Summary: Pursuant to a congressional request, GAO reviewed the: (1) United Nations Environment Program's (UNEP) accounting practices, financial reserves, and general efficiency and effectiveness; and (2) extent of U.S. influence in the organization.
GAO found that UNEP: (1) received financing from the United Nations budget, trust funds, other miscellaneous income, and voluntary contributions to the Environment Fund, to which the United States was a major contributor; (2) for its 1988 through 1989 biennial budget, allocated $25.8 million for operating expenses, $60 million for its environmental programs and projects, and $2 million for its fund program reserves; (3) adjusted its financial reserves each biennium to equal 7.5 percent of its budget to guarantee the Environment Fund's financial liquidity and integrity; (4) administered 22 trust funds with a total balance of $17.4 million in December 1987; (5) has successfully created various conventions and protocols on environmental conservation, addressed several environmental issues of global importance, and coordinated several environmental initiatives of special interest to the United States; and (6) made several organizational changes and improved management procedures after conducting a comprehensive self-assessment which identified project design and project link weaknesses and a tendency to dispense funds on many small projects rather than on a few major programs. GAO also found that the Department of State: (1) was satisfied with the level of U.S. influence in UNEP; and (2) had general goals to guide its participation in UNEP, but no longer prepared action programs defining U.S. goals and establishing specific and measurable plans for achieving objectives.
