Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
78175
FY14 World Bank Budget
August 9, 2013
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
CORPORATE FINANCE AND RISK MANAGEMENT
This document contains forward-looking statements that are based on management's expectations, estimates,
projections, and assumptions. Words such as "proposes," "plans," "estimates," "anticipates," "intends," and
variations of these words and similar expressions are intended to identify forward-looking statements. Such
statements are not guarantees of future performance. As with any projection or forecast, they are inherently
susceptible to uncertainty and changes in circumstances, and the Bank is under no obligation to update or alter its
forward looking statements, whether as a result of such changes, new information, subsequent events or otherwise.
FY14 BUDGET DOCUMENT
CONTENTS
1. OVERVIEW ........................................................................................................................................... 1
1.1 CONTEXT AND SUMMARY ........................................................................................................... 1
1.2 FY14 BUDGET RECOMMENDATIONS ......................................................................................... 3
2. ADDRESSING THE MAIN ISSUES FROM THE MTBF BOARD DISCUSSION ........................ 4
2.1 MAIN DIRECTIONS SET OUT IN THE MTBF .............................................................................. 4
2.2 CONCLUSION OF THE INTERNAL BUDGET CONVERSATION .............................................. 5
2.3 ADDRESSING CONCERNS RAISED BY EXECUTIVE DIRECTORS......................................... 6
2.4 ONGOING BUSINESS PLANNING ISSUES AND PRIORITIES ................................................ 13
3. FY14 WORK PROGRAM ................................................................................................................... 15
3.1 CONTEXT ........................................................................................................................................ 15
3.2 REGIONS ......................................................................................................................................... 17
3.3 NETWORK ANCHORS .................................................................................................................. 24
3.4 OTHER OPERATIONAL UNITS.................................................................................................... 29
3.5 FINANCE, ADMINISTRATIVE AND CORPORATE UNITS ...................................................... 30
4. FY14 BUDGET FRAMEWORK ......................................................................................................... 37
4.1 ADMINISTRATIVE BUDGET PROPOSAL AND EXPECTED EXTERNAL FUNDING .......... 37
4.2 BUDGET ALLOCATIONS AND USE OF CORPORATE BUDGET FLEXIBILITY .................. 38
4.3 BUDGET ALLOCATIONS BY UNIT TYPE.................................................................................. 40
4.4 BUDGET NON-UNIT SPECIFIC ACCOUNTS AND BELOW-THE-LINE ITEMS .................... 41
4.5 EXTERNAL SOURCES OF FUNDS............................................................................................... 46
4.6 PRICE FACTOR ............................................................................................................................... 46
4.7 CAPITAL BUDGET SUMMARY ................................................................................................... 47
ANNEXES
ANNEX A: BUSINESS MODERNIZATION ........................................................................................... 50
ANNEX B: ANALYSIS OF FY13 PRIORITY FUNDING TO REGIONS .............................................. 55
ANNEX C: COUNTRY SUPPORT TO FCS COUNTRIES ..................................................................... 57
ANNEX D: UPDATE ON THE KNOWLEDGE AGENDA ..................................................................... 59
ANNEX E: PROGRAM COST SUMMARY (ALL FUNDS) ................................................................... 61
i
FY14 BUDGET DOCUMENT
ANNEX F: FY14-16 ALLOCATIONS FOR PRIORITY INITIATIVES ................................................. 67
ANNEX G: CAPITAL BUDGET............................................................................................................... 68
BOXES
Box 1.1: The Budget, Strategic Planning and Performance Review Group ................................................. 2
Box 3.1: Disaster Risk Management (DRM) ............................................................................................. 23
Box 3.2: Green House Gas Accounting (GHG) and Environmental Sustainability Indicators .................. 25
Box 3.3: Wealth Accounting and Valuation Ecosystem Services (WAVES)............................................. 28
Box 3.4: One World Bank Group - Integration of Corporate Support Functions ...................................... 30
Box 4.1: Presentation of Bank Resources in the Budget Document ........................................................... 38
Box 4.2: Institutional Space Realignment Project (ISRP) .......................................................................... 49
Box B.1: AFR’s SWAT Team to improve the performance of the portfolio - $0.4 million ....................... 55
Box G.1: Update on Capitalization of Staff Cost – Experience from One Year......................................... 69
Box G.2: Harmonizing IBRD and IFC Capital Policies ............................................................................. 69
TABLES
Table 2.1: Funded Priority Areas .................................................................................................................. 6
Table 2.2: Total FY14 Budgets for Integrated Services ............................................................................... 9
Table 2.3: Cost of Modernization – Net Administrative Costs (FY11-13)................................................. 12
Table 2.4: Cost of Modernization – Capital Investments (FY11-13) ......................................................... 13
Table 3.1: Core Knowledge Expenditures (All Funds) ............................................................................... 16
Table 3.2: Regional Budgets ....................................................................................................................... 18
Table 3.3: Network Anchors Indicative Budgets FY13 and FY14 (all sources) ($FY13 million) ............ 24
Table 3.4: Costs by Network Anchor Accountability ($ million) ............................................................. 27
Table 4.1: FY13/14 Budget and Total Funds Summary ............................................................................ 37
Table 4.2: FY14 Sources and Uses ............................................................................................................ 39
Table 4.3: Change in the Bank Budget Plan by Unit Type ........................................................................ 40
Table 4.4: Change External Funds by Unit Type....................................................................................... 41
Table 4.5: Change All Funds by Unit Type ............................................................................................... 41
Table 4.6: Centrally Managed Accounts.................................................................................................... 42
ii
FY14 BUDGET DOCUMENT
Table 4.7: Board Related Budgets ............................................................................................................. 43
Table 4.8: Grant-Making Facilities FY14 Budget and Indicative FY15-16 Envelope .............................. 45
Table 4.9: External Funds .......................................................................................................................... 46
Table 4.10: Capital Program Summary – Investment Schedule FY13-FY16 ............................................. 48
Table E.1: Total Bank Budget Work Program Funding FY12‐16 .............................................................. 61
Table E.2: Program Cost Summary – All Funds – FY12-16 ...................................................................... 63
Table G.1: Capital Program Summary – Investment Schedule FY14-16 ................................................... 68
Table G.2: Thematic Organization and Programs – Investment Schedule FY14-16 .................................. 69
Table G.3: Capital Program - Investment Schedule FY13-16 .................................................................... 69
Table G.4: Capital Investment Schedule – Washington Facilities FY13-15 .............................................. 69
Table G.5: Capital Investment Schedule – Country Facilities FY13-15..................................................... 69
Table G.6: Technology and Systems – Incremental Impact FY14-16 ........................................................ 69
Table G.7: Technology and Systems – IT Depreciation in Central Accounts FY14-16 ............................. 69
FIGURES
Figure 3.1: Spending Trends in Client, Country, and Core Services13 ....................................................... 18
Figure B.1: By Country Type ..................................................................................................................... 56
Figure B.2: By Project Rating ..................................................................................................................... 56
iii
FY14 BUDGET DOCUMENT
ACRONYMNS
ADM
BB
BETF
CGIAR
CPS
DGF
EFO
ESW
FAC
FCS
GEF
GHG
GPSA
HQ
IBRD
IDA
IDF
IFC
IMF
ISRP
IT
KLC
MIGA
MOU
MTBF
PforR
QBRR
RAMP
RAS
RETF
RTA
SMU
SPF
VPU
WBG
Accountability and Decision-Making Framework
Bank Budget
Bank-Executed Trust Fund
Consultative Group on International Agricultural Research
Country Program Strategy
Development Grant Facility
Externally Financed Outputs
Economic and Sector Work
Finance, Administrative and Corporate Units
Fragile and Conflict-affected Situations
Global Environmental Facility
Green House Gas
Global Partnership for Social Accountability
Headquarters
International Bank for Reconstruction and Development
International Development Association
Institutional Development Fund
International Finance Corporation
International Monetary Fund
Institutional Space Realignment Project
Information Technology
Knowledge and Learning Council
Multilateral Investment Guarantee Agency
Memorandum of Understanding
Medium-Term Business and Finance
Program-for-Results
Quarterly Business and Risk Review
Reserve Advisory and Management Program
Reimbursable Advisory Service
Recipient-Executed Trust Funds
Reimbursable Technical Assistance
Sector Management Unit
State and Peace Building Fund
Vice Presidential Unit
World Bank Group
AFR
CFR
CTR
DEC
EAP
ECA
ECR
Organizational Units
Africa Region
Corporate Finance and Risk Management Unit
Controller’s
Development Economics Unit
East Asia and Pacific Region
Europe and Central Asia Region
World Bank Group External and Corporate Relations
iv
FY14 BUDGET DOCUMENT
EXT
FPD
GSD
HDN
HRS
IAD
IEG
IMT
ITS
LCR
LEG
MNA
OPCS
PRM
SAR
SDN
TRE
WBGIS
WBI
External Affairs
Financial and Private Sector Development Unit
General Services Department
Human Development Network
Human Resources Unit
Internal Auditors
Independent Evaluation Group
Information Management and Technology Unit
World Bank Group Information Technology
Latin America and Caribbean Region
Legal Unit
Middle East and North Africa Region
Operations Policy and Country Services Unit
Poverty Reduction and Economic Management Network
South Asia Region
Sustainable Development Network
Treasury Unit
World Bank Group Integrated Services
World Bank Institute
v
FY14 BUDGET DOCUMENT
1. OVERVIEW
This document, which supports the final engagement with Executive Directors in this year’s business
planning discussion, presents the FY14 World Bank budget for Board approval. The budget implements
the framework set out in the Medium-Term Business and Finance (MTBF) paper, modified as appropriate
in response to the views of Executive Directors on that paper.
1.1 CONTEXT AND SUMMARY
1. As discussed in the previous Board engagements, this year’s budget and planning process is taking
place against the backdrop of a wide-ranging review of the World Bank Group’s strategic
directions and organizational effectiveness.
2. Management proposed a two-prong approach to the Bank’s mission by setting ambitious targets to
end extreme poverty and promote shared prosperity, pursuing both of these goals in an
environmentally, socially and fiscally sustainable way. This framework was endorsed by the
Development Committee at the Spring Meetings in April, and will lay the foundation of a new and
unified Group strategy to be discussed with shareholders at the Annual Meetings. A significant
change agenda is now underway to support these strategic directions and enhance the effectiveness of
the institutions.
3. Change teams are overseeing work on the five priority reform areas identified during the
diagnostic phase: (i) strategic focus, (ii) knowledge and solutions, (iii) client impact and results,
accountability and risks, (iv) leadership, people and talent, and (v) global footprint. Under each of
these change teams, working groups are focused on specific aspects of these topics to finalize
implementation proposals. A multidisciplinary sounding board, with members from across World
Bank Group locations and units, has been established to collect staff perspectives and engage in
conversations regarding the proposals as they emerge. Management discussions are being scheduled
over the course of the summer to review updates, deliberate on proposals, and determine plans for
operationalization.
4. In this period of transition, the FY14 budget planning process has focused on supporting emerging
priorities that help the institution lean forward and on investments that are consistent with, and
supportive of, the developing strategy. At the same time, the process has protected ongoing work
program implementation, maintaining focus on the needs of our clients while the new strategic
framework is being fully defined, to be ready for implementation over the FY15-17 planning period.
5. For the FY15-17 planning period, when the full strategy has been approved, a comprehensive
strategy-based approach will be defined. The financial sustainability working group will strengthen
the finance and budget framework within which Management makes business decisions, aligning the
budget (revenues and expenditures) with the corporate strategy, enhancing the link to results, and
improving accountability through refocused performance reviews. There is a dedicated work stream
for “budget, strategic planning and performance review” co-chaired by Bank/IFC (see Box 1.1).
-1-
FY14 BUDGET DOCUMENT
Box 1.1: The Budget, Strategic Planning and Performance Review Group
The Financial Sustainability Working Group has three work streams – corporate finance and risk; client services; and
budget, strategic planning and performance review.
To support new strategic directions and the necessary re-allocation of resources, the budget, strategic planning, and
performance review group will develop a best practice, results driven, business planning, budget and performance
management process. Proposals for Senior Management consideration will take IAD recommendations on the
corporate budget process into account. Goals include:
1.
Coordinating the budgeting process across the World Bank Group within a corporate approach, as much as
feasible.
2.
Translating new strategic directions into business plans and the resource allocation process.
3.
Identifying and agreeing throughout the organization relevant business performance targets and metrics to
ensure effective implementation.
4.
Defining a new decision making framework that takes all sources of revenues and expenses into account –
including Trust Funds and Partnerships.
5.
Articulating accountability and decision-making authority at all levels of the organization for revenue
generation and resource allocation.
6.
Fostering improved cost control and efficiency, undertaking a systematic expense and business process
review to establish a framework for long-term savings.
7.
Establishing a stronger link between performance management and funding decisions, and identifying
relevant WBG metrics that could be aggregated.
8.
Enhancing corporate systems solutions and tools to operationalize all of the above.
6. The paper is structured as follows:

Remainder of Section 1 – sets the proposed World Bank budget in the larger context of total
World Bank revenues and expenditures, and presents the FY14 budget proposal for Board
approval.

Section 2 – recapitulates the discussion with Executive Directors on the MTBF paper, discusses
the conclusions of Management’s FY14-16 budget and business planning deliberations (including
proposed use of available budget room and allocations by priority area), and addresses key issues
and concerns associated with this year’s budget proposal as well as business planning in general.

Section 3 – provides an overview of overall work program funding, focus and implementation, to
give insights into the intended use of the Bank’s $1,946.7 million net administrative budget (in
Regions, Network Anchors, Other Operational units, as well as key Finance, Administrative and
Corporate units) – particularly in support of corporate priority areas.

Section 4 – presents the specifics of the FY14 Administrative Budget Proposal, including
information on unit-type allocations. The section also discusses below-the-line budget items,
external sources of funds, as well as the price factor and the capital budget plan for the coming
year.

Annexes – provide additional details and background information.
-2-
FY14 BUDGET DOCUMENT
1.2 FY14 BUDGET RECOMMENDATIONS
7. Management seeks Board approval of the following FY14 Budget recommendations (in $FY14):

That the net administrative budget be set at $1,946.7 million, to be managed within a range of
+/- 2 percent, including a price adjustment factor of 1.59 percent ($30.5 million).
o


The total administrative budget, which includes the net administrative budget and all
below-the-line components, is $2,548.4 million.
That Board-related FY14 funding comprise:1
o
An indicative budget of $75.0 million for Executive Directors, using a preliminary price
factor based on standard rate for HQ units, of which $18.0 million are reimbursables. The
price factor will be adjusted subsequently to reflect the decisions of the Joint Committee on
Remuneration and approval by the Board of Governors;
o
$14.4 million for Board of Governors, Development Committee, and Inspection Panel, of
which $2.5 million are reimbursables; and
o
$16.0 million for the Corporate Secretariat.
That the grant-making facilities be funded as follows:
o
$50.0 million for the Consultative Group on International Agricultural Research (CGIAR);
o
$51.2 million for the Development Grant Facility (DGF);
o
$9.0 million for the Institutional Development Fund (IDF);2 and
o
$5.0 million for the Global Partnership for Social Accountability (GPSA).

That $375.6 million be contributed to the Staff Retirement and related Plans, of which $4.4
million is to be provided to the Post-Retirement Contribution Reserve.

That the capital budget be set at $209.2 million.
1
The Independent Evaluation Group’s (IEG) budget is subject to a separate Board approval process, in which IEG is proposing a
budget of $34.2 million ($FY14), including $7.7 million of reimbursables.
2
IDF is subject to a cash management framework, which transfers budget to the facility depending on available legally
uncommitted cash of the facility and expected level of legal agreements to be signed in the next 12 months.
-3-
FY14 BUDGET DOCUMENT
2. ADDRESSING THE MAIN ISSUES FROM THE MTBF BOARD DISCUSSION
This section recapitulates the discussion with Executive Directors on the Medium-Term Business and
Finance paper, discusses the conclusions of Management’s FY14-16 budget and business planning
deliberations, and addresses key issues and concerns associated with this year’s budget proposal as well
as business planning in general. All references to budget amounts are in $FY13 unless otherwise
specified.
2.1 MAIN DIRECTIONS SET OUT IN THE MTBF
8. The MTBF, as the key budget and finance policy document and third engagement in the dialogue
between Management and the Board on the Bank’s yearly budget planning cycle, laid out the
proposed framework and main directions for the FY14 budget. As previously highlighted, this
year’s approach focused on funding priorities emerging from the strategic review. Management
believes it important to remain focused on delivery to clients and minimize disruption to ongoing
work programs while strategic direction setting is still in its early stages. This year’s planning
conversation therefore focused on the identification and prioritization of initiatives for potential
funding from the budget in the following areas:

Strengthening Bank support to countries in fragile and conflict-affected situations;

Operationalizing the new goals on absolute poverty reduction and shared prosperity (with a focus
on improving poverty data, analytics and statistics);

Increasing focus on results and quality during project preparation and implementation;

Supporting other elements of the reform agenda (such as integration of key corporate and
administrative functions across the WBG, and investments in areas of IT); and

Promoting innovation for poverty reduction and shared prosperity.
9. The planning process initially targeted the creation of around $66 million in additional budget
room to help fund key activities in these priority areas and prepare for any significant strategic
reorientation. To increase funding flexibility, Management proposed temporarily moving
uncommitted funding from grant-making facilities above the line, to support the Bank’s own work
program. Management did not expect to seek Board approval to pre-program the use of the 2%
flexibility band, though the band would be available, should the new strategy warrant.
10. Acknowledging that FY14 would be a transition year, most Executive Directors expressed general
comfort with the proposed budget framework during MTBF discussions. However, it was
emphasized that additional information would be required for final budget approval. In particular,
some Board members asked that the Budget Document:

provide more detail on the proposed move of grant-making facility funds;

demonstrate continued efficiencies and further cost savings in work program implementation;
-4-
FY14 BUDGET DOCUMENT

ensure effective use of priority funds and alignment with the emerging strategy and change
management agenda;

provide a fuller explanation of Management’s views on inter-VPU redeployments; and

review the cost and achievements of business modernization efforts to date.
Executive Directors also expressed a range of views on the flat real budget constraint.
11. During MTBF consultations, some clarifications on these key concerns were provided.
Management highlighted that the creation of additional budget space through reallocation of grantmaking facility funding would be temporary, would not affect the FY14 activity levels of the
facilities, and would be used to enhance work program focus on corporate priorities. Management is
committed to the continued pursuit of cost savings initiatives but also emphasized that while the
larger strategic framework was still being worked out, significant disruption to ongoing work
programs would be counter-productive. However, limited inter-VPU redeployments are ongoing to
encourage work program efficiencies and support operational priorities. The emerging strategic
directions and change management agenda are built on and will expand upon past business
modernization efforts. Executive Directors and Management agreed that any potential use of the 2%
flexibility band, other than its planned usage for unexpected emergency or crisis events that
materialize during the year, would require a strong business case and be revisited with the Board after
the new strategy has been approved. Finally, Management indicated that the policy of a flat real
budget constraint applied to the net administrative budget would be subject to reassessment in the
context of the strategic review and development of a new financial model.
12. Management and Executive Directors also agreed that a comprehensive approach to resource
allocation and business planning is needed. There was broad agreement that the Bank’s strategy
needs to be underpinned by an appropriate risk and financial framework that helps address concerns
about the medium-to-longer term income picture and capital outlook. Discussions highlighted the
importance of a strategy-driven budget process and a comprehensive approach to resource planning
(including the use of external funds and a broader review of the Bank’s approach to grant-making,
and its budgetary funding). An important component of the strategic review will be a thorough
review of the financial model, including sizing the Bank’s work program and various funding
sources. Management is committed to adopting a fully integrated and holistic approach to budgeting
– encompassing all expenditures and all revenues. This will be addressed by two of the three work
streams under the financial sustainability working group – corporate finance and risk; and budget,
strategic planning and performance review – and incorporated into the design of the FY15-17
planning process. Executive Directors welcomed the design of a new, comprehensive and strategybased budget and business planning process to support implementation of the full strategy.
2.2 CONCLUSION OF THE INTERNAL BUDGET CONVERSATION
13. Management agreed to recommend to Executive Directors an FY14 Budget that would encompass
funding unit requests totaling $60 million and a Contingency of $10 million.
-5-
FY14 BUDGET DOCUMENT
14. Funding of $52 million is planned to directly support the implementation of the forthcoming
strategy by:

providing more support to Fragile States;

funding IT investments that can improve operational effectiveness and connectivity;

supporting operationalization of poverty goals;

fostering frontline innovations; and

creating a strategic reform priorities contingency.
15. A further $18 million would be allocated to the change agenda, modernization, and ongoing
business. This will ensure that the change initiatives underway can be continued, and that specific
business-related cost pressures in the ongoing work program can be addressed. Table 2.1 provides
additional detail. Paragraphs 23 and 24 discuss the use of priority funds, including examples of
funded activities and program areas.
Table 2.1: Funded Priority Areas
($FY13 million)
Funded Priority Areas (Uses)
Final Allocations
Support to FCS
IT - Reform Agenda
15.7
1
15.5
Opera tiona l i zi ng Poverty Ta rgets
8.1
Front-l i ne Innova tion
3.0
Contingency
10.0
Cha nge Agenda
7.6
Moderni za tion
4.7
On-goi ng Bus i nes s Cos t Pres s ures
5.4
Total
70.0
1/
Net of $5 million due to capitalization of staff costs related to IT investment. A shift in the
threshold for the capitalization of staff time will result in $5 million in cost previously charged to the
net administrative budget being capitalized and expensed through depreciation over the life of the
relevant assets.
2.3 ADDRESSING CONCERNS RAISED BY EXECUTIVE DIRECTORS
Proposed redeployment of uncommitted grant-making facility funding
16. Consistent with the MTBF proposal, Management recommends the use of uncommitted grantmaking facility funding to support key work program areas.3 The proposed move is focused on
funding emerging priorities firmly associated with the new strategy. Redeploying funds from the
grant-making facilities (“below-the-line”) to the net administrative budget (“above-the-line”) in FY14
3
See section 4.4 for more details on grant-making facilities funding for FY14-16.
-6-
FY14 BUDGET DOCUMENT
to fund the Bank’s own work program will help to get a head start in implementing the new strategy
and to scale up activities in priority areas. The redeployment will be reassessed next year as part of a
broader review of the role of external grant-making from the Bank’s own resources in the context of
full implementation and funding of the new strategy.
17. Management’s plan to undertake a comprehensive assessment of the Bank’s support for grantmaking facilities during FY14 is in part a response to calls from Executive Directors during the
discussion of the FY14 MTBF paper for a review of the rationale and effectiveness of Bank funding
for these facilities. It is also required by a comprehensive approach to strategy and budget. The
assessment will take into account a number of considerations, including: the IBRD’s constrained net
income and budget situation; the growth of Trust Fund use since the creation of some of the facilities;
and the potential for overlap between grant-making activities and Bank programs. The assessment
may lead to recommendations to (a) further reduce or phase out funding for selected grant-making
facilities, along with a proposed exit strategy and (b) change the funding approach, moving funding of
some facilities “above-the-line” and/or funding external grants as part of the Bank’s annual net
income allocation process. The outcome of this assessment will inform Management’s
recommendations for Bank contributions to the facilities beginning in FY15. Management also
requested that IAD carry out an Advisory Review of the five facilities. A report was completed in
May 2013 and will be used to inform the work to be undertaken in FY14. For the second year, a
comprehensive report on the five below-the-line (BTL) grant-making facilities will be presented to
the Board at the beginning of June, to ensure a more holistic and systematic approach to the funding
of these facilities, with allocations linked to the Bank’s annual planning and budgetary processes.
Potential for further cost savings
18. The Bank has put a strong emphasis on cost saving initiatives, with periodic efficiency and
selectivity exercises being a constant feature of Bank budgeting. Measures implemented have
delivered savings in areas such as compensation, staff flexibility and usage of consultants, offshoring, process improvements, space management efficiency, and use of productivity enhancing
technology. The recent MTBF paper provided a comprehensive listing of these initiatives.
19. During the MTBF discussions, Management and Executive Directors agreed that it is important to
pursue further work program efficiencies and identify additional cost saving opportunities.
Informed in part by the recently concluded IAD expense analysis and efficiency review (Box 2.1),
Management has deliberated extensively on options identified, taking into consideration previous
work program analysis and cost savings experience.
20. Strategic improvements, when done correctly, have the potential to be much more effective than
tactical improvements – and to provide benefits that are both larger and more sustainable over
time. In order to incorporate sustainable efficiencies into the Bank’s work program execution,
Management believes it is critical to design a comprehensive, structural, and strategic cost reduction
framework for the longer term that takes into account all sources of funds. This will be a key
deliverable for the budget, strategic planning and performance review working group.
-7-
FY14 BUDGET DOCUMENT
Box 2.1: IBRD Expense Analysis undertaken by IAD
A recent review of the landscape of corporate expenses by IAD, commissioned by Management, to assess opportunities for
cost efficiencies concluded that opportunities for short-term tactical cost reductions (‘quick wins’) are limited, either because
some processes already benchmark favorably against peers or Management has already implemented the most obvious cost
cuts. These findings are consistent with a Deloitte study from March 2013 that surveyed senior executives directly involved in
cost management strategies (Save to grow, Deloitte’s third biennial cost survey: cost-improvement practices and trends in the
Fortune 1000). ‘Quick-win’ savings, although easier to implement, do not often address structural issues, and are therefore
more likely to fail the test of sustainability due to reversion to old habits as the pressure eases. Thus, implementing further
potential ‘quick-win’ options in FY14 may yield relatively limited cost savings while potentially having a substantial impact
on staff at a time of organizational transition. More significant and sustainable strategic savings could be achieved through
business process re-engineering in key areas of expenditures. ‘Deep dive’ reviews were recommended in areas such as real
estate, travel, current staff and field benefits, or consultant rate setting. The new budget, strategic planning and performance
review working group will be undertaking this work.
21. While the budget, strategic planning and performance review working group works on the design of
the strategic cost reduction framework, work will continue on the implementation of some discrete
cost savings initiatives already underway or identified (see Box 2.2 for examples of new initiatives
not covered in the MTBF).
Box 2.2: Recently implemented and forthcoming cost savings initiatives
CTR launched eDisbursement in FY11, an online banking facility that allows clients to request and review disbursements,
access billing information, view previous withdrawal applications and documentation, and monitor disbursements. This
initiative standardizes and simplifies payment processing and significantly reduces the required documentation for loan
processing. Expected savings are in the region of $2-7 million per annum.
AFR is seeking to reduce travel spend further in FY14 by enforcing booking best practices (such as one to two week
advance bookings, travelling mid-week instead of weekends), restricting travel in peak travel months to only essential
operational travel, and piloting the adoption of annual travel spending limits per staff. These initiatives are expected to yield
additional savings of approximately $2.5 million or about 5 percent of the base travel spend of $50 million per annum.
Move to managed print services by centralizing print asset management, purchases, supplies, maintenance and support with a
single vendor, and installing multi-user devices (printers, faxes, scanners, copiers) with access codes to replace large numbers
of personal desktop printers. Annual savings are estimated to be at least $2 million (out of $6 million current base spend). A
phased implementation in HQ will start in September 2013.
Institutional Space Realignment: GSD has developed an extensive space realignment plan at HQ to reduce leased space in
the U- and IFC Buildings in a phased manner. The project, to be completed by end-FY14, is expected to generate potential
lease savings of approximately $2.8 million in FY15, and $4.3 million from FY16 onward.
Buy versus lease analysis is being undertaken in country offices, for example a decision to buy land and build a WBG office
on it in Sierra Leone was recently approved following an analysis that showed this would potentially save the Bank
approximately $2 million over a lease decision. Similarly in the Philippines, buying new space and fitting out to Bank's
specifications versus leasing space showed a present value savings of $8.9 million.
-8-
FY14 BUDGET DOCUMENT
22. Although the main driver of the forthcoming integration of World Bank IMT, HR and EXT
functions with their counterparts in the IFC is improved business execution and service delivery
for clients, efficiency gains can also be expected from these synergies over the medium- to longerterm. Integration efforts will create the new World Bank Group Integrated Services unit (WBGIS).

