Budgeting and Funding of United Nations Regular Budget
Transcript of Budgeting and Funding of United Nations Regular Budget
Budgeting and Funding of United Nations Regular Budget
Mr. Johannes Huisman, Director
Office of Programme Planning, Finance, and Budget (OPPFB)
Programme Planning and Budget Division (PPBD)
September 8th, 2021
Human resources
Scales of assessment Budgets
Other administrative matters
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Fifth Committee (Administrative and Budgetary Committee)
Entrusted with administrative and budgetary matters such as:
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Financial statements: audited and factual financial positionBudgets: cash requirements, programme plans and performance
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Financial statements Proposed prog. budgetElements
Financial period Latest past period Next future period
Accounting basis Accrual & mod. cash in statement V Modified cash only
Presentation Higher level, by budget Part More detailed, by budget Section and subprogramme
Content and scope Financial position, financial performance and cash flows
Programme plans, programme performance,
post and non-post requirements
Independent audit By the Board of Auditors (BoA) PPB report not audited
OversightGeneral Assembly based on
recommendations of the BoA and ACABQ
General Assembly based on recommendations of the
CPC and ACABQ
Nine thousand pages of budgetary information
2500 pages of responses to
ACABQ
4500 pages ofbudget reports
500 pages of supplementary
reports
Budget Information Portal
https://results.un.org/
500 pages of ACABQ reports 150 pages of
CPC report
Update in Q4 of 2021
General Assembly
30 pages ofGA resolution
Live
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Improved accessibility through online tools to facilitate GA deliberations
Nominal growth between 2014 & 2022 of $440m or 15%
2,2292,386 2,246 2,207 2,281 2,403 2,362 2,478 2,389
598596 561 669 635 656 712 730 731
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1,000
2,000
3,000
4,000
2014 2015 2016 2017 2018 2019 2020 2021 2022
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Regular Budget SPMs
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3,0743,0592,9162,8762,8072,982
2,827
(21%)(20%)
(20%) (23%) (22%)(21%) (23%)
3,208
(23%)
3,120
(23%)
No real growth; Recosting totals $430m
150?3,270?
Total posts approved for 2014-2015: 10,118Total posts proposed for 2022: 10,005
Recosting parameters subject to technical revision
* If actual expenditures for staff exceed appropriation additional resources will be sought
Inflation Updated Consumer Price Index from the Economist
Rates of Exchange Adjustments due to currency fluctuations
Projected Staff Cost*Actual payroll and allowancesPost adjustment/cost of living
adjustmentsActual vacancy rates
RecostingParameters
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Recosting remains technical process. Changes to the methodology require approval by the GA
2020 2021
PPB 2021 approved by GA
• Forward RoE for 2021
Updated projection for 2021 of:• Post adjustment multiplier• Cost-of-living adjustment• Consumer-price Index
Projections based on prior expenditure experience for:• Standard salaries• Vacancy rates
Formulation of PPB 2022
• Use of same forward RoE for 2021
Preliminary projection for 2022 of:• Post adjustment multiplier• Cost-of-living adjustment• Consumer-price Index
Use of same:• Standard salaries• Vacancy rates
Revised estimates PPB 2022
• Forward RoE for 2022
Updated projection for 2022 of:• Post adjustment multiplier• Cost-of-living adjustment• Consumer-price Index
Projections based on prior expenditure experience for:• Standard salaries• Vacancy rates
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Assessment to Member States reduced by income estimates, mainly staff assessment
More than $250m in staff assessment
contributes to lower assessments
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Appropriations under
expenditure sections
Approved income
estimatesOther
Decreasing trend in overall assessment
196 190 66 109 93 90 80 82
2,612 2,771 2,549 2,578 2,487 2,849 2,867 2,955
6,783 6,377
10,631
6,866
4,981
9,406
6,593
3,615
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2,000
4,000
6,000
8,000
10,000
12,000
14,000
2014 2015 2016 2017 2018 2019 2020 2021
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Peacekeeping Regular Budget Tribunals
9,591
13,246
9,553
7,561
12,345
9,540
6,652
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Annual average 9,7289,338
PPB, includes regular budget and estimates for XB & support account• RB estimates proposed for approval. Programme plans enabled by resources from all funding sources.• Extrabudgetary (XB) estimates & support account resources for information purposes• 75% of XB estimates are for Refugees (under UNHCR and UNRWA)
