UNEP/CHW/OEWG/4/INF/18/Add.1

/

BC

UNEP/CHW/OEWG/4/INF/18/Add.1
/ Distr.: General
30 June 2005
English only

Open-ended Working Group of the Basel Convention

on the Control of Transboundary Movements of

Hazardous Wastes and Their Disposal

Fourth session

Geneva, 4–8 July 2005

Item 5 (j) of the provisional agenda[(]

Financial matters (decision VII/41)

Additional information on financial matters

Note by the Secretariat

The present note is submitted to provide additional information for the Parties of the Basel Convention on financial matters related to the Basel Convention Trust Fund.

I. Administrative Services Center

In November 2004 the Executive Director of UNEP communicated to the Executive Secretary that UNEP was to modify the administrative arrangements relating to the service relationship between UNEP and the Secretariat of the Basel Convention, through the establishment of a UNEP Administrative Services Center (ASC) in Geneva. The communication indicated that the proposed new arrangements could result in additional costs being levied from the Basel Convention Trust Fund over and above the 13 % programme support cost paid to UNEP for the provision of administrative services.

Mr. Saul Irureta, the then President of the Expanded Bureau, wrote on 7 February 2005 to the Executive Director of UNEP requesting additional information and clarification concerning the proposed modification to the administrative arrangements. The response of the Executive Director of UNEP was received on 20 June 2005. Both letters are annexed to the present note.

The Expanded Bureau considered this matter in its meeting on 22 June 2005. At the request of the Bureau UNON and UNEP representatives, Messrs. Paul Akiwumi and Sergey Kurdjukov respectively, presented the progress made in establishing and operationalizing the Administrative Services Center (ASC). In their presentations the representatives emphasized that the overall goal of ASC is to increase efficiency with reduced costs. However, at this moment there is yet no estimation of the possible cost savings for the Basel Convention resulting from the establishment of the ASC. The meeting was further advised that the initial implementation of the ASC would be limited to the UNEP offices. However, the Secretariat would still be given full access to using its services, as it deems beneficial and appropriate. At a time when UNON and UNEP have better defined the processes they will prepare a report giving more details and addressing the issues raised in the then President’s letter. The representative of UNON noted that the Basel Convention would be free to make a decision whether or not to join the ASC after all pending issues have been resolved and that, if it decides to join, there would be no additional costs charged to it beyond the 13 % programme support cost. The representatives also confirmed that UNON and UNEP do not meanwhile take actions that would prejudice a decision of the Conference of the Parties to the Convention.

The Bureau expressed appreciation for the presentation of the progress report by UNON and UNEP and discussed certain aspects of the new administrative arrangements that require clarification, including cost effectiveness of the arrangement and efficiency as well as the question of additional charges that have been levied on the Secretariat over and above the programme support cost charged to the BC Trust Fund and BC Technical Cooperation Trust Fund. The President reiterated the concerns of the Bureau that any such proposed arrangements should be of no additional costs to the Parties and that it should increase efficiency and effectiveness of the Secretariat. The Bureau agreed that the President would again write to the Executive Director to address these issues, taking into account any comments that the OEWG may wish to provide at its fourth session. The Bureau also agreed that the matter should be further discussed on the basis of the additional information to be provided by UNEP and that any proposal concerning the ASC will be submitted to the Conference of the Parties for its decision.

II. Expenditures associated with programmatic activities of the Basel Convention

The Secretariat has received on 7 March 2005 a memorandum from the Acting Chief of ASC concerning UNEP programme common costs in Geneva. In his memorandum the Acting Chief states that the cost of administration, e.g. HR services, accounts, IMIS and protocol, is covered by the programme support cost charged at the standard 13 % rate on the budget expenditures whereas the expenditures associated with programmatic activities, e.g. communication, travel, rent, utilities and cleaning, procurement and IT services, should be budgeted and paid separately. He states further that prior to 2004 these charges were included in the over-all UNOG bills, settled by Nairobi and subsequently prorated and charged to the budgets of appropriate units at a flat rate based on the actual expenditures incurred by units during that year. In 2004 and 2005 the Secretariat received directly from the United Nations Office in Geneva (UNOG) invoices for communication including mail and pouch, travel, rent, electricity, cleaning and shuttle services provided by UNOG and charged on the basis of the actual indicators: number of square meters and staff members as appropriate. The Secretariat has requested from the ASC estimations for annual charges of the programmatic activities to enable a further review of this issue.


Annex





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[(]* UNEP/CHW/OEWG/4/1.