1. 2006-2007 BIENNIAL SUPPORT BUDGET PROPOSAL An Overview
Informal Executive Board Discussions
31 August 2005

2. Overall financial situation The 2006-2007 support budget proposals
UNDP funding modalities, proportionality, progress, cost recovery-progress – funding mix, the growth in RR (target met)
SESSION OBJECTIVES:
Recap of issues presented in May informal session on UNDP’s budget strategy:
Key drivers in developing the budget
UNDP strategic direction and funding modalities
Overall financial situation
The support budget proposals
ACABQ Comments
19-May-19

3. Recap of 20 May informal session

4. Multi-Year Funding Framework
The biennial support budget is an integral part of UNDP’s second Multi-Year Funding Framework (MYFF) for
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.
19-May-19

5. 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 budget strategy
Strategic investments funded through re-deployment
Gradual implementation of proportional funding between regular and other resources
BUDGET PRIORITIES
BUDGET PROPOSALS
19-May-19

6. STRATEGIC DIRECTION FOR 2006-2007
Commitment to and support for UN reform
Emphasis on assistance to programme countries’ efforts to achieve MDG targets by 2015
Realignment of the funding modalities for operational support structures to reflect the multi-funded nature of UNDP
Continued support to key themes
Strengthened partnerships
Enhanced knowledge and learning
Improved efficiency, performance and results based management
Continued focus on crisis prevention and recovery
1. Continued support to UN reform agenda
Effective Resident Coordinator system (TRAC 2 resources)
Lead country level UN coordinated efforts to support MDGs road maps
Simplified and harmonized programme operational modalities (# of countries/BDP)
Exploring opportunities for increased cohesion and rationalization of UN agencies presence in programme countries (joint offices,..)
2. Support programme countries efforts to achieve MDGs targets by 2015
Strategic partnership with other development agencies
Substantive advice and knowledge transfer/sharing to programme countries
Focus of programmatic interventions in support of MDGs (BRSP)
Strengthen country and global levels advocacy and communication for achievement of MDGs targets
4 . ERP, regionalization, certification, alignment of CO structures to support UN reform
19-May-19

7. 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
19-May-19

8. 2. Overall financial situation
19-May-19

9. A multi-funded UNDP: Biennia 1992-1993 to 2006-2007 (estimates for 2004-2005 and 2006-2007)
Donor Resources:
Regular Voluntary Contr.
Local Resources: Govt. cost sharing
Donor Resources: Trust Funds & 3rd Party cost sharing
19-May-19

10. UNDP Projected Contributions
( )
(millions of US $)
2004/2005
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
19-May-19

11. ESTIMATED USE OF 2006-2007 TOTAL UNDP RESOURCES ($8 159 million)
Programme Support &
Management & Administration & UNCDF & UN Mandated Security
10.2%
(Millions of US$, Percentages)
Programmes & Support to the
Operational activities of the UN
89.8%
19-May-19

12. 3. 2006-2007 support budget proposals
19-May-19

13. 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.
19-May-19

14. UNDP 2006-2007 SUMMARY OF PROPOSALS
SMT from note
19-May-19

15. STRATEGIC INVESTMENTS (Total $16.0 million)
Country Offices Headquarters
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 $0.3 million
UN Development Group office $1.1 million
Administration of Justice $1.1 million
Base structure alignment $0.4 million
TOTAL $13.1 million $2.9 million
19-May-19

16. 4. ACABQ Comments
19-May-19

17. 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 Multi-Year Funding Framework;
More justification and rationale on proposals for new posts and reclassifications in related narratives;
High priority to Results-Based budgeting and harmonization with other agencies in ;
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);
19-May-19

18. 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.
19-May-19

19. DISCUSSIONS
19-May-19