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The identification of reportable segments in United Nations financial statements as per UN IPSAS Corporate Guidance – Segment Reporting. that a segment is a distinguishable activity or group of activities for which it is appropriate to separately report financial information for evaluating past performance and making future resource allocation decisions. The UN has identified several segments including General Assembly and Economic and Social Council affairs and conference management, programme 28 - Safety and security, and jointly financed activities such as the International Civil Service Commission, Joint Inspection Unit, and United Nations System Chief Executives Board for Coordination.
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UN IPSAS Corporate Guidance – Segment Reporting Content table
UN IPSAS Implementation Project OPPBA, DM
UN IPSAS Implementation Project OPPBA, DM
UN IPSAS Corporate Guidance – Segment Reporting Introduction
UN IPSAS Implementation Project OPPBA, DM
Segment reporting disclosures can be seen as the analysis of the financial information of an entity between different activities. It is primarily intended to provide users of the financial information a better view of the performance of different activities of the entity and enhance the transparency of financial reporting. Segment reporting requirements are applicable to all the United Nations Secretariat reporting entities. The goal of this document is to present relevant guidance on the identification of segments and segment disclosure requirements at the United Nations.
Segment reporting disclosures are addressed by IPSAS 18: Segment Reporting which primarily provides guidance on the identification of segments (section 3) and segment disclosure requirements (section 4).
Key aspect in the identification of segments is that IPSAS guidance is principle based which means that the application will require management judgment based on facts and circumstances of each entity. Since there is no set rule on segment identification, an entity may prepare segment information which may be different from the other United Nations Secretariat reporting entities. Section 3 of this document includes the tentative analysis on identification of segments for selected reporting United Nations Secretariat reporting entities which was reflected in the financial statements for the year ended 31 December 2014.
Another key aspect in applying segment reporting disclosures is that the underlying data should be available to generate the necessary reports for segment reporting disclosures as explained in section 4. Needless to say, that the financial reporting systems should support the drafting of segment disclosures.
UN IPSAS Corporate Guidance – Segment Reporting Definitions
UN IPSAS Implementation Project OPPBA, DM
A segment is a distinguishable activity or group of activities of an entity for which it is appropriate to separately report financial information for the purpose of (a) evaluating the entity’s past performance in achieving its objectives, and (b) making decisions about the future allocation of resources.
Segment revenue is revenue reported in the entity’s statement of financial performance that is directly attributable to a segment, and the relevant portion of entity revenue that can be allocated on a reasonable basis to a segment, whether from budget appropriations or similar, grants, transfers, fines, fees, or sales to external customers or from transactions with other segments of the same entity.
Segment expense is an expense resulting from the operating activities of a segment that is directly attributable to the segment, and the relevant portion of an expense that can be allocated on a reasonable basis to the segment, including expenses relating to the provision of goods and services to external parties and expenses relating to transactions with other segments of the same entity.
Segment assets are those operating assets that are employed by a segment in its operating activities, and that either are directly attributable to the segment or can be allocated to the segment on a reasonable basis.
Segment liabilities are those operating liabilities that result from the operating activities of a segment, and that either are directly attributable to the segment or can be allocated to the segment on a reasonable basis.
Segment accounting policies are the accounting policies adopted for preparing and presenting the financial statements of the consolidated group or entity as well as those accounting policies that relate specifically to segment reporting.
UN IPSAS Implementation Project OPPBA, DM
The assessment carried out to identify activities or group of activities should be used to determine whether segments will be based on service or geography.
Note: The operating objectives at the United Nations are structured along the mandate and programmes as directed by the General Assembly, accordingly the current thinking as per policy framework is that segments will be presented along the lines of services for all the United Nations Secretariat reporting entities.
Fund accounting vis-à-vis segment reporting:
Typically a fund is a self-balancing accounting entity established to account for the transactions of a specified purpose or objective. Funds are segregated for the purpose of conducting specific activities or attaining certain objectives in accordance with special regulations, general assembly resolutions, restrictions or limitations based on donor agreements.
Example – Hypothetical funds and programmes at an entity
Background:
The Agency’s three groups of funds are described below. The funds are established on the basis of resolutions passed by the General Conference and are administered in accordance with the Financial Regulations adopted by the Board of Directors, and Financial Rules issued by the Director General.
Fund Group I (Regular Budget Fund) is the principal means of financing agency activities and enables the agency to meet obligations arising from authorized appropriations. The Regular Budget Fund is based on an annual regular budget approved by the General Conference and financed from assessed contributions.
