Tag Archives: transparency

UN Agencies Sitting on Billions in Cash Reserves, Refuse Full Compliance with Auditors

By Wendy Wright

(NEW YORK C-FAM) A confidential audit of UNICEF and UNFPA found “gross” failures in transparency and surprisingly billions of dollars of unspent cash. Both agencies refused to disclose information on staff costs and travel. The auditor found that donors have “little knowledge regarding the ultimate destiny” of funds.

Fox News editor George Russell studied the yet-to-be-disclosed two-volume draft report written by the consulting firm IDC at the request of the government of Norway. UNFPA and UNICEF refused to answer Fox News’ questions, other than claiming the cash reserves were earmarked for future work on programs.

The audit of five UN agencies sought to discover “where does the money go.” The report found UNFPA and UNICEF had $3.2 billion in cash in 2009. UNICEF, which is free to spend money where it wants despite the project that earned it, gained $109 million in interest income in 2008. The United Nations Development Program had $5 billion in cash reserves, invested large amounts on bonds, and increased personnel costs 80% in the last decade. These together with the World Food Program (which alone was judged transparent and its performance “impressive”) had $12.2 billion in unspent cash. The United Nations High Commission on Refugees did not have a cash stockpile but refused to disclose spending, particularly on staff costs.

The report found UNFPA was unable, or unwilling, to account for $200 million a year funneled to governments and non-governmental groups. It refused to disclose details of wages, salaries, travel, consultant costs, and other items. The report declared, “UNFPA fails grossly” in its official commitment to transparency.

Details on UNICEF’s overhead were lacking, and scraps of information on expenditures make “it difficult to track use of funds from headquarters down to the ultimate beneficiaries on the ground.” It, too, could not account for expenditures within countries, which is the majority of its spending, earning a designation of “gross failure.”

Several UN agencies are increasingly focusing on giving policy advice and advocacy, and relying on others to deliver goods and services. They form vague strategic plans at headquarters that defy tracking outcomes or progress within countries. The UN refugee agency delegates most of its program activities to “implementing partners” that do the work on the ground.

The study warned that the hoard of money “implies that substantial donor funding is not being used for development purposes.” Donors may be reluctant to fund the UN until the “reserves are utilized.”

For years UN agencies have resisted divulging their finances. Government officials have suspected the lack of transparency hides lavish salaries and expensive travel. Diverting funds to non-governmental groups provides a coterie of accomplices who defend the UN agencies.

Shadowy accounting often signals systemic waste, fraud and abuse. In a moment of candor in 2007, a UNFPA executive boasted at a conference that, though the agency was barred from directly funding abortion, it disburses money to abortion providers.

An examination of UNFPA annual reports finds its budget ballooned from $249.9 million in 1999 to $870 million in 2010. Despite its vast resources and audit failure, in November it urged leaders to “galvanize greater political, financial support for family planning.”

Wendy Wright is Interim Director of C-FAM whose article first appeared in the Friday Fax, an internet report published weekly by C-FAM (Catholic Family & Human Rights Institute), a New York and Washington DC-based research institute (http://www.c-fam.org/). This article appears with permission.

Transparency in the Health Care Reform Debate

By Rep. Steve Austria

House and Senate Democratic leadership continue to negotiate health care reform in an attempt to reconcile the differences between the house-passed and senate-passed versions. Recently, the President of C-SPAN, Brian Lamb, sent a letter to House and Senate leaders requesting that they be allowed to televise the current negotiations, which will decide the ultimate fate of the legislation. House and Senate Democratic leadership largely denied the request.

The potential passage of health care reform has widespread implications for all Americans and it is imperative that these negotiations are not done behind closed doors. The American people and Members of Congress need to have access to the talks so they can adequately evaluate the merits of the bill.

New Year Resolutions For Local Officials

Making resolutions is a tradition of the New Year’s holiday. Most organizations establish plan objectives in order to reach their goals. One example of an organizational objective is to reach a specified number of potential customers, clients, or audiences. Another might be to recruit a certain number of new members, clients, new readers, or new businesses. Still another objective might be to increase revenue by a targeted amount whether in the form of sales, membership dues, or taxes.

In the spirit of setting corporate goals, I propose two New Year resolutions that would improve the service of public officials to those who pay them their salaries and that might increase public respect of the same.

Resolution one. Treat Xenia taxpayers like stakeholders and investors. To accomplish this goal, the City will create and distribute to every taxpayer a corporate-like annual report that includes goals, accomplishments, new issues, and simplified financial statements.

Government exists to serve specific needs of the citizens who created it. Services needed by local citizens include police and judicial protection of property and person, facilitation of economic prosperity, education, sanitation, and the like. Like investors in for-profit business, taxpayers invest their hard-earned money into government. Taxpayers have a right to expect a return on their investment (ROI). It could even be said that they are obligated to demand measurable results. To achieve this reasonable demand, city officials could create and distribute an annual report as stated above. An annual report would provide taxpaying investors both with measured and comprehensive results of service achievement and with financial accountability by means of simplified financial statements.

Some people will like react negatively to this resolution because they believe the cost are not justified, That is, they believe the money would be better spent on paving streets, repairing equipment, or some other necessary expenditure. It must be admitted they are mostly right.

The city spends tens of thousands of dollars for each levy campaign to increase taxes. Yet, most local taxpayers have no real clue why the money is needed, whether the need is legitimate, how tax revenue is in a reserve fund, or whether some of that reserve could be used for a proposed levy. It is for these and similar reasons that an annual report widely distributed would provide all taxpayers will the necessary information to overcome such ignorance. In short, such an annual report would go along way in making Xenia taxpayer informed citizens–one of the more important requirements for good decision-making in a participatory democracy.

Resolution two. Honesty and transparency is the only public policy worthy of the public trust. Therefore, honesty and transparency in all public issues, ordinances, levies, and all other public matters will always be practiced. If it is found to be otherwise, any legal matter involved will be deemed null and void.

Not only are taxpayers not treated as investing stakeholders in their public institutions, but they are treated like consumers and dupes. The underlying view of citizens and taxpayers by officials is the old sales adage: “A sucker is born every day.” The mentality is if you are stupid enough to buy the lies and half-truths, you deserve what you get. What school officials gave South Hill residents and taxpayers in general was a royal snow job. Officials said that a soil study was conducted showing that the school was atop a high water table, which was the cause of a flooding problem in the basement of Spring Hill elementary school. Because of this, Spring Hill could not be rebuilt.

However, the official geological study also states that all of Xenia is on just as high a water table. In fact, the land Tecumseh is built on is even more prone to flooding than at the Spring Hill site. The fact is officials have no good reason not to rebuild Spring Hill on the same site. Certainly, Spring Hill has no greater land limitations than at Shawnee Elementary.

Any votes for public money schemes based on such misleading information should nullify those votes in favor of it.