UNICEF Integrated Budget 2018 - 2021 Informal Briefing to the Executive Board22 August 2017

Funding Streams

2

REVENUE

REGULAR

RESOURCES(Un-earmarked)

OTHER

RESOURCES(Earmarked)

OTHER

RESOURCES(Emergency)

OTHER

RESOURCES(Regular)

3

Resource

Mobilization

There has been growth

in revenue over 2014-

2017 with revenue to

date 21% above the

MTR planned figure.

A detailed analysis of

public and private

sector resource

mobilization activities

has identified areas for

additional growth.

4

Rationale for Increased Resources

The increased focus on resource mobilization is a reflection of:

1. Ambition of the 2030 agenda

2. Growing demand from host governments to collaborate on

interventions at scale that can deliver the transformative change

envisioned in the SDGs

3. Need to respond to continued frequency and complexity of

humanitarian crises

4. Requirement to meet demands for effective programming

responses in support of national priorities, ensuring no child is

left behind

(in millions of US dollars)

5

732 791 812 1,056 1,106 1,085 1,066 965 1,078

1,288 1,265 1,326 1,174 1,312 1,312 1,405 1,517 1,638 1,742 958 1,187

1,950 1,725

1,907

2,305 2,190

2,717 2,633 2,657

3,588 3,843 3,836

3,571 3,721 3,830 4,049

4,230 4,404

1,690 1,977

2,762 2,781 3,013

3,390 3,256

3,682 3,711 3,945

4,853 5,169

5,010 4,884 5,033 5,235

5,566 5,868

6,145

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Regular resources Other resources Total Contributions

Revenue Trend 2003-2021

Humanitarian programmes in Syria, Africa, Iraq, Nepal, YemenHaiti

earthquakeGlobal Food Price crisis

Indian Ocean tsunami

Projected 2018-2021 Revenue by Stream

6

2,350 2,549 2,708 2,832

1,480 1,500 1,522 1,572

1,4051,517

1,6381,742

0

1000

2000

3000

4000

5000

6000

7000

2018 Plan 2019 Plan 2020 Plan 2021 Plan

US

$ M

illi

on

ORR ORE RR

5,566 5,8686,145

5,235

RR total: $ 6,302 M

OR total: $ 16,512 M

Overall total: $ 22,814 M

Compared with the

2014-2017 MTR, total

2018-2021 income

grows by 21%.

While all revenue

streams reflect growth,

Regular Resources

increase at the fastest

pace (+24%) between

2018 and 2021 driven

by increases from the

private sector.

Revenue Comparison 2014-17 to 2018-21

7

10,64813,686

16,512

5,633

5,100

6,302

0

5000

10000

15000

20000

25000

2014-17 Plan 2014-17 MTR 2018-2021

US$

Mill

ion

OR RR

18,786

16,281

22,814

2018-2021 Revenue by Source

8 UNICEF for every child

UNICEF is voluntarily funded with

two main sources of revenue:

Public66%

Private

34%

18%

39%

43%

Government

RR ORR ORE

44%

51%

5%

Private Sector

RR ORR ORE

As a result of sustained investment, the

Private Sector will contribute 57% of the

Organizations RR revenue for 2018-2021

Government (two-thirds) and

Private Sector(one-third)

9

Growth in revenue will be

driven by:

an increase in the

recruitment and retention

of monthly pledge donors

enhanced focus on

Legacy, Corporate and

Foundation fundraising

opportunities

Streamlining and

strengthening government

advocacy

This will be underpinned by

UNICEF’s ability to

demonstrate results and

value for money

Resource

Mobilization

Projected Revenue by Funding Source

10

2,891 3,022 3,102 3,206

574 592 593 603

1,7701,952

2,1732,336

0

1000

2000

3000

4000

5000

6000

7000

2018 Plan 2019 Plan 2020 Plan 2021 Plan

Governments Interorg. Private Sector

5,5665,868 6,145

5,235

Governments total: $ 12,221 M

Inter-org total: $ 2,362 M

Private Sector total: $ 8,231 M

Overall $ 22,814 M

Targeted investment in

resource mobilization

activities will result in a

revenue growth from all

sources.

Risk mitigation

measures include:

1) monitoring and

reporting to the

Board via Annual

financial updates for

Country Programme

approval

2) the annual

submission and

approval of the

Private Fundraising

Financial plan.

