terms.  The rules
    of procedure of the Committee are confidential. Page 11
    GAO/T-NSIAD-99-196 Assembly on budget levels and other financial
    issues.  According to State Department officials, the committee is
    particularly influential because its members have the most
    knowledge of and expertise about the U.N. budget process. You
    requested that we examine whether the regular U.N. budget for
    1998-99 will have zero nominal growth.  At this point, it is
    uncertain whether there will be zero nominal growth in the 1998-99
    budget compared to the prior biennium, although the Secretariat
    estimates that the final budget amount for 1998-99 will be lower
    than the final amount for 1996-97.   However, the uncertainty
    comes about because in comparing budgets, the amount for 1998-99
    needs to be adjusted to reflect new accounting procedures used in
    determining the budget levels.11   To make a valid comparison with
    the 1996-97 biennium, the costs of jointly funded activities would
    need to be included in the 1998-99 budget. Another indicator of
    budget restraint is holding spending to the level initially
    approved.  For the 1996-97 biennium, U.N. budget expenditures were
    about $61 million less than the initially approved budget.
    However, expenditures were lower than forecast because the strong
    U.S. dollar resulted in currency exchange gains of about $49
    million and the United Nations hired fewer staff than it had
    budgeted for, saving an additional $34 million.  Some savings were
    used to pay for the costs for special political missions, such as
    the mission in Guatemala.12   The United Nations will likely
    maintain a budget level at or below the approved level for the
    1998-99 biennium.  The United Nations estimates that it will spend
    about $6 million less than the initially approved budget.
    However, savings of more than $56 million from a strong U.S.
    dollar, lower-than-expected staff costs, and a lower-than-expected
    inflation rate are expected to provide the Secretariat a
    cushion.13 11Under the accounting change adopted in 1998-99, net
    budgeting is used.  Member states are assessed only their share of
    costs payable for jointly funded activities.  Programme Budget for
    the Biennium 1998-1999, First Performance Report, A/53/693 (New
    York, N.Y.: United Nations, Nov. 23, 1998). 12Programme Budget for
    the Biennium 1996-1997, Second Performance Report, A/C.5/52/32
    (New York, N.Y.: United Nations, Dec. 11, 1997). 13The Advisory
    Committee on Administrative and Budgetary Questions has considered
    ways to stabilize the budget from currency fluctuations, neither
    creating a windfall when the dollar is strong nor a deficit when
    the dollar is weak.  To accomplish this, a separate account needed
    to be established, and this action was not supported by member
    states. Page 12
    GAO/T-NSIAD-99-196 Results-based Budgeting     The Secretary
    General recommended a shift to performance, or and Sunset
    Provisions       results-based budgeting, to focus the
    organization more on accountability for achieving results rather
    than completing tasks.  Although strongly supported by the United
    States and other major donors, this measure was not adopted
    because some members, mainly developing countries, did not support
    it.  Results-based budgeting requires program managers to identify
    indicators for judging the substantive impact of their programs
    and justify their programs' effectiveness based on these results.
    According to senior U.N. and U.S. officials, implementing this
    system would require "a major cultural shift" among members and
    U.N. managers and a valid system for evaluating program
    effectiveness.  At the General Assembly's request, the Secretary-
    General has produced several reports in support of this
    initiative14  and provided prototypes of a results-based budget
    for sections of the Secretariat.15   Although the General Assembly
    has considered these reports, it has not adopted the initiative.
    The Secretary-General's initiatives also called for new program
    mandates to include specific time limits, or "sunset" provisions.
    Sunset provisions would require the General Assembly to renew
    programs periodically, based on an evaluation of their
    effectiveness.  As with results-based budgeting, this initiative
    was supported by the United States and other major donors, but
    some member states, particularly developing countries, did not
    support it.  Many of these members are reluctant to approve an
    initiative that they perceive could threaten the continuation of
    programs they deem important. Initiatives to Reduce       As part
    of the overall effort to improve U.N. operations, the Overhead
    Costs              Secretary-General proposed to reduce overhead
    costs from 38 percent of the U.N. regular budget to 25 percent and
    set a savings goal of $200 million. These savings would be placed
    in a development account.  Projects to eliminate duplication and
    waste were to generate these savings.  The Secretariat has
    initiated over 600 such projects, some of which have resulted in
    considerable savings.  The Secretariat has not released an
    estimate of the total savings generated by efficiency projects,
    but officials believe the goal of saving $200 million is
    optimistic.  Thus far, the 14See, for example, Report of the
    Secretary General: Addendum Results-based Budgeting, A/51/950/Add.
