1. 1 UNRWA FINANCIAL REPORT End- April 2011

2. 2 Month Variances Donor income – favourable by $30.7m – all timing variance. PSC favourable by $1.1m, increased project activity, hence E EOY forecast increased by $2m to $20m. Area labour costs unfavourable by -$1.5m – timing due to increases in: i)LDC & Temporary staff by -$0.4, ii) CAF by -$1.3m, iii) retirement benefits by -$0.3m and annual iv) leave accrual by -$0.2m. Admin support Services unfavourable by -$0.2m – timing variance Hospital services unfavourable by $-$0.2m – timing variance Year To Date Variances Donor income – unfavourable by ($27m) due to timing variance – primarily budgeted Income not yet received including EU ($39m), Netherlands ($20m). USA$18.8m and Switzerland $10.5m received earlier than budgeted. Area labour costs unfavourable by -$2m: Basic salary favourable by $1m, retirement benefits unfavourable by -$0.1m, annual leave accrual unfavourable by -$0.7m, CAF unfavourable by -$3.3m due to lower actual rate of NIS to budget more than offset by lower labour costs due to delayed appointment of staff. Non labour costs favourable by $29.6m, due to incorrect profiling of Reserves spend – all timing variance End of Year Forecast  Initial budget deficit was -$63.0m, currently forecast at -$64.7m, an adverse movement of -$1.7m, chiefly due to: a) net of FX, decrease on donor income of -$5.5m (NGO), b) increased PSC forecast of +$2.0m, c) forecast capitalization of +$1.5m d) net adverse impact from FX revaluation of assets and FX on projects -$0.2m and e) prior period adjustments+ $0.6m.  Please note the forecast FX gain on income, +$13.3m, has been ignored as it is effectively offset by the forecast loss of -$13.6m reported against the derivatives line (ie effect of 2011 GF hedges). Movement in end of Year Forecast End of Year (EOY) forecast at March end was -$55.1m, which is currently forecast at -$64.7m, an adverse movement of -$9.6m, principally comprising: a) net of FX movt, donor income adverse by -$7.5m, b) adverse movt on new 2011 hedges for project income -$2.8m (all unrealised), c) favourable adjustment on prior period +$0.6m and d) other + $0.1m. Note that the FX reported with donor income,+$13.3m, is effectively offset by the corresponding forecast impact of financial derivatives -$13.6m. the 2 values will be closely and inversely correlated as 97% of non USD donor income is hedged. The income shows a positive FX impact, as non USD rates in April were above the budgeted/hedge rates and thus the hedges are reported as a forecast loss. April 2011 General Fund Financial Summary

3. 3 April 2011 Income Statement, General Fund - Resources US$ m

4. April 2011 Income Statement, General Fund – Resources (Page1 of 2) 4

5. April 2011 Income Statement, General Fund – Resources (Page 2 of 2) 5

6. April 2011 GF Donor Income – YTD and E EOY US$ m 6

7. UNRWA Bank Balances – April 2011 7

8. UNRWA Foreign Exchange gains and losses for 2011 to-date are made up of the following: FX Gain/Loss on Donor Income –The difference between the fixed Budget Rates and the UN exchange rate multiplied by the forecasted Donor Income amount. –The result to date is a gain of $13.3m, due to an appreciation of most currencies against the USD. –Given that 97% of non-USD GF income is hedged, the above gain or loss is offset by an equal and opposite gain or loss on the Financial Derivatives for GF (i.e a net FX impact at 30 April of ($0.3m). Financial Derivatives Gains/(Losses) –In 2010/11, hedging contracts (FX Forwards) were entered into to protect the value of budgeted GF and Project 2011 contributions. –The E EOY loss on these contracts is ($13.6m) for GF related hedges and new ($2.8m) for Projects related hedges. Other Exchange Gains/(Losses) –The revaluation of Foreign Currency bank balances and any other assets or liabilities, and the realised gain or loss on any foreign currency transactions. –The result YTD was a gain of $2.6m. This result is expected to remain minimal as foreign currency bank balances are now kept to a minimum - non-USD receipts are converted to USD immediately after receipt. Treasury – Foreign Exchange Result – April 2011 8

9. 2011 Cash Flow Forecast - General Fund – April 2011 9

10. E EOY Income to Cash Flow Reconciliation – April 2011 10

11. Area Staff Provident Fund - April 2011 11 Area Staff Provident Fund – April 2011

12. 12 General Fund – April 2011 US$ m

13. 13 APPENDICES Financial Performance Report by Sub Programme Financial Performance Report by HDG (Objective) Balance Sheet as per UNSAS – As at 30 April 2011 YTD Dec and EOY General Fund – Cash Inflow Cash Flow Statements as on 30 April 2011 Supplier Aging as on 30 April 2011 Head Count as on 30 April 2011

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21. April 2011 GF – Donor Cash Inflows YTD and E EOY US$ m 21

22. 22 Head Count as at End of April 2011 – Area Staff Budget

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25. Supplier’s Accounts Payable & Advances – April 2011 25

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