Madam Chair,

1. I have the honor to deliver this statement on behalf of the Group of 77 and China under agenda item 134, "Review of the efficiency of the administrative and financial functioning of the United Nations" on cost-recovery.

2. The Group thanks the Deputy Controller, Director of the Finance Division, Ms. Maria Costa, for the introduction of the Secretary-General's report, as well as the Chair of the Advisory Committee on Administrative and Budgetary Questions, Ms. Juliana Gaspar Ruas, for presenting the related report.

3. The Group welcomes the efforts undertaken by the Secretary-General to enhance transparency and strengthen the overall governance of cost-recovery arrangements across the Secretariat. We appreciate the progress made in improving reporting practices, consolidating information and advancing system-wide tools that contribute to better oversight and financial management. In this regard, we note the observations of the Advisory Committee on the continued development of regulatory frameworks, including the issuance of the cost-recovery policy and guidelines in 2021, updated in April 2025, aimed at reinforcing accountability and coherence across entities.

4. At the same time, the Group shares the view of the Advisory Committee that further work is required to enhance comparability over time, monitoring and methodological clarity. We underline, in particular, the importance of strengthening the cost-tracing framework and ensuring a clearer link between resources, workload indicators and service delivery expenditure, consistent with the principles of full cost recovery and transparency. We also note the Advisory Committee's emphasis on the need for more detailed and consistent reporting on cumulative fund balances, including greater transparency regarding the use of cost-recovery balances for capital planning and long-term investments, the classification of spendable and non-spendable revenue and the application of standardized rate cards, which remain essential to prevent cross-subsidization and ensure equitable treatment across funding sources.

5. The Group further notes the observations of the Advisory Committee related to the review of the remaining balances of accumulated surpluses; the absence of policy options for the allocation or utilization of generated interest revenue, as requested by the General Assembly; and the need for more comprehensive and harmonized reporting on cost-recovery activities, including clearer differentiation between assessed and non-assessed funding streams. In this regard, we request the Secretary-General to accelerate the review and clean-up cumulative fund balances and to return the eligible remaining surplus to Member States in a timely manner. We further believe the General Assembly should remain seized of this agenda item in its further sessions, and we encourage the Secretariat to provide clearer forward-looking analysis and policy-oriented options to support informed decision-making by Member States.

6. Last but not least, the Group notes that the General Assembly noted the findings of the Board of Auditors regarding cost-recovery resources in its resolution 80/231 and encourages the Secretary-General to implement these recommendations in a timely manner.

7. In conclusion, Madam Chair, the Group of 77 and China reiterates the importance of maintaining transparent, predictable and equitable cost-recovery practices that fully reflect the guidance of the General Assembly. The Group remains ready to engage constructively with all partners during this resumed session to further strengthen governance, accountability and oversight in this important matter.

I thank you.