Integrated Resource Plan 2018-2021

11

Prog

Cost

Recovery Prog

Cost

Recovery

1. Resources available $m % $m $m $m % $m % $m $m $m %

Opening balance 575.3 1,853.1 - 2,428.4 562.3 1,235.9 - 1,798.2

Income

Contributions 4,697.7 13,685.7 - 18,383.4 5,801.9 16,512.5 - 22,314.4

Other income and reimbursements 402.5 - - 402.5 500.0 - - 500.0

Total Income 5,100.2 13,685.7 - 18,785.9 6,301.9 16,512.5 - 22,814.4

Tax reimbursement adjustment (76.6) - - (76.6) (80.0) - - (80.0)

Trust fund receipts - - - - - -

Total available 5,598.9 15,538.8 - 21,137.7 6,784.1 17,748.4 - 24,532.6

2. Use of resources

A. Programmes 3,651.8 69.1% 13,429.1 - 17,080.9 86.0% 4,360.0 67.9% 15,917.3 - 20,277.3 84.6%

Country Programmes 3,471.8 65.7% 12,900.6 - 16,372.4 82.5% 4,140.0 64.5% 15,107.1 - 19,247.1 80.3%

Global Programme 180.0 3.4% 528.4 - 708.5 3.6% 220.0 3.4% 810.2 - 1,030.2 4.3%

B. Special Purpose 593.1 11.2% 86.0 679.1 3.4% 965.1 15.0% 273.0 1,238.2 5.2%

B.1 PFP, direct / investment costs 410.6 7.8% 86.0 - 496.6 2.5% 725.1 11.3% 273.0 - 998.2 4.2%

B.2 Other 182.5 3.5% - - 182.5 0.9% 240.0 3.7% - - 240.0 1.0%

C. Institutional Budget 1,039.3 19.7% 116.4 938.8 2,094.5 10.5% 1,095.2 17.1% 165.3 1,195.0 2,455.5 10.2%

Integrated Budget (A + B + C) 5,284.1 100.0% 13,631.5 938.8 19,854.4 100.0% 6,420.3 100.0% 16,355.6 1,195.0 23,971.0 100.0%

Closing balance of resources 314.7 968.5 1,283.3 363.8 197.8 561.6

Approved 2014-2017 (E/ICEF/2016/AB/L.2/Rev.1) 2018-2021

Regular resources Other Resources Total resources Regular resources Other Resources Total resources

2014-2017 Mid-Term Review (MTR) 2018-2021 Proposed Plan

Integrated Resources and Results Framework(Harmonized Funds and Programmes Classification)

12

Table 2: Integrated results and resources framework, 2018 -2021

Programme

Cost

Recovery

$m $m $m $m

4360.0 15917.3 20277.3

1744.0 6366.9 8110.9

872.0 3183.5 4055.5

523.2 1910.1 2433.3

845.8 3088.0 3933.8

375.0 1368.9 1743.8

1 589.0 133.0 721.9

Technical Excellence In Policy And

Programmes 500.2 124.2 624.3

Technical Excellence In Procurement

And Management Of Supplies 53.5 8.8 62.3

Technical Excellence In Humanitarian

Action 35.3 35.3

2

459.9 6.4 1138.0 1604.3

Leadership And Corporate Direction 10.7 1.9 26.5 39.1

Corporate Oversight And Assurance 13.8 34.1 47.8

Corporate Financial, Information,

Communication & Technology And 70.4 .6 174.1 245.1

Staff And Premises Security 8.1 20.0 28.1

Corporate External Relations And

Partnerships, Communication And

Resource Mobilization 71.8 177.6 249.4

Corporate Human Resources

Management 27.1 3.8 67.1 98.0

Field/Country Office Oversight,

Management And Operations Support 258.1 638.6 896.7

3 23.3 25.9 49.3

United Nations coherence and cluster

coordination 23.3 25.9 49.3

988.1 273.0 57.0 1318.2

Special Purpose, Capital Investment 23.0 57.0 80.0

Private Sector Fundraising 725.1 273.0 998.2

Other, inlciudng procurement services 240.0 240.0

6420.3 16355.6 1195.0 23970.9

Special purpose

Total Resources

Improved management of financial and human resources in

pursuit of results

Coordination of the United Nations Development System

Organizational effectiveness and efficiency

Higher quality programmes through results-based management

Goals Functional Cluster

Programmes

Goal Area 1 - Every child survives and thrives

Goal Area 2 - Every child learns

Goal Area 3 - Every child is protected from violence and exploitation

Goal Area 4 - Every child survives in a safe and clean environment

2018-2021

Regular

Resources

Other Resources Total

Resources

Goal Area 5 - Every child has an equitable chance in life

IRRF - indicative total resources by Goal Area

13

$8,110.940.0%

$4,055.520.0%

2,433.312.0%

3,933.819.4%

$1,743.88.6%

GOAL AREA 1:

EVERY CHILD

SURVIVES AND

THRIVES

GOAL AREA 2:

EVERY CHILD LEARNS

GOAL AREA 3:

EVERY CHILD IS

PROTECTED FROM

VIOLENCE AND

EXPLOITATION

GOAL AREA 4:

EVERY CHILD LIVES

IN A SAFE AND CLEAN

ENVIRONMENT

GOAL AREA 5: EVERY CHILD HAS

AN EQUITABLE CHANCE IN LIFE

RR: $846

OR: $3,088

RR: $523

OR: $1,910RR: $872

OR: $3,183

RR: $374

OR: $1,369

RR: $1,744

OR: $6,367

US$ MILLIONS

The Use of RR (2014-2016 actuals)

14

RR expenditures by Budget

Category

75% of RR spent on Programmes

71% on country programmes

4% on the Global & Regional

Programmes

RR expenditures by Location

82% of RR spent by field

offices (COs and ROs)

18% by HQ offices (NY,

Copenhagen, Brussels,

Florence, Geneva, Tokyo,

Budapest) 17% of total RR spent on

Institutional Budget

9% on development effectiveness

7% on management

1 % on UNDC and Special

purpose

8% invested in private sector fund raising

Indicative Integrated Budget by Component

15

16,372

708 679

2,095

19,247

1,030 1,2382,455

COUNTRY PROGRAMMES

GRP SPECIAL PURPOSE INST. BUDGET

US$

Mill

ion

2014-2017 MTR 2018-2021

Compared with the 2014-

2017 MTR, Investment

in Country Programmes

grows by 18%.

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 plan.

Special purpose

increase reflects

investment in resource

mobilization.

Integrated Budget by Key Cost Category

1687.6%

0.2%

6.7%

5.5%

Development Activities (Programme and DevelopmentEffectiveness)

UN Development Coordination

Management Activities

Special Purpose

2018-2021

Organizational Effectiveness & Efficiency

17

18

85.4%

2.9%

11.7%

Country

Regional

Headquaters

Integrated Budget by Location

2018-2021

PROGRAMME / IB EXPENDITURE TREND*(in millions of US dollars)

19

3,292

3,649

4,3254,546 4,655

4,482

4,8304,989

5,1445,315

462 451 441 469 484 551 590 611 617 636

0

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Programme Expenditure

Institutional Expenditure

Programmes, 2021Growth since 2012: 59%

Institutional Budget, 2021Growth since 2012: 34%

* from all funding sources

20

UNICEF continues to apply the Board-approved cost

recovery rates and methodology.

The effective rate of recovery is projected to increase to

7.3% for the period 2018-2021, compared with the actual

effective rate of 6.5 % for the period 2014-2016.

As per Board Decision 2017/7, UNICEF will continue to

work with UNDP, UNFPA and UN Women and continue the

consultations with Member States with regard to possible

changes to the cost-recovery policy.

Cost recovery

21

Recognizes inherent uncertainty of resource projections and

requests an update at Mid-term review (MTR).

Encourages UNICEF to regularly review the status in emergency

locations to determine the need for senior level posts and provide

regular updates.

Notes progress on the reduced use of non-staff personnel and

requests an update at the MTR.

Welcomes travel monitoring measures and eventual reduction in

travel expenditure.

Looks forward to further updates on Cost Recovery

methodology.

ACABQ Feedback

Sept. 2017

Exec. Board

Approval

August 2017

Exec. Board

Informal

July 2017

ACABQ

Session

June 2017

Submission to

ACABQ

Timeline

1. 2. 3. 4.

22

Thank you

Questions & Answers

23