Regular Budget(19%)
XB - Refugees(59%)
Support account(3%)
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XB – All other*(17%)
*Mostly RC System, UNEP, HABITAT, UNODC, UN Women & Human Rights
Working towards GA decision on annual budget in 2022
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2017 2018 2019 2020 2021 2022
Reform proposal
Annualized budget 3-year journey to refine format and presentation
PPB 2020SG review
Final GA decision on annual budgetRes 72/266 Res 74/251
A/74/16
PPB 2021 PPB 2022 PPB 2023
A/75/16 A/76/16Res 75/243
Budget reform: to earn trust by demonstrating added-value
Demonstration of more concrete results
Enhanced accountability
by performance &lesson learned
More responsive to
emerging needs
Deeper trust in the Organization
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Strategy
Result-based budgeting in the UN driven by resolutionsSequential nature preserved by starting w/ programme planning and target results
Resolution
Concerns
DeliverablesObjective
Inputs
Mandates
Preambular Paragraphs Operating Paragraphs
PerformanceMeasures MS Intergovernmental
UN Programme Plans UN Resources
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UN and MS Intergovernmental
PPB 2022, Financial performance report for 2020 &additional reports to be considered during main session
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2021
PPB 2022
2020 Fin. Statem. 2020 Transfers 2020 FPR
GA Main session
PBIs and Rev. Est.
Construction
Recosting
Cont. Fund
Subventions
Tribunals
Preliminary estimates of $150m expected in additional resources above PPB 2022
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Reports based on resolutions Amount in
millions of USD
Human Rights Council $35-40*
Resolutions and decisions bythe GA > $4*
Countering use of ICT $3.5Law of the Sea $0.6Counter-terrorism TBD*African Descent $0.1
Resolutions and decisions ofthe Economic and Social Council $0.5
Resolutions and decisions bythe Security Council TBD*
Colombia, Libya, UNITAMS
Total: >$40
Constructions $21.2
ECA -ECLAC $6.6ESCAP $7.0UNON $7.6
Strategic Heritage Plan (presented outside RB) $71.7
Subventions $18.6
ECCC $7.5RSCSL $2.8STL $8*
Recosting TBD*
Total: >$110
Other reportsAmount in
millions of USD
* Preliminary estimates
Discussion on CPC increasingly on substantive issues and less on format
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OHRLLS
DPPA
ESCWA
UNCTAD
And many others
Various funding mechanisms; not all with immediate appropriation
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Description AppropriationFunding mechanisms
Proposed programme budget Requirements known until April ü
Unforeseen and extraordinary expenses (UEE)
$10m with the concurrence of ACABQ (if >10m GA) û
$8m under SG authority to quickly respond to events that threat
maintenance of peace and securityû
ICJ: 362.5k Security: 500k û
Subventions Complement XB funding and honor obligations and mandates ü û
PBIs and Rev. EstimatesFollowing resolutions deciding
on new / expanded mandates or SG initiatives as per Fin. Reg.
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û Presented post-facto in the financial performance report for possible appropriation
Contingency fund is not a funding mechanismIt’s a presentation mechanism
• Political margin set at 0.75% of the appropriation to accommodate mandates not in the programme budget.
• Depending on the magnitude of new and expanded mandates with budgetary implications, level of the contingency fund may be exceeded.
• Appropriation outside of contingency fund will be sought when PBIs and revised estimates exceed level set for the contingency fund.
• General Assembly regularly approves RE and PBIs that exceed level set for the contingency fund.
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Prop. Programme
budget
PBIs, Revised Estimates and Construction Up to 0.75% of
previous appropriation
Appropriation and charge against
contingency fund
Appropriation
ü
û
Budgetary implications influenced by nuances in language
Condition 1Binding request for action
Decides…
Mandates…
Requests…
Condition 2New/expanded activities
A new report of…
New consultations…
Additional meetings…
or ➔ No PBIs
and ➔ PBI triggered
Illustrative examples• Invites to explore… N
(no conditions met)
• Decides to maintain… N
(only condition 1 met)
• Invites a new report N(only condition 2 met)
• Request a new report Y (both
conditions met; hence, budget
implications)In contrast to: encourage, call upon, invites, etc. In contrast to: maintain, continue to, etc.
Condition 1 Condition 2
Condition 1 Condition 2 20
Case by case assessment continues to be required