1990-1991 biennium totaled $2,167,974,500, an increase of $33,902,400 from the revised level approved in 1990. The bulk of the increase in expenditures related to revisions of staff assessment, inflation and exchange rates. The resolution on the final estimates for 1990-1991 included a provision permitting an additional increase in expenditures to the level proposed by the Secretary General with prior concurrence of the Advisory Committee.

With regard to the 1992-1993 biennium, resolution 46/186, adopted without a vote, approved an initial expenditure total of $2,389,234,900. This amount, while $221 million higher than the final expenditure level for 1990–1991, reflected zero real growth. Projected inflationary cost increases and the continued decline of the U.S. dollar on foreign currency markets were responsible for the largest increases in the 1992-1993 budget level. Other increases in the UN budget included primarily nonrecurrent costs for peacekeeping/peacemaking activities in Afghanistan, along the Iran-Iraq border and in Central America. The 19921993 budget established a contingency fund of $19 million to accommodate new programs and activities approved during the 1992-1993 biennium.

Resolutions approved by the 46th UN General Assembly resulted in budget add-ons totaling less than $3 million. Excluding the impact of cost increases for unfavorable developments in exchange rates and inflation and the nonrecurrent peacekeeping/peacemaking costs, the ceiling level established for the 1992-1993 biennium at the 45th General Assembly in 1990 was maintained. General Assembly resolution 41/213, which formed the basis for the new UN budget reform procedure, did not require upward adjustments for inflation, currency or salary/ benefit increases to be financed within the initial level approved in the budget outline. Accordingly, the integrity of the new budgetary procedure was maintained at the 46th General Assembly.

General Assembly resolution 46/185, also approved without a vote, included a number of measures aimed at further streamlining and strengthening the organization. To a large extent this resolution incorporated many of the ideas advanced in the October 23 U.S. statement to the Fifth Committee on the 1992-1993 program budget. This resolution requested the Secretary General to review staffing requirements, particularly at the most senior levels, and to present revised estimates to the next session of the General Assembly. It reflected views expressed by the United States and other delegations that staffing levels could be

reduced, notably at the Under Secretary General and Assistant Secretary General levels.

Resolution 46/185 also requested the Secretary General consider possible consolidation of administrative functions in the Secretariat and present proposals for streamlining the organization at the next session. In view of rapid changes taking place in the world, it indicated modifications of the UN's existing programs were needed. The resolution called upon the Secretary General to respond to these changes by implementing measures "to improve the cost effectiveness and efficiency of the organization, thereby enhancing its capacity and flexibility to respond effectively to needs and mandates."

Both resolutions relating to the 1992-1993 budget were adopted by the Fifth Committee on December 19 and the plenary on December 20. In the Fifth Committee, the U.S Representative noted that the adoption of the 1992-1993 budget by consensus represented another important step in rebuilding the confidence of all member states in the organization. He noted the budget resolution reflected significant progress toward further reform in the Secretariat and provided the new Secretary General "with a basis for further restructuring and enhancement of programs and activities."

Audit Reports

In eight meetings between October 4 and December 3, the Fifth Committee considered the financial reports and audited financial statements for the year ending December 31, 1990, of the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), UN Institute for Training and Research (UNITAR) and voluntary funds administered by the UN High Commissioner for Refugees (UNHCR), and interim reports of the Board of Auditors on the UN Development Program (UNDP), UN Population Fund (UNFPA) and International Trade Center (ITC) for the first year of the 1990–1991 biennium.

The Committee also considered the reports and audit opinions of the Board of Auditors, the summary of principal findings, conclusions and recommendations for remedial action of the Board of Auditors, and the report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ).

On October 4 the chairman of the Board of Auditors introduced the Board reports and summarized its major findings. With respect to the interim reports for UNDP and UNFPA, he indicated these were prepared in response to numerous requests

for information on management issues and to concerns that their change to biennial financial statements would delay audit findings of importance to decision making.

On October 11 the U.S. Representative delivered a comprehensive statement in the Fifth Committee commending the Board of Auditors for its excellent work, thanking the ACABQ for its useful input and welcoming the issuance, for the first time, of interim reports on UNDP, UNFPA and ITC. He also expressed regret over the lack of effective measures to facilitate reporting by staff members on a confidential basis of any inappropriate use of UN program or organization resources; strengthen inventory controls on nonexpendable property; control the payment of all allowances and benefits to staff members; investigate the possibility of abuse of the tax reimbursement system; and control project and implementation costs.

In particular, he expressed concern over the deteriorating financial situation of UNITAR and its continuing need for regular advances from the UN regular budget; mismanagement of funds by UNHCR; the failure of implementing partners to provide audited financial statements in time for the audit and issuance of the audit opinion on the financial statements of UNDP and UNFPA; and the lack of controls over the financial resources of UNDP's Office of Project Services.

The draft resolution, considered by the Fifth Committee on November 21, contained virtually all of the proposals put forth by the U.S. Delegation. Key elements of the draft resolution:

Requests the UNDP Administrator to take appropriate measures to improve budget management and ensure timely completion of projects executed by the Office for Project Services;

Requests the Secretary General submit to the 47th General Assembly a report concerning the way in which year-end obligations relating to expenditures on equipment and on multiyear obligations should be dealt with; and

Urges the Secretary General and executive heads of the UN organizations and programs to submit detailed progress reports on steps taken to implement previous recommendations of the Board of Auditors and the related recommendations of the Advisory Committee; to report on the implementation of effective measures to facilitate reporting by staff members of any inappropriate use of the resources of a UN organization or program; to implement stringent inventory controls on nonexpendable property; and to institute without delay more effective

control on the payment of all allowances and benefits to staff members.

On December 3, the Fifth Committee adopted the draft resolution by consensus, and on December 20 the General Assembly formally adopted it as resolution 46/183, "Financial reports and audited financial statements, and reports of the Board of Auditors," without a vote.

The Fifth Committee also endorsed recommendations of the Panel of External Auditors on its interim study to develop common accounting standards. This study was prepared by the Panel in response to resolution 45/235. If no agreement were to be reached in the Consultative Committee on Administrative Questions (CCAQ), a subsidiary organ of the Administrative Committee on Coordination (ACC), on harmonizing accounting standards, a consultant would be appointed to propose a set of standards for common application among the UN, its specialized agencies and the IAEA.

Financing Peacekeeping Operations

The 46th General Assembly adopted, by consensus, resolutions for financing the following UN peacekeeping activities: UN Disengagement Observer Force (UNDOF), UN Interim Force in Lebanon (UNIFIL), UN Angola Verification Mission (UNAVEM), UN Observer Group in Central America (ONUCA), UN Iraq-Kuwait Observation Mission (UNIKOM) and the UN Advance Mission in Cambodia (UNAMIC). Consideration of the financing of the UN Mission for the Referendum in Western Sahara (MINURSO) was deferred to a resumed session of the 46th General Assembly in 1992.

Resolution 46/193 appropriated $20,679,000 (gross) for the operation of UNDOF for the period June 1-November 30, and $21,384,000 (gross) for the period December 1, 1991, to May 31, 1992. The resolution authorized the Secretary General to enter into commitments at a rate not to exceed $3,564,000 per month for the operation of UNDOF for the period June 1-November 30, 1992. The resolution also included two provisions for crediting income and budget surpluses against member assessments. Under the first provision, member states would be credited their pro rata share of estimated income of $7,500 (other than staff assessment income) covering assessments for the period December 1, 1991, to May 31, 1992. Under the second provision, the UNDOF budget surplus of $6,790,883, covering the period December 1, 1989, to November 30, 1990, would be credited

against member assessments in respect of such mandate periods as may be approved by the Security Council subsequent to May 31, 1992.

Resolution 46/194 appropriated $153,468,000 (gross) for the operation of UNIFIL for the period February 1, 1991, to January 31, 1992. Also, the resolution authorized the Secretary General to enter into commitments for the operation of UNIFIL at the rate of $13,337,000 per month, beginning February 1, 1992, subject to Security Council renewal of the UNIFIL mandate and concurrence by the ACABQ for the actual level of commitments for each mandate period approved subsequent to January 31, 1992. The resolution suspended UN financial regulations 5.2 (b), 5.2 (d), 4.3 and 4.4 with respect to $8,235,545 which otherwise would have to be surrendered.

Resolution 46/195 appropriated $42,876,720 (gross) for the operation of UNAVEM for the period January 1 to October 31, 1992. For the same period, the resolution authorized the Secretary General to enter into commitments of up to $10,719,180 for the operation of UNAVEM with the prior concurrence of the ACABQ. The resolution took note of Security Council resolution 691 which entrusted a new mandate for UNAVEM and established the force for a period of 17 months.

Resolution 46/196 appropriated $14,400,400 (gross) for the operation of ONUCA for the period May 7 to November 7, 1991, and $12,408,700 (gross) for the period November 7, 1991, to April 30, 1992. It authorized the Secretary General to enter into commitments at a rate not to exceed $2,071,000 (gross) per month for the period May 1, 1992, to April 30, 1993, subject to Security Council renewal of the ONUCA mandate beyond the period authorized under its resolution 719. The resolution also credited member assessments for the period May 7 to November 7, their respective shares of an unencumbered balance of $5,400,400 (gross) which was accrued for the period November 7, 1990, to May 7, 1991.

Resolution 46/197 appropriated $33,600,000 (gross) for the operation of UNIKOM for the period October 9, 1991, to April 8, 1992. The resolution also authorized the Secretary General to enter into commitment for UNIKOM at a rate not to exceed $5.6 million per month, subject to concurrence by the ACABQ, for the period April 9-October 8, 1992.

Resolution 46/198 appropriated $14,319,200 (gross) for the operation of UNAMIC for the period November 1, 1991, to April 30, 1992. The appropriation included the $6 million in pre-imple