Briefing on

• Contingent-Owned Equipment (COE) System

• Memorandum of Understanding (MOU)

• Claims

MCMS/FBFD/DFSMOU & Claims Management Service / Field Budget and Finance Division / Department of Field

Support

MOU and Claims Management SectionMain Responsibilities:• negotiations of MOU with TC/PC for

COE to be deployed to PKO & related calculations of the quarterly COE claims;

• certification of Death and Disability Claims for military troops /FPU personnel deployed in PKO;

• certification of LOA claims such as helicopter/aircraft flying hours, ship days (sea), troop rotation;

• certification of other claims: inland transportation of COE, painting and repainting of COE;

• coordination & organization of the tri-annual COE Working Group.

LSD PKO

FGS / PD

MCMS

Outline of Presentation• COE Methodology and COE Claims;

• Main steps of raising, negotiating and signing of Memoranda of Understanding (MOUs) with Troop/Police Contributors (TC/PCs);

• Other types of claims: troop cost, Letter of Assist and death and disability claims;

The COE MethodologySince 1 July 96 the reimbursement for deployment to

peacekeeping operations is based on a COE methodology characterized by:

• Standard MOU with TC/PCs;

• Standard reimbursement rates as approved by the General Assembly detailed in the COE Manual: Major Equipment (ME), Self-Sustainment (SS), Painting and Repainting of ME. Latest edition is 2008 COE Manual.

• Reimbursement rates are reviewed by the COE Working Group every three years. Last WG was in February 2008.

Memorandum of Understanding

PURPOSE:To establish the administrative, logistic and

financial terms and conditions to govern the contribution of personnel, equipment and services provided by the TC/PC in support of PKO and to specify United Nations standards of conduct for personnel provided by the TC/PC

Actions leading to MOU

• FGS/PD identifies potential TC/PCs when a new peacekeeping mission (PKO) is under discussion. FGS canvasses willingness of TC/PCs to participate in new PKO;

• Security Council authorizes a new peacekeeping mission (PKO) or an expansion of an existing PKO via a resolution;

• DPKO requests contribution from MS by an exchange of Note Verbales. Troop Contributor agrees to deploy to a PKO;

Negotiation and Signature of MOU• TC/PC submits organization chart of troops and COE, self-

sustainment capabilities and cargo load lists;

• FBFD/MCMS co-ordinates negotiations between TC/PC and UNHQ on draft MOU;

• TC/PC reconnaissance visit to PKO – (Recce visit within DPKO guidelines reimbursed by UN if unit deploys) normally 3 PAX.

• Continue negotiations of MOU after recce visit;

• Predeployment visit (PDV) by UNHQ and mission representatives to TC/PC’s capital;

• Final draft MOU sent to Permanent Mission (PM) to concur;

• MOU signed by DFS and PM.

• Once MOU is signed by both parties, reimbursement processing begins.

Negotiation of Memorandum of Understanding

Normally there is a delegation from Capital.

Delegation should have the proper authority to negotiate an MOU and be comprised of:- Military officer, preferably commanding officer of

the contingent unit, or senior military officer;- Logistics officer who knows the national equipment;- Relevant officers, e.g. Medical Officer for a Hospital,

Engineer for an Engineering Unit, etc.- Finance Officer or Auditor for some TC/PCs.

Delegation always at National expense.

Memorandum of Understanding

MOU “main body” Definitions Documents constituting the

MOU, Purpose Application Contribution of the

Government Reimbursement and support

from the UN General Conditions UN standards of Conduct Discipline Investigations

Exercise of jurisdiction by the Government

Accountability Specific Conditions Claims by third parties Recovery Supplementary

arrangements Amendments Settlement of disputes Entry into force Termination Signatures (USG for Field Support & Perm

Rep)

Memorandum of Understanding

The ABC of MOUs:• Annex A – lists the number of troops and the

soldier/police kit

• Annex B – lists major equipment that will be deployed and corresponding rates of reimbursement

• Annex C – self-sustainment capabilities a country will undertake, with corresponding rate of reimbursement

Memorandum of Understanding• Annex D: Principles of verification and

performance standards for major equipment provided under the wet/dry lease arrangements

• Annex E: Principles of verification and performance standards for minor equipment and consumables provided under self-sustainment

• Annex F: Definitions• Annex G: Guidelines (aide-mémoire) to Troop-

Contributing Countries (It is mission specific and is not included in the present document. It is distributed separately in advance of the deployment.)

• Annex H: United Nations standards of conduct: We are United Nations Peacekeeping Personnel

COE Claims Reimbursement• MCMS processes major equipment and self-

sustainment claims for all PKO missions.• Claims are processed each quarter based on

verification reports received• Claims are processed only for signed MOUs.

COE Methodology Life Cycle of the COE Procedures:

MOU

Negotiation

Deployment Reimbursement

Processing

Disbursement

Preparation

of VRsPre-

DeploymentVisit

Recce Visit

Components of the MOU for COE

MOU HOW many Troops

WHAT MajorEquipment

WHICH SSCategories

= ++

Inspections Performed - VRs

Calculate Reimbursements $$(MOU must be signed)

Standard Provisions

+

Major Equipment

Wet Lease Reimbursement system=reimbursement for equipment + maintenance costs + mission factors

-TCC provides:-Major equipment;-Maintenance;-Replenishment of spare parts and consumables;

Dry Lease Reimbursement system =reimbursement for equipment only

-TCC provides major equipment;ME operated/maintained by UN or 3rd party incl. another

TC/PC.

Major Equipment

• Wet or dry lease (Wet lease = dry lease + maintenance)

• Wet lease rates includes all spare parts, consumables, minor equipment, tools and workshops.

• Dry lease rate = cost/useful life in months

• Equipment defined as per COE Manual

• Special cases – Major Equipment not in COE Manual is negotiated on a case by case basis

• Reimbursement based on performance.

Major Equipment – Wet Lease

Contingent responsibility:• Deploy with serviceable equipment• Deploy with all minor equipment and

consumables associated with the major equipment

Allowed to deploy with 10% over MOU agreed levels to cover shortfalls.- UN will pay painting and repainting, transportation and third party liability insurance for the 10% back-up major equipment

- No reimbursement for the equipment in excess.

Self-Sustainment

• Contingent provides self-sustainment to UN standards, if they can not UN takes over the service

• Reimbursement based on amount per person per month per category as per standards approved by the General Assembly (COE Manual)

• Modular, no partial payment per category

• Inclusive of supplies and minor equipment

Self-Sustainment Categories

• Catering• Communications• Office• Electrical• Minor Engineering• Explosive Ordnance Disposal• Laundry & Cleaning• Tentage• Accommodation• Firefighting

Basic firefighting, Fire detection and alarm

Self-Sustainment Categories

• Medical Basic Level 1 Level 2 Level 3 Level 2 and 3

combined High Risk Areas Blood and blood

products

• Observation General Night Observation Positioning

• Field Defence Stores• Miscellaneous General

Stores Bedding Furniture Internet access Welfare

COE Claims (Annex B & C)

Timing of processing:

• VRs are forwarded by the Mission on a quarterly basis (Mar – Jun – Sep –Dec);

• VRs are the basis of the claims. No claims from Government necessary

• Current timelines are processing by above dates for previous quarter;

• Payments are based on cash position in each mission and decided by the Controller.

OTHER CLAIMS

• Operational ammunition• Vaccinations• Initial provisioning water, rations, fuel (POL)• Inland transportation• Loss or damage to COE – in mission or in transit• Loss or damage to personnel effects

TC/PC must submit claims.

TROOP COST (Annex A of MOU)The UN will reimburse the Government per

person per month as follows:• Troop cost at $1,028;• Personal clothing, gear and equipment

allowance at $68;• Personal weaponry and training

ammunition at $5; and • A specialists allowance at $303 for 25%

of the total strength for Logistics/enabling units and 10% for other units.

TROOP COST

The processing of amounts payable is done by Controller’s office.

Payments are based on monthly troop reports sent by each mission.

TROOP ALLOWANCEAllowances paid directly to the military

contingents in the field (including staff officers):

• A daily allowance of $1.28; and• A recreational leave allowance of $10.50 per

day, up to 7 days of leave taken during each completed six month period.

Letter of Assist (LOA)The LOA continues to be used to procure goods and services from TCCs in competition with commercial sources.

The LOA is a legally binding document, signed by both parties and determines the scope and cost associated with the activity.

LOAs are used mostly for transportation of COE and troops, aviation and naval support, and maps.

LOA ClaimsThe LOA must have been signed by the

Government;The TC must submit a claim;The UN reimburses LOA claims upon confirmation

by the Mission that the goods/services have been delivered/rendered;

Letter of Assist

Work-Flow for LOA

TC/LSD

Agree to Terms

of LOALSD prepares

LOA,

Signed by

both parties

TC Renders

Goods,

Services

TC Makes

Claim

LSD/MCMS

Processes

Death & Disability Claims for Military Contingents and Formed Police Units

Death: $50,000

Disability:

A percentage (%) of $50,000 as determined by the UN Medical Service based on the American Medical Association’s Guide to Evaluation of Permanent Impairment, 4th edition.

A detailed current medical report (preferably 1-2 months old) is required.

TC/PC must submit a claim.

Death & Disability Claims for Military Contingents and Formed Police Units

Work-Flow for New D&D:

TC submit

a claim MCMS reviews,

Requests NOTICAS

and

CONFIRMATION FAX

Completes

NOTICAS and

Confirmation FAX

TC >>> UNHQ

MCMS, OLA, MSD

CMS, FC, CC

MCMS

Processes

If there is a BOI

Death and Disability Claims for Military Observers and UN Police

• Claim amount limited to $50,000 or two years of salary without benefits, whichever is the greater.

• Claim must be submitted within 4 months of the incident to Field Personnel Division (FPD) and are reviewed by the Advisory Board on Compensation

Claims (ABCC).

A/63/550Comprehensive review

of the compensation of death and disability benefits to military contingents, formed police units, military

observers and civilian police officers

GA Sixty-third session (Agenda Item 132)

Administrative and budgetary aspects of the financing of the UN PKO

The Report of the Secretary-General presents proposals to:

simplify, streamline and harmonize the process for the payment of death and disability compensation to members of military contingents, formed police units, military observers and civilian police officers, including the equal treatment to all uniformed personnel deployed in field missions

Reference documents• 2008 Working Group report – A/C.5/62/26• Secretary-General report - A/62/774 and

A/62/774 Corr.1• ACABQ report – A/62/851• GA resolution - A/RES/62/252

Questions: