The former Division of Financial and Supply Management was renamed the Division of Financial and Administrative Management (DFAM),, following the transfer of the Supply Management Service, with the exception of the General Services Section, to the Division of Operational Services in November 2006.

DFAM ensures that UNHCR makes optimal use of the financial and material resources at its disposal, and is responsible for maintaining and improving the financial and management accounting controls of the organization. In 2006, DFAM's main objectives included improving resource management systems, preparations for a biennial programme cycle, and the further strengthening of the analytical and normative capacities of the Division. The principal activities and achievements of the different sections of DFAM in 2006 are outlined below.

In 2006, the Officer of the Controller was involved in the unprecedented measures required to reduce UNHCR's global budget and monitored expenditures so that they did not exceed the Office's available resources. As a result of rigorous and cautious financial management, a higher level of cost-consciousness was engendered throughout the organization and a markedly more favourable 2006 end-of-year financial situation was achieved compared with 2005. DFAM helped to identify the causes of UNHCR's recurring financial difficulties, which pointed to the need for longer term structural reform. These included the growing gap between budgets and funding; the steadily increasing and inflexible nature of staff costs, particularly at Headquarters; the declining share of resources spent through implementing partners; the depletion of reserves, and the impact of volatile foreign exchange movements. Objective cost analyses can contribute to significant policy changes and reform. DFAM will therefore continue to strengthen its capacity to undertake global and regional cost analyses and trend diagnoses to provide timely and professional policy advice and ensure UNHCR's continuing financial health.

The Financial Resources Services (FRS) comprises the Finance, Budget and Treasury Sections. The Service's main responsibilities include global financial planning, monitoring and control, and reporting on the use of resources. This includes the central management of resource allocation, the provision of budgetary and statutory financial information for internal and external bodies, the preparation of UNHCR's financial statements, as well as the provision of analysis and advice on budgetary and financial issues. The Head of Service also supervises a change management and business analysis unit that provides process re-engineering expertise and supports the further specification and optimization of all financial aspects of the Management Systems Renewal Project (MSRP).

The General Services Section (GSS), which is under the Office of the Controller, was responsible for the management of a diverse range of services including the rental, maintenance and operational management of headquarters buildings and facilities, and the staff travel unit. GSS is also responsible for physical security at Headquarters and serves as the link with UNOG security services. In 2006, the main achievements included the reform of travel processes and procedures that resulted in staff savings and significant cost efficiencies. Work began on the installation of a new closed-circuit television system and a public address and emergency evacuation system that will link all three UNHCR Headquarters' office locations.

Source: UNHCR Global Report 2006. For more details, see chapter Headquarters (pdf).