1

UNRWA FINANCIAL REPORT

As at end-December 2010

2Dec 2010 – Index

• Slides 4 and 5: A brief explanation of the key factors causing variances to UNRWA’s General Fund (GF) Income Statement in 2010, - slide 4, year to date results as compared to annual budget and slide 5, November end of year forecast to year to date results.

• Slides 6 and 7: UNRWA’s December GF Income Statement, identifying for December and Year to Date (YTD), actual results, budget and variances in a resource format ( ie salaries, travel rent.. etc).

• Slide 8: GF donor income, per donor country, identifying for the year: annual budget, amount received variance to budget, foreign exchange impact on amounts received (for non US currencies – please note UNRWA functional currency is the USD), total amount received variance to budget (ie net of FX impact) and total 2010 income received per donor country. Please note foreign exchange (FX) variance is due to the difference between the actual monthly spot rate (as monthly advised by the UN) less the (fixed) budgeted rate, times the actual amount received. UNRWA cannot influence the FX variances as reported with donor income, the budgeted rate is set and fixed before the commencement of the financial year and the monthly spot rate is set by international capital markets – hence, inevitably there will always be FX variance as reported with income. UNRWA can, and did in late 2010, undertaken FX hedge agreements with banks to minimize future FX variance, however, the financial impact of the hedges is reported against the “ financial derivatives (gain)/losses” line in the Income Statement.

• Slide 9 Donor Income, same aggregate numbers as Slide 8, however presented in a manner which identifies: i) total income received by donor up to the budgeted amount ($398.2m) and ii) amount received per donor in excess of budget amount ($105.1m).

• Slide 10 Total GF expenditure for 2010 per Programme

• Slide 11 Total GF expenditure in terms of Human Development Goal (HDG)

• Slide 12 Brief explanations on sources and types of FX movements

• Slide 13 Identification of UNRWA bank balances at the end of the year per currency.

3Dec 2010 – Index

• Slide 14 Identification of opening and closing cash balance for 2010 along with a reconciliation of movement from reported Income Statement surplus (+$4.2m) to closing cash balance ($79.5m).

• Slide 15 Table identifying performance of UNRWA’s Provident Fund ( ie 401k or Superannuation etc) for 2010 and historical performance from 2000.

• Slide 16 Table identifying key reasons for financial variances for both the Total Programme and the downsized budget.

• Slide 17 List of Appendices

• Slides 18,19 and 20 reports UNRWA total operating expenditure, not in terms of an Income Statement but in terms of Programme and Sub Programme expenditure. Slides 6 & 7 total YTD operating expenditure is $546.7m, add capitalization/depreciation ( Cr of $1.6m), is the total operating expenditure in the Programme/Sub Programme report, $545.1m. Please note depreciation/capitalization is posted to cost centres & thus included in this report. In 2011 the Income Statement & Programme report financial results will be identical.

• Slides 21, 22 and 23 reports UNRWA total operating expenditure in terms of Human Development Goal and sub Goal, total operating expenditure same as per Programme report, $545.1m.

• Slide 24 UNRWA Balance Sheet, per fund group.

• Slide 25 - General Fund total cash inflow for 2010

• Slide 26 Headcount report for all local area staff ( ie excluding 205 international staff), per month, per Field and Headquarters.

• Slide 27 Aged accounts payable and advances report per Year and Field

4Dec 2010 General Fund Financial SummaryBudget-Actuals

• On 1 January 2010 UNRWA's General Fund (reduced downsized Budget, excluding the Unfunded Requirement of $57m) was forecasting a deficit of -$54.6m - due to planned expenditure being greater than budgeted voluntary donor contributions.

• UNRWA has typically started the financial year with a deficit of around 10% of budgeted expenditure – expected to be sourced through increased voluntary donor contributions throughout the year.