Fund Group II (Technical Cooperation Fund) is the main financing mechanism for the Agency’s technical cooperation activities by Member States. Fund Group II is financed primarily from voluntary contributions where Member States pledge contributions against their indicative share of the allocation, along with national participation costs and miscellaneous income.
Fund Group III (Extrabudgetary Programme Fund) is a financing mechanism to enable donor countries and international organizations to make voluntary contributions for activities in support of programmes. They are available for these programmes until they are actually used in consultation with the donor concerned.
UN IPSAS Implementation Project OPPBA, DM
The agency’s four major programmes form the structure for regular budget appropriations. The four major programmes comprise:
Wind Science - Major Programme 1 provides core scientific and technical support to Member States in the field of wind science technologies. It builds capacity for energy system analysis and planning as well as for infrastructure development for new power and research reactors.
Wind Safety and Security - Major Programme 2 establishes and continuously improves agency safety standards and security guidance.
Management of Technical Cooperation for Development - Major Programme 3 covers the management of the technical cooperation programme (TCP) funded from the Technical Cooperation Fund (TCF) and extrabudgetary contributions.
Policy, Management and Administration Services - Major Programme 4 comprises policy, management and administration functions. Firstly, it includes the necessary support (legal, financial, human resources, conference and document services, procurement and general services) to the implementation and delivery of the agency’s programmes. Secondly, it includes the leadership under the Director General to provide the coordination necessary to maintain a one-house approach, and finally, it covers the internal audit, investigation, and the management of information between the Secretariat and Member States, the media and the general public.
Analysis:
Agency activities across four major programmes (activities) are financed through three Fund Groups. Each Fund Group has differing parameters around how the revenue can be used. Accordingly segment reporting information for IPSAS financial statements should be provided on the basis of the agency’s activities based on the major programmes and not on the basis of the funding. The agency may additionally decide to separately provide information based on source of funding (Fund Groups) basis if deemed necessary for the users of the financial statements.
Example – Can fund accounting correspond to segment reporting?
In a situation where there are multiple funds and multiple activities (segments); a fund can cut across multiple activities or an activity can cut across multiple funds thereby creating a matrix.
UN IPSAS Implementation Project OPPBA, DM
The BoA concurred to the judgment made by IPSAS team with regards to grouping of activities at the United Nations Secretariat based on thematic pillars. Reasoning for thematic pillars approach and segment presentation is as follows: The manner in which activities are evaluated by the governing body and senior management of the United Nations, identified based on review of General fund’s statement of appropriation and statement of income and expenditure of General Trust funds from UNSAS financial statements of Volume I, which represents substantial portion of Volume I’s expenditure. Grouping of programmes into thematic pillars represents pragmatic numbers of segments to be presented in the IPSAS compliant financial statements. Disclosures of financial performance by thematic pillars allows the user of the financial statements to assess the manner in which the United Nations entities have allocated resources to major activities and enhances transparency on utilization of resources. Common support services relating to centralized functions, including finance, human resources, information and communications technology and support services functions that support the United Nations’ operations, projects and fund activities. General Assembly and Economic and Social Council affairs, conference management and internal oversight functions which support United Nations operations, projects and fund activities. These centralized functions do not only provide services to all thematic pillars but also other United Nations agencies and programmes. These were established as part of the social security scheme for United Nations staff and retirees and for the coverage of general third party liabilities. These activities represent a significant portion of the regular budget. To enhance transparency these activities will be disclosed as a separate column titled “Others” in segment reporting disclosures. Self-insurance and other insurance plans account for activities with respect to the various health, dental and life insurance plans and compensation for general liability of the United Nations. Volume I, as the principal of these arrangements, presents the income and expenditure related to these schemes in its Statement of financial performance and this is disclosed as a separate segment. Accordingly, Volume I’s segment reporting will have columns representing eight thematic pillars, common support services, self-insurance and other insurance plans and others in addition to eliminations and for any balance that cannot be allocated to the ten columns, unallocated.
Volume I segments its operations, projects and fund activities based on the following thematic pillars propounded by the United Nations charter and General Assembly resolutions:
Political and Peacekeeping Affairs: Maintain international peace and security by providing assistance to resolve potentially violent disputes or conflict peacefully; supporting efforts in the areas of disarmament and non-proliferation; promoting the peaceful uses of outer space and support the maintenance of peace and security through the deployment of peacekeeping operations.
UN IPSAS Implementation Project OPPBA, DM
International law and justice: Advice the principal and subsidiary organs of the United Nations and to promote among Member States a better understanding and respect of the principles and norms of international law. Cooperation and Development: Promote and support international and regional cooperation and development in the pursuit of sustained economic growth, the eradication of poverty and hunger, development of trade, gender equality and empowerment of women, and sustainable human settlements in an urbanizing world. Specific programmes are developed for Africa; Asia and the Pacific; Europe; Latin America and the Caribbean; developing countries; least developed countries; economies in transition; and western Asia. Human Rights and Humanitarian Affairs: Promote and protect the effective enjoyment by all of all human rights by making development equitable, sustainable and responsive to the needs of people and to ensure the timely, coherent and coordinated response of the international community to disasters and emergencies and ensure international protection to refugees including Palestine refugees. Public Information and Communication: Provide global communication about the ideals and work of the United Nations; interacts and partners with diverse audiences; and builds support for peace, development and human rights for all. Environmental Affairs: Contribute to the well-being of current and future generations and the attainment of global environmental goals. It is centered on transition to low-carbon, resource-efficient and equitable development based on the protection and sustainable use of ecosystem services, coherent and improved environmental governance and the reduction of environmental risks. Security and Safety: Provide leadership, operational support and oversight of the United Nations security management system. Drug Control: Work with Member States to enhance their efforts to combat the intertwined problems of drug use and trafficking by helping to create and strengthen legislative, judicial and health systems to safeguard some of the most vulnerable persons in society. Crime Prevention: Work with Member States to enhance their efforts to combat the intertwined problems of transnational crime, corruption and terrorism by helping to create and strengthen legislative, judicial and health systems to safeguard some of the most vulnerable persons in society.
Common support services are shown as a separate segment as is self-insurance and other insurance plans.
Other primarily consists of common support services, internal oversight function and General Assembly and Economic and Social Council affairs and conference management. Common support services includes functions of finance, human resources, information and communications technology, and support services that supports United Nations operations, projects and fund activities. Internal oversight function includes responsibilities of monitoring, internal audit, joint inspection and evaluation and investigation. General Assembly and Economic and Social Council affairs and conference management is used for effective and efficient decision-making processes of intergovernmental bodies and United Nations conferences.
UN IPSAS Implementation Project OPPBA, DM
Programme 4 - Peacekeeping operations: The overall objective of the programme is to support the maintenance of peace and security through the deployment of peacekeeping operations. The activities includes: Implement Security Council mandates to plan and establish peacekeeping operations and enable fulfillment of the mandates including continuous access by field missions to systems; contracts for information and communications technology equipment and services; Implement the military aspects of Security Council mandates; Enable rule of law and security institutions in post-conflict societies; and Provide the policy, guidance and training tools essential to plan, establish and sustain peacekeeping operations. Programme 5 - Peaceful uses of outer space: The overall objective of the programme is the promotion of international cooperation in the peaceful uses of outer space for economic, social and scientific development, in particular for the benefit of developing countries. The priority activates include building indigenous capability in the areas of basic space sciences, basic space technology and human space technology, and promoting the Global Navigation Satellite System and integrated space technology applications.
3.2.1.2 International law and justice
Purpose of this pillar is to advice the principal and subsidiary organs of the United Nations and to promote among Member States a better understanding and respect of the principles and norms of international law.
Summary of activities carried out by this pillar: Programme 6 - Legal affairs: The overall objective of the programme is to advice the principal and subsidiary organs of the United Nations and to promote among Member States a better understanding and respect of the principles and norms of international law primarily by providing a unified central legal service for the Secretariat and the principal and subsidiary organs of the United Nations carrying out the following activities: Enhance the respect for the rule of law and to support the development of international justice by the principal and subsidiary organs of the United Nations; Protect the legal interests of the Organization; Progressive development and codification of international law; Promote and strengthen the rule of law for the oceans; Progressive improvement, harmonization, understanding, knowledge, interpretation; Application of international trade law and coordination of the work of international organizations active in that field; and Awareness of and participation in international treaties and actions relating to those treaties.
UN IPSAS Implementation Project OPPBA, DM
3.2.1.3 Cooperation and Development
Purpose of this pillar is to promote and support international and regional cooperation and development in the pursuit of sustained economic growth, the eradication of poverty and hunger, development of trade, gender equality and empowerment of women, and sustainable human settlements in an urbanizing world. Specific programmes are developed for Africa; Asia and the Pacific; Europe; Latin America and the Caribbean; developing countries; least developed countries; economies in transition; and western Asia.
