Reprinted from The Washington Times , 5am -- April 24, 1998
GAO: U.N.'s finances not as grim as claims
By George Archibald
THE WASHINGTON TIMES
The United Nations has adequate resources and its financial picture is not as gloomy as its leaders say, according to a draft General Accounting Office audit done for Congress.
Cash shortages in the U.N.'s regular budget -- ranging from $26 million in 1994 to $208 million last year -- were mainly caused by slow dues payments by member countries, including the United States, whose fiscal year starts nine months later than the U.N.'s, says the draft report obtained by The Washington Times.
However, the United Nations has easily solved its yearly cash-flow problems by borrowing from peacekeeping accounts, which had year-end cash balances ranging from $923 million in 1995 to $673 million last Nov. 25, the GAO reports.
Even though annual peacekeeping assessments have fallen from $3 billion in 1994 to a projected $800 million this year, year-end peacekeeping cash reserves are more than three times the amount needed for short-term bridge loans to the regular budget, the report shows.
"Because financial rules prohibit external borrowing, the United Nations borrows from working-capital fund and other internal accounts to cover regular budget shortfalls. Borrowing from peacekeeping accounts is the major source of cash," it says.
The report notes, "Borrowing from peacekeeping accounts prevents full reimbursement of countries contributing troops and equipment to U.N. peace operations."
The United Nations owes $1.3 billion to contributing countries, including $148.3 million to France and $111.6 million to the United States, which have the largest unpaid reimbursements.
The United Nations is owed $1.6 billion in unpaid peacekeeping contributions, primarily for former operations in Bosnia and Somalia. The United States owes 60 percent of peacekeeping arrears, or $939 million, according to the world body, but the U.S. government acknowledges only $658 million, the report says.
Last fall, the United States still owed $172.7 million of its 1997 non-peacekeeping assessment when the United Nations ran out of money and needed $208 million to pay its regular bills. Peacekeeping accounts had $673 million to cover the shortage, the report says.
Because of the timing of U.S. checks, a shortage of payments one year may become a windfall the next, the report shows. The United States exceeded its regular yearly assessments with payments of $313 million in 1996 and $303 million in 1995.
The United Nations calculates that member countries are $471 million behind in regular payments, with the United States owing $373 million. The GAO says the administration will pay $151 million of unpaid contributions this year.
The United States disputes $168 million of the U.N.'s claim, saying it owes only $54 million in regular budget arrears.
Joseph E. Connor, the U.N.'s undersecretary-general for administration and management and the highest-ranking American at the world body, last month predicted the U.N.'s looming financial collapse -- blaming the United States for the bulk of the problem.
Thursday, Mr. Connor declined to comment on the GAO draft.Copyright 1998 News World Communications, Inc.
Reprinted with permission of
The Washington Times.
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