Briefing on
• Contingent-Owned Equipment (COE) System
• Memorandum of Understanding (MOU)
• Claims
MCMS/FBFD/DFS
MOU & Claims Management Service / Field Budget and Finance Division / Department of Field Support
MOU and Claims Management Section
Main 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.
FGS / PD
MCMS
LSD
PKO
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 Methodology
Since 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 TroopContributing 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 selfsustainment 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
Recce Visit
PreDeployment
Visit
Reimbursement
Processing
Preparation
of VRs
Disbursement
Components of the MOU for COE
MOU
many
WHAT Major +
= HOW
+
Troops
Equipment
WHICH SS
Categories
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 ALLOWANCE
Allowances 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 Claims
The 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 LOA
LSD prepares
LOA,
TC Renders
Signed by
Goods,
both parties
Services
LSD/MCMS
Processes
TC Makes
Claim
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 >>> UNHQ
TC submit
a claim
MCMS, OLA, MSD
CMS, FC, CC
MCMS reviews,
Requests NOTICAS
Completes
and
NOTICAS and
CONFIRMATION FAX
Confirmation
FAX
If there is a BOI
MCMS
Processes
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/63/550
Comprehensive 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: