ABBREVIATIONS AND ACRONYMS

 

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INTRODUCTION

I.SCOPE AND STRUCTURE

1.This Overview of UNHCR Activities (1997-1999) gives a consolidated picture of UNHCR operations, with particular focus on administrative and budgetary issues. The first chapter, entitled Perspective and Issues, provides the context within which the material in the remaining chapters should be seen. Chapter II looks at global programme requirements, post levels needed to meet these requirements, and the related Programme Delivery and Administrative Support costs. The Overview then breaks down this information, in turn, by the various UNHCR operations, namely Central, East and West Africa (chapter III), the Great Lakes Region (chapter IV), Southern Africa (chapter V), Asia and the Pacific (chapter VI), Europe (chapter VII), the Former Yugoslavia (chapter VIII), the Americas (chapter IX), Central Asia, South West Asia, North Africa and the Middle East (CASWANAME)(chapter X), as well as the category of activities called “Other Programmes” (chapter XI), and for Headquarters (chapter XII). The structure of each of these chapters (III - XII), as well as their related tables, is the same. A supplement to the Overview (A/AC.96/900/Add.1) entitled, Expenditure, Budgets and Post Requirements (Countries Areas, Other Programmes and Headquarters) provides more detailed information on UNHCR’s activities, especially by country/area.

2.More detailed information on programmes in each of the UNHCR operational areas may be found in the documentation presented to the Standing Committee in the course of 1998 for the various regional updates:

-Central Asia, South West Asia, North Africa and the Middle East (EC/48/SC/CRP.3 and Add.1);

-Europe (EC/48/SC/CRP.9 and Corr.1);

-The Former Yugoslavia (EC/48/SC/CRP.10);

-Southern Africa (EC/48/SC/CRP.23);

-Central, East and West Africa (EC/48/SC/CRP.24);

-Great Lakes Region (EC/48/SC/CRP.25 and Corr.1);

-The Americas (EC/48/SC/CRP.36);

-Asia and the Pacific (EC/48/SC/CRP.37).

3.Another document which gives further summary presentations of the work of UNHCR and the issues confronting the organization is the Report of the United Nations High Commissioner for Refugees to the 1998 session of ECOSOC (E/1998/7).

II.DEFINITION OF TERMS

4.Throughout this Overview document, there are a number of recurring concepts related to UNHCR’s mandate, statutory activities, programmes, related costs and posts. Background information on, and/or brief definitions of, these concepts are given below.

A.Mandate of UNHCR

5.The Office of the United Nations High Commissioner for Refugees was established on 1 January 1951 (General Assembly Resolution 319 A (IV)). The Statute of the Office sets out the mandate of UNHCR, namely to provide international protection to refugees and to seek permanent solutions to their problems (General Assembly Resolution 428 (V), art.1). Closely linked to the discharge of this mandate to ensure international protection of refugees is the provision of humanitarian assistance to people of concern to the United Nations High Commissioner for Refugees. Assistance is but one aspect of international protection and is a means of facilitating it. As regards UNHCR’s assistance activities, the basic provisions of the Statute have been expanded by General Assembly resolution 832 (IX).

6.In addition, the General Assembly has also called upon the High Commissioner to provide assistance to returnees, as well as to monitor their safety on return (General Assembly Resolution 40/118). On the basis of specific requests from the Secretary-General or the competent principal organs of the United Nations, and with the consent of the States concerned, UNHCR provides assistance and protection to internally displaced persons (General Assembly Resolution 48/116). Furthermore, by supporting national and international initiatives to ameliorate conditions in countries of origin, thereby enhancing the security of people who might feel compelled to seek refuge elsewhere, UNHCR is increasingly engaged in the effort to avert further refugee movements and other forced displacements.

7.By means of all these activities, UNHCR endeavours to promote the principles of the United Nations Charter:maintaining international peace and security; developing friendly relations among nations; achieving cooperation in solving international problems; and encouraging respect for human rights and fundamental freedoms, without distinction as to race, sex, language or religion. UNHCR’s ability to protect refugees, to find solutions to their problems and to engage in effective preventive activities is, in turn, dependent upon the willingness of States and other actors to respect and give effect to these principles.

B.Statutory Activities

8.The term “statutory activities” describes activities relating to the protection and assistance of refugees and the pursuit of durable solutions for them. The durable solutions are normally categorized as voluntary repatriation, local settlement and resettlement. Statutory activities constitute a priority for the Office of the High Commissioner.

9.Within the broad priority category of statutory activities, the General Assembly and the Executive Committee, in various resolutions and conclusions, have agreed that emphasis should be given to durable solutions, in particular voluntary repatriation, whenever possible. As regards the durable solution of voluntary repatriation, activities in the country of asylum related to actual return, the discharge of UNHCR’s protection responsibilities after return, and the basic assistance needed to consolidate that return, constitute statutory activities.

C.Programmes and Sources of Funds

10.UNHCR activities are divided between General Programmes and Special Programmes. The two broad categories of General and Special Programmes were introduced into UNHCR’s budgets in 1977. Basic to the distinction between General and Special Programmes are two elements:first, the concept of “statutory activities” and the related one of “other mandated activities”; and second, the source of funds for the two types of activities. Only statutory activities may be included under General Programmes. (This does not preclude, however, statutory activities being funded, for a range of reasons, under Special Programmes.) The activities under General Programmes (made up of the Annual Programme, the Voluntary Repatriation Fund and the Emergency Fund) are funded through contributions to the General Fund. Special Programmes are funded by a range of distinct trust funds, each operating according to its own funding dynamic. These trust funds are also governed by UNHCR’s Financial Rules. In addition, there is a United Nations Regular Budget contribution to cover the costs of some 200 administrative support posts at Headquarters. Currently, UNHCR’s total programme needs (to be addressed by all sources of funds) are estimated at $ 983.8 million (Table II.4 refers). Of this amount, it is estimated that statutory activities amount to some $ 640 million, which, for a range of reasons, are covered by some $ 430 million under the budget for General Programmes and some $ 210 million under Special Programmes.

D.Programme Delivery and Administrative Support Costs

11.In 1993, the Executive Committee agreed that UNHCR activities (and related posts, and non-staff costs) would be divided into two categories:Programme Delivery and Administrative Support. These two types of activities are defined as follows:

Programme Delivery (PD) activities (and the related posts) cover the broad spectrum of UNHCR activities -ranging from the provision of international protection, the promotion or search for durable solutions through to the provision of the different forms of material assistance.

Administrative Support (AS) activities (and the related posts) are those activities whose function it is to support the “Programme” of the office of the United Nations High Commissioner for Refugees. Support of “programme” activities, in the form of backstopping, is primarily through the provision of common services such as finance, personnel, information systems, telecommunications and general services, and through a range of other activities such as evaluation, administration, training, etc.

In response to the observations of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) in its 1996 Report on the Overview of UNHCR Activities (1995-1997) (A/AC.96/865/Add.4, para. 8), and a related decision of the Executive Committee (A/AC.96/878, para. 25 (f))), UNHCR began a review of these definitions. A paper (EC/47/SC/CRP.53) was presented to the 9^th meeting of the Standing Committee (September-October 1997) on this subject. In its 1997 Report (A/AC.96/884/Add.3), the ACABQ recommended that UNHCR take account of the work done by UNDP, UNICEF and UNFPA on the harmonization of budget structures and present the findings of its review of the classification of UNHCR expenditures, through the ACABQ, to the forty-ninth session of the Executive Committee. These findings, together with a proposal on UNHCR’s budget structure, may be found in document EC/48/SC/CRP.43.

E.UNHCR Posts

12.Within each category of posts, namely Programme Delivery and Administrative Support, UNHCR distinguishes between established and temporary posts. Given the fluid nature of UNHCR’s operations, with posts created or discontinued at short notice, post tables are presented in work-years. It is felt that this approach gives a more accurate picture of UNHCR’s post situation.

F.Related Costs

13.Staff costs cover salaries and common staff costs such as dependency allowances, education grants, medical examinations etc. Non-staff costs are presented in the various tables under five headings:travel, contractual services, operating expenses, supplies and materials and “others”. Contractual services include language training, external translation and interpretation contracts, external printing and binding, public information and production costs etc. Operating expenses refer to such things as rental and maintenance, utilities (water, electricity etc.), telephones and stationery. “Others” cover such things as acquisition of furniture and equipment, including vehicles, contributions to joint United Nations activities, grants and contributions to United Nations agencies, and major alterations to premises. Non-staff costs for both Field and Headquarters locations are allocated on a pro-rata basis between Programme Delivery or Administrative Support.

III.SUMMARY OF PRINCIPAL BUDGETARY AND OTHER MATTERS

14.The following is a summary of the principal budgetary-related matters to be found in this document

A.1997 Expenditure and Resources (see Tables II.1,3; paragraphs 144, 147, 159).

(i)Total UNHCR expenditure in 1997 amounted to $ 995.2 million (of which, GP:39 per cent; SP:59 per cent:RB:2 per cent);

(ii)Of the total 1997 expenditure, $ 107.7 million was at Headquarters (11 per cent) and $ 887.5 was in the Field (89 per cent); of the total Field expenditure, its distribution was as follows:Africa:43 per cent; Europe:25 per cent; Asia and the Pacific:6 per cent; CASWANAME:8 per cent; The Americas:3 per cent; Other Programmes:3 per cent;

(iii)Total funds available to UNHCR under all sources of funds in 1997 amounted to $ 1,133,566,600, which included the United Nations Regular Budget contribution of $ 22.1 million;

B.1998 Estimates and Resources (see Tables II.1,3; paragraphs 145, 148, 160).

(iv)Total revised estimates for 1998 (as at 31 May 1998) are $ 983.7 million (of which, GP:$ 428.9 million (44 per cent); SP:$ 532.7 (54 per cent); RB:$ 22.1 million (2 per cent));

(v)In addition to the total carry over into 1998 of $ 140.6 million, additional projected income under all sources of funds in 1998 is estimated (at 31 May 1998) at $ 783.3 million (see Table II.4);

(vi)Updated revised estimates for 1998 (as at 1 August 1998) will be presented at the time of the 13^th Meeting of the Standing Committee (September-October 1998); this update will be found in A/AC.96/900/Add.2;

C.1999 Initial Estimates and Resources (see Table II.1; paragraphs 146, 149, 161).

(vii)Initial projections for 1999 place General Programmes at $ 413 million. Only a tentative estimate of needs under Special Programmes is possible at this stage; it places these at $ 429.2 million;

D.Posts (see Table II.10; paragraphs 163-168).

(viii)At 1 July 1998, the number of UNHCR posts (both established and temporary) stood at 4769 (of which, Field:4038 (85 per cent); Headquarters:731 (15 per cent); at 1 July 1997, the number of posts was 5238;

E.Programme Delivery and Administrative Support (see Tables II.16, 17; paragraph 179).

(ix)Of the 1997 total expenditure, Programme Delivery (PD) costs amounted to $ 266.2 million and Administrative Support to $ 104 million (10.5 per cent).

