Mr. Chairman,

I have the honour to speak on behalf of the Group of 77 and China on agenda item 118: Programme Budget for the Biennium 2008-2009 - International Public Sector Accounting Standards.

2. We thank the Controller, Mr. Mr. Jun Yamazaki, for introducing the first progress report of the Secretary-General on the adoption of International Public Sector Accounting Standards by the United Nations (A/62/806). We would also like thank the Chairperson of ACABQ, Ms. Susan McLurg, for the introduction of the Committee's related report (A/63/495).

Mr. Chairman,

3. In its resolution 60/283, the General Assembly approved the adoption by the United Nations of the International Public Sector Accounting Standards (IPSAS), as well as the resources requested to begin the process of implementing IPSAS. This decision was taken in conjunction with the replacement of the Integrated Management Information System (IMIS) with a next-generation enterprise resource planning system (ERP).

4. The Group of 77 and China have always been supportive of measures aimed at enhancing the credibility, transparency and accountability of the financial processes and transactions of the United Nations. We consider the adoption of the IPSAS and the implementation of the ERP a valuable opportunity to achieve concrete progress in this area.

Mr. Chairman,

5. The Group of 77 and China believes that the implementation of IPSAS should be used by the Organization as an opportunity to overcome some of the existing problems of its current accounting system. For instance, the new system must ensure that the financial statements of different entities of the United Nations system are consistent and comparable. In this regard, it is important to guarantee uniformity in the application of the IPSAS standards within the United Nations system. As Chairman of the CEB, the Secretary-General should continue coordinate all aspects related to the transition from the United Nations System Accounting Standards to IPSAS.

6. The Group of 77 and China notes the Secretary-General's comment that, in order to meet the target of 2010 for adoption of IPSAS, significant progress must be made towards the implementation of the required information systems, the establishment of detailed IPSAS-compliant procedures and the training of staff by the end of 2009.

7. The Group emphasizes the importance of ensuring that staff is fully trained in IPSAS in advance of its implementation. Resources associated to the implementation of IPSAS have been provided to the Secretary-General in the past and current biennia. The Secretariat should make full use of these resources in carrying out a comprehensive training strategy, in order to minimize the considerable risks involved in the transition process.

8. The Group of 77 and China recognizes that a timetable for implementation of IPSAS should be realistic and synchronized with the introduction of the new information technology system. We note the observation made by the Board of Auditors that a delay in funding of the ERP would have a direct impact on the implementation of IPSAS and would be likely to result in its postponement to 2011 at the earliest. In this regard, the Group reiterates its call on Member States to provide adequate funding to all mandated activities of the Organization, including to its reform initiatives.

I thank you, Mr. Chairman.