    6 (New York, N.Y.: United Nations, Nov. 12, 1997). 15United
    Nations Reform: Measures and Proposals, A/53/500/Add. 1 (New York,
    N.Y.: United Nations, Oct. 15, 1998). Page 13
    GAO/T-NSIAD-99-196 Secretariat reports that $13 million from these
    projects, primarily from consolidation of services and
    departments, has been put into a development account.  Examples of
    some efficiency projects undertaken with estimated savings are *
    abolishing the High-level Board on Sustainable Development, which
    saved an estimated 362,000; * shifting from subsidizing food
    services to a profit-sharing arrangement with contractors, which
    generates at least $500,000 in income annually; * chartering air
    service for police monitors rather than purchasing individual
    tickets, which saved an estimated $1 million in 1997; and *
    consolidating mainframe computer operations, which saves an
    estimated $1.2 million annually. Oversight, Monitoring,  At the
    insistence of member states, the United Nations took steps to and
    Evaluation                   improve internal oversight of its
    programs by establishing OIOS.   Since then, the United Nations
    has improved oversight, and accountability is being taken more
    seriously.  For example, in 1997, we reported to you that OIOS had
    resolved its start-up and operational problems in an
    organizational environment that had  previously operated without
    effective internal oversight mechanisms for almost half a
    century.16  We noted, however, that OIOS is not required to and
    does not submit all reports to the Secretary-General and the
    General Assembly, and we suggested that it clarify its criteria
    for which reports it will submit.  In response, the Under
    Secretary-General for Internal Oversight said he would publish the
    titles of all reports in the annual report.  Since then, he has
    done so.  As of April 1999, OIOS had completed 64 reports that
    were available to all member states.  Some have been hard-hitting
    reports.  One found serious deficiencies, improprieties, and
    weaknesses in management control in the U.N. operation in Angola
    that may have fostered fraud and financial abuse.17   Another
    report found that a senior U.N. official had used his position to
    commit 59 separate instances of fraud to steal large amounts of
    the organization's project funds, without triggering internal
    alarms.18  As of 16United Nations: Status of Internal Oversight
    Services . 17Report of the Secretary-General on the Activities of
    the Office of Internal Oversight Services: Note by the Secretary-
    General, A/52/881 (New York, N.Y.: United Nations, Apr. 28, 1998).
    18Allegations of Theft of Funds by a United Nations Conference on
    Trade and Development Staff Member: Note by the Secretary-General,
    A/5381 (New York, N.Y.: United Nations, Jan. 28, 1999). Page 14
    GAO/T-NSIAD-99-196 June 1998, OIOS had issued 4,042
    recommendations for management improvement or action to address
    misconduct.  The Secretariat had implemented 73 percent of these
    recommendations, according to OIOS records.  We have not analyzed
    the recommendations or the actions taken to implement them. An
    indication that oversight and accountability are being taken more
    seriously is the consistent number of waste, fraud, and abuse
    reports made to OIOS' investigations section.  Between 1994, when
    OIOS was established, and December 1998, the investigations
    section received 846 reports.  In 1994, it received 110 reports
    and since then has received at least 165 reports a year.
    According to the head of OIOS' investigations unit, 595
    investigations have been completed, and action has been taken on
    every report in which a corrective personnel measure or
    disciplinary action was recommended.  Also, unit managers have
    increasingly asked OIOS to conduct investigations within their
    units because they know they have a problem and need advice on how
    to deal with it, according to the Under Secretary-General for
    OIOS. Monitoring     An adequate system of monitoring program
    performance is essential in ensuring greater accountability.
    However, not much progress has been made in improving the
    Secretariat's system for monitoring programs. Although many U.N.
    offices and departments now provide on-line data about program
    outputs, such as the number of conferences held, member states
    find this data to be of limited value because it does not indicate
    whether the program is accomplishing its mandate.  For example,
    the performance report on crime control states that 78 programs on
    planning, crime prevention, and collaborative effort have been
    implemented.  The narrative explains that an implementation rate
    of 77 percent was achieved, including over 70 advisory missions to
    member states.  However, there are no indicators or assessment of
    what was achieved in planning and crime prevention or on these
    advisory missions or how they helped the beneficiaries.  For
    years, the U.N. Committee for Programme and Coordination has
    recognized the limitations of this system and has recommended
    improvements. In 1998, the Committee concluded there was a need to
    monitor and evaluate the quality of performance and recommended
    that the Secretary-General propose ways in which the Page 15
    GAO/T-NSIAD-99-196 quality of mandated programs and activities
    could be better assessed and reported to member states.19
    Evaluation    Currently, the United Nations does not have an
    adequate system for evaluating the effectiveness of its programs,
    including a standard methodology that uses performance indicators
    and would support results-based budgeting.  Although many U.N.
    departments and offices have their own evaluation units and they
    conduct various types of evaluations, ranging from efficiency
    reviews to self-evaluations to lessons learned, they do not have
    standard methodology guidelines or criteria.20 According to the
    Director of OIOS' Central Evaluation Unit, evaluation guidelines
    on methodology are being drafted but do not focus on program
    effectiveness.21   Evaluation emphasis is moving away from
    determining program effectiveness in meeting goals and objectives
    to management and problem-solving reviews, according to this
    official.22 Despite the emphasis on broad-based management
    reviews, developing an adequate system for determining program
    effectiveness is important for member states.  The U.N. Committee
    for Programme and Coordination recently stressed that evaluation
    should be based on standards that enable member states to assess
    the efficiency and effectiveness of the program.  It further
    stressed that evaluation standards and analysis should utilize
    performance indicators.23  According to the Under Secretary-
    General for OIOS and other U.N. officials, the United Nations
    still has a long way to go in developing a framework to evaluate
    the effectiveness of its programs. The Secretary-General also
    agreed that evaluations of U.N. programs have 19Report of the
    Committee for Programme and Coordination on the first part of its
    thirty-eighth session, A/53/16, part 1 (New York, N.Y.: United
    Nations, Jul. 8, 1998); Report of the Secretary-General:
    Methodology for Monitoring and Reporting the Programme Performance
    of the United Nations, A/46/173 (New York, N.Y.: United Nations,
    May 14, 1991). 20Strengthening the Role of Evaluation Findings in
    Programme Design, Delivery and Policy Directives, A/53/90 (New
    York, N.Y.: United Nations, Mar. 25, 1998). 21Existing U.N.
    monitoring and evaluation guidelines do not provide methodologic
    guidance but state that each major activity should be the subject
    of a critical assessment every 4 years that examines both the
    efficiency of the activity and its effectiveness.  The guidelines
    also note that findings should be based on evidence, including
    records of opinions of independent experts and the views of
    clients and users. 22Strengthening the Role of Evaluation Findings
    in Programe Design, Delivery and Policy Directives, A/49/99 (New
    York, N.Y.: United Nations, Mar. 23, 1994). 23Report of the
    Committee for Programme and Coordination on the work of its
    thirty-eighth session. Page 16
    GAO/T-NSIAD-99-196 been primarily management oriented and have not
    addressed the question of the continuing validity of the programs
    themselves.24 Human Resources     The Secretariat has begun to
    reform its human resources management, Management
    introducing initiatives such as a new merit-based staff appraisal
    system and a code of conduct and beginning to plan for its human
    resources needs. The Secretariat also developed a comprehensive
    plan for reforming its management of human resources and laid out
    a strategy for implementing it.25  According to U.N. officials,
    the success of their plan will require the full cooperation of
    managers and staff and the support of member states. Currently,
    however, the initiatives we examined have not been fully
    implemented, and there have been problems in carrying them out.
    For example, for the year 1996, the United Nations introduced a
    merit-based performance appraisal system.  The appraisal requires
    the rater and the ratee to agree on goals that the ratee will
    achieve during the rating period and to specify measurable
    criteria or indicators of success in reaching these goals.  The
    ratee is rated on a 5-point scale, ranging from "does not meet
    performance expectations" to "consistently exceeds performance
    expectations."  The guidelines state that the rating system is not
    intended to impose a mandatory bell curve.  However, the
    guidelines also state that when staff are honestly and
    appropriately appraised, about 5 percent will have the highest and
    lowest rating. The Secretariat used its performance appraisal
    system  for a third time in its 1998  annual assessment cycle.
    About 8,000 of the 14,000 staff directly supervised under U.N.
    authority were covered by the appraisal system, according to U.N.
    human resources officials.  Out of the 8,000 staff participating
    in  the 1998 appraisal cycle, U.N. officials stated that fewer
    than 10 individuals had received the bottom rating, the
    consequences of which could be dismissal for poor performance.