IV.ISSUES OF PARTICULAR RELEVANCE

15.The following issues are highlighted as they have been the subject of particular attention by the Executive/Standing Committee, the ACABQ or the Board of Auditors:

(a)Global Picture of Expenditure and Resources (see Table 11.3) (Tables are found in the chapter corresponding to the Roman numeral);

(b)Resource Constraints (paragraphs 47-52; 140-146; Table II.2);

(c)Post Levels, Reductions and Reclassifications (paragraphs 53-54; 163-168; 427-429; 468-470; Tables II.10, 15);

(d)Budget Structure (paragraphs 72-74 and document EC/48/SC/CRP.43;

(e)IMIS (paragraphs 75-94);

(f)Information Technology Developments (paragraphs 95-119; 421-426; 531-532);

(g)Change Management Process (Project Delphi) (paragraphs 43-46; 387420; 539-542);

(h)Training (paragraphs 66-71; 430-464; 562-565);

(i)Staff Security (paragraphs 55-57; 459-462; 567-570);

(j)Oversight (paragraphs 120-126; 474-476; 526-529).

V.DECISION ON ADMINISTRATIVE AND FINANCIAL MATTERS SOME DRAFT ELEMENTS

16.The Executive Committee,

(a)Confirms that the activities proposed under General and Special Programmes as set out in document A/AC.96/900 have been found, on review, to be consistent with the Statute of the Office of the High Commissioner (General Assembly Resolution 428 (V)), the High Commissioner’s “Good Offices” functions as recognized, promoted or requested by the General Assembly, the Security Council, or the Secretary-General, and the relevant provisions of the Financial Rules for Voluntary Funds Administered by the High Commissioner for Refugees (A/AC.96/503/Rev.6);

(b)Requests the High Commissioner, within the resources available, to respond flexibly and efficiently to the needs currently indicated under 1999 General and Special Programmes which are tentatively estimated at [$ 842.2 million], and to any other new needs that might arise, bearing in mind the Statute of the Office and the priority to be accorded to statutory activities, and the relevant provisions of the Financial Rules for Voluntary Funds;

(c)Approves the revised 1998 General Programmes budget amounting to $ 428,973,500 as detailed in document A/AC.96/900 (Table II.5, column 3);

(d)Approves likewise the country/area programmes, Other Programmes and the Headquarters budgets under the 1999 General Programmes amounting to $ 334,600,000, as well as a Programme Reserve of $ 33,400,000 (representing 10 per cent of programmed activities), and $ 25,000,000 for the Emergency Fund, and $ 20,000,000 for the Voluntary Repatriation Fund, all of which are detailed in document A/AC.96/900 (Table II.5, column 4), and which constitute a 1999 total General Programmes budget of $ 413,000,000; and authorizes the High Commissioner within this approved level, to effect adjustments in projects, country/area programmes, Other Programmes and the Headquarters budgets, as may be required by changes affecting the refugee/returnee programmes for which they were planned;

(e)Notes the Report of the Board of Auditors to the General Assembly on the Accounts of the Voluntary Funds administered by the United Nations High Commissioner for Refugees for the -year ended 31 December 1997 (A/AC.96/901), the Report of the ACABQ on UNHCR Activities financed from Voluntary Funds:Report for 1997-1998 and proposed budget for 1999 (A/AC.96/900/Add.3), the Report of the High Commissioner on the work of the inspection and Evaluation Activities (A/AC.96/902), and requests to be kept regularly informed on the measures taken to address the recommendations and the observations raised in these various oversight documents;

(f)Urges Member States, in the light of the extensive needs to be addressed by the Office of the High Commissioner, to respond generously and in a spirit of solidarity, and in a timely manner, to her appeals for resources.

CHAPTER I:PERSPECTIVE AND OTHER ISSUES

I.INTRODUCTION

17.This chapter briefly reviews the challenges currently facing the international community and UNHCR in relation to forced human displacements, especially refugee outflows, and UNHCR’s response. In addition, this chapter considers a number of issues related to the work of UNHCR, including some which have been the focus of attention of the Executive Committee, the Board of External Auditors and the Advisory Committee on Administrative and Budgetary Questions (ACABQ) over the last year.

II.UNHCR MISSION STATEMENT

18.At a retreat of the Senior Management Committee of UNHCR on 23-24 January 1998, it was agreed that a Mission Statement should be prepared. While UNHCR has enjoyed exceptional support from States in recent years, it has also faced exceptional challenges, particularly in meeting its protection responsibilities. The magnitude of these challenges, as well as the new dimension of UNHCR’s activities, especially in conflict situations, necessitated a clear reiteration of the Office’s prime protection and solution responsibilities and priority areas of activity. The Mission Statement was prepared with this in mind. The Mission Statement should be read in conjunction with, and as complement to, the guidelines for action contained in the global strategy paper “UNHCR Strategy Towards 2000”. This Global Strategy Paper was published on 21 September 1996; it is currently being updated.

19.The Mission Statement reads as follows:

UNHCR is mandated by the United Nations to lead and coordinate international action for the world-wide protection of refugees and the resolution of refugee problems.

UNHCR’s primary purpose is to safeguard the rights and well-being of refugees. UNHCR strives to ensure that everyone can exercise the right to seek asylum and find safe refuge in another state, and to return home voluntarily. By assisting refugees to return to their own country or to settle in another country, UNHCR also seeks lasting solutions to their plight.

UNHCR’s efforts are mandated by the organization’s Statute, and guided by the 1951 United Nations Convention Relating to the Status of Refugees and its 1967 Protocol. International refugee law provides an essential framework of principles for UNHCR’s humanitarian activities.

UNHCR’s Executive Committee and the UN General Assembly have also authorized the organization’s involvement with other groups. These include people who are stateless or whose nationality is disputed and, in certain circumstances, internally displaced persons.

UNHCR seeks to reduce situations of forced displacement by encouraging states and other institutions to create conditions which are conducive to the protection of human rights and the peaceful -resolution of disputes. In pursuit of the same objective, UNHCR actively seeks to consolidate the reintegration of returning refugees in their country of origin, thereby averting the recurrence of refugee-producing situations.

UNHCR offers protection and assistance to refugees and others in an impartial manner, on the basis of their need and irrespective of their race, religion, political opinion or gender. In all of its activities, UNHCR pays particular attention to the needs of children and seeks to promote the equal rights of women and girls.

In its efforts to protect refugees and to promote solutions to their problems, UNHCR works in partnership with governments, regional organizations, international and non-governmental organizations. UNHCR is committed to the principle of participation by consulting refugees on decisions that affect their lives.

By virtue of its activities on behalf of refugees and displaced people, UNHCR also promotes the purposes and principles of the United Nations Charter; maintaining international peace and security; developing friendly relations among nations; and encouraging respect for human rights and fundamental freedoms.

III.MAJOR CHALLENGES

20.The main areas of protection concern, especially as they relate to the violation of human rights, were set out in the 1998 Note on International Protection (EC/48/SC/CRP. 27) presented to the 12^th meeting of the Standing Committee. As the Note points out:“In the last analysis, the entire refugee experience, from forcible displacement, through the search for asylum, to the securing of a durable solution, is an important indication of the respect accorded to basic human rights principles world-wide. It provides an illustration of the continuing gap between the theory and the practice, and constitutes a measure of what is yet to be achieved” (idem. paragraph 30).

21.In 1997, the overall popuiation of concern to UNHCR fell to some 22.4 million (see Annexes I.A and I. B). At the end of 1996, it numbered 22.7 million. Likewise, the world’s refugee population decreased in 1997 to 12 million (compared to 13.2 million at the end of 1996). Of the total population of concern to UNHCR, 3.1 million were returnees in the early stages of their reintegration; a further 5.9 million of concern were mostly internally displaced persons.

22.During 1997, spontaneous arrivals of refugees, excluding asyium seekers, numbered some 615,000. The largest inflows were to the United Republic of Tanzania (188, 700), Thailand (104, 600) Guinea (63, 700) and the Democratic Republic of the Congo (59,100).

23.The situation of refugees and returnees in the Great Lakes Region of Africa remains of concern to the Office. The High Commissioner visited the Region in February 1998, travelling to nine countries in three weeks. The mission provided an opportunity for Governments and the High Commissioner to hold discussions on a broad range of refugee and humanitarian-related issues. On several occasions, the High Commissioner expressed her concern about the general erosion of respect for the humanitarian principles relating to the protection of refugees and the physical danger to which UNHCR, NGOs (international and local), and other agency staff were exposed. The visit of the High Commissioner to the Region enhanced confidence and dialogue between Governments and UNHCR. Following on the High Commissioner’s mission, a regional consultative meeting at the ministerial level, co-chaired by the Secretary-General of the OAU and the High Commissioner, took place in Kampala, Uganda, on 8-9 May 1998 to discuss practical issues related to refugee protection and the concerns of States, especially in the areas of security and rehabilitation. Follow-up efforts focus on three areas:first, how to ensure more effective protection of refugees, in particular the implementation of the principles contained in the OAU Convention; second, security mechanisms to ensure the civilian and neutral character of camps; and third, how to bridge the “gap” between relief activities and reconstruction, especially in post-conflict situations.

24.Currently, UNHCR and its partners are having to address three other significant humanitarian challenges in Africa. The ongoing hostilities in parts of Sierra Leone have led to large displacements of refugees. Since February 1998, some 250,000 new refugees have crossed into Guinea and Liberia. At the end of June, the particular concern was to obtain access to some 150,000 Sierra Leonean refugees, cut off from humanitarian aid, in refugee camps south-east of Gueckedou (Guinea) along the Sierra Leonean border. The second challenge follows developments in Guinea Bissau at the beginning of June 1998. As a result, there are now some 250,000 internally displaced people within the country. Although the displacement has been mainly internal, since fighting began refugees have also crossed into Senegal and Guinea. Another area of concern is Angola. In June 1998, UNHCR suspended its voluntary repatriation programme. In addition, there has recently been a new outflow of some 30,000 Angolan refugees into the Democratic Republic of the Congo.

25.A further crisis confronting the Office is that in Kosovo. It is estimated that at 1 July, 1998, more than 76,000 people had been uprooted. Of these, some 53,000 were displaced within the Kosovo province; another 10,000 had crossed the border into Albania and some 13,400 into Montenegro. Arrivals have also been reported elsewhere in the Federal Republic of Yugoslavia, Croatia and Boznia and Herzegovina, as well as in Western European countries. UNHCR has strengthened its presence on the ground and, together with its UN sister agencies and NGO partners, as well as the ICRC, is providing relief.

26.During 1997, 879,000 refugees repatriated. The asylum countries from which these refugees repatriated, in some instances under less than desirable circumstances, included the Democratic Republic of the Congo (242,100). Ethiopia (50,000), the United Republic of Tanzania (110,800) Germany (95,900) Uganda (86,200) and Pakistan (84,500).

27.The search for durable solutions in the former Yugoslavia remains a major challenge for the Office, with still 1.8 million people displaced more than two years after the signing of the peace agreement. Meeting this challenge is further complicated by the funding situation for this programme. In response to a request made at the Peace Implementation Council (PIC) in Bonn in December 1997, UNHCR has developed, in consultation with the authorities concerned and the relevant international organizations, a regional strategy for the return of refugees and displaced persons. The Strategy received broad support at the PIC meeting in Luxembourg on 9 June 1998 and was endorsed at the Humanitarian Issues Working Group meeting convened by the High Commissioner in Geneva on 26 June 1998. The strategy highlights the various political obstacles in the path of returns:threats to security; legal and administrative impediments; the use of media to incite violence against, or intimidate potential returnees; the denial both of access to public services, and the exercise of fundamental human rights. Sustained and coordinated action by the international community will be required to overcome these obstacles.

