Fifth Committee, 7th plenary meeting - General Assembly, 81st session

I call the order to the seventh meeting of the Fifth Committee at the 81st session for the General Assembly. Distinguished colleagues. I invite the Committee to resume its consideration of agenda item 140, entitled "Improving the Financial Situation of the United Nations". As you recall, the Under-Secretary-General for Management Strategy, Policy and Compliance, Ms. Catherine Pohlert, presented the financial situation of the United Nations to the Committee at its third formal meeting held on 7 October 2026. The statement delivered by Ms. Poller in that meeting has been issued as a report of the Secretary-General, containing document A/81/415. In keeping with established practice, the Committee will hold a general discussion of the item today. Before we hear the first speaker, I give the floor to the Under-Secretary-General for Management, Strategy, Policy and Compliance, Ms. Catherine Pohlert, and invite her to provide the Committee with updated information of the current financial situation of the United Nations. Ms. Pohlert, you have the floor.

Thank you, Mr. Chairman. Good afternoon to you and the distinguished delegates of the Committee. I would like to update the committee on developments since my briefing almost two weeks ago. For the regular budget, Jordan and Nigeria have paid in full, which brings the total number of member states having paid in full to 145. For the international tribunals, Azerbaijan and Nigeria have paid in full. bringing the total number of Member States who paid in full for this category to 127. The Member States that are fully paid for all categories are reflected in paragraph 21 of the report A/81/415, which is now before you. The Secretary-General wishes to pay special tribute to the 59 Member States that have paid all assessments that were due and payable as at the time of reporting. Additionally, payments have been received from the following Member States: Burkina Faso, Greece, Jordan, Kiribati, Kuwait, Lao People's Democratic Republic, Montenegro, Nigeria, and the United States of America. On behalf of the Secretary-General, I would like to thank these Member States for their positive action since the recent briefing on the financial situation of the United Nations. Thank you, Mr. Chair.

I thank Ms. Poller for providing these updates. The floor is now open for any delegation who wishes to make a statement. I give the floor to the distinguished delegation of Uruguay on behalf of G77 and China.

Thank you, Mr. Chair. I have the honor to deliver this statement on behalf of the Group of 77 and China on agenda item 140, improving the financial situation of the UN. The group thanks Ms. Catherine Pollard, Under-Secretary-General for Management Strategy, Policy and Compliance, for her briefing on the financial situation of the UN on October 7th and for the update provided today. The Group remains deeply concerned about the Organization's financial situation. As of September 30, unpaid assessments amounted to $1.46 billion for the regular budget, approximately $4.1 billion for peacekeeping operations, and $87 million for the international tribunals. These outstanding contributions continue to undermine financial predictability and the full and effective implementation of mandates. We acknowledge the improvement in regular budget collections and the payments received in September, which enabled repayment of borrowings from the working capital fund and the special account. Nevertheless, this improvement does not resolve the underlying uncertainty. The organization entered 2026 with record unpaid regular budget assessments of $1.565 billion. 68 billion and had to draw on both liquidity reserves earlier than in 2025, despite spending restrictions. The group reaffirms that the United Nations must receive the necessary resources to discharge its responsibilities. The most fundamental and effective answer to the recurrent liquidity problems of the Organization depends on all Member States fulfilling their obligations under the Charter to pay their assessed contributions in full, on time, and without conditions, while recognizing the genuine difficulties faced by those affected by circumstances beyond their control. We firmly reject the unilateral and persistent building of contributions as a means of exerting pressure on the organization. We commend those member states that have honored their financial obligations and urge those with outstanding assessments to do so. Mr. Chair, the group recognizes the collective efforts of member states during the ATS session, culminating in the historic decision on a revised methodology for the return of credits. Together with the harmonization of their treatment, This decision addresses the damaging cycle of returning resources that the organization has not received. We emphasize transparent and accountable implementation, including clear reporting on credits and outstanding balances in full compliance with financial regulations and rules. These measures provide important relief, but cannot substitute for the timely and full payment of assessed contributions. We acknowledge the Secretariat's efforts to preserve business continuity under difficult circumstances. However, spending restrictions, hiring constraints, and the postponement or cancellation of activities carry consequences for mandate delivery. We underscore that mandate delivery must remain the central driver of budget implementation rather than short-term cash availability. We encourage further information on the operational effects of these measures and steps envisaged to address them. The group is particularly concerned about the continued liquidity crisis in peacekeeping. The 2025-2026 financial period ended with more than $2.8 billion in arrears. We welcome the settlement as of September 30 of outstanding troop, police, and contingent-owned equipment claims for active missions, while noting the risk of renewed delays unless collections improve. Our members collectively constitute the largest contributors of troops and police and attach particular importance to timely reimbursement. Countries providing personnel and equipment must not bear an additional financial burden arising from unpaid assessments. The group reiterates the importance of sustained attention to the organization's financial situation at the highest political level. Transparent reporting on financial constraints and outstanding contributions is essential to strengthen accountability and mobilize the commitment required to address the root causes. The Group of 77 and China remains committed to constructive engagement towards collective and equitable solutions that strengthen the organization's financial stability and ensure the full and effective implementation of all mandates, as demonstrated by our sustained efforts during the second resumed part of the ATS session to reach agreement on the revised methodology for the return of credits. I thank you.

I thank the distinguished delegate from Uruguay, and I'll give the floor to the distinguished representative of the European Union.

Mr. Chair, I have the honor to speak on behalf of the European Union and its member states. The candidate countries, North Macedonia, Montenegro, Serbia, Ukraine, the Republic of Moldova, Bosnia and Herzegovina, as well as Andorra, Monaco, and San Marino, align themselves with this statement. At the outset, I would like to thank USG Pollard, the Comptroller, and her teams for their comprehensive presentation on the financial situation. The European Union and its Member States, as the largest financial contributor to the UN system, remain deeply concerned about the Organization's financial situation. The figures are stark. Outstanding assessment stands at 5.6 billion US dollars, equivalent to around 66% of total annual assessments. The situation is particularly challenging for the UN peacekeeping budget, where arrears now total 4.1 billion US dollars. These are no abstract figures. They reflect a growing disconnect between the responsibilities of member states under the charter, the mandates we collectively adopt, the scale of assessments that we agree upon, and the organization's financial reality. Mandates simply cannot be implemented without resources. This undermine consensus and the credibility of this organization. This trajectory is unsustainable. The challenge that the United Nations Organization has faced for 18 months

Response to armed conflicts, climate change, and constant threats to human rights. In certain context, in female, the organization is not acceptable. Concerted efforts within the UNHCR initiatives have to channel us towards a more effective organization. but we have a collective responsibility here to provide the financial responsibilities. And yet, despite the financial constraints, those who serve under the UN flag continue discharging the UN mandate under circumstances which are especially difficult, and we pay tribute to their professionalism, resilience, and their unflagging commitment to the values and principles of the United Nations. We also praise the efforts made by the Secretary-General to guide the Organization in responsible way and to make sure that the organization is transparent as regards its gravity.

The root cause of this crisis remains clear and unchanged: the failure of some Member States to pay their assessed contributions in full, on time, and without conditions. Let us be unequivocal: payment of assessed contributions is a legal obligation under the UN Charter, not a political choice. We call on all Member States to fulfill their obligations on time while at the same time reducing their arrears. Where payment difficulties arise, transparent and credible payment plans should be communicated promptly to the secretariats to improve predictability and support responsible financial management. We must be firm on our obligations, flexible in seeking solutions, and united in our determination to break the cycle of arrears and reject conditionalities. This work must remain a priority for the Committee. At the same time, we must further carefully watch this funding crisis and evaluate the effect of measures we agree upon. The agreement on the methodology for the return of credits demonstrated that with political will, Member States can find common ground and deliver concrete solutions to support the organisation. The European Union and its member states have played an active role in achieving this pivotal agreement and stand ready to continue to engage in a constructive manner in finding sustainable solutions to the financial crisis. As we prepare for the transition to a new Secretary General, we hope these efforts will help create a more stable financial environment for an incoming leadership.