Integration in the IT area will yield opportunities for improved economies of scale through
consolidation of common platforms as older systems are retired and replaced. Examples include
replacement of the e-mail system, use of the cloud, and the elimination of duplicate systems in
country offices where the Bank and IFC are co-located.

A new Shared Service Agreement (SSA) structure for FY14 will be instituted by the end of June
for all three WBGIS Vice-Presidencies.

The total FY14 budget for these Integrated Services (including IBRD, IFC, and MIGA funding
sources) is shown in Table 2.2 below. These numbers represent the beginning of a strategic view
of the Integrated Services work programs and their associated budgets at the WBG level.
Table 2.2: Total FY14 Budgets for Integrated Services
($FY13 million)
Integration of IT, HR and EXT
World Bank Group FY14 Indicative Budget by Budget Category
1
Capital Budget
Administrative Budget
163.8
247.8
-
86.3
Informa ti on Technol ogy Sol uti ons
Huma n Res ources
Externa l Affa i rs & Corpora te Rel a ti ons
Total
-
43.6
163.8
377.7
1/
Figures include comparable unit BB budgets; excludes external funding sources and centrally managed
benefits and overheads related to these functions.
Use of priority funds
23. Management is focusing the majority of the additional budget room on emerging strategic
priorities, notably benefiting work programs for countries in Fragile and Conflict-Affected
Situations (FCS). Of the $70 million in additional FY14 funding allocated through this year’s budget
proposal, $52 million directly supports emerging priorities identified in the ongoing strategic review
and design of the new WBG strategy. In general, additional funding will be temporary and activityfocused, and will not result in an increase in fixed costs for receiving units. Much of this funding will
support FCS work programs, directly or indirectly. Around $16 million will be directly allocated to
FCS country programs. FCS country programs will also benefit indirectly from a further $22 million
in funding, mainly for the IT reform agenda and operationalizing poverty goals.
-9-
FY14 BUDGET DOCUMENT

Support to FCS country programs ($15.7 million) – FCS related funding will scale up specific
country programs (e.g., Sudan, Zimbabwe, Somalia, Myanmar, Haiti, Libya and Iraq), build up
surge capacity in the Nairobi FCS hub, fund increased security costs in the MNA Region and
enable IMT to provide additional FCS-related support.

IT – Reform Agenda ($15.5 million) – The majority of the IT Reform Agenda funding ($13.0
million) will be used to enhance country office connectivity by increasing the available
bandwidth. This initiative will especially benefit offices (and operations) in poorer and FCS
countries. Introduction of a corporate drop box and a new email system will also be funded.

Operationalization of Poverty Goals ($8.1 million) –The allocation of $6 million across
Regions, PRM and HD networks to improve the quantity, quality, and accessibility of micro data
by stepping up country efforts is being finalized. The efforts will aim to strengthen poverty
monitoring, capacity building for household data collection, and analytical tools to support the
operationalization of WBG goals at the country level. Additionally, resources allocated to DEC
($1 million) will support expand research, data collection, and statistical capacity building.
Additional funding for SDN ($1 million) will support ongoing work on developing and applying
methodologies to account for greenhouse gas in certain sectors.

Frontline Innovation ($3.0 million) – WBI will receive $3 million to foster frontline innovation.
These funds will allow are TTLs to test or pilot innovative activities and approaches.
Collectively these initiatives will contribute to a WBG "Innovation Portfolio". The funds will be
passed on directly to the Regions and Networks.

Contingency ($10 million) – created to respond to emerging strategic reform priorities through
the year.
24. Remaining funds allocated from the proposed FY14 budget room will support organizational
reform and address cost pressures associated with ongoing work program implementation:

Change Agenda ($7.6 million) – Funding for the Change Management Senior Vice President
and a small group of staff. Funds will also be used to pay for consultants working on
organizational and change design.

Modernization ($4.7 million) – Modernization initiatives are generally in line with the corporate
priorities and will receive funding for a safeguards review (started in October 2012), HR
compensation and benefit reform, implementation of the new Accountability and DecisionMaking framework (ADM), development of a new Policy and Procedures Framework (P&PF),
and finalizing a procurement review (see paragraphs 26-31 for further information on
modernization).

On-going Business Cost Pressures ($5.4 million) – Work program cost pressures arising from
developments outside the VPUs not be absorbed internally include: increased security costs,
move costs for the institutional space realignment program, resources for administering the tax
supplement for staff under the “net retirement plan”, and IDA replenishment support.
- 10 -
FY14 BUDGET DOCUMENT
Scale of inter-VPU redeployments
25. The proposed budget continues inter-VPU redeployments, albeit on a modest scale in light of the
pending new strategy. The FY13 Budget redeployed $14 million from the Network Anchors, WBI
and DEC to other units. The proposed FY14 envelope largely re-confirms the $12 million reduction
for the Network Anchors, to which these units are still adjusting. WBI and DEC will receive an
additional $4 million to support the two corporate priorities of operationalizing poverty goals and
fostering front-line innovation. The flexibility tax is being re-introduced for the Finance,
Administrative, and Corporate (FAC) units in FY14. Applied proportionally, the 2 percent tax
generates $10 million for redeployment to corporate priorities. Even after applying this tax, the
trajectories of some FAC units (especially IMT) will increase to support emerging corporate
priorities. Regional units received $27 million in the FY13-15 and $19 million in the FY14-16
business planning process in additional funding. This year’s significant investment in the IT
infrastructure will also mainly benefit the frontline. Implementation of the new World Bank Group
strategy will necessarily require deliberate, thoughtful shifts and re-allocations in budget.
Costs of business modernization and the change agenda
26. The World Bank is continuously evolving to adapt to a changing environment, serve a broader set
of clients and partnerships, diversify its services, and improve efficiencies in work program
execution. To respond to these challenges, the Bank launched a comprehensive modernization
agenda at the 2010 Spring Meetings, which has paved the way for the current change process. At the
2012 Spring Meetings, Management reported that all of the initial reforms had been implemented or
were in progress, and laid out a series of follow-up reforms to strengthen the Bank’s focus on results,
openness, and accountability.4 At the 2013 Spring Meetings, Management confirmed that
commitments made under the modernization agenda will be largely implemented by end of FY13,5
and that the changes and efforts made have been fundamental to laying the groundwork for the
current change agenda.
27. Over the period FY11-13, around $89 million of incremental Bank administrative funding was
allocated to modernization initiatives through the annual business planning process and other Senior
Management decisions on in-year funding,6 in addition to redeployments from within units’ own
budgets. Of this allocation, $21 million relates to one-time administrative and ongoing maintenance
costs related to IT projects. See Table 2.3 for more details and Annex A for examples of business
modernization achievements to date.
4
Update on the Bank’s Business Modernization: Results, Openness, and Accountability, Development Committee Paper, Spring
2012.
5
A Common Vision for the World Bank Group, Development Committee Paper, Spring 2013, Background Annex.
6
Includes in year contingency funding and authorized overruns; excludes any additional redeployments from units from their
base budgets.
- 11 -
FY14 BUDGET DOCUMENT
Table 2.3: Cost of Modernization – Net Administrative Costs (FY11-13)
FY11
Actuals
Cost of Modernization - Net Admin Costs ($m)
Focus on Results
South-South Innovation
Staff Global Mobility Reform 1/
Results oriented instruments & processes
New units and hubs
2/
3/
FY12
Actuals
FY13
Projected
FY11-FY13
Total
14.8
8.5
6.0
29.4
1.0
1.0
0.0
2.0
0.0
0.8
1.1
1.9
5.2
1.0
0.0
6.2
2.5
4.0
1.9
8.3
Support to Operations (span of control & regional pipeline)
6.1
1.8
3.1
11.0
Accountable Bank
0.0
1.1
1.7
2.8
Accountability & Decison Making Framework (ADM) 4/
0.0
0.0
1.2
1.2
Trust Fund Reform
0.0
1.1
0.5
1.6
Open Bank
1.2
1.6
3.9
6.8
1.0
1.2
1.6
3.7
0.3
0.4
2.4
3.0
Open Access Publications model reform
Open Development
5/
Knowledge Bank
11.1
12.4
6.1
29.6
Knowledge 6/
3.7
7.4
4.3
15.4
Cross Support & Collaboration Pilots 7/
7.4
5.0
1.8
14.2
New IT Investments
Investments in Information Technologies (O&M and admin) 8/
1.5
6.9
12.4
20.8
1.5
4.4
9.9
15.8
HR Peoplesoft Systems Renewal
0.0
2.5
2.5
5.0
28.6
30.6
30.1
89.3
TOTAL - Net Admin
1/ Global Mobility approved budget in FY13 was $1.85m of which $0.8m has been returned at mid-year because the vendor contract
not yet in place
2/ Includes IL Reform Secretatriat in FY11, P4R, AAA etc, and KLC -funded support to front line teams
3/ Includes part of Internal Reform Secretatriat, Chief Risk Officer, and Nairobi FCS hub
4/ Total spend on ADM in FY13 is $2.0m, of which $0.6m is funded from OPCS existing budget, and $1.18m granted as overrun
authority
5/ Includes additional funding given for data curation and open data tools development, benficiary feedback, and OPCS knowledge
mandate & governance
6/ Includes KLC-funded Knowledge Platforms and Bank Fellows programs, OPCS mandate on governance, South-South Knowledge
Exchange, Singapore hub, part of Reform Secretariat
7/ Includes FPD Global Practice Pilot, and the KLC-funded GETs and Technical Experts programs
8/ See capital investments table
28. Investments in information technologies have supported many aspects of the modernization
program, and range from investments in global management systems and collaboration platforms, to
renewal of financial systems. Capital investments on IT projects were around $96 million for FY1113. See Table 2.4 for a breakdown.
- 12 -
FY14 BUDGET DOCUMENT
Table 2.4: Cost of Modernization – Capital Investments (FY11-13)
FY11
Capital
spent
FY12
Capital
spent
FY13
Capital
released
FY11-FY13
Operations and knowledge systems reforms
HR Systems Renewal
7.1
6.9
3.5
5.6
7.8
5.6
18.4
18.1
IMT connectivity in country offices
0.0
4.7
0.0
4.7
Financial systems renewal
Cyber Security
3.4
0.0
8.3
0.0
15.9
1.4
27.6
1.4
TOTAL - Capital
17.4
22.1
30.7
95.5
Cost of Modernization - IT Capital Investments
($m)
Capital Budget investments represent actual spend in FY11 and FY12, and capital budget released in FY13.
29. The development of a new Strategy for the World Bank Group is now driving an even more
dynamic change process, with key areas of the change agenda including: (i) facilitating the creation
and smooth flow of knowledge internally and externally; (ii) promoting stronger client impact and
results, with a clear understanding of risk and accountability; (iii) improving leadership, talent and
skills; and (iv) defining an optimal global footprint.

A change management office, with an initial FY14 budget allocation of $7.6 million, has been
established under the leadership of a Senior Vice President. The diagnostic phase of the process
began in the fall of 2012 and culminated in the Follow the Sun event in January 2013.

Change Working Groups have been created to drive the identification, design, and
implementation of changes needed to address the key areas listed above. It is expected that Senior
Management will decide on the final proposals put forward by these working groups by mid-July
2013. A full costing of these changes will be prepared by the Fall.
2.4 ONGOING BUSINESS PLANNING ISSUES AND PRIORITIES
30. Management continues to address general business planning issues and priorities identified with
the Board in past years – e.g., spanning operational quality, work program accountability, Network
Anchor effectiveness, and Trust Fund integration. The following provides a brief update on
improving operational quality:

A Board seminar on February 28 discussed the significant role that Quality-at-Entry has
played in the decrease in satisfactory IEG outcome ratings. Some of the issues identified were
Monitoring and Evaluation design and economic analyses in projects. Suggested actions include
better assessment of financial and economic aspects taking into account risks. On the
implementation side, inadequate supervision (TTL turnover, timing and frequency of supervision
visits), appropriate follow-up and resolution of problems, and candor, are factors closely
reviewed to improve quality levels. As part of their corporate oversight of quality, OPCS is
reviewing the current system of capturing costs related to quality assurance.
- 13 -
FY14 BUDGET DOCUMENT

At the start of FY13, $10.3 million ($FY13) from the Corporate Priorities Fund was released to
Regional Sector Management Units to help strengthen project implementation support and
operational quality, particularly in FCS and IDA countries. At end-April, Regions had
allocated around $10.1 million and had spent around $7 million of that amount on prioritized
projects. Around 70 percent of the projects that received funding are projects in “problem”
status, and more than $7 million of total allocations focused on strengthening support to countries
in fragile and conflict-affected situations and IDA countries. A full assessment of the funded
projects will be carried out at the end of FY13 and findings will be reported in the QBRR. (See
Annex B for details.) This funding has been rolled over into FY14-16 Regional budget
trajectories and will continue to be focused on project implementation and quality.
31. Relevant progress on other priority areas – e.g., Memoranda of Understanding (MOUs), the Network
Anchor Accountability Framework, and external funds – is discussed in Sections 3 and 4 of the paper.
- 14 -
FY14 BUDGET DOCUMENT
3. FY14 WORK PROGRAM
This section provides an overview of the overall work program to be funded by the proposed FY14 net
administrative budget (in Regions, Network Anchors, Other Operational units, as well as key Finance,
Administrative and Corporate units) – particularly in support of corporate priority areas. All references
to budget amounts are in $FY13 unless otherwise specified.
3.1 CONTEXT
32. One Matrix, one Memorandum of Understanding. In the context of the ongoing strategic review
and the definition of new corporate goals, operational units have worked on better coordinating their
performance and accountability monitoring through Memoranda of Understanding (MOUs). The
well-established Regional MOU framework, combined with the first experience with Network
Anchor MOUs and their new Accountability Framework, has provided useful lessons. FY13 MOU
stocktaking led to harmonization of approaches across the matrix:

To foster coordination, Regions and Network Anchors are now combining their individual MOUs
into Matrix MOUs for FY14, designed around the Corporate Scorecard tiers and including highlevel corporate priorities presented in the DC paper. Indicators for these priorities will be
developed next. The large majority of MOU indicators will be under joint accountability of
Regions and Networks, while some will be under individual accountability for delivery/results, or
monitored only.

The proposed common MOU framework spans four focus areas: (i) supporting the achievement
of corporate goals; (ii) defining strategic engagement areas and objectives; (iii) improving
development outcomes and operational effectiveness (through financing, advisory services,
convening, knowledge); and (iv) attaining organizational effectiveness (across talent
management, knowledge flows, and resource management).

This new framework draws on the Network Anchor Accountability Framework established last
year to help coordination across operational units in key areas such as talent management, quality,
and global knowledge.

The new framework is still in draft and subject to Matrix Management Team review and
approval. It will be further refined for FY15 and beyond in accordance with the new WBG
Strategy.
33. Lending program: Between FY08 and FY10, IBRD increased its commitments from $13.5 billion to
$44.2 billion. In line with earlier expectations, lending levels have decreased since FY11 while
remaining above pre-crisis levels. It is estimated that IBRD will reach $15 billion and IDA will reach
$16.3 billion. Annual commitments for IDA have increased steadily and averaged about $15.2 billion
over the last three years (FY10-12). IDA commitments increased by almost 60 percent between
FY06 ($9.5 billion) and FY12 ($14.8 billion).
- 15 -
FY14 BUDGET DOCUMENT
34. In response to the concerns related to lending projections expressed by Executive Directors during the
discussions of the MTBF paper, a new approach has been adopted to ensure a more realistic
methodology. This methodology is being further improved to incorporate a greater degree of
Management judgment with regard to the expected volume of commitments over the next three years.
This represents a change from the approach in recent years of simply using the mid-point of the
corporate high case and low case projections.
35. Core Knowledge Services: Total annual spending (Bank Budget, Reimbursable and BETF) on core
knowledge products7 stood at $715.6 million at Q3 FY13, compared to $665.7 million in the previous
12 months (FY12 $690 million), see Table 3.1 for further detail. Over seventy percent of the Bank’s
knowledge portfolio responds to direct client demand, with a steady rise in the share of technical
assistance (which accounts for 44 percent of all knowledge spend) – especially “how to” advice.
Recent years have also seen a significant growth in Reimbursable Advisory Services (RAS).
Table 3.1: Core Knowledge Expenditures (All Funds)
For the 12 months ending Q3 of the indicated FY
($ million)
Regions
Networks
DEC & WBI
Other Units & FACs
Knowledge for Clients
Q3 FY12 Q3 FY13
340.1
393.4
80.3
91.8
62.1
59.6
5.3
4.9
487.9
549.6
Knowledge as Public
Good
Q3 FY12 Q3 FY13
8.6
2.4
5.8
7.0
53.1
48.6
0.0
0.1
67.5
58.1
Knowledge for
Internal Use
Q3 FY12 Q3 FY13
29.1
29.9
64.0
62.2
4.5
3.7
12.7
12.1
110.3
107.9
Total
Q3 FY12 Q3 FY13
377.9
425.7
150.2
161.0
119.7
111.8
18.0
17.1
665.7
715.6

Regions account for almost 60 percent of all knowledge expenditure, and Anchors for about 22
percent. The bulk of Anchor costs recorded under their new Accountability Framework relate to
knowledge generation activities, which are generally expected to increase (as indicated in the
Anchors’ FY14-16 business planning submissions).

To strengthen results orientation and the capture of information, internal knowledge products and
impact evaluations (which account for about 15 percent of the $715.6 million spend on
knowledge) were brought onto the Operations Portal in Q2 FY13. Along with economic sector
work (ESW) and non-lending technical assistance (TA), this now represents about 80 percent of
expenditures on core knowledge services.

The Bank is pursuing a three-pronged approach to its commitment to improve the quality and
impact of its knowledge services; self-assessments, client feedback, and independent evaluations.
7
Core knowledge products are comprised of: (i) Knowledge for clients (ESW, TA, impact evaluation, and external training); (ii)
Knowledge as a public good (WDR, research services, and global monitoring reports); and (iii) Knowledge for internal use (KP
and new product development).
- 16 -
FY14 BUDGET DOCUMENT

Client feedback instruments were launched in Q2 FY13 for ESW and TA delivered in FY11 or
FY12 with Results Completion Summaries. Initial analysis revealed that client perceptions were
well-aligned with TTL perceptions in areas related to capacity development. Work is now
ongoing on the further systematization of client feedback within the Bank’s Operations Portal.

Simultaneously, work is underway with IEG on an ex-post evaluation framework for knowledge
products based on information in the new Operations Portal and the degree to which it supports
impact evaluation for decision making.
36. Discussions around the IDA17 replenishment highlight that evidence-based knowledge will be an
important driver for establishing the institution as a Solutions Bank. See Annex D for more details on
recent progress and planned efforts.
37. The following sub-sections provide an overview of the planned FY14 work program, especially in
corporate priority areas, across Regions, Network Anchors, Other Operational Units, as well as select
Finance, Administrative and Corporate VPUs. Targeted results and expected use of external funds
are noted, where appropriate.
3.2 REGIONS
38. Consistent with the trend in recent years, funding of Regional programs will increase in FY14 by
$16.2 million compared to FY13. Main changes are due to additional funding of $19.2 million
related to priority areas (especially FCS support and operationalizing poverty goals). 8 External funds
are expected to grow in most Regional VPUs. The South Asia Region (SAR) expects external funds
to grow by 9.7 percent, while the Middle East and North Africa (MNA) Region predicts a drop of 4.1
percent, which is mainly due to the closing of the Red Sea-Dead Sea Trust Fund in FY13 and Iraq
Trust Fund in FY14. See Table 3.2 for details.
8
Offset by the centralization of the associated expenses and budget for Country and Regional Security Advisors under GSD as of
FY14 (see paragraph 67 on GSD).
- 17 -
FY14 BUDGET DOCUMENT
Table 3.2: Regional Budgets
($FY13 million)
FY13 Budget Remap1
FY13 Budget Plan
BB
External
Funds
All
Funds
BB
External
Funds
FY14 Budget Plan
All
Funds
BB
External
Funds
All
Funds
FY14/13
Percentage
FY14/13
Percentage
Change2
BB
Change2
All Funds
Africa
338.8
136.9
475.7
343.7
139.0
482.7
348.6
138.2
486.8
1.4%
0.9%
East Asia and Pacific
160.9
104.2
265.0
164.8
107.6
272.4
168.2
110.2
278.3
2.1%
2.2%
Europe and Central Asia
173.0
56.8
229.8
175.1
56.3
231.4
174.7
59.6
234.3
-0.2%
1.3%
Latin America and Caribbean
177.6
36.8
214.4
179.2
39.6
218.8
179.5
41.7
221.1
0.1%
1.0%
Middle East and North Africa
105.0
52.0
157.0
106.8
51.6
158.3
110.3
49.5
159.7
3.3%
0.9%
South Asia
150.8
54.7
205.5
152.1
55.5
207.6
151.1
60.9
212.0
-0.6%
2.1%
1,106.0
441.4
1,547.5
1,121.6
449.6
1,571.2
1,132.4
459.9
1,592.3
1.0%
1.3%
13.9
0.0
13.9
13.9
0.0
13.9
13.9
0.0
13.9
0.0%
0.0%
5.2
0.0
5.2
0.5
0.0
0.5
0.0
0.0
0.0
-100.0%
-100.0%
10.3
0.0
10.3
0.1
0.0
0.1
0.0
0.0
0.0
-100.0%
-100.0%
0.0
0.0
0.0
0.0
0.0
0.0
6.0
0.0
6.0
na
na
1,135.4
441.4
1,576.8
1,136.1
449.6
1,585.7
1,152.3
459.9
1,612.2
1.4%
1.7%
SUB-TOTAL
Bank/FAO Cooperative Program
Corporate Contingency Funds for Regions
Corporate Priorities Fund for Regions
Regional Fund for Operationalizing Targets
TOTAL Regions
1
Budget remap amounts include allocations from contingency funds as well as changes in program responsibilities implemented in FY13
2
Compares FY13 Budget Remap to FY14 Budget Plan
39. The Bank’s spending on Client Services has averaged around 62 percent of the total spend over the
past decade, though it increased during the financial crisis due to redeployments and access to the 2
percent flexibility band. As shown in Figure 3.1, the share of resources for Country Services, mainly
Lending, Supervision, and AAA has been stable for several years, averaging around 31 percent of all
funding sources, a trend that is expected to continue in FY14.9
Figure 3.1: Spending Trends in Client, Country, and Core Services 13
Total Bank Spend, All Funds
70%
Share of Total Spending
60%
50%
40%
30%
20%
10%
0%
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Client Services
Country Services
9
Core Services (LEN+SPV+AAA)
Client Services include all business activities that are either specific to client countries (e.g., preparation and supervision of
projects and knowledge products & services) or global and sector-wide (e.g., knowledge management, sector strategy, research,
and external partnership). Country Services include business activities that are specific to client countries including preparation
and supervision of projects, country economic and sector work, technical assistance and aid coordination, country program
support, client training, and impact evaluation. Core Services refer to business activities for project supervision (SPV) including
financial management and procurement, loan accounting and disbursement, and portfolio management, project preparation
(LEN), and country economic and sector work and non-lending technical assistance (AAA).
- 18 -
FY14 BUDGET DOCUMENT
40. Indirect and sustaining costs have increased from around 14 percent of total costs in FY02, to 16
percent in FY12. Decentralization and related costs such as physical security and IT connectivity
have mainly contributed to this increase. More staff are now located in the field closer to the client
and almost 45 percent of tasks are now managed from the field. Overseas assignment benefits, more
face-time in FCS, and an increase in sustaining costs due to more Country Directors in the field are
some examples of decentralization cost drivers. At mid-year, 60 percent of the Regional staff were
based in country offices, including 40 out of the 43 Country Directors.
Regional work programs
41. Country programs, driven by Country Assistance/Partnership Strategies, continue to shape the
work programs of the Regions. The Bank has active lending programs in around 130 countries,
governed by Country Assistance/Partnership Strategies and Interim Strategy Notes. The Bank is also
engaged in analytical and advisory services as well as global support programs in a further 20 or so
countries. Compared to FY13, Regions are reengaging and developing new programs in countries
such as South Sudan, Myanmar, and Zimbabwe.
42. Regions are taking into account the focus on FCS and the operationalization of the new goals in
their strategies. Regions are also shifting to more programmatic approaches, for example in AAA,
and bundling multi-sectoral suites of financial, knowledge, and convening services. With work
program vulnerabilities remaining based on fragility and political uncertainties in some countries,
Regions are strengthening partnerships and work program coordination with other development
partners (e.g., see details on MNA in paragraph 52) as well as sustained presence on the ground.
43. Knowledge projections are lower than in previous years, largely due to a new programmatic approach
to ESW and TA rolled out in July 2012. With this new approach, individual AAA products that are
part of a program do not count as separate deliveries. Regions also indicate that they are doing fewer
stand-alone and one-off knowledge products. A recent change to counting delivery at "completion",
rather than the previous practice of counting “delivery of a draft output to the client” will encourage
robust dissemination.
44. The FY14-16 Regional Business Plans reaffirmed the general directions described in their Board
Updates. They also provided additional details on the instruments and projects Regions are using to
implement their work programs, such as Program-for-Results (PforR) and South/South knowledge
sharing, high impact and innovative/transformational projects, and projects targeting regional
integration. Business plans highlighted greater collaboration with IFC and MIGA, such as the joint
initiative with IFC on low-cost private education in AFR (to address shortage of skilled labor in
agriculture, energy, extractive industries, and health); integrated water management with geographic
focus on the Balkans, Turkey, and Central Asia; South-South sharing of knowledge solutions on
Urban Planning and Violence prevention (from Brazil and Colombia to Nigeria); supporting
innovation in SMEs in Lebanon through a Public/Private Equity Fund; a joint WBG program on
access to electricity in Myanmar; and a joint WB/IFC program for development of Nepal’s
hydropower potential.
- 19 -
FY14 BUDGET DOCUMENT
45. Operationalization of the new goals is a priority for the Regions. $6 million of additional annual
funding will be allocated primarily to the Regions (with some of these resources also to be given to
PRM and HDN) to begin this work. Initiatives supported by this funding include upgrading Regional
capacity to conduct regular household surveys and to collect and disseminate data, augmenting data
structures, such as with gender disaggregation, strengthening the capacity of clients’ statistical
systems and institutions, and piloting the new poverty and shared prosperity goals in country
strategies.
46. Africa (AFR):

The Region is focused on assisting countries to diversify their economies and generate jobs, close
the gap between infrastructure needs and investments, and build the skills of workers; reduce
vulnerability and build resilience to various shocks – economic, health-related, natural disasters
and conflict; and strengthen governance and public sector capacity.

The Region is preparing PforR projects in Kenya and Mozambique, and has delivered its first
three PforR projects in Ethiopia, Uganda, and Tanzania. AFR’s key areas of engagement in
FY14-16 include energy, skills/education, agriculture/dry lands, social protection/gender, and
natural resource management. AFR will work on transformational projects including creation of
regional powerpools and mechanisms that leverage IDA financing and crowd in private
investment to help Africa meet its energy needs from clean sources (hydro, geothermal and gas).
The Region will continue scaling up its work in FCS countries, with the share of FCS resources
reaching 16.4 percent of total resources by FY16 (from 15.4 percent in FY12). Incremental
funding for AFR will support expanded engagement in FCS including in Sudan, Somalia, Guinea,
and Zimbabwe, as well as additional funding for regional LEN and AAA work to address key
drivers of conflict and fragility (e.g., in the Great Lakes Region and the Sahel).
47. East Asia and the Pacific (EAP):

The key development challenges in EAP include: the need to address absolute poverty; fill the
large gaps in infrastructure, especially in rapidly growing urban areas; and reduce the region's
vulnerability to natural disasters.

In addition to ramping up the Myanmar program, the Region will focus on FCS in the Pacific,
continue its efforts in high profile knowledge engagement, and work on priority areas such as
health, gender, Disaster Risk Management (DRM)/climate change, and infrastructure. High
profile knowledge work will include a major China Urbanization study and the EAP companion
piece to WDR 2013 on Jobs. The Seoul Finance Center, the Singapore Global Infrastructure and
Urban Development Center, and the Tokyo Distance Learning Center will continue to offer
platforms for global knowledge generation and dissemination.
48. Europe and Central Asia (ECA):

The Region continues to focus on business competitiveness, particularly at a time of heightened
economic vulnerability and constrained employment due to the protracted Eurozone crisis. A
declining labor force and growing aging population present another important challenge for ECA.
- 20 -
FY14 BUDGET DOCUMENT
Facing already high levels of social expenditures, the Region is focused on ensuring social
inclusion and equity.

Three PforR projects are in the pipeline (two in Croatia and one in Moldova). The global
economic crisis has affected ECA more than any other Region and economic conditions in the
Eurozone area may continue to deteriorate. In the coming planning cycle, ECA will focus on
improving Europe’s global competitiveness, reforming a social sector that has the highest level of
social expenditure in the world, and advancing climate actions in a region which remains one of
the most energy inefficient.
49. Latin America and Caribbean (LCR):

The Region is pursuing the strategic goals of eliminating poverty and boosting shared prosperity
by focusing on five strategic pillars of engagement: poor, vulnerable population, and expanding
the economic role of women; growth and productivity through innovation, diversification,
infrastructure gaps, and trade logistics; governance and institutions; urban green growth; and
disaster preparedness and resilience. To advance on these strategic pillars, LCR is using a
bundled multi-sectoral suite of financial, knowledge, and convening services, tailored to specific
development challenges and working together with TRE, IFC, MIGA, and external partners in
particular IDB and CAF.

LCR has one PforR project in the pipeline (Brazil). The Region has also enhanced its selectivity
by focusing less on: small investment loans that are not part of a bundle of services, processing
fewer DPLs, traditional lengthy reports (Country Economic Memoranda, Investment Climate
Assessments), and federal government lending. In FY14, the Region will increase its focus on:
addressing fragility in Haiti – shifting from reconstruction to support for long-term growth;
operationalizing concepts and tools for shared prosperity that build baseline data and diagnostics,
and statistical capacity. The Region will also strengthen poverty analytics, design ways to track
progress on shared prosperity, and pilot shared prosperity Country Partnership Strategies in select
countries (e.g., Dominican Republic, Mexico, and Paraguay). It will also respond to the growing
economic and financial fragility in the Caribbean as these countries face multiple sources of
vulnerability. Reimbursable Advisory Services (RAS) are an integral part of the strategy
discussions and the Region’s expertise and value added in critical reform areas have been in high
demand. Since FY10, RAS in LCR have grown by more than 20 percent per annum to over $9
million projected for FY13.
50. Middle East and North Africa (MNA):

The Region’s focus will be on creating jobs, especially for youth and women; on increasing
economic and social inclusion for disadvantaged groups through voice and participation; on
strengthening governance through transparency and accountability measures such as participatory
governance and state responsiveness; as well as, on accelerating sustainable growth through
policy actions promoting climate-friendly growth. Taken together these efforts will help to
anchor pluralism in all its facets in the region to achieve the stability needed for poverty reduction
and enhanced shared prosperity.
- 21 -
FY14 BUDGET DOCUMENT

At the program level, in FY13 MNA shifted some $4 million of resources from broad-based
regional analytical work, to country-driven programs and measures to improve portfolio quality.
Uncertainty stemming from security challenges and political volatility remain common and real
in MNA. At the sectoral level, MNA intends to stay engaged on a broad front, both in traditional
sectors such as infrastructure aiming at sustainable growth, as well as in those areas where client
countries are seeking support from the Bank, such as gender, voice, accountability and
governance. MNA is increasing its efforts on data collection and dissemination in client
countries. The Region has been instrumental in leading donor coordination efforts in the
aftermath of the political transition. The Friends of Yemen and their renewed commitments is
one example of promoting development assistance by the International Community. The
Deauville Partnership with Arab Countries in Transition, a partnership involving the G8, the Gulf
countries, Turkey, IFIs and Arab transition countries, created the MNA Transition Fund with the
Bank as a Trustee and host of the Secretariat. The Transition Fund has approved eleven projects
in Egypt, Jordan, Morocco, Tunisia, and Yemen. Libya is also an intended beneficiary of this
fund. MNA leverages funds for its core work program mainly with RAS.
51. South Asia (SAR):

The Region is incrementally focusing on employment for a rapidly growing labor force (that will
double by 2050), regional integration, and growing urbanization. The Region is home to half a
billion poor and in its efforts to reduce poverty, SAR is also focusing on enhanced human
development, social welfare, and resilience to natural disasters.

Regional integration, an area of strategic engagement, will be addressed through the exploration
of regional projects and AAA, supported by small country-specific projects/AAA intended to lead
to policy changes and consensus building. In the Energy sector, SAR will continue preparation of
new lending to improve transmission/distribution infrastructure, and for renewable energy. For
urbanization, the Region will produce analytical work to address knowledge gaps, and continue
outreach to improve awareness of urbanization challenges. Work on gender will be intensified to
focus on gender-based violence while mainstreaming it in operations and CASs. Nutrition
interventions will be mainstreamed in projects, with additional lending to improve nutrition, and
analytical work to address knowledge gaps. SAR has begun to operationalize the Bank’s poverty
and shared prosperity goals, by initiating country benchmarking exercises. The India Country
Partnership Strategy (CPS) was the first to reflect the new goals.
52. Support to countries in Fragile and Conflict-Affected Situations is scaling up significantly: A
significant part of FY14 priority funding will benefit FCS work programs directly in Regions, as well
as through FCS-related investments in IMT and OPCS. As a result, total BB plus reimbursables
direct cost spending for FCS countries is expected to increase to $110-125 million over the planning
period (5-6 percent of total direct cost spending), up from an average of around $95 million in recent
years (4 percent). Incremental FY14 FCS allocations to Regions comprise AFR ($4.5 million), EAP
($3.5 million), LCR ($0.8 million), and MNA ($4.4 million). See Annex C for details on the planned
work program by country. As a part of scaled-up FCS work programs, security is significant – with
- 22 -
FY14 BUDGET DOCUMENT
staff security as a major priority. Senior Management is increasing security-related funding by $2.65
million per annum for the FY14-16 planning period to support Bank staff and work in Iraq, Yemen,
and Libya.
Box 3.1: Disaster Risk Management (DRM)
Natural disasters disproportionately affect the poor and vulnerable and as such are major risk factors to sustainable and
inclusive growth. Most of financial support for natural disasters, however, is provided after they occur, while it is
possible to reduce disaster response costs by making sufficient advance preparations.
To that end, Japan’s Vice Minister of Finance announced at the 2013 Spring Meetings the establishment of a new
knowledge hub in Tokyo as a global center for Disaster Risk Management. This Tokyo DRM Hub will "serve to match
developing countries' needs with Japanese technologies and expertise, and also disseminate knowledge to the world in
cooperation with the World Bank Institute (WBI)". Japan pledged to provide up to $100 million over five years for this
initiative.
In January 2013, Japan, the World Bank and the Secretariat of the Pacific Community also launched the Pacific
Catastrophe Risk Insurance Pilot Program targeting five Pacific island countries (Samoa, the Solomon Islands, Tonga,
Vanuatu, and the Marshall Islands).
- 23 -
FY14 BUDGET DOCUMENT
3.3 NETWORK ANCHORS
53. Network Anchors continue to adjust to budget reductions introduced last year. In FY13, Network
Anchors were subject to a $12 million overall budget cut (equal to 7.7 percent of their total envelope)
to help redeploy funds to corporate priority areas. The proposed total Bank budget for Network
Anchors for FY14 is $147.0 million (in $FY13) (see Table 3.3).
Table 3.3: Network Anchors Indicative Budgets FY13 and FY14 (all sources)
($FY13 million)
FY13 Budget Remap 1
FY13 Budget Plan
External
BB
Funds
All BB after External
Funds remaps
Funds
All
Funds
FY14 Budget Plan
External
BB
Funds
All
Funds
FY14/13
FY14/13
Percentage Percentage
Change 2
BB
Change 2
All Funds
SDN
51.4
168.9
220.3
54.2
156.5
210.6
56.4
151.3
207.7
4.1%
-1.4%
FPD
36.5
40.8
77.3
36.6
36.5
73.1
36.3
45.7
81.9
-0.8%
12.0%
HDN
26
39.7
65.7
26.9
38.2
65.0
26.6
37.5
64.0
-0.9%
-1.5%
PRM
27.3
19.6
46.9
28.9
18.7
47.6
27.8
15.9
43.7
-3.9%
-8.2%
141.2
269.0
410.2
146.6
249.9
396.4
147.0
250.4
397.3
0.2%
0.2%
1/ Budget remap amount include allocations from contingency funds and KLC funds as well as changes in program
responsibilities implemented in FY13
2/ Compares FY13 Budget Remap to FY14 Budget Plan
54. SDN’s proposed FY14 Bank budget of $56.4 million includes $2 million for the Global Tiger
Initiative (GTI) work program,10 which will be managed by SDN from FY14, as well as time-bound
funding of $1.5 million per annum (for two years, approved in the FY14-16 business planning
process) to develop a methodology around Greenhouse Gas Accounting ($1 million), and for its
contributions towards the review and development of Environmental and Safeguards policies ($0.5
million), and $0.4 million for the final year of KLC-funded programs (compared to $1.6 million of
KLC-funded programs in FY13).
55. PRM’s proposed FY14 Bank Budget of $27.8 million is 4 percent lower than prior year ($28.9
million) due to the transfer of $1.1 million from contingency funds to close a one-time gap in its
allocated cross support budget versus its significantly increased cross support to the Regions during
FY13.
10
The GTI program is part of Institutional Programs in FY13, and currently managed by WBI, but will be transferred to SDN
from FY14.
- 24 -
FY14 BUDGET DOCUMENT
Box 3.2: Green House Gas Accounting (GHG) and Environmental Sustainability Indicators
Progress on greenhouse gas accounting and establishing indicators on environmental sustainability is a key focus to
support the cross-cutting priority of sustainability that is a critical component in achieving the Bank’s twin goals on ending
extreme poverty and promoting shared prosperity.
As laid out in the WBG’s Environment Strategy (2012-22), the World Bank will begin conducting GHG accounting for the
energy, forestry and transport sectors where we have agreed methodologies and tools, while continuing to test and develop
approaches for additional activities and sectors.
GHG accounting for investment lending will be phased in starting in July 2013 for thermal generation, hydropower
(excluding pump storage), transmission and distribution, renewable energy and some demand-side energy efficiency
activities as well as for afforestation, reforestation and sustainable forest management activities. The work will continue
over FY15-16 to identify and adapt existing methodologies in the transport and other sectors, and develop new
methodologies where they do not currently exist. A phased roll-out will provide the opportunity to learn-by-doing and
make adjustments to the approach moving forward.
SDN will receive additional funding of $1 million per annum for FY14 and FY15 to develop this methodology and
guidance notes, and to provide training to operational staff on these as they become available that is tailored to sector
needs. This will assist project teams in identifying the right tools and methodologies and applying the key concepts of
GHG accounting appropriately. Technical working groups have already been established in the energy, forestry and
transport sectors to assist project teams in implementing this program. The Climate Policy and Finance department is
coordinating across sectors and with other IFIs to support compliance with harmonized approach to GHG accounting
agreed with IFIs in November 2012. Online support, in the form of an internal GHG accounting website complete with a
help-desk, is also being prepared.
The network is leading the work on identifying quantitative indicators to measure environmental sustainability. The
indicators under discussion include a core indicator: the change in wealth per capita (based on the adjusted net savings
concept developed by the World Bank accounting for population growth) indicating whether enough assets are saved to
sustain the same welfare per-capita levels in the future. It is proposed to complement this with country level indicators on
air, water, land and climate that are all critical for human well-being. These include air pollution, water scarcity
(population share living in overexploited river basins) and deforestation (% loss of forest area), which can help understand
whether natural assets are depleted excessively. In addition, a global carbon emission indicator measures the likelihood and
nature of continued climate change. These will be finalized in the coming months.
In addition, there is increasing effort to understand country-specific sustainability threats including through economic and
environmental accounts at national level. SDN is implementing wealth accounting in a number of countries through
WAVES (Wealth Accounting and Valuation Ecosystem Services). This partnership helps to understand and measure the
sustainability of economic activities considering country-specific conditions (see box 3.3 for more details).
56. External funds are expected to remain fairly constant at $250.4 million in FY14 (FY13 $249.9
million). SDN accounts for the majority of this at about 60 percent, while PRM accounts for only 6
percent. FPD projects a substantial 25 percent increase in external funds in FY14 (to $45.7 million)
as result of successfully mobilizing more donor funds to respond to increased regional demand for
support in the areas of competitive industries, innovation and financial inclusion.
57. The new Network Anchor Accountability Framework has helped Anchors to manage their work
programs, and review their costs and performance. As discussed in last year’s MTBF, while the
Country Benchmark model exists to help size Regional budget allocations, there had been no
established analytical tools to help size the Network Anchor budgets. As a new conceptual
- 25 -
FY14 BUDGET DOCUMENT
methodology, the Accountability Framework is focused on three main work program areas and
responsibilities: (i) provision of operational services to the Regions, (ii) services to global clients and
public goods, and (iii) delivery of their corporate responsibilities. This framework was used to inform
the FY13-15 budget process and to develop Key Performance Indicators (KPIs) for Network
Anchors’ FY13 MOUs, and to monitor progress made against targets. The exercise of developing
this framework has also informed the development of the joint FY14 MOU with the Regions. The
upcoming new Bank strategy, together with work being undertaken on developing a knowledge
results measurement system, will further help to inform future sizing conversations.

During FY13, a new cost reporting tool that captures costs by accountability area at the
business line/department level for each Anchor contributed towards a better understanding of
their cost drivers and helped highlight commonalities and differences in their business
models. Two full years of costing information will be available by the end of FY14, which
would better inform Management to make dynamic selections and prioritize tasks.

Year to date to Q3 FY13,11 43 percent of Anchors’ total costs (all sources) were in support of
Regional and operational activities and 36 percent were in support of global client activities,
while corporate activities accounted for only 1 percent. Other direct and sustaining costs
accounted for 10 percent, and indirect costs for 11 percent (see Table 3.4 for details).

Total costs were 49 percent BB-funded and 45 percent BETF-funded with the remaining 6
percent relating to reimbursables.

By VPU, PRM is the lowest BETF-funded Anchor in terms of overall direct work program
costs (28 percent BETF-funded compared to HDN at 52 percent, SDN at 50 percent, and FPD
at 36 percent).
11
The new report only captures FY13 data as prior year data will need to be re-coded extensively in order to comply with the
unique coding structures of this tool.
- 26 -
FY14 BUDGET DOCUMENT
Table 3.4: Costs by Network Anchor Accountability
($ million)
YTD to Q3 FY13
Regional and Other Operational Units
Talent Management
Strategy Frameworks & Monitoring
Knowledge Generation & Access for Countries/ Regions
and Staff (incl. Innovation)
Operational Support & Quality
General Council and Sector Board Support
Global Clients & Public
Global Knowledge & Influence
Program Secretariat and Resource Mobilization
Corporate Clients
Corporate Quality Advice
Senior Management Information & Positioning
Board/Shareholder Information & Positioning
Corporate Policy Formulation and Implementation
Other Direct Costs
Sustaining costs
All other direct costs
Indirect Costs
Total Network Anchor Accountabilities (including cross
support sales)
Of which Cross Support Sales
Total Network Anchor Accountabilities (excluding cross
support sales)
BETF
% of Share to
Total cost
including Cross
Total
Support
124.4
43%
5.5
2%
2.1
1%
% BETF
funded all
% BETF funded by Anchor
BB
Reimb
64.0
5.1
2.1
6.7
0.0
-
53.7
0.4
0.0
SDN
FPD
HDN
PRM
Total
21%
10%
23%
15%
18%
0%
0%
31.2
1.7
48.9
81.8
28%
17%
24.7
0.9
29.4
25.1
4.3
1.9
0.5
1.0
0.1
0.3
26.3
22.2
4.1
22.0
5.0
9.8
7.2
2.6
0.0
0.0
0.0
0.8
0.7
0.1
-
4.5
65.6
35.2
30.4
1.4
0.6
0.8
10.3
34.2
0.9
104.9
67.5
37.3
1.9
0.5
1.0
0.1
0.3
28.6
23.5
5.1
32.3
12%
0%
36%
23%
13%
1%
0%
0%
0%
0%
10%
8%
2%
11%
143.6
17.4
131.1
292.1
100%
(12.5)
-
-
(12.5)
131.2
17.4
131.1
279.6
5%
2%
3%
1%
2%
0%
22%
12%
10%
0%
0%
0%
0%
0%
0%
0%
0%
4%
50%
36%
52%
28%
45%
24%
22%
26%
11%
0%
0%
0%
0%
0%
2%
0%
0%
58. In their FY14-16 business planning submissions, Network Anchors described how they will be
helping to deliver on the overarching WBG objectives of reducing poverty and boosting shared
prosperity via, for example, strengthening technical, operational and analytical support to FCS;
improving portfolio quality through enhanced sector board oversight; operationalization of targets
through scaled-up data systems and platforms; and contributing to the reform and innovation agenda.
Details on the Anchor’s specific work programs are given below:

Sustainable Development Network (SDN)’s work program in FY14-16 will focus heavily on
mainstreaming inclusive green growth and meeting the call for the Bank to scale up action on
climate. Working with others, SDN will escalate its support to countries on building low carbon
and climate resilient cities, climate smart agriculture and sustainable energy; exploring how best
to catalyze a robust price on carbon; and supporting the removal of fossil fuel subsidies. In
addition, SDN will continue to address the $1 trillion infrastructure gap across urban and rural
landscapes; strengthen the institutional capacity for strategic leadership and oversight of disaster
risk management; and strengthen innovative measurement methodologies including defining
environmental sustainability indicators, implementing Green House Gas emission accounting (see
Box 3.2), and investing in wealth accounting methodologies (see Box 3.3). Working with OPCS,
SDN will support the review and updating of the Bank’s environmental and social safeguards
policies. To accommodate the $5 million budget cut applied during the FY13-15 planning
process, SDN is eliminating its presence in areas such as social resilience clusters and cultural
heritage.
- 27 -
FY14 BUDGET DOCUMENT
Box 3.3: Wealth Accounting and Valuation Ecosystem Services (WAVES)
WAVES is working in five countries to help governments develop indicators to measure the sustainability of their growth.
These indicators will measure total wealth as well as genuine savings. Genuine savings are calculated by subtracting from
gross savings the consumption of manufactured capital, damages from pollution and depletion of energy, forests and
minerals. It adds investments in human capital to this figure, providing a comprehensive picture of changes in wealth to
identify whether a country is on the path to sustained growth. In addition, the WAVES team is working with PRM to help
countries in Africa that are benefiting from the commodity boom to develop indicators that will help them understand how
much rent they are recovering from mineral extraction, and how to better manage this revenue.

Financial and Private Sector Development (FPD)’s main areas of engagement over FY14-16
will be ensuring stability by helping clients prepare for and better manage economic and financial
crises; expanding programs of financial inclusion; and spurring private sector investments and
growth to increase jobs and competitiveness. FPD will continue to provide non-lending technical
assistance to support the continued growth of private sector and monitoring of financial sector
risks. FPD’s contributions towards the operationalization of targets will also involve the
expanded collection of data in such areas as remittances, women in business, and financial
inclusion indicators. FPD has addressed its $2.9 million budget cut in FY13 by managing
variable costs, delaying replacements of staff, increasing cross-support and mobilizing external
funding.

A focus area for the Human Development Network (HDN) in FY14-16 will be helping the Bank
operationalize its poverty goals via a systems-based, multi-sectoral approach, fostering results
and evidence-based policies and programs, and supported by knowledge sharing and learning
programs. In response to the $2.4 million FY13 budget cut, HDN has consolidated and
streamlined projects in its Social Protection unit to focus on two main data activities: SPARCS
(Social Protection Assessment of Results an Country Systems) and ASPIRE (Atlas of Social
Protection – Indicators for Resilience and Equity). In Education, the VPU is shifting from
generating policy tools to analysis and implementation, including the operationalization of
SABER (Systems Approach for Better Education Results); while in Health, Nutrition and
Population, it is focusing resources on accelerating progress towards MDGs by 2015.