28.At the last plenary session of the Executive Committee (October 1997), the theme of the annual debate was “Repatriation Challenges” (document A/AC.96/887 refers). Interventions in the debate underlined the fact that humanitarian principles were fundamental to repatriation. The importance of respecting the voluntary nature of refugee repatriation was emphasized. There was agreement that forcible return of refugees is unacceptable; moreover, it is not conducive to peace and security.

29.It was stressed by a number of delegates that the return of refugees to their home countries is not a mere logistics exercise. Repatriation conducted on the wrong basis and under the wrong conditions can, it was pointed out, negatively affect reconciliation and increase instability. Many speakers stressed the need to ensure safety and dignity in the process of repatriation and reintegration. Repatriation should facilitate peace and reconciliation. In achieving stable reintegration, however, it was agreed that there can be no “quick fix” solutions.

30.In countries of origin, it was pointed out that conditions conducive to return and reintegration need to be created through system-wide efforts, which include institution building, the strengthening of civil society, the promotion of equity, the elimination of land mines and more effective control of small arms. It was also suggested that development aid policies should be better targeted both to prevention and the facilitation of return and reconciliation.

31.There was widespread support for UNHCR’s role in repatriation and initial reintegration. To achieve sustainable reintegration, however, a coherent, system-wide response is required. In this regard, UNHCR’s efforts to cement relationships with a broad range of partners, including development agencies, human rights organizations, and financial institutions were widely welcomed. Efforts to systematize relations with other organizations through Memoranda of Understanding (MOUs) were supported. It was suggested, however, that further synergy needs to be promoted at both the operational level and at the level of governing bodies. Increased collaboration with regional organizations was also welcomed, as were regional consultations on solutions to refugee problems and the development of regional instruments and agreements, where appropriate.

32.UNHCR’s role in the monitoring of returnees, in cooperation with other United Nations agencies, regional bodies and other partners, was extensively supported. The emphasis placed by UNHCR on promoting reconciliation was also welcomed by many delegations. The role of women in reconciliation was also highlighted, and UNHCR’s efforts to promote this role in both Bosnia and Herzegovina, and Rwanda were appreciated.

33.The extent of UNHCR’s involvement in reintegration was the subject of some debate. Many delegations emphasized the need for early involvement of agencies with a comparative advantage in longer term development. While some speakers urged UNHCR to take the lead in spearheading United Nations activities to create favourable conditions in countries of origin, others cautioned UNHCR to avoid mission creep. To address some of these issues, a series of Informal Consultations was convened by the Chairman of the Executive Committee, Ambassador B. Skogmo of Norway. Two Informal Consultations have been held to date (10 June, 9 July 1998); a third meeting is scheduled for 16 September 1998.

IV.UNITED NATIONS REFORM

34.The proposals of the Secretary-General for the reform of the United Nations were set out in the document, Renewing the United Nations:A Programme for Reform of 14 July 1997 (A/51/950). The section of this report dealing with Humanitarian Affairs (paragraphs 96-109) reflected a number of the issues raised in another report of the Secretary-General, namely the Review of the Capacity of the United Nations System for Humanitarian Assistance (E/1997/98) which drew on the findings of the inter-agency consultative process occasioned by the ECOSOC resolution 1995/56. It will be recalled that this ECOSOC resolution dealt with a range of issues:emergency response; the development of operative Memoranda of Understanding; consolidated appeals; assistance activities in countries of origin; prevention; and the coordination of humanitarian assistance. The effect of the Secretary-General’s reform initiatives on UNHCR were set out in a paper (EC/48/SC/CRP.13) presented to the 11^th meeting of the Standing Committee (April 1998).

35.UNHCR is affected both by the new management “tools” proposed and implemented by the Secretary-General in document A/51/950, and by the key sectoral measures proposed in the humanitarian arena by the same Report.

36.One major aspect of the United Nations Reform has been the creation of “tools” at the Secretary General’s disposal for managing the United Nations system. Among these initiatives, has been the formation of a Senior Management Group (SMG), at the level of heads of departments, funds and programmes, which meets on a weekly basis. The High Commissioner participates through video-conferencing. The SMG has proven to be very useful for information-sharing and should also play an important role in coordinated policy-making.

37.The Secretary-General has also created four Executive Committees. UNHCR is a member of two of the four Executive Committees set up by the Secretary-General:the Executive Committee for Humanitarian Affairs (ECHA) and the Executive Committee for Peace and Security (ECPS). The relatively frequent meetings of both allow for improved coordination of United Nations initiatives, particularly where there is an interface between political/peace-keeping and humanitarian activities. In the ECPS, for example, it is hoped that progress will be made on further defining and developing issues such as cooperation with regional organizations, post conflict peace-building, staff security, and the role of Special Representatives of the Secretary-General in situations with a humanitarian dimension. Among the changes in the current humanitarian sector (discussed below), there is also the formation of a joint Secretariat between ECHA and the Inter-Agency Steering Committee (IASC) which is under the chairmanship of the United Nations Emergency Relief Coordinator, who is also the Under Secretary-General for Humanitarian Affairs. This Secretariat should help avoid duplication between the two fora and ensure proper dialogue and information-sharing between them.

38.While UNHCR is understandably not part of the United Nations Development Group (UNDG), it maintains close contact with UNDG on relevant issues, for example rehabilitation. UNHCR is currently defining its role with respect to the United Nations Development Assistance Framework (UNDAF), which is a central feature in the reform initiatives in the area of development cooperation.

39.The Secretary-General’s reform reasserts the three core functions of the new Emergency Relief Coordinator (ERC) and Under Secretary-General (USG) for Humanitarian Affairs, as set out by General Assembly resolution 46/182. These are policy development and coordination; advocacy of humanitarian issues with political organs, notably the Security Council; and the coordination of emergency humanitarian response. The ERC reports directly to the Secretary-General and acts as his main adviser on humanitarian issues. The ERC remains in charge of the Consolidated Appeals Process (CAP), which is to be further improved, and chairs the Inter-Agency Standing Committee (IASC), which will be further strengthened.

40.Following the presentation of the Secretary-General’s Reform Report, ECHA was entrusted with setting up a Working Group which was tasked, in an advisory capacity, with presenting proposals for an effective system for coordinating humanitarian operations in the framework set out by the Secretary-General’s Reform Report. The Working Group was asked to examine how the General Assembly resolution 46/182 could best be implemented, given the experience of the preceding five years. UNHCR was a participant in this Working Group along with DHA, UNICEF, UNDP and WFP. The recommendations of the Working Group, including that of benefiting from senior level secondments from IASC members, were for the main part accepted by the new ERC who took office, effective 5 January 1998. The Office that he heads has been renamed, as of 26 January 1998, the Office for the Coordination of Humanitarian Affairs (OCHA).

41.The beginning of 1998 witnessed a new enthusiasm for the relationship between the humanitarian agencies and OCHA. There has been a marked increase in consultations, as well as more ad-hoc and formal inter-agency groups to address critical issues. Areas covered include contingency planning and the strengthening of the CAP, not just in terms of preparation, but also in terms of follow-up, and the humanitarian impact of sanctions. Matters addressed have been both of a situation-specific, and a system-wide policy nature.

42.The Secretary-General’s Reform Report raised the issue of governance for overall humanitarian issues. It recommended, as a preliminary governance mechanism, the establishment of a humanitarian affairs segment in the substantive session of ECOSOC. This segment has already been introduced. UNHCR hopes that this new segment will address cross-cutting and action oriented issues and themes, providing a forum for dialogue with, and guidance from, States.

V.CHANGE MANAGEMENT PROCESS (PROJECT DELPHI)

43.At the forty-sixth session of the Executive Committee in October 1995, the High Commissioner made a commitment to review the way in which UNHCR worked, so as to improve the accountability and performance of the Office. This process of institutional reform was named Project Delphi and was formally launched on 4 December 1995. The resulting 1996 Plan of Action was transformed into a detailed Implementation Plan (EC/47/SC/CRP.23, Annex 1) in early 1997 and work began on implementing some 100 changes identified in the Plan. In July 1997, the High Commissioner, in the light of the progress made under Project Delphi, decided that there was a need to achieve greater momentum in the change process, and that there was a need to focus, in the first instance, on those change initiatives which would have the greatest impact on UNHCR’s work in the Field and at Headquarters. To oversee this new phase in the change management process, she appointed Mr. J. Horekens as Director for Change, effective as of September 1997.

44.In his report (EC/48/SC/CRP.6) to the 10^th meeting of the Standing Committee (February 1998), the Director for Change reviewed progress with regard to the various actions listed in the Implementation Plan and presented a progress report (EC/48/SC/CRP.6, Annex) showing that more than half of the actions had already been implemented by the end of 1997, and many others had already achieved substantial progress. He also indicated that the remaining major actions had been grouped together into six priority areas which would be the focus for concerted efforts in the change process during 1998. These areas are as follows:

(i)Operations Management System (OMS):the System provides the means whereby the organization ensures that all aspects of its operations (the provision of international protection, assistance and the search for durable solutions) are appropriate, consistent and effective. It specifies the sequence of relevant actions at different levels and locations, and establishes responsibilities accordingly. Operations management also involves the establishment of the operational guidelines, standards and norms that assist the organization in planning and implementing its activities, reviewing implementation and making operational decisions in a consistent manner. Currently, efforts are focused on the formulation of new planning mechanisms, design of a new budget structure, the establishment of new processes, procedures, and tools, as well as accountability mechanisms. It is intended that the tools (manuals, policies, guidelines) will be disseminated in electronic format on CD-ROM and on the Intranet (see paragraphs 388-393 for budgetary implications);

(ii)Protection:establishment of a protection database which will facilitate the task of the Division of International Protection (DIP), in monitoring UNHCR’s protection activities to ensure the consistency of those activities world-wide. The focus of attention is to capture protection information from the existing monthly Situation Reports and other pertinent reports, and to make it more easily accessible on a database (see paragraphs 394-397 for budgetary implications);

(iii)Supply Chain:this project aims to integrate the purchase, transportation, storage and management of materials into a single, unified function, through which a responsive service with a customer focus will be provided. It will be linked to the OMS and the new financial systems; and it will provide a mechanism for UNHCR to track and maintain its inventories and all UNHCR-owned non-expendable property (see paragraphs 398-403 for budgetary implications);

(iv)Systems replacement:replacement of UNHCR’s corporate financial, personnel, procurement and logistics information systems and the introduction of field systems in the areas of operations planning/management, finance and personnel, and supply chain (see paragraphs 404-409 for budgetary implications);

(v)Human Resources Management:the delegation and decentralization of human resource authority and processes, the implementation of the Career Management System, and the review of the essential components of human resource management in the areas of categories of posts, recruitment, contractual arrangements, postings, promotion, rewards and sanctions, and staff reduction (see paragraphs 410-416 for budgetary implications);

(vi)Financial Services:the development of financial systems and procedures in support of the decentralization of financial functions, including related training (see paragraphs 417-420).

45.The Director for Change also indicated that initiatives commenced under Project Delphi would be mainstreamed throughout the Office’s management structure. He stressed, however, the need to ensure a complementarity of efforts throughout the office, especially as regards the six priority projects. It was the responsibility of the Director for Change to ensure such coordination, not only for existing change initiatives, but for any future change projects. In a subsequent development, the Director for Change was appointed Director of the Division of Operational Support, effective 1 April 1998. The Change Management Support and Coordination Unit (Change Group) which functioned, inter alia, as a Secretariat to the change process, has also been integrated into the Division of Operational Support (see paragraphs 539-542). The Director for Change continues to give regular reports to the Standing Committee on the Change Management Process EC/48/SC/CRP.17 of 2 April 1998; EC/48/SC/CRP.44).

