Financial situation of the United Nations
The Secretary-General reports on the financial situation of the United Nations twice a year under the agenda item "Improving the financial situation of the United Nations".
General Assembly resolutions
The General Assembly has adopted resolutions on several occasions in response to challenges experienced with the financing situation of the United Nations, titled either Improving the financial situation of the Organization or Current financial crisis and financial emergency of the United Nations.
| General Assembly resolution | Date | ACABQ report | SG report | notes |
|---|---|---|---|---|
| 76/272 | 29 June 2022 | A/76/7/Add.29 | A/76/429 | Proposed further measures to deal with continuing liquidity challenges exacerbated by the COVID-19 pandemic |
| 73/307 | 3 July 2019 | A/73/891 | A/73/809 | Proposed measures under the programme and peacekeeping budgets to address worsening liquidity challenges in the Secretariat |
| 48/220 | 23 December 1993 | A/48/503 and Add.1; A/48/565 and Corr.1 | Consideration of the report of the Independent Advisory Group on United Nations Financing | |
| 47/215 | 23 December 1992 | A/46/765 and A/47/565 | A/46/600, Add.1, Add.2, Add.3, and A/C.5/47.13 | |
| 45/236 A and B | 21 December 1990 | A/45/860 | A/45/830 and A/C.5/45/17 | |
| 44/195 A and B | 21 December 1989 | A/44/873 | A/44/857 and Corr.1 | |
| 43/215 | 21 December 1988 | A/43/932 | ||
| 42/212 | 21 December 1987 | A/42/861 | A/42/841 |
Reports and presentations
The Fifth Committee considers the regular reports of the Secretary-General and receives closed briefings from the Secretariat on the status of contributions under the regular budget and peacekeeping budgets and the cash flow situation of the Secretariat. This biannual briefing takes place early in the main and second resumed sessions. The briefing is followed one week later by general discussion during which delegations have the opportunity to make statements on the financial situation.
| Secretary-General's report | Briefing to the Fifth Committee |
|---|---|
| A/78/524/Add.1 | Briefing by the USG DMSPC, 10 May 2024 Statement and presentation |
| A/78/524 | Briefing by the USG DMSPC, 9 October 2023 Statement and presentation |
| A/77/530/Add.1 | Briefing by the ASG Controller, 4 May 2023 Statement and presentation |
| A/77/530 | Briefing by the USG DMSPC, 13 October 2022 Statement and presentation |
| A/76/435/Add.1 | Briefing by the USG DMSPC, 5 May 2022 Statement and presentation |
| A/76/435 | Briefing by the USG DMSPC, 19 October 2021 Statement and presentation |
| A/75/387/Add.1 | Briefing by the USG DMSPC, 7 May 2021 Statement and presentation |
| A/75/387 | Briefing by the USG DMSPC, 8 October 2020 Statement and presentation |
| A/74/501/Add.1 | Briefing by the USG DMSPC, 7 May 2020 Statement and presentation |
| A/74/501 | Briefing by the USG DMSPC, 11 October 2019 Statement and presentation |
| A/73/443/Add.1[1] | Briefing by the USG DMSPC, 7 May 2019 Statement and Presentation |
| A/73/443 | Briefing by the USG DM, 16 October 2018: Statement Presentation |
| A/72/522/Add.1 | Briefing by the USG DM, 11 May 2018: Statement Presentation |
| A/72/522 | Briefing by the USG DM, 9 October 2017: Statement Presentation Addendum |
| A/71/440/Add.1 | Briefing by the USG DM, 3 May 2017: Statement Presentation |
| A/71/440 | Briefing by the Controller, 5 October 2016: Statement Presentation |
| A/70/443/Add.1 | Briefing by the USG DM, 4 May 2016: Statement Presentation |
| A/70/443 | Briefing by the USG DM, 15 October 2015: Statement Presentation |
| A/69/520/Add.1 and Corr.1 | Briefing by the USG DM, 6 May 2015: Statement Presentation |
| A/69/520 | Briefing by the USG DM, 9 October 2014: Statement Presentation |
| A/68/524/Add.1 | Briefing by the USG DM, 6 May 2014: Statement Presentation |
| A/68/524 | Briefing by the USG DM, 9 October 2013: Statement Presentation |
| A/67/522/Add.1 | Briefing by the USG DM, 10 May 2013: Statement Presentation |
| A/67/522 | Briefing by the USG DM, 11 October 2012: Statement Presentation |
| A/66/521/Add.1 | Briefing by the USG DM, 14 May 2012: Statement Presentation |
| A/66/521 | Briefing by the USG DM, 11 October 2011: Statement Presentation |
| A/65/519/Add.1 | Briefing by the USG DM, 12 May 2011: Statement Presentation |
| A/65/519 | Briefing by the USG DM, 12 October 2010: Statement Presentation |
| A/65/497/Add.1 | Briefing by the USG DM, 7 May 2010: Statement Presentation |
| A/64/497 | Briefing by the USG DM, 16 October 2009: Presentation |
| A/63/514/Add.1 | Briefing by the USG DM, 15 May 2009: Presentation |
| A/63/514 | Briefing by the USG DM, 27 October 2008: Presentation |
| A/62/539/Add.1 | Briefing by the Controller, 9 May 2008: Presentation |
History
In 1946, the General Assembly established a working capital fund as a mechanism to provide a cash reserve to tide the Organization over temporary periods of cash shortage pending the receipt of assessed contributions.
However, available mechanisms such as the working capital fund have not always been sufficient to meet liquidity requirements of the Secretariat. As such, exceptional measures have on a number of occasions had to be taken to address cash shortfalls resulting from unpaid assessments. Some of the most notable instances are described below.