    Three departments were judged to  have inflated ratings, and the
    Secretary-General sent letters to the managers of these
    departments, telling them to ensure the ratings were consistent
    with the rest of the Secretariat.  The Secretariat did not provide
    24Report of the Secretary-General on the Activities of the Office
    of Internal Oversight Services. 25Human Resources Management
    Reform: Report of the Secretary-General, A/53/414 (New York, N.Y.:
    United Nations, Oct. 13, 1998). Page 17
    GAO/T-NSIAD-99-196 us with summary statistics for the 1998
    performance appraisal cycle, stating that the results are under
    review. One problem with the current performance appraisal system
    is that organizational skills are not clearly defined and
    benchmarks for determining performance on those skills are
    lacking.  In October 1998, the Secretary-General reported that a
    statement of core and managerial competencies was still under
    development and that it would become a base for building other
    human resource systems, including performance appraisals.26 Code
    of Conduct and        In December 1998, the United Nations issued
    a code of conduct for its Disciplinary Procedures    employees:
    Status, Basic Rights and Duties of United Nations Staff Members.
    The United Nations used the new code to clarify the applicability
    of the U.N. regulations and rules to all staff under the
    Secretary-General's authority, including the funds and programs.
    The code established systemwide guidelines for conduct rooted in
    the U.N. charter. The code stated that the paramount
    considerations for staff employees are competence, efficiency, and
    integrity.  Accountability is also of primary concern.  For
    example, the code has conflict-of-interest provisions such as that
    staff members shall not be actively associated with the management
    of or hold a financial interest in any profit-making, business, or
    concern, if the staff member or the profit-making business or
    other concern might benefit from such association because of the
    staff member's  position with the United Nations.  Staff members
    at the Assistant Secretary-General level and above are also
    required to file financial disclosure statements.  In another
    section of the code, staff are obligated to respond fully to
    requests for information from officials of the United Nations
    authorized to investigate possible misuse of funds, waste, or
    abuse.   Finally, the code makes it clear that failure to comply
    with the code's obligations and the U.N.'s standards of conduct
    will subject a staff member to disciplinary procedures. Although
    the United Nations has adopted a code of conduct, member states
    have questioned the Secretariat's ability to follow up and
    discipline staff for misconduct. Concern about actions such as
    this have been an issue 26Performance Management: Report of the
    Secretary-General, A/53/266 (New York, N.Y.: United Nations, Aug.
    14, 1998). Page 18
    GAO/T-NSIAD-99-196 for years.27  Recently, the U.N. General
    Assembly requested the Secretary-General to submit to it a report
    on the follow-up of management irregularities that caused
    financial losses to the organization.  The Secretary-General
    submitted his report to the General Assembly in March 1999,28 but
    the General Assembly considered it incomplete.  It did not explain
    what had been done since 1994 to develop procedures to deal with
    cases of  fraud and other actions causing financial losses to the
    organization.29 The Secretariat does have procedures for dealing
    with fraud, including summary dismissal.  However, according to
    the Assistant Secretary-General for Human Resources, the
    Secretariat does not have clear procedures or policies for dealing
    with cases such as systematic management problems, negligence, and
    generally poor performance.  Its record on taking action against
    individuals falling into these categories has been inconsistent.
    Commenting generally on the situation, an official in the Human
    Resources section said the Secretariat recognizes it has a problem
    in this area and is now acting to address it. Human Resources
    Planning As part of its reform measures, the United Nations has
    committed to long-range human resources planning so it can place
    the right staff in the right place at the right time.  As part of
    this effort, it has been developing an automated database that
    would account for and track staff employed worldwide.   The
    automated database is the U.N.'s Information Management System
    (IMIS), which uses satellite relays to link field offices with
    headquarters.  The IMIS database contains basic management
    information, such as data on employees, including position, years
    of service, specialization, and payroll information.  However,
    IMIS is not yet 27Alleged Cases of Fraud in the United Nations:
    Study of the Possibility of the Establishment of a New
    Jurisdictional and Procedural Mechanism or of the Extension of
    Mandates and Improvement of the Functioning of Existing
    Jurisdictional and Procedural Mechanisms, A/AC.243/1994/L.3 (New
    York, N.Y.: United Nations, Apr. 4, 1994). 28Management
    Irregularities Causing Financial Losses to the Organization,
    A/53/849 (New York, N.Y: United Nations, Mar. 3, 1999).
