UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGANIZATION EXECUTIVE BOARD. Hundred and seventy-fourth session

Transcription

1 174 EX/FA/EG PARIS, 5 April 2006 Original: English/French UNITED NATIONS EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGANIZATION EXECUTIVE BOARD Hundred and seventy-fourth session REPORT OF THE GROUP OF EXPERTS ON FINANCIAL AND ADMINISTRATIVE MATTERS (This document is also available on the Executive Board website along with other documents for this session of the Board)

2 174 EX/FA/EG INTRODUCTION 1. The Group of Experts on Financial and Administrative Matters of the Executive Board met from 29 to 31 March The Group of Experts was composed of the following 12 members: Mr Fatih Bouayad-Agha (Algeria), Mr Carlos Eduardo Meza Guarnizo (Colombia), Ms Bhaswati Mukherjee (India), Mr Ryuhei Hosoya (Japan), Mr Abdellatif Bennani (Morocco), Ms Trudie Amulungu (Namibia), Mr Sergey Khalizov (Russian Federation), Ms Mutryce A. Williams (Saint Kitts and Nevis), Ms Marjutka Hafner (Slovenia), Mr Phillip Benade (South Africa), Ms Victoria Harris (United Kingdom of Great Britain and Northern Ireland) and Ms Lisa Spratt (United States of America). 3. Mr Olabiyi Yai (Benin), Chairperson of the Finance and Administrative Commission, opened the meeting and recalled the mandate of the Group. Mr Zhang Xinsheng, Chairperson of the Executive Board addressed the introductory session. Mr Marcio Barbosa, Deputy Director-General represented the Director-General. 4. The Group of Experts proceeded with the election of its Chairperson. Mr Abdellatif Bennani (Morocco) was elected by acclamation. 5. During its work, the Group of Experts was assisted by the representative of the Director- General and other members of the Secretariat who provided the relevant additional information requested. The Group of Experts also benefited from the presence of the representative of the External Auditor who provided all clarifications on the Report by the External Auditor on the performance audits undertaken in the biennium. They also welcomed the participation of the Member States who submitted items to the Executive Board for consideration. The Group thanks all the participants who efficiently contributed to the work of this session. 6. The Group of Experts considered all items on the draft provisional agenda of the Finance and Administrative Commission of the Executive Board at its 174th session. Item Title and document 3 Joint report by the Director-General on the implementation of the programme and budget (32 C/5), and on results achieved in the previous biennium (Draft 34 C/3) (174 EX/4 Draft 34 C/3, 174 EX/4 Add., 174 EX/4 Add. 2 and 174 EX/INF.8) (Administrative and financial aspects) 4 Report by the Director-General on the follow-up of decisions and resolutions adopted by the Executive Board and the General Conference at their previous sessions (174 EX/5, 174 EX/5 Add. Rev. and 174 EX/INF.8) (Administrative and financial aspects) 5 Report by the Director-General on the reform process Part I: Report on the implementation of the staff policy reform, Part II: Progress report on the implementation of the integrated management information system since April 2005 (174 EX/6 Part I and Addenda and Part II, and 174 EX/INF.8) 9 Report by the Director-General on the financial implications of creating and implementing a South-South cooperation programme in education (174 EX/10 and Corr.) (Administrative and financial aspects)

3 174 EX/FA/EG page 2 10 Proposal for the establishment of the regional centre on urban water management for Latin America and the Caribbean in Cali, Colombia, under the auspices of UNESCO (174 EX/12) (Administrative and financial aspects) 14 Report by the Director-General on progress in the development of a cross-sectoral capacity-building programme (174 EX/16) (Administrative and financial aspects) 18 Biennial evaluation report on the activities and results of all UNESCO decentralized bodies (174 EX/20) (Administrative and financial aspects) 19 Report by the Director-General on the reorientation of the UNESCO Office in Brasilia (174 EX/21 and Corr. in Spanish, Russian, Arabic and Chinese only) (Administrative and financial aspects) 23 Report by the Director-General on the budget adjustments to the approved appropriation for arising from donations and special contributions received (174 EX/24) 24 Report by the Director-General on budget adjustments authorized within the Appropriation Resolution for (174 EX/25) 25 Establishment of a currency exchange reserve account for the revaluation of the renovation loan submitted in accordance with Article 6.6 of UNESCO s Financial Regulations (174 EX/26) 26 Report by the External Auditor on the performance audits undertaken in the biennium (174 EX/27 and 174 EX/INF.4 (Extrabudgetary activities)) (Administrative and financial aspects) 27 Annual Report (2005) by the International Civil Service Commission (ICSC): Report by the Director-General (174 EX/28) 28 Comments by the Director-General on the implementation of the Internal Oversight Service (IOS) Strategy in : Annual Report 2005 (174 EX/29) (Administrative and financial aspects) 29 Report by the Director-General, in cooperation with the Headquarters Committee, on managing the UNESCO complex (174 EX/30) 33 Reports by the Joint Inspection Unit (JIU) of interest to UNESCO and the status of implementation of approved/accepted recommendations of JIU reports (174 EX/33) (Administrative and financial aspects) 34 Report by the Director-General on the involvement of National Commissions for UNESCO in the decentralization process (174 EX/34) (Administrative and financial aspects) 40 Convening of an International Conference on Education in Geneva, Switzerland, by the International Bureau of Education (IBE) in 2008 (174 EX/18 Rev. and 174 EX/INF.11) (Administrative and financial aspects)