Mr. Chairman. We are committed to work constructively and pragmatically with a spirit of consensus to find lasting solutions to this crisis. Member states of the European Union continue to show leadership by paying their contributions on time, by offering to pay some contributions early. But the solutions should also include continued efforts to modernize the Treasury and to make sure that it is more agile and more nimble to make sure that member states can see results. But we must be clear, solidarity cannot substitute responsibility and efficiency cannot compensate for the absence of payment. We must collectively work together on collective measures to establish financial stability and to ensure that the organization can fulfill its mandates. In conclusion, we reiterate the European Union's unwavering commitment to the United Nations, to multilateralism, and to a more robust, effective, and financially stable organization. Thank you.

I thank the distinguished delegate from the European Union, and I will give the floor to the distinguished representative of Singapore on behalf of ASEAN.

Thank you very much, Mr. Chair. I have the honour to speak on behalf of the Association of Southeast Asian Nations, or ASEAN, on agenda item 140, improving the financial situation of the UN. ASEAN aligns itself with the statement delivered by the Group of 77 in China. ASEAN thanks USG Katherine Pollard and Controller Chandru Ramanathan for their updates on the financial situation of the organization on 7th and 9th October, respectively. We are encouraged that the Organization's financial outlook has improved compared to earlier projections. Collections have strengthened considerably in recent months, with regular budget collections reaching their highest level at this point in the year in the last eight years, and the year-end collection forecast revised upwards to 95.6%. Nevertheless, the liquidity situation remains fragile, particularly for peacekeeping operations. We also acknowledge the positive impact on the General Assembly's decision to revise the credit return methodology on a trial basis, which has helped provide greater financial stability and breathing space for the Organization. However, this is not a permanent solution. It has helped to stave off the Organization's financial collapse for now. First, liquidity is essential for effective mandate delivery. The financial health of the Organization depends not only on the payment of assessed contributions, but also on the timely and predictable flow of those resources throughout the year. Delays in payment create liquidity pressures that affect planning, implementation and mandate delivery. Without adequate liquidity, the Secretariat is forced to operate under constraints that can delay activities and impede programme delivery. Liquidity is therefore not simply a financial issue. It has a direct impact on the UN's ability to implement mandates entrusted by Member States. Second, predictability is essential for sound financial management. We agree with the Secretariat on the importance of predictable cash flows. Predictable cash flows allow the organization to plan expenditures responsibly, allocate resources efficiently, and manage costs more effectively. By contrast, uncertain payment patterns complicate workforce planning, procurement, and operational decision making. As the Comptroller has highlighted, uncertainty persisted for much of the year and affected the timely release of allotments and programme implementation. Greater predictability would enable the Organization to focus on delivery rather than managing cash constraints. Third, timely payment remains the most effective and sustainable solution to the UN's financial challenges. While liquidity management measures are useful, they cannot substitute for timely payment of assessed contributions. While the regular budget outlook has improved, the situation for peacekeeping remains concerning. As of 30th September, unpaid assessments for active peacekeeping missions stood at approximately 3.4 billion US dollars, equivalent to almost 70% of assessments for 2026-2027. The Comptroller has also projected a probable peacekeeping cash shortfall of approximately 445 million US dollars during the current fiscal period. Timely payment is a Charter obligation. It is a collective responsibility arising from our shared commitment to the Organization and the mandates we have approved. ASEAN calls on all Member States to pay their assessed contributions in full, on time, and without conditions. ASEAN recognizes that some Member States face legitimate constraints that affect their ability to make payments on schedule. We nevertheless appreciate the efforts of those Member States that strive to honour their obligations despite these difficulties. Mr Chair, ASEAN remains committed to meeting our financial obligations. We call on all Member States to do likewise. Ensuring adequate liquidity, timely payments and greater predictability of resources is indispensable if the UN is to remain effective, credible and fit for purpose. Thank you.

I thank the distinguished representative of Singapore. And now I give the floor to the distinguished representative of the Maldives.

