ACABQ and Member States queries regarding the UNICEF Integrated Budget

Similar documents
ACABQ and Member States queries regarding the UNICEF Integrated Budget

UNICEF Integrated Budget Informal Briefing to the Executive Board

UNICEF Integrated Budget Executive Board Informal 23 June 2017

UNICEF Integrated Budget Executive Board Informal 23 June 2017

Overview of UNICEF Financial Oversight and Management

MTSP Planned Financial Estimates Executive Board September 2011

Economic and Social Council

Economic and Social Council

Midterm review of the UNICEF integrated budget, Report of the Advisory Committee on Administrative and Budgetary Questions

Economic and Social Council

Private Fundraising: 2013 workplan and proposed budget

UNICEF s Strategic Planning Processes

Economic and Social Council

Institutional budget for

Ver 5 26Sep2016. Background Note. Funding situation of the UN development system

Economic and Social Council

Economic and Social Council

FINANCIAL REPORT AND AUDITED FINANCIAL STATEMENTS REPORT OF THE BOARD OF AUDITORS FOR THE YEAR ENDED 31 DECEMBER 2015 AND

Report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ)

Report on the midterm review of the UNICEF integrated budget,

Internal Audit of the Republic of Albania Country Office January Office of Internal Audit and Investigations (OIAI) Report 2017/24

The UNOPS Budget Estimates, Executive Board September 2013

Economic and Social Council

UNICEF Executive Board Informal Session First Regular Session 2018 Work Plan and Proposed Budget: Private Fundraising and Partnerships

Structured dialogue on financing the results of the UNICEF Strategic Plan,

UNFPA EXECUTIVE BOARD DECISION-TRACKING MECHANISM

Executive Board of the United Nations Development Programme and of the United Nations Population Fund

Financial report and audited financial statements. Report of the Board of Auditors

Annotated Outline - Joint Cost Recovery Paper Background. I. Introduction. Presentation/Discussion of Proposals

Cost Recovery. Joint UNDP, UNICEF, UNFPA and UN Women Executive Boards briefing 26 April 2017

United Nations DP-FPA/2013/1 E/ICEF/2013/8. Summary. Distr.: General 16 January Original: English

Economic and Social Council

Internal Audit of the Tanzania Country Office

Economic and Social Council

Using Investment Funds to Increase Income from the Private Sector

Executive Board of the United Nations Development Programme, the United Nations Population Fund and the United Nations Office for Project Services

Economic and Social Council. Operational Activities for Development Segment February 2015

REPORT 2015/095 INTERNAL AUDIT DIVISION

Economic and Social Council

Supplementary matrix 1

Program and Budget Committee

DRAFT UPDATE ON THE FINANCIAL FRAMEWORK REVIEW

Office of the Secretary of the Executive Board EXECUTIVE BOARD DECISION MONITORING TABLE

REPORT 2014/153 INTERNAL AUDIT DIVISION. Audit of the United Nations Office for Disaster Risk Reduction

Internal Audit of the WASH programme of the Kenya Country Office

External and internal audit recommendations: progress on implementation

Overall principles. Objective and scope

UNDP Financial Regulations and Rules

Joint report on cost recovery

Internal Audit of the Islamic Republic of Afghanistan Country Office

Plan International Canada Inc. Financial Statements June 30, 2017 (in thousands of dollars)

BACKGROUND PAPER ON COUNTRY STRATEGIC PLANS

Human resources update, including on the global internship programme

Friday, 4 June Distinguished Co-Chairs, Distinguished Delegates, Ladies and Gentlemen,

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

Joint Briefing on Cost Recovery. Executive Boards of UNDP, UNFPA, UNICEF, and UN Women. 27 August 2018

Report the Advisory Committee on Administrative and Budgetary Questions (ACABQ)

E Distribution: GENERAL ORGANIZATIONAL AND PROCEDURAL MATTERS. Agenda Item 10 BIENNIAL PROGRAMME OF WORK OF THE EXECUTIVE BOARD ( )

Proposed Programme of Work and Budget

We recommend the establishment of One UN at country level, with one leader, one programme, one budgetary framework and, where appropriate, one office.

