A/AC.96/678/Add.2 page 2
72. The Advisory Committee accepts that UNHCR often has to operate under unusual circumstances which may make difficult the application of normal
In this connection, the procedures that govern the areas listed above. Committee has noted many instances in which implementing partners, including specialized agencies, Governments, governmental agencies and non-governmental organizations, did not meet fully their obligations under the contractual arrangements with UNHCR with respect to the implementation of projects. Nevertheless, the Advisory Committee believes deficiencies on the part of the implementing agencies do not absolve UNHCR from its responsibility to correct the weaknesses revealed by the Board.
73.
The Advisory Committee points out that the High Commissioner himself, in his report A/AC.96/677 (Part I), paragraph 1.11.6, on UNHCR activities, emphasizes the role of that organization in this regard, when he states "Although the sovereign rights of host Governments and the contractual arrangements between UNHCR and implementing partners must always be respected, UNHCR remains fully operational in the sense of being responsible and accountable for the effective planning and design of projects and their
This in no way overall supervision, monitoring, control and evaluation. detracts from the key role of implementing partners but simply reflects the primary role and responsibilities which UNHCR must discharge."
74.
Procurement practices are considered in paragraphs 66 to 81 of the Board's report. The Board details a number of cases in which competitive bidding was waived. While the Advisory Committee agrees that emergency circumstances may make it difficult to carry out competitive bidding, it believes that for ongoing projects care should be taken to ensure that there are opportunities for competitive bidding.
75. The Board also details a large number of instances where receiving reports did not cover purchase orders established for goods shipped to various field offices (paras. 76 to 81 of the Board's report). The Advisory Committee believes that the submission of receiving reports is an elementary requirement in ascertaining whether goods dispatched have reached their destination in good order. In addition to the information contained in the report of the Board of Auditors, the Committee notes from document A/AC.96/677 (Part I), paragraphs 1.12.7 and 1.12.8, that "In 1985, UNHCR purchased goods and services worth $ 83 million..." and "Refugee food aid from all sources in 1985 had a value of over $ 200 million of which just under $ 65 million were channelled through UNHCR". In view of the magnitude of resources involved, the Committee stresses the need to comply with the required procedures.
76.
In paragraphs 82 to 94 of its report, the Board discusses various matters relating to cash management. The Advisory Committee believes it is essential to ensure that cash management systems are operating flawlessly and trusts that the problems raised by the Board of Auditors will be immediately corrected.
77.
With regard to the commingling of UNHCR and agency funds (paras. 88 to 91 of the Board's report), the Advisory Committee is of the view that although technically there may be no specific requirement regarding the establishment of separate bank accounts, it is nevertheless extremely difficult to control the use of funds without maintaining separate accounts.