46.Consistent with the approach of mainstreaming the Change Management (Project Delphi) initiatives, the budgetary allocations for the above priority projects are included under the respective Divisions. While training as a whole serves the goal of organizational change, some $ 2.9 million of the overall revised 1998 training budget of $ 5.9 million relates more specifically to Change Management, namely, training related to protection, programme management, personnel administration, finance, management, and logistics (see paragraphs 430-464).

VI.RESOURCES

47.The resource situation for 1997, 1998 and 1999 is discussed in paragraphs 140-146 of this Overview. The paragraphs below draw attention to the serious funding situation currently facing UNHCR, and the steps being taken to address it.

48.In 1997, total resources under all sources of funds (including the Regular Budget contribution of $ 22.1 million and carry-overs) amounted to $ 1,133,567,000; in 1996, the comparable amount was $ 1,382,057,000. As noted by the ACABQ in its last Report (A/AC.96/865/Add.4), UNHCR would face a serious funding crisis if the present trend continued (idem., paragraph 18), and that there was a need for UNHCR to set guidelines and priorities far more rigorously than hitherto (idem., paragraph 22) established.

49.Within UNHCR, it is the Operations Review Board (ORB) which looks at all issues of resource allocations for all Field and Headquarters budgets. The allocation of resources is obviously made in light of expected contributions. While UNHCR’s programme projections are based on needs, the level of resources that the Office projects it will receive to meet needs invariably determines what needs can be addressed. In other words, the funding situation of the Office, at times, forces UNHCR to review needs and to prioritize which ones can be met because of the funding situation. Given UNHCR’s budget structure, wherein Special Programmes operate as individual trust funds without any possibility of moving resources from one Special Programme to another, the problem is particularly acute for General Programmes.

50.In November 1997, the ORB had already begun to review the 1998 General Programmes in the light of anticipated shortfalls in expected income. These steps included reductions in activities and self-imposed limits on the use of the 1998 Programme Reserve, the Emergency Fund and the Voluntary Repatriation Fund. It soon became clear that even with these steps, UNHCR would have difficulty living within expected resources. UNHCR has made further budgetary reductions, both in programmes and activities, but particularly in administrative support costs. The ORB met in mid-April 1998 and identified further measures to bridge the gap between expected income and the proposed budgets. These focused on administrative support costs. Among these measures were the following:

-a reduction of travel costs at Headquarters and in the Field;

-a reduction in reassignment costs, through deferred rotation;

-a decrease in the use of consultancies;

-the advancement of discontinuation dates of vacant posts scheduled for discontinuation;

-possible reductions in rental costs at Headquarters, through rationalization of office space; and

-a thorough review of posts. This review looked at all posts at Headquarters and in the Field, under all sources of funds, in the professional and general service categories. (See paragraphs 53, 54 below.)

51.The funding situation for Special Programmes is also of great concern. As mentioned above, each Special Programme is, so to say, self-contained; in other words, the High Commissioner has no authority to move funds between Special Programmes. The implementation rate under a Special Programme depends on the availability of funds under that Programme. With this in mind, Directors of Operations have been directed to review posts and to pace the implementation of projects to take account of likely funding for particular Programmes. The funding situation for operations in the Great Lakes region, Rwanda, Angola and Afghanistan is particularly problematic.

52.At the Standing Committee meetings on 28-29 April and 23-25 June, the Deputy High Commissioner underlined the grave preoccupations of the Office over the funding of activities in 1998. Indications at the end of May 1998, were that the income for General Programmes would fall short by $ 62 million, with an expected total income of some $ 365.4 million, against the proposed revised 1998 budget of $ 429 million. (The budget for 1998 approved by the Executive Committee at its last session was $ 440 million - paragraph 148 refers.) He noted that this was proving to be a very painful experience for UNHCR and its partners, NGOs and governments alike, as the Office attempted to soften the impact, trying to formulate and re-prioritize projects so as to continue to address in a meaningful way the crucial needs of the many beneficiaries for whom UNHCR is mandated to provide protection and assistance.

VII.POST REDUCTIONS

53.As noted in paragraph 50 above, UNHCR has recently undertaken a post review both at Headquarters and in the Field. The review of Headquarters’ posts resulted in a net reduction of 59 posts in the course of 1998. These discontinuations were related to a decrease of activities in the field, and related diminishing resources. A further 54 posts are to be discontinued at Headquarters in 1998 as part of the ongoing implementation of Project Delphi.

54.A more extensive and time-consuming exercise was the review of posts in the Field. (The review is still being finalized.) Net discontinuations will have to take into account both discontinuations of posts and new creations of posts. These discontinuations will affect all categories (Professional, General Service, Field Service, National).

VIII.STAFF SECURITY

55.At the 9^th meeting (September-October 1997) of the Standing Committee, a report entitled Staff Stress and Security:a Management Challenge for UNHCR (EC/47/SC/CRP.49) was considered. The 1997 Plenary Session of the Executive Committee also adopted a Conclusion on the subject of the Safety of UNHCR Staff and other Humanitarian Personnel (A/AC.96/895, para. 20). It called on the High Commissioner to bring this issue to the attention of the Advisory Committee on Coordination (ACC), with a view to drawing up, in consultation with the Office of the United Nations Security Coordinator, recommendations on measures to be taken to improve security for the staff of UNHCR and its implementing partners, as well as of other humanitarian workers.

56.At the Second Regular Session of the ACC in 1997, the High Commissioner initiated the discussion on staff security. The ACC members considered that, in light of the increasing gravity of the situation, the issue should be addressed urgently. A Statement was adopted on staff security, both national and international. By way of follow-up, a high-level meeting of the CCAQ (Geneva, 9 February 1998), and an Ad Hoc Inter-Agency Meeting on Security (Montreal, 17-19 March 1998) considered the subject of staff security. The issue was again considered by the ACC at its First Regular Session in 1998, which adopted a decision based on the deliberations and conclusions of the previously mentioned meetings held in Geneva and Montreal.

57.A further update (EC/48/SC/CRP.31) on developments in relation to staff security was presented to the 12^th meeting (June 1998) of the Standing Committee. These considerations are given particular urgency by the fact that Mr. Vincent Cochetel, a UNHCR staff member, was, at the end of July, already some 6 months in captivity in the northern Caucasus.

IX.POLICY FORMULATION

58.The Policy Committee chaired by the Assistant High Commissioner and whose Terms of Reference were promulgated by the High Commissioner in February 1997 continues its work. In light of the comments of the ACABQ in its last Report, the working methods as set out in the Terms of Reference have been reviewed and adjusted with a view to streamlining the endorsement of policies.

59.In 1997 three papers were published in a Policy Series:

-UNHCR and Human Rights;

-Reintegration in the Transition from War to Peace;

-Return of Rejected Cases:UNHCR’s Role.

60.It will be recalled that the first edition of the Global Strategy Paper, entitled UNHCR Strategy Towards 2000, was published on 21 September 1996; it is currently being reviewed and updated. UNHCR’s strategic policy profits particularly from the annual debate, and resulting decisions, of the Executive Committee on a particular theme. The theme in 1997 was Voluntary Repatriation (see A/AC.96/887:Annual Theme:Repatriation Challenges).

61.A further volume of The State of the World’s Refugees, entitled A Humanitarian Agenda, was published in 1997 by the Oxford University Press. The volume produced by UNHCR’s Centre for Documentation and Research was also published in Arabic, French, German, Greek, Italian, Japanese, Polish, Portuguese, Russian, Spanish and Turkish.

X.IMPLEMENTING PARTNERS

62.Among UNHCR’s implementing partners, non-governmental organizations are of particular significance. During 1997, UNHCR concluded 931 implementing agreements with 443 NGOs, covering operational activities with refugee and other populations of concern to UNHCR in 131 countries. The majority of projects were implemented by some 322 national NGOs.

63.Following the decision taken at the eighth meeting of the Standing Committee in June 1997, NGOs registered as observers at the plenary session of the Executive Committee are now allowed to participate as observers in meetings of the Standing Committee, following their written request to do so. At each Standing Committee Meeting, one non-governmental organization (speaking on behalf of the other non-governmental organizations), is able to make an intervention on each agenda item.

64.A joint UNHCR/NGO working group has been set up to draft an Operational Partnership Agreement defining a common framework to meet operational needs, as well as set out standards of conduct. The agreement, when finalized, will be signed by UNHCR and individual NGOs who wish to participate in such a partnership. In addition, UNHCR is reviewing its strategy on meeting the needs of national NGOs, as well as developing a new NGO database to consolidate information on NGOs, who are either implementing partners or have a direct interest in refugee work.

65.The issue of audit certification of implementing partners remains one of concern to the Board of External Auditors. It will be recalled that UNHCR presented a number of proposals (EC/47/SC/CRP.48) on this subject to the Standing Committee at its 9^th meeting (September-October 1997). The Standing Committee also had the benefit of the comments of the ACABQ on these proposals (A/AC.96/884/Add.3, paragraphs 9-15). In a directive to UNHCR Field Offices, (FOM 34/98 of 6 April 1998), it was pointed out that the lack of compliance in the submission of audit certificates by implementing partners required that additional measures needed to be taken. It was pointed out that “the Board of Auditors, strongly supported by the ACABQ, [had] stressed that UNHCR should ensure that audit certificates [be) submitted by implementing partners in sufficient time for the Office to have the necessary assurance about the regularity, compliance and propriety of the expenditure incurred by the implementing partners, as reflected in their financial statements.” A number of measures were detailed in the directive to ensure a fuller compliance by implementing partners. A further paper (EC/48/SC/CRP.41)on compliance by implementing partners in the submission of audit certificates will be presented to the 13^th meeting (September-October 1998) of the Standing Committee.

XI.TRAINING

66.Staff training (see paragraphs 430-464 below) was the subject of a Conference Room Paper (EC/48/SC/CRP.20) presented to the Standing Committee at its 11^th meeting (April 1998). The focus of this paper was on some of the significant recent developments related to staff training, which also need to be seen in the context of the Change Management Process (Project Delphi), and on identifying certain major trends for the future. These trends underline the importance of training as a support to ongoing change, assisting staff to adjust to new or modified operational objectives and challenges. Such features are also those of a learning organization, which UNHCR aspires to be.

67.UNHCR aims to dedicate two percent of staff costs under its budget for Programme Delivery and Administrative Support to staff training. In 1997, budgets for staff training totalled almost $ 5,450,000, of which over $ 5,180,000 was committed or disbursed, corresponding to over 95 per cent of planned activities. Some 5,400 staff took part in various training programmes, mostly organized in-house or within the United Nations system (see Table XI.A).

68.The last report of the ACABQ made a number of observations in relation to the training of UNHCR and of its implementing partners. In particular, it requested that:the tabular information on training of UNHCR staff should be complemented with the total number of staff trained and the corresponding categories of training, i.e., management training, finance and administration, etc.; the training programme both for UNHCR staff and implementing partners should be evaluated for its cost effectiveness and impact; efforts should be made to ensure that those trained are engaged in work related to UNHCR operations; information on resources spent on training that is now included in project budgets should be clearly disclosed in the section on training in the overview document. A special meeting of UNHCR’s Training Advisory Board (TAB) was convened to consider and implement the ACABQ recommendations.

