Cost Control and Efficiencies

Introduction

1. Properly formulated budget proposals go through a thorough review process both at Mission level as well as HQ level, to ensure that the underlying assumptions are realistic and that the resources are sufficient to implement the mandated tasks. UNXYZ, like other missions, is expected to deliver well justified budget proposals, with no concealed "fat" or slack. Therefore across the board reduction of 10% will have an impact on its operations. This necessitates a review of all activities to determine the most critical priorities and to decide on reconfiguring the scale and scope of planned activities. This must be done expeditiously to ensure that mandated priorities are provided for and while less important ones are deferred, scaled down or dropped. Expenditure patterns during previous periods will be analyzed to identify areas previously under-spent and object codes with significant increases compared to prior years will also be reviewed.

Personnel costs - (military, police and civilian)

2. Military and police personnel: Although it would be logical to target the groups or classes of expenditure with the larger proportion of the budget, it should be noted that some areas will have contractual commitments already in place. UNXYZ's apportionment in 2009/10 for military and police personnel, like many other typical peacekeeping missions, was the largest at 54%. This would make it an attractive area to consider for reductions. However, this group and its classes are budgeted for based on on-going commitments in the memoranda of understanding (MOUs) between the United Nations and the troop contributing countries (TCCs) which limits possible reductions. Nevertheless, further review of delayed deployment, particularly if troop rotations are expected during the budget period, it could be negotiated to reschedule (delay) the arrival dates of in-coming contingents provided this does not jeopardize the security situation. As this is a very sensitive area that could affect the mandate of the Mission, it should be considered after wide consultations at top level and only if endorsed by the Force Commander.

3. Civilian personnel: Based on 2009/10 apportionment, civilian personnel budget was only 16%. An analysis of past trends and vacant posts should be carried out, and programme managers under whose portfolio these vacancies fall should be consulted to determine whether recruitment to these posts could be delayed. Again, this is an area to be considered only after exhausting other options, since high vacancy rates have effects on the work load of staff, and will ultimately affect their performance and well being.

Operational costs

4. Operational costs are generally more flexible than both the military and civilian costs, although there are object codes within this group such as rental, which have on going commitments. The apportionment at UNXYZ for operational costs was $173.2 million out of $ 589.8 million representing d about 29% of the total budget in 2009/10. The largest class was facilities and infrastructure