4 174 EX/FA/EG page 3 41 Follow-up to the Jakarta Declaration adopted at the International Conference (December 2005) on the Right to Basic Education as a Fundamental Human Right and the Legal Framework for its Financing (174 EX/37 Rev. and 174 EX/INF.11) (Administrative and financial aspects) 44 Follow-up to the First World Congress on Literacy (Havana, Cuba, 2005) and in particular the results of the evaluation of the effectiveness of the literacy method Yo sí puedo (174 EX/40 and 174 EX/INF.11) (Administrative and financial aspects) 45 Preparation of a draft recommendation on the definition and recognition of the profession of conference interpreter (174 EX/41 and 174 EX/INF.11) (Administrative and financial aspects) 7. During the discussions observers from the following Member States took the floor: Benin, Brazil, Italy and Nigeria. 8. The Group expressed its appreciation to the secretariat of the Finance and Administrative Commission, Ms Christine Gossa, Mr Agapito Mba-Mokuy, Mr Sameer Pise, Mr Yvan Zakaria, Ms Janet Boulmer and Ms Dominique Michet, who efficiently assisted the Group in its work. Items 14 and The Group of Experts decided to pass the following items to the Finance and Administrative Commission without any debate, considering that they either do not give rise to financial or administrative implications for UNESCO or that these implications did not call for a discussion by the Group, given its technical mandate, at this session: Item Title and document 14 Report by the Director-General on progress in the development of a cross-sectoral capacity-building programme (174 EX/16) (Administrative and financial aspects) 44 Follow-up to the First World Congress on Literacy (Havana, Cuba, 2005) and in particular the results of the evaluation of the effectiveness of the literacy method Yo sí puedo (174 EX/40 and 174 EX/INF.11) (Administrative and financial aspects) 3. Joint report by the Director-General on the implementation of the programme and budget (32 C/5), and on results achieved in the previous biennium (draft 34 C/3) (174 EX/4 Draft 34 C/3, 174 EX/4 Add., 174 EX/4 Add. 2 and 174 EX/INF.8) (Administrative and financial aspects) 10. The representative of the Director-General introduced the item and the background documents. It was pointed out that the production of a joint 174 EX/4 Draft 34 C/3 document by IOS and BSP, instead of two separate reports constituted a breakthrough for UNESCO. This was part of the ongoing process of strengthening the report of the Director-General on the performance of the programme in the previous biennium and was meant to assist policy decision, in particular relating to the preparation of the next C/4 and C/5 documents of the Organization. The document also shows the need to continue efforts undertaken in the area of results-based management (RBM) training and the reinforcement of monitoring of the programme throughout the biennium.

5 174 EX/FA/EG page There was unanimous agreement that the new format constituted a major improvement in terms of readability, user-friendliness and conciseness of the information contained. Members emphasized that because of its high informational quality, the joint report could and should be used as a key reference document in the upcoming consultations on the C/4 and C/5 documents. Efforts made to identify Challenges under each subprogramme were highly appreciated, and it was recommended that this practice be continued and systematized in the future. Members further emphasized the importance of including, as foreseen in the document, budgetary and financial information, as well as a Management Chart for Programme Execution in in the final version of the joint report that was to be issued at the earliest possible opportunity to inform the C/4 and C/5 consultation process. 12. The following draft decision proposed in paragraph 4 of document 174 EX/4 Draft 34 C/3 was adopted without modification. The Executive Board, 1. Having examined the joint report 174 EX/4 Draft 34 C/3, 2. Recognizing that document 174 EX/4 Draft 34 C/3 is part of the ongoing strengthening of the Report of the Director-General on the performance of the programme in previous biennia, 3. Welcoming the quick response by the Director-General to 33 C/Resolution 92, in particular recommendation 2, and his efforts to align the previously separate statutory reports C/3 and EX/4 at the end of the biennium, 4. Noting that document 174 EX/4 Draft 34 C/3 captures salient parameters for assessing the programme performance of the Organization and that the process adopted has highlighted the scope for further improvements of the C/3 document as a governance tool, 5. Invites the Director-General to use document 174 EX/4 Draft 34 C/3 in preparation for future key programming documents of the Organization, specifically the next Programme and Budget (34 C/5), and the next Medium-Term Strategy (34 C/4); 6. Agrees to report to the General Conference raising pertinent issues arising from the outcome of the dialogue on the execution of the programme and budget for (32 C/5). 4. Report by the Director-General on the follow-up of decisions and resolutions adopted by the Executive Board and the General Conference at their previous sessions (174 EX/5, 174 EX/5 Add. Rev. and 174 EX/INF.8) (Administrative and financial aspects) 13. The item covered two issues: a report on the operating costs of the General Conference and of the Executive Board incurred in by item of expenditure, and a timetable for the preparation of the Draft Medium-Term Strategy for (34 C/4) and the Draft Programme and Budget for (34 C/5). 14. With regard to the operating costs of the General Conference and the Executive Board, the representative of the Director-General clarified at the outset that the figures presented in the document were provisional as they were extracted before the closure of the accounts. Nonetheless a strong concern was expressed on the failure in making clear cost reduction particularly in light of the establishment of the Working Group on the three organs whose mandate