69.One area that still requires more progress is greater control over the training of implementing partners. UNHCR has traditionally captured budgetary information on training activities for non-UNHCR staff by means of a code within the Financial and Management Information. This code, however, is used by field offices to budget not only for formal training sessions for implementing partners but also for seminars for government officials, refugee training needs and assorted orientation activities. The information on expenditure for training of implementing partners has therefore not been sufficiently precise. It is estimated to be in the order of $ 6.5 million. In order to capture the necessary data, UNHCR intends, in 1999, to request field offices to use a separate and unique code when budgeting for implementing partner training.

70.The procedures for consolidation of narrative information on implementing partner training will also be improved in 1999. UNHCR intends to amend the current format used for monthly situation reports to include any training activities for implementing partners, so that this information can be updated on a more regular basis. In 1997, it is estimated that more than 5000 NGO staff members world-wide benefited form UNHCR sponsored training. Whilst the majority of these undertook protection training, other training included emergency management, programme management, people-oriented planning, food aid and registration, nutrition, logistics, security awareness, the environment and resettlement.

71.As recommended by the ACABQ, an evaluation of the organization’s training activities is being undertaken in the second half of 1998, one component of which will be an assessment of impact and cost effectiveness.

XII.BUDGET STRUCTURE

72.It will be recalled that the ACABQ in its last report (A/AC.96/884/Add.3, paragraph 29) stated that there was an urgent need to review the criteria for classifying UNHCR expenditures as Administrative, Programme Delivery and Operational. It recommended that UNHCR take into account the work already done in UNDP, UNFPA and UNICEF on this subject, and submit the conclusion of its findings to the Executive Committee, through the ACABQ, in conjunction with its budget submission for 1999.

73.In addition, at the 11^th Meeting of the Standing Committee (April 1998), a number of delegations asked that the issue of the distinction between General and Special Programmes be revisited and that the possibility of a unified budget be reviewed. From observations made by many delegations at the Standing Committee Meeting, it was obvious that there was considerable unease and dissatisfaction with the distinction:General Programmes/Special Programmes. A series of Informal Consultations was launched on 4 June 1998. Three meetings (4,17 June and 2 July 1998) were held, with some thirty-five interested Members/Observers of the Executive Committee participating. The Informal Consultations were chaired by Ambassador B. Skogmo of Norway.

74.The outcome of the Informal Consultations was a broad consensus on the proposed new budgetary format. It was understood that no formal decision would be taken on the matter until the Executive Committee had the comments of the ACABQ. A report on these Informal Consultations may be found in document EC/48/SC/CRP.43.

XIII.IMIS AND UNHCR IS INFORMATION TECHNOLOGY NEEDS

A.IMIS

75.The issue of UNHCR’s relationship to IMIS was last raised by the ACABQ in 1995 (see the ACABQ Report (A/AC.96/854 of 28 September 1995). At the time, UNHCR informed the Advisory Committee that the appropriateness of IMIS for UNHCR’s needs was under review. It was stated by UNHCR that IMIS financial modules at that time did not meet UNHCR’s all-important field needs, while the human resources module was not yet significantly more functional than UNHCR’s existing system. UNHCR said it was revising its long-term information systems plan, with integration capacity across all systems a prerequisite. Once requirements were specified, a decision would be made on how these would best be met, including whether this should be done through adaptation of commercial packages now available, or through significant adaptation of IMIS.

76.UNHCR’s Senior Management Committee has now taken a position on IMIS. On 18 June 1998, it endorsed the decision of UNHCR’s Information Technology Steering Committee (which in turn was based on a recommendation from UNHCR’s IMIS Steering Committee), that IMIS was not an appropriate solution for UNHCR’s information technology needs.

77.Over the years, UNHCR has developed a suite of information systems to support the needs identified by the Organization some 10 to 12 years ago. What is now clear is that, while UNHCR operates relatively functional “back office” systems, i.e. those that support processes of an administrative nature, it lacks the systems to support the core of its operations, particularly in the field.

78.One of the most important priorities to emerge from Project Delphi, UNHCR’s major change initiative, was to design an Operations Management System (OMS), through which the Office will carry-out a wide range of budgetary, financial, human resource, and other key management and administrative functions. The OMS design will focus on:strategic policy objectives and durable solutions; integrating protection and assistance in planning and implementation; streamlining resource allocation and reporting; and the delegation of increased management authority and flexibility to the Field, within the context of an accountability framework. Key to the above is a greater focus on the needs of the manager responsible for implementation and, consequently, the importance of providing him/her with access to relevant information and management tools. The Organization has committed itself to develop and implement these tools.

79.While the need to replace UNHCR’s current systems is inescapable, the attention of the office will be given to the design and deployment of new systems adapted to the needs and realities of UNHCR’s field operations. At a time when the need for replacement of legacy systems and design of new ones coincides with funding constraints, it is important that UNHCR ensures that its choices with respect to information technology fully and exclusively support its strategic direction. The Office has decided that IMIS is not the way forward for UNHCR.

80.By way of background to this decision, the following information is given. UNHCR first began looking at IMIS in 1990/91. It began discussions with the UN Secretariat and Deloitte & Touche to understand IMIS design, identify policy issues and communicate UNHCR needs. From the outset, the organization assumed a phased approach to the system with a particular focus on human resources. However, in late 1993, UNHCR suspended its involvement with IMIS project on the basis of a number of hesitations on the appropriateness of IMIS as an integrated solution for UNHCR.

81.Following a communication between the then Secretary-General and the High Commissioner in late 1995, UNHCR found itself under some renewed pressure to reconsider IMIS. Simultaneously, it became clear that, unless UNHCR were to adopt IMIS to feed the appropriate human resources data to the United Nations Office in Geneva (UNOG), the latter would not be in a position to run UNHCR’s payroll once UNOG converted its systems to IMIS.

82.Following a multi-disciplinary mission to New York in March 1996 led by the Controller, UNHCR determined that, while not an ideal solution, Human Resources Releases 1 and 2 would sufficiently meet its basic human resources requirements and would also allow UNOG to run the Payroll Release 4 on behalf of UNHCR. UNHCR thus agreed in principle to pursue the use of these Human Resources Releases. The mission also resulted in the conclusion that the finance portion of the system, Release 3, did not meet many of UNHCR’s existing requirements or those expected to emerge from the Change Management Process (Project Delphi) then underway within the organization. Of particular concern were the absence of a budget capability, and the focus of the system on headquarters activities.

83.At that time, UNHCR felt that the partial implementation of IMIS might offer UNHCR the benefits of standardisation with the UN system of human resources and payroll functions, while at the same time allowing it the flexibility to develop systems for other functions that would better support its specific operations, particularly in the field. UNHCR was conscious, however, that adoption of the Human Resources modules of IMIS alone would not offer the benefits of a fully integrated system.

84.As an essential first step to assess IMIS within UNHCR’s working environment, the Division of Human Resources Management (DHRM), with the assistance of Price Waterhouse, carried out a “gap analysis” of Release 1 between September 1997 and February 1998. This gap analysis which included IMIS user training, Price Waterhouse expert presentations, an hands-on testing of the system, was a rigorous one. The results revealed that significant modifications would be required to achieve even equivalent functionality to the current UNHCR Personnel Information online Update System (PIOUS).

85.It emerged that approximately sixty high-priority code enhancements would be required for IMIS to be usable at UNHCR. Of particular concern was the absence of retroactivity in the system and the lack of recruitment and career development modules. While not deemed mandatory, many other enhancements of the more than 250 system issues identified by users were deemed desirable for the initial implementation.

86.Price Waterhouse’s functional requirements specifications showed that 6,400 hours of consulting time would be required to code and test these enhancements. Additional consulting time would be required to implement the final changes at UNHCR. This level of enhancement would require budgeting for at least the equivalent of two full-time UNHCR staff on the development team in New York to assist and test these enhancements.

87.Although some benefits were identified, these were deemed to be outweighed by other problems that surfaced as a result of the gap analysis. Screen navigation was found to be highly unfriendly and cumbersome even in comparison with UNHCR’s current legacy system, PIOUS. Also, IMIS would require UNHCR’s Division of Human Resources Management (DHRM) to process a greater number of personnel actions than at present, and it would likely take longer to process each action.

88.In addition to the gap analysis for Release 1, earlier this year UNHCR retained a Danish consulting firm to provide the Office with an assessment of options and alternatives for the payroll of its staff.

89.After a thorough review of both the gap analysis for Release 1 and the report of the Danish consulting firm, UNHCR concluded that it had no option but to discontinue its involvement with IMIS.

90.In addition to the reasons given above, other considerations that led UNHCR to this decision are as follows:

-Design and deployment of UNHCR’s systems to meet UNHCR’s needs must be adapted to the particular requirements and realities of its field operations. UNHCR has 290 offices in 124 countries. At a time when the need for replacement of legacy systems and design of new ones coincides with funding constraints, it is all the more important that the organization ensures that its choices with respect to information technology fully support its strategic direction toward decentralisation of management authority and accountability to the field;

-Focused as it is on headquarters activities, IMIS cannot provide programme management facilities, performance-oriented budgeting, caseload management or a planning framework - all of which are considered essential in UNHCR’s increasingly decentralised and field-oriented environment. Furthermore, it would be difficult, if not technically impossible, to link UNHCR’s planned programme management and knowledge base modules with IMIS finance and personnel modules so as to produce the level of interoperability that the Office requires;

-To run IMIS Payroll Release 4, UNHCR would have been compelled to implement essentially all Releases including much of the functionality contained in Finance Release 3, which does not support the organization’s strategic direction toward decentralization to the field. “Bridges” to other commercially developed enterprise business systems for finance and supply chain, where available, would clearly be difficult and costly. This would greatly increase UNHCR’s risk of inadequate system support, missed deadlines and budget overruns. UNHCR felt it did not have the resources or expertise to mitigate this level of risk. In addition, IMIS does not currently contain a budget module. This would obviously be essential for any system that attempted to address UNHCR’s needs;

-From a technical point of view, IMIS poses further problems. It is incompatible with commercial systems because it is custom developed, and it cannot be dissected because of its integrated nature. Furthermore, IMIS commits its users to a Sybase database. In UNHCR’s opinion, this is not the ideal Relational Database Management System (RDBMS) for our needs. This will require UNHCR to adopt a second database for its enterprise system, with obvious additional costs;

-While IMIS would come free of licensing fees, it would nevertheless require UNHCR to incur implementation costs of the order of several million dollars, as well as very high recurrent costs for its further development, maintenance and support. It is clear that additional user posts would be necessary at a time when UNHCR is under pressure to reduce staff. UNHCR’s annual information technology budget is limited and it is critical that these scarce funds are utilized to the greatest benefit.

91.In view of the shortcomings of IMIS in meeting UNHCR’s needs, the Office is preparing a Request for Proposals to be issued to major software solution providers for the Enterprise Resource Planning (ERP) system. This system will include OMS processes like field planning and workflow control, as well as supply chain, finance and budget, and human resource and payroll modules. These new systems, which will be customised to meet UNHCR’s needs during implementation, will support UNHCR’s strategic direction in field systems, and the principles of decentralization and delegation. The objective will be to achieve flexibility and integration and provide much wider access to information than available at present or through IMIS.

92.Meanwhile, UNHCR’s corporate systems - FMIS and PIOUS, and other related systems - are being adapted to meet Year 2000 requirements and to ensure that they can continue to function, at least over the next two to four years. Similarly, current field systems will also be made Year 2000 compliant and will remain in use until alternatives are identified.

