UNHCR 47 th Meeting of the Standing Committee

Transcription

1 UNHCR 47 th Meeting of the Standing Committee Programme Budgets and Funding in 2009 and Projections for 2010 As reported in document EC/61/SC/CRP.7 Presentation by the Controller Ms. Karen Madeleine Farkas 04 March 2009 Thank you Mr. Chairman. Mr. Chairman, Distinguished Delegates, Ladies and Gentlemen, This presentation is intended as an overview to conference room paper EC/61/SC/CRP.7. An annotated copy will be available on our website after today s session. I am pleased to announce that the 2009 accounts have been closed and will be signed by the High Commissioner next week. The financial situation reported herein is therefore based on near final estimates prior to closure. Thus, all income and expenditure figures reported in the CRP are provisional. 1

2 Millions of US$ 2,400 Overall Trends Annual and Supplementary Programme Budgets 2,200 2, ,000 1, , ,800 1,600 1,400 1,200 1, , , , , , , , , , , , , , , , , , , BUDGET EXPENDITURE FUNDS AVAILABLE Estimates 2 Concerning Overall Trends. As can be seen from this slide, UNHCR s 2009 Annual and Supplementary Programme budgets received positive donor support. The Annual Programme Budget was close to being fully funded while the Supplementary Programmes were funded to a level of 67%. This level of donor support is much appreciated, and allowed UNHCR to implement a significant part of the programmes approved by member states. 2

3 2009 Overall Financial Situation Total Budget: Annual Programme Budget $ m 29 Supplementary Programme Budgets $ m Total $ m Total Projected Income: Projected Income (with adjustments) $ m Carry-over 2008 $ 157.4m Total $ m Total Projected Expenditure: Annual Budget $ m Supplementary Programme Budgets $ 634.2m Total ($ m) Total Carry-over 2009 (AB $108.0m, SB $96.5m) $ 204.5m 3 Concerning the overall Financial situation: Total requirements for 2009 amounted to $2,293.4 million, comprising $1,292.6 million under the Annual Programme Budget (which includes $46 million under the United Nations Regular Budget and $12.1 million for Junior Professional Officers - JPOs), and a further $1,000.8 million under 29 Supplementary Programme Budgets. Pending closure of the 2009 accounts, total projected income with adjustments in 2009 was $1,800.4 million, totaling $1,957.8 million with the inclusion of the 2008 carry-over of $157.4 million. Total projected expenditures under the Annual Programme Budget amounts to $ 1,119.0 million (including $46 million under the UN Regular Budget and an additional $12.1 million for JPOs). Under Supplementary Programme Budgets, the projected expenditures amount to $634.2 million. The 2009 closing balance is thus estimated at $204.5 million comprising $108 million under the Annual Programme budget and $ 96.5 million from Supplementary Programme budgets. 3

4 2009 Annual Programme Budget Total Annual Programme Budget: Annual Programme Budget (Revised) $ 1,082.3m Operational Reserve $ 108.2m NAM Reserve (increased from $75m) $ 90.0m JPOs (increased from $10m) $ 12.1m Total $1292.6m Total Annual Programme Income: Contributions $ m Other income and adjustments $ 52.4m Carry over from 2008 $ 84.8m Total $1227.0m Total Annual Programme Expenditure: As at 31 December 2009 ($1119.0m) Total Annual Programme Carry-over 2009 (incl. JPOs) $ 108.0m 4 Regarding the 2009 Annual Programme Budget. At it s 59 th session in October 2008, the Executive Committee approved revised programmed activities of $1,082.3 million for the 2009 Annual Programme Budget. This included $39.2 million from the UN Regular Budget. Additional provisions were also approved for the Operational Reserve of $108.2 million, and for the New or additional activities mandate-related Reserve, the NAM, of $75 million. $10 million were approved for JPOs. It should be recalled that the 2008/2009 biennium programme budget was initially prepared based on guidelines, priorities and goals as well as planning assumptions, budget rates, income and expenditure targets established in early It was therefore necessary to actualize these assumptions and priorities which formed the basis of the approved revised 2009 Annual Programme budget. In October 2009, the 60 th session of the Executive Committee adopted a decision to raise the appropriation level for the NAM reserve from $75 million to $90 million in order to accept additional contributions towards mandated activities. With a further increase of the JPO budget approved from $10 million to $12.1 million (due to higher than expected contributions), the total revised Annual Programme Budget for 2009 amounted to $1,292.6 million. With a carry-over from 2008 of $84.8 million, $1,089.8 million received in contributions and $52.4 million derived from other income and adjustments, the total funds available under the 2009 Annual Programme Budget were $1,227 million. Estimated expenditure stood at $1,119 million as at 31 December 2009, resulting in an estimated carry-over for 2010 programmes of $108 million. 4