6 174 EX/FA/EG page 5 included dealing with this issue. It was stressed that the Organization should pursue further rationalization especially with regard to the costs of documentation by, for example, adopting a more serious recycling policy. The representative of the Director-General informed the members of the Group on the efforts made by the Secretariat to reduce the costs in question but also expressed the need for Member States to cooperate towards reducing the volume of working documents. 15. Questions were raised on the expenditure for the Youth Forum and for official missions of the President of the General Conference. The representative of the Director-General explained that expenditure shown for the Youth Forum pertained only to the costs of organizing the conference and that the expenditure for official missions of the President of the General Conference reflected his more effective pursuance of duties. 16. A member highlighted the difference in presentation format between the expenditure tables for the General Conference and for the Executive Board. The representative of the Director-General acknowledged this fact and informed the members that efforts would be made in adopting a more unified format for the future sessions. 17. With regard to the issues concerning the timetable for the preparation of the Draft Medium- Term Strategy for (34 C/4) and the Draft Programme and Budget for (34 C/5), a remark was made concerning the delay in the dispatch of the questionnaire for documents 34 C/4 and 34 C/5 and the discussion document for global consultation on the long-term future role of UNESCO, since both are essential background documents for the upcoming regional consultations. According to the timetable presented in document 174 EX/5 Add. Rev., these documents were scheduled for end-february to early March The representative of the Director-General explained that the delay was unfortunately due to the internal consultation process which had taken longer than expected, mainly in relation to the reform of the Education Sector. The Group was informed that an updated timetable would be presented to the Executive Board during this session. 18. The Group did not have any draft decision on this item to propose to the Finance and Administrative Commission, but took note of the information presented in the documents. 5. Report by the Director-General on the reform process Part I: Report on the implementation of the staff policy reform, Part II: Progress report on the implementation of the integrated management information system since April 2005 (174 EX/6 and Addenda and 174 EX/INF.8) Part I Staff Policy 19. The representative of the Director-General introduced this item. She gave an overall update of the staffing situation in and summarized the main results achieved in the implementation of the human resource policy framework since the last session of the Executive Board in April The members of the Group of Experts welcomed the information provided and requested further information on issues such as rotation, training, reclassifications, recruitment, performance assessment, and gender balance. Specific questions included those related to inter-agency movements, staff distribution ratio between Headquarters and field offices, promotion trends, geographical distribution and gender balance, including for higher positions, UNESCO s policy in dealing with under-performance by staff and the action being undertaken by the Secretariat to develop competency profiles. Several Members also noted the increasing trend of the training budget ($6 million in document 33 C/5) and inquired about language training particularly for staff in field offices, the purpose of the training undertaken and measures being undertaken by the

7 174 EX/FA/EG page 6 Secretariat to assess the effectiveness of the training provided. Questions were raised concerning the efficiency of the training language in the six official languages of the Organization particularly regarding the two languages of the Secretariat. Concerning rotation policy, a member of the Expert Group questioned whether this policy included movement of staff between UNESCO and other organizations of the United Nations system. 21. In her reply to the members of the Group, the representative of the Director-General indicated that inter-agency mobility was encouraged in the Secretariat and that a certain number of staff movements to and from UNESCO were taking place. She acknowledged that staff rotation within UNESCO remained difficult. Other United Nations Organizations/agencies experience similar difficulties. Notwithstanding the challenge for inter-agency rotation of staff, UNESCO has succeeded in rotating some staff. On the Headquarters/field ratio, she mentioned that the situation varies from Sector to Sector. Regarding training, she reiterated its importance which is to ensure that staff skills and knowledge are continuously updated to meet new requirements, in support of UNESCO s programme priorities, such as UNDAF and RBM. The $6 million training budget represents 2.3% of the overall staff costs, which is close to the recognized good practice of an allocation of 3% of staff costs for training. The representative of the Director-General further clarified that the planning, monitoring and evaluation of training initiatives and budget allocation are carried out within a structured and managed process, in which the Learning and Development Commission plays a key role in setting, inter alia, the corporate training priorities and budgetary allocations. She also indicated that an evaluation of each major training programme was undertaken after two years of implementation. Such evaluation was planned for the RBM training in She confirmed that the Secretariat was developing competency profiles for P-1 to P-4 staff (as proposed in the medium- and long-term staffing strategy) to complement the existing competency framework for Senior Managers (P-5 to D-2). Addressing the issue of promotions, the representative of the Director-General explained that the trend was downward during the 1990s. On recruitment, the representative of the Director-General stated that the 50% target of recruits from non-and underrepresented Member States in external recruitment was useful in setting clear objectives for managers for the improvement of geographical distribution, in regions such as the Caribbean. On performance assessment, she described the process for dealing with underperformance introduced by the new policy, including the performance improvement plan to be established in such cases. She acknowledged that there was an imbalance in the number of women directors and that efforts were being made to redress this imbalance. In response to a specific question, she acknowledged that efforts need to be made with regard to the imbalance of women at a senior level from developing countries. 22. The Group of Experts recommended that the Finance and Administrative Commission adopt the following draft decision: The Executive Board, 1. Recalling 171 EX/Decision 5 (I), 2. Having examined document 174 EX/6 (Part I), 3. Takes note of the work accomplished to develop and implement the human resources policy framework; 4. Invites the Director-General to pursue the implementation of the human resources policy framework and to report to it at its 176th session.