• Actual December YTD 2010 result was a surplus of + $4.2m, whilst there were many variances throughout the year, the key factors were:

– a) $60.7m increase in donor income over budget (please refer to slides 8 & 9 for disaggregation by donor)

– b) total operating expenditure $5.2m greater than budget, chiefly due to inaugural accrual of 2011 severance provision of $14.2m due to efforts to be fully IPSAS compliant by 2012, which was partially offset by savings across a range of inventory and other non labour costs

– c) adverse foreign exchange result of -$18.2m due to dramatic decrease in non-US FX rates and nil hedging of 2010 funds (note 97% of non US receipts for 2011 are hedged) and

– d) prior period accounting adjustments net gain of +$14.4m due to i) capitalization of inventory incorrectly expensed in 2009 ($5m) and ii) reclassification of 2009 income accrual from Restricted Funds to General Fund ($10m).

US$ m

2010 YTDBUDGET ACTUAL VAR

Donor Income 442.8 503.5 60.7 PSC 15.0 21.6 6.6 Interest - 3.3 3.3 U.N. Regular Budget 29.1 23.6 (5.5)

- TOTAL INCOME 486.9 552.0 65.1

International Staff (U.N.) 29.3 23.9 (5.4) Staff 411.1 428.9 17.8 Non Staff 101.1 93.9 (7.2) TOTAL OPEX 541.5 546.7 5.2

- FX (Gain)/Loss - 18.2 (18.2) Derivatives - (1.1) 1.1 Prior Period - (14.4) 14.4 Dep + Capitalisation (1.6) 1.6 TOTAL EXP 541.5 547.8 (6.3)

Surplus/(Deficit) (54.6) 4.2 58.8

5Dec 2010 General Fund Financial SummaryNov EOY to Dec Actuals

• The November Report forecast an end of year deficit of -$4.8m, however the December annual result was + $4.2m, key variances comprised:

– i) Donor income + $9.0m (comprising Australia $5.4m, Switzerland + $1.4m and other Non AdCom + $2.2m),

– ii) Staff, savings on actual headcount more than offset by increased accruals on retirement and severance benefits-$5.0m,

– iii) Non staff adverse by -$7.1m chiefly due to greater than forecasted accrual of material purchase orders (principally hospitalization) and service contracts,

– iv) FX/Derivatives net gain of + $1.2m due to favourable movement in monthly FX rates

– v) Net gain in prior period adjustments of + $8.7m, chiefly due to re coding of $10.0m in 2009 income accrual from Restricted Funds to General Fund

– vi) annual posting of depreciation and capitalization ( in

2011 to be recorded monthly).

US$ m

Nov.YTD 2010 YTDForecast ACTUAL VAR

Donor Income 494.5 503.5 9.0 PSC 21.0 21.6 0.6 Interest 3.0 3.3 0.3 U.N. Regular Budget 25.0 23.6 (1.4)

TOTAL INCOME 543.5 552.0 8.5 -

International Staff (U.N.) 25.0 23.9 (1.1) Staff 423.9 428.9 (5.0) Non Staff 86.8 93.9 (7.1) TOTAL OPEX 535.7 546.7 (13.2)

- FX (Gain)/Loss 19.8 18.2 1.6 Derivatives (1.5) (1.1) (0.4) Prior Period (5.7) (14.4) 8.7 Dep + Capitalisation (1.6) 1.6 TOTAL EXP 548.3 547.8 0.5

Surplus/(Deficit) (4.8) 4.2 9.0

6

Description Actuals Budget Variance Actuals Budget Variance

Income

Donors Contributions 50,240 3,276 46,964 503,474 442,815 60,659

United Nations RB 23,648 2,425 21,223 23,648 29,100 -5,452

Programme Support Cost Recovery 1,968 1,250 718 21,583 15,000 6,583

Interest and Other Income -21,306 -21,306 3,320 3,320

Total Income -(A) 54,550 6,951 47,599 552,025 486,915 65,110

Expenditure

International Staff -(B) 2,010 2,443 433 23,970 29,318 5,348

Area Staff - manning table costs

Basic Salaries 27,962 28,216 255 317,182 338,598 21,416

Hazard Pay and Special Payment

Provident Fund Agency Contributions 4,099 3,594 -505 41,550 43,131 1,581

SPOA,SOA and Others 859 390 -468 12,054 4,681 -7,373

Overtime and Excess hours supplement 126 48 -78 654 575 -78

CAF 2,868 1,425 -1,443 21,005 17,100 -3,905

Special Allow ances 1,562 -1,562 2,786 -2,786

Health Related Expenses 614 -614 1,163 -1,163

Miscellenous Allow ance 305 -305 307 -307

Retirement Benefits - Severance 17,780 19 -17,761 21,480 233 -21,247

Retirement Benefits - EVR 4,974 -4,974 5,012 -5,012

Total Area Staff -manning table costs -(C) 61,149 33,693 -27,456 423,193 404,318 -18,875