Biennial programme of work of the Executive Board ( )

Addendum. E/ICEF/2015/5/Add.1 18 May 2015 Original: English. For information

Management response to the recommendations deriving from the evaluation of the Mali country portfolio ( )

Executive Board of the United Nations Development Programme, the United Nations Population Fund and the United Nations Office for Project Services

ANNEX I: QCPR MONITORING AND REPORTING FRAMEWORK

UNICEF and UN Coherence

Preliminary draft of the UNDP results-based biennial support budget estimates, *

NATIONAL CASA ASSOCIATION FINANCIAL REPORT DECEMBER 31, 2017

Options for increasing flexibility of the funds in the Trust Fund for Supplementary Activities 1

INDIVIDUAL CONSULTANT PROCUREMENT NOTICE TOR - CONSULTANCY IC/2012/026. Date: 16 April 2012

Biennial programme budget of the Office of the United Nations High Commissioner for Refugees

199 EX/5 Part II page 81. F. Structured Financing Dialogue (Follow-up to 197 EX/Decision 5 (IV, B)) A. Background. (i) Initial decision (2012)

REPORT 2016/038 INTERNAL AUDIT DIVISION. Audit of the Office for the Coordination of Humanitarian Affairs operations in South Sudan

Road Map for the Development of the UNFPA STRATEGIC PLAN Date: September 2, 2016

Sustainable Development Goals Fund (SDG Fund) Framework and Guidance for Partnerships with the Private Sector

Economic and Social Council

THIS IS UNFPA. Integrated Budget Executive Board informal 5 June 2017

WFP Executive Board. 2 nd Informal Consultation Management Plan September 2016

Hundred and Thirty-eighth Session. Rome, March Measures to Improve Implementation of the Organization s Support Cost Policy

October 2015 FC 159/5. Hundred and Fifty-ninth Session. Rome, October Update on the Financial Framework Review

WHO reform: programmes and priority setting

UNICEF work with countries transitioning from middle to high income status

Hundred and Thirty-fourth Session. Rome, October WFP Anti-Fraud and Anti-Corruption Policy

MAKE-A-WISH FOUNDATION OF WISCONSIN FINANCIAL STATEMENTS YEAR ENDED AUGUST 31, 2018

The QCPR. Presentation to UNCTs on the Quadrennial Comprehensive Policy Review (QCPR) 13 March, 2013

Annual Audited Financial Statements Financial Highlights

Economic and Social Council

General Assembly Economic and Social Council

REPORT 2015/174 INTERNAL AUDIT DIVISION

Consolidated Annual Financial Report on Activities Implemented under the DRC Humanitarian Fund

Financial rules for voluntary funds administered by the High Commissioner for Refugees 1

Internal Audit of the Haiti Country Office

The notes on pages 4 to 8 are an integral part of these Appeal Financial Statements.

UNITED WAY OF THE SOUTHERN TIER, INC. FINANCIAL STATEMENTS JUNE 30, 2016

Opening statement to the Fifth Committee

Update on UNICEF humanitarian action with a focus on linking humanitarian and development programming

Annex 1: The One UN Programme in Ethiopia

AUDIT UNDP COUNTRY OFFICE BANGLADESH. Report No Issue Date: 28 May 2015

WFP Executive Board. 1 st Informal Consultation WFP Management Plan ( ) 13 July 2017

Biennial programme of work of the Executive Board ( )

Transcription:

Topic Issue(s) Response Investment in the Evaluation function and progress to achieving the 1% target Request update on the planned levels compared with the targeted 1% of programme expenditure on the Evaluation function UNICEF will achieve the target of a minimum of 1 per cent of programme expenditures for evaluations during the Strategic Plan by investing Regular Resources and Other resources at all levels of the organization. Provisions in the Institutional Budget for Evaluation shows an increase of 33% from the 2014-2017 period. The proposed increase will help strengthen the capacity of Regional Offices and Headquarters to produce and disseminate credible and timely evaluations. It is also expected that partners will increase Other Resources to leverage the projected growth in the allocation of Regular Resources, especially towards high quality evaluation products and processes at the country level. Investment in Humanitarian action Senior posts / HQ posts Request more information on the future investment / expenditure in humanitarian action. Clarification: are the additional 8 posts included in the EB To deliver faster, more effective and at-scale humanitarian response in line with the Core Commitments for Children in Humanitarian Action, UNICEF is planning to invest $5.8 billion over the quadrennium. Included in this amount is $5.5 billion to address humanitarian needs in response to protracted and developing crises and emergency appeals. To facilitate ready availability of financial and human resources, several additional measures are planned. The Emergency Programme Fund ceiling of $300 million provides flexibility to allocate resources for immediate use. New Emergency Response Team (ERT) posts, totalling $17 million, and representing different functional areas will strengthen the capacity of UNICEF to respond rapidly to emergencies. EMOPS, with a quadrennial institutional budget of $35 million, will continue to coordinate efforts to provide quality, effective and timely support to country and regional offices, and to strengthen engagement with UN agencies to foster coherence and complementarity. To address the organization s ability to respond to changing circumstances in programme countries, the ED was authorized to create up to ten Page 1 updated 17 August 2017

(ACABQ, Member States) Resource mobilization, particularly Private Sector (ACABQ, Member States) approved ceiling of 10 or additional? Questions regarding the growth in HQ posts compared with RO/CO Are the resource mobilization goals reasonable? Why is fundraising investment increasing? additional senior level posts when warranted by the increasing complexity of the portfolio (i.e. in complex emergency situations). UNICEF remains within the ceiling. On a net basis, 3 senior posts have been approved and 5 are under management consideration; all are field-based. Given the continuing challenges faced by the organization, an extension for the additional posts has been requested for the 2018-2021 IB period. HQ posts decrease by a percentage point of total posts, from 31% to 30%. Capacity strengthening in results systems and knowledge management; corporate oversight and assurance; corporate information communication technology; and human resources management have been strengthened to support the strategic goals and effective programme delivery of the organization. There has been strong growth in revenue over 2014-2017 period with actual revenue 21% above the MTR planned amount. A detailed analysis of global public and private sector resource mobilization trends has identified areas for additional growth, particularly through an increase in the recruitment and retention of monthly pledge donors and enhanced focus on Legacy, Corporate and Foundation fundraising opportunities. The objective is to mobilize private fundraising and partnerships in support of the UNICEF Strategic Plan, 2018-2021 of $9.6 billion gross ($7.5 billion net); mobilize tens of millions more supporters to volunteer, advocate and give for the cause of children; and harness the power of business to deliver on child rights. Page 2 updated 17 August 2017

What are the specific actions to grow resources, especially RR, from the private sector? In 2016, private sector contributions to RR increased 19 percent, from $530 million in 2015 to $629 million in 2016, marking an all-time high for private sector donations to RR. Of this, a total of $29 million was generated by private sector fundraising in middle- and high-income countries through UNICEF country offices. This consistent growth is the result of a sound business model for private sector fundraising- investing in proven techniques and innovating new techniques. Growth trends and market research show that with sufficient investment, market development and expertise, UNICEF is well positioned to substantially grow revenue from the private sector in the coming years, especially of unrestricted resources from individual donors. For the period 2018-2021, UNICEF aims to significantly increase annual revenue from the private sector by 46% overall, with a 57% increase in RR. This is an increase from US$1.48 billion, including US$665 million in RR in 2017 to an annual income of US$2.16 billion, including just over US$1 billion in RR by the end of 2021. This growth will require investment that is commensurate with the fundraising targets. Investing has proven to be a key driver of private sector fundraising success, particularly to grow RR revenue, generating a gross return of three to one over 36-month period and an estimated eight to one over ten years. With sufficient investment and market development expertise, UNICEF estimates that it will: Raise US$7.5 billion net revenue from 2018-2021 from the private sector. This represents an increase in net revenue from the private sector by US$2 billion. Page 3 updated 17 August 2017