8 174 EX/FA/EG page 7 5. Report by the Director-General on the reform process Part I: Report on the implementation of the staff policy reform, Part II: Progress report on the implementation of the integrated management information system since April 2005 (174 EX/6 and 174 EX/INF.8) Part II New management tools 23. In his introduction, the representative of the Director-General updated the members of the Group on the recast of SISTER, the rollout of FABS to field offices and institutes and the launching of the STEPS project for a new information system for human resources management. He highlighted the fact that the Secretariat was committed to putting in place STEPS (System To Enhance Personnel Services) as soon as possible, but due to budgetary constraints, this work may not be completed in the current biennium. 24. During the ensuing discussion, experts asked for clarifications on specific aspects or parts of the new management tools programme. One expert inquired about the specificities of the UNESCO institutes that required specific FABS solution, the identity of the implementation partner for the institutes FABS rollout project and the cost of the latter. In the same context, another expert asked how the institutes budget cycle differed from the rest of UNESCO and when smaller institutes would join IIEP, IBE and UIS in FABS. One expert wanted to know if UNESCO, having invested important amounts in new systems, was capable of updating them and adapting them to changing requirements. One member of the Group asked whether the World Heritage Centre (WHC) would be using the new SISTER. Finally, the Secretariat was requested to comment on Table 2 in the annex, showing a contribution of $2.1 million to FABS from staff costs saving during the biennium. In particular, the expert inquired about other staff cost savings resulting from the introduction of the new systems. 25. The representative of the Director-General explained that, indeed, UNESCO institutes had a number of specificities, including their functional autonomy, their own governing bodies and hence specific reporting requirements, and an annual budget cycle as apposed to a biennial budget cycle for the rest of the Organization. He informed the Group that the implementation partner for the FABS rollout to the first three institutes was the international consulting company Accenture, the contract with which cost 350,000, and that smaller institutes would be included in FABS in the course of the biennium but not necessarily at the same time or in the same way. Some of them would share the solution deployed in IIEP, IBE and UIS, while others may use the FABS field office solution. 26. He further explained that in the implementation of the new systems, the requirement for their upgrading and adaptation to changing requirements was duly taken into consideration and that the actual modalities of such adaptation depended on the nature of those requirements and their implications in terms of budget and resources. The Group was informed that the new SISTER was being introduced in phases: it was already used for the Participation Programme, would be available for the regular programme by the end of April 2006 and would be completed with the extrabudgetary part by the end of the year. WHC, being part of the Secretariat and its activities being part of UNESCO s programme and budget, would naturally use the new SISTER. 27. The representative of the Director-General further stated that the Secretariat was taking very seriously the preoccupations expressed by some Member States with regard to proper management of extrabudgetary projects and reassured the Group that every effort was being made to prove the Secretariat s capacity to ensure such management. 28. With regard to staff cost savings, the representative of the Director-General explained that the amount of $2.1 million mentioned in Table 2 was indeed transferred from the regular budget to the

9 174 EX/FA/EG page 8 special account for FABS in order to accelerate its implementation. The Organization did make other cost savings but those were not allocated to the project. 29. In conclusion, the representative of the Director-General stressed the importance of receiving voluntary contributions for the new HR system. Referring to the generous contributions received in the past for the financial part of the new system, he expressed his strong hope that Member States would be able to contribute a relatively small amount ($1.5-$2 million) still missing for the full implementation of the human resources part. 30. The Group of Experts recommended that the Finance and Administrative Commission adopt the following draft decision: The Executive Board, 1. Recalling 171 EX/Decision 5 (II), 2. Having examined document 174 EX/6 Part II, 3. Takes note of the progress made in the implementation of the new integrated management information system, covering programming and budgeting (SISTER), and finance and accounting (FABS), as well as of the launching of the STEPS project for the implementation of the human resources management component; 4. Further takes note, that the funds identified so far under the regular programme may be insufficient to complete the implementation of the HR component in and that the latter will therefore be introduced in phases, with priority given to the implementation of payroll; 5. Echoes the appeal to the Member States launched by the General Conference at its 33rd session for voluntary contributions (33 C/Resolution 75) so as to enable the Secretariat to complete the introduction of the new HR system as soon as possible; 6. Invites the Director-General to pursue the implementation of the integrated management information system, and to submit to it at its 176th session a progress report thereon. 9. Report by the Director-General on the financial implications of creating and implementing a South-South cooperation programme in education (174 EX/10 and Corr.) (Administrative and financial aspects) 31. The item was introduced by the representative of the Director-General, who underlined the importance of South-South Cooperation as a key modality of development and recalled the resolution (33 C/Resolution 7) of the last General Conference to study the financial implications of creating a South-South Cooperation (SSC) programme/fund in Education. It was recalled that at the E-9 Ministerial Review Meetings in Beijing in 2001, in Cairo in 2003 and in Mexico City in 2006, UNESCO had been invited to provide an umbrella under which better South-South collaboration may thrive among E-9 countries. Following the EFA High-Level Meeting in Beijing, UNESCO had considered a new approach to seriously engage the E-9 countries as strategic partners to achieve the EFA goals and for South-South Cooperation. 32. UNESCO therefore proposes to strengthen its existing role as facilitator, innovator and catalyst for South-South Cooperation in education by launching a new programme/fund for SSC in education closely linked to the E-9 initiative that is financed via voluntary contributions, expected mostly but not exclusively from the South. The proposal has been developed in close cooperation