LDC and Temporary Staff -(D) 1,074 572 -502 5,741 6,860 1,118

Grand Total Area staff Costs -(E)=(C+D) 62,222 34,265 -27,958 428,934 411,178 -17,756

FINANCIAL PERFORMANCE REPORT - BY RESOURCES - AGENCY WIDEUNRWA TOTAL - GENERAL FUND - UNEARMARKED FUND - DECEMBER 2010

Month of December Year to date

2010 Income Statement, General Fund – Resources (Page1 of 2)

Amount in $ Thousands

7

Description Actuals Budget Variance Actuals Budget Variance

Non Staff Costs

Inventory Supplies 4,301 1,271 -3,031 19,436 15,247 -4,189

Non inventory Supplies 4,723 938 -3,785 12,086 11,256 -830

Utilities 715 350 -366 3,789 4,194 405

Maintenance of Premises 2,407 361 -2,046 5,823 4,336 -1,487

Equipment and Construction 8,817 354 -8,463 12,159 4,247 -7,911

Training 920 149 -770 1,899 1,792 -107

Travel 633 165 -467 2,219 1,984 -235

Admin Support Services 942 429 -512 4,674 5,154 480

Consultancy Services 1,166 103 -1,063 2,288 1,241 -1,046

Hospital Services 1,132 613 -519 12,195 7,361 -4,834

Miscellaneous Services 4,047 618 -3,429 8,852 7,419 -1,433

Cash Subsidies to hardship cases 361 1,059 698 8,638 12,711 4,073

Cash Subsidies to patients 520 235 -285 3,867 2,815 -1,052

Other Subsidies 29 28 -1 249 337 88

Reserves 2,108 2,108 25,301 25,301

Cost Recovery -298 -361 -63 -4,369 -4,332 36

Total Non Staff -(F) 30,415 8,422 -21,993 93,806 101,065 7,259

Total Operational Expenditure -(G)=(B+E+F) 94,647 45,130 -49,517 546,710 541,561 -5,149

Operational Surplus/Deficit -(I)=(A-G) -40,097 -38,179 -1,918 5,315 -54,646 59,961

Exchange (Gains)/Losses (J) -1,512 1,512 18,259 -18,259

Financial Derivatives (Gain)/Losses (K) 357 -357 -1,097 1,097

Prior year adjustments (L) -8,692 8,692 -14,402 14,402

Depreciation & Captitalization adjustments (M) -1,655 1,655 -1,655 1,655

Total Expenditure(N)=G+J+K+L+M 83,145 45,130 -38,015 547,815 541,561 -6,254

Net Surplus/(Deficit) l=A-N -28,595 -38,179 9,584 4,210 -54,646 58,856

FINANCIAL PERFORMANCE REPORT - BY RESOURCES - AGENCY WIDEUNRWA TOTAL - GENERAL FUND - UNEARMARKED FUND - DECEMBER 2010

Month of December Year to date

2010 Income Statement, General Fund - Resources Amount in $ Thousands

(Page2 of 2)

8Donor Income - 2010 General Fund

A B A+B

Australia 4.7 9.4 0.7 10.1 14.8

Bahrain 0.1 0.1 0.1 0.1

Belgium 1.5 1.5 (0.5) 1.0 2.4

Canada 9.3 (9.3) (9.3) 0.0

Denmark 15.9 (2.0) (1.2) (3.2) 12.7

Finland 5.1 0.7 (0.5) 0.2 5.3

France 8.3 (1.8) (0.5) (2.3) 6.1

Germany 12.3 (0.7) (1.4) (2.1) 10.2

Ireland 5.5 0.3 (0.9) (0.6) 4.9

Italy 5.8 0.7 (0.6) 0.2 6.0

Japan 2.9 9.0 9.0 11.9

Kuwait 1.5 0.0 1.5

Netherlands 22.5 (0.7) (0.1) (0.8) 21.6

Norway 25.5 0.5 0.5 26.0

Qatar 0.1 0.0 0.1

Saudi Arabia 1.8 1.8 1.8 3.6

Spain 12.2 (0.6) (0.9) (1.5) 10.7

Sweden 43.6 (2.4) (1.7) (4.1) 39.5

Switzerland 7.8 3.2 (0.7) 2.5 10.4

Turkey 0.5 0.0 0.5

UAE 1.0 0.8 0.8 1.8

UK 31.5 8.3 (4.5) 3.8 35.3

UK (Perf Incr) 5.0 (0.2) (0.2) 4.7

USA 105.0 29.6 29.6 134.6

EU 101.2 23.5 (2.2) 21.3 122.5

Spain, Andalucia 0.0 2.6 0.1 2.7 2.7

Other Non-Adcom 3.8 10.0 (0.4) 9.6 13.5

Other 8.4 (8.4) (8.4) 0.0

Total 442.8 75.5 (14.9) 60.6 503.4

2010 IncomeDonor

Donors under / over funding at

Budget Rate

Total 2010 UpdatesBudget Fx Impact

US$ m

9Donor Income Against Budget - 2010 General Fund

Budget USD

Fx ImpactVariance to Budget

Fx Impact

A

Australia 4.7 4.7 0.0 4.7 0.0 9.4 0.7 10.1 14.1 0.7 14.8 10.1

Bahrain 0.1 0.1 0.1 0.0 0.1 0.1 0.1 0.0 0.1 0.1

Belgium 1.5 1.5 -0.2 1.2 -0.2 1.5 -0.2 1.2 2.9 -0.5 2.4 1.0

Canada 9.3 0.0 -9.3 0.0 0.0 0.0 0.0 -9.3

Denmark 15.9 13.9 -1.2 12.7 -3.2 0.0 13.9 -1.2 12.7 -3.2

Finland 5.1 5.1 -0.4 4.6 -0.4 0.7 -0.1 0.6 5.8 -0.5 5.3 0.2

France 8.3 6.5 -0.5 6.1 -2.3 0.0 6.5 -0.5 6.1 -2.3

Germany 12.3 11.6 -1.4 10.2 -2.1 0.0 11.6 -1.4 10.2 -2.1

Ireland 5.5 5.5 -0.8 4.7 -0.8 0.3 0.0 0.2 5.8 -0.9 4.9 -0.6

Italy 5.8 5.8 -0.5 5.3 -0.5 0.7 -0.1 0.6 6.5 -0.6 6.0 0.2

Japan 2.9 2.9 2.9 0.0 9.0 9.0 11.9 0.0 11.9 9.0

Kuwait 1.5 1.5 1.5 0.0 0.0 1.5 0.0 1.5 0.0

Netherlands 22.5 21.8 -0.1 21.6 -0.8 0.0 21.8 -0.1 21.6 -0.8

Norway 25.5 25.5 0.5 26.0 0.5 0.0 25.5 0.5 26.0 0.5

Qatar 0.1 0.1 0.0 0.1 0.0 0.0 0.1 0.0 0.1 0.0

Saudi Arabia 1.8 1.8 1.8 0.0 1.8 1.8 3.6 0.0 3.6 1.8

Spain 12.2 11.6 -0.9 10.7 -1.5 0.0 11.6 -0.9 10.7 -1.5

Sweden 43.6 41.2 -1.7 39.5 -4.1 0.0 41.2 -1.7 39.5 -4.1

Switzerland 7.8 7.8 -0.6 7.2 -0.6 3.2 -0.1 3.1 11.1 -0.7 10.4 2.5

Turkey 0.5 0.5 0.0 0.5 0.0 0.0 0.5 0.0 0.5 0.0

UAE 1.0 1.0 1.0 0.0 0.8 0.8 1.8 0.0 1.8 0.8

UK 31.5 31.5 -4.1 27.4 -4.1 8.3 -0.4 7.9 39.8 -4.5 35.3 3.8

UK (Perf Incr) 5.0 5.0 -0.2 4.7 -0.2 0.0 5.0 -0.2 4.7 -0.2

USA 105.0 105.0 105.0 0.0 29.6 29.6 134.6 0.0 134.6 29.6

EU 101.2 95.7 -0.9 94.8 -6.4 29.0 -1.3 27.7 124.7 -2.2 122.5 21.3

Spain, Andalucia 0.0 0.0 0.0 2.6 0.1 2.7 2.6 0.1 2.7 2.7

Other Non-Adcom 3.8 3.8 3.8 0.0 10.0 -0.4 9.6 13.8 -0.4 13.5 9.6

Other 8.4 0.0 -8.4 0.0 0.0 0.0 0.0 -8.4

Total 442.8 411.3 -13.1 398.2 -44.6 106.9 -1.8 105.1 518.2 -14.9 503.4 60.6