Thank you, Chair. The Maldives thanks USG Catherine Pollard and ASG Chandu Ramanathan for their comprehensive briefings on the financial situation of the United Nations and the management of its liquidity. We align ourselves with the statement delivered by Uruguay on behalf of the Group of 77 and China. The financial situation of the UN remains a serious concern. While improved collections and the recent decision on the return of credits have provided some relief, the underlying liquidity challenges persist. Uncertainty in the availability of resources continues to affect the timely and effective implementation of mandates. The Maldives reiterates that the primary responsibility for ensuring the financial stability of the Organization rests with Member States. Assessed contributions must be paid in full, on time and without conditions. Liquidity management measures cannot substitute for the fulfilment of these obligations. At the same time, we must recognize that payment patterns may remain unpredictable. The Organization must therefore be better equipped to operate effectively within these realities without compromising its mandates or the quality of its delivery. The Maldives The Maldives also believes that financial sustainability requires us to look beyond availability of resources to how those resources are managed. The ongoing UNAT initiative provides an important opportunity to examine not only how structures and processes, but also the institutional practices and working culture that shape how the organization operates. In particular, we see merit in examining how greater cooperation amongst offices and entities, Stronger incentives for joint planning and less competition for resources can translate into tangible financial efficiencies. For SIDS, where overlapping activities and fragmented engagement can place additional demands on limited national capacities, greater coherence would also improve the effectiveness of and efficiencies in UN support. encourage the Secretary to give greater attention to these practical dimensions of management reform within the ongoing UNAT process, including by identifying measurable efficiencies and opportunities for savings. Such efforts should strengthen the organization's ability to manage financial uncertainty while safeguarding the effective delivery of mandates. Ultimately, financial sustainability requires both predictable contributions from Member States and the most effective use of available resources. These are complementary country responsibilities. Our collective objective must be an organization that is financially stable, operationally efficient, and fully capable of delivering on its mandates. I thank you.

I thank the distinguished delegate from the Maldives. And now I give the floor to the distinguished representative of Cuba.

Thank you, Chairman. We'd like to thank USG Ms. Pollard, ASG Chandra Ramanathan for being here and for providing us with updates on the financial situation. We align ourselves with the statement delivered by Uruguay on behalf of the G77 and China, and we'd like to make the following comments on our national capacity. The adoption of the new methodology for credits is certainly a significant relief for the liquidity crisis that the organization has been experiencing. Nevertheless, as was recently said by the SG in this room, this is not enough to address the root causes of the complex financial situation. we should stress that the full on time payment of contributions is something that all member states should do. This is not an optional matter. It is disrespectful that the major global economic power is keeping the UN in a chronic financial crisis as a result of its withholding of its contributions. the main contributor to the UN, constantly makes requirements to achieve efficiencies and speak about the ineffectiveness of a system that they are hobbling with their own non-payment. The US benefits from a ceiling in the assessment of its contributions. And the US owes billions of dollars to the entire UN system. This cannot be normalized and is unjustifiable. Developing countries make significant efforts to pay in full and on time. Cuba, for the second consecutive year, was not able to fulfill its contributions on time. In 2026, we've only been able to make a partial payment to the regular budget, and with major efforts, we are about to carry out a second payment. The accumulated effects of the embargo imposed by the US government on Cuba, which has been going on for more than 60 years, in addition to the unilateral coercive measures that have been rolled out, have prevented Cuba from making our contribution in full. These policies have caused great harm to Cuba and caused significant financial losses to our country. In spite of these factors, we remain committed to making our contribution in full, and we call on all member states to do so and to refrain from taking illegal measures that can harm other countries' ability to pay. Thank you.

I thank the distinguished delegate from Cuba, and now I give the floor to the distinguished representative of India.