Summary of activities carried out by this pillar: Programme 7 - Economic and social affairs: The overall objective of the programme is to promote and support international cooperation in the pursuit of sustained economic growth, the eradication of poverty and hunger, and sustainable development for all. The activities includes: Promote coordination and coherence in the activities of the United Nations system; Strengthen international cooperation in the area of social development; Accelerate the implementation of sustainable development goals, targets and commitments; Advance the global statistical and geospatial information system; Strengthen the international community’s capacity to effectively address current and emerging population issues; Facilitate the reaching of intergovernmental agreement on the economic policies and actions; Foster effective, efficient, transparent, accountable and citizen-centered public governance, administration and services; and Advance political commitment to the management, conservation and sustainable development of all types of forests. Programme 8 - Least developed countries, landlocked developing countries and small island developing States: The mandate of the programme primarily aims mobilization and coordination of international support and resources for the effective implementation of: (i) the Istanbul Programme of Action; (ii) the outcome of the 10-year review of the Almaty Programme of Action; and (iii) the Mauritius Strategy. Programme 9 - United Nations support for the New Partnership for Africa’s Development: The mandate of the programme primarily aims to: (a) mobilize support and galvanize the efforts of the international community for peace and development in Africa; (b) ensure that the development of Africa remains one of the main priorities of the international community; (c) promote a supportive international framework for African development efforts; (d) encourage a coordinated and effective response by the United Nations system at the policy and operational levels in support of African development; and (e) strengthen and enhance South-South cooperation in support of Africa’s advancement. Programme 10 - Trade and development: The mandate of the programme primarily aims to assist developing countries, especially least developed countries, and countries with economies in transition in integrating beneficially into the global economy in support of inclusive and sustainable growth and development. The activities includes:
UN IPSAS Implementation Project OPPBA, DM
be the main beneficiaries of ECE technical cooperation: policy advice, capacity-building and field projects. Programme 18 - Economic and social development in Latin America and the Caribbean: The overall purpose of the programme is to promote economic, social and environmentally sustainable development in Latin America and the Caribbean through international cooperation, by undertaking comprehensive research and analyses of development processes and providing the relevant normative, operational and technical cooperation services to member States in support of regional development efforts. The mandate for the programme falls within the purview of the Economic Commission for Latin America and the Caribbean (ECLAC). Programme 19 - Economic and social development in Western Asia: The overall orientation of the programme is to foster comprehensive, equitable, integrated and sustainable development through effective economic and social cooperation in the region, and to maintain and strengthen economic relations between the member countries of the Economic and Social Commission for Western Asia (ESCWA) and with other countries.
3.2.1.4 Human Rights and Humanitarian Affairs
Purpose of this pillar is to promote and protect the effective enjoyment by all of all human rights by making development equitable, sustainable and responsive to the needs of people and to ensure the timely, coherent and coordinated response of the international community to disasters and emergencies and ensure international protection to refugees including Palestine refugees.
Summary of activities carried out by this pillar: Programme 20 - Human rights: The objective of the United Nations human rights programme is to promote and protect the effective enjoyment by all of all human rights. The activities includes: Advancing the promotion , protection, and integration of all human rights by contributing to the effective realization of the right to development and by increasing knowledge, awareness and understanding; Providing substantive support and advice to the human rights treaty bodies and to the Human Rights Council and its subsidiary bodies; and Enhanced capacity-building, including through assistance to requesting States. Programme 21 - International protection, durable solutions and assistance to refugees: The objective of the programme is to ensure international protection to refugees and other persons of concern to the Office of the United Nations High Commissioner for Refugees and to achieve permanent solutions to their problems in cooperation with States and other organizations, including through the provision of humanitarian assistance. Programme 22 - Palestine refugees: The objective of the programme is to protect, preserve and promote the health status, meet the basic educational needs and improve the standard of living and advance the rights of Palestine refugees.
UN IPSAS Implementation Project OPPBA, DM
Programme 23 - Humanitarian assistance: The overall purpose of the programme is to ensure the timely, coherent and coordinated response of the international community to disasters and emergencies and to facilitate the smooth transition from emergency relief to rehabilitation and development.
3.2.1.5 Public Information and Communication
Purpose of this pillar is to provide global communication about the ideals and work of the United Nations; interacts and partners with diverse audiences; and builds support for peace, development and human rights for all.
