UNITED NATIONS	HS
	Commission on Human Settlements	Distr. LIMITED HS/C/17/L.25 13 May 1999 ORIGINAL: ENGLISH

The Commission on Human Settlements,

Having considered the report on the budget of the United Nations Centre for Human Settlements for the biennium 2000-2001 1/ and the report of the Advisory Committee on Administrative and Budgetary Questions, 2/

Taking note of the inter-fund borrowing of 2,041,100 United States dollars from the Foundation general-purpose funds for the United Nations Conference on Human Settlements (Habitat II) and the inability of the Centre to recover the amount owed to the Foundation,

Mindful of the fact that the inter-fund borrowing was not in conformity with United Nations rules and regulations and diverted funds from the purposes for which they were intended,

Recalling its resolution 16/19 of May 1997, in which it requested the Executive Director to repay this debt and noting with regret that that decision has not been implemented,

Also noting the recommendation of the Under-Secretary-General of the Office of Internal Oversight Services to the General Assembly at its fifty-second session, while presenting the internal audit report on Habitat II, 3/ to write off the debt,

Taking note that the Advisory Committee on Administrative and Budgetary Questions has no objection to writing off the debt,

1. Notes with appreciation the reports of the Advisory Committee on Administrative and Budgetary Questions and the Office of Internal Oversight Services regarding the Habitat II debt to the United Nations Habitat and Human Settlements Foundation;

2. States that, provided the relevant United Nations financial rules and regulations are applied and that no financial implications are incurred outside the United Nations Habitat and Human Settlements Foundation, it has no objection to writing off the debt of 2,041,100 United States dollars of the United Nations Conference on Human Settlements (Habitat II) to the United Nations Habitat and Human Settlements Foundation;

3. Recognizes the need for proper budgetary practices to be applied in the preparatory process for the special session of the United Nations General Assembly in the year 2001 for an overall review and appraisal of the implementation of the Habitat Agenda.

2/    Contained in the annex to HS/C/17/9/Add.1.

3/    A/52/824.