1. 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
Virtually everything that is not Operations

2. 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.

3. 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;

4. 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.

5. 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

6. 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;

7. 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.

8. 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.

9. 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)

10. 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

11. 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

12. 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.

13. COE Methodology Life Cycle of the COE Procedures: MOU Negotiation
Deployment
Reimbursement
Processing
Recce Visit
The life cycle of the new methodology is first based on internal negotiations between FMSS, LCS, FGS, and then, with the TC. All must agree, and often a pre-deployment visit is made to ensure that the major equipment, and/or self-sustainment that will be deployed is indeed what is required.
Ideally, the deployment does not occur until there is a signed MOU. Although often, the MOU is signed months after the field has received the material.
The actual claim processing is based on the VR – verification report
The claim can not be processed without a signed MOU.
Payments to the TC depend on the cash-flow and budget assessments/contributions of the UN organization and is under the responsibility of the Controller.
MOU Negotiation – important partners FGS, LCS, Claims – Responsibility of Claims to coordinate the Process.
Preparation
of VRs
Pre-Deployment
Visit
Disbursement

14. Components of the MOU for COE
HOW many
Troops
WHAT Major
Equipment
WHICH SS
Categories
Standard
Provisions = + + +
Inspections Performed - VRs
Calculate Reimbursements $$
(MOU must be signed)

15. 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.

16. 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.

17. 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.

18. 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

19. Self-Sustainment Categories
Catering
Communications
Office
Electrical
Minor Engineering
Explosive Ordnance Disposal
Laundry & Cleaning
Tentage
Accommodation
Firefighting
Basic firefighting,
Fire detection and alarm

20. 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

21. 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.

22. 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.

23. 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.

24. TROOP COST
The processing of amounts payable is done by Controller’s office.
Payments are based on monthly troop reports sent by each mission.

25. 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.

26. 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.

27. 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;

28. Letter of Assist Work-Flow for LOA TC/LSD Agree to Terms of LOA
LSD prepares
LOA,
Signed by
both parties
TC Renders
Goods,
Services
LSD/MCMS
Processes
TC Makes
Claim

29. Death & Disability Claims for Military Contingents and Formed Police Units
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.
Please note that theses methodologies refer to Troops only. The methodology for Civilian Police and Military Observers is different and processed in PMSS.

30. Death & Disability Claims for Military Contingents and Formed Police Units
Work-Flow for New D&D:
TC >>> UNHQ
MCMS, OLA, MSD
TC submit
a claim
CMS, FC, CC
MCMS reviews,
Requests NOTICAS
and
CONFIRMATION FAX
Completes
NOTICAS and
Confirmation FAX
When an incident occurs, what are the steps to follow:
Step 1
TC Makes a claim directly to UNHQ
Step 2
FMSS verifies the basic rules and regulations, validity of claim, timeliness, etc.
Step 3
Requests the Force commander, CAO, Contingent Commander to investigate.
In cases of Disability, the Force Medical Officer, in consultation with the contingent medical officer and senior medical staff of the field hospital (if applicable) assess the degree of impairment based on the American Medical Association.
Once the percentage of impairment has been assessed, and the BOI establishes that the injury was service incurred, confirmation fax is sent to UNHQ.
Step 4
UNHQ Medical Director will evaluate and take final decision.
CIMS settles claim, based on all available information.
If there is a BOI at UNHQ, then CIMS can process immediately, without requiring the NOTICAS CONFIRMATION FAX.
If there is a BOI
MCMS
Processes

31. 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).

32. GA Sixty-third session (Agenda Item 132)
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

33. 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

34. Questions: