The CMP was initially intended to be implemented between 2006 and  2014. CMP Is Approximately 3 Years Behind Schedule

While renovation work on three of the five buildings in the UN  Headquarters Complex is substantially complete, the CMP project is  behind schedule. The UN General Assembly Has Authorized Financing for the CMP Cost Overrun

In resolutions passed in December 2013 and April 2015, the UN General  Assembly approved a strategy to pay for the CMP’s projected $379.2  million cost overrun. UN Is Applying Some Lessons Learned from the CMP but Has Not Made Them Standard Practice for All Capital Improvements

Throughout the renovation of the UN Headquarters Complex, the UN  General Assembly has requested that lessons learned from the CMP  inform the planning and implementation of all future UN capital projects. The three options the Secretary- General deemed viable by that study include a new building on the north  lawn of the UN campus, a new building south of the campus known as  the UN Consolidation Building (DC-5), and maintaining the status quo— relying on leased space. UN Assumptions Justifying Determinations on Future Office Space Needs Could Be Better Documented

In April 2013, the UN General Assembly issued a resolution requesting  that the Secretary-General submit a report on its future office space  needs at the UN Headquarters Complex, which it stressed should include  details on several factors, including total UN workforce requirements and  the impact of implementing flexible workplace policies on the capacity of  the buildings in the UN Headquarters Complex. The UN Strategic Heritage Plan in  Geneva has adopted some of these lessons learned, but if they are not  incorporated into UN policies and procedures, UN member states will  have little assurance the lessons will continue to be applied to future  capital projects. The UN is basing its assessment of options on  various assumptions about its workforce and long-term office rental costs,  but without a clear understanding of the methodology and calculations  underlying the assumptions, UN decision makers may have difficulties  deciding which options will achieve the most efficient and effective  allocation of resources in the coming years. Permanent Representative to the  United Nations work with other member states to take the following two  actions:  1. Ensure that lessons learned during implementation of the CMP are  used to develop documented guidance for future capital projects  funded by UN member states. Clearly justify assumptions used to estimate future office space  needs, for example, by documenting the underlying factors, data, and  analyses. State concurred with our recommendations. Specifically, we examine (1) the extent to  which the CMP is on schedule and achieving its originally planned scope  of work within budget, (2) the UN’s application of lessons learned from the  CMP to other UN capital projects, and (3) how the UN determines and  plans to address future office space needs at its headquarters. Additionally, we discussed the progress, plans,  risks, and costs of the CMP and the UN’s efforts to address its future  office space needs with officials from Department of State’s (State)  Bureau of International Organizations, the U.S. Mission to the UN, and  UN offices, including the CMP office and Central Support Services. Update on the United Nations’ Capital Master Plan.
Why GAO Did This Study

In December 2006, the UN approved a $1.88 billion plan to modernize its headquarters by 2014 (the CMP project), including renovating five buildings. In a separate effort, the UN is considering options to address its future needs for office space. As the UN's largest financial contributor, the United States has a significant interest in these projects.
GAO was asked to review progress on these efforts. GAO examined (1) the extent to which the CMP is on schedule and achieving its originally planned scope of work within budget, (2) the UN's application of lessons learned from the CMP to other UN capital projects, and (3) how the UN determines and plans to address future office space needs at its headquarters. To perform this work, GAO reviewed CMP schedule, planning, budget, and cost documents; examined relevant UN General Assembly resolutions; and met with officials from the Department of State and relevant UN offices.

What GAO Found

The Capital Master Plan (CMP) intended to modernize, secure, and restore the United Nations (UN) Headquarters Complex, is substantially complete. However, the project is 3 years behind schedule primarily due to unplanned security upgrades and is projected to be over budget, while the UN has removed two buildings from its scope due to lack of a feasible solution to security concerns. As of February 2015, the UN estimated that the CMP will cost about $379 million more than originally planned. In resolutions passed in December 2013 and April 2015, the UN General Assembly authorized financing of the CMP cost overrun through various means, including an additional member state assessment.
UN internal and external auditors have identified lessons learned from the CMP that could be applied to future capital projects, such as including all foreseeable costs at a project's outset. The UN is applying some of these lessons to a new capital improvement project in Geneva. However, the UN has not made these lessons standard practice as called for by federal and UN standards for internal control. As a result, the UN could miss the opportunity to apply its experience to help achieve long-term savings and efficiencies in future capital improvement efforts.
The UN has identified as viable three options to address its future office space needs in New York, including a new building within the UN Headquarters Complex, a new building south of the UN Complex, and the status quo—relying on leased space. However, GAO found the assumptions upon which the UN bases these options—including UN workforce projections and the potential impact of flexible workplace policies such as teleworking or desk sharing—are not well supported and documented. Without an understanding of the methodology and calculations underlying the assumptions, UN decision makers may have difficulties deciding which options will achieve the most efficient and effective allocation of resources in the coming years.

What GAO Recommends

The Secretary of State and the U.S. Permanent Representative to the United Nations should work with other member states to (1) ensure that lessons learned during the CMP are used to develop documented guidance for future capital projects and (2) clearly justify assumptions used to estimate future office space needs, for example, by documenting the underlying factors, data, and analyses.
The Department of State concurred with GAO's recommendations.