I am pleased to present to you the current financial situation of the United Nations. I shall focus on four main financial indicators:

Transcription

1 Check against delivery Financial situation of the United Nations Statement by Jan Beagle, Under-Secretary-General for Management Fifth Committee of the General Assembly at its 72 nd session 11 May 2018 I am pleased to present to you the current financial situation of the United Nations. I shall focus on four main financial indicators: (a) (b) (c) (d) Amounts of assessed contributions Unpaid assessed contributions Available cash Outstanding payments to Member States. The PowerPoint will be made available on the website of the Fifth Committee. The cut-off date for this presentation is 30 April, but I will update you on developments in recent days as well. For comparison purposes, Chart 1 summarizes the overall status of these indicators at 31 December 2016 and 2017, and at 30 April 2017 and As you can see, at the end of 2017 cash balances were positive for peacekeeping operations and tribunals. However, the regular budget experienced cash shortfalls in the last quarter of the year. This is a troubling pattern that has been experienced in recent years. More recently, at the end of April 2018, cash balances were positive for all categories. Let me first address the regular budget. Chart 2 shows assessments were issued in 2018 at a level of $2.5 billion, $91 million below the level in Payments received by 30 April 2018 totalled $1.5 billion. Unpaid assessed contributions at 30 April 2018 amounted to $1.6 billion, higher than one year ago by $166 million.

2 As seen in Chart 3, 145 Member States had paid their regular budget assessments in full by the end of 2017, matching the number at the end of On behalf of the Secretary-General, I would like to thank these Member States listed in Chart 4. Of the $1.6 billion outstanding for the regular budget as of 30 April, the largest amounts are shown in Chart 5. Here I am pleased to note that the United Kingdom has paid in full since the cut-off date. I urge all Member States who have not paid, or who have not yet paid in full, to pay their assessed contributions as soon as possible. The final outcome for 2018 will depend on actions taken by Member States. Following the issuance of the assessment letters for the regular budget at the start of this year, the Secretary-General appealed to all Member States to meet their financial obligations to the United Nations. As you see in Chart 6, many Member States responded in January and in subsequent weeks. By 30 April 2018, 88 Member States had paid their assessments to the regular budget in full. Since then, Andorra, Côte d'ivoire, Mauritania, San Marino, and the United Kingdom have paid their regular budget assessments in full. Let me thank these 93 Member States for their prompt payments in support of the work of the Organization and urge other Member States to follow their example. Cash resources available for the regular budget under the General Fund include the Working Capital Fund and the Special Account. Chart 7 shows the cash resources available as at 31 December 2016 and 2017, and as at 30 April 2017 and There were cash shortfalls in the last months of 2017, which were covered by the Working Capital Fund and the Special Account. The final position as at 31 December 2017 reflected a cash shortfall of $278 million under the regular budget. The cash position had improved by 30 April 2018, as a result of the contributions from Member States in the first quarter of the year. The current cash level is $330 million. The month-by-month cash position for is reflected in Chart 8. While the regular budget cash position is currently positive, the monthly pattern reflects declining cash levels as the year progresses and the deteriorating level at year end. Given the limited reserves available in the Working Capital Fund and Special Account, the final outcome will depend largely on the payments to be made by Member States in coming months. operations The changing demand for peacekeeping activities makes it hard to predict financial requirements. In addition, peacekeeping has a different financial period, running from 1 July to 30 June rather than the calendar year; assessments are issued separately for each operation; and, assessment letters are issued for different periods throughout the year. 2

