Formalagreement withthehostGovernment 74.Wenotedthatthebasicassistance agreement between theGovernment andUNDP, stipulates thattheGovernment undertakes toprovide inkindthenecessary office spaceandotherpremises, nolongerreflects theactualsituation asregards UNDP housing andpremises inthecountry. 75.Theconstruction ofthenewUnitedNations commonpremises onGovernment property indeedconstitutes afundamental changeinthismatter. Therefore, the intentexpressed inaletterdated3March1977bywhichtheGover.nment wouldbe prepared to"undertake nottotransfer orotherwise dispose ofthebuilding aslong asUNDPoccupies it,itbeingunderstood thatthetitleofthebuilding, rightsand interest inthesitearevestedintheGovernment" shouldbeendorsed byboth parties concerned. Forthatreason, weadvised thatanewformalagreement onthe termsandconditions governing theconstruction andoccupation ofthenewUnited Nations premises shouldbesought. 76.TheAdministration agreedinprinciple withourobservation butstatedthat theoccupancy rightsandotherbasicfacilities ofUNDParespelled outinan exchange ofletter.s between thefieldofficeandthehostGovernment. Thismatter is,however, b~ingreferred totheUnitedNations OfficeofLegalAffairs for advice. -27-I IConstruction ofUnit~dNations commonpremises inthefield Latecompletion ofconstruction wor~ 71.Inaparticular caseoftheconstruction ofnewUnitedNations commonpremises inacountry, wenotedserious shortcomings anddeficiencies inthebasic contractual agreements, thepreliminary planning anddesignaswellasthe day-to-day supervision andfollow-up onconstruction activities. Asaresult, the newbuilding, whichshouldhavebeencompleted notlaterthan12March1982,was notreadyforoccupancy andafinalbillwasnotyetsubmitted bythecontractor in September 1984. 72.Westressed thattheseshortcomings anddeficiencies inmanagement ledtoan important increase indirectandindirect costsandnoticed inparticular that despite adevaluation ofthelocalcurrency vis-a-vis theUnitedStatesdollar, the totalbuilding costsestimated at$946,373 inJuly1980hadgoneupto$1;474,991 inJune1983. 73.TheAdministration agreedth;:"thelackofworking drawings wasoneofthe reasons forthedelaybutstated c.••atitwasnotpossible toforesee fromthestart thatitwouldtakesolongtocomplete thebuilding. TheAdministration addedthat sincetheconstruction tookplaceinaleastdeveloped andland-locked country, almostallfixtures andmaterials aswellasconsulting services hadtobeobtained fromabroadJ thisresulted inlongdelaysindelivery andinsomecasesheavy damageresulting intheneedtore,order. Formalagreement withthehostGovernment 74.Wenotedthatthebasicassistance agreement between theGovernment andUNDP, stipulates thattheGovernment undertakes toprovide inkindthenecessary office spaceandotherpremises, nolongerreflects theactualsituation asregards UNDP housing andpremises inthecountry. 75.Theconstruction ofthenewUnitedNations commonpremises onGovernment property indeedconstitutes afundamental changeinthismatter. Therefore, the intentexpressed inaletterdated3March1977bywhichtheGover.nment wouldbe prepared to"undertake nottotransfer orotherwise dispose ofthebuilding aslong asUNDPoccupies it,itbeingunderstood thatthetitleofthebuilding, rightsand interest inthesitearevestedintheGovernment" shouldbeendorsed byboth parties concerned. Forthatreason, weadvised thatanewformalagreement onthe termsandconditions governing theconstruction andoccupation ofthenewUnited Nations premises shouldbesought. 76.TheAdministration agreedinprinciple withourobservation butstatedthat theoccupancy rightsandotherbasicfacilities ofUNDParespelled outinan exchange ofletter.s between thefieldofficeandthehostGovernment. Thismatter is,however, b~ingreferred totheUnitedNations OfficeofLegalAffairs for advice. -27-I ICasesoffraud 77.TheBoardhasbeeninformed ofeightcasesoffraudinvolving certainstaff members infieldoffices. Fiveofthesecasesconcerned thesubmission offalse claimsormisappropriations ofUNDPproperty without anyfinancial implication to theorganization, whilefortheother ~hreecasesthetotalamountof misappropriations (approximately $3,685) hasbeenfullyrecovered fromthestaff members' entitlements. Agencystatements 78.Thefinancial statements ofUNDPinclude amounts reportad bytheparticipating andexecuting agenci~s. TheBoardofAuditors, asinprioryearsandin consideration ofarticle XVIIoftheFinancial Regulations ofUNDP,hasnot audited thesebalances and,asinthepast,willrelyuponcertificates provided to
**Analysis**
This text appears to be related to the management and administration of a United Nations Development Programme (UNDP) project in a specific country. It discusses issues such as housing and premises, construction delays, and cases of fraud, which are likely to be related to the organization's operations and management.

**Category**
Humanitarian aid and relief, International organizations