    29Management Irregularities Causing Financial Losses to the
    Organization: Report of the Advisory Committee on Administrative
    and Budgetary Questions, A/53/954  (New York, N.Y.: United
    Nations, May 11, 1999). Page 19
    GAO/T-NSIAD-99-196 functioning worldwide.30 According to U.N.
    officials, they still have to contact individual field offices and
    posts to get the number of various employees and manually
    incorporate them into the database at headquarters. Also, as part
    of the U.N. reform initiatives, the  Secretary-General set a goal
    of reducing 1,000 posts paid for under the regular budget.  Based
    on a comparison of the number of posts authorized in the 1996-97
    and 1998-99 biennium budgets, 954 posts have been eliminated.  The
    number of posts has been reduced  from 10,012 to 9,058.  According
    to Secretariat officials, no staff were let go as a result of the
    reduction.  As staff retired or voluntarily left the organization,
    their posts became vacant, and many of these posts were
    eliminated.  As you requested, we provide additional information
    in appendix III about the number of staff hired by the U.N.
    system. Mr. Chairman and Members of the Committee, this completes
    my prepared statement.  I will be happy to respond to any
    questions you may have. Contact and        For future contacts
    regarding this testimony, please contact Harold J. Acknowledgments
    Johnson at (202) 512-4130.  Individuals making key contributions
    to this testimony included Tet Miyabara, Richard Boudreau, Pat
    Dickriede, Mike Rohrback, Mark Speight, Richard Seldin, and Rona
    Mendelsohn. 30Report of the Office of Internal Oversight Services
    on the Increase in Costs of the Integrated Management Information
    System Development Contract: Note by the Secretary-General,
    A/53/829 (New York, N.Y.: United Nations, Feb. 16, 1999). Page 20
    GAO/T-NSIAD-99-196 Page 21    GAO/T-NSIAD-99-196 Appendix I
    Members of the U.N. Senior Management Group
    Appendix I Secretary-General Deputy Secretary-General Under
    Secretary-General for Humanitarian Affairs Under Secretary-General
    for Economic and Social Affairs Under Secretary-General for
    Political Affairs Administrator, U.N. Development Program Under
    Secretary-General for Disarmament Affairs Under Secretary-General
    for Administration and Management Under Secretary-General for
    Internal Oversight Under Secretary-General for Legal Affairs Under
    Secretary-General for General Assembly Affairs and Conference
    Services Under Secretary-General for Peacekeeping Opertions Chef
    de Cabinet, Executive Office of the Secretary-General Under
    Secretary-General, Executive Director for the U.N. Fund for
    Population Activities Under Secrertary-General, Special
    Representative of the Secretary-General for Children in  Armed
    Conflict Under Secretary-General and Director General of the U.N.
    Office in Geneva High Commissioner for Refugees High Commissioner
    for Human Rights Secretary-General of the U.N. Conference on Trade
    and Development Under Secretary-General and Director General of
    the U.N. Office in Vienna Under Secretary-General and Director
    General of the U.N. Office in Nairobi and the Executive Director
    of the U.N. Environment Program Executive Director, World Food
    Program Page 22
    GAO/T-NSIAD-99-196 Appendix II Organization of the United Nations
    Appendix I I As of May
    Secretary- 1996
    General Executive Office
    Internal Oversight Legal      Political      Peacekeeping
    Humanitarian    Development             Econ/Soc
    Policy             Public           Management Affairs     Affairs
    Operations         Affairs                Support
    Information           Coordination   Information Geneva    Vienna
    Nairobi         Commissioner           Conference
    Evironment      Habitat       Drug       Commissioner
    Palestine Office        Office             Office        Human
    Rights          Trade & Development       Program
    Control     Refugees         Relief & works Regional
    Commissions Africa      Latin America           Europe
    Asia/Pacific     Western Asia Secretary- General Support As of
    June
    Deputy S.G.
