Transcript UNDP, UNICEF and UNFPA Joint Executive Board Informal Meeting Cost Classification Harmonization 4 September 2009

UNDP, UNICEF and UNFPA
Joint Executive Board Informal Meeting
Cost Classification Harmonization
4 September 2009
Topics
• Harmonized Baseline
• Issues remaining for future harmonization
• The way forward
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Harmonized Definitions
1997
2008-2009 BSB
2010-2011 BSB
(UNDP)
1. Management and
Administration
16 Harmonized
RBB functions
2. Programme
Support
HQ’s
CO’s
16 Harmonized RBB
functions
Functions 4 and 6
Consideration given to
transferring some costs
to programme
3. Support to UN
Operational Activities
(UNDP only)
UNDP specific RBB
function (#17)
UNDP specific RBB
function (#17)
4. Programme
4. Programme
4. Programme
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Harmonized Definitions
• Harmonized BSB cost classification definitions on
“management and administration” and
“programme support” adopted in 1997 remain
valid but require refinement.
• The 16 harmonized BSB functions, based on
planned results, cover management and
administration as well as programme support
activities
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Harmonized Applications
• Improved harmonization will be achieved through
clear understanding and more consistent
application of the common definitions.
• There is recognition that organization-specific
mandates, business models and approaches do
not make total harmonization fully appropriate.
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Harmonized Results and Allocations
• Most functions have been further harmonized
following joint efforts since the approval of the 20082009 BSBs.
– Each function in the 2010-2011 BSB to include
one management result common to all
organizations; specific performance indicators
may vary because of differing organization
mandates and approaches.
– There is enhanced harmonized allocation of
resources within each function.
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Harmonized Treatment of
Policy Advisory and
Implementation Support Services
• Agencies agree in principle that some costs associated with the
provision of policy advisory and implementation support services in
country offices should appropriately be classified as programme costs.
• Currently, UNICEF funds cost of providing policy advisory and
implementation support services in country offices from programme
resources, while UNDP and UNFPA fund some of these costs within
BSB.
• Currently, UNDP and UNFPA fund most of the costs of providing policy
advisory and implementation support service to regional offices and
global programmes from programme resources, while UNICEF funds
most of these costs within BSB.
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Issue 1- Programme Guidance,
Management and Oversight
(BSB Function 4)
• Harmonized allocation within function 4 has not
been fully achieved with respect to the following:
– Treatment of the classification of country office
activities/costs associated with programme
development and implementation.
– Treatment of the classification of activities/costs
associated with policy advisory services.
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Issue 2 – Methodology
- UNICEF and UNFPA base cost classification on
the whole post approach (job descriptions and
predominant functions), with the entire cost of
each post allocated to one funding source.
- UNDP proposes to adopt the whole post
approach for allocating staff costs between
funding sources for development effectiveness
activities currently in function 4.
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Issue 3 – UN development coordination
activities
• Represents the inputs needed to support the
coordination of development activities of the UN
system to include:
a) In-country coordination activities mandated by the
GA as the sole responsibility of UNDP
b) In-country development activities supporting
UNDP/UNICEF/UNFPA participation in the UN
Country Team
• Further harmonization of approaches is needed in the
second area.
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Current Status
• For the 2010-2011 BSB, UNICEF and UNFPA will maintain
the content of Function 4 as it was in the previous BSB.
• UNDP has prepared a BSB mock-up which divides country
office costs/activities under function 4 into three
subcategories, the second and third of which are proposed
for consideration as development effectiveness.
– Costs/Activities that cover programme direction and
oversight, and remain in the BSB;
– Costs/Activities that cover programme development and
implementation;
– Costs/Activities that cover programme policy advisory
services.
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The Way Forward
• Based on Executive Board guidance, the three
agencies will continue to work towards:
- Improved harmonization, with an emphasis on
increased transparency, comparability and
accountability
- Full alignment of BSBs with approved strategic plans
- Provision of information on planned versus actual BSB
costs and results
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