Mr. Chair, India aligns with the statement delivered by Uruguay on behalf of the Group of 77. We thank USG Ms. Katherine Pollard and Controller Mr. Chandran Ramanathan for their presentation on 7th and 9th October, respectively, and for the updates provided today. Mr. Chair, we consider that full, timely and unconditional payment of assessed contribution is a Charter obligation of every Member State. Efficient and effective mandate delivery go hand in hand with the provision of adequate and timely resources to the Secretariat to fulfill the entrusted task. On its part, India has consistently paid its assessment in full, on time and often in advance. Mr. Chair, we note with concern that the liquidity situation in 2026 remains challenging due to the collection uncertainties and low cash balance. The respite resulting from strong collection in the third quarter needs to be sustained. We also welcome that 141 Member States had paid in full their assessment by 30 September 2026 compared to 136 member states last year. While we have noted the marginal drop in the regular budget unpaid assessment to $1.46 billion from the $1.87 billion a year ago, the reality is that the unpaid assessment continue to remain at unacceptably high levels. And over 90% of the regular budget areas are owed by one member state. Mr. Chair, situation in peacekeeping is more worrisome. Unpaid assessment reached $4.1 billion, up from $3.7 billion last year, while collection stagnated at around $1.4 billion. Two member states alone account for roughly 88% of this amount. For the Tribunal, it rose to $87 million, with two member states owing over 80%. As a troop contributing country, we welcome that troop and contingent owed equipment claims for active missions are now settled. We urge that the remaining $30 million for closed missions are settled promptly. In conclusion, Mr. Chair, we urge all Member States, especially those with requisite means, to take expeditious action to fulfill their financial obligations. This is critical to ensuring a financially healthy and sound United Nations with zero indebtedness. It is an integral part of our common quest for prudent budgetary and financial management of the Organization. I thank you.

I thank the distinguished representative of India, and now I give the floor to the distinguished representative of Guyana.

Thank you, Mr. Chair. We thank USG Pollard for the updates provided today and for a presentation on the financial situation of the UN on 7 October. We also extend our appreciation to ASG Ramanathan for his briefing on the management of the liquidity situation on 9 October. Guyana aligns itself with a statement delivered by Uruguay on behalf of the group of 77 and China and offers the following observations in our national capacity. Mr. Chair, Guyana underscores the indispensable role of a strong, stable, and adequately resourced United Nations. We remain deeply concerned by the Organization's persistent liquidity constraints and their far-reaching implications for the effective implementation of its mandates. In recent years, increasingly stringent cash conservation measures have been required to safeguard the continuity of the Organization's operations. As we work towards the continued implementation of the UN80 initiative, Guyana stresses the importance of the efficient use of the organization's resources while simultaneously ensuring timely and effective mandate delivery. Guyana reiterates its appeal to all member states in a position to do so to pay their assessed contributions to the regular budget in full and in a predictable manner so that the liquidity situation improves. We also urge states that may experience difficulties in this regard to work with the secretariat on a payment plan suitable to their circumstances. Mr. Chair, Guyana welcomes the adoption of Resolution 80/270 on credit return methodology, which allowed for a revised methodology for the calculation of credits for the three budget categories for a four-year trial period. We note the new methodology's positive impact in breaking the cycle of returning funds that have not been received, thereby avoiding a severe financial crisis. On peacekeeping, we reaffirm our support for this essential tool of the Organization and call for greater predictability and timeliness in the reimbursement to troop and police contributing countries. On international tribunals, we stress the importance of properly financing these, given their important role in upholding international law and delivering justice. In conclusion, Mr. Chair, Guyana remains committed to engaging constructively with all Member States in advancing the Committee's mandate. I thank you.

I thank the distinguished delegate from Guyana, and now I give the floor to the distinguished representative of Haiti.

Thank you, sir. Mr. Chairman, my delegation thanks you for organizing this meeting on improving the United Nations financial situation under agenda item number 140. We'd also like to thank the Secretary General for his report contained in document A/81/415. Mr. Chair, the organization's financial health hinges on two essential pillars, the full timely payment of contributions and the effective, transparent, and responsible use of the available resources. For several years now, the UN has been facing recurrent liquidity difficulties. This is mainly as a result of delay in the payment of mandatory contributions, which is sometimes involuntary, and the fact that the financing of the organization falls mainly in the hands of a limited number of member states. These financial constraints hinder the organization's ability to fulfill the mandates that member states provided with, particularly in the domains of peacekeeping and sustainable development, as well as protecting and promoting human rights. Nevertheless, we are pleased to see that by the 30th of September of this year, 141 member states, including Haiti, had paid their full contribution to the regular budget. We also note that Many member states have fulfilled their financial obligations pursuant to the peacekeeping budget, as well as the residual mechanisms for the international tribunals. We believe it is critical to step up these efforts to strengthen the organization's financial resilience and to allow the organization to effectively address the current global challenges. With this in mind, my delegation encourages all Member States to fulfill their financial obligations in full and on time pursuant to the provisions of the Charter. Mr. Chair, to achieve greater financial stability for this organization, my delegation believes that we need to continue reviewing more predictable and flexible financing mechanisms, to strengthen efficiency, transparency and the sound management of resources, to promote voluntary contributions while fully respecting the intergovernmental mandates and the independence and integrity of the Organization. In conclusion, it is our collective responsibility to equip this Organization with predictable, lasting resources that it needs to fulfill its mandates effectively and to respond to the various challenges that the world is facing today. Thank you.