93.In terms of a payroll solution, with UNOG committed to IMIS, UNHCR is actively pursuing alternatives, suggested by the Danish payroll consultancy, which should be in place before the year 2000. One of these alternatives is to use the payroll facilities of another UN agency in Geneva.

94.Expenditure by UNHCR, over the years, on IMIS have been as follows:1993:$ 319,751; 1994:$ 43,144; 1995:$ 1,100; 1996:$ nil; 1997:$ 266,700. The budget for 1998 is:$ 98,600.

B.Information Technology

95.UNHCR is in the process of finalizing its Information Technology Strategy. The broad directions of that strategy became clear as it was determined that information technology should serve the direction that UNHCR adopted as a consequence of the Change Management Process (Project Delphi), in particular the intention to introduce a new Operations Management System. It was this direction, and its information technology implications, that enabled UNHCR to come to a decision on IMIS. The need for new systems derives from the fact that neither IMIS nor UNHCR’s existing systems would be able to support UNHCR’s proposed new approach to the management of field operations, nor provide the related financial and budgeting facilities necessary to manage a decentralised environment.

96.Thus, UNHCR’s overall policy is primarily determined by the need to support a major initiative in decentralisation. Many activities previously managed at Headquarters have been delegated to operations at field level, and many more will follow over the next two years. From a managerial perspective, it was clear that managing some 290 offices in over 124 countries required greater focus on planning - linking activities, objectives, goals, and outputs - and the ability to support multi-dimensional reporting in a timely manner, not only for UNHCR, but also for its implementing partners. Technology must therefore support access to information wherever it is required, and provide interoperability among various systems, so that data need only be entered once, irrespective of how many applications will use it. Within the constraints imposed by telecommunications in field locations, UNHCR aims to provide an integrated enterprise-wide system linking core systems of finance, budget, supply chain and human resources electronically to field systems in all locations. A key objective is to ensure that all staff have ready access to the information they need to perform their jobs function. This will range from on-line access to HQ systems, to replication of synchronised databases, to communication over slow-speed HF radio.

97.To provide UNHCR with the necessary direction, coordination and controls in the area of information technology, an Information Technology (IT) Steering Committee and an Operations Management System (OMS) Project Board have been established. The terms of reference of these two bodies is as follows:

-The Information Technology (IT) Steering Committee, chaired by the Deputy High Commissioner, will set organizational objectives for IT, approve the IT Strategy which is currently being finalized, approve major hardware and software acquisitions, determine priorities and monitor performance;

-The Operations Management System (OMS) Project Board, chaired by the Director of the Division of Operational Support, has responsibility for providing oversight of all activities relating to the new OMS.

98.The primary focus of UNHCR’s information technology initiatives is support of the new Operations Management System (OMS). New IT modules, which will replace most of UNHCR’s core systems, will supply the functionality to support the new OMS environment. These IT modules will cover:Finance, Budget, Supply Chain, Human Resources & Payroll, Protection and Programme Management, and a Knowledge Database. Core modules will be provided by an Enterprise Resource Planning system, and these will be integrated with customized Field systems to meet the unique needs of the management of refugee situations. Work on specifying finance, budget and supply chain requirements is well-advanced. The new system will strengthen UNHCR’s management capacity at all levels, with improved planning, analysis and reporting, and asset management. Performance-oriented budgeting, case-load management and streamlined resource allocation will all be supported. Timely access to information will be greatly enhanced, enabling more accurate reporting to donors, better management of the relationships with implementing partners and, above all, access to whatever information is required by staff members. It is proposed to release a Request for Proposals (RFP) in the autumn of 1998. A modular approach to the systems development will be adopted. (For budgetary provisions see paragraphs 388-420.)

99.As the development period of the new systems spans three to four years, some interim systems will be required to support operations. Of particular value is a new form-based data-capture/knowledge-base technology, Informs, which UNHCR is using to develop a Situational Report database for the Division of International Protection, and for components of the Career Management System.

100.Enterprise-wide systems are dependent on a sound telecommunications infrastructure for their success, and UNHCR is continuing to enhance its facilities. At the end of 1997, UNHCR discontinued its use of Harris satellites and changed to Intelsat DAMA satellites which provide improved voice quality at less than a tenth of the cost. Intranet facilities (see paragraphs 421-426) were provided to around on thousand users in Headquarters, and during 1998/9 installation of Intranet facilities in key Field Offices will begin. E-mail has now been extended to more than 220 locations, and E-mail over radio has been successfully piloted. The E mail system will be upgraded to provide a 32 bit platform, and UNHCR aims to undertake a major upgrade of its HQ LAN this year. This is a significant move, as it will enable UNHCR to run many applications more effectively than the current 16 bit platform permits. Windows 95 and Office 97 will be implemented in 1998/9.

101.As with other entities in the United Nations, UNHCR has had to take a number of steps to overcome the Year 2000 problems, which is a major undertaking affecting every area of UNHCR. Many of UNHCR’s 90 current systems are being extensively modified, or replaced, and the office expects to complete this work by the end of the first quarter 1999. More than 4,000 PCs in the Field and Headquarters will have to be examined, and many modified or replaced. Three hundred PCs have been purchased this year to replace known defective machines. UNHCR’s networks are being modified or replaced where necessary, and all equipment throughout the world must be checked for defective computer chips. Suppliers are being asked to confirm that their supplies are fully Year-2000 compliant. However, there are many aspects of UNHCR’s operations over which it has no control, such as power supplies, banking facilities, food supplies. All UNHCR Field Offices have therefore been instructed to make contingency arrangements.

102.In a period of severe financial constraint and staff reductions, the conversion of current systems for the millennium and the system renewal developments are major undertakings. To assist UNHCR in its endeavours, the Office has established a Memorandum of Understanding (MOU) with the United Nations International Computing Centre (UNICC), whereby they are providing UNHCR with managed information technology services to supplement its internal resources. This outsourcing arrangement is working well (see paragraphs 531, 532).

103.Another important factor, given the high rate of change in systems, coupled with decentralisation, is training:staff need to be to trained to make effective use of the new facilities. Table XI.A shows that in 1997, some 1300 staff received training in the areas of Data Processing and Communications, and on the Centre for Documentation and Research Information Databases.

C.Inventory of Information Technology Systems

104.In response to a request of the ACABQ, there follows, in summary form, an inventory of UNHCR’s information technology systems. The inventory is sub-divided between the core systems and field systems. Costs related to the development and management of these systems are set out in Table I.1.

1.Core Systems

105.Computerisation started at UNHCR in 1980 with the establishment of an EDP Section. The first application developed, using the International Computing Centre (ICC), collected statistical data on the South-Asia refugees. Shortly thereafter, a major effort was launched to computerise the office’s administrative functions to meet its business needs in budgeting, spending, controlling, reporting to donors, etc., all of which were completed by 1986. A few years later, UNHCR launched an overhaul of the major systems using more recent tools. These systems are the backbone that supports UNHCR’s corporate needs at Headquarters (HQ) through mainframe or LAN-based systems. A total of some 88 applications are used and run regularly on either the ICC mainframe computer or on the LAN platforms. These systems have been grouped into seven categories. These are described below.

(a)FMIS/HQ & ABPS (Financial and Management Information System & Administrative Budgeting Processing System)

106.This suite of applications consists of a large number of systems operating on the ICC mainframe and on PCs in Field Offices (FMIS/Field). The project was initiated in 1987 and was implemented through a number of phases beginning in 1990. As with all systems, it is continuously being upgraded to keep up with additional needs, but it is generally accepted that the system was completed in 1993. The project covered both HQ (FMIS/HQ & ABPS) and Field Offices (FMIS/Field). The documented project development costs of $ 5.0 million until 1990, cover both HQ and Field (including provision of hardware/software for Field Offices). Some 44 per cent of these costs was dedicated to FMIS/Field bringing the total development costs of the HQ portion of FMIS from inception to 1990 to $ 2.8 million. From January 1991 to April 1993, development costs for FMIS/HQ & ABPS are estimated to be $ 1.2 million; thus the total development costs of these systems are $ 4.0 million. The yearly support costs (personnel) of the these systems are $ 300,000 and the data centre operating costs are $ 750,000.

(b)Personnel Systems

107.These consist of eight sub-systems which provide the Division of Human Resources with the necessary applications to perform Personnel Administration, Post Management, APPB/APPC requirements, Career Development, Consultant Roster, Data for Payroll, Recording of Staff Training and the Recruitment system. The project was launched in 1981 and developed over 5 years. In 1990, the Personnel Administration system was significantly overhauled with the introduction of retroactive processing of personnel actions. Estimated costs of development of original systems are $ 2 million. The yearly support costs (personnel) are $ 300,000. Yearly processing costs are $ 525,000.

(c)Procurement Systems

108.The Procurement System and related systems consists of three sub-systems used by Supply, Finance, Treasury, Desks and other sections at HQ. These systems allow for procurement requests and recording of quotations, purchasing and shipping details, recording and approval of invoices and payments, automatic payment instructions to the bank ‘ etc. The major phases of the project were initiated in 1986, 1989 and 1994. Estimated development costs are $ 900,000. Yearly support costs amount to $ 150,000. Yearly processing costs are $ 500,000.

(d)Fund Raising System

109.This System has two sub-systems:(i) Recording sub-system to record contributions and (ii) a Query & Tabulation sub-system which allows searching for contributions and producing tables and statistics as well as ad-hoc reports. It was originally developed in 1982-1983, but overhauled in 1995. Estimated development costs are $ 300,000. Yearly support costs amount to $ 100,000. Yearly processing costs are $ 225,000.

(e)Other Mainframe-based Systems

110.These provide a wide number of facilities ranging from Individual Cases and Resettlement data bases to telex and fax dispatching. Yearly support costs are $ 100,000. Yearly processing costs are $ 250,000.

(f)LAN/HQ Information Systems

111.A large number of LAN databases provide information ranging from Reuters News Feed to exchange rates, DSA rates, etc.. Yearly support costs are $ 75,000. Yearly processing costs are set out in paragraph 113.

(g)LAN/HQ Workgroup Applications

112.These are various systems designed for sections or workgroups to meet functions specific to them e.g. Travel Register, Treasury Bank Information system, etc. Yearly support costs are $ 75,000. Yearly processing costs are treated in paragraph 113.

113.Groups (f) and (g) above run on the HQ LAN, which costs $ 2.4 million to support and operate. Approximately 33 per cent of this cost, i.e. $ 800,000, can be considered as the yearly processing cost of these systems.

2.Field Systems

114.Standardised field-based computer systems came into existence late in the 1980s in two major areas of work:FMIS/Field as noted above (paragraph 106), and Powerbase Individual Cases systems, designed and developed by HQ teams. Since the early 1990s, UNHCR experienced emerging needs for PC-based field applications, inspired by the powerful development tcols such as FoxPro and ACCESS, coupled with the MS Windows platform, for new areas of computing such as logistics support, mass refugee registration/ repatriation, fixed asset management, the Medical Insurance Programme, the Career Management System, and other knowledge-base type systems.