10 174 EX/FA/EG page 9 with the Group of 77 and China and in line with the Doha Declaration of the Second South summit of the Group of 77 and China (June 2005). To fulfil this SSC responsibility, UNESCO estimates the additional financial implication covering personnel and activities for the biennium at $800, One member presented the background of the new version of the draft decision co-sponsored by the E-9 countries (Egypt, Bangladesh, Brazil, Nigeria, India, Pakistan, Mexico, China and Indonesia). The member pointed out that at Monterrey, Education Ministers of E-9 countries had clearly indicated that the proposal for a South-South Cooperation Fund and programme should be funded from both the regular programme and extrabudgetary funding. This was not reflected in the Secretariat draft decision. Hence, this element along with important proposals for triangular cooperation (South-South-North) was included in the E-9 draft decision. 34. The representative of the Director-General reaffirmed the Secretariat s firm commitment to South-South Cooperation in Education but explained that unless the Executive Board wishes to modify document 33 C/5 Approved, funding could not be taken from the regular programme. This position had been explained also at the E-9 meeting in Monterrey. The outcome of this meeting was considered key to the Global Action Plan. 35. One member also recalled that UNESCO was already engaged in South-South cooperation and suggested the use of existing modalities, such as NEPAD, instead of the creation of a new secretariat. Additional voluntary contributions could be sought to strengthen the existing modalities. 36. A few members expressed concern about accepting modifications requested by the E-9 to modify an approved C/5 document so early in the biennium and recalled that the C/5 document had only been recently adopted by all Member States. It was proposed to postpone the discussion of this point to the Finance and Administrative Commission, which could examine both draft decisions. 37. One member inquired whether the draft decision of E-9 intended to establish a separate unit or could it accept an existing unit. The representative of E-9 confirmed that the latter was possible. 38. The representative of the Director-General confirmed that the E-9 draft decision did not present any particular difficulty to the Director-General. As such, he suggested that paragraph 9 which invites the Director-General to define the unit within the Secretariat could be modified. The representative of E-9 confirmed that there would be no difficulty in accepting this proposal. 39. It was finally decided to examine the new draft decision in the Finance and Administrative Commission, putting paragraph 9, which invites the Director-General to define the unit, in square brackets. 40. The representative of the Director-General had indicated that he would suggest a new formulation for paragraph 9 which he did during the reading of the report as follows: Invites the Director-General to adopt the measures for the coordination and administering this programme/fund in order to facilitate the work of coordination with EFA partners and in particular with the E-9 rotating secretariat. 41. The Group recommended that the Finance and Administrative Commission adopt the following draft decision as amended: The Executive Board, 1. Recalling 33 C/Resolution 7, 2. Having examined document 174 EX/10,