Raise US$3.6 billion in RR from 2018 to 2021, $1.2 billion more than 2014-2017. Double the number of individual donors from 7.8 to 14 million, 10 million of whom will make pledge donations by 2021, with a projected 30 million pledge donors by 2030. Raise $3.5 billion in ORR from 2018 to 2021 from foundations, major donors, membership and faith based giving and corporates. Details on Cost breakdown and Efficiencies (ACABQ, Member States) What risk mitigation measures are planned if targets are not met? Provide evidence of continued focus on efficiencies. Requests more detailed expenditure breakdown. Questions regarding ratios and comparators. To mitigate potential risks, Unicef regularly monitors revenue performance and reports to the EB through regular statutory updates and reports (EDAR, Financial Updates, etc.). In addition, the PFP budget is approved annually by the EB and will also provide information on the proposed investments. UNICEF s quest for effectiveness and value has generated cost savings in several areas and will continue through 2018-2021. UNICEF is one of the largest buyers of supplies for children -- in 2016 procuring over $3.6 billion in supplies and services, including $500 million from US based suppliers. Also in 2016, our supply function achieved its largest savings ever, approximately $520 million resulting from targeted procurement strategies. Total savings achieved for UNICEF and partners (including governmental and UN partners) amount to about $1.5 billion over the last five years. The organization s Global Shared Services Center, which centrally processes UNICEF financial and administrative transactions, is expected to generate an estimated $25 million annually in cost savings. We have embarked on a simplification and modernization of our operational processes. Efficiency gains through this exercise are projected Page 4 updated 17 August 2017

at around $20 million and will offset related investments, while allowing to improve the current management cost ratio, despite an increasingly complex environment for implementing programmes. UNICEF country offices worldwide are increasingly collaborating with other UN agencies on the ground to deliver local business solutions in IT, procurement, and cash transfers to implementing partners. In 2015, country offices reported a combined savings of nearly $3 million that were achieved by sharing the costs of business solutions implemented jointly with other UN agencies. At the global level, UNICEF is one of three agencies leading an important initiative on joint fleet management, which will yield an annual saving of up to $4 million, increase the safety and security of our personnel, strengthen fleet management and reduce our carbon footprint. The Field Results Group will continue to help the organization strengthen results based management practices. Core office work processes have been targeted for simplification to maximize UNICEF staff time focused on achieving results. Through process engineering and technology investments global staff time savings amount to 200,000 hours. In addition, Performance Scorecards were introduced to encourage continuous progress. They also support offices to put improvement measures in place for both efficiency and programme effectiveness Reflecting the above, when compared with the 2014-2017 MTR, the 2018-2021 institutional budget decreases from 10.5% to 10.2% of the total integrated budget. This ratio was 11.9% in the approved 2014-2017 plan. Cost recovery (ACABQ, Member States) Recognizes improved net effective cost recovery rate and UNICEF is complying with the EB approved harmonized approach to full cost recovery and ensuring that expenditures are fairly attributed between core and non-core resources. UNICEF has projected an effective rate of 7.5% for Page 5 updated 17 August 2017

SP/IB linkages UNDS Cost breakdown Quadrennial Budget (ACABQ) encourages reaching full cost recovery. Query regarding alignment the goal areas of the Strategic Plan with the structure of the budget document. Request more information on the costs associated with UN Development activities. Provide your opinion on the value of a quadrennial budget. 2018-2021 considering differentiated rates for Thematic (7%) Private Sector (5%), Legacy, Programme Country (5%) and South-South contributions (5%) which will lower the average below 8%. We will continue to work with the Board and other UN Funds and Programmes on further reviewing alternative harmonized cost recovery approaches. The integrated budget is aligned with the Strategic Plan, as indicated in the Integrated Resources and Results Framework (IRRF). The IRRF is harmonized with the other UN Funds and Programmes. Resource allocation decisions have been made based on SP defined priorities; revenue growth will support the Strategic Plan targets that have been set in support of the SDGs. Expenditure on key reform areas is fully aligned with the Strategic Plan. UNICEF has internal tracking mechanisms to monitor the results and associated resources and will report on this through the Executive Director s Annual Report. UNICEF contributes to overall UN programme coordination through the UN Resident Coordinator System with a financial contribution of $17 million. The Inter-Agency Standing Committee (IASC) Transformative Agenda established the cluster coordination mechanism to increase the effectiveness of humanitarian response by building partnerships. UNICEF is responsible for the coordination of partners for the WASH, nutrition and education humanitarian clusters, along with areas of responsibility (AoRs) in child protection. $32.2 million is budgeted for this Inter-Agency work. The quadrennial budget format was introduced in response to the request of the Executive Board to align and strengthen the link between the strategic plan results and related resources (Ref Executive Board decisions Page 6 updated 17 August 2017

Is a quadrennial budget reasonable? 2009/20 para 7 and 2012/20 para 9), to allow the Executive Board to consider a funding proposal that encompasses all cost categories, funding sources and results of the organization within a single integrated framework. Integrated Budget by location Consultants for staff roles (ACABQ) How much of the budget is spent in HQ and in the Field Please comment on 2014 JIU report on use of consultants for staff roles (JIU/REP/2014/8, p. As UNICEF is 100 % funded by voluntary contributions, revenue and expenditure estimates are key to the planning and budgeting process. The Integrated Budget s estimates are prepared for a 4-year period, with the risk of estimation error mitigated through (i) review of actual financial performance on an annual basis as documented in the UNICEF Strategic Plan: updated financial estimates, and more importantly (ii) mid-term review (MTR) of the strategic plan, both of which are submitted to the Executive Board. The MTR provides an opportunity to review progress on results and propose adjustments to the integrated budget. Finally, the UNICEF annual financial statements (audited by UN Board of Auditors) include a statement of comparison of budget to actuals in line with IPSAS reporting requirements. The quadrennial budget also provides more flexibility for reallocation of resources to meet emerging priorities, in line with updated revenue projections. $21.2 billion (85 %) of the UNICEF Integrated Budget for 2018-2021 will be spent in field locations (regional and country offices) and $2.8 billion (15 %) will be spent in Headquarters. UNICEF has accepted all the relevant JIU recommendations, except for recommendation 11 on access to internal formal justice mechanisms by non-staff. This recommendation requires General Assembly decision. Page 7 updated 17 August 2017

67). Please provide updated annual figures for years 2014-2016 and the total number of staff at present. What recommendations from the JIU to UNICEF have been implemented and which were rejected? How many non-staff do you have today? UNICEF s policy on consultants and individual contractors is currently under review and will address the issue of use of non-staff for staff functions. Some provisions are already in place that clearly delineate when a staff appointment should be used, including: (a) Consultants cannot have any representative, certifying, approving authority or supervisory responsibility. (b) Consultants contracts are limited in duration by mandatory breakin-service, thereby preventing the extended use of their service. As of July 2017, there are 3,336 consultants under contract with UNICEF. The annual figures (as of 31 December, for each year) are provided in the table below for comparison. 2014 Staff Non-staff* % nonstaff HQ Field Total HQ Field Total 1559 10574 12133 432 2579 3011 20% 2015 Staff Non-staff % nonstaff HQ Field Total HQ Field Total 1576 11071 12647 520 2906 3426 21% 2016 Staff Non-staff % nonstaff HQ Field Total HQ Field Total 1832 11261 13093 524 3010 3534 21% It is important to note that on average, approximately 50 % of consultants work full time (defined as being on a contract of at least 11 months duration), whereas the others were on shorter-term contracts (sometimes only for a few days per year, such as facilitators, trainers and Page 8 updated 17 August 2017

photographers). Full-time consultants thus accounted for about 11% of the overall workforce in 2016 (10 % in 2014; 12 % in 2015). Travel Budget (ACABQ) Why does the travel budget increase? How does this relate to the proposed increase in the number of staff? The increase in travel costs of 9.2 % in 2018-2021 is partially attributed to the increase in posts in field office locations (2,166 in 2018-2021 compared to 1,938 in 2014-2017). Headquarters and regional support to ongoing emergencies and the operational modalities of sub-regional hub support and zone office management have also contributed to the planned rise in travel costs. Finally, supplemental activities related to evaluation, HACT assurance activities and fundraising have contributed to the increase in investments in travel. UNICEF is finalizing measures to improve monitoring and control of travelrelated expenditures and intends to show savings in this area in the coming years. As part of this effort, the organization will make better use of technology to reduce the need for travel. Page 9 updated 17 August 2017