Summary of activities carried out by this pillar: Programme 24 - Public information: The objective of this programme is to promote global awareness and enhanced understanding of the work and issues of the United Nations by providing accurate, impartial, comprehensive, balanced, coherent, timely and relevant information. The activities include: Broaden understanding of and support for the work of the United Nations, in particular by providing communications support for key United Nations events and initiatives; Strengthen support for the United Nations through information products and news services; and Enhance understanding of the role, work and concerns of the United Nations and to encourage the exchange of ideas, information and knowledge in support of the goals of the Organization.
3.2.1.6 Environmental Affairs
Purpose of this pillar is to contribute to the well-being of current and future generations and the attainment of global environmental goals. It is centered on transition to low-carbon, resource-efficient and equitable development based on the protection and sustainable use of ecosystem services, coherent and improved environmental governance and the reduction of environmental risks.
Summary of activities carried out by this pillar: Programme 11 - Environment: The objective of this is to contribute to the well-being of current and future generations and the attainment of global environmental goals. It is centered on transition to low- carbon, resource-efficient and equitable development based on the protection and sustainable use of ecosystem services, coherent and improved environmental governance and the reduction of environmental risks. The activities under this programme are grouped under sub-programmes relating to climate change, disasters and conflict, ecosystem management, environmental guidance, chemicals and waste, resource efficiency and environment under review. The activities include: Strengthen the ability of countries to move towards climate resilient and low-emission pathways for sustainable development and human well-being;
UN IPSAS Implementation Project OPPBA, DM
3.2.1.8 Crime Prevention
Purpose of this pillar is to work with Member States to enhance their efforts to combat the intertwined problems of transnational crime, corruption and terrorism by helping to create and strengthen legislative, judicial and health systems to safeguard some of the most vulnerable persons in society.
Summary of activities carried out by this pillar: Programme 13 - International drug control, crime and terrorism prevention and criminal justice: The objectives are to promote effective responses to transnational organized crime, illicit trafficking by facilitating the implementation at the normative and operational levels of the relevant United Nations conventions; prevent and combat corruption; and strengthen a functional criminal justice regime against terrorism; and enhance knowledge of thematic and cross-sectoral trends for effective policy formulation, operational response and impact assessment.
3.2.1.9 Common support services
Programme 25 - Common support services: The overall purpose of common support services is to enhance the accountability and efficiency of the Organization in managing its resources in four broad management areas, namely, finance, human resources, information and communications technology, and support services, including procurement and infrastructure; to provide support services to the intergovernmental processes of the Organization; to secure financing for the mandated programmes and activities of the Secretariat; and to support the implementation of those programmes and activities.
3.2.1.10 Others
Programme 26 - Internal oversight: The overall purpose of internal oversight is to enhance transparency and accountability and contribute to the economy, high efficiency, effectiveness and goal fulfillment in the United Nations. The internal oversight responsibility is achieved through monitoring, internal audit, inspection, evaluation and investigation. Programme 1 - General Assembly and Economic and Social Council affairs and conference management: The overall purposes are (a) to facilitate, through the provision of procedural and technical secretariat support and authoritative advice, the orderly and effective conduct of the deliberations and follow-up actions of intergovernmental bodies and United Nations conferences; (b) to provide substantive and technical secretariat servicing to the Committee on Conferences; (c) to ensure, through integrated global management, the provision of high-quality conference-servicing support to all intergovernmental and expert bodies (d) to provide protocol, liaison and representational functions for the Secretary-General, host Governments and Member States; and (e) to ensure the uninterrupted delivery of services during the implementation of the capital master plan at Headquarters.
UN IPSAS Implementation Project OPPBA, DM
Programme 27 - Jointly financed activities: International Civil Service Commission: The Commission aims at the development of a single unified international civil service through the application of common personnel standards, methods and arrangements; Joint Inspection Unit: The Unit aims at satisfying itself that the activities undertaken by the United Nations are carried out in the most economical manner and that optimum use is made of resources available for carrying out those activities; and United Nations System Chief Executives Board for Coordination: The Board aims at promoting coherence, cooperation and coordination in the policies, programmes and activities of the organizations of the United Nations system in accordance with their respective mandates and in response to the decisions of intergovernmental bodies.
Segment reporting for The United Nations peacekeeping operations (Volume II) will be based on:
Closed Missions;
Active Missions; and
Support Activities.
Further relevant information should be provided on a mission basis.
Volume II segments are based on the IPSAS policy framework.
Each entity identifies segments based on activities at the entity level.
A process similar to Volume I as explained in section 3.2 should be following by all entities to identify segments. Refer to section 3.4.1 to section 3.4.7 for a basic assessment for each entity.