11 174 EX/FA/EG page Taking note of the Doha Declaration of the Second South Summit of the Group of 77 and China, held in Qatar from the 12 to 16 June 2005, 4. Taking note of the Monterrey Declaration of the E-9 countries which affirms the crucial importance of South-South cooperation in pursuit of EFA and emphasizes the need to move from intention to action in making the EFA E-9 partnership a force for leadership and innovation in EFA, 5. Taking into consideration the proposal of the Ministers of education of the E-9 that UNESCO establish a unit within the Secretariat to play a coordinating role in all matters of South-South cooperation, 6. Takes note of UNESCO s considerable ongoing and past activities in the field of education contributing to South-South cooperation; 7. Encourages Member States to explore possibilities for bilateral and multilateral South- South cooperation initiatives in the field of education, as well as to stimulate the development of triangular modalities of cooperation (North-South-South), in order to meet the objectives of the Dakar Framework of Action on Education for All; 8. Requests the Director-General to strengthen UNESCO s existing role of facilitator, innovator and catalyst for South-South cooperation in education by launching a new programme/fund for South-South cooperation in education closely linked to the E-9 Initiative and financed via voluntary contributions; [9. Invites the Director-General to define the unit within the Secretariat, that with priority, would be responsible for coordinating and administering this programme/fund and would work in close coordination with the EFA partners and in particular with the E-9 rotating Secretariat;] OR [9. Invites the Director-General to adopt the measures for the coordination and administering this programme/fund in order to facilitate the work of coordination with EFA partners and in particular with the E-9 rotating secretariat.] 10. Encourages Member States to provide voluntary contributions to the establishment of this programme/fund. 11. Invites the Director-General to submit to the Executive Board at its 175th session a Report on progress made. 10. Proposal for the establishment of the regional centre on urban water management for Latin America and the Caribbean in Cali, Colombia, under the auspices of UNESCO (174 EX/12) (Administrative and financial aspects) 42. The representative of the Director-General introduced this item by stating that at its 33rd session, the General Conference adopted 33 C/Resolution 33, in which it welcomed the proposal by the Government of the Republic of Colombia to establish the Regional Centre on Urban Water Management for Latin America and the Caribbean in Cali, Colombia, under the auspices of UNESCO and in line with its programme on water management. He further stated that the document contains a complete feasibility study for the Centre and outlines the benefits that the Centre will bring to the Member States. The Centre has the full support of the Government. The

12 174 EX/FA/EG page 11 representative from Colombia stated that his Government is totally committed to this project. There is no financial implication to the Organization. 43. One member emphasized the need to clearly indicate in paragraphs 3 and 4 of the decision that the Centre would serve countries in the Latin America and the Caribbean region, so as to take into account the needs of the entire region. 44. The draft decision was approved as amended. The Executive Board, 1. Recalling 33 C/Resolution 33, 2. Having examined document 174 EX/12 and its Annexes, 3. Welcomes the proposal of the Government of the Colombia to establish the Regional Centre on Urban Water Management for Latin America and the Caribbean in Cali, Colombia under the auspices of UNESCO, which is in line with the existing principles and guidelines for category 2 centres as approved by the General Conference in 33 C/Resolution 90; 4. Approves the establishment of the Regional Centre on Urban Water Management for Latin America and the Caribbean in Cali, Colombia under the auspices of UNESCO, in accordance with the General Conference s resolution 33 C/ Resolution 33; 5. Authorizes the Director-General to conclude the corresponding agreement between UNESCO and the Government of Colombia contained in Annex II to document 174 EX/ Biennial evaluation report on the activities and results of all UNESCO decentralized bodies (174 EX/20) (Administrative and financial aspects) 45. The representative of the Director-General, introducing the document which reported on the evaluations of the eight Major Programme I institutes and centres (Education Sector), emphasized that the report must serve as a tool for the Steering Group on institutes and centres, which had been established by the Director-General. He listed the four most important points of interest to the Finance and Administrative Commission: - the institutes and centres were highly dependent on extrabudgetary funding and agreements with the host States; - the conditions and procedures for decentralization of the Headquarters budget to the institutes and centres must be clarified and improved; - the report noted shortcomings in the supervision of the institutes and centres; - results-based programming, management and monitoring must be strengthened. 46. Seven Member States took part in the discussions. They stressed that the question of the relevance of possible amalgamation between centres and institutes should be examined by the Executive Board. The Group of Experts noted that the economies of scale expected from such operations might be offset by the disengagement of some Member States. The Member States discussed the link between, on the one hand, the institutes and centres dependence on extrabudgetary funding and, on the other hand, the problems of monitoring the use of

13 174 EX/FA/EG page 12 extrabudgetary funds that had already been mentioned when examining documents 174 EX/27 and 174 EX/29. However, the Steering Group was expected to concentrate, as a matter of priority, on the programme matters raised in the report, it being understood that the problem lay in the difficulty and the necessity of obtaining extrabudgetary funds rather than in their management by the institutes and centres. 47. Paragraph 4 of the draft decision has been amended in order to take account of the relevant recommendations made in documents 174 EX/27 and 174 EX/29: The Executive Board, 1. Having examined document 174 EX/20 in the light of documents 174 EX/27 and 174 EX/29 and taking into consideration the biennial evaluation report that has been presented, 2. Taking note of the key issues to be addressed, which were identified by the evaluators, as well as the report of the Director-General on actions taken and to be taken, 3. Invites the Director-General to address in an appropriate manner, after full consultation with the bodies concerned and a timely assessment of the financing which currently underpins their operations, the key issues raised by the evaluators, which will improve the overall performance of institutes and centres; 4. Also invites the Director-General to ensure that work on the institutes and centres is fully in accordance with relevant elements from decisions 174 EX/ and 174 EX/ as well as the recommendations from both IOS and the External Auditor contained in documents 174 EX/27 and 174 EX/29; 5. Welcomes the Director-General s decision to establish a Steering Group on institutes and centres; and 6. Requests the Director-General to report to the Executive Board on progress made by the Steering Group in defining the strategic direction and configuration of institutes and centres, as well as on progress made in the implementation of evaluation recommendations. 19. Report by the Director-General on the reorientation of the UNESCO Office in Brasilia (174 EX/21 and Corr. in Spanish, Russian, Arabic and Chinese only) (Administrative and financial aspects) 48. In her introduction to document 174 EX/21 (item 19), the representative of the Director- General expressed her gratitude to the Acting Director of the Brasilia Office, to the Special Team assisting her and to all the staff of the Office for the exceptional work accomplished in the comprehensive review of the Office s work with a view to the reorientation of its activities. She added that such significant results had been achieved in such a short time, owing to a concerted effort and the personal involvement of the staff of the central services and programme sectors, and she gave specific examples of such action. 49. The Group of Experts expressed that the Brazilian experience is an example of UNESCO decentralization. Some of them outlined the innovative approaches promoted by the field office, which have accomplished major achievements and could be replicated in other field offices.