1960s
Disagreements over the legal obligation to finance peacekeeping missions prompted the General Assembly take a number of measures, including:
- Adoption of resolution 1731 (XVI) requesting an advisory opinion from the International Court of Justice on the interpretation of Article 17 of the United Nations Charter (see Certain Expenses of the United Nations);
- Adoption of resolution 2006(XIX) establishing the Special Committee on Peacekeeping Operations, with a mandate "to undertake as soon as possible a comprehensive review of the whole question of peace-keeping operations in all their aspects, including ways of overcoming the present financial difficulties of the Organization"[2];
- Adoption of resolution 2049(XX) establishing the Ad Hoc Committee of Experts to Examine the Finances of the United Nations and the Specialized Agencies[3]; and
- Creation of a special account to record voluntary contributions pursuant to paragraph 4 of resolution 2053A (XX)[4].
1970s
By 1970, a dire cash liquidity situation prompted the General Assembly to take further measures, including:
- Initiative of the President of the General Assembly for the 25th session to convene informal discussions with the four major contributors[5];
- Establishment of a Special Committee on the Financial Situation of the United Nations[6], as proposed by the President of the General Assembly for the 26th session[7];
- Adoption of resolution 3049A (XXVII) establishing a special account—to be merged with the special account previously established—to address, through voluntary contributions, past financial difficulties and the short-term deficit, on the basis ofthe report of the Special Committee[8]; and
- Adoption of 3538(XXX) establishing the Negotiating Committee on the Financial Emergency of the United Nations[9], which was unable to reach agreement on any recommendations[10].
1980s
In the 1980s, the United States, under the Reagan Administration, began the practice of "deferred payment" in which the contributions for a particular calendar year would be met by funds requested for following fiscal year.[11] In addition, the adoption of U.S. legislation popularly known as the Kassebaum-Solomon Amendment in the mid-1980s required the reduction of the United States contribution to the regular budget to be reduced to 20 per cent unless major financial contributors such as the United States were afforded a greater say in the budget process. [12].
The Secretary-General adopted a number of measures to address the expected cash shortfall, including a hiring freeze[13]; In parallel, the General Assembly adopted resolution 40/237 of 18 December 1985 establishing the Group of High-Level Intergovernmental Experts (popularly known as the Group of 18), which issued a report (A/41/49) which led to the adoption of resolution 41/213[14], which in turn led to the introduction of consensus-based decision-making in the Fifth Committee[15].
1990s
In the mid-1990s, late payment of assessments and the imposition of a 25% cap by Congress in 1994 on U.S. contributions to peacekeeping operations[16] contributed to a precarious financial situation, with $3.7 billion in unpaid assessments in 1994. This prompted the Secretary-General to take a number of unilateral measures, including another hiring freeze, suspension of new consultancies, and limitations to overtime and travel[17].
Following an appeal by the Secretary-General to the General Assembly[18], the General Assembly adopted resolution 49/143 establishing a High-level Open-ended Working Group on the Financial Situation of the United Nations[19]. The General Assembly also adopted resolution 49/233 on 23 December 1994 which, inter alia, changed the process for consideration of peacekeeping budgets and established the current 1 July-30 June peacekeeping financial period.
2010s
In the late 2010s, deepening liquidity problems and cash constraints prompted the Secretary-General to submit proposals to the General Assembly to address the challenges faced in both the regular and peacekeeping budgets in an additional report on the financial situation (A/73/809). The General Assembly adopted a number of the peacekeeping-related proposals in its resolution 73/307.
See also
- Article 19
- Peacekeeping financing
- Programme budget
- Scale of assessments
- Peacekeeping scale of assessments
- Financial Situation of the United Nations (from Committee on Contributions website)
References
- ↑ See also A/73/809
- ↑ A/5961 Second report of the Special Committee on Peace-keeping Operations; reached consensus "that the financial difficulties of the Organization should be resolved through voluntary contributions by Member States, with the highly-developed countries making substantial contributions".
- ↑ A/6343 Second report of the Ad Hoc Committee of Experts to Examine the Finances of the United Nations and the Specialized Agencies
- ↑ A/PV.1331 General Assembly, 1331st meeting (19th Session), 1 September 1965, 3 PM
- ↑ A/8497 Letter dated 10 December 1971 from the Permanent Representative of Norway addressed to the Secretary-General
- ↑ A/PV/2031 General Assembly, 2031st meeting (26th Session), 22 December 1971, 10:30 AM
- ↑ A/8635 Note by the President of the General Assembly (18 December 1971)
- ↑ A/8729 Report of the Special Committee on the Financial Situation of the United Nations
- ↑ A/31/37 Report of the Negotiating Committee on the Financial Emergency of the United Nations; this Committee was established in response to the statement of the Secretary-General to the Fifth Committee on 25 September 1975 (A/C.5/1685) and it considered the report of the Secretary-General on financial problems of the United Nations (A/C.5/1730).
- ↑ General Assembly resolution 32/104
- ↑ U.S. Funding to the United Nations System: Overview and Selected Policy Issues (Congressional Research Service report)
- ↑ United Nations Reform: Background and Issues for Congress (Congressional Research Service report)
- ↑ ST/SGB/215, ST/SGB/217 and ST/SGB/222 The Financial Situation of the Organization; see also ST/IC/86/17
- ↑ A/40/PV.121 General Assembly, 40th session, 121st meeting, Wednesday 18 December 1986, 10 AM
- ↑ General Assembly resolution 49/143
- ↑ Section 404 of P.L. 103-236
- ↑ ST/SGB/278 The Financial Situation of the Organization
- ↑ A/49/PV.28 General Assembly, 49th Session, 28th Meeting: Wednesday, 12 October 1994, 10 AM
- ↑ A/50/43 and A/51/43 Report of the High-level Open-ended Working Group on the Financial Situation of the United Nations