Total Income

A+BVariance to Budget

Donor

Dec Income Against

Budget (at budget rate)

Sub-total to budget Amount

Additional Cont. above

budget (at Bgt rate)

Sub -total Amount in excess of Budget

B

FX ImpactAt Budget

Rate

Grand Total

US$ m

10Programme Total Actual Expenditure General Fund -2010

1) This amount includes $23.9m International Staff costs

2) This amount excludes $2.7m costs comprises of ($18.2m Foreign exchange loss,($(1.1) Derivative gains and $(14.4)m Prior year adjustments

Programme$K % $K % $K % $K % $K % $k % $k %

Education 136,876 70% 38,532 54% 75,289 68% 28,044 62% 49,188 54% 2,319 7% 330,248 61%

Health 30,411 16% 15,981 23% 20,924 19% 9,144 20% 21,382 24% 625 2% 98,467 18%

Infrastructure 3,699 2% 3,233 5% 424 0% 263 1% 781 1% 1,415 4% 9,815 2%

Relief and Social Services 5,897 3% 5,406 8% 5,309 5% 2,798 6% 2,618 3% 914 3% 22,942 4%

Support Services 17,443 9% 7,810 11% 8,894 8% 4,786 11% 16,753 18% 27,899 84% 83,585 15%

Total 194,326 100% 70,962 100% 110,840 100% 45,035 100% 90,722 100% 33,172 100% 545,057 100%

Syria West Bank TotalGaza Lebanon Jordan Head Quarters

61%18%

2%

4%

15%

Education

Health

Infrastructure

Relief and Social Services

Support Services

11Human Development Goal Total Actual Expenditure General Fund -2010

1) This amount includes $23.9m International Staff costs

2) This amount excludes $2.7m costs comprises of ($18.2m Foreign exchange loss,($(1.1) Derivative gains and $(14.4)m Prior year adjustments

HDG$K % $K % $K % $K % $K % $k % $k %

Long and Health life 30,178 16% 17,940 25% 20,655 19% 9,257 21% 21,264 23% 899 3% 100,193 18%

Acquired Knowledge and Skills 133,264 69% 35,218 50% 71,412 64% 26,522 59% 41,937 46% 2,273 7% 310,626 57%

A Decent standard of Living 13,054 7% 8,147 11% 9,259 8% 3,978 9% 9,258 10% 1,785 5% 45,481 8%

Human Rights enjoyed to the fullest 1,045 1% 385 1% 830 1% 409 1% 775 1% 902 3% 4,346 1%

Support Services 16,785 9% 9,273 13% 8,682 8% 4,869 11% 17,488 19% 27,313 82% 84,410 15%

Total 194,326 100% 70,963 100% 110,838 100% 45,035 100% 90,722 100% 33,172 100% 545,056 100%

Syria West Bank TotalGaza Lebanon Jordan Head Quarters

18%

58%

8%

1%

15%

Long and Health life

Acquired Knowledge andSkills

A Decent standard ofLiving

Human Rights enjoyed tothe fullest

Support Services

12

UNRWA Foreign Exchange gains and losses for 2010 were made up of the following:

• FX Loss on Donor Income– The difference between the Donor Income at Budget Rates, and the actual UN exchange rate that the

contribution is booked at when received. UNRWA cannot control the variance between these rates, unless the income is hedged.

– The result for 2010 was a loss of USD14.9m, mainly due to the depreciation of the Euro against the USD.