14 174 EX/FA/EG page They also expressed their concern at the problems raised in the report, but considered that the case of Brasilia was the reflection of a general problem arising from the lack of a UNESCO strategy for the management of extrabudgetary projects and from the need to strengthen accountability both at Headquarters and in the field offices and the general oversight environment. They nevertheless expressed appreciation for the efforts undertaken to reorientate the operations of the UNESCO Office in Brasilia, for the clarity and frankness of the document and for the explanations provided by the representative of the Director-General. 51. After the representative of the External Auditor had commented on the information concerning the Brasilia Office contained in the report on the performance audits undertaken in the biennium (174 EX/27) (item 26), the Director of the Internal Oversight Service (IOS) added that after the audit and evaluation of the Brasilia Office undertaken in 2001, the Administration had taken a number of measures and had acted to implement the recommendations. Progress had been recorded and acknowledged by the representative of the External Auditor in 2003, but some recommendations had not been followed up. 52. Some members asked the Legal Adviser about the court case referred in the report. The Legal Adviser informed that there is a civil action alleging acts of administrative impropriety that seeks application of sanction against high-ranking former officials of a public agency in Brazil, as well as UNESCO and its former representative in the country, for allegedly causing extensive losses to the public coffers of Brazil. The civil action has been suspended, pending a determination by Brazil s Supreme Court as to whether UNESCO has immunity from legal process in this case. Another member asked if it was not advisable in that context to terminate immediately the current projects that lay outside the Organization s field of competence. The Legal Adviser stated that the Legal Office advised that any projects that would not comply with the Brazilian legislation be terminated expeditiously. The representative of the Director-General stated that a transitional strategy was necessary so that the project activities in question could be transferred gradually to the authorities concerned, without harming their nationwide programmes. 53. Some members expressed concerns about the accounts management of the funds. In this connection, the Comptroller stated that although there were some weaknesses in internal auditing it was not that bad and had, in any event, improved since 2001, following the implementation of most of the recommendations of the first audit. He reassured them by announcing that other measures were planned with a view to strengthening it. 54. The Group took the view that the questions raised by the report on the Brasilia Office were linked to the general matters concerning the management of extrabudgetary projects, particularly in the context of decentralization, which were contained in two other reports: the Report by the External Auditor on the performance audits undertaken in the biennium (174 EX/27) (item 26) and the Comments by the Director-General on the implementation of the Internal Oversight Service (IOS) Strategy in : Annual Report 2005 (174 EX/29) (item 28). Consequently, they considered that the examination of the draft decision on item 19 should be deferred so that it could be considered in the light of the discussions on items 26 and The Group of Experts decided to suspend the debate and reopen it after debating items 26 and 28. The Group agreed on a draft decision, which outlines a number of measures for the reorientation of the Brasilia Office, and request the Director General to implement and monitor his action plan in accordance with the recommendations from both IOS and the External Auditor in the light of the decisions agreed upon in documents 174 EX/27 and 174 EX/ The observer from the Brazilian Delegation expressed some concerns which, he indicated, will be taken up in the FA commission.

15 174 EX/FA/EG page The Group recommended that the Finance and Administrative Commission adopt the following draft decision as amended: The Executive Board, 1. Having considered document 174 EX/21, in the light of documents 174 EX/27, 174 EX/29 and 174 EX/INF.4, 2. Noting the scale and importance of the operation managed by the UNESCO Brasilia Office, 3. Concerned with the administrative, financial and planning weaknesses of the management of the extrabudgetary activities by the UNESCO Brasilia Office and in particular with the inadequacy of internal controls and communications with Headquarters, 4. Recalls the importance for activities at field level to be in line with UNESCO s objectives defined in the C/4 and C/5 documents; 5. Takes note of the actions taken and planned by the Director-General to reorient the operations of the UNESCO Office in Brasilia and to remedy the deficiencies in the management of the office and monitor the scope of the operations; 6. Invites the Director-General to continue to implement his action plan for the reorientation of the UNESCO Office in Brasilia in accordance with decisions 174 EX/ and 174 EX/ as well as the recommendations from both IOS and the External Auditor and to report back to its 175th session; 7. Requests the Director-General to ensure that proposals for UNESCO s activities in Brazil are consistent with an overall strategy for decentralization, as part of the rational delivery of programmes against UNESCO s priority objectives; and that lessons learned from the experience in Brasilia should be taken into account in further developing the decentralization strategy; 8. Also requests the Director-General to take full account of the lessons derived from the experience in Brasilia including the specific risks involved with self-benefiting funds when developing the overall strategic vision and action plan called for in decision 174 EX/ paragraph 23. Report by the Director-General on the budget adjustments to the approved appropriation for arising from donations and special contributions received (174 EX/24) 58. The rationale of the document was first explained by the representative of the Director- General as follows: after the Appropriation Resolution is approved by the General Conference, donations can be received by the Organization to be appropriated to the regular programme as additional funds to the regular budget. As required by the Appropriation Resolution of the respective biennium, the Director-General reports on the receipt of these donations and special contributions at each session of the Executive Board and provides a revised Appropriation Table showing how these contributions impact the regular programme budget. In accordance with the Financial Regulations the Executive Board is requested to take note of these different adjustments. 59. A member of the Expert Group requested clarification regarding the procedure used by the Organization when donations and special contributions are received for activities which are not within the Organization s mandate or which do not target a major priority. The representative of the

16 174 EX/FA/EG page 15 Director-General explained that such an eventuality is unlikely as efforts are made during the negotiation process between the donor and the relevant sector/bureau, to refine and adjust the project in order to have synergy with the regular programme. 60. It was also noted that the information contained in this document (174 EX/24) was related to donations added to the regular budget and managed as an integral part of the regular budget, and thus should be distinguished from the issues pertaining to extrabudgetary projects raised in item 26 (174 EX/27 and 174 EX/INF.4). 61. The representative of the Director-General also noted that an effort would be made in future reports to ensure that the description of the purpose of the contributions is clear and complete. 62. The Group suggested to replace the word donors in paragraph 3 of the draft decision with governments in conformity with paragraph 1 of document 174 EX/ In conclusion, the Group decided to recommend to the Finance and Administrative Commission to adopt the draft decision as presented in the document. The Executive Board, 1. Having examined the Director-General s report on donations and special contributions received and appropriated to the regular budget, as well as the between-appropriationline transfers proposed within the budget appropriation, in accordance with the terms of the Appropriation Resolution approved by the General Conference at its 32nd session (32 C/Resolution 85, para. A(b)), document 174 EX/24 and the recommendations of its Finance and Administrative Commission thereon (174 EX/ ), 2. Takes note that the Director-General has, as a consequence of these donations and special contributions, increased the appropriations to the regular budget by a total amount of $1,733,933 as follows: Part II.A - Major Programme I 808,039 Part II.A - Major Programme II 52,567 Part II.A - Major Programme III 142,133 Part II.A - Major Programme IV 196,251 Part II.A - Major Programme V 30,983 Part III - Support for Programme Execution 503,960 (indirect costs for field offices) Total 1,733,933 $ 3. Expresses its appreciation to the donors listed in paragraph 1 of document 174 EX/24; 4. Takes note of the revised Appropriation Table attached in the Annex to the present decision.

17 PART I GENERAL POLICY AND DIRECTION ANNEX Revised Appropriation Table for Appropriation line 32 C/5 Approved 32 C/5 Approved as adjusted (169 EX/Dec.6.2) Proposed appropriations and transfer (170 EX/Dec.7.8) Donation received (172 EX/Dec.3) $ $ $ $ A. Governing bodies 1. General Conference Executive Board Total, Part I.A B. Direction (Including: Directorate; Office of the Director-General; Internal Oversight; International Standards and Legal Affairs) C. Participation in the Joint Machinery of the United Nations System TOTAL, PART I (i) 32 C/5 Approved as adjusted 174 EX/FA/EG page 16 PART II PROGRAMMES AND PROGRAMME RELATED SERVICES A. Programmes Major Programme I - Education I. Personnel II. Activities I.1 Basic education for all I.1.1 Basic education for all: targeting key goals I.1.2 Supporting EFA strategies I.2 Building learning societies I.2.1 Beyond universal primary education I.2.2 Education and globalization UNESCO education institutes UNESCO International Bureau of Education (IBE) UNESCO International Institute for Educational Planning (IIEP) UNESCO Institute for Education (UIE) UNESCO Institute for Information Technologies in Education (IITE) UNESCO International Institute for Capacity-Building in Africa (IICBA) UNESCO International Institute for Higher Education in Latin America and the Caribbean (IESALC) Projects relating to cross-cutting themes* Total, Major Programme I Major Programme II - Natural sciences I. Personnel II. Activities II.1 Science, environment and sustainable development II.1.1 Water interactions: systems at risk and social challenges II.1.2 Ecological sciences: developing stewardship by people for nature II.1.3 Earth sciences: improving the understanding of the solid Earth and enhancing disaster prevention II.1.4 Towards sustainable living in small islands and in costal regions II.1.5 UNESCO Intergovernmental Oceanographic Commission II.2 Capacity-building in science and technology for development II.2.1 Capacity-building in the basic and engineering sciences (85 417) II.2.2 Science and technology policies for sustainable development Projects relating to cross-cutting themes* Total, Major Programme II