3 As Chart 9 shows, the total amount outstanding for peacekeeping operations at the end of 2017 was $1.9 billion, and $2.3 billion as of 30 April In 2018, new assessments of $1.5 billion have been issued to date. Payments of approximately $1.1 billion have been received. As Chart 10 shows, with respect to troop costs and contingent-owned equipment, the amount outstanding at the end of 2017 was $796 million, reflecting a decrease compared to the $810 million outstanding at the end of More recently, at 30 April 2018 the amount outstanding was $1.2 billion. The Secretariat makes every effort to expedite outstanding payments to Member States. Payments are dependent on income from assessments. The current amount outstanding includes payments relating to additional appropriations approved in December 2017 for UNAMID ($416 million) and MINUJUSTH ($86 million), for which assessments were made in January Additional troop payments are scheduled for next week for two missions (UNAMID and UNFICYP), and further payments of $506 million are planned by the end of this quarter. Chart 11 shows the breakdown by Member State as at 30 April Mr. Chairman, the Secretary-General is committed to meeting obligations to Member States providing troops and equipment as expeditiously as possible, as the cash situation permits. I would like to reassure you that we monitor the peacekeeping cash flow situation continuously, and attach high priority to maximize the quarterly payments based on the available cash and data. To do so, we depend on Member States meeting their financial obligations in full and on time, and also on the expeditious finalization of MOUs with contingent-owned equipment contributors. Chart 12 shows the breakdown of unpaid peacekeeping assessments as of 30 April Here, I am pleased to note that a payment has been received from China after the cut-off date, and China is now up to date with its payments. Chart 13 provides an overview of outstanding amounts by peacekeeping operation. As seen in the chart, the outstanding $2.3 billion comprises $1.9 billion owed for active missions and $414 million for closed missions. For active missions, $798 million relates to 2018 assessments, while $1.1 billion relates to assessments in 2017 and prior. As shown in Chart 14, at 31 December 2017, 29 Member States had paid all peacekeeping assessments in full. Let me thank these 29 Member States, particularly because the letters of assessment are issued throughout the year for different missions whenever the Security Council renews the respective mandates. Moving on to Chart 15, more recently on 30 April 2018, 38 Member States had paid all peacekeeping assessments in full. Since the cut-off date, payments were received from Bhutan, China, Côte d'ivoire, Cyprus, India, Israel, Nauru and the Russian Federation. I would like to pay tribute to those 46 Member States for their efforts. Although the total cash available for peacekeeping (including the reserve) at the end of 2017 amounted to approximately $3 billion, this amount is segregated in accordance with the General Assembly s decision to maintain separate accounts for each 3

4 mission. The General Assembly has specified that no peacekeeping mission should be financed by borrowing from other active peacekeeping missions. The use of the Reserve Fund is restricted only to new operations and expansions of existing operations. Chart 16 shows the breakdown of peacekeeping cash, which at the end of 2017 consisted of approximately $2.7 billion in the accounts of active missions, $177 million in closed missions accounts, and the Reserve Fund with $138 million. International As shown in Chart 17, as at 31 December 2017, 114 Member States had paid their assessed contributions for the international tribunals in full. I urge other Member States to follow their example. As reflected in Chart 18, at that date, the outstanding assessments for amounted to $47 million. Looking at the more recent picture (in Chart 19), a total of $83 million remained outstanding as of 30 April Chart 20 provides more detail on the situation of the. As of 30 April 2018, an overall total of $83.2 million was unpaid, including amounts still outstanding for ICTR, which was last assessed in As of 30 April 2018, 162 Member States had paid in full for ICTR, while 70 Member States had paid in full for ICTY and 66 for MICT. I would like to thank all Member States for their financial support to the, and urge those Member States with pending assessments to complete their payments as soon as possible. The month-by-month position of cash balances for the tribunals was positive in 2016, 2017 and 2018 as seen in Chart 21. Once again, the final outcome for 2018 will depend on Member States continuing to honour their financial obligations to the. Financial Statements As this is a briefing about the financial situation of the organization, I would like to bring to your attention some key figures from the financial statements of Volume I, that is for the regular budget, as well as voluntary, capital, tax equalization, insurance and other funds; and Volume II, for peacekeeping operations as seen in Chart 22. I would note that the audit of Volume I is still ongoing so these are preliminary results. Following the implementation of IPSAS, the Secretariat has been committed to enhancing transparency and access to financial information. The financial statements provide a holistic picture of the Organization, not only its cash flows, but its assets and liabilities. The most recent financial statement for Volume I shows assets of $8.3 billion for Volume I and $5 billion for Volume II, mostly cash and investments, and property plant and equipment. After deducting the liabilities from the assets, the Organization has net assets of $2.1 billion for Volume I and $789 million for Volume II. 4

5 In terms of revenue and expenses, Volume I entities earned $6 billion dollars, and spent $5.8 billion, with a surplus of $292 million. For Volume II, the surplus was $11 million, generated by revenue of $8,275 million and expenses of $8,264 million. Conclusion In conclusion, let me share with you the very latest situation as of today. Let me thank the 41 Member States that have paid all their assessments, as seen in Chart 23. As always, Mr. Chairman, the financial health of our Organization depends on Member States meeting their financial obligations in full and on time. For our part, the Secretariat pledges to use funds entrusted to it in a cost-effective manner, and to provide information with the utmost transparency. 5

6 Jan Beagle Under-Secretary-General for Management United Nations 11 May 2018

7 Chart 1 - Status of Assessments (US$ millions) 31 Dec Apr Dec Apr 2018 Assessments 2,549 2,578 2,578 2,487 10,631* 1,161 6,866 1, Unpaid 409 1, ,561 Assessments 1,802 1,679 1,930 2, Cash on Hand ** (123) 632 (278) 330 ** 3,990 2,889 2,838 2, Outstanding Payments to Member States**** *** 796 1,205 * assessments increased in 2016, following a decrease in 2015, due to the timing of decision on scale of assessment rates applicable to ** Not including the reserves *** As at 31 March **** Not including letters of assist, and death and disability claims 1

8 Chart 2 - Regular Budget Assessment Status Actual (US$ millions) 31 Dec Apr Dec Apr 2018 Prior year s balance* Assessments 2,549 2,578 2,578 2,487 Payments received 2,673 1,592 2,456 1,457 Unpaid assessments 409 1, ,561 * As at 1 January 2

9 Chart 3 - Regular Budget Assessments Number of Member States paying in full at Year-End * * 70 * * At 30 April 2018, compared to 92 Member States at 30 April

10 Chart 4 - Regular Budget Assessments Fully paid at 31 December 2017: 145 Member States Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Armenia Australia Austria Azerbaijan Bahamas Bahrain Barbados Belarus Belgium Benin Bhutan Bolivia (Plurinational State of) Bosnia and Herzegovina Botswana Brunei Darussalam Bulgaria Burkina Faso Burundi Cabo Verde Cambodia Cameroon Canada Chile China Costa Rica Côte d'ivoire Croatia Cuba Cyprus Czech Republic Democratic People s Republic of Korea Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador El Salvador Eritrea Estonia Ethiopia Finland France Georgia Germany Ghana Greece Guatemala Guinea Guinea-Bissau Guyana Haiti Hungary Iceland India Indonesia Iraq Ireland Italy Jamaica Japan Jordan Kazakhstan Kenya Kuwait Kyrgyzstan Lao People s Democratic Republic Latvia Lebanon Liberia Liechtenstein Lithuania Luxembourg Malawi Mali Malta Marshall Islands Mauritania Mauritius Micronesia (Federated States of) Monaco Montenegro Morocco Myanmar Namibia Nepal Netherlands New Zealand Nicaragua Norway Oman Papua New Guinea Philippines Poland Portugal Qatar Republic of Korea Republic of Moldova Romania Russian Federation Rwanda Saint Kitts and Nevis Saint Lucia Samoa San Marino Senegal Serbia Seychelles Singapore Slovakia Slovenia Solomon Islands South Africa South Sudan Spain Sri Lanka Sudan Swaziland Sweden Switzerland Syrian Arab Republic Thailand The former Yugoslav Republic of Macedonia Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom of Great Britain and Northern Ireland Uruguay Uzbekistan Vanuatu Viet Nam Zambia Zimbabwe 4

11 Chart 5 - Unpaid Regular Budget Assessments Actual (US$ millions) Member State 30 Apr 2018 United States 938 Japan 144 Brazil 134 United Kingdom 66 Mexico 45 Other Member States 234 Total 1,561 * *Paid in full subsequent to cut-off date of 30 April

12 Chart 6 - Regular Budget Assessments Fully paid in 2017 and 2018 (As of 30 April) JAN. Angola Armenia Australia Benin Canada Denmark Dominican Republic Estonia Finland Georgia Guinea Hungary Ireland Latvia Liberia Liechtenstein Luxembourg New Zealand Norway Senegal Singapore South Sudan Sweden Switzerland Ukraine FEB. Algeria Austria Azerbaijan Bahamas Belgium Bosnia and Herzegovina China Djibouti Iceland Kuwait Kyrgyzstan Mali Malta Marshall Islands Monaco Netherlands Republic of Korea Slovenia Solomon Islands South Africa Sri Lanka Thailand Uzbekistan Viet Nam MAR. Albania Bahrain Bhutan Bulgaria Cabo Verde Croatia Czech Republic Democratic People's Republic of Korea Ecuador Guyana Mauritius Myanmar Nepal Nicaragua Papua New Guinea Romania Russian Federation Samoa San Marino Spain Tunisia Turkmenistan United Arab Emirates Vanuatu TOTAL: 92 APR. Andorra Antigua and Barbuda Brunei Darussalam Dominica Ethiopia Germany Guatemala Haiti India Japan Kazakhstan Montenegro Philippines Portugal Qatar Sudan Trinidad and Tobago Turkey United Kingdom JAN. Armenia Australia Azerbaijan Bahrain Belgium Benin Brunei Darussalam Canada Denmark Dominican Republic Estonia Finland Georgia Hungary Iceland India Kyrgyzstan Latvia Liberia Liechtenstein Luxembourg Marshall Islands Monaco Nepal New Zealand Norway Philippines Poland Russian Federation Rwanda Samoa Singapore South Sudan Switzerland Ukraine FEB. Algeria Austria Bahamas Bhutan Bulgaria China Croatia Cuba Cyprus Equatorial Guinea Germany Ireland Kuwait Mauritius Micronesia Montenegro Morocco Netherlands Qatar Republic of Korea Romania Serbia Slovenia Sweden Turkey Turkmenistan United Arab Emirates TOTAL: 88 MAR. Bosnia and Herzegovina Fiji France Greece Malta Namibia Nicaragua Saint Lucia Slovakia South Africa Thailand APR. Antigua and Barbuda Barbados Cambodia Central African Republic Ethiopia Guatemala Italy Jamaica Kazakhstan Nigeria Portugal Spain Sri Lanka Tunisia Tuvalu 6

13 Chart 7 - Regular Budget Cash Position Actual (US$ millions) 31 Dec Apr Dec Apr 2018 Regular Budget (123) 632 (278) 330 Working Capital Fund Special Account Combined General Fund

14 Chart 8 - Regular Budget Cash Position* Actual Figures for Regular Budget for (US$ millions) * Does not include balances in Working Capital Fund and Special Account 8

15 Chart 9 - : Assessment Status Actual (US$ millions) 31 Dec Apr Dec Apr 2018 Prior-years balance* 976 1,802 1,802 1,930 Assessments 10,631 1,161 6,866 1,457 Payments/credits received 9,805 1,284 6,738 1,117 Unpaid assessments 1,802 1,679 1,930 2,270** * As at 1 January ** Including assessments within 30-day period for MONUSCO ($298.8 million) issued on 6 April 2018, and for MINUJUSTH ($25.4 million) issued on 25 April

16 Chart 10 - Outstanding Payments to Member States 2018 Outstanding Payments (US$ millions) Troops/formed police units COE claims (active missions) COE claims (closed missions) 31 Dec Dec April 2018 a b TOTAL c ,205 a Payments for troops/formed police unit costs for all missions are current up to January 2018 except: MINUJUSTH, MINURSO, UNAMID, UNFICYP, UNMISS and UNSOS, which are paid up to October 2017; MONUSCO and UNISFA, which are paid up to December Payments for COE for active missions are current up to December 2017 for all missions except MINURSO, MONUSCO, UNAMID, UNFICYP, UNMISS and UNSOS, which are paid up to September 2017 and UNISFA, which is paid partially up to June b Excludes reimbursement for services rendered in April 2018 pending deployment statistics. c Does not include Letters of Assist and death and disability claim costs which have balances of $146 million and $5 million respectively as at 30 April

17 Chart 11 - Outstanding Payment to Member States Amounts Owed for Troops/Formed Police Units and Contingent-Owned Equipment at 30 April 2018 (US$ millions) 84 Member States TOTAL $1,205 million* *excluding letters of assist, and death and disability claims 11

18 Chart 12 - Unpaid Assessments* Actual (US$ millions) Member State 30 Apr 2018 United States 1,291 Brazil 244 Ukraine 110 China 67 France 57 Other Member States 501 Total 2,270 ** * Including assessments within 30-day period for MONUSCO ($298.8 million) issued on 6 April 2018, and for MINUJUSTH ($25.4 million) issued on 25 April 2018 **Payment received subsequent to cut-off date (paid in full for currently due assessments) 12

19 Chart 13 - Unpaid Assessments by Operation as at 30 April 2018 Actual (US$ millions) 2017 and prior 2018 Total Active Missions UNDOF UNIFIL UNFICYP MINURSO UNMIK MONUSCO UNMIL MINUJUSTH UNAMID UNISFA UNMISS UNSOS MINUSMA MINUSCA Subtotal 1, ,856.0 Closed Missions Total 1, ,270.3 * * Including assessments within 30-day period for MONUSCO ($298.8 million) issued on 6 April 2018, and for MINUJUSTH ($25.4 million) issued on 25 April

20 Chart 14 - Assessments Fully paid at 31 December 2017: 29 Member States* Armenia Australia Canada China Cyprus Czech Republic Denmark Finland Germany Ireland Israel Kyrgyzstan Latvia Liechtenstein Monaco Netherlands New Zealand Norway Poland Qatar Republic of Korea Russian Federation Saint Kitts and Nevis Senegal Singapore Slovakia Sweden Switzerland Tuvalu *Compared to 24 Member States as at 31 December

21 Chart 15 - Assessments Fully paid at 30 April 2018: 38 Member States* Armenia Australia Austria Azerbaijan Bahrain Belgium Brunei Darussalam Canada Cuba Denmark Estonia Finland Germany Hungary Iceland Ireland Italy Japan Kuwait Latvia Liberia Liechtenstein Luxembourg Monaco Namibia Netherlands New Zealand Nicaragua Norway Poland Qatar Samoa Singapore Slovakia Slovenia Sweden Switzerland Tuvalu *Compared to 48 Member States as 30 April

22 Chart 16 - Cash Position Actual Figures for for (US$ millions) 5000 Active Missions PK Reserve Fund Closed Missions

23 Chart 17 - Tribunal Assessments Fully paid at 31 December 2017: 114 Member States* Algeria Andorra Angola Armenia Australia Austria Azerbaijan Bahrain Barbados Belarus Belgium Benin Bhutan Bosnia and Herzegovina Brunei Darussalam Bulgaria Cabo Verde Canada Chile China Costa Rica Côte d'ivoire Cuba Cyprus Czech Republic Democratic People's Republic of Korea Democratic Republic of the Congo Denmark Ecuador Egypt Estonia Ethiopia Finland France Georgia Germany Greece Guatemala Haiti Hungary Iceland India Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kuwait Kyrgyzstan Lao People's Democratic Republic Latvia Liberia Liechtenstein *Compared to 116 Member States as at 31 December 2016 Lithuania Luxembourg Madagascar Malawi Malaysia Mali Mauritius Micronesia (Federated States of) Monaco Mongolia Myanmar Nauru Netherlands New Zealand Nicaragua Niger Norway Oman Pakistan Panama Philippines Poland Portugal Qatar Republic of Korea Republic of Moldova Saint Kitts and Nevis Saint Lucia Samoa San Marino Senegal Serbia Seychelles Singapore Slovakia Slovenia Solomon Islands South Africa Spain Sudan Sweden Switzerland Syrian Arab Republic Thailand The former Yugoslav Republic of Macedonia Timor-Leste Tunisia Turkey Turkmenistan Tuvalu Ukraine United Arab Emirates United Kingdom United Republic of Tanzania Uzbekistan Vanuatu Zambia 17