I thank the distinguished representative of Haiti, and I give the floor to the distinguished representative of China.

Mr. Chair. China thanks USG Pollard for her updates on UN's financial and liquidity situation. China aligns itself with the statement by Uruguay on behalf of G77 and China and wishes to emphasize the following points: First, As the second largest financial contributor to the UN, China has always been committed to fulfilling its financial obligations. Through concrete actions, China has supported the UN's work and has collaborated with all parties in a responsible and constructive spirit to help the organization continuously improve its financial situation. Second, all member states should demonstrate their support for the UN through concrete actions by fulfilling by fully meeting their financial obligations and providing the resources necessary for mandate delivery. In June this year, the Fifth Committee achieved a positive outcome on a revised mechanism for the return of credits. Nonetheless, it must be emphasized that the long-standing arrears of the largest contributor remain the primary cause of the liquidity crisis. We urge the country concerned to earnestly fulfill its financial obligations and pay its assessed contributions to both the regular budget and peacekeeping operations in full and without conditions. Third, while the UN's financial situation has shown some improvement, we expect the Secretariat to take more robust measures to fully implement the UNAT initiative, honestly carrying out the GA resolutions on zero-based budgeting and a culture of efficiency and effectiveness, further advance cost-saving and efficiency-enhancing reforms, uphold strict financial discipline, make prudent, effective use of valuable resources contributed by Member States. Thank you, Chair.

I thank the distinguished representative of China, and I give the floor to the distinguished representative of Indonesia.

Thank you, Mr. Chair. Indonesia aligns itself with the statements delivered by Uruguay on behalf of the Group of 77 and China, and Singapore on behalf of the ASEAN. Indonesia appreciates the updates on the financial situations of the UN provided by USG, Ms. Katherine Pollard, and Comptroller, Mr. Chandru Ramanathan. While regular budget collections have improved, Indonesia remains concerned about the persistent liquidity challenges facing the Organization. Mr. Chair, Indonesia wishes to highlight the following points. First, timely payment of assessed contributions is the key to resolving the liquidity crisis. Adequate and predictable resources are essential for the full and effective implementation of mandates approved by Member States. Member States must fulfill their financial obligations by paying assessed contributions in full, on time, and without conditions, while also recognizing the genuine constraints faced by some Member States. Second, the financial sustainability of peacekeeping operations must be safeguarded. As peacekeepers operate in increasingly complex environments, maintaining their operational readiness and capacity to respond to evolving threats remains essential. Timely reimbursement for personnel and contingent-owned equipment is crucial to sustaining the contributions of troop and police contributing countries. Existing liquidity management arrangements, including the Peacekeeping Reserve Fund, cross-borrowing among active missions, and other contingency measures may help address temporary cash shortfalls, but cannot replace adequate funding and must not compromise the safety and security of the personnel. Third, strong oversight, transparency, and accountability remain fundamental. Indonesia welcomes the General Assembly's decision on the revised credit return methodology. The implementations of this methodology must be accompanied by effective oversight and transparent reporting throughout the trial period. In this regard, the review by the UN BOA will be important in assessing the effectiveness of this methodology. Any shortcomings identified during the trial period should be addressed in a timely manner. Mr. Chair, Indonesia remains committed to constructive engagement towards collective and sustainable solutions to the financial challenges facing the UN. I thank you.

I thank the distinguished delegate from Indonesia. If there are no comments, we have thus concluded our consideration of this item at this stage. I would like to pause for a few moments to enable changes to the seating at the podium so that we may begin the next item of our agenda. I next invite the Committee to resume its consideration of agenda item 138, entitled Proposed Programming Budget for 2027, in particular, the question of the GIU reports. Under this agenda item, in accordance with General Assembly resolution 50/233, I invite the Inspector of the Joint Inspection Unit, Mr. Pavel Chernikov, joining us remotely from Geneva to introduce the report of the Joint Inspection Unit on the review of the policies and practices for determining the rates of programme support costs in the organization of the United Nations system, as contained in document GIU/REP/2025/4. Mr. Chernikov, you have the floor.