5 2009 Supplementary Programme Budgets Total Supplementary Programme Budget: 29 Supplementary Programme Budgets approved $ m Total Supplementary Income: Contributions $ 671.8m Carry over from 2008 $ 72.6m Total $ 744.4m Total Supplementary Programme Expenditure: As at 31 December 2009 with adjustments ($ 647.9m) Total Supplementary Programme Carry-over 2008 $ 96.5m 5 Now turning to 2009 Supplementary Programme Budgets. 29 Supplementary Programme Budgets were approved for 2009, including 11 for internally displaced persons (IDPs), bringing the total budget for 2009 Supplementary Programmes to $ million. With a carry-over from 2008 of $72.6 million and $671.8 million received in contributions, $744.4 million were available under the 2009 Supplementary Programme Budgets. Estimated expenditure and adjustments stood at $647.9 million as at 31 December 2009, resulting in a projected carry-over into 2010 of $96.5 million. 5

6 2010 Annual Budget 2010 Total activities (all pillars) $ m Operational Reserve $ 196.8m Total activities (all pillars) & Operational Reserve $ m NAM $ 20.0m JPOs $ 12.0m Total Requirements approved by ExCom $ m Three Supplementary Budgets since Jan 2010 $ 38.6m Total 2010 Annual Budget $ m 6 Regarding The 2010 Annual Budget represents the first year of the 2010/2011 Biennium Programme Budget approved by ExCom at it s 60 th session in October This Biennium Budget has been prepared based on a comprehensive assessment of needs using a new budget structure comprising 4 pillars (following approval by the Standing Committee at it s 41 st meeting in March 2008). It is therefore difficult to make a comparison between the biennium programme budgets of 2008/2009 and 2010/2011. The 2010 approved Annual Budget amounts to $ million for total activities across all pillars. This includes contributions from the UN Regular Budget, and an Operational Reserve of $196.8 million (representing 10% of Pillars 1 and 2). In view of the fact that activities previously funded through the NAM should have been incorporated into the comprehensive needs assessment, only a relatively small NAM of $20 million was proposed and approved to respond to unforeseen circumstances. With $12 million budgeted for JPOs, the total requirements approved by the Executive Committee for 2010 thus amounts to $3,007.2 million. Since January 2010, three supplementary budgets have been approved, for a total value of $38.6 million. These relate to the increased activities and emergency response for refugees and internally displaced in the Republic of Congo ($21.9 million), Yemen ($10.9 million) and Central African Republic ($5.8 million). Therefore, the total combined 2010 Annual Budget currently amounts to $ million. 6

7 Some Conclusions for Donor confidence and support continued to be robust Donor support for the NAM Reserve was strong, with subsequent total allocations amounting to $82.3 million, and $79.6 million transferred from the 2009 Operational Reserve Financial stability has again been sustained with a healthy 2009 year-end carry-over estimated at $204.5 million Strict risk management measures to reduce forex exposure Tight management of the OR Close monitoring of implementation of activities 7 In conclusion, we note that in 2009: Contributions and donor confidence remained robust. Contributions to the New or additional activities mandate-related Reserve (NAM) amounted to $82.3m indicating continued donor interest in these important activities. $79.6 million was transferred from the 2009 Operational Reserve in support of priority activities and to meet new emergencies. Despite the financial instability during 2008 and in the beginning of 2009, UNHCR finished the year with a healthy and adequate carry-over of $204.5 million, which facilitates early funding in 2010 of programmed activities and organizational priorities. This favourable carryover is partially due to actions taken to safeguard cash assets and reduce the effect of foreign exchange impacts in budgetary and actual terms despite turbulent financial markets, low interest rates, and foreign exchange volatility. The Operational Reserve was also tightly managed throughout the year and implementation of activities were closely monitored. GNA pilot programmes were implemented only progressively as funds were received. As a result, UNHCR was able to avoid any roll-back in programmes that would have had a negative impact on beneficiaries and our relationships with implementing and operational partners. 7

8 Moving Forward in New comprehensive needs budget: $3bn New Budget Structure Do not anticipate receiving full amount this year Fiscal discipline and good programme management to prioritize needs to projected levels of funding Early contributions and non-earmarked funds allow spending authorities to be issued towards prioritized activities Operational Reserve to be carefully managed Activities under Pillars 3 & 4 implemented primarily when specific contributions identified Constant review of: financial markets, income from donors, programme implementation, to ensure effective prioritization as year proceeds 8 Mr. Chairman. Finally, as we move forward in This year, for the first time, UNHCR has an approved budget based on comprehensive needs as compared to previous budgets proposed to ExCom based on expected income. This comprehensive needs budget is organized using a new budget structure. As previously discussed with ExCom, we do not anticipate receiving full funding of the budget this year. Therefore, good fiscal discipline and programme management requires that we prioritize the needs in line with our current projected levels of funding. This has been done. Prioritized plans have been developed against these projections and are now being implemented. Early receipt of unearmarked contributions provide UNHCR the ability and flexibility to implement these prioritized plans. Allocations from the Operational Reserve will continue to be tightly and diligently managed to ensure that funds continue to be available to respond to emergencies, new needs and priority activities. Some initial spending authority has been provided to ensure the continuing implementation of activities under Pillars 3 and 4. However, expansion of these activities very much depends on additional contributions being received. In conclusion Mr. Chairman, we have commenced implementation of activities included in the approved Annual Budget for 2010 based on a comprehensive assessment of needs. We will closely monitor the financial markets, the projected income-stream from donors, and programme implementation to ensure most effective utilization of resources. Thank you. 8