24 Chart 18 - Outstanding Tribunal Assessments at 31 December (US$ millions)

25 Chart 19 - Unpaid Tribunal Assessments Actual (US$ millions) Member State 30 Apr 2018 United States 38 Russian Federation 16 Brazil 6 Indonesia 5 Japan 5 Other Member States 13 Total 83 19

26 Chart 20 - Tribunal Assessments as at 30 April 2018 Actual (US$ millions) Assessments/Unpaid Assessments (US $millions) Fully paid/unpaid (# of Member States) Assessments Total Unpaid Fully Not paid in 2018 Assessments paid in full ICTR ICTY MICT Total * *Compared to $91 million as at 30 April

27 Chart 21 - Cash Position Actual Figures for for (US$ millions)

28 Chart 22-Overall Picture from the Financial Statements Non-* & (US$ millions) Non-PK(Vol. I) PK (Vol.II) 2017** 2016/2017** Assets 8,321 5,002 Liabilities 6,187 4,213 Net Assets 2, Revenue 6,082 8,275 Expenses 5,799 8,264 Surplus/deficit for year *, and voluntary, capital, tax equalization, insurance and other funds **Unaudited Volume I year ended 31 December 2017; audited Volume II year ended 30 June

29 Chart 23 - All Assessments Paid in Full as at 11 May 2018: 41 Member States* Australia Austria Azerbaijan Bahrain Belgium Bhutan Brunei Darussalam Canada China Côte d'ivoire Cuba Cyprus Denmark Estonia Finland Germany Hungary Iceland India Ireland Italy Kuwait Latvia Liberia Liechtenstein Luxembourg Monaco Namibia Netherlands New Zealand Nicaragua Norway Poland Qatar Samoa Singapore Slovakia Slovenia Sweden Switzerland Tuvalu *Compared to 39 Member States as at 3 May

30 Overall Picture from the UN Financial Statements 41 Fully paid Member States All assessments fully paid at 11 May 2018 Australia Kuwait Vol I (2017), Vol II (2016/2017) (US $M) Austria Azerbaijan Latvia Liberia 10,000 8,321 Assets Liabilities Bahrain Belgium Bhutan Liechtenstein Luxembourg Monaco 8,000 6,000 4,000 2,000 6,187 5,002 4,213 Brunei Darussalam Canada China Namibia Netherlands New Zealand 0 Non-PK (Vol.I) PK (Vol.II) Côte d'ivoire Nicaragua Cuba Norway Revenue Expenses Cyprus Denmark Poland Qatar 11 May ,000 8,000 6,000 4,000 2,000 6,082 5,799 8,275 8,264 Estonia Finland Germany Hungary Samoa Singapore Slovakia Slovenia 0 Non-PK (Vol.I) PK (Vol.II) Iceland India Sweden Switzerland aaa Ireland Tuvalu Italy

31 Regular Budget Assessments and Outstanding as at 30 April (US $M) Assessments and Outstanding as at 30 April (US $M) Assessments and Outstanding as at 30 April (US $M) 4,000 3,000 2,000 1,000 2,578 2,487 1, ,561 4,000 3,000 2,000 1,000 1,457 1,161 1, , Assessments Outstanding 0 Assessments Outstanding 0 Assessments Outstanding Member States who paid by 30 April (Total of 193) Member States who paid by 30 April (Total of 193) Member States who paid by 30 April (Total of 193) 200 Fully Paid Partially Paid No payment Fully Paid Partially Paid No payment Fully Paid Partially Paid No Payment