overview of unicef financial oversight and management · 2 regular resources (rr) resources that...

Overview of

UNICEF Financial

Oversight and

Management

EB Orientation

January 11, 2018

2

Regular

Resources (RR)

Resources that are

unrestricted, and include

pledges of

voluntary contributions from

governments and private

donors, other governmental

or intergovernmental

contributions, donations from

non-governmental sources,

bank interest and other

investment revenue and

miscellaneous revenue.

Other Regular

Resources (OR-R)Contributions received which

have been earmarked by

donors for specific purposes

and are hence considered

restricted. The earmarking

may be by country,

geographic area, theme,

project, sector etc.

Other Resources (OR-R)

Thematic –OR contribution that can be spent

flexibly within the funded Outcome

or Focus Area.

Other Resources (OR-R)

Non-Thematic –OR contribution that is restricted to

a particular activity.

Other Resources

Emergencies (OR-E)These are contributions

received in response to

emergencies.

Other Resources (OR-E)

Thematic –OR contribution that can be spent

flexibly within the funded Outcome

or Focus Area.

Other Resources (OR-E)

Non-Thematic –OR contribution that is restricted to

a particular activity.

Types of Financial Resources

UNICEF is voluntarily funded with the following funding types:

Oversight by the Executive Board

The Executive Board is the governing body of UNICEF.

• The Board has 36 members, elected for three-year terms with

a regional allocation of seats. They are elected among the

member state representatives by the United Nations Economic

and Social Council (ECOSOC).

• It is responsible for providing inter-governmental support to and

supervision of the activities of UNICEF.

• The Board meets three times each year, in a first regular

session in January/February, an annual session in June and a

second regular session in September.

3

Executive Board Sessions

4

First Session Annual Session

Second Session

Strategic Plan with Integrated Budget

✓ Every 4 years

Mid Term Review ✓ 3rd year of the SP

Updated Financial Estimates

✓ Annual

Country Programme Documents

✓ ✓ ✓

Audited Financial Statements

✓ 14 months following year end

PFP Budget ✓

PFP Financial Report ✓

5

Other Oversight

UNICEF internal and external oversight is conducted by various bodies including:

• ACABQ

• Fifth Committee

• Internal Management Reviews

• Annual External Audit by UNBOA

• Internal Audit and Investigations

• Audit Advisory Committee

• JIU reviews

• Donor Reviews and Assessments

Management

UNICEF is led by an Executive Director:

• Appointed by the Secretary-General in consultation with the

Executive Board.

• The Executive Director is fully responsible and accountable to

the Executive Board for all phases and aspects of UNICEF

activities.

Overall management and administration of the organisation takes

place at headquarters:

• New York, where global policy is defined

• HQ office in Copenhagen - Supply Division

• HQ office in Geneva – Private Fundraising & Partnerships

6

Financial Regulatory Framework

• UNICEF Financial Regulations and Rules

• UNICEF Policies and Procedures

• International Public Sector Accounting Standards (IPSAS)

• Internal Control policy based on COSO Internal Control -

Integrated Framework

7

8

INTERNAL CONTROL FRAMEWORK

Value

for

Money

ERMRegulatory

FrameworkTLM

Anti-

fraud

Strategy

RBB

FOCUS AREAS

Internal Controls

9

UNICEF Culture

• Strong Ethics Office

• Policies and standards– UN Staff Rules, Standards of Conduct for International Civil Servants

and Code of Ethics

– UNICEF Anti -Fraud Policy

– UNICEF Financial Regulations and Rules

– UNICEF HR Manual

– UNICEF Supply Manual

– UN Policy on Gifts, UN Supplier Code of Conduct & related UNICEF

instruction on Acceptance of Awards, Decorations, Gifts, Honours,

Medals, etc.

• Management Reviews and Discussions– Global Management Team (GMT)

– Performance Reviews

– Management committees

• Internal broad access to all policies, dashboards,

audit reports, annual disciplinary report

10

Accountability

• Executive Director is fully responsible and accountable to the

Executive Board

• All officials are accountable to the Executive Director for their

actions. They may be held personally responsible and

financially liable for the consequences of contrary actions.

• Officials may be required to reimburse UNICEF for financial

losses as a result of their negligence or violation of framework.

UNICEF

2018 - 2021 Budget

11

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EF

/NY

HQ

201

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12

Integrated Budget

• Budget categories

– Programme

– Institutional

– PFP

• Country

• Global and regional

• Development effectiveness

• Management

• Capital investment

• Programme Regular Resources (RR) allocations:- RR allocated according to formula based on three core criteria:

✓ Gross National Income (GNI) per capita

✓ Under-five mortality rate

✓ Child Population

- Minimum allocation: $850k

2018-2021 Revenue by Source

13UNICEF for every child

Public $14,58364%

Private $8,23136%

As a result of sustained investment, the Private Sector will contribute

57% of the Organizations RR revenue for 2018-2021

Public Sector (two-thirds) and Private Sector(one-third)

(in millions of US dollars)

14

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

earthquak

eGlobal

Food

Price

crisis

Indian Ocean

tsunami

15 Financial Update – UNICEF | for every child

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 2014-2017,

Investment in Country Programmes

grows by 18%.

When compared with 2014-2017, 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 Component

16

$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

2018-2021 Strategic Plan

Integrated Resources and Results

Framework

17 Financial Update – UNICEF | for every child

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

* from all funding sources

IN US$ Millions

Programmes, 2021

Growth since 2012: 61%

Institutional Budget, 2021

Growth since 2012: 38%

Programme / IB Expenditure Trend *