115.A total of 13 major field-based systems, developed/supported by ICSS, are currently operational or becoming operational at a number of field locations. These systems can be, by and large, categorised into four main product groups:

(a)Refugee Registration/Repatriation

116.To replace the outdated Powerbase IC systems and also in response to capacity-building initiatives in the countries of new Member States of UNHCR in Central/Eastern Europe, the initial design of the RICS (Registration of Individual Cases System, then called CEERICS) was initiated as early as mid 1993. This product has grown to the current FoxPro 2.6 Windows version (4.x) and has been implemented in a wide range of individual case registration scenarios, such as irregular mover tracing in Asia and Southern Africa, traditional urban individual case registration in West Africa and Europe, and also repatriation of Bosnians. The total development cost of this product is estimated at $ 400,000 (for the entire period of 5 years), including the staff time, travel and consultancy fees. The annual support costs (for personnel - both consultancy fees and staff costs included) run at $ 150,000. The FBARS (Field-based Refugee Registration System) was conceived as a result of a user-driven mass-registration workshop in Africa in late 1993, in response to the growing needs for UNHCR managed camp caseload management. The system has been successfully implemented in major, mass registration operations in Africa, and the system is in the process of being upgraded to a recent FoxPro 2.6 for Windows version. The total development cost of the FBARS is estimated, for the entire period of 4 years, at $ 150,000. The annual support costs are estimated at $ 70,000. Both the RICS and FBARS now have to be re-visited in the light of the new OMS systems development initiative, and have to be integrated into the caseload management functionality of the future OMS. Significant staff resources will be drawn into this area of systems analysis/ development from late 1998 into the year 2000.

(b)Supply Chain

117.The need for UNHCR to manage/coordinate large-scale humanitarian emergency operations in the early 1990s highlighted the urgent need for logistics support tools. The CTS (Commodity Tracking System) was conceived and came into production in early 1993, and has been implemented in the former Yugoslavia, Great Lakes and some other major field logistics operations. The product is being upgraded to an ACCESS version, as a viable interim solution to the long-term Supply Chain software development. The new version has been developed as an integrated element of the Pipeline Management - Field Logistics suite, together with the Motor Items Management System. The total development cost of the CTS/PMS/MIMS is estimated at $ 400,000, with the annual support costs of $ 80,000. As the CTS/PMS/MIMS suite now serves its role as an interim solution to the longer-term Supply Chain software development, the feedback from the interim solution users will contribute to the development process of the Supply Chain software development. Staff resources will be increasingly shifted from interim solutions development to the support of the new systems development, with expected roll-out in the 1999-2001.

(c)Administrative/Financial

118.As described above (paragraph 104), the FMIS/Field has been playing a key role in the field PC application implementation. A set of new additions arrived in between 1994 and 1997 in this area: MINDER, UNHCR’s fixed asset management system, and the MIP (Medical Insurance Programme). MINDER is an off-the-shelf package, customised to UNHCR needs. The MIP development was undertaken by ICSS, with staff member analysts assigned to the project working with user representatives. The total development cost is estimated at $ 200,000, with annual support costs of $ 10,000.

(d)Form-based Data Capture/Knowledge Base

119.This is a new area of field systems development where some new technology developments have come into play, such as form-based data capture, text retrieval and e-mail network for automated data transport. Key applications in progress are a SitRep Infobase (for Situational Reports from UNHCR Field Offices), the Division of International Protection (DIP) Resettlement database, the organization-wide Career Management System data capture, and the Division of Human Resources Management (DHRM) Personal Action Decentralisation project, called InSite. The total development costs are yet to be determined, as all these applications are still in the process of development.

XIV.OVERSIGHT

120.An Oversight Committee (whose terms of reference are set out in a memorandum of 6 February 1997 from the High Commissioner), chaired by the Deputy High Commissioner, is, inter alia, responsible for reviewing common issues and summary findings of audits, inspections and investigations, and assigning responsibility for taking action as appropriate.

121.Audit coverage for UNHCR is provided by the Board of External Auditors and the specially dedicated UNHCR Audit Section in the Audit and Management Consulting Division (AMCD) of the Office of Internal Oversight of the United Nations (OIOS). Further oversight is provided by UNHCR’s Inspection and Evaluation Service.

A.External Audit

122.The Report of the Board of Auditors for the 1997 accounts is found in document A/AC.96/901. The audit covered Headquarters, Angola, Bosnia and Herzegovina, Cote d’Ivoire, the Democratic Republic of the Congo, the Philippines, the Russian Federation, and the United Republic of Tanzania. (For the budgetary provisions for the External Audit, see paragraph 529 below.)

123.UNHCR’s follow-up to the observations and recommendations of the Board of Auditors Report has been the subject of systematic review by the Standing Committee in the course of the year (see EC/48/SC/CRP.5; EC/48/SC/CRP.14; EC/48/SC/CRP.30; and EC/48/SC/CRP.41); these documents cover the UNHCR follow-up to the Report on the 1996 Accounts).

B.Internal Audit

124.Internal Audit services are provided for UNHCR by OIOS on the basis of an MOU signed between UNHCR and the OIOS on 29 April 1997. On the basis of this MOU, UNHCR is to provides funds for an audit staff of 15, of whom four will be Resident Auditors covering major field operations. (For the budgetary provisions, see paragraphs 526,527 below.)

125.The proposed Internal Audit coverage for 1998 will embrace the following countries:Bosnia and Herzegovina, Brazil, Burundi, Egypt, Eritrea, Ethiopia, Guatemala, Hungary, India, Kazakhstan, Kyrgyzstan, Liberia, the former Yugoslav Republic of Macedonia, Nepal, the Niger, Papua New Guinea, Slovenia, Tajikistan, the United Republic of Tanzania, Uganda, Viet Nam and Yemen.

C.Inspection and Evaluation

126.A report on UNHCR’s Inspection and Evaluation Activities may be found in document A/AC.96/902.

XV.VOLUME CHANGES: EXCHANGE RATE IMPACT

127.An overall picture of UNHCR expenditure in 1997 and estimates/projections for 1998 and 1999 is found in Table II. 1. The overall staffing levels (covering all staff, both international and local, be they established or temporary staff) is found in Table II.10. An analysis of variations in relation to Programme Delivery and Administrative Support costs, covering variations due to exchange rate/budget parameters, or variations in volume (post/staff costs and non-staff costs) is found in Table II. 22 and the related narrative in paragraphs 178-188.

128.The strong United States dollar has had a very negative effect on contributions pledged in national currencies which have depreciated against the United States dollar. For example, one traditional major donor, despite increasing its 1997 contribution level (in its national currency) by 6 per cent, saw the dollar value of its contribution decrease by 8.6 percent in comparison to its previous year contribution.

129.As noted in the annual accounts (A/AC.96/899, Statement 1), total interest income amounted to $ 11.9 million. However, overall currency exchange rate adjustments accounted for a nominal net loss in income of $ 6.5 million. Included in this net amount were nominal losses (when expressed in US dollar terms) incurred on a number of contributions in national currencies, which were retained (partially or in full) and invested in the same currencies, amounting to $ 9.3 million (this is made up of $ 2.2 million on the “call”, short-term investment account, and $ 7.1 million on fixed-term investments).

XVI.CONCLUSION

130.The matters considered in this chapter are among the principal issues confronting UNHCR. At the same time, the steps UNHCR has taken in response to matters raised by the Executive Committee, the ACABQ and the Board of Auditors have been highlighted.

Table I.1
Software Development Costs
(in US Dollars)

 

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CHAPTER II:GLOBAL OVERVIEW

I.INTRODUCTION

131.A global overview of UNHCR programmes (namely General Programmes and Special Programmes) is presented in this chapter. The chapter also deals with overall UNHCR staffing and costs related to Programme Delivery and Administrative Support. More detailed information on each of these matters (programmes, staffing, PD/AS costs) for the various operations (and by country), for the category “Other Programmes”, and for Headquarters, may be found in the subsequent chapters of this overview document. This chapter is, thus, primarily a consolidation of the information found in Chapters III-XII of this Overview document.

II.REFUGEES AND OTHERS OF CONCERN TO UNHCR

132.There were an estimated 22.4 million persons of concern to UNHCR as of 31 December 1996. Annexes I.A and I.B of this document give an analysis of the categories (refugees, returnees etc.) within this global figure. Fuller information may be found in the publication Refugees and Others of Concern to UNHCR. 1997 Statistical Overview (Geneva 1998).

III.OVERALL PROGRAM NEEDS AND RESOURCES

A.Programme Needs

133.UNHCR programmes are divided into the two broad categories of General Programmes and Special Programmes. General Programmes cover statutory activities and consist of the Annual Programme, the Voluntary Repatriation Fund and the Emergency Fund. The Annual Programme is made up of programmed activities for the various regions/operations (which in turn are broken down into individual countries or areas), another category of activities called Other Programmes, and Headquarters. It also includes a Programme Reserve. Special Programmes describe a series of activities funded from a range of distinct trust funds. These activities, while mandated, need not necessarily be strictly statutory. In a number of instances, purely statutory activities may be funded for a range of reasons (for example, funding considerations) under Special Programmes. Programme needs under the two broad programme categories (General and Special) also include costs related to Programme Delivery and Administrative Support. As mentioned in paragraphs 72-74 above, and as discussed more fully in document EC/48/SC/CRP.43, UNHCR has been reviewing the presentation of its programmes and its budget structure. This will be one issue on which the Executive Committee will be asked to pronounce itself.

134.Table II.1 gives a summary of programme expenditure in 1997, the revised 1998 estimates and initial projections for 1999 for both General and Special Programmes (as of 31 May 1998).

1.1997 Programmes

135.At the forty-eighth session of the Executive Committee in October 1997, total 1997 needs were estimated at $ 1,214.4 million (see A/AC.96/884/Add.2). Of this amount, $ 452.6 million was for General Programmes and $ 737.8 million for Special Programmes. A further $ 24 million was budgeted for administrative support for posts covered by the United Nations Regular Budget. Total UNHCR expenditure in 1997 (including PD/AS), amounted to $ 995.2 million. Of the total expenditure, $ 385,064,900 was under General Programmes, $ 588,001,400 was under Special Programmes, and $ 22,114,600 was met through the United Nations Regular Budget contribution. The difference between estimated needs and actual implementation, as reflected in the expenditure figures, can be attributed to a range of factors, not least of which was the limited availability of resources (see paragraph 144 below).

TABLE II.1
UNHCR EXPENDITURE IN 1997, AND ESTIMATES/PROJECTIONS FOR 1998 AND 1999 - ALL SOURCES OF FUNDS (in thousands of US dollars)

 

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^a Forms part of General Programmes.

^b Actual expenditures are included in the relevant regions under General Programmes.

^c Represents unallocated balance as of 31.05.98; allocations made from 01.01.98 to 31.05.98 totalling $ 16,271,900 are shown above in the relevant regions under General Programmes.

^d Initially $ 35,900,000 Programme Reserve and $ 25,000,000 for Emergency Fund. Allocations made from 01.01.98 to 31.05.98 are included in the relevant regions under General Programmer; amounts shown here thus represent balances available for meeting contingencies for the remainder of the year.

^e Not yet allocated to specific countries.

2.1998 Programmes

136.Programme needs in the revised estimates for 1998 (as of 31 May 1998) amount to $ 983,746,600 million, of which General Programmes account for $ 428,973,500 (44 per cent) and Special Programmes amount to $ 532,692,500 (54 per cent). The Regular Budget contribution is estimated at some $ 22.1 million (2 per cent)

137.On the basis of budgetary allocations as of 31 May 1997, 90 per cent of the revised estimates is for programmes related to the Field, the remaining 10 per cent for Headquarters. It is foreseen that of the programmes in the Field, 41 per cent would be in Africa, 26 per cent in Europe, 10 per cent in Central Asia, South West Asia, North Africa and the Middle East (CASWANAME), 6 percent in Asia and the Pacific, 3 per cent for the Americas, and the remaining 4 per cent under “Other Programmes”.

