resource outlook for1985and1986,wasreported totheUNDPGoverning Councilat itsthirty-second session inJune1985(DP/1985/54). 3.Theexplanation provided bytheAdministration concerning thedecrease inIPF expenditures isfairlyreflected inthereportoftheBoardofAuditors. However, asstatedinparagraph 20ofthereport, theAdministration isindeedconcerned abouttheoverall reduction inprogramme expenditures inrecentyearsaswellas theability ofUNDPanditspartners toforecast expenditure andplanresource utilization withagreater degreeofaccuracy. Recognizing this,ajointstudy withtheexecuting agencies wasinitiated earlythisyearinordertoidentify (a)additional factors ortrendsthatmayhavecontributed tothedecline, and (b)operational measures thatmaybeundertaken toimprove delivery. Toconduct thisreview, aUNDPmission visited executing agencies andheldextensive consultations withpeopleinvolved inthevarious stagesoftheprocessof programme delivery andimplementation. Onthebasisofthemission's findings, the Administrator hasinitiated several follow-up actions involving UNDPfieldoffices, theexecuting agencies andrecipient Governments. TheGoverning Council duringits thirty-second session alsotookaparticular interest inthesubject andin informal consultations members welcomed themeasures initiated bythe Administrator. Someofthesemeasures referred toaboveare: (a)UNDPexamined itsownresource management practices toseeiftherein washeldalittletootightly andwhether controls forlimiting expenditures within available resources mayhavebeentoo'strict. Asaresultofthisreview, the Administrator concluded thatfortheperiod1985-1986 itmightbehelpful to establish limitations onprogramming forthetwoyearstakentogether, ratherthan limitations ontheindividual yearsaswasdoneinthepast.Thismightprovide someadditional-measure offlexibility toresident representatives inplanning theirprogrammes for1985and1986. (b)TheAdministrator hasidentified certain areasofmanagement inwhich agencies andUNDPcantogether implement several improvements. Forinstance a rephasing exercise, particularly forlarge-scale projects, inOCtober should mak~ knowntheavailable resources forthenextyeartoallowearlyimplementation action. Theinstructions dealing withrevisions ofnewprojects willbereiterated -29-I ing to 983 ''1 .on ,Jr.Ill.OBSERVATIONS OFTHEADMINISTRATOR OFUNDPONTHECOMMENTS ANDRECOMMENDATIONS OFTHEBOARDOFAUDITORS Introduction 1.ThereportoftheBoardofAuditors isreproduced insection IIabove. The observations oftheAdministrator onthepointsraisedbytheauditors aregivenin thefollowing paragraphs andareintended tosupplement theviewsofthe Administration, asalready contained intheauditors' report, byprovidin9 further information orclarification wherethisappears appropriate. Forconvenience, the relevant paragraph numbers ofthereportoftheBoardofAuditors areshown alongside theheadings oftheAdministrator's observations. Thefinancial situation ofUNDP(audit,paras.15-20) 2.Abriefsummary ofthefinancial situation ofUNDPisgivenin paragraphs 15-17ofthereportoftheBoardofAuditors andadetailed analysis of thefinancial situation ofUNDPasat31December 1984,including aforecast of resource outlook for1985and1986,wasreported totheUNDPGoverning Councilat itsthirty-second session inJune1985(DP/1985/54). 3.Theexplanation provided bytheAdministration concerning thedecrease inIPF expenditures isfairlyreflected inthereportoftheBoardofAuditors. However, asstatedinparagraph 20ofthereport, theAdministration isindeedconcerned abouttheoverall reduction inprogramme expenditures inrecentyearsaswellas theability ofUNDPanditspartners toforecast expenditure andplanresource utilization withagreater degreeofaccuracy. Recognizing this,ajointstudy withtheexecuting agencies wasinitiated earlythisyearinordertoidentify (a)additional factors ortrendsthatmayhavecontributed tothedecline, and (b)operational measures thatmaybeundertaken toimprove delivery. Toconduct thisreview, aUNDPmission visited executing agencies andheldextensive consultations withpeopleinvolved inthevarious stagesoftheprocessof programme delivery andimplementation. Onthebasisofthemission's findings, the
**Analysis**
The text appears to be discussing the financial situation and resource management practices of the United Nations Development Programme (UNDP), specifically its International Programme for Development (IPF) expenditures. The report mentions the reduction in programme expenditures in recent years and the need to improve forecasting and planning of resource utilization. The text also mentions a joint study with executing agencies to identify factors contributing to the decline and to improve delivery. This suggests that the text is related to economic development and international cooperation.

**Category**
Economic development, International trade