– In October, 97% of 2011 non-USD Donor Income was hedged. This is expected to offset the income volatility from movements away from the budgeted rate, but will be reported separately under the FX line.

• FX Loss on Realised and Unrealised Foreign Currency Bank Balances and Transactions– 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 for 2010 was a loss of USD18.3m, primarily due to the devaluation of foreign currency bank

account balances – particularly the Euro.

• Unrealised FX Gain or Loss on Financial Derivatives.– In 2010, hedging contracts (FX Forwards) were entered into to protect the value of contributions

received in late 2010 and 2011. Prior to maturity of these contracts, they must be revalued to market at the end of each month. If any income is received against any of these contracts, then the gain/loss must be reported in the income statement.

• Realised FX Gain or Loss on Financial Derivatives.– After maturity of each hedging contract, a gain or loss is realised.– The result for 2010 was a gain of USD1.1m for the contracts hedging our 2010 exposures (EUR and

GBP).

Treasury – Foreign Exchange

13UNRWA Bank Balances

Transaction Curr Exch rate US$m Transaction Curr Exch rate US$m

Field Currency and USDUSD 267.6 267.6 297.7 297.7JOD 5.7 0.708 8.1 5.4 0.708 7.7LBP 6,805.3 1,500 4.5 6,486.6 1,500 4.3SYP 267.8 46.010 5.8 252.4 46.580 5.4NIS 11.1 3.630 3.1 2.8 3.580 0.8 1.4%Total 289.1 315.9Non Field Currency 0.2 1.025 0.2 0.2 1.000 0.2 2.4%CHF 0.3 1.002 0.3 1.5 0.951 1.6 5.0%DKK 0.4 5.700 0.1 0.4 5.675 0.1 0.4%EGP 0.3 5.760 0.1 0.3 5.740 0.1 0.3%EUR 45.1 0.764 59.1 31.0 0.761 40.7 0.4%GBP 0.8 0.643 1.3 2.8 0.648 4.3 -0.8%JPY 28.0 84.340 0.3 28.0 82.000 0.3 2.8%NOK 125.6 6.200 20.3 130.8 5.956 22.0 3.9%SEK 1.0 7.000 0.1 13.0 6.852 1.9 2.1%Total Non USD -Non Field 81.7 71.1Grand Total 370.7 387.0

Currency 30 November 2010 31 December 2010 % Change in

Exch rate

General Fund

Restricted Funds Projects

Emergency Appeal Total

79.4 54.5 151.8 101.3 387.0

Closing Cash Balance By Fund Group - 31 Dec 2010

14 Cash Flow Forecast – December - General Fund -EOY

US$ MillionsOpening Balance

H1 H2 Total

General Fund

B/F Cash Balance 18.1 18.1 87.0 18.1

Donor Inflows 343.2 187.8 531.0

PSC 9.6 11.9 21.5

Other Income 1.4 15.9 17.3

Outflows (259.1) (232.2) (491.3)

FX Gain/(Loss) (26.2) 9.1 (17.1)

Net Cash flows 68.9 (7.5) 61.4

General Fund Cash Balance

87.0 79.5 79.5

Surplus as per Income Statement 4.2 AddNet Accruals, EVR and Severance 29.6 Net increase in Liabilities 3.6 Net increase in Leave encashment 4.0 Net increase in Advance Contribution 26.2 Net decrease in inventories 18.7

82.0 86.2

LessNet increase in Receivables 1.0 Capitalization adjustments 1.5 Net Decrease in Hard Commitments 3.6 Net increase in Contribution receivable 18.5 24.6

Net Cash balance movement 61.6 Opening 18.1

Net increase in imprest cash (0.2)

Closing cash balance 79.5

Income to Cash Flow Reconciliation

US$ m US$ m

Note- Of the $79.5m cash balance as at 31/12/2010, this includes advances from 2011 income comprising: a) $28m - USAb) $0.91m - New Zealand, Pakistan and Czech Republic

