Internal oversight office addresses delays and waste.

"My overall assessment after 20 months in office is that the creation of the Office of Internal Oversight Services (OIOS) is one of the most meaningful initiatives taken by the General Assembly in the context of United Nations reform", Under-Secretary-General Karl Th. Paschke of OIOS wrote in a preface to the Secretary-General's report (A/51/432) on reform, issued on so September.

According to Assembly resolution 48/218 B of 29 July 1994, OIOS had been established with the intention of enhancing oversight functions within the United Nations, "in view of the increased importance, cost and complexity of the Organization's activities, through intensified evaluation, audit, inspection, investigation and compliance monitoring".

Incidentally, Mr. Paschke went on, "'reform' has become a buzzword that is echoed worldwide whenever public administrations are discussed these days". During the summit-level commemorative meeting on the occasion of the United Nations fiftieth anniversary, most world leaders had called for United Nations reform to make the Organization fit for the next millenium.

"So, is there consensus among Member States about it?" Mr. Paschke asked. "Probably not when it comes to specifics, to a redefinition of the priorities of the world body or to a rationalization and reshaping the United Nations system".

Nevertheless, the Under-Secretary-General stated, "overwhelming support can be safely assumed" for an administrative, managerial reform of the Secretariat, which was "engaged in intensive efforts to that end", such as the Efficiency Review and the Efficiency Review Board initiated by the Secretary-General, as well as various streamlining projects in several departments.

"I personally believe in reform as an ongoing process, a continuous striving for improvement, and I therefore welcome the growing awareness within the Organization for the need to change", Mr. Paschke stressed.

Peace-keeping

In reviewing peace-keeping - which, along with humanitarian and related activities, procurement and problems in establishing new bodies, was considered a priority area - OIOS, among other things, noted that a "more appropriate management structure" could have saved the United Nations Peace Forces (UNPF) in Bosnia and Herzegovina significant resources. For example, UNPF had purchased approximately 650 generators valued at $7.2 million that had been "either not used or sent to other missions". In Haiti, avoidable delays in establishing the ration and service contracts during the transition from the Multilateral Force to the United Nations Mission in Haiti had cost the Organization $12 million, the report said.

Humanitarian activities

In reviewing the country programmes of the Office of the United Nations High Commissioner for Refugees (UNHCR), OIOS established, among other things, that in a number of cases implementing partners had "charged disproportionately high administration costs" and that "additional project charges for 'overhead costs' did not appear justified".

There was a need for UNHCR management to "improve monitoring procedures over project expenditure, with particular emphasis on monitoring and substantiating financial commitments", OIOS noted. Also, when local currency situations were considered unstable or inflationary, sub-agreements and budgets were drawn up in United States dollars, leaving the implementing partners responsible for conversion to local currency. "While documentation on such exchange should be submitted to UNHCR, controls were weak, and sometimes non-existent, thus giving opportunity for abuses", the report said.

Procurement

While "specific shortcomings" had been revealed in pre-solicitation, contracting and contract administration phases of the purchasing process, a number of actions had already been taken or were planned with regard to the implementation of the reform measures, the Internal Oversight Office reported. Also, management had sought the comments of OIOS and suggestions on the draft of their new procurement manual.

However, OIOS observed, "in all cases to date management has been responsive to the audit recommendations and has taken measures to address the shortcomings disclosed".