Thank you very much, Mr. Chair. Distinguished delegates, thank you for the opportunity to introduce on behalf of my co-author, Inspector Carolina Fernandez-Apasso, our team and myself, the report entitled, "Review of the Policies and Practices for Determining the Rates of Program Support Costs in Organizations of the United Nations System: Comparative Analysis," as contained in documents GIU Rep 2025/4 and GIU Rep 2025/4 expanded report, which represents an updated reference document on the topic for the use of delegates and other stakeholders. The report provides an analysis of how the GIU participating organizations define structure and apply PSC rates. It highlights the absence of the common definition of program support costs across the system and shows that approaches continued to differ due to organizational mandates, business models and funding modalities. Based on analysis conducted, The inspectors recommend organizations to adopt clear stand-alone policies on program support costs and/or cost recovery, containing several main elements, and make them publicly accessible on their websites, recommendations 1, 2, and 3. The inspectors also suggest that a prudent and cautious approach to managing expenditures related to program support costs be continued to ensure that organizations remain within existing resources. On the related issues, the inspectors express a view that the cash upfront collection of voluntary contributions is a prudent practice particularly in the current context of increased financial challenges and propose that it be followed. Regarding the comments of the Secretary General and those of CAB, which are included in the management response issued in document A8187 addendum one, the inspectors welcome and overall support of the recommendations by the participating organizations. Regarding two observations by the UN Secretariat, the inspectors do not see a problem with the organization having two policy documents, a general one on cost recovery and more specific one on PSC rates. With respect to distribution of authority in the United Nations between different branches of power, the inspectors consider that this is a policy matter for the General Assembly to decide upon. The inspectors would also like to express their profound gratitude to everybody who contributed to this review and to emphasize that all comparative tables contained in the extended report represent a compilation of information provided by the executive management of the GIU participating organizations, and that the inspectors were happy to provide the latter with the opportunity to share with the readers their vision of the subject. Thank you for your kind attention.

I thank Mr. Chernikov for his statement. I now invite the Senior Programming Management Officer of the United Nations Chief Executive Board for Coordination, Ms. Federica Pietrachi, to introduce the note by the Secretary-General transmitting his comments and those of the United Nations System Chief Executive Board for Coordination on the report of the Joint Inspection Unit entitled "Review of the policies and practices for determining the rates of programming support costs in organization of the United Nations system, contained in document A/A1/A7/Add.1. Ms. Pietrachi, you have the floor.

Thank you, Chair. Distinguished delegates, I have the honor to introduce, on behalf of the United Nations System Chief Executives Board for Coordination, CEB, the note by the Secretary General conveying his comments and those of CEB member organizations on the Joint Inspection Unit report contained in document A/81/87, addendum 1. Organizations welcomed the report and recognized the value of the comparative system-wide information it provides on policies and practices relating to program support costs and cost recovery. They considered the report a useful contribution to enhancing transparency and promoting a better understanding of the diversity of approaches across the system. Organizations broadly supported the proposed recommendations and noted that their implementation should continue to take into account their distinct mandates, governance arrangements, and policy frameworks. In this context, organizations highlighted the importance of building on existing institutional frameworks while allowing for differences in applicable policies and procedures across organizations. On behalf of the organization of the UN system, I'd like to thank the Joint Inspection Unit for their timely comparative analysis and its contribution to promoting greater transparency and informed dialogue on program support cost policies across the UN system. Thank you, Mr. Chair.

I thank Ms. Pietrachi for her introduction. Also, under the same agenda item, in accordance with General Assembly resolution 50/233, I would also like to draw your attention to the report of the Joint Inspection Unit entitled "Review of the health services in the United Nations system", contained in document GIU/REP/2025/6. and to the note by the Secretary-General transmitting his comments and those of the United Nations System Chief Executive Board for coordination on that report of the Joint Inspection Unit, contained in document A/81/90/Add.1. The attention of the Committee is further drawn to the related introductory statement of the Joint Inspection Unit and of the Secretariat of the United Nations Chief Executive Board of Coordination, which are available on the Fifth Committee website. The floor is now open for any delegation who would like to make a statement. I now give the floor to the distinguished representative of Uruguay on behalf of the G77 and China.