138.Updated revised estimates for 1998 (as of 1 August 1998) will be presented to the thirteenth session of the Standing Committee (September October 1998).

3.1999 Programmes

139.Initial programme needs for 1999, as foreseen at 31 May 1997, place General Programmes at $ 413 million. A provisional and necessarily incomplete estimate of needs under Special Programmes for 1999, amounts to $ 429.2 million.

B.Resources

1.Introductory Comments

140.With the exception of a United Nations Regular Budget contribution, which amounts to some 2 per cent of UNHCR’s resources, all contributions to UNHCR are voluntary. This heavy reliance on voluntary funds results in a high degree of unpredictability as to the level of resources which may be made available to UNHCR for a given year. This, in turn, poses considerable challenges in preparing budgets and affects project implementation. The unpredictability of funding makes it imperative for UNHCR to maintain close contact with its major donors and to seek financial support from a broader cross-section of countries, as well as the private sector. Table II.2 presents a listing of UNHCR’s principal donors in 1997. In addition, an invaluable direct contribution is made by countries hosting refugees.

141.UNHCR attaches great importance to determining, in consultation with Member States, the level of General Programmes (consisting of the Annual Programme, namely Programmed Activities and a Programme Reserve, as well as an Emergency Fund and a Voluntary Repatriation Fund). UNHCR needs to be assured, at least, of a level of predictable income which will cover the activities under General Programmes. Their level, thus, has to be realistically set, as approval by the Executive Committee implicitly carries with it the commitment to full funding. However, in 1998, as in 1997, there has been a negative trend in contributions to General Programmes. As at the end of May 1998, indications are that the 1998 contributions to General Programmes could fall short of the proposed revised 1998 target by some $ 62 million.

 

TABLE II. 2
CONTRIBUTIONS TO UNHCR ASSISTANCE PROGRAMMES
(in United States Dollars)
Situation as of 31 December 1997

 

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Table II.3
UNHCR Expenditures and Resources - for the period 1995 to 1998
(in thousands of US Dollars)

 

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^* estimates and projected resources as of 31 May 1998

^** includes carry-over of $10.9 million for unprogrammed activities

^# includes balance of reserves

142.A positive aspect of the way General Programmes operate derives from the flexibility given to the High Commissioner by the Executive Committee to effect such adjustments in projects, regional, country or area programmes, Other Programmes and Headquarters’ budgets, as may be required by changes affecting the refugee or returnee programmes for which they were planned, using the Programme Reserve, where necessary. This flexibility contributes to a more effective management of resources available for General Programmes. On the other hand, Special Programmes are funded by a range of distinct trust funds, each operating according to the funding dynamic of that particular Special Programme. In 1995, however, the Executive Committee broadened the terms of reference of the Programme Reserve and the Voluntary Repatriation Fund to allow them to be used, under certain conditions, for statutory activities being undertaken, for various reasons, under Special Programmes (see document A/AC/96/503/Rev. 6: Financial Rules for Voluntary Funds Administered by the High Commissioner for Refugees, art. 6.9-6.16).

143.Both UNHCR’s General and Special Programmes are governed by UNHCR’s Financial Rules. For both General Programmes and Special Programmes, disbursements or obligations can only be made in accordance with Article VIII of the Financial Rules (A/AC.96/503/Rev.6). Article 8.2 states:

The High Commissioner may incur obligations for the implementation of projects to the extent that moneys and unconditional governmental pledges are available in the appropriate fund or account. The High Commissioner may also, pending the receipt of the contributions, enter into obligations up to one-half of the total amount of conditional governmental pledges, and of firm pledges from organizations of established repute. Furthermore, the High Commissioner may enter into obligations under the Annual Programme, and the Emergency Fund and the Voluntary Repatriation Fund up to the amount funded from the Working Capital and Guarantee Fund as provided for in Article 6.3 (e) and (f) of these financial rules.

2.Resources 1997

144.References in this section to total funds available, or to total carry-over, do not include the Working Capital and Guarantee Fund which is established at $ 50 million, nor do they include funds under the Medical Insurance Plan, which appear in UNHCR Accounts as from 1995. In 1997, total funds available (see Table II.3) to UNHCR under all sources of funds (including the Regular Budget contribution), amounted to $ 1,133,566,600. In 1996, total funds available to UNHCR amounted to $ 1,382,057,400. This represents a decrease of some $ 248 million. To be noted also is the declining level of carry-overs from the previous year. Of the total funds available in 1997, those for General Programmes amounted to $ 385,323,200. For the various Special Programmes, funds available amounted to $ 726,128,800.

3.Resources 1998

145.There was a total carry-over into 1998 of some $ 140.5 million. Of this amount, only some $ 2.5 million was for General Programmes and $ 138 million for various Special Programmes. Tables II. 3,4 set out the resource situation for General Programmes and Special Programmes for 1998, as of 31 May 1998. In addition to showing the above carry-overs (which, in the case of Special Programmes, is broken down by programme), Table II.4 also indicates funding received of 31 May 1998, as well as projected further income. As of 31 May 1998, resources available under General Programmes, against projected needs of $ 429 million, amounted to $ 367 million. For the various Special Programmes, as Table II.4 indicates, the resource situation varied considerably between programmes. It will be recalled that no flexibility exists to move funds between individual Special Programmes; but as an indication of the overall availability of funds for Special Programmes, the resources available, including carry-overs, as of 31 May 1998, amounted to $ 534.8 million. An update of available resources, as at 1 August 1998, will be presented to the Standing Committee at its thirteenth meeting (see A/AC.96/900/Add.2).

4.Resources 1999

146.As mentioned above, the initial target to be proposed for General Programmes for 1999 is $ 413 million. On the basis of trends in contributions in 1998 and the expected lower carry-over into 1999, the Office felt that the 1999 target should be reduced still further in relation to the 1998 level. The funding of General Programmes is a recognized priority for UNHCR. Resources for Special Programmes will depend on requirements and the response to individual Special Programme appeals. As noted above, each of these Special Programmes has its own funding dynamic and its implementation is subject to the availability of resources.

IV.GENERAL PROGRAMMES

A.General Programme Expenditure in 1997

147.Expenditure in 1997 under General Programmes and as set out in Table II.5 (column 1), amounted to $ 385,064,900. This was within the approved revised target of $ 452,612,000 adopted by the Executive Committee at its forty-eighth session (see document A/AC.96/895: Report of the Forty-eighth Session of the Executive Committee of the High Commissioner’s Programme (Geneva, 13-17 October 1997)).

B.Proposed Revised 1998 General Programme Estimates

148.The proposed revised 1998 General Programmes budget is set out in Table II.5 (column 3). It should be noted that this proposed revised budget of $ 428,973,500 is lower than the budget of $ 440,000,000 approved by the Executive Committee at its forty-eighth session in October 1997.

Table II.4
UNHCR - 1998 PROGRAMME/FUNDING REQUIREMENTS
(as of 31 May 1998 - in millions of US dollars)

 

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^a includes projected secondary income;

^b breakdown on page 2;

^c appeal to be issued shortly;

^d includes various trust funds:DAFI, Public Awareness, Private Sector Fund Raising, Resettlement activities, Environment, and 1997 Special Programme in Cyprus;

^e represents programmed activities only (total carry-over for Special Programmes and Accounts as per 1997 Annual Accounts amounted to $138.1 million).

Table II.4
UNHCR - 1998 PROGRAMME/FUNDING REQUIREMENTS

(as of 31 May 1998 - in millions of US dollars)

 

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^e tentative - estimates under review.

TABLE II.5
UNHCR GENERAL PROGRAMMES
(in thousands of US dollars)
Summary of 1997 Expenditure. 1998 Initial and Proposed Revised and 1999 Initial Estimates

 

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^a expenditure included in the respective countries;

^b calculated at 10% of the programmed activities;

^c of the initial Programme Reserve of $35,900,000 a total of $8,222,141 had been applied as of 31 May 1998 against increased requirements and is shown in the respective region, leaving $27,677,859 for the remainder of 1998 as a Reserve;

^d calculated at 10% of the programmed activities;

^e as of 31 May 1998, $16,271,900 had been allocated and is shown in the respective region, leaving a balance of $3,728,1100 for the remainder of 1998;

^f as of 31 May 1998, $7,650,700 had been allocated and is shown in the respective region, leaving a balance of $17,249,300 for the remainder of 1998.

C.Proposed 1999 General Programmes Budget

149.The Executive Committee, at its forty-ninth session in October 1998, will be asked to approve a 1999 General Programmes target of $ 413,000,000, as set out in Table II.5 (column 4). This amount includes $ 25 million for the Emergency Fund, $ 20 million for the Voluntary Repatriation Fund and $ 33.4 million for the Programme Reserve, which is the equivalent of 10 per cent of programmed activities. It will be noted that the 1999 target being presented to the Executive Committee for approval is lower than that approved by the Executive Committee in 1997. The reason for the reduction is resource considerations.

D.Programme Reserve

150.The purposes of the Programme Reserve are set out in the Financial Rules for Voluntary Funds administered by the High Commissioner for Refugees (A/AC/96/503/Rev.6, art. 6.14 - 6.16).

151.The allocations made from the Programme Reserve, through 31 May 1998, are set out in Table II.6. An update of Table II.6 will be provided at the time of the thirteenth meeting of the Standing Committee.

152.For 1999, the Programme Reserve is proposed at a level of 10 per cent of programmed activities under the initial proposed 1999 General Programmes budget, that is, at $ 33.4 million. It will be recalled that the Financial Rules (art. 6.14) allow the High Commissioner to propose a programme reserve in the range of 10 to 15 per cent of programmed activities.

153.Following the decision of the Executive Committee in 1995 on Budget Structure and Governance (A/AC.96/860, paragraph 22), the Financial Rules (art. 6.15 (d)) have been amended to allow the Programme Reserve to be used, as from 1996, for refugee situations being funded, for various reasons, under Special Programmes, provided that the total of all such allocations do not exceed one third of the Programme Reserve in a given year. To date in 1998, recourse has been made to this provision for the following Special Programmes:the Democratic Republic of the Congo (Rwandan and Burundi refugees):$ 300,000; Rwanda (Burundi and Congolese refugees):$ 500,000; the United Republic of Tanzania (Burundi and Congolese refugees):$ 5 million; Uganda (Symposium on Great Lakes Refugees):$ 200,000.

E.Voluntary Repatriation Fund

154.The purposes of the Voluntary Repatriation Fund are set out in the Financial Rules for Voluntary Funds administered by the High Commissioner for Refugees (A/AC/96/503/Rev.6, art. 6.9 - 6.13). The approved level of the Fund for 1998 is $ 20.0 million. The uses made of the Fund, through 31 May 1998, are set out in Table II.7. An update of this Table will be provided at the time of the thirteenth meeting of the Standing Committee. Information on activities related to the various voluntary repatriations referred to in Table II.7 may be found in the respective Regional Updates (see paragraph 2 for a listing) presented to the Standing Committee in the course of 1998.

155.In accordance with the decision of the Executive Committee in 1995 on Budget Structure and Governance (A/AC.96/860, paragraph 22), the Financial Rules (art. 6.11) have been amended to allow the level of the Voluntary Repatriation Fund for a given year to be set between $ 20 million and 10 per cent of the budgetary estimates for voluntary repatriation for the previous year. The proposed level of the Fund for 1999 is $ 20 million.