    services 1999
    Legal Affairs Management General Assembly Affairs Public
    Information Senior Management Group
    Internal Oversight Executive Committees Peace and
    Humanitarian
    Economic and                                         Development
    Security                                           Affairs
    Social                                               Operations
    Departments                                        Departments
    Departments                                          Progams and
    Funds Political Affairs
    Humanitarian Affairs
    Economic & Social Affairs                            Development
    Program Peacekeeping
    (Emergency Coordinator)                                Regional
    Commissions                                    W orld Food Program
    Disarmament Affairs                                Political
    Affairs                                            Europe
    Children's Fund Humanitarian Affairs
    Peacekeeping                                                 Latin
    America/Caribbean                              Fund Population
    Activities (Emer. Relief Coordinator)
    Disarmament Affairs
    Africa                                               Drug Control
    Program Office Legal Affairs                               Office
    Legal Affairs                                         Asia and the
    Pacific                                 Human Settlements Office
    at Geneva                                   Office at Geneva
    W estern Asia                                        Fund for W
    omen Children in Arm ed Conflict                        Children
    in Arm ed Conflict                               Programs and
    Funds                                      Progam on HIV/AIDS
    Programs and Funds                                 Programs and
    Funds                                              Conference
    Trade & Dev.                              Conterence Trade & Dev.
    Development Program                                Development
    Program                                          Environment
    Fund Agricultural Dev. High Commissioner
    High Commissioner
    Centre Human Settlements                          High
    Commissioner Refugees
    Refugees                                                     U.N.
    University                                      Refugees Human
    Rights                                       Human Rights
    High Commissioner                                      Human
    Rights Refugees Human Rights Source:  United Nations documents
    Page 23
    GAO/T-NSIAD-99-196 Appendix III Staff of the United Nations
    System, as of December 31,1998
    Append IIix I Table III.1 provides a snapshot of U.N. staff with
    an appointment or contract of 1 year or more who worked for the
    U.N. Secretariat, the funds and programs, and the Specialized
    Agencies-commonly referred to as the U.N. system-as of December
    31, 1998.   As of December 31, 1998, staff financed from the U.N.
    Secretariat's regular budget numbered 7,738 or 15 percent  of
    system-wide total U.N.  staff of  51,832. These numbers reflect
    the actual total of staff on-board, including all U.N. employees
    with a contract of 1 year or longer.  This total number differs
    from the number of authorized posts, which may be vacant. Table
    III.1:  U.N. Staff, as of December 31, 1998 Regular
    Extrabudgetary Budget                  Funds
    Total U.N. Secretariat Secretariat 7,738
    6,385                 14,123 Peacekeeping Missions (Support
    account)                                         0
    319                    319 Secretariat Total
    7,738                  6,704                 14,442 U.N.
    Development Program
    3,631                  1,325                  4,956 U.N. Fund for
    Population Activiites                                          816
    74                    890 U.N. High Commissioner for Refugees
    218                   3,827                  4,045 U.N. Children's
    Fund                                                        1,811
    5,193                  7,004 U.N. Relief and Works Agency  for
    Palestine Refugees in the                   97
    12                    109 Near East U.N. Training Institute
    0                    16                     16 U.N. Office for
    Project Services                                                0
    1032                   1032 U.N. Staff College
    0                    22                     22 U.N. University
    2                   113                    115 International Court
    of Justice                                                31
    0                    31 International Civil Service Commission
    0                    38                     38 International Trade
    Commission                                                  0
    186                    186 Joint U.N. Program on HIV/AIDS
    151                       0                   151 World Food
    Program
    0                  1,038                  1,038 Total for U.N.
    Subsidiary Bodies
    6,759                 12,876                 19,633 Food and
    Agricultural Organization
    2,768                  1,322                  4,090 International
    Civil Aviation Organization                                    639
    74                    713 International Fund for Agricultural
    Development                              272
    32                    304 International Labor Organization
    1,560                   228                   1,788 International
    Maritime Organization                                          252
    22                    274 Page 24
    GAO/T-NSIAD-99-196 Appendix III Staff of the United Nations
    System, as of December 31,1998 Regular     Extrabudgetary Budget
    Funds                  Total International Telecommunications
    710               27                   737 Union U.N. Educational,
    Scientific, and Cultural
    2,049              256                  2,305 Organization U.N.
    Industrial Development Organization
    610                0                   610 Universal Postal Union
    151               22                   173 World Health
    Organization
    2,437             1,178                 3,615 World Intellectual
    Property Organization
    683                0                   683 World Meteorological
    Organization
    204               45                   249 International Atomic
    energy Agency    (IAEA)
    1,674              542                  2,216 Total for U.N.
    Specialized Agencies
    14,009             3,748                17,757 and the IAEA Grand
    Total U.N. System
    28,504            23,328                51,832 Source:  United
    Nations. (711417)                   Letter                Page 25
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