Thank you, Mr. Chair. I have the honor to deliver this statement on behalf of the Group of 77 and China on the Joint Inspection Unit's reviews of program support cost rates and health services in the United Nations system. The group thanks Mr. Pavel Chernikov, Inspector of the Joint Inspection Unit, and Ms. Federica Pietrachi, Senior Program Management Officer of the CEB Secretariat, for introducing the relevant reports. The group reaffirms the important role of the Joint Inspection Unit as an independent external oversight body with a system-wide mandate. Its comparative reviews provide a valuable basis for identifying good practices, improving coordination, and supporting the efficient and accountable use of resources entrusted to the organization. Turning first to program support costs, the group notes the diversity of policies, methodologies and rates across the United Nations system. We recognize that these differences reflect, among other factors, distinct mandates, funding structures and operational requirements. Comparisons should therefore take these circumstances into account and be supported by clear explanations of the costs covered and the basis on which rates are determined. The group attaches importance to the fair allocation of support costs and to avoiding the diversion of regular resources to subsidize activities financed through earmarked contributions. At the same time, the arrangements applied should support effective program delivery and provide member states and other partners with understandable and reliable information. In this regard, we see value in clearer definitions of direct and indirect costs, accessible policy documents, and transparent explanations of preferential rates, reductions, and waivers where applicable. We take note of the Secretariat's distinction between the framework's governing program support costs and cost recovery. We also encourage realistic estimates of program support income and expenditure and clear information on the management and use of related balances and reserves. Sharing experience through existing interagency mechanisms could help strengthen coherence and transparency while respecting the authority of the relevant governing bodies and the circumstances of individual organizations. Mr. Chair, turning to health services, the group recognizes that the health and well-being of United Nations personnel are essential to the effective discharge of the organization's responsibilities. We appreciate the contribution of medical and counseling personnel, including those serving in challenging field environments. The review highlights the importance of clear responsibilities, effective coordination, and appropriate arrangements for medical supervision. We encourage efforts to clarify the functions of health services, including at offices away from headquarters and regional commissions, while taking account of existing governance structures and local operational needs. The group attaches particular importance to the confidentiality of medical information and psychosocial services, as well as the professional autonomy necessary for their proper delivery. We also recognize the value of assessing gaps in access to health care, particularly in field and incorporating health and occupational risks into risks management processes. Cooperation among organizations and the effective use of joint or common medical services can help address shared needs and avoid duplication. Such arrangements should be reviewed as appropriate to ensure that they remain responsive and sustainable. Attention to occupational health, prevention, and mental well-being should form part of these efforts. The group takes note of the comments on both reviews and considers that follow-up should be practical and proportionate, building on existing arrangements and taking account of mandates, available capacities and resource implications. The Group of 77 and China remains committed to engaging constructively in deliberations on these reports with a view to strengthening transparency, accountability and effective support for mandate implementation. I thank you.

I think the distinguished representative of Uruguay. If there are no further comments, the committee has thus concluded its general discussion of this question at this stage. Informal consultations on the reports just introduced will be coordinated by Mr. Erik Bjorne of Sweden. Before adjourning this formal meeting, I would like to draw the attention of the committee to the following document. Issue under agenda item 139, program planning. The letter dated 7 October 2026 from the chair of the second committee addressed to the chair of the fifth committee containing document A/C.5/81/5. I would also like to remind delegations that the deadline for the submission of nominations and endorsements of candidature for the appointments falling under the purview of the Fifth Committee under agenda item 119, appointments to fill vacancies in subsidiary organs and other appointments, is this Wednesday, 21 October, close of business, 6 p.m. I would further like to request delegations who have not already done so to submit through the e-list of participants module on e-delegates the name of the representative alternative and advisors as soon as possible, but no later than the close of business, 6:00 p.m. on Friday 30 October, so that a list of the membership of the Fifth Committee can be issued promptly. The meeting is adjourned.