Transcript Proposal to Change Portal Environment

2006-2007
BIENNIAL SUPPORT BUDGET
PROPOSAL
An Overview
Informal Executive Board Discussions
31 August 2005
SESSION OBJECTIVES:
 Recap of issues presented in May informal
session on UNDP’s 2006-2007 budget strategy:
•
Key drivers in developing the 2006-2007 budget
•
UNDP strategic direction and funding modalities
 Overall financial situation
 The 2006-2007 support budget proposals
 ACABQ Comments
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1. Recap of 20 May informal session
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Multi-Year Funding Framework
• The 2006-2007 biennial support budget is an integral part of UNDP’s
second Multi-Year Funding Framework (MYFF) for 2004-2007
• The biennial support budget covers the second part of the MYFF period,
and it acts as the strategic framework in aligning organizational capacities
and related resources to deliver on goals and priorities of the MYFF
• Gender and capacity development continue to be mainstreamed across
all UNDP practices in support of the MYFF goals: achieving the MDGs
and reducing human poverty; fostering democratic governance; crisis
prevention and recovery, energy and environment; and responding to
HIV/AIDS.
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KEY DRIVERS: DEVELOPING THE 2006-2007 BUDGET
UN REFORM
UNDP STRATEGIC
DIRECTION
FINANCIAL
SUSTAINABILITY
EB
DECISIONS
BUDGET STRATEGY
• Regular resources remain the bedrock for funding the core functions and
related priorities of UNDP
• Consolidation of the 2004-2005 budget strategy
• Strategic investments funded through re-deployment
• Gradual implementation of proportional funding between regular and other
resources
BUDGET PRIORITIES
BUDGET PROPOSALS
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STRATEGIC DIRECTION FOR 2006-2007
1.
Commitment to and support for UN reform
2.
Emphasis on assistance to programme countries’ efforts to achieve
MDG targets by 2015
3.
Realignment of the funding modalities for operational support
structures to reflect the multi-funded nature of UNDP
4.
Continued support to 2004-2005 key themes
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–
Strengthened partnerships
–
Enhanced knowledge and learning
–
Improved efficiency, performance and results based management
–
Continued focus on crisis prevention and recovery
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PROPOSED FUNDING STRATEGY
• Continued application of the base structure concept
covering the core functions of UNDP
• Gradual implementation of proportional funding of UNDP
capacity through increased contribution from other
resources
• Adoption of a cost classification methodology to align
funding of programme costs from programme resources
pool
• Further consultations on Results based budgeting (RBB)
leading to harmonized approach with partner agencies
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2. Overall financial situation
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A multi-funded UNDP: Biennia 1992-1993 to 2006-2007
(estimates for 2004-2005 and 2006-2007)
2800
millions of US$
2400
Donor Resources:
Regular Voluntary Contr.
Local Resources: Govt.
cost sharing
2000
1600
1200
Donor Resources: Trust Funds
& 3rd Party cost sharing
800
400
0
1992/1993
1994/1995
1996/1997
1998/1999
2000/2001
2002/2003
2004/2005
(est)
2006/2007
(est)
Donor Resources - untied voluntary contributions - Regular resources - internationally generated & deployed
Donor Resources - tied voluntary contributions - Other resources - internationally generated & deployed
Local Resources: tied voluntary contributions - Other Resources - locally generated & deployed
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UNDP Projected Contributions
(2004-2007)
(millions of US $)
2004/2005
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2006/2007
Donor resources - untied voluntary contributions (Regular resources)
1,700
1,900
Donor resources - tied voluntary contributions (Other resources)
1,800
3,000
Subtotal donor resources
3,500
4,900
Local resources - tied voluntary contributions (Other resources)
2,100
2,600
Total
5,600
7,500
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ESTIMATED USE OF 2006-2007 TOTAL UNDP RESOURCES ($8 159 million)
(Millions of US$, Percentages)
Programmes,
$6,854 million,
84.0%
Programme Support &
Management & Administration
& UNCDF & UN Mandated Security
10.2%
Management &
Administration,
$178 million,
2.2%
Programme support/
Headquarters,
$129 million,
1.6%
Programme support/
Country offices,
$470 million,
5.8%
United Nations Capital
Development Fund,
$9 million,
0.1%
Programmes & Support to the
Operational activities of the UN
89.8%
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Support to the
operational activities of
the United Nations,
$478 million,
5.8%
United Nations
Mandated Security,
$41 million,
0.5%
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3. 2006-2007 support budget proposals
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KEY ELEMENTS
•
Zero net real growth budget - nominal increase reflecting $ 85.7 million in
mandatory costs increases ($54.0 million in 2004/2005), comprised of:
– $6.5 million related to security;
– $4.7 million in currency adjustments ($0.9 million in 2004/2005);
– $57.3 million in post-related cost adjustments ($35.1 million in 2004/2005);
– $17.2 million in operating cost adjustments ($18.0 million in 2004/2005);
•
Incremental shift towards proportionate funding between regular and other
resources ($ 11.3 million);
•
Reduction of $ 5 million at headquarters
•
Strategic investments ($16 million) funded through re-deployments
•
Exceptional investment of $10 million in UNCDF as mandated by the Executive
Board.