15Area Staff Provident Fund – December 2010

Asset Class Values PercentageDecember

Performance

Jan-Dec (Y.T.D) Fund Performance

Jan-Dec (Y.T.D) Benchmark Performance

Bond 612,654,274 57% 0.48 6.22 5.21Equity 343,876,156 32% 7.31 11.48 12.43Hedge Fund Of Funds (HFOFs) 50,793,697 5% 1.6 7.14 5.46Real Estate Securities (REITs) 63,063,747 6% 6.34 21.91 23.51

Total 1,070,387,874 100% 2.91 * 8.87 8.60

UNRWA PF December 2010 Update

*The indicative draft performance for December Y.T.D (Jan-Dec) is +8.65% (Net of fees)

Year Fund Return Index Return Excess Return 2000 6.42 1.90 4.52%2001 (0.53) (1.34) 0.81%2002 5.59 4.92 0.67%2003 14.85 14.79 0.06%2004 9.78 9.65 0.13%2005 2.48 2.50 -0.02%2006 10.25 9.87 0.38%2007 8.16 8.49 -0.33%2008 (15.03) (14.04) -0.99%2009 16.36 15.42 0.94%Cumulative Return(2000-2009) 5.18 5.16 0.02%

UNRWA Year wise PF Return

16General Fund US$ m

Total Programme Requirements 598.5 598.5

-29.3Less International Staff ($29.1m) funded by UN & ($0.2m) funded by PF

598.5 569.2Downsized Envelope ($512.4m) plus Unfunded portion ($57m)

-15.0 -15.0 Less PSC IncomeProgramme Requirements 583.5 554.2

12.2 Reinstated expenditure from 2009 savings plus other18.3 Add Exchange losses ( FX revaluations) (1.1) Financial Derivatives Gains (Losses)(1.4) Savings in 2010

582.2

Projected Income 442.8 442.875.5 Increased donor funding

(14.9) FX loss on receipt of funds (act + f/c) 503.419.4 Other Income + PYA6.6 PSC additional Income

Shortfall against Programme Requirements -140.7 -52.8

Total Downsized Budget (Envelopes) 512.2 512.212.2 Reinstated expenditure from 2009 savings plus other

524.40

18.26 Exchange losses ( Fx revaluations) (1.1) Financial Derivatives Gains (Losses)(1.4) Savings in 2010

540.2 Total Expenditure (a)

Projected Income 442.8 442.875.5 Increased donor funding

(14.9) FX loss on receipt of funds (act + f/c) 503.4 EOY Estimate Donor Income (b)

19.4 Other income + PYA (c)15 21.6 PSC Income (d)

457.8 544.4 Total Income (e) = (b) + (c) + (d)Minimum additional funding required 54.4 -4.2 (a) - (e)

17

APPENDICES• Financial Performance Report by Sub Programme

• Financial Performance Report by HDG (Objective)

• Balance Sheet as per UNSAS – As at 31 Dec 2010

• YTD Dec and EOY General Fund – Cash Inflow

• Supplier Aging as on 31 Dec 2010

• Head Count as on 31 Dec 2010

18

19

20

21

22

23

24

25YTD Dec and EOY General Fund – Cash Inflow US$ m 2009 CF 2011 2010

Act Var Recd (CF)/BF EO Y

A B C D A+B+ C+D

Australia 4.7 14.8 10.1 10.1 14.8

Bahrain 0.1 0.1 0.1 0.1 0.1

Belgium 1.5 2.4 1.0 1.0 2.4

Canada 9.3 0.0 (9.3) (9.3) 0.0

Denmark 15.9 12.7 (3.2) (3.2) 12.7

Finland 5.1 5.3 0.2 0.2 1.4 6.7

France 8.3 6.1 (2.3) (2.3) 6.1

Germany 12.3 10.2 (2.1) (2.1) 10.2

Ireland 5.5 4.9 (0.6) (0.6) 4.9

Italy 5.8 6.0 0.2 0.2 6.0

Japan 2.9 1.9 (1.0) 9.0 (10.0) 1.9

Kuwait 1.5 1.5 0.0 0.0 1.5

Netherlands 22.5 21.6 (0.8) (0.8) 21.6

Norway 25.5 26.0 0.5 0.5 26.0

Qatar 0.1 0.0 (0.1) 0.0 (0.1) 0.0

Saudi Arabia 1.8 3.6 1.8 1.8 3.6

Spain 12.2 10.7 (1.5) (1.5) 10.7

Sweden 43.6 39.5 (4.1) (4.1) 39.5

Switzerland 7.8 10.4 2.5 2.5 0.5 10.9

Turkey 0.5 0.5 0.0 0.0 0.5

UAE 1.0 1.8 0.8 0.8 2.5 4.3

UK 31.5 35.3 3.8 3.8 8.0 43.3

UK (Perf Incr) 5.0 4.7 (0.2) (0.2) 4.7

USA 105.0 134.6 29.6 29.6 28.0 162.6

EU 101.2 116.9 15.7 21.3 4.6 (5.7) 121.5

Spain, Andalucia 0.0 2.7 2.7 2.7 2.7

Other Non-Adcom 3.8 10.8 7.0 9.6 0.1 (1.8) 11.8

Other 8.4 0.0 (8.4) (8.4) 0.0

Total 442.8 485.1 42.3 60.7 17.1 10.5 531.0

Donor BudgetTotal 2010

Updates

US$ m

26Head Count as at 31 Dec 2010 – Area Staff

Budget Field Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Avg10,664 FOG 10,281 10,285 10,297 10,341 10,337 10,351 10,321 10,313 10,300 10,598 10,558 10,550 10,378 4,474 FOW 4,181 4,186 4,186 4,186 4,192 4,200 4,189 4,190 4,189 4,194 4,195 4,208 4,191 7,020 FOJ 6,689 6,690 6,731 6,734 6,734 6,727 6,661 6,651 6,647 6,699 6,744 6,740 6,704 3,152 FOL 2,897 2,893 2,892 2,891 2,885 2,881 2,856 2,849 2,843 2,922 2,923 2,927 2,888 3,571 FOS 3,490 3,487 3,486 3,486 3,490 3,488 3,467 3,463 3,462 3,460 3,453 3,454 3,474

298 HQA 263 264 267 267 266 265 268 265 261 261 265 268 265 142 HQG 125 128 127 127 126 125 125 125 125 126 126 124 126

29,321 Total 27,926 27,933 27,986 28,032 28,030 28,037 27,887 27,856 27,827 28,260 28,264 28,271 28,026

-

4,000

8,000

12,000

16,000

20,000

24,000

28,000

32,000

36,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

HQG

HQA

FOS

FOL

FOJ

FOW

FOG

Budget

27

Supplier’s Accounts Payable & Advances – Dec 2010Amount in US$

Main Account Year HQA FOG FOL FOS FOJ FOW HQG Grand TotalStaff Advances 2008 0 2,500 2,500

2009 7,700 109 7,809 2010 1,706 1,000 2,249 144,043 145,918 6,246 33,739 334,901

1210 Total 1,706 8,700 2,249 144,043 146,027 8,746 33,739 345,211 Supplier Advances 2002 13,298 13,298

2003 500 21,186 21,686 2004 7,062 7,062 2006 39,549 17,879 57,428 2007 283,712 141,243 137,800 562,755 2008 161,663 0 0 26,954 188,617 2009 190,833 1,076,818 254,237 74,868 9,862 1,606,618 2010 50,747 470,653 298,240 326,023 156,930 2,857,194 692,558 4,852,346

1520 Total 50,747 1,146,910 1,375,059 326,023 580,659 3,127,993 702,420 7,309,810 Supplier Payables 2002 6,527 (15) 21,754 28,266

2003 0 (4,787) (58) (1,412) 7,155 (393,887) (392,990) 2004 1,570 (225) (120) (0) 20,599 (113,636) (91,811) 2005 433 (58) (321) 5,722 5,775 2006 (27,087) (508) (18) (2,825) (70,929) (101,367) 2007 (216,991) (24,109) (439) (353) (3,535) (245,427) 2008 (5,354) (4,281) (425) (0) 33 (21,073) (31,100) 2009 (931,739) (3,266) (478) (5,986) (11,632) (3,157) (956,258) 2010 (741,995) (870,169) (1,383,092) (13,937) (86,783) (1,013,110) (2,481,275) (6,590,362)

2110 Total (741,995) (2,047,599) (1,415,613) (15,738) (97,360) (1,043,942) (3,013,027) (8,375,274)

28