•
UN mandated security costs presented as a distinct regular resources funding
requirement totaling $31.2 million, of which $19.3m represents an increase.
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UNDP 2006-2007 SUMMARY OF PROPOSALS
2004/2005
budget
Cost
2006/2007
increases Costed budget
Proportionality
shift / reduction
Investments
Proposed
2006/2007
budget
Programme support
Country offices
Headquarters
288.9
75.3
47.6
5.4
336.5
80.7
(1.0)
(5.7)
8.3
0.4
343.8
75.4
subtotal programme support
364.2
53.0
417.2
(6.7)
8.7
419.2
Management and administration
133.4
10.0
143.4
(7.7)
3.3
139.0
UN Support
136.0
22.7
158.7
(1.9)
4.0
160.8
subtotal UNDP
633.6
85.7
719.3
(16.3)
16.0
719.0
-
-
-
10.0
10.0
Gross budget
633.6
85.7
719.3
26.0
729.0
Income
(70.3)
-
(70.3)
(0.9)
(71.2)
Net budget
563.3
85.7
649.0
(16.3)
25.1
657.8
11.9
2.0
13.9
-
17.3
31.2
UNCDF
UN Mandated security
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(16.3)
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STRATEGIC INVESTMENTS (Total $16.0 million)
Country Offices
• Country directors:
$4.5 million
• Security:
$0.9 million
• Advocacy and Outreach
$4.0 million
• ERP – Atlas
$1.9 million
• Global service centre
$1.8 million
Headquarters
$0.3 million
• UN Development Group office
$1.1 million
• Administration of Justice
$1.1 million
• Base structure alignment
$0.4 million
TOTAL
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$13.1 million
$2.9 million
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4. ACABQ Comments
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ACABQ COMMENTS
•
While welcoming the changes in the presentation, the ACABQ believes there
is room for further improvement to streamline the presentation, to promote
greater clarity and transparency;
•
UNDP continues operational and programmatic reforms in line with the 20042007 Multi-Year Funding Framework;
•
More justification and rationale on
reclassifications in related narratives;
•
High priority to Results-Based budgeting and harmonization with other
agencies in 2008-2009;
•
More efforts to reduce expenditure on programme support and management
and administration in respect of regular resources;
•
The Committee points to comments on the need for integration, coordination,
and rationalization of the security management system, to avoid previous
duplications of security structures, in its report on the strengthened and unified
security management system for the United Nations (A/59/539);
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proposals
for
new
posts
and
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ACABQ COMMENTS (continued)
• Enhancement of cooperation and coordination with DPKO;
• Efforts should be made to hire professional staff at the entry levels so
as to ensure rejuvenation of UNDP;
• Given the considerable expenditure on state-of-the-art technology,
ACABQ expects tangible results in efficiency gains and savings;
• Related to UNIFEM: More efforts to reduce expenditure on
programme support and management and administration in respect of
regular resources.
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DISCUSSIONS
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