The Poverty Reduction and Economic Management Network (PRM) aims to continue to
advance evidence-based policy making at the country level through the development of analytical
approaches, tools, and data platforms that support the operationalization of targets. For example,
the Business Diagnostics and Dynamics tool (BUDDY) will help analyze the links between
business growth productivity, investment and job creation and to facilitate the formulation of
desired policy reforms in support of shared prosperity. Other core focus areas include
knowledge management services and training, and supporting corporate wide efforts on the G20
and post-2015 MDG agenda. Following the FY12 claw back of $1.6 million for the Stolen
Assets Recovery program (and its transfer to FPD) as well as the $1.7 million budget cut applied
from FY13, PRM has made a concerted and successful effort to increase its cross-support sales to
Regions, and has also undertaken structural changes including right-sizing of some managerial
- 28 -
FY14 BUDGET DOCUMENT
functions and integrating its Economic Policy and Trade departments into one.
3.4 OTHER OPERATIONAL UNITS
59. While the proposed FY14 envelope largely confirms the FY13 reduction of $12 million for Network
Anchors, WBI and DEC have been allocated additional funds in this year’s business planning process
to support their roles in operationalizing poverty goals and fostering front-line innovation.
60. The World Bank Institute (WBI) has experienced successive budget reductions over the past years in
light of its strategic reorientation, and again as part of FY13 reductions for Network Anchors, DEC
and WBI, but will receive additional funding in FY14 to support its role in helping operationalize new
strategic directions. In FY13, WBI was subject to an overall budget cut of $0.99 million (2 percent of
its budget envelope) to help redeploy funds to corporate priority areas. WBI’s FY14 budget of $51.1
million includes $1 million (for two years) approved last year to support the scaling up of the
Mapping for Results initiative into areas such as incorporating beneficiary feedback mechanisms, and
new funding of $3.0 million (for three years) for the new Innovation Fund, which is a key component
of the ongoing reform agenda aimed at developing and strengthening the innovation eco-system
within the World Bank Group. WBI will be funding the cost of managing and developing this
Innovation Fund from internal budget redeployments, with the additional $3 million being transferred
to projects in the Regions. Other focus areas of WBI’s work program include technology-enabled
citizen feedback, which is being mainstreamed throughout Bank operations, and scaling up E-Institute
to become a global virtual learning platform.
61. Development Economics (DEC) has been on continuous downward budget trajectory for the past
several years as well, but will see an increase in FY14 to fund significant data work on the new
poverty and prosperity goals. In FY13, DEC was subject to an overall budget reduction of $1 million
(2 percent of its budget envelope). DEC’s FY14 budget of $50.0 million includes $1.6 million (for
two years) approved last year for data curation, capacity building, and tools promoting open
knowledge, as well as new funding of $1.0 million (for three years) to support operationalization of
WBG goals. The corporate emphasis on ending extreme poverty and promoting shared prosperity
places DEC at the forefront of the Bank’s efforts to develop and operationalize relevant targets.
DEC’s work on operationalization of the poverty goals will include expanding programs of research
and monitoring, wholesaling analytical tools, and enhancing data collection and statistical capacity
building.
62. Operations Policy and Country Services (OPCS)’ work program is structured on the following
themes: (i) simplifying policies & procedures and strengthening operational support for quality, (ii)
strengthening operational risk management, (iii) enhancing knowledge management, and (iv)
improving the way the Bank does business in countries in fragile and conflict situations.
- 29 -
FY14 BUDGET DOCUMENT
63. OPCS’ FY14 budget of $46.0 million includes $4.1 million in new funding to build on key business
modernization reforms to date,12 and help prepare the ground for further change management efforts.
OPCS is targeting the following initiatives over the FY14-16 period: completing phase 2 of the
procurement review and continuing the review of the Bank’s safeguards in operations; increasing the
support to FCS in Regions by building a surge capacity of skills housed in the Nairobi hub, and
providing a central coordination function for the Bank’s Science of Delivery work. The $1.5 million
funding for the Nairobi FCS hub in particular builds on a previous resource allocation for FY12-14
which was used to establish the hub, while the $0.1 million allocation is contribution to a
coordination role for Science of Delivery, linked to OPCS' existing knowledge work program.
3.5 FINANCE, ADMINISTRATIVE AND CORPORATE UNITS
64. Finance, Administrative, and Corporate (FAC) units are subject to a 2 percent flexibility tax in
FY14. This reduction is offset for some FACs (particularly IMT) by new funding for corporate
priorities. Given the large number of FAC units, this work program summary focuses on the largest
among them: GSD, HRS, IMT, CTR, and TRE. Together, these units account for about two-thirds of
the total FAC budget. Additionally, some of these units are slated to receive FY14 allocations to
support investments in priority areas (e.g., IT connectivity), and will undergo significant
organizational changes (i.e., to achieve WBG integration).
Box 3.4: One World Bank Group - Integration of Corporate Support Functions
In a technical briefing on April 26, Management provided the Board with an update on the integration of corporate
support functions – reviewing integration principles and implementation organization, budget and timeline to create
one WBG Integrated Services Group (WBGIS) hosted in the World Bank. Three new VPUs will be created inside this
entity, with a go live date of July 1 for the merged Information and Technology Solutions (ITS) and External and
Corporate Relations (ECR), to be followed by WBG Human Resources (HR), effective as of October 1 (with staff
reassignments to be reflected in the system on January 1, 2014).
Discussion with Executive Directors highlighted the importance of

ensuring efficiencies and cost savings over the long term (while not the main driver and immediate result);

measuring performance and benchmarking based on current Bank/IFC/MIGA baselines of service delivery/costs
(enabling greater effectiveness and budget sizing for these units in the future);

engaging affected staff and stakeholders (to smooth transition and minimize concerns);

addressing risks in the new WBGIS (related to HR and IT management, as well as business continuity);

building a WBG Brand (positioning the Group as more than the sum of its parts, especially to support the forthcoming
WBG Strategy) while protecting important business-driven differences; and

clarifying Service Level Agreements (SLAs) to ensure continuity and improvement of service – which will build on
several recommendations made by IAD during a recent audit of the WBG’s shared services.
12
Work program highlights in the past year include: completing the Investment Lending policy reform, introducing a new
quality assurance framework, completing the first phase of the procurement review, launching programmatic AAA, increasing
the percentage of knowledge products managed through the Operations Portal, increasing the leverage of the Nairobi hub, hosting
the MIC forum twice during the year, and delivering the first stages of change management for the new accountability and
decision making framework. See Annex A for more details on modernization reforms to date.
- 30 -
FY14 BUDGET DOCUMENT
65. The General Services Department (GSD)’s FY14 budget (excluding reimbursable and fee income) is
$116.0 million including new funding of $0.9 million to cover costs associated with the Institutional
Space Realignment Project (ISRP) at HQ which will release leased office space starting in FY15;
$0.15 million (for three years) for increased cost in security; and $4.34 million transferred as base
budget (starting in FY14) from the Regions to cover centralization of Regional and Country Security
Advisors (RSA/CSAs) costs.
66. GSD is one of the largest FAC units and has been on a declining trajectory for the past several years
excluding work program transfers across Units. In addition to the 2 percent flexibility tax applied to
FACs, the Unit has been given annual functional resizing cuts going through FY15: with reductions
of $3 million in FY13 and another $1 million in FY14 and FY15, respectively, to incentivize
efficiencies on facilities/space (e.g., to give up leased space). GSD’s FY14 budget will decline by 2.3
percent in real terms compared to the FY13 base budget excluding work program transfers across
Units (i.e., centralization of RSA/CSAs) and similarly 2.8 percent from FY12 to FY13.
67. GSD is already the primary provider of the bulk of support services for all three organizations –
IBRD, MIGA and IFC – including Security, Procurement, Country Office Facilities construction,
Fitness Center, Child Care Centers, Travel and Visa services, Food & Conference services, Mail and
Shipping, Printing and Graphics, Parking, and Translation/Interpretation. Therefore, it is minimally
affected in the WBG integration of corporate services currently underway.
68. Significant initiatives GSD will be undertaking in FY14-16 include:

Institutional Space Realignment Project (ISRP): As part of the institutional mandate to redeploy
resources to key priority areas on the front line, GSD has developed an extensive space
realignment plan at HQ with the objective of reducing leased space in the U-building and the IFC
Building in a phased manner. The project is expected to generate potential lease savings of
approximately $2.8 million in FY15, and $4.3 million from FY16 onward. The project will take
18-20 months to complete (it started in FY13) at a cost of approximately $10 million in capital
and $2 million in administrative budget. The project is expected to be completed by end-FY14.

New IT Data Center: The Bank’s downtown data center (DC2), which hosts critical computing
infrastructure and business applications for IBRD, is located in the Bank’s only remaining facility
located in the H-building, which is now leased to the US Federal Government on a 10 year term
at $22 million per annum until George Washington University exercises its repurchase option in
2022 (see HQ Real Estate Strategy approved by the Board in June 2008). Given this timeline and
the significance of various associated risks, GSD and IMT have been exploring options for the
replacement of DC2 in a Bank-owned facility away from the HQ campus. GSD has identified
potential green field sites that would meet the Bank’s requirements and is currently in acquisition
negotiations. The proposed new data center will consolidate the existing DC2, IFC and TRE data
centers. The purchase and fit-out of the building is expected to cost $30 million in capital over
FY13-15.

Increased efficiencies in work program delivery: including review of travel expenditures and
operations, further real estate savings opportunities, and potential for a new corporate
- 31 -
FY14 BUDGET DOCUMENT
framework to help set and monitor fees for STCs, with a view toward generating cost efficiencies
and improved contracts.
69. Human Resources (HRS)’ FY14 budget of $61.4 million includes new funding of

$0.7 million (and $0.4 million in FY15) for external expertise needed for the compensation and
benefit reviews;

$0.5 million (and $0.2 million and $0.3 million in FY15-FY16 respectively) for HR Systems
Renewal, including the PeopleSoft system upgrade project; and

$0.2 million (for FY15 as well) for WBG HRS integration support.
70. The VPU’s FY14 budget (excluding work program transfers across units) decline by 1.4 percent in
real terms compared to FY13, with additional funding support for systems renewal, compensation
and benefits, and global mobility support for staff relocating to country offices offset by Productivity
Taxes.
71. HR is an integral part of the change agenda of the WBG and is directly supporting two of the five
priority areas under the Corporate Strategy review: Leadership, People and Talent, and Global
Footprint. HR-related recommendations from all of the change teams are expected to build on the
ongoing modernization efforts and align to the four broad areas of strategic focus previously
discussed and agreed with Senior Management and the Board’s HR Committee, pending further
strategy development and resource prioritization in FY14:

Leadership & Management Effectiveness: Develop and implement a foundation curriculum and
programs to ensure managers and leaders have the competencies and skills to deliver business
results through effective people management.

Performance Excellence: Implement a new performance management framework from FY14,
incorporating best practices to ensure organizational alignment with the Bank’s strategic
objectives and establish a clear spine of accountability within the organization, anchored on clear
objectives set at the beginning of the performance review period as the basis for ongoing
feedback throughout the year and for the year-end assessment.

Competitive Employment Value Proposition: Ensure the continued attractiveness of the Bank as
an employer, utilizing findings from FY13 benefits reviews (e.g., Staff Retirement Plan, mobility)
to inform decisions and follow-up actions; and further modernize the total compensation
proposition (including rebalancing the pay mix and salary grade structure where applicable) to
increase flexibility and differentiation in rewarding performance.

Talent Management: Continue to implement a consistent corporate framework for talent
management, including alignment with a strategic staffing process that enables the business to
identify, develop and deploy diverse talent based on more systematic reviews of skills supply and
demand.
- 32 -
FY14 BUDGET DOCUMENT
72. Building on the synergies developed over the past several years, the integrated WBG HR organization
will be effective October 1, 2013. Work is underway to define FY14 work programs and priorities,
and to identify where each of the respective functions has been successful to inform the process of
bringing the best of both the Bank and IFC HR functions together. A key objective of the integration,
especially during the transition period, is to retain or improve current service levels, and increase
efficiency by harmonizing and standardizing processes where useful to the business.
73. Information Management and Technology (IMT)’s FY14 budget (including Finance CIO Office) of
$183.4 million includes:

new funding of $16.8 million, encompassing $15.5 million for the IT reform agenda through new
investments that can improve functionality and connectivity and $1 million for additional IT
support to Fragile States;

$5.6 million mainly for the delivery of the FY14-16 Annual Investment Plan which will be
funded through the recovery of staff costs capitalized from units; and

$1.6 million per annum for FY14-16 from the Knowledge and Learning Council (KLC) to fund
the operating and maintenance costs of Jive and SharePoint, two social and team collaboration
platforms.
74. IMT’s budget grew over the past two years (16.5 percent per annum), excluding the impact of work
program and staff transfers across units (i.e., centralization of Basic IT services, depreciation, and IT
Staff). The increase was mainly driven by a fast growing capital investment program (approximately
$227 million for FY14-16), which has increased by over 60 percent between FY12 and FY14 and
more than tripled since FY10 to support the implementation of IMT’s FY11-13 strategy focused on
modernizing business capabilities, promoting information transparency and access, and delivering
global mobile solutions. The steady growth in capital investments increased supplemental
administrative budget associated with capital (e.g., operating and maintenance costs). IMT’s budget
trajectory was flat from FY08 to FY11 with incremental funding for the delivery of the growing
investment program offset by productivity tax and annual resizing cuts.
75. IMT is developing a new FY14-16 strategy that will support the evolving needs of the institution and
the forthcoming WBG Strategy. The key focus of the new strategy will be to improve technology
productivity and support the Bank’s focus on ‘Science of delivery’, including (i) enhancing
knowledge management capabilities by leveraging social media and analytics, and digitization of
historical data; (ii) improving frontline productivity through improved access to Bank core systems
and through new devices; and (iii) upgrading key IT platforms that are outdated and not able to keep
pace with business demand.
76. As noted earlier, a major initiative underway is the creation of a new WBG Information and
Technology function that will integrate IMT and IFC’s Corporate Business Technologies (CBT) unit
by July 1, 2013. With Human Resources (HR) and External and Corporate Relations (ECR), the
integrated WBG Information and Technology function (ITS) will be part of a new WBG entity,
World Bank Group Integrated Services (WBGIS) that will deepen WBG synergies, provide critical
services across the WBG, and support the forthcoming WBG Strategy. Savings and synergies
- 33 -
FY14 BUDGET DOCUMENT
opportunities expected from the IT integration include quick wins such as a common e-mail system, a
Group-wide enterprise desktop management service, consolidated mobile device development and
support teams, a common environment and management for storage services, and the elimination of
duplicate phone systems and bandwidth in country offices. More significant savings are expected in
the medium term, particularly as a result of the use of the cloud.
77. Significant initiatives IMT will be undertaking in FY14-16 include:

Bandwidth for Improved connectivity with country offices: Acquiring additional bandwidth
capacity will provide enhanced support to the WBG’s decentralized global workforce by
allowing: (i) calls to be made anytime, anywhere, on Bank owned and private devices; (ii)
improved client communication and collaboration; and (iii) flexible scheduling with ample
capacity. This initiative also provides high speed connectivity for secondary/backup office links
in all Fragile and Conflict-affected States Country Offices.

Corporate “Drop Box:” This service will be the WBG’s first major cloud-based initiative, in
which IMT will construct a secure virtual private data center anchored in 4 geographic regions
where staff can access operational data in a location agnostic and high performance manner while
remaining compliant with WBG Information Security Policy.

New E-mail System: This will replace the 15-year old Lotus Notes with the best Enterprise-Grade
“anchor vendor” for email. Replacing Notes would: 1) improve the messaging service through
seamless integration into a new Information Workplace and other desktop collaboration tools; 2)
enhance staff’s email experience by increasing mailbox capabilities and performance; 3) reduce
the Bank’s reliance on in-house customization by relying on products offered to and by the
market’s leading messaging platform.
78. Treasury (TRE)’s FY14 Bank budget of $28.1 million includes new funding of $1.55 million per
annum to fund work program cost pressures for Collateral Management Agent services ($1.1 million
per annum), and Regulatory Reform and Changing Market Practices ($0.35 million per annum); and
innovation work on intermediation of Catastrophe Bond products ($0.1 million per annum). FY14
funding decisions will pull up the trajectory, with a projected growth of 3.6 percent from FY13 to
FY14, 71 percent of which is due to a new collateral management contract as explained below.
79. The Bank’s Collateral Management contract came to an end in FY13 after nine years, and the
preliminary offers in the request for proposals (RFP) process indicate a much higher fee than current
costs (the Bank is currently negotiating with the vendor the final cost of the new contract).
Additionally, TRE anticipates significant demand for legal services in FY14 following the effects of
regulatory reforms, requiring extensive work on legal agreements with counterparts; both events have
resulted in unbudgeted cost pressures. Issuing Catastrophe Bonds will enable operational innovation
for poverty reduction, thereby bringing down transaction costs, and attracting demand from at least
two or three external clients over the next several years.
80. TRE’s FY14 reimbursable budget compared to that of FY13 includes, subject to further review,
additional funding of $1.9 million, specifically from growth in services provided under the Reserves
- 34 -
FY14 BUDGET DOCUMENT
and Advisory Management Program (RAMP), as a result of the program’s expansion strategy
endorsed by the Board in January 2013.
81. Significant work program initiatives in FY14-16 include:

Scale up of asset management advisory for central banks, sovereign wealth and pension funds. In
addition to four clients that joined during the second half of FY13, several new clients are
expected to join the program in FY14. TRE recently received the Board’s reaffirmation of the
core principles of the program, support for the new three-tier client progression framework going
forward, as well as approval of the General Investment Management Authority for RAMP related
investments. The Board also reaffirmed that RAMP should be operated on a cost recovery
framework at the program level and that management is responsible for ensuring that RAMP
client fees are dedicated to the purposes for which they were intended. Additionally, a major
initiative of RAMP in the next couple of years will be the roll out of the Portfolio Analytics Tool
(PAT2) to existing clients.

IT Capital Investment Program: In FY13, as part of the Financial System Renewal Program,
TRE put together a three-year program to increase focus on reducing operational risk through
automation and system enhancements to keep pace with the evolving external environment and to
strengthen its critical functions. Most of these new tools and system improvements are being
funded by capital budget. Major projects being undertaken include Cash Systems Renewal, and
Quantitative Risk Analytics (QRA) Systems Renewal.
82. Controller’s (CTR)’s FY14 budget of $36.1 million includes new funding of $0.3 million to cover
costs related to managing the Staff Retirement Plan (SRP) Tax Supplement. Since the Bank started to
make monthly annuity payments to Net Plan retirees, it was projected that the administration of the
annuity pension tax supplement would require additional budget to cover additional resources and
outside tax advice to support the increase in Net Plan retirees receiving monthly pension payments.
CTR has, to date, absorbed the additional cost within existing resources, but could not continue to do
so with a declining trajectory.
83. CTR’s budget is projected to increase by 0.6 percent from FY13 to FY14; but would remain flat
thereafter. FY14 funding considerations plus unit budget transfers are expected to stabilize CTR’s
budget trajectory.
84. Significant work program initiatives CTR will be undertaking in FY14 include:

Electronic global banking: CTR plans to conduct a RFP process for a global banking solution,
where a global bank (or two) will be sought to provide fully integrated electronic banking
globally. This will start with Global Payroll in PeopleSoft (PS9.1), shortly after the
implementation of PS9.1, and will later be leveraged for vendor payments. Target completion is
anticipated for the fourth quarter of FY14.

Credit Cards for country office (CO) travelling staff: The Diners contract for HQ has expired and
is on a single year extension for two years while the service is being re-bid. The new bidding
process will determine whether a single card can provide global coverage or a few card providers
- 35 -
FY14 BUDGET DOCUMENT
would be necessary for all Bank locations. The travel advance/expense charge card option for CO
staff has been successfully piloted in various locations. CTR will finalize the procurement of the
new card(s), as the benefits are expected to be high.

Continued focus on eBusiness (including e-disbursements initiative for loan disbursements, and
e-invoicing for borrower billings): eBusiness is a core part of the strategic business priorities for
the Bank’s Finance complex and cuts across all its units (and beyond, with their linkages to
Operations). This multi-year effort will allow CTR and Finance to better and more consistently
meet the needs of their external clients, and collaborate with partners in a secure and more
efficient way through the use of a new platform based on modern tools and technology with a
focus on disintermediation, self-service, information analytics, and technology-enabled
transactions.

Other initiatives include: Travel System Upgrade; increased automation in accounts payable
processing and financial statement reporting; and supporting changes necessitated by HR Policy
simplifications.
- 36 -
FY14 BUDGET DOCUMENT
4. FY14 BUDGET FRAMEWORK
This section presents the specifics of the FY14 Administrative Budget Proposal, including information on
allocations by priority areas and unit-type, and discusses below-the-line budget items, external sources of
funds, as well as the price factor and the capital budget plan for the coming year.
4.1 ADMINISTRATIVE BUDGET PROPOSAL AND EXPECTED EXTERNAL FUNDING
85. The main challenges facing the World Bank in FY14 are to 1) complete the strategic reform
exercise; 2) invest in initiatives that support emerging priorities in a manner that is consistent with,
and supportive of, the developing strategy; and 3) implement ongoing work programs. The
rationale for and details of this approach are addressed in the first three sections of this paper.
86. To meet these challenges, Management proposes a real increase in the net administrative budget of
$45.1 million. This increase is a result of the temporary reallocation of grant-making resources from
below-the-line to above the line.13 The total administrative budget is not affected by this reallocation.
In nominal terms, the net administrative budget would increase by around $75.5 million (4.0 percent)
after application of the Board-approved price factor methodology. Table 4.1 summarizes the main
Table 4.1: FY13/14 Budget and Total Funds Summary
($million)
Net Admin Budget
Net Admi n Budget (FY13$s ) 1
FY14 Pri ce i ncrea s e
Memo: Board-approved expenditure range
Budget for Boa rds , SEC, IEG (FY13$s )
FY14 Pri ce Increa s e for Boa rds , SEC, IEG
Remap4
FY14/13
FY14
FY14/13
Percentage
Budget
5
Plan Difference
Change5
1,870.8
1,871.2
1,916.3
45.1
30.5
30.5
75.5
4.0%
-0.4
-0.4%
Gra nt Fa ci l i ties (DGF, SPF, IDF, GPSA, CGIAR)
Total Admin Budget
Sum of NAB and below-the-line items (Nominal $s)
External Funds
Ba nk-Executed Trus t Funds (Nomi na l $s )
Total Rei mburs a bl es (Nomi na l $s )
Total Admin Budget and External Funds (Nominal $s)
1,871.2
1,946.7
+/-2%
+/-2%
+/-2%
110.1
109.8
109.4
1.7
1.7
357.9
357.9
375.6
17.7
4.9%
161.0
161.0
115.2
-45.8
-28.5%
2,499.7
2,499.9
2,548.4
48.6
1.9%
660.2
652.9
661.1
8.2
1.3%
353.4
359.1
407.0
47.9
13.3%
3,513.3
3,511.8
3,616.5
104.7
3.0%
1/
The FY14 Budget includes a reallocation of $45.8 million from Grant Facilities to Net Admin Budget ($45.1 million in $FY13)
2/
The Price Increase for FY14 is 1.59% which is the corporate rate across all units.
3/
The Price Increase for FY14 is an estimate. The actual Price Increase will be based on decisions of the Joint Committee on Remuneration and
approved by the Board of Governors.
4/
5/
13
Budget remap amounts include allocations from contingency funds as well as changes in program responsibilities implemented in FY13
Compares
FY132.3
Budget
FY14 Budget
See
sections
and Remap
4.4 fortomore
details.Plan
- 37 -
2.4%
1,870.8
3
Contri bution to Staff Retirement Accounts
Total Funds
FY13
Budget
2
Net Admin Budget (Nominal $s)
Below-the-line items
FY13
Budget
Plan
FY14 BUDGET DOCUMENT
components of the proposed budget. Unit and program resource envelopes are set out in Annex E.
87. Taking into account “below-the-line” items, the total administrative budget will increase in
nominal terms by 1.9 percent ($48.6 million) to $2,548.4 million. This increase is mainly due to the
FY14 price increase and an increase in pension contributions. Including reimbursables and BankExecuted Trust Funds, total funds are projected to grow by 3.0 percent to $3,616.5 million.
Box 4.1: Presentation of Bank Resources in the Budget Document
The Board approves the net administrative budget for the IBRD/IDA work program, i.e., the portion of the
Bank’s work program funded by IBRD and IDA resources (see QBRR Chapter 4 on Resources, Annex 1 for more
details on IBRD/IDA budget and expenditures – including definitions of “above-the-line” and “below-the line”).
However, the Bank also receives resources from two other sources:
Reimbursables are revenues generated when the Bank provides operational and/or administrative services to
external organizations and/or parties (such as staff), or shares administrative costs through negotiated cost-sharing
arrangements. The term reimbursables includes, against the category ‘Operational Reimbursables’, income from
Reimbursable Advisory Services (RAS), TRE’s Asset Management Program (RAMP), as well as fee income
received by the Bank for administering Trust Funds. The Bank also receives ‘Non-Operational’ reimbursements
for services provided to IFC and MIGA, rent from HQ real estate, for services to staff (e.g., personal trip or
personal phone call reimbursements, parking, fitness center, child care) amongst others.
Trust Funds are donor contributions held and accounted for separately from WBG assets. The World Bank
categorizes Trust Funds into two groups, IBRD/IDA Trust Funds and Financial Intermediary Funds. IBRD/IDA
Trust Funds, where the Bank plays an implementing role, can be used in the form of Recipient-Executed Trust
Funds (RETFs) or Bank-Executed Trust Funds (BETFs). BETFs complement the Bank’s administrative budget to
deliver knowledge services, lending and supervision (primarily of RETFs), and administrative costs of managing
Trust Funds. BETFs are administered in accordance with the provisions of the Bank’s Administrative Manual,
which also applies to the Bank’s administrative budget.
4.2 BUDGET ALLOCATIONS AND USE OF CORPORATE BUDGET FLEXIBILITY
88. As discussed in the MTBF paper, given the significance of the strategic review underway,
Management proposed that the focus of the FY14 business and budget planning process should be
to support emerging priorities and work programs consistent with the developing strategy, while
avoiding any undue interruption of ongoing work program implementation ahead of implementation
of the new framework.
89. The starting point of this year’s budget allocation process was corporate budget flexibility of $20.0
million, subsequently revised to $20.7 million. FY14 funding requirements significantly exceeded
the available flexibility. As one objective was not to cut operational units in FY14, additional
sources were identified to increase budget flexibility. The main source identified was a temporary
reallocation of $45.1 million from the grant-making facilities. An additional redeployment of $4.2
- 38 -
FY14 BUDGET DOCUMENT
million (of which $3.2 million from no new KLC funding commitments14 and $1.0 million from
ending the pilot of a Regional set-aside related to the subnational initiative) increased the total
available budget flexibility to $70 million. Of this amount, $10 million will be set aside in a strategic
priorities contingency fund to be allocated during the FY and $60 million allocated to specific priority
areas, as listed below. See Section 2 for a more detailed description and examples of activities to be
funded under these allocation priorities. Also, see Annex F for a list of all initiatives to be funded.
Table 4.2: FY14 Sources and Uses
($FY13 million)
Sources
Amount
Rea l l oca tion from Gra nt-Ma ki ng Fa ci l i ties to Net Admi ni s tra tive Budget
45.1
Corpora te Budget Fl exi bi l i ty (i ncl udi ng Corpora te Contingency)
20.7
Addi tiona l Redepl oyments
1
4.2
Total
70.0
Funded Priority Areas (Uses)
Final Allocations
Support to FCS
IT - Reform Agenda
15.7
2
15.5
Opera tiona l i zi ng Poverty Ta rgets
8.1
Front-l i ne Innova tion
3.0
Contingency
10.0
Cha nge Agenda
7.6
Moderni za tion
4.7
On-goi ng Bus i nes s Cos t Pres s ures
5.4
Total
70.0
1/
Ending of time-bound pilot of regional set-aside related to subnational initiative ($1m); no funding
for new KLC commitments ($3.2m).
2/
Net of $5 million due to capitalization of staff costs related to IT investment. A shift in the
threshold for the capitalization of staff time will result in $5 million in cost previously charged to the
net administrative budget being capitalized and expensed through depreciation over the life of the
relevant assets.
14
The KLC FY14 budget trajectory was originally set at $7.2 million during the FY13-15 business planning process. Several of
the main initiatives funded by the KLC will receive their last year of committed funding in FY13 (for example, the first three
knowledge platforms launched in FY11, and seven GETs). As such, $3.2 million of the $7.2 million has been released and
reallocated to fund other corporate priorities during FY14, increasing to $5.1 million in FY15 and $5.1 million in FY16. With
the KLC no longer in operation, the remaining committed funds for FY14-16 have been allocated directly to the relevant units
carrying out the work (FY14 $3.9 million, FY15 $2.1 million, FY15 $2.1 million). The day to day oversight and governance of
knowledge activities is being carried out by the Knowledge and Learning department in OPCS (OPSKL) and strategic oversight
now rests with the monthly "ABCD" meeting chaired by the Managing Director for Regions and Anchors, which includes the
Vice Presidents of Regions and Networks, and which dedicates a meeting each quarter to knowledge services.
- 39 -
FY14 BUDGET DOCUMENT
4.3 BUDGET ALLOCATIONS BY UNIT TYPE
90. The “all unit” budget envelope will increase by $44.4 million compared to FY13. This difference is
mainly due to the temporary reallocation from the grant-making facilities.15 The Finance
Administrative and Corporate units will grow by $23.8 million, the bulk of which is related to
improving the IT infrastructure, especially for operations and FCS, and funding early priorities of the
Change Agenda. The Regions will receive additional funding of $16.2 million, to directly strengthen
FCS support and for operationalization of poverty targets. Funding for other Operational Units will
increase by $3.9 million and the Network Anchors envelope will increase by $0.4 million.
Table 4.3: Change in the Bank Budget Plan by Unit Type
($FY13 million)
Regions1
Network Anchors
Other Operational Units
FACs
All Units
2
FY13
Bank Budget
Plan
FY13
Bank Budget
1,135.4
1,136.1
1,152.3
16.2
1.4%
141.2
146.6
147.0
0.4
0.3%
147.4
143.2
147.1
3.9
2.7%
548.8
556.2
580.0
23.8
4.3%
1,972.8
1,982.0
2,026.4
44.4
2.2%
3
Remap
FY14
Bank Budget
Plan
FY14/13
Difference4
FY14/13
Percentage
Change
4
1/
Includes Corporate Contingency and Corporate Priorities Funding for Regions
Includes DEC, OPS and WBI as well as KLC funding (FY13 Bank Budget Plan, $7.2m, FY13 Bank Budget Remap, $0.4m)
3/
Budget remap amounts include allocations from contingency funds and KLC funds as well as changes in program
responsibilities implemented in FY13
4/
Compares FY13 Bank Budget Remap to FY14 Bank Budget Plan
2/
91. The total external funds, which consist of Bank Executed Trust Funds (BETFs) and
reimbursables, are projected to remain fairly stable compared to FY13. The regional units project
an increase of approximately $10.4 million. The Other Operational Units expect a decrease of 1.9
percent, while Network Anchors and FACs are projected to remain relatively stable.16
15
16
The remainder is due to changes in the centrally managed accounts.
See section 4.5 for more details on external funds.
- 40 -
FY14 BUDGET DOCUMENT
Table 4.4: Change External Funds by Unit Type
($FY13 million)
FY13
FY13
FY14
External
Funds
External Funds
External
Funds
Plan
Remap2
Regions
FY14/13
Difference3
FY14/13
Percentage
Change3
441.4
449.6
459.9
10.4
2.3%
269.0
249.9
250.4
0.5
0.2%
56.4
63.3
62.1
-1.2
-1.9%
FACs
183.4
182.0
182.6
0.6
0.3%
All Units
950.2
944.7
955.0
10.3
1.1%
Network Anchors
Other Operational Units
1
1/
Includes DEC, OPS and WBI
Budget remap amounts include allocations from contingency funds and changes in program responsibilities
implemented in FY13
3/
Compares FY13 Bank Budget Remap to FY14 Bank Budget Plan
2/
92. All funds available to the units are projected to increase by approximately $54.6 million. The
Regional and the Finance, Administrative and Corporate units are projected to increase by $26.6 and
$24.4 million respectively. For the Regional units this increase is due to an increase in Bank budget
funding as well as an increase in external funding. For the Finance, Administrative and Corporate
Units this increase is entirely due to an increase in bank budget.
Table 4.5: Change All Funds by Unit Type
($FY13 million)
Regions1
Network Anchors
Other Operational Units
2
FACs
All Units
FY13
All Funds
Plan
FY13
All Funds
1,576.8
1,585.6
1,612.2
26.6
1.7%
410.2
396.4
397.4
0.9
0.2%
203.8
206.5
209.2
2.7
1.3%
732.3
738.2
762.6
24.4
3.3%
2,923.1
2,926.8
2,981.4
54.6
1.9%
3
Remap
FY14
All Funds
Plan
FY14/13
Difference4
FY14/13
Percentage
Change
4
1/
Includes Corporate Contingency and Corporate Priorities Funding for Regions
Includes DEC, OPS and WBI as well as KLC funding (FY13 Bank Budget Plan, $7.2m, FY13 Bank Budget Remap, $0.4m)
3/
Budget remap amounts include allocations from contingency funds and KLC funds as well changes in program
responsibilities implemented in FY13
4/
Compares FY13 Bank Budget Remap to FY14 Bank Budget Plan
2/
4.4 BUDGET NON-UNIT SPECIFIC ACCOUNTS AND BELOW-THE-LINE ITEMS
Centrally Managed Accounts
93. In addition to unit-specific budgets, the net administrative budget includes several centrallymanaged accounts that consolidate expenses not easily attributed to specific units and institutional
- 41 -
FY14 BUDGET DOCUMENT
programs for which Management maintains discretion over the budget – e.g., Voice Secondment
program (see Table 4.6 for details).
94. The Staff Separation Fund will grow by $0.4 million, or 3.7 percent.
95. Funding for Institutional Programs will decline by $1.3 million, or 4.6 percent. This decrease is
mainly due to (a) reallocation of funds for Regional Subnational Lending to other corporate priorities,
(b) mainstreaming of the Global Tiger Initiative within SDN, and (c) mapping of the Foreign
Exchange contingency to CFR-Managed Programs.
96. The net recovery for Centrally-Managed Overhead and Benefits17 is expected to increase by $12.4
million, or 8.0 percent. This growth is mainly due to (a) increased benefits recovery from units, (b)
higher TF fee income and (c) capitalization of staff costs. While IT depreciation is expected to grow
by $7.8 million in FY14, expenditures for other centrally-managed overhead and benefits are
projected to remain the same.
97. The net recovery from the HQ Real Estate strategy, a separate reporting line item since FY10, is
forecast to decrease by $0.4 million, or 9.9 percent.
98. Non-Allocated Savings associated with TF fee income and fee-based services have been mapped to
Table 4.6: Centrally Managed Accounts
(Bank Budget $FY13 million)
FY13
Budget
Plan
Intl Centre for Settl ement of Inves tment Di s putes
FY13
Budget
3
Remap
FY14
Budget
Plan
FY14/13
Difference4
FY14/13
Percentage
Change
4
2.8
2.8
2.9
0.1
3.6%
0.0
0.0
0.0
0.0
n/a
2.8
2.8
2.9
0.0
1.1%
7.2
0.4
10.0
9.6
n/a
Staff Separation Fund
11.1
11.1
11.5
0.4
3.7%
Business Continuity Plan
16.7
16.7
16.7
0.0
0.0%
2/
29.2
28.4
27.0
-1.3
-4.6%
Gl oba l Envi ronment Fund
1/
Hosted Secretariats/Organizations
Contingencies
2
Institutional Programs
Centrally-Managed Overhead & Benefits
-154.2
-162.1
-174.5
-12.4
8.0%
Centra l l y-Ma na ged Overhea d
-33.9
-42.4
-44.8
-2.4
7.2%
Centra l l y-Ma na ged Benefi ts
-120.3
-119.8
-129.8
-10.0
8.3%
HQ Real Estate Strategy
-4.1
-4.1
-3.7
0.4
-9.9%
Non Allocated Savings
-3.5
-3.5
0.0
3.5
n/a
-97.7
-113.2
-113.0
0.2
-0.2%
Centrally-Managed Accounts
1/
2/
3/
4/
5/
GEF Secretariat is a trust-funded program.
Includes Knowledge and Learning Council Fund for FY 13 and the Corporate Contingency for FY14.
Excludes Staff Separation Fund.
Budget remap amounts include allocations from contingency funds as well as changes in program responsibilities implemented in FY13.
Compares FY13 Bank Budget Remap to FY14 Bank Budget Plan.
17
The budget for Centrally-Managed Overhead and Benefits is the difference between (a) credits derived from internal pricing
mechanisms (e.g., Office Occupancy chargeback) and cost recovery from externally-funded programs or below-the-line units,
and (b) debits for actual overhead and benefits expenditures.
- 42 -
FY14 BUDGET DOCUMENT
the centrally-managed overhead accounts.
Board-related budgets
99. There are no significant changes to Board-related budgets compared to last year (see Table 4.7 for
details). Highlights are as follows:
a. The $73.6 million Executive Directors’ budget in FY14 excludes the one-time budget allocation
of $2.82 million in FY13 for travel arrangements for Executive Directors and their staff to attend
the 2012 Annual Meetings in Tokyo.
b. Board of Governors, Development Committee, and Inspection Panel budgets amount to $14.2
million.
c. Board reimbursable budget of $20.2 million represents cost sharing arrangements with IFC,
MIGA and IMF.
d. The proposed FY14 budget for the Corporate Secretariat (SEC) is $15.7 million; net of
reimbursable funds.
e. The proposed FY14 IEG budget covers its activities across the World Bank Group ($33.6
million). The cost of activities pertaining to IFC and MIGA are shown as reimbursables of $7.5
million.
Table 4.7: Board Related Budgets
($FY13 million)
FY13
Budget
FY13
Budget
Plan
Remap2
EDs total
FY14
FY14/13
Budget
3
Difference
Plan
FY14/13
Percentage
Change3
76.4
76.5
73.6
-2.9
-3.8%
Boa rd of Governors
8.7
8.7
8.7
0.0
0.0%
DC Secretari a t
1.9
1.9
1.9
0.0
0.0%
3.6
3.6
3.6
0.0
0.0%
Ins pection Pa nel
1
90.6
90.7
87.8
-2.9
-3.2%
SEC
15.6
15.7
16.3
0.7
4.3%
IEG
34.4
34.1
33.6
-0.5
-1.4%
-23.0
-23.1
-20.2
2.9
-12.5%
0.0
0.0
-0.6
-0.6
1677.0%
Total: EDs, Board of Gov, DC Secretariat and Inspection Panel
EDs, et al. Reimbursables
SEC Reimbursables
IEG Reimbursables
Total
1/
2/
3/
-7.6
-7.5
-7.5
0.0
-0.3%
110.1
109.8
109.4
-0.4
-0.4%
Board's work program is fully funded by Bank Budget independent of any cost sharing revenues received from IFC/MIGA
Budget remap amounts include changes in program responsibilities implemented in FY13
Compares FY13 Bank Budget Remap to FY14 Bank Budget Plan
- 43 -
FY14 BUDGET DOCUMENT
100.
The FY14 recommended budget (in $FY14) for Executive Directors uses a preliminary price
factor based on standard rate for HQ units. The price factor will be subsequently adjusted to reflect
the decisions of the Joint Committee on Remuneration and approval by the Board of Governors.
Staff retirement and related plans
101.
Using the Pension Finance Committee’s approved rates for FY14, contributions to the Staff
Retirement Plan ($224.0 million), the Retired Staff Benefits Plans ($89.4 million), and the PostEmployment Benefits plan ($57.7 million) are expected to increase to an estimated total of $371.2
million in FY14 (representing 34.59 percent of net salaries), compared to $319.7 million in FY13.18
FY14 allocations are based on the funding methodology first applied in FY11 which involves the use
of a five-year asset averaging method and a hybrid funding method that includes 10 years of expected
staff hires in the valuation model.
102.
Effective July 2012, Management established a Post Retirement Contribution Reserve Fund
(PCRF) following approval from the Board. The budgetary contribution rate for the Staff retirement
and related plans would normally be the amount recommended by the Pension Finance Committee
(PFC). For FY14, the PFC recommended rate is 34.59 percent. However, as per the current terms of
the PCRF, Management is recommending that the budgetary contribution rate be 35 percent. This will
result in an increase of $4.4 million in budgetary pension contributions, bringing the total to $375.6
million, which is $1.1 million higher than originally estimated in MTBF.19 This additional $4.4
million would go into the PCRF.
Grant-making facilities
103.
Management recommends setting the overall FY14 budget for the five facilities at $115.2
million, a $45.8 million reduction (in $FY14) from their FY13 envelope of $161.0 million.20 For the
purpose of financial projections for both the year-end IBRD financial papers and the IDA
commitment charge paper, the impact of the funds moved above the line is a function of the
IBRD/IDA cost allocation methodology. This methodology is applied to projected administrative
expenses as a whole. As a result, the funds moved above the line are expected to be allocated to
IBRD and IDA with a 48:52 ratio.
104.
The proposed reductions to individual facilities for FY14 focus on SPF, with a substantial
portion to benefit Bank work programs supporting Fragile and Conflict Affected States. The
recommendation is based on a closer examination of cash balances, contributions and disbursements
that followed the FY13 discussion with Executive Directors. While SPF goals are aligned with
corporate priorities of strengthened support for FCS, the SPF program features significant
uncommitted budget authority from contributions received in previous fiscal years, cash which is
legally not committed and donor contributions not yet paid-in of $79.5 million as of March 31, 2013.
SPF went through a comprehensive Mid-Term Review of its strategy and developed a number of
18
Overall Bank contribution rate for FY14 is 34.59 percent of net salaries and is expected to decline in future years and then level
off from FY18 on, if all actuarial assumptions are met.
19
The $1 million increase is due to higher current estimate of staffing costs by $3 million.
20
See section 2.3 for a more detailed discussion on the use of temporarily reallocated resources and the planned assessment of
grant-making facilities in FY14.
- 44 -
FY14 BUDGET DOCUMENT
important shifts to enhance the impact of SPF funds in leveraging broader FCS country strategies. A
strong pipeline of projects grouped around country-wide strategy initiatives is being prepared for
FY14, which can be accommodated under the current cash balances. The proposed move would not
affect the current status of SPF program execution: the facility would be able to maintain previous
levels of annual activity in FY14 as well as fund the existing pipeline of activities proposed for FY14
while receiving no, or reduced, new funding allocations in FY14. The funds freed up from reducing
the SPF allocation to zero in FY14 ($33.3 million) would be largely redeployed to FCS and FCSrelated work programs, as well as other key investments many of which benefit FCS (such as IT
connectivity), within the net administrative budget. This redeployment would enable the Bank to meet
its commitments to enhance operational effectiveness in FCS through enhanced staffing, surge
support, and budget for priority FCS programs, while still maintaining previous levels of
commitments through the SPF to those FCS programs with limited access to IDA funds.
105.
The remaining reductions proposed for FY14 will be shared by IDF and DGF. IDF has a
smaller amount of uncommitted budget authority ($6.65 million), and uncommitted cash balances of
more than $20 million (both as of March 2013). Together with the projected FY14 funding of $9
million, IDF will be able to sign the same level of legal agreements in FY14 as in previous years and
have a commitment authority of $15 million for new grants in FY14 (pipeline build up). The DGF’s
budget allocation is expected to decrease by US$5 million in FY14. This follows cuts to the DGF
budget in FY10-13 made as part of its strategic reorientation. The impact on the DGF will be
mitigated though the exit of long term programs as part of the reorientation begun in FY09. CGIAR’s
below-the-line (BTL) allocation for FY14 will continue at the same level as in prior years. GPSA’s
annual budget will not be subject to a reduction in FY14, given that it has been set up recently and the
Bank made a 4-year funding commitment to GPSA, of US$20 million, in June 2012.
Table 4.8: Grant-Making Facilities FY14 Budget and Indicative FY15-16 Envelope
($ million, nominal)
Facility
FY13
FY14
Sta te a nd Pea ce-Bui l di ng Fund (SPF)
33.3
0.0
Ins ti tuti ona l Devel opment Fund (IDF)
16.5
9.0
Devel opment Gra nt Fa ci l i ty (DGF)
56.2
51.2
5.0
5.0
50.0
50.0
161.0
115.2
Gl oba l Pa rtners hi p for Soci a l Accounta bi l i ty (GPSA)
Cons ul ta ti ve Group on Interna ti ona l Agri cul tura l Res ea rch (CGIAR)
GMF Total
- 45 -
FY15
FY16
115.1
115.2
FY14 BUDGET DOCUMENT
4.5 EXTERNAL SOURCES OF FUNDS
106.
Total external funds are projected to increase slightly in FY14. Bank-Executed Trust Funds
(BETFs) are anticipated to slightly decrease by 0.4 percent to $650 million, whereas reimbursables
are expected to increase by approximately $15 million to $374 million.
107.
Bank-Executed Trust Funds (BETFs). Overall, the projected BETF disbursement is fairly
stable for the coming year. This is a reversal in the trend experienced in previous years. Some units
are projecting a decrease in BETF spend in FY14, such as AFR related to the closing of the MDTF in
Khartoum, Sudan and MNA with the closing of the Red Sea - Dead Sea feasibility study and the Iraq
Reconstruction Trust Fund . However, there are also off-setting increases projected for FY14 in other
units. The increase is mainly in FPD's BETF projection, e.g., largely due to increased disbursements
in programs for Financial Inclusion, Competitive Industries, and Phase III of Financial Sector Reform
and Strengthening (FIRST) Program.
Table 4.9: External Funds
($FY13 million)
FY13 Plan 3 FY13 Remap 3
BETFs
1
FY14 3
% Change 2
652.9
650.0
-0.4%
353.5
359.1
374.0
4.2%
129.4
129.4
138.2
6.8%
74.6
77.5
84.8
9.5%
7.1
7.0
6.2
-10.9%
142.5
145.3
144.8
-0.3%
1,013.7
1012.0
1024.1
1.2%
660.2
Reimbursables, of which:
Opera ti ona l , TF-rel a ted
Opera ti ona l , Fee for Servi ce
Other Opera ti ona l
Non-opera ti ona l
Total External Funds
1/
Includes BETFs for all Units and Central Account/GEF
2/
Compares FY13 Remap against FY14
3/
Figures represent Unit projections
4.6 PRICE FACTOR
108.
Applying the Board-approved methodology, the price adjustment factor for FY14 is 1.59 percent
(to be applied to FY14 net administrative budget of $1,916.3 million). This yields an overall FY14
price adjustment of $30.5 million consisting of:

A price adjustment of $20.7 million for US$-based headquarters (HQ) salary and salary-related
costs (on an HQ wage bill base of $1,037 million);

A price adjustment for non-US$ Country Office salaries of $1.4 million comprising a positive
local structural adjustment of $10.1 million and a reduction ($8.7 million) reflecting local
currency depreciation relative to the $US (on a non-HQ wage bill of $158.7 million);
- 46 -
FY14 BUDGET DOCUMENT

A price adjustment for other (non-salary) US$-based costs of $13.8 million;

A price adjustment for non-US$ Country Office, non-salary related costs of $0.1 million
including an offsetting adjustment reflecting local currency appreciation of $12.5 million; and

An adjustment of -$5.5 million that eliminates reimbursables from the four components above.
109.
The overall price adjustment is the weighted average of the above components: 2.0 percent
structural adjustment for Washington-based staff costs, 1.77 percent for US$-based non-staff costs,
0.86 percent for Country Office staff costs, and 0.04 percent for non US$-based non-staff costs. Price
for Country Office costs includes adjustments for local currency depreciation.
110.
Per normal practice, Management plans to apply unit (VPU) specific price adjustments for
selected units that have sizable local currency costs.
111.
The price adjustment for Executive Directors’ budget will be determined following the decisions
of the Joint Committee on Remuneration and subsequent approval by the Board of Governors.
4.7 CAPITAL BUDGET SUMMARY
112.
The three-year capital program over the FY14-16 period is $477.3 million, with Technology
and Systems accounting for $227.1 million (48 percent of the total envelope) and the remaining
$250.2 million (52 percent) for Facilities. The FY14-FY16 capital program is $36.8 million (8
percent) larger than the FY13-15 approved capital program of $440.5 million. The increase is mostly
due to the IT Reform agenda through new investments that will improve connectivity with country
offices including in Fragile or Conflict States (FCS); modernize the World Bank Group’s business
capabilities; and increase the productivity of staff, especially when travelling.
113.
Total FY14 Capital Budget. The total proposed capital budget for FY14 is $209.2 million, which
is a 22.3 percent ($38.2 million) increase over the Board approved FY13 capital budget of
$171.1million. The increase is related to investments in Technology and Systems ($28.4 million, of
which $15 million is contingency reserve), Washington Facilities ($3.7 million) and Country Office
Facilities ($6.1 million). (See Table 4.10 for a summary. Additional details are provided in Annex
G.) Descriptions of major capital budget-related projects are included below.
114.
Technology and Systems. The Information Management and Technology (IMT) Three-Year
Strategy for FY11-FY13 and the institutional new directions being articulated provide the selection
framework for Technology and Systems capital investments – a critical element of the Bank’s
business modernization. The FY14 Capital Budget is $108.9 million, a $28.4 million increase over
the approved FY13 Capital Budget. The FY14 allocation of capital by investment pool includes:
Base Case Investments ($60.7 million) corresponding to investments that have already been approved
in prior years; Deferred Maintenance ($4.9 million) representing assets that are beyond their asset life
and/or are ready for renewal; New Investments ($28.3 million) including conceptual projects for new
investments; and Strategic Program Reserve for contingency ($15 million) of which $10 million is to
cover the impact of the recent policy change allowing the capitalization of staff time. (See Annex G
for details on funded activities.)
- 47 -
FY14 BUDGET DOCUMENT
115.
Facilities – Washington. The $3.7 million increase in capital budget needs for Washington
Facilities is primarily due to the new Institutional Space Realignment Project (ISRP) which aims to
reduce leased office space at HQ. Projects related to the IT data center relocation ($10.5 million),
ISRP ($6.7 million), structural repairs ($4.2 million) and air conditioning/mechanical repairs ($2.8
million) will receive the most funding in FY14.
Table 4.10: Capital Program Summary – Investment Schedule FY13-FY16
Capital Funds ($ Millions)
FY13
Technology and Systems
of which
IMT Investment Scale-Up Reserve
Facilities – Washington
of which
HQ Real Estate Proposal
H-Building Data Center Move
Facilities - Country Office
of which Global Footprint Set-aside
2
Total Capital Budget (All Parts):
FY13
FY14
FY15
FY16
Budget
Plan
Plan
Approved
YTD
80.5
59.4
108.9
65.1
53.1
0.9
n/a
15.0
15.0
20.0
28.6
10.4
32.2
19.7
8.2
0.4
3.3
0.4
0.0
0.0
10.8
3.0
10.5
10.5
0.0
62.0
14.4
68.1
62.0
60.0
49.0
12.1
53.4
56.1
52.1
84.2
209.2
146.7
121.3
171.1
Percent Utilization (FY13 YTD Release/FY13 Approved)
1
49.20%
1
Da ta on ca pi tal rel ea s e of funds a s of Ma y 23, 2012
2
Gl oba l Footpri nt Set-a s i de i s a n es tima te tha t takes i nto a ccount on-goi ng/a ntici pa ted decentra l i za tion reforms ,
co-l oca tion wi th IFC, rel oca tions a nd a cqui s i tion a nd outfi tti ng. Al l fi na l rel ea s es wi l l depend on outcome of
Gl oba l Foorpri nt Worki ng Group recommenda tions
116.
Facilities – Country Offices. The FY14 capital budget request of $68.1 million for Country
Office Facilities includes acquisitions and new construction, as well as security enhancements,
expansions and upgrades of existing facilities in support of decentralization of staff and authority to
Country Offices. Of this amount, the Global Footprint set-aside totals $53.4 million for proposed
land/facility purchases. Acquisitions are being explored versus leases given the condition of the
global real estate market and favorable economic terms. All acquisitions decisions will depend on the
final recommendations of the Global Footprint Working Group. 21
117.
A corporate approach to management of the Country Office Facilities program is under
consideration to optimize the management and maintenance of the Bank’s global real estate portfolio.
This will increase Management’s ability to plan and implement real estate decisions and facilities
maintenance/upgrade projects from a long-term and strategic perspective.
21
The Global Footprint is a key priority area of the WBG change management process initiated by the President in 2012 to
strengthen the WBG’s mission of ending extreme poverty and boosting shared prosperity. This Team will look into: (i) how
WBG staff and resources are deployed globally; (ii) how this global footprint affects the WBG’s ability to fulfill its mission and
serve its clients effectively; and (iii) what implications this global footprint might have on other areas like systems for
knowledge, accountability, decision-making, HR, and IT, among others.
- 48 -
FY14 BUDGET DOCUMENT
Box 4.2: Institutional Space Realignment Project (ISRP)
As part of the institutional mandate to redeploy resources to key priority areas on the front line, GSD has
developed an extensive space realignment plan at HQ with the objective of reducing leased space in the Ubuilding and the IFC Building in a phased manner. The project is expected to generate potential lease savings of
approximately $2.8 million in FY15, and $4.3 million annually from FY16 onward. The project will take 18-20
months to complete (it started in FY13) at a cost of approximately $10m in capital and $2 million in
administrative budget. The project is expected to be completed by end-FY14.
- 49 -
FY14 BUDGET DOCUMENT
ANNEX A: BUSINESS MODERNIZATION
This Annex provides details on the specific progress made to date on some of the business modernization
efforts outlined in Section 2. For a more detailed update on achievements, refer to the Spring 2013
Development Committee Paper ‘A Common Vision for the World Bank Group,’ Background Annex.22
I. A sharper focus on results
1. Support to Operations: To improve the quality of the lending portfolio, a new risk based-approach for
investment lending projects became effective on July 1, 2010, with targeted field training, clinics and
web-based training provided throughout FY11. The Bank also continues to diversify its portfolio of
lending instruments, for example, through the innovative Program-for-Results (PforR) financing
instrument for client countries that links the disbursement of funds directly to the delivery of defined
results. One year after the approval of PforR in January 2012, five operations in a variety of sectors
had been approved, totaling $880 million in IDA/IBRD commitments and leveraging another $1.4
billion in government and partner funding. A new policy for the Investment Project Financing (IPF)
instrument was also approved in October 2012 and roll out began in April 2013.
2. To enable Regions to limit Sector Manager oversight to no more than 25-35 staff per person, AFR
and EAP received incremental funds in the period FY13-15 of $2 million and $1 million per annum
respectively to hire additional Sector Managers. These Regions have redeployed an additional $3
million to this end, and to date have increased their Sector Manager complement by 12 in AFR and 10
in EAP.
3. Innovation: Sponsored by the Knowledge and Learning Council (KLC), and administered by WBI,
front line teams received $1 million in each of FY11 and FY12 for projects which supported planning
or piloting innovative new products, practices or approaches. One example of a project supported
was that of using tablet computers equipped with mobile SIM cards to conduct real-time surveys in
South Sudan; the National Bureau of Statistics and Bank operational teams started working within a
year of that survey with DFID to expand the program nationally. Other examples of projects
supported are: Piloting the Use of Cell-Phone Data to Collect and Process Data to Strengthen
Monitoring, Control and Accountability of CCT Programs in Latin America (LCR/HDN); Digital
Water-Point Atlas of Liberia (AFR/SDN); Proactive Governance – The Punjab Model (SAR/PRM);
and Pacific Disaster Risk Assessment GeoNode – Improving Disaster Risk (EAP/FPD).
4. Experience from these FY11 and FY12 projects has demonstrated that TTLs can leverage relatively
small amounts of funding to achieve significant results and access follow-on financing through Bank
lending instruments and external partners. WBI will receive $3 million per year of incremental
funding over the period FY14-16 to pursue more of this seed, grow and scale “innovation life cycle”
approach targeted at innovations that address complex implementation challenges in fragile states,
IDA countries, and/or thematic areas of particular concern to the WBG (e.g., climate change
adaptation, food security, youth and employment).
22
A Common Vision for the World Bank Group Background Annex, (DC2013-0003), April 3, 2013
- 50 -
FY14 BUDGET DOCUMENT
5. Human Resources Modernization: Supporting the Bank's efforts to improve corporate governance,
accountability, and operational effectiveness, HR reforms aim to strengthen the fundamentals for
enabling a more agile, efficient and effective Bank, and to strengthen corporate approaches to people
management. Progress to date has included: (i) a revamped HR organizational structure to better serve
clients, through Centers of Expertise, Business Partners, and a strengthened Shared Services
organization; (ii) streamlined HR policies and processes to support the new Accountability and
Decision-Making (ADM) Framework, as well as re-implementation of the PeopleSoft system; (iii)
implemented enhanced benefits to support business needs, such as greater cross country mobility; (iv)
improved compliance with key milestone requirements in performance management, and re-launched
the corporate talent management process with a consistent approach across units; and (v) developed a
package of measures to better support staff working in FCS locations.
II. An Accountable Bank
6. Accountability and Decision-Making Framework (ADM): Introduced in April 2013, the ADM marks
a critical milestone toward clarifying accountabilities and reducing internal costs of doing business
due to operational processes. Beyond various simplifications and user-driven systems improvements
such as simplified project clearances, dashboard for task teams, and new guidance and instructions for
knowledge services, this package applies the accountability and decision-making framework
approved in June 2012 to operational processes, with the aim of clearer and more accountable
decisions. An external consultant has been hired to facilitate the rollout of this framework, covering
three key processes (investment lending, PforR, and knowledge services), as well as to support the
expansion of ADM to development policy loans and guarantees, the training of VPs on ADM, and to
implement a pulse survey and other incentives to make sure ADM works effectively in the Bank.
7. Safeguard and Procurement Reviews: The reviews of procurement and safeguard policies are
ongoing with the objectives of clearer accountability and sharper focus on development impact.
Extensive consultations on procurement policy reform have been completed and work is currently
underway to shape the new procurement policy architecture. A two-year global consultation process
to review and update environmental and social safeguard policies has begun.
III. An Open Bank
8. Open Data: Additional budget of $1.6 million per annum was provided to DEC during FY13-15
business planning aimed at increasing data curation work, capacity building and developing tools to
promote open knowledge. To date substantial progress has been made in improving access to
microdata for Bank staff via the fully searchable Microdata Library that now holds over 2500
surveys. Two new models of ADePT were also developed in coordination with the UN FAO and
ILO, as well as a new model simulating the impact of various forms of fuel, electricity and water
subsidies; and new versions of MAMS (Maquette for MDG Simulations) including updated databases
for 150 countries and user guides are also under development.
- 51 -
FY14 BUDGET DOCUMENT
IV. The Knowledge Bank
9. Knowledge and Collaboration: The KLC has improved external connectivity through several
initiatives, including funding six Knowledge Platforms that were launched over FY11 and FY12, and
which were designed to foster cooperation between development practitioners, policy makers,
researchers and academia, while promoting cross-sectoral and cross-VPU connectivity across the
Bank. For example, the Urbanization Knowledge Platform has hosted more than fifteen regional
events across the globe, and created ‘Partnerships for Smart and Sustainable Cities’; the Green
Growth Platform has established a core partnership with Korea’s Green Growth Institute, the OECD
and UNEP; and ICT for Open Development Platform hosted a Global Hackathon across 10 cities
worldwide.
10. Since FY11, the eight KLC-funded Global Expert Teams (GETs) – created to mobilize the knowledge
of the Bank’s top experts for problem solving on the ground and across institutional boundaries - have
undertaken over 240 activities ranging from providing flood-relief support, to guidance on publicprivate partnerships, to practitioner-to-practitioner training programs for provider payment and health
insurance.
11. FPD Global Practice Pilot: To increase the mobility and connectivity of FPD staff expertise across
the Bank, the FPD Global Technical Practices pilot was launched in July 2011 (and received
incremental budget of $5 million total over FY11-12) with the Network’s realignment into 6 Global
Practices that cut across Regions and FPD’s key thematic areas, the appointment of dual directors,
and affiliation of 639 staff to practices according to their expertise. Since then, the Practices have
successfully increased cross support, with Sector Board Connectivity23 for the FPD Network
increasing from 17 percent in FY11, to 26 percent in FY12 and 26 percent as of Q3 FY13. Joint
accountability for quality has been established, as well as increased alignment of trust funds and bank
budgets to the Global Practice work programs.
V. Investments in information technologies
12. Financial Systems Renewal: The multi-year Finance Systems Renewal program is underway, and
several projects have been completed, many of which represent the first phase of a multi-year
initiative that will provide value in an incremental manner. Highlights of progress and
accomplishments within some key major programs are as follows:
23

Cash Systems Renewal Program: A major investment is underway to replace the aging Cash
Transaction Processing System with an externally bought market solution. This project also
includes the IFC.

Comprehensive FIFs Program: A FIF Trustee external website has been implemented, and a
dashboard has been launched for the Climate Investment Fund administrative unit to enable
viewing of real time data on Pledges, Contributions, and Cash Receipts.
Sector Board Connectivity: Professional Staff time spent on tasks in other Bank units as per Corporate Scorecard definition.
- 52 -
FY14 BUDGET DOCUMENT

eBusiness: Two initial deliverables have been completed: i) the launch of ePayables capability
to fully automate accounting process for paying vendor invoices using an easily updated market
solution that works seamlessly with SAP, and ii) the implementation of a Collaboration & Event
Management Solution for the IDA 17 meetings with a document library and calendar system to
manage IDA events, invitees, and RSVPs. The program is now undertaking a broader technology
assessment to develop the roadmap for technology enablers to deliver business capabilities
required across all Finance lines of business.

Quantitative Risks Analytics (QRA) Systems Renewal Program: This project is the first in a
multi-year risk management program, and will replace the aging Treasury Operational Data Store
with a robust market solution.
13. HR Systems Renewal: Aligned with the Bank Group's modernization agenda, the core HR
PeopleSoft system is undergoing an upgrade to bring the enterprise system to current market
standards of functionality, usability, and technical architecture. This is the foundation piece of a
multi-year investment program to modernize all major HR systems, including performance
management, learning management, recruitment, and talent management applications. The new
version of PeopleSoft will go live in FY14, delivering an improved self-service experience for staff
and managers and operational efficiency to backline HR, accounting and IT functions. The
PeopleSoft project has also provided the Bank Group with the opportunity to identify areas for
simplification and streamlining of HR policies and processes and to support the consolidation of HR
and IT functions.
14. Operations and Knowledge Systems Reforms: The Operations and Knowledge Systems Program has
been launched to support a wide range of innovations: a new Operations Portal, through which all
lending and non-lending operations are processed; a new document repository and new document
classification rules related to the new Access to Information Policy; and a new social networking
platform (Scoop), which already has over 10,000 users.
15. Internal and external collaboration platforms: Sponsored since FY12 by the KLC, Jive and
SharePoint are the Bank’s corporate standard for internal and external collaboration platforms, with
Jive focusing on people-centric activities, while SharePoint focused on document handling and formal
flow activities. Both platforms are part of the knowledge systems reforms, and have helped improve
country office engagement in knowledge sharing by supporting virtual communities that collaborate
more effectively. Internal connectivity is also being strengthened through the Global Knowledge
Management and Collaboration (GKMC) program led by the Networks, which will increase access to
local and global knowledge independent of where staff members are located. The GKMC program is
building on existing investments in Scoop and SharePoint, and will balance a common knowledge
standard, aimed at helping better mobilize the knowledge that staff gain in their knowledge and
lending work.
- 53 -
FY14 BUDGET DOCUMENT
VI. HR Modernization
16. Supporting the Bank's efforts to improve corporate governance, accountability, and operational
effectiveness, HR reforms aim to enable a more agile, efficient and effective Bank, and to strengthen
corporate approaches to people management, recognizing the importance of managers’
responsibilities to the institution as well as to their immediate units and staff. Progress to date has
included:

a revamped HR organizational structure to better serve clients, through Centers of Expertise,
Business Partners, and a strengthened Shared Services organization. The Shared Services unit is
expanding its hours of operation for all staff, and will begin servicing all operational and
transactional work for IFC starting in FY14;

streamlined HR policies and processes to support the new Accountability and Decision-Making
Framework, as well as upgrade of the PeopleSoft system;

implementation of enhanced benefits to support business needs, such as greater cross-country
mobility;

improved compliance with key milestone requirements in performance management, and a relaunched corporate talent management process with a consistent approach across units; and

development of a package of measures to better support staff working in FCS locations.
- 54 -
FY14 BUDGET DOCUMENT
ANNEX B: ANALYSIS OF FY13 PRIORITY FUNDING TO REGIONS
1. Last year’s Budget allocated funding to address project implementation and operational quality
issues, particularly in IDA countries and countries affected by fragility and conflict. Regions received
an allocation of $10.25 million ($FY13) per annum over the period FY13-15 from the Corporate
Priorities Fund (recognizing that improvements in quality may take longer than 1 year). The funding
was to be made available directly to Regional Sector Management Units (SMUs), the Bank’s primary
units for the delivery of services to country clients.
2. Allocations were carefully prioritized to ensure that activities funded would have a meaningful
impact. As of end April, Regions had allocated around $10.1 million of the $10.25 million and spent
around 70 percent of that amount on prioritized projects. With few exceptions, Regions have largely
funded projects that they had identified during funding deliberations. A significant share of the
funding supports Agriculture & Rural Development, Financial & Private Sector Development, and
Energy & Mining sectors.
3. Regions have also allocated funds to activities that would support better portfolio and safeguards
management. For example, AFR and MNA have allocated funds for portfolio
improvement/safeguards initiatives and to support FCS countries. AFR planned for a Portfolio
SWAT team (See Box B.1) and the team is expected to strengthen the percentage of satisfactory
development outcomes for the regional portfolio. Another $700K was planned with OPCS to be used
to support fragile states. MNA planned around $260K for portfolio management and safeguards.
Box B.1: AFR’s SWAT Team to improve the performance of the portfolio - $0.4 million
AFR has set up a designated team, the Portfolio SWAT Team, which is multi-stakeholder platform to deliberate on actions to
improve portfolio performance, commission specific reviews and analysis, agree on how actions to improve portfolio
performance will be implemented, follow up with the responsible units on implementation, and make recommendations to the
AFRVP and SLT on the portfolio, as it deems fit. The specific reviews and analyses commissioned by the SWAT Team are
undertaken either by individual staff from the Network Anchor or AFR (identified by the SWAT team members) and/or
consultants or teams of staff and consultants that might be led by individual members of the SWAT Team, as appropriate.
Regarding Disbursements, the team oversees the implementation of the recommendations of the Disbursement Working
Group, and initiates other necessary complementary actions. Concerning project performance (IEG satisfactory outcomes), in
FY13 the team has focused on: (i) analyzing projects rated MS (completed); (ii) analyzing the current active portfolio of
sectors that historically have had a high number of projects exiting in unsatisfactory status (underway); (iii) review the
country portfolios that have historically had a high number of projects exiting in unsatisfactory status (underway); (iv) review
IEG evaluations of exits in the Region over the last 5-10 years, and main reasons for unsatisfactory ratings (completed); and
(v) make specific recommendations for improvement, and oversee their implementations (forthcoming).
The SWAT team has an overview of Agreed Actions to improve disbursements:
(1)
(2)
(3)
(4)
(5)
Sorting out process related issues, and sending a strong message on implementation and disbursements;
Rigorous review of readiness for implementation;
Consistent attention on disbursement performance during project life cycle
Direct more efforts to client capacity to manage contracts;
Review of other causes of low disbursement in client countries
- 55 -
FY14 BUDGET DOCUMENT
4. Overall, 64 percent of the projects receiving funding support FCS and IDA countries. Regions
allocated around $8 million to projects in problem status and to portfolio improvement initiatives.
All Regions exceed 50 percent of their allocations to projects in problem status, with ECA allocating
almost 80 percent. The following charts show the funding distribution for the intended purpose by
country type and project ratings.
Figure B.2: By Project Rating
(US$m)
Figure B.1: By Country Type
(US$m)
$1.1,
11%
$1.6,
15%
$2.6,
26%
$1.6,
16%
$2.1,
21%
$6.4,
64%
$4.7,
47%
Problem - Yes
Fragile State
IDA
IBRD
Blend
Problem - No
Problem - Not Applicable
5. By year-end, we expect Regions to fully utilize the allocated $10.25 million. The Regions will
continue to review their work programs and prioritize their project allocation to meet the funding
objectives. An assessment will be carried out early next fiscal year to determine the impact of this
funding in terms of overall portfolio improvement and project implementation support, particularly in
FCS and IDA countries. Findings along with portfolio improvements will be reported in the FY14
Q1 QBRR and in future Board engagement papers.
6. Recognizing that improvements in quality may take longer than 1 year, most projects that received
funding will continue to be funded in FY14, while a small share of this priority funding may be
reallocated (as part of an allocation review) to new projects based on exits and assessments.
- 56 -
FY14 BUDGET DOCUMENT
ANNEX C: COUNTRY SUPPORT TO FCS COUNTRIES
The World Bank continues to scale up programs in support of countries in Fragile and Conflict-Affected
Situations (FCS):
1. AFR scale-up ($4.5 million) in the following countries:

Somalia Scale-Up: The Bank’s new interim strategy for Somalia (under preparation) envisages
that, starting in FY14, the Bank will undertake a set of targeted activities clustered around two
long-term strategic objectives: (a) Building domestic and international trust in Somalia’s public
institutions; and (b) Supporting early recovery and economic resilience. Interventions will be
mainly technical assistance for capacity building, as well as analytical and knowledge work,
providing the basis for a more engaged policy dialogue and future lending.

Closing of the Sudan National Multi-Donor Trust Fund (MDTF-N): The Bank has been
providing $1.1 million administrative budget annually (mainly for AAA) for the Sudan program,
supported with another $1 million in supplemental financing from the MDTF-N. The MDTF-N
will continue financing the Bank’s operations in Sudan through November 30, 2013. The Bank
will maintain assistance beyond the MDTF-N period, sustaining the same level of activities,
engagement, and incremental budget resources to cover expenditures previously financed by the
MDTF-N.

Reengagement in Zimbabwe: With the emergence of relative political stability and
implementation of economic reforms over the past four years, as well as the adoption of a multicurrency regime, economic growth has been restored in Zimbabwe. A new Interim Strategy Note
(ISN) for the country was discussed with the Board on April 25, and an IMF Staff Monitored
Program (SMP) will be presented to their Board shortly – both important steps towards full reengagement of the IFIs. However, without the clearance of arrears, Zimbabwe cannot access
regular development assistance from the Bank. There is an opportunity for the Bank to position
itself as a significant player in the IFI reengagement to support economic transformation in the
country. Specifically, the areas where the Bank would be stepping up work are: Economic
management and revenue transparency; private sector development (particularly addressing
investment climate and transformational public-private partnership (PPP) initiatives);
strengthening government systems for results-oriented programs in health and safety nets; and
civil service reforms and the high wage bill.

Scaling up in Guinea: The Bank is preparing to scale up its work program in Guinea with a new
WBG Country Partnership Strategy (FY14-17) for delivery in June 2013. The CPS focuses on
reducing poverty and fostering inclusive growth, and is designed to support the Government of
Guinea’s (GoG) strategy for accelerated growth and sustainable economic and social
development (PRSP-III 2013-2015).

Great Lakes & Sahel Region: More AAA work is expected to be done on issues related to
peace and development in the Great Lakes and Sahel regions. Countries of the Great Lakes
region, for example, have had extremely high levels of poverty and very low levels of key
- 57 -
FY14 BUDGET DOCUMENT
services such as access to electricity. In May, the Bank announced a $1 billion pledge to Africa’s
Great Lakes region, targeting energy, roads, agriculture, cross-border trade, health, and jobs with
the expectation that his would contribute to lasting peace in the region.
2. Other Regional examples include:

Myanmar ($3.5 million): Critical milestones of the reengagement with Myanmar were achieved
in the last year, ahead of the initial schedule. The ramping up of the Bank’s work program was
successfully supported by regional redeployment of $2 million and matching corporate
contribution of $2 million in FY13. For the FY14-16 period, work is underway to prepare a
pipeline of projects, the first of which is likely to be an electricity rehabilitation investment loan.
In addition to $3.5 million FY14 scale-up funding, the Myanmar program will receive
incremental funding of $0.72 million in FY14 based on FY13 funding decisions.

Enhanced Sector Expertise in Libya and Yemen ($0.95 million): Additional sector staff are
being decentralized into the FCS transition countries of Libya and Yemen to strengthen their
work programs and engage the client. For Libya, such presence is needed to help the program
transition to RAS in the medium term. Work is focused on public sector governance;
strengthening public institutions at the central and local level; financial sector reform;
strengthening delivery of infrastructure and social services at the local level; and emergency job
creation as well as private sector development and diversification. The new Yemen ISN, to guide
the program during the transition period after re-engagement, focuses on (i) protecting the poor
by creating short-term jobs, restoring basic services, improving access to social safety nets, and
revitalizing livelihoods; (ii) promoting growth and improving economic management; and (iii)
enhancing governance and local service.

Iraq Transition to RAS ($0.8 million): The Iraq Trust Fund, which is coming to a close in
December 2013, financed both Recipient-executed and Bank-executed activities across a range of
sectors as well as a large share of Bank staff that supervised these programs. The Bank is
developing an RAS business model in Iraq. In the interim, there is a need for additional Bank
funding to ensure a smooth transition and to provide continuity of Bank support in key policy
areas.

Haiti ($0.8 million): Reconstruction aid is ongoing and ranges from rebuilding devastated areas
and housing, ensuring food security and nutrition among vulnerable groups, rehabilitating roads
and the port, to securing electricity access. In addition, more focus is placed on long-term
sustainable and more equitable growth enabled by the development of the private sector and job
creation. LCR is working on the analysis of social policies, public expenditures on health and
education, and gender inclusion that will underpin the goal of promoting shared prosperity.
- 58 -
FY14 BUDGET DOCUMENT
ANNEX D: UPDATE ON THE KNOWLEDGE AGENDA
Significant progress is being made in strategically managing the Bank’s knowledge portfolio to better
measure impact, ensure quality, and strengthen connectivity across 1) client facing knowledge services,
which respond directly to specific client demands; 2) knowledge as a public good, including data and
research; and 3) internal knowledge products, developed to strengthen the capacity of staff. Examples
include:
1. Last year, the Bank established a new framework of roles and responsibilities for the governance of
core knowledge products, including articulation of how standards for each product line are set, which
units are responsible for compliance with those standards, and establishing units responsible for
oversight and reporting on aggregate performance. This accountability framework is being
implemented across the Bank and will be complemented by strengthened peer review processes, a
new results management systems, and recent reforms to strengthen the coordination of work
programs (including knowledge) across the Matrix, with Regions and Network Anchors working on a
joint MOU framework. A well-functioning matrix helps integrate country operational needs with
global public goods agendas and aims to get the best global knowledge to country clients.
2. In a recently completed Client Feedback exercise, clients gave a strong rating to the Bank's
knowledge services – nearly 5 on a 6 point scale – with a higher rating if clients felt they were
appropriately engaged. About 80 percent of respondents affirmed that they had applied the Bank’s
knowledge to their work. Complementing the product-specific Client Feedback exercise is a
reformed self-assessment Country Survey Program which provides regular feedback on all aspects of
the Bank’s work in each country. Knowledge teams indicated that about 76 percent of the Bank’s
knowledge services (Economic and Sector Work (ESW) and Technical Assistance (TA)) largely
accomplished their objectives in FY12, and respondents rated the contribution of the Bank’s
knowledge to clients’ results at 7 on a 10 point scale.
3. By opening up its own knowledge, the Bank is strengthening its ability to engage with a variety of
stakeholders. The Open Data Initiative continues to expand, with access to an additional 1,000
development indicators over the last year, bringing the total to 8,000; and microdata on 150,000 more
variables from an additional 300 surveys (for a total of 600,000 variables and over 1,000 surveys).
More than 800 datasets are now publicly available.
4. Efforts will focus on establishing a cutting edge approach to knowledge management that supports
the management processes, provides the IT infrastructure and staff incentives to better capture,
share and use knowledge in real-time across organizational boundaries. As part of the change process,
the Bank will gradually build and enhance eco-system for knowledge, to include real-time services
for knowledge curation and the development of a professional cadre of knowledge management
professionals. Starting in FY14, an internal expertise locator and improved governance for
communities of practice will be introduced.
5. To support the “science of delivery”, the WBG will follow a multi-pronged approach by
- 59 -
FY14 BUDGET DOCUMENT

supporting the systematic use of evidence-based methods throughout the implementation of its
projects (including further scale up of impact evaluation, and mainstreaming of more robust M&E
such as documentation of base line conditions);

developing a global body of knowledge by systematically capturing the knowledge, experience
and learning collected during implementation (e.g., through case studies);

acting as a global knowledge connector across institutions, communities and practitioners
(mobilizing a diverse set of partners and using knowledge exchanges, platforms and technologies
to foster joint experimentation and innovation that will help establish practices of evidence-based
design, learn during implementation and, ultimately, leverage dispersed knowledge)
6. The World Bank plans to scale up its knowledge connector role through more systematic integration
in its client operations and strengthening in-country capacity. First, the Bank will develop a system
for tracking and reporting knowledge exchange activities embedded in its operations, with
dissemination of lessons for frontline teams. Second, in order to facilitate country-led approaches to
Knowledge Exchange, the Bank will support countries to build institutional capacity for capturing,
packaging and sharing their development experiences and leverage knowledge hubs in MICs for
knowledge exchanges to solve development challenges and achieve stronger results.
- 60 -
FY14 BUDGET DOCUMENT
ANNEX E: PROGRAM COST SUMMARY (ALL FUNDS)
The Program Cost Summary table has been enhanced to show total work program funding by VPU,
including Bank-Executed Trust Funds. For reference, below is a table on the Total Bank Budget Work
Program Funding.
Table E.1: Total Bank Budget Work Program Funding FY12‐16
($ million)
ADMINISTRATIVE PROGRAMS1/
1. REGIONAL PROGRAMS
Africa
East Asia and Pacific
Europe and Central Asia
Latin America and Caribbean
Middle East and North Africa
South Asia
Bank/FAO Cooperative Program
Corporate Contingency Fund for Regions
Regional Fund for Operationalizing Targets
Corporate Priorities Fund for Regions
SUB TOTAL
2. NETWORK PROGRAMS
Sustainable Development Network
Financial and Private Sector Development
Human Development
Poverty Reduction and Economic Management
SUB TOTAL
3. OTHER OPERATIONAL PROGRAMS
Operations Policy & Country Services
Development Economics
World Bank Institute
SUB TOTAL
4. EXPECTED FUNDING FROM KNOWLEDGE COUNCIL
5. OPERATIONAL UNITS SUBTOTAL
6. FINANCE PROGRAMS
Treasurer's
Controller's
Concessional Finance and Global Partnerships
Corporate Finance and Credit Risk
Finance CIO Office
Chief Risk Office
SUB TOTAL
7. ADMINSTRATION PROGRAMS
Human Resources
Information Solutions Group
General Services and Facilities
SUB TOTAL
8. CORPORATE PROGRAMS
Office of the President
Managing Directors
Office of Evaluation and Suspension
External Affairs
Internal Audit
Legal Services
Conflict Resolution System
Department of Institutional Integrity
Office of Ethics and Business Conduct
Administrative Tribunal
Sanctions Board
SUB TOTAL
9. FINANCE, ADMINISTRATION AND CORPORATE SUBTOTAL
10. ALL UNITS TOTAL
FY12 Budget
Plan
FY13 Budget
Plan
FY13 Budget
Remap
FY14 Plan
($FY13)
FY14 Plan
($FY14)
FY15 Indicative FY16 Indicative
($FY14)
($FY14)
337.3
158.1
171.6
178.9
102.3
152.3
13.7
1,114.2
338.8
160.9
173.0
177.6
105.0
150.8
13.9
5.2
10.3
1,135.4
343.7
164.8
175.1
179.2
106.8
152.1
13.9
0.5
0.1
1,136.1
348.6
168.2
174.7
179.5
110.3
151.1
13.9
6.0
1,152.3
355.8
172.1
177.0
182.2
112.2
151.9
14.2
6.1
1,171.4
355.3
172.0
177.0
182.2
109.0
151.9
14.2
6.1
1,167.5
346.2
171.6
172.0
181.1
107.5
150.9
14.2
6.1
1,149.6
60.4
41.4
29.7
31.7
163.2
51.4
36.5
26.0
27.3
141.2
54.2
36.6
26.9
28.9
146.6
56.4
36.3
26.6
27.8
147.0
57.4
37.0
27.0
28.3
149.7
56.2
37.0
26.6
27.8
147.6
53.6
37.0
26.6
27.8
145.0
44.6
51.6
51.3
147.5
13.0
1,437.9
43.5
48.9
47.8
140.2
7.2
1,424.0
45.2
49.2
48.3
142.7
0.4
1,425.8
46.0
50.0
51.1
147.1
1,446.4
46.8
50.9
52.1
149.8
1,470.9
43.1
50.9
52.1
146.0
1,461.1
41.6
49.2
51.0
141.9
1,436.5
30.3
38.0
14.3
20.7
34.4
1.2
138.9
26.8
34.5
14.3
21.1
32.9
2.7
132.2
27.3
35.8
14.3
20.6
32.2
2.7
132.9
28.1
36.1
15.0
19.7
37.0
2.6
138.5
28.6
36.2
15.3
20.0
37.7
2.7
140.5
28.6
36.2
13.7
20.0
38.7
2.7
140.0
28.6
36.2
13.7
20.0
38.7
2.7
140.0
68.8
53.7
126.6
249.1
62.9
127.7
112.8
303.4
62.3
130.6
114.2
307.1
61.4
146.4
116.0
323.8
62.5
149.0
117.8
329.3
61.5
153.2
115.8
330.4
58.4
150.3
115.8
324.5
5.7
9.6
1.6
35.0
9.6
34.0
4.1
16.7
4.7
1.6
1.0
123.6
511.6
1,949.5
5.7
9.0
1.6
37.9
8.8
22.8
4.0
15.9
4.8
1.7
1.0
113.2
548.8
1,972.8
5.7
11.5
1.6
38.0
8.8
22.9
4.0
15.8
4.8
1.7
1.4
116.3
556.2
1,982.0
5.6
14.1
1.6
37.5
8.6
22.9
4.0
15.5
4.7
1.7
1.7
117.7
580.0
2,026.4
5.7
14.3
1.6
37.9
8.8
23.3
4.0
15.8
4.7
1.7
1.7
119.6
589.4
2,060.3
5.7
14.3
1.6
37.7
8.8
23.1
4.0
15.8
4.7
1.7
1.7
119.2
589.6
2,050.7
5.7
14.3
1.6
36.5
8.8
22.9
4.0
15.8
4.7
1.7
1.7
117.8
582.3
2,018.7
- 61 -
FY14 BUDGET DOCUMENT
ADMINISTRATIVE PROGRAMS1/
11. SECRETARIATS/ORGANIZATIONS HOSTED BY THE WORLD BANK
Global Environment Facility Secretariat
International Centre for the Settlement of Investment Disputes
SUB TOTAL
12. FUNDS YET TO BE ALLOCATED
13. CONTINGENCY
14. BUSINESS CONTINUITY PLAN
15. CENTRALLY-MANAGED OVERHEAD & BENEFITS
16. HQ REAL ESTATE PROPOSAL
FY12 Budget
Plan
FY13 Budget
Plan
FY13 Budget
Remap
FY14 Plan
($FY13)
FY14 Plan
($FY14)
2.8
2.8
2.6
16.4
(187.5)
16.3
2.8
2.8
16.7
(154.2)
(4.1)
2.8
2.8
0.0
16.7
(162.1)
(4.1)
2.9
2.9
10.0
16.7
(174.5)
(3.7)
2.9
2.9
10.2
17.0
(179.2)
(3.8)
23.2
40.3
39.5
38.5
1,823.3
(3.5)
1,870.8
(3.5)
1,871.2
1,916.3
85.2
15.0
25.8
90.6
15.6
26.8
90.7
15.6
26.5
(23.0)
102.9
(23.0)
110.1
24. STAFF RETIREMENT ACCOUNTS 6/ 7/
299.4
25. GRANT-MAKING FACILITIES 7/
26. BELOW-THE-LINE BANK BUDGET WORK PROGRAM FUNDING
161.0
563.3
2,386.6
17. INSTITUTIONAL PROGRAMS 2/
19. PLANNED SAVINGS (UNALLOCATED) 3/
21. ABOVE-THE-LINE WORK PROGRAM FUNDING
23. BOARDS, SEC & IEG
Boards 4/
Corporate Secretariat
Independent Evaluation Group
Less: Reimbursables for Boards 5/
IBRD/IDA SHARE OF BUDGET FOR BOARDS, SEC & IEG
27. TOTAL BANK BUDGET WORK PROGRAM FUNDING
1/
2/
3/
4/
FY15 Indicative FY16 Indicative
($FY14)
($FY14)
2.9
2.9
10.2
17.0
(156.1)
(3.3)
2.9
2.9
10.2
17.0
(137.4)
(2.0)
39.2
37.9
37.9
1,946.7
(13.3)
1,946.0
(2.4)
1,944.9
87.8
15.7
26.1
89.2
16.0
26.6
89.2
16.0
26.6
89.2
16.0
26.6
(23.1)
109.8
(20.2)
109.4
(20.6)
111.1
(20.6)
111.2
(20.6)
111.2
357.9
357.9
369.7
375.6
382.8
392.3
161.0
628.9
161.0
628.7
113.4
592.5
115.0
601.7
113.1
607.0
110.5
614.0
2,499.7
2,499.9
2,508.8
2,548.4
2,553.0
2,558.9
Figures may not add due to rounding.
Now includes Staff Separation Fund which was included in the Centrally-Managed Overhead & Benefits in the FY13 Budget Document and presented as a separate line in earlier documents as
well as the Publications Escrow and Foreign Exchange Contingency.
Includes anticipated redeployments from Productivity Tax.
FY14 plan for EDs' budget in FY14$s is estimated using the HQ unit price factor of 1.82%. The actual price increase for EDs' budget will be determined subject to the decision fo the Joint
Committee on Remuneration and subsequent approval by the Board of Governors.
5/
Board's work program is fully funded by Bank Budget independent of any cost sharing revenues received from IFC/MIGA
6/
Includes Staff Retirement Plan and Trust (SRP), Retired Staff Benefits Plan and Trust (RSBP) and Post-Employment Benefits Plan (PEBP)
Budgets for Staff Retirement and Grant-Making Facilities have been adjusted from nominal dollars to FY13$s and FY14$s using the corporate price factors of 1.59% for FY14, 1.78% for FY15
and 2.41% for FY16.
7/
- 62 -
- 63 -
10. ALL UNITS TOTAL
1. REGIONAL PROGRAMS
Africa
East Asia and Pacific
Europe and Central Asia
Latin America and Caribbean
Middle East and North Africa
South Asia
Bank/FAO Cooperative Program
Regional Fund for Operationalizing Targets
Corporate Contingency Fund for Regions
Corporate Priorities Fund for Regions
SUB TOTAL
2. NETWORK PROGRAMS
Sustainable Development Network
Financial and Private Sector Development
Human Development
Poverty Reduction and Economic Management
SUB TOTAL
3. OTHER OPERATIONAL PROGRAMS
Operations Policy & Country Services
Development Economics
World Bank Institute
SUB TOTAL
4. EXPECTED FUNDING FROM KNOWLEDGE COUNCIL
5. OPERATIONAL UNITS SUBTOTAL
6. FINANCE PROGRAMS
Treasurer's
Controller's
Concessional Finance and Global Partnerships
Corporate Finance and Credit Risk
Finance CIO Office
Chief Risk Office
SUB TOTAL
7. ADMINSTRATION PROGRAMS
Human Resources
Information Solutions Group
General Services and Facilities
SUB TOTAL
8. CORPORATE PROGRAMS
Office of the President
Managing Directors
IDA IFC Secretariat
Office of Evaluation and Suspension
External Affairs
Internal Audit
Legal Services
Conflict Resolution System
Integrity Vice Presidency
Office of Ethics and Business Conduct
Administrative Tribunal
Sanctions Board
SUB TOTAL
9. FINANCE, ADMINISTRATION AND CORPORATE SUBTOTAL
ADMINISTRATIVE PROGRAMS 1/
0.2
3.3
2.8
6.3
143.5
41.5
13.8
7.7
0.2
63.2
9.7
20.7
34.4
64.7
0.5
1.0
2.7
4.8
2.0
3.5
14.5
142.5
43.1
52.0
52.1
147.2
11.2
1,399.3
47.3
36.3
16.3
20.2
120.1
67.1
69.4
125.7
262.2
5.6
7.9
0.3
1.6
34.4
9.4
31.1
10.3
16.8
117.4
499.6
286.0
35.4
1.1
2.7
0.9
40.0
59.1
38.7
29.7
31.8
159.3
1,898.9
17.2
18.9
21.1
13.1
17.2
9.7
97.2
-
-
-
-
-
-
-
BETF
FY11 Plan
Reimb.
330.0
151.0
167.9
173.3
100.6
145.4
13.4
1,081.5
BB
2,185.0
5.6
7.9
0.8
1.6
35.4
12.1
35.9
12.2
20.3
131.9
642.1
76.8
90.1
160.0
326.9
88.8
50.1
24.0
20.4
183.3
43.3
55.3
54.9
153.5
11.2
1,542.8
94.4
39.8
32.4
32.7
199.3
347.2
170.0
189.0
186.4
117.7
155.0
13.4
1,178.8
All
Funds
1,949.5
5.7
9.6
1.6
35.0
9.6
34.0
4.1
16.7
4.7
1.6
1.0
123.6
511.6
68.8
53.7
126.6
249.1
30.3
38.0
14.3
20.7
34.4
1.2
138.9
44.6
51.6
51.3
147.5
13.0
1,437.9
60.4
41.4
29.7
31.7
163.2
337.3
158.1
171.6
178.9
102.3
152.3
13.7
1,114.2
BB
299.0
0.9
2.7
5.6
0.9
3.9
1.1
0.4
15.5
150.2
7.1
20.5
38.9
66.4
45.2
13.8
7.9
0.7
0.4
0.4
68.3
0.3
1.6
1.5
3.4
148.8
33.6
1.4
1.5
0.7
37.2
17.2
18.0
29.7
12.1
19.2
12.1
108.3
625.8
1.0
3.7
4.7
24.5
19.3
19.3
0.1
0.4
0.5
2.4
23.9
32.6
59.0
601.4
121.7
33.4
36.5
18.4
209.9
116.4
90.8
24.0
26.5
29.6
45.2
332.5
BETF
FY12 Plan
Reimb.
2,874.4
5.7
9.6
1.6
36.9
12.3
43.3
5.1
20.5
5.7
2.0
1.0
143.7
686.2
95.2
74.2
165.5
334.8
75.7
51.8
22.5
21.3
34.8
1.6
207.7
47.4
77.1
85.4
209.8
13.0
2,188.1
215.7
76.1
67.7
50.8
410.3
470.9
266.8
225.3
217.5
151.1
209.7
13.7
1,555.0
All
Funds
1,972.8
5.7
9.0
1.6
37.9
8.8
22.8
4.0
15.9
4.8
1.7
1.0
113.2
548.8
62.9
127.7
112.8
303.4
26.8
34.5
14.3
21.1
32.9
2.7
132.2
43.5
48.9
47.8
140.2
7.2
1,424.0
51.4
36.5
26.0
27.3
141.2
338.8
160.9
173.0
177.6
105.0
150.8
13.9
5.2
10.3
1,135.4
BB
319.2
1.5
2.6
5.8
0.9
4.7
1.1
0.4
17.0
157.8
7.2
22.2
38.9
68.3
47.6
14.6
8.6
0.8
0.4
0.4
72.5
0.1
2.7
1.5
4.4
161.4
34.8
3.2
1.7
0.3
40.0
22.6
16.8
32.3
13.1
22.0
10.3
117.0
631.1
1.6
3.4
5.1
25.6
20.0
20.0
(0.1)
(0.0)
0.7
0.6
2.5
24.6
25.0
52.1
605.4
134.1
37.6
38.0
19.3
229.0
114.3
87.4
24.6
23.6
30.0
44.4
324.4
BETF
FY13 Plan
Reimb.
2,923.1
5.7
9.0
1.6
41.1
11.4
32.0
4.9
20.6
5.8
2.1
1.0
135.2
732.3
90.1
149.9
151.7
391.7
74.3
49.1
23.6
21.9
33.3
3.1
205.4
46.1
76.3
74.2
196.6
7.2
2,190.8
220.3
77.3
65.7
46.9
410.2
475.7
265.0
229.8
214.4
157.0
205.5
13.9
5.2
10.3
1,576.8
All
Funds
1,982.0
5.7
11.5
1.6
38.0
8.8
22.9
4.0
15.8
4.8
1.7
1.4
116.3
556.2
62.3
130.6
114.2
307.1
27.3
35.8
14.3
20.6
32.2
2.7
132.9
45.2
49.2
48.3
142.7
0.4
1,425.8
54.2
36.6
26.9
28.9
146.6
343.7
164.8
175.1
179.2
106.8
152.1
13.9
0.5
0.1
1,136.1
BB
318.9
1.5
2.5
5.7
0.9
4.7
1.1
0.4
16.9
157.5
7.2
22.2
38.8
68.2
47.6
14.6
8.6
0.8
0.4
0.4
72.4
0.1
2.7
1.5
4.4
161.4
34.8
3.2
1.7
0.3
40.0
22.6
16.8
32.3
13.1
22.0
10.3
117.0
Reimb.
625.8
1.0
3.7
4.7
24.5
19.3
19.3
0.1
0.4
0.5
2.4
23.9
32.6
59.0
601.4
121.7
33.4
36.5
18.4
209.9
116.4
90.8
24.0
26.5
29.6
45.2
332.5
BETF
FY13 Budget Remap
2,926.8
5.7
11.5
1.6
40.5
11.3
32.4
5.0
20.5
5.8
2.1
1.4
137.9
738.2
88.7
152.7
153.1
394.5
75.0
50.5
23.4
21.4
32.6
3.1
205.8
47.7
75.8
82.5
206.1
0.4
2,188.5
210.6
73.1
65.0
47.6
396.4
482.7
272.4
231.4
218.8
158.3
207.6
13.9
0.5
0.1
1,585.6
All
Funds
2,026.4
5.6
14.1
1.6
37.5
8.6
22.9
4.0
15.5
4.7
1.7
1.7
117.7
580.0
61.4
146.4
116.0
323.8
28.1
36.1
15.0
19.7
37.0
2.6
138.5
46.0
50.0
51.1
147.1
1,446.4
56.4
36.3
26.6
27.8
147.0
348.6
168.2
174.7
179.5
110.3
151.1
13.9
6.0
1,152.3
BB
335.6
1.0
2.5
5.6
0.9
4.1
1.1
0.4
15.6
159.9
8.0
23.1
38.8
69.8
49.5
14.8
9.1
0.3
0.4
0.4
74.5
0.0
1.8
1.0
2.9
175.7
42.9
3.7
1.3
0.6
48.5
21.0
18.2
34.0
14.4
23.0
13.8
124.3
Reimb.
619.4
0.8
3.6
4.4
22.7
17.6
17.6
0.1
0.5
0.7
2.8
20.8
35.7
59.2
596.7
108.4
41.9
36.2
15.4
201.9
117.3
91.9
25.6
27.3
26.4
47.1
335.6
BETF
FY14 Plan ($FY13)
2,981.4
5.6
14.1
1.6
39.4
11.1
32.1
4.9
19.6
5.7
2.1
1.7
137.7
762.6
86.9
169.5
154.8
411.2
77.8
50.8
24.6
20.0
37.5
3.0
213.7
48.8
72.5
87.9
209.2
2,218.8
207.7
81.9
64.0
43.7
397.4
486.8
278.3
234.3
221.1
159.7
212.0
13.9
6.0
1,612.2
All
Funds
2,060.3
5.7
14.3
1.6
37.9
8.8
23.3
4.0
15.8
4.7
1.7
1.7
119.6
589.4
62.5
149.0
117.8
329.3
28.6
36.2
15.3
20.0
37.7
2.7
140.5
46.8
50.9
52.1
149.8
1,470.9
57.4
37.0
27.0
28.3
149.7
355.8
172.1
177.0
182.2
112.2
151.9
14.2
6.1
1,171.4
BB
341.0
1.0
2.5
5.7
0.9
4.2
1.1
0.4
15.8
162.5
8.1
23.5
39.4
71.0
50.3
15.0
9.2
0.4
0.4
0.4
75.7
0.0
1.8
1.1
2.9
178.4
43.5
3.8
1.3
0.6
49.2
21.3
18.5
34.5
14.6
23.4
14.0
126.3
Reimb.
629.2
0.9
3.6
4.5
23.0
17.8
17.8
0.2
0.5
0.7
2.8
21.1
36.3
60.2
606.2
110.2
42.6
36.8
15.6
205.1
119.1
93.4
26.0
27.7
26.9
47.9
340.9
BETF
FY14 Plan ($FY14)
3,030.6
5.7
14.3
1.6
39.8
11.3
32.6
5.0
20.0
5.8
2.1
1.7
139.9
775.0
88.5
172.5
157.2
418.2
79.1
51.2
25.0
20.4
38.2
3.1
216.9
49.6
73.8
89.4
212.8
2,255.6
211.1
83.3
65.1
44.5
404.0
496.2
284.1
237.5
224.5
162.4
213.7
14.2
6.1
1,638.7
All
Funds
FY14 BUDGET DOCUMENT
Table E.2: Program Cost Summary – All Funds – FY12-16
($ million)
- 64 -
7/
6/
5/
4/
3/
2/
1/
2,301.5
167.2
524.0
250.8
315.9
25.7
-
17.5
25.7
1.2
7.0
-
290.2
4.2
-
4.2
-
2.1
2.1
-
2.1
0.8
1.2
-
-
-
-
-
BETF
FY11 Plan
Reimb.
2,619.4
167.2
551.7
250.8
133.7
84.5
15.5
33.7
-
2,067.7
(119.1)
17.7
-
1.9
1.9
14.6
(187.3)
35.9
All
Funds
2,386.3
161.0
563.0
299.4
(23.3)
102.6
85.2
15.0
25.8
1,823.3
1,823.3
(129.1)
23.2
-
2.8
2.8
2.6
16.4
(187.5)
16.3
BB
333.0
30.8
-
23.3
30.8
0.1
7.3
-
302.3
3.2
-
3.2
-
628.5
2.7
-
2.7
0.8
0.5
1.4
-
625.8
-
-
-
BETF
FY12 Plan
Reimb.
3,347.8
161.0
596.5
299.4
136.1
86.0
15.6
34.5
-
2,751.3
(125.8)
23.2
-
2.8
2.8
2.6
16.4
(184.3)
16.3
All
Funds
2,499.7
161.0
628.9
357.9
(23.0)
110.1
90.6
15.6
26.8
1,870.8
1,870.8
(3.5)
(104.9)
40.3
-
2.8
2.8
16.7
(154.2)
(4.1)
BB
353.4
30.6
-
23.0
30.6
0.0
7.6
-
322.8
3.6
0.9
-
2.7
-
660.2
2.6
-
2.6
0.7
0.5
1.4
-
657.5
0.1
0.1
-
26.4
26.4
-
BETF
FY13 Plan
Reimb.
3,513.3
161.0
662.2
357.9
143.3
91.4
16.1
35.8
-
2,851.1
(3.5)
(101.2)
41.3
-
26.4
2.8
29.2
16.7
(151.5)
(4.1)
All
Funds
2,499.9
161.0
628.7
357.9
(23.1)
109.8
90.7
15.6
26.5
1,871.2
1,871.2
(3.5)
(113.6)
39.5
-
2.8
2.8
0.0
16.7
(162.1)
(4.1)
BB
359.1
30.6
-
23.1
30.6
0.0
7.5
-
328.5
9.6
3.6
-
5.9
-
Reimb.
652.9
1.7
-
1.7
0.4
1.3
-
651.2
-
-
25.4
25.4
-
BETF
FY13 Budget Remap
3,511.9
161.0
661.0
357.9
142.1
Budgets for Staff Retirement and Grant-M aking Facilities have been adjusted from nominal dollars to FY13$s and FY14$s using the corporate price factors of 1.59% for FY14, 1.78% for FY15 and 2.41% for FY16.
Includes Staff Retirement Plan and Trust (SRP), Retired Staff Benefits Plan and Trust (RSBP) and Post-Employment Benefits Plan (PEBP)
Board's work program is fully funded by Bank Budget independent of any cost sharing revenues received from IFC/M IGA
FY14 plan for EDs' budget in FY14$s is estimated using the HQ unit price factor of 1.82%. The actual price increase for EDs' budget will be determined subject to the decision fo the Joint Committee on Remuneration and subsequent approval by the Board of Governors.
Includes anticipated redeployments from Productivity Tax.
Now includes Staff Separation Fund which was included in the Centrally-M anaged Overhead & Benefits in the FY13 Budget Document and presented as a separate line in earlier documents as well as the Publications Escrow and Foreign Exchange Contingency.
91.1
15.7
35.4
-
2,850.9
(3.5)
(104.0)
43.1
-
25.4
2.8
28.1
0.0
16.7
(156.2)
(4.1)
All
Funds
Figures may not add due to rounding. BB refers to Bank Budget, Reimb. to Reimbursable Programs and BETF to Bank-Executed Trust Funds. FY12 and FY13 Remap numbers are based on actuals. FY14 to FY16 numbers are the mid-point of latest Unit and Corporate Projections.
27. TOTAL WORK PROGRAM FUNDING
25. GRANT-MAKING FACILITIES 7/
26. BELOW-THE-LINE WORK PROGRAM FUNDING
24. STAFF RETIREMENT ACCOUNTS
(17.5)
106.0
Less: Reimbursables for Boards 5/
IBRD/IDA SHARE OF BUDGET FOR BOARDS, SEC & IEG
6/ 7/
83.7
14.4
25.5
1,777.5
Boards 4/
Corporate Secretariat
Independent Evaluation Group
1,777.5
(123.3)
PLANNED SAVINGS (UNALLOCATED) 3/
SUB TOTAL
22. O/W NET ADMINISTRATIVE BUDGET
23. BOARDS, SEC & IEG
17.7
-
INSTITUTIONAL PROGRAMS 2/
CORPORATE PROJECTION ADJUSTMENTS
1.9
1.9
14.6
(191.5)
35.9
BB
21. ABOVE-THE-LINE WORK PROGRAM FUNDING
17.
18.
19.
20.
11. SECRETARIATS/ORGANIZATIONS HOSTED BY THE WORLD BANK
Global Environment Facility Secretariat
International Centre for the Settlement of Investment Disputes
SUB TOTAL
12. FUNDS YET TO BE ALLOCATED
13. CONTINGENCY
14. BUSINESS CONTINUITY PLAN
15. CENTRALLY-MANAGED OVERHEAD & BENEFITS
16. HQ REAL ESTATE PROPOSAL
ADMINISTRATIVE PROGRAMS 1/
2,508.8
113.4
592.5
369.7
(20.2)
109.4
87.8
15.7
26.1
1,916.3
1,916.3
(113.0)
38.5
-
2.9
2.9
10.0
16.7
(174.5)
(3.7)
BB
400.5
28.4
-
20.2
28.4
0.6
7.5
-
372.1
36.5
3.5
26.4
6.6
-
Reimb.
650.7
3.0
-
3.0
1.0
2.0
-
647.7
-
-
28.3
28.3
-
BETF
FY14 Plan ($FY13)
3,533.6
113.4
623.9
369.7
140.8
88.8
16.3
35.6
-
2,909.7
(102.9)
42.1
-
28.3
2.9
31.2
10.0
16.7
(168.0)
(3.7)
All
Funds
FY14 BUDGET DOCUMENT
- 65 -
10. ALL UNITS TOTAL
1. REGIONAL PROGRAMS
Africa
East Asia and Pacific
Europe and Central Asia
Latin America and Caribbean
Middle East and North Africa
South Asia
Bank/FAO Cooperative Program
Regional Fund for Operationalizing Targets
Corporate Contingency Fund for Regions
Corporate Priorities Fund for Regions
SUB TOTAL
2. NETWORK PROGRAMS
Sustainable Development Network
Financial and Private Sector Development
Human Development
Poverty Reduction and Economic Management
SUB TOTAL
3. OTHER OPERATIONAL PROGRAMS
Operations Policy & Country Services
Development Economics
World Bank Institute
SUB TOTAL
4. EXPECTED FUNDING FROM KNOWLEDGE COUNCIL
5. OPERATIONAL UNITS SUBTOTAL
6. FINANCE PROGRAMS
Treasurer's
Controller's
Concessional Finance and Global Partnerships
Corporate Finance and Credit Risk
Finance CIO Office
Chief Risk Office
SUB TOTAL
7. ADMINSTRATION PROGRAMS
Human Resources
Information Solutions Group
General Services and Facilities
SUB TOTAL
8. CORPORATE PROGRAMS
Office of the President
Managing Directors
IDA IFC Secretariat
Office of Evaluation and Suspension
External Affairs
Internal Audit
Legal Services
Conflict Resolution System
Integrity Vice Presidency
Office of Ethics and Business Conduct
Administrative Tribunal
Sanctions Board
SUB TOTAL
9. FINANCE, ADMINISTRATION AND CORPORATE SUBTOTAL
ADMINISTRATIVE PROGRAMS 1/
0.1
2.7
1.5
4.4
161.4
47.6
14.6
8.6
0.8
0.4
0.4
72.4
7.2
22.2
38.8
68.2
1.5
2.5
5.7
0.9
4.7
1.1
0.4
16.9
157.5
45.2
49.2
48.3
142.7
0.4
1,425.8
27.3
35.8
14.3
20.6
32.2
2.7
132.9
62.3
130.6
114.2
307.1
5.7
11.5
1.6
38.0
8.8
22.9
4.0
15.8
4.8
1.7
1.4
116.3
556.2
318.9
34.8
3.2
1.7
0.3
40.0
54.2
36.6
26.9
28.9
146.6
1,982.0
22.6
16.8
32.3
13.1
22.0
10.3
117.0
Reimb.
625.8
1.0
3.7
4.7
24.5
19.3
19.3
0.1
0.4
0.5
2.4
23.9
32.6
59.0
601.4
121.7
33.4
36.5
18.4
209.9
116.4
90.8
24.0
26.5
29.6
45.2
332.5
BETF
FY13 Budget Remap
343.7
164.8
175.1
179.2
106.8
152.1
13.9
0.5
0.1
1,136.1
BB
2,926.8
5.7
11.5
1.6
40.5
11.3
32.4
5.0
20.5
5.8
2.1
1.4
137.9
738.2
88.7
152.7
153.1
394.5
75.0
50.5
23.4
21.4
32.6
3.1
205.8
47.7
75.8
82.5
206.1
0.4
2,188.5
210.6
73.1
65.0
47.6
396.4
482.7
272.4
231.4
218.8
158.3
207.6
13.9
0.5
0.1
1,585.6
All
Funds
2,026.4
5.6
14.1
1.6
37.5
8.6
22.9
4.0
15.5
4.7
1.7
1.7
117.7
580.0
61.4
146.4
116.0
323.8
28.1
36.1
15.0
19.7
37.0
2.6
138.5
46.0
50.0
51.1
147.1
1,446.4
56.4
36.3
26.6
27.8
147.0
348.6
168.2
174.7
179.5
110.3
151.1
13.9
6.0
1,152.3
BB
335.6
1.0
2.5
5.6
0.9
4.1
1.1
0.4
15.6
159.9
8.0
23.1
38.8
69.8
49.5
14.8
9.1
0.3
0.4
0.4
74.5
0.0
1.8
1.0
2.9
175.7
42.9
3.7
1.3
0.6
48.5
21.0
18.2
34.0
14.4
23.0
13.8
124.3
Reimb.
619.4
0.8
3.6
4.4
22.7
17.6
17.6
0.1
0.5
0.7
2.8
20.8
35.7
59.2
596.7
108.4
41.9
36.2
15.4
201.9
117.3
91.9
25.6
27.3
26.4
47.1
335.6
BETF
FY14 Plan ($FY13)
2,981.4
5.6
14.1
1.6
39.4
11.1
32.1
4.9
19.6
5.7
2.1
1.7
137.7
762.6
86.9
169.5
154.8
411.2
77.8
50.8
24.6
20.0
37.5
3.0
213.7
48.8
72.5
87.9
209.2
2,218.8
207.7
81.9
64.0
43.7
397.4
486.8
278.3
234.3
221.1
159.7
212.0
13.9
6.0
1,612.2
All
Funds
2,060.3
5.7
14.3
1.6
37.9
8.8
23.3
4.0
15.8
4.7
1.7
1.7
119.6
589.4
62.5
149.0
117.8
329.3
28.6
36.2
15.3
20.0
37.7
2.7
140.5
46.8
50.9
52.1
149.8
1,470.9
57.4
37.0
27.0
28.3
149.7
355.8
172.1
177.0
182.2
112.2
151.9
14.2
6.1
1,171.4
BB
341.0
1.0
2.5
5.7
0.9
4.2
1.1
0.4
15.8
162.5
8.1
23.5
39.4
71.0
50.3
15.0
9.2
0.4
0.4
0.4
75.7
0.0
1.8
1.1
2.9
178.4
43.5
3.8
1.3
0.6
49.2
21.3
18.5
34.5
14.6
23.4
14.0
126.3
Reimb.
629.2
0.9
3.6
4.5
23.0
17.8
17.8
0.2
0.5
0.7
2.8
21.1
36.3
60.2
606.2
110.2
42.6
36.8
15.6
205.1
119.1
93.4
26.0
27.7
26.9
47.9
340.9
BETF
FY14 Plan ($FY14)
3,030.6
5.7
14.3
1.6
39.8
11.3
32.6
5.0
20.0
5.8
2.1
1.7
139.9
775.0
88.5
172.5
157.2
418.2
79.1
51.2
25.0
20.4
38.2
3.1
216.9
49.6
73.8
89.4
212.8
2,255.6
211.1
83.3
65.1
44.5
404.0
496.2
284.1
237.5
224.5
162.4
213.7
14.2
6.1
1,638.7
All
Funds
2,050.7
5.7
14.3
1.6
37.7
8.8
23.1
4.0
15.8
4.7
1.7
1.7
119.2
589.6
61.5
153.2
115.8
330.4
28.6
36.2
13.7
20.0
38.7
2.7
140.0
43.1
50.9
52.1
146.0
1,461.1
56.2
37.0
26.6
27.8
147.6
329.5
1.0
2.5
5.7
1.0
4.2
1.1
0.4
15.9
163.9
7.9
23.8
39.4
71.1
52.0
14.6
9.1
0.4
0.4
0.4
76.9
0.0
1.8
0.9
2.7
165.6
36.9
2.2
1.3
0.1
40.6
20.8
17.8
34.5
13.4
23.4
12.4
122.3
Reimb.
625.7
0.9
2.6
3.5
22.6
18.3
18.3
0.2
0.6
0.7
2.8
21.3
36.7
60.8
603.1
105.2
43.4
35.4
15.9
199.9
119.0
94.1
26.5
26.0
27.4
49.4
342.4
BETF
3,005.8
5.7
14.3
1.6
39.7
11.3
31.4
5.0
20.0
5.8
2.1
1.7
138.6
776.0
87.7
177.0
155.2
419.9
80.8
50.8
23.4
20.4
39.1
3.1
217.5
45.8
74.0
89.7
209.5
2,229.8
198.3
82.6
63.3
43.9
388.0
495.1
283.8
238.0
221.6
159.8
213.7
14.2
6.1
1,632.3
All
Funds
FY15 Indicative ($FY14)
355.3
172.0
177.0
182.2
109.0
151.9
14.2
6.1
1,167.5
BB
2,018.7
5.7
14.3
1.6
36.5
8.8
22.9
4.0
15.8
4.7
1.7
1.7
117.8
582.3
58.4
150.3
115.8
324.5
28.6
36.2
13.7
20.0
38.7
2.7
140.0
41.6
49.2
51.0
141.9
1,436.5
53.6
37.0
26.6
27.8
145.0
325.0
1.0
2.5
5.7
1.0
4.2
1.1
0.4
15.9
164.5
7.8
23.8
39.4
71.0
53.3
14.6
8.9
0.4
0.4
77.6
0.0
1.8
0.8
2.7
160.5
33.2
2.2
1.2
0.1
36.7
20.2
16.7
34.5
12.9
24.8
12.1
121.2
Reimb.
617.5
0.1
2.6
2.7
22.2
18.7
18.7
0.2
0.6
0.7
2.7
21.2
31.9
55.8
595.3
102.9
42.4
35.8
15.3
196.3
119.0
93.5
26.9
26.2
28.0
49.7
343.2
BETF
2,961.2
5.7
14.3
1.6
37.7
11.3
31.2
5.0
20.0
5.8
2.1
1.7
136.4
768.9
85.0
174.1
155.2
414.3
82.1
50.8
23.1
20.0
39.1
3.1
218.3
44.3
72.2
83.7
200.3
2,192.3
189.7
81.6
63.6
43.2
378.0
485.5
281.7
233.3
220.3
160.3
212.7
14.2
6.1
1,614.0
All
Funds
FY16 Indicative ($FY14)
346.2
171.6
172.0
181.1
107.5
150.9
14.2
6.1
1,149.6
BB
FY14 BUDGET DOCUMENT
- 66 -
7/
6/
5/
4/
3/
2/
1/
110.5
645.1
3,660.6
649.1
452.6
2,558.9
3,643.1
657.1
433.0
2,553.0
3,616.5
661.1
407.0
2,548.4
3,533.6
650.7
400.5
2,508.8
3,511.9
652.9
359.1
2,499.9
Now includes Staff Separation Fund which was included in the Centrally-M anaged Overhead & Benefits in the FY13 Budget Document and presented as a separate line in earlier documents as well as the Publications Escrow and Foreign Exchange Contingency.
Budgets for Staff Retirement and Grant-M aking Facilities have been adjusted from nominal dollars to FY13$s and FY14$s using the corporate price factors of 1.59% for FY14, 1.78% for FY15 and 2.41% for FY16.
Includes Staff Retirement Plan and Trust (SRP), Retired Staff Benefits Plan and Trust (RSBP) and Post-Employment Benefits Plan (PEBP)
Board's work program is fully funded by Bank Budget independent of any cost sharing revenues received from IFC/M IGA
FY14 plan for EDs' budget in FY14$s is estimated using the HQ unit price factor of 1.82%. The actual price increase for EDs' budget will be determined subject to the decision fo the Joint Committee on Remuneration and subsequent approval by the Board of Governors.
Includes anticipated redeployments from Productivity Tax.
392.3
2.2
-
142.3
90.2
16.6
35.5
28.9
-
2.2
1.0
1.2
110.5
614.0
392.3
20.6
28.9
0.6
7.7
113.1
638.1
382.8
(20.6)
111.2
89.2
16.0
26.6
2.2
-
142.3
90.2
16.6
35.5
28.9
-
2.2
1.0
1.2
113.1
607.0
382.8
20.6
28.9
0.6
7.7
115.0
633.6
375.6
(20.6)
111.2
89.2
16.0
26.6
3.0
-
143.0
90.2
16.6
36.2
28.9
-
3.0
1.0
2.0
115.0
601.7
375.6
20.6
28.9
0.6
7.7
113.4
623.9
369.7
(20.6)
111.1
89.2
16.0
26.6
3.0
-
140.8
88.8
16.3
35.6
28.4
-
3.0
1.0
2.0
113.4
592.5
369.7
20.2
28.4
0.6
7.5
161.0
661.0
357.9
(20.2)
109.4
87.8
15.7
26.1
1.7
-
142.1
91.1
15.7
35.4
30.6
-
1.7
0.4
1.3
161.0
628.7
357.9
23.1
30.6
0.0
7.5
Figures may not add due to rounding. BB refers to Bank Budget, Reimb. to Reimbursable Programs and BETF to Bank-Executed Trust Funds. FY12 and FY13 Remap numbers are based on actuals. FY14 to FY16 numbers are the mid-point of latest Unit and Corporate Projections.
27. TOTAL WORK PROGRAM FUNDING
25. GRANT-MAKING FACILITIES 7/
26. BELOW-THE-LINE WORK PROGRAM FUNDING
24. STAFF RETIREMENT ACCOUNTS
(23.1)
109.8
Less: Reimbursables for Boards 5/
IBRD/IDA SHARE OF BUDGET FOR BOARDS, SEC & IEG
6/ 7/
90.7
15.6
26.5
Boards
Corporate Secretariat
Independent Evaluation Group
1,944.9
1,946.0
-
-
-
1,946.7
-
-
-
1,916.3
-
-
-
1,871.2
4/
22. O/W NET ADMINISTRATIVE BUDGET
23. BOARDS, SEC & IEG
3,015.5
646.8
423.8
1,944.9
3,005.0
(2.4)
21.9
41.2
88.7
654.8
404.1
1,946.0
2,982.9
658.0
378.1
1,946.7
2,909.7
647.7
372.1
1,916.3
2,850.9
651.2
328.5
1,871.2
21. ABOVE-THE-LINE WORK PROGRAM FUNDING
-
29.4
2.9
32.3
10.2
17.0
(130.7)
(2.0)
All
Funds
-
3.3
88.7
29.4
29.4
-
BETF
98.7
37.9
-
6.7
-
Reimb.
FY16 Indicative ($FY14)
2.9
2.9
10.2
17.0
(137.4)
(2.0)
BB
(2.4)
(76.8)
41.2
64.6
29.2
2.9
32.1
10.2
17.0
(149.4)
(3.3)
All
Funds
(13.3)
(33.0)
-
3.3
64.6
29.2
29.2
-
BETF
74.6
37.9
-
6.7
-
Reimb.
FY15 Indicative ($FY14)
2.9
2.9
10.2
17.0
(156.1)
(3.3)
BB
(13.3)
(107.6)
42.8
26.8
28.8
2.9
31.7
10.2
17.0
(172.5)
(3.8)
All
Funds
(79.4)
-
37.1
(116.5)
-
28.8
28.8
-
BETF
(102.9)
3.6
26.8
6.7
-
Reimb.
FY14 Plan ($FY14)
-
39.2
-
2.9
2.9
10.2
17.0
(179.2)
(3.8)
BB
36.5
42.1
-
28.3
2.9
31.2
10.0
16.7
(168.0)
(3.7)
All
Funds
(113.0)
-
28.3
28.3
-
BETF
(3.5)
(104.0)
3.5
26.4
6.6
-
Reimb.
FY14 Plan ($FY13)
-
38.5
-
2.9
2.9
10.0
16.7
(174.5)
(3.7)
BB
9.6
43.1
-
25.4
2.8
28.1
0.0
16.7
(156.2)
(4.1)
All
Funds
(3.5)
(113.6)
-
25.4
25.4
-
BETF
PLANNED SAVINGS (UNALLOCATED) 3/
SUB TOTAL
17.
18.
19.
20.
3.6
-
5.9
-
Reimb.
FY13 Budget Remap
39.5
-
2.8
2.8
0.0
16.7
(162.1)
(4.1)
BB
INSTITUTIONAL PROGRAMS 2/
CORPORATE PROJECTION ADJUSTMENTS
11. SECRETARIATS/ORGANIZATIONS HOSTED BY THE WORLD BANK
Global Environment Facility Secretariat
International Centre for the Settlement of Investment Disputes
SUB TOTAL
12. FUNDS YET TO BE ALLOCATED
13. CONTINGENCY
14. BUSINESS CONTINUITY PLAN
15. CENTRALLY-MANAGED OVERHEAD & BENEFITS
16. HQ REAL ESTATE PROPOSAL
ADMINISTRATIVE PROGRAMS 1/
FY14 BUDGET DOCUMENT
FY14 BUDGET DOCUMENT
ANNEX F: FY14-16 ALLOCATIONS FOR PRIORITY INITIATIVES
VPU
Short Description of Funded Request
Priority Category
FY14 Decisions
FY15 Indicative
Decisions
FY16 Indicative
Decisions
MDGRP
CHANGE MANAGEMENT
Cha nge Agenda
5,077,000
5,077,000
5,077,000
MDGRP
CHANGE DESIGN (CONSULTANTS)
Cha nge Agenda
2,500,000
0
0
AFRVP
SCALING UP SUPPORT TO SUDAN
FCS
1,000,000
1,000,000
1,000,000
AFRVP
SCALING UP SUPPORT TO ZIMBABWE, GUINEA, SOMALIA
FCS
2,500,000
2,000,000
2,000,000
AFRVP
SCALING UP SUPPORT TO SAHEL AND GREAT LAKES
FCS
1,000,000
1,000,000
1,000,000
EAPVP
SCALING UP SUPPORT TO MYANMAR
FCS
3,500,000
6,000,000
7,000,000
LCRVP
SCALING UP SUPPORT TO HAITI
FCS
800,000
800,000
800,000
MNAVP
SCALING UP SECTOR SUPPORT IN YEMEN AND LIBYA
FCS
950,000
950,000
950,000
MNAVP
IRAQ TRANSITION FROM TF TO RAS BUSINESS MODEL
FCS
800,000
600,000
400,000
MNAVP
PHYSICAL SECURITY SUPPORT
FCS
2,650,000
2,650,000
2,650,000
OPSVP
NAIROBI HUB FCS SUPPORT TO REGIONS
FCS
1,500,000
1,500,000
1,500,000
IMTVP
IT SUPPORT FOR FCS
FCS
1,000,000
1,000,000
1,000,000
WBIVP
INNOVATION FUND (WBI)
Innova ti on
3,000,000
3,000,000
3,000,000
IMTVP
BANDWIDTH - ENHANCED COUNTRY OFFICE CONNECTIVITY
IT - Reform Agenda
12,972,000
12,972,000
12,972,000
IMTVP
DEVELOP CORPORATE DROP BOX
IT - Reform Agenda
1,400,000
1,200,000
1,200,000
IMTVP
NEW EMAIL SYSTEM
IT - Reform Agenda
1,120,000
1,906,000
0
HRSVP
COMPENSATION REFORM
Moderni za ti on
700,000
350,000
0
HRSVP
HR SYSTEM RENEWAL PROGRAM (Peopl eSoft)
Moderni za ti on
451,000
198,000
271,000
LEGVP
REFORM AGENDA (ADM Fra mework, P&P Fra mework a nd Voi ce Reform)
Moderni za ti on
424,883
240,385
51,587
OPSVP
PROCUREMENT REVIEW REFORM
Moderni za ti on
900,000
0
0
OPSVP
SAFEGUARDS REFORM (EXTERNAL CONSULTATIONS)
Moderni za ti on
1,600,000
400,000
0
SDNVP
ENVIRONMENTAL AND SOCIAL SAFEGUARD POLICIES
Moderni za ti on
525,000
525,000
0
EXTVP
BUILDING SUPPORT FOR WBG REFORM, STRATEGY, SYNERGY WORK
Moderni za ti on
150,000
150,000
0
HRSVP
HRS INTEGRATION - WBG SYNERGY
150,000
150,000
0
CFPVP
FUNDING FOR IDA 17 REPLENISHMENT
500,000
0
0
EXTVP
CORPORATE CAMPAIGNS - IDA 17 REPLENISHMENT
200,000
0
0
CTR
TAX RESOURCES FOR SRP TAX SUPPLEMENT.
301,100
301,100
301,100
GSDDR
INCREASED SECURITY COST (UN FIELD SUPPORT)
146,000
146,000
146,000
GSDDR
INSTITUTIONAL SPACE REALIGNMENT PROGRAM - FY14 MOVE COSTS
900,000
0
0
SBS
RESOURCES FOR EXTERNAL JUDGES & SR AND JR COUNSEL
350,000
350,000
350,000
IMTVP
INCREMENTAL DEPRECIATION FY14-FY16 AIP (ALL)
125,000
2,341,641
9,669,140
Va ri ous
CAPITALIZATION OF STAFF COST - FY14-16 AIP
-5,200,000
-5,000,000
-5,000,000
IMTVP
INCREMENTAL ADMIN FY14-FY16 AIP (BASE CASE; DEF MAINTENANCE; NEW
ADMIN)
4,281,200
5,833,800
4,876,800
IMTVP
SAP LICENSES
1,200,000
1,200,000
1,200,000
IMTVP
BASIC PACKAGE: 3 NEW COUNTRY OFFICES CONNECTIVITY
450,000
450,000
450,000
MDGRP
MDI INCREASED STAFFING
TREVP
COLLATERAL MANAGEMENT AGENT SERVICES
TREVP
REGULATORY REFORM AND CHANGING MARKETING PRACTICE
TREVP
INTERMEDIATION OF CATASTROPHE BOND PRODUCTS
DECVP
DEC FY14-16 OPERATIONALIZING POVERTY TARGETS
OPSVP
SCIENCE OF DELIVERY - CENTRAL COORDINATION & SUPPORT
Regi ons
OPERATIONALIZATION OF POVERTY TARGETS
SDNVP
GREENHOUSE GAS ACCOUNTING
Moderni za ti on
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
On-goi ng Bus i nes s
Cos t Pres s ures
Opera ti ona l i zi ng
Poverty Ta rgets
Opera ti ona l i zi ng
Poverty Ta rgets
Opera ti ona l i zi ng
Poverty Ta rgets
Opera ti ona l i zi ng
Poverty Ta rgets
Total
- 67 -
430,570
430,570
430,570
1,100,000
1,100,000
1,100,000
350,000
350,000
350,000
100,000
100,000
100,000
1,000,000
1,000,000
1,000,000
100,000
100,000
100,000
6,000,000
6,000,000
6,000,000
1,000,000
1,000,000
0
60,003,753
59,371,496
61,945,197
FY14 BUDGET DOCUMENT
ANNEX G: CAPITAL BUDGET
1. The total proposed capital budget for FY14 is $209.2 million, which is a 22.3 percent ($38.1 million)
increase over the Board approved FY13 capital budget of $171.1million. The increase is related to
investments in Technology and Systems ($28.4 million), Washington Facilities ($3.6 million) and
Country Office Facilities ($6.1 million). See Table G.1.
Table G.1: Capital Program Summary – Investment Schedule FY14-16
Capital Funds ($ Millions)
FY13
of which
FY16
Budget
Plan
Plan
80.5
59.4
108.9
65.1
53.1
IMT Investment Scale-Up Reserve
HQ Real Estate Proposal
H-Building Data Center Move
Facilities - Country Office
of which Global Footprint Set-aside
FY15
YTD
Facilities – Washington
2
Total Capital Budget (All Parts):
Percent Utilization (FY13 YTD Release/FY13 Approved)
1
FY14
Approved
Technology and Systems
of which
FY13
0.9
n/a
15.0
15.0
20.0
28.6
10.4
32.2
19.7
8.2
0.4
3.3
0.4
0.0
0.0
10.8
3.0
10.5
10.5
0.0
62.0
14.4
68.1
62.0
60.0
49.0
12.1
53.4
56.1
52.1
171.1
84.2
209.2
146.7
121.3
49.20%
1
Da ta on ca pi tal rel ea s e of funds a s of Ma y 23, 2012
2
Gl oba l Footpri nt Set-a s i de i s a n es tima te tha t takes i nto a ccount on-goi ng/a ntici pa ted decentra l i za tion reforms ,
co-l oca tion wi th IFC, rel oca tions a nd a cqui s i tion a nd outfi tti ng. Al l fi na l rel ea s es wi l l depend on outcome of
Gl oba l Foorpri nt Worki ng Group recommenda tions
THE CAPITAL PROGRAM FOR TECHNOLOGY AND SYSTEMS
2. The Information Management and Technology (IMT) Three-Year Strategy for FY11-13 and the
institutional new directions being articulated provide the selection framework for Technology and
Systems capital investments – a critical element of the Bank’s business modernization.
3. The FY14 Capital Budget for the Technology and Systems program is structured around the
following three (3) investment pools and a capital contingency reserve:
A. Base Case ($60.7 million). This investment pool includes capital investments that have already
been approved in prior years and for which some capital funding may have already been released
to initiate implementation. The revised FY14 base case capital funding request is distributed as
follows by lines of business:

Corporate ($3.0 million). This program includes corporate capital investments related to a
broad segment of business units including Executive Offices, Committee of Governance,
Justice and Sanctions, Administrative, HRS, and Independent units. The FY14 Base Capital
- 68 -
FY14 BUDGET DOCUMENT
Budget includes funding for HR renewal efforts in PeopleSoft re-implementation ($2.0
million), Transitioning Applications from Lotus Notes Platform ($0.5 million), and Case
Management System Platform ($0.4 million)

Finance ($20.9 million). This program covers the Finance Complex and GSD capital
investment portfolio. Major base investments for FY14 include: Numerix Integration Module
- Summit (earlier Valuation and Model Upgrade; $4.1million), Comprehensive Capital
Markets Workflow ($2.0 million), QRA Integrated Risk Framework ($1.5 million), eBusiness
Platform ($1.5 million), IDA Renewal: Enhance the IDA/MDRI modules in STAR ($1.3
million), New analytical and reporting systems to support liquidity management ($1.2
million), Comprehensive Platform for Financial Intermediary Funds ($1.0 million), Trust
Funds Operational Integration and Mainstreaming ($1.0 million), Trust Funds Share
Accounting ($0.8 million), and Cash Systems Replacement ($0.6 million).

Operations & Knowledge ($5.7 million). This program covers the capital investment
portfolio related to Regions, Network Anchors, and other operational business units plus
EXTVP. For FY14, the Base Capital Budget for the Operations and Knowledge includes
continued investments in knowledge management and collaboration applications ($2.0
million), lending modernization ($1.1 million), Trust Fund Operational Processes Integration
($0.8 million), and Revamping of Fiduciary Systems ($0.7million).

Shared Services ($31.1 million). This program encompasses three (3) distinct programs:
Enterprise Architecture, Technology Infrastructure and Engineering, and Strategic
Management.
o
Technology Infrastructure and Engineering ($18.4 million). FY14 base capital
investments include replenishment of IT Infrastructure for the Business Continuity Center
($5.1 million), and various cyclical replenishment of servers, communication switches,
UPS, and routers, data storage and backup infrastructure, and HQ network. Supplemental
funding for the Integrated Communications Platform is also included ($1.7 million).
o
Enterprise Architecture ($12.1 million). Notable FY14 base capital investments are for
on-going programs under Business Intelligence ($4.2 million), Investments in mobile
applications ($4.0 million), PC and desktop renewal ($1.9m), and Identity Credential and
Access Management ($1.9 million).
o
Information Security ($0.6 million). FY14 base capital investments include next
generation cyber security ($0.6 million).
B. Deferred Maintenance/Renewal ($4.9 million). This investment pool represents software and
hardware assets that are beyond their asset life and /or are ready for consideration to be renewed.
Notable FY14 proposed capital investments related to deferred maintenance are Correspondence
and Deliverables tracking ($1.5 million), Migration of large Applications from Lotus Note
platform ($1 million), HQ Wi-Fi Infrastructure Replenishment ($0.6 million), and SAP Backup
Replenishment ($0.4 million).
- 69 -
FY14 BUDGET DOCUMENT
C. New Investments ($28.3 million). This investment pool includes proposals for new investments.
Major new investments for FY14 include New email system($14.1 million), Smart Operations
Program ($2.3 million), Open information program ($2.3 million), Managed Print Services ($2.1
million), New intranet ($1.5 million), Search Improvements ($1.3 million), Increased Bandwidth
for improved connectivity with country offices ($1.2 million), and New virtual data center or
corporate “drop box” ($0.8 million).
D. IMT Strategic Program Reserve ($15 million). The FY14 capital budget includes a $15
million reserve for contingency of which $10 million is to cover the impact of the recent policy
change allowing the capitalization of staff time. The release of funds from the IMT reserve is
contingent upon:

Identification of business efficiencies that can be redeployed to fund the sustaining costs
in the Administrative Budget for added capital investments;

Assurance that the use of reserve was properly prioritized against known and potential
risk within the portfolio as a whole (e.g., scope changes and inadequate cost estimation);
and

Confirmation of sequencing of investments to align with actual implementation timing of
approved projects.
4. The IMT thematic organization provides an alternative perspective of the Technology and Systems
budget (see Table G.2). These themes serve to align strategic direction with the IMT Implementation
Agenda.
Table G.2: Thematic Organization and Programs – Investment Schedule FY14-16
Theme
Program
1 Modernization of Core Business Capabilities
Bank Operations and Knowledge Reforms
HR Renewal and Other Corporate Systems
Financial Systems Modernization
FY12
App'd
23.0
4.1
6.4
12.5
Capital Funds ($ Millions)
FY13
FY14
FY15
App'd
Plan
Plan
42.8
35.5
20.3
8.6
7.4
3.0
8.0
7.1
4.2
26.2
20.9
13.0
FY16
Plan
2.2
0.8
1.4
7.5
5.0
2.5
3.0
1.3
1.7
9.9
5.7
4.2
5.5
3.5
2.0
0.0
-
28.6
28.6
18.8
18.8
12.0
12.0
6.3
6.3
15.5
15.5
Subtotal Capital Release Base Case:
1.4
1.3
0.2
6.8
67.2
4.0
3.2
0.9
11.9
79.6
35.6
20.6
15.0
15.9
93.9
24.9
9.9
15.0
8.1
50.1
26.7
6.7
20.0
8.8
33.1
Subtotal IMT Scale-Up Reserve:
0.2
0.9
15.0
15.0
20.0
Total Capital Release:
67.3
80.5
108.9
65.1
53.1
2 Information Transparency and Access
Information Delivery
Strategic Business Intelligence
3 Productivity and Connectivity
Global Mobile Solutions
4 IMT Capacity Building
Standard Platform Leverage
IMT Scale-Up Reserve
5 Steady State Cyclical Re-Investment
- 70 -
FY14 BUDGET DOCUMENT
THE CAPITAL PROGRAM FOR WASHINGTON AND COUNTRY OFFICE FACILITIES
5. The total Bank Facilities capital budget for FY14 is $100.3 million, of which $32.2 million is for
Washington Facilities and $68.1 million is for Country Office Facilities. The FY14 proposed
envelope is $11.6 million more than what was projected for FY14 in FY13 primarily due to the ISRP
project and country office new acquisitions and out-fitting with the long term goal of reducing
escalating lease costs across the globe, particularly in the Africa Region. The total 3-year FY14-16
investment plan for Washington Facilities is $60.1 million and $190.1 million for Country Offices
(see Table G.3).
Table G.3: Capital Program - Investment Schedule FY13-16
Table x.x: Capital Program - Investment Schedule FY13 - 16
Capital Funds ($ Millions)
FY13
Approved
FY13
YTD Released*
FY14
Budget
FY15
Plan
FY16
Plan
3.6
0.4
10.8
0.0
3.3
3.0
0.8
0.4
10.5
0.3
0.0
10.5
0.0
0.0
0.0
13.8
28.6
7.4
13.7
20.6
32.2
8.9
19.7
8.2
8.2
2.0
1.8
3.5
0.0
1.2
49.0
8.2
1.0
1.9
62.0
90.6
18.0
21.1
0.0
2.7
43.6
57.3
53.4
7.6
0.0
3.6
68.1
100.3
56.1
5.9
0.0
0.0
62.0
81.7
52.1
6.7
0.0
0.0
60.0
68.2
A. Facilities - Washington
Securi ty
HQ Rea l Es tate Stra tegy
H-Bui l di ng IT Da ta Center Rel oca tion
Infra s tructure Ma i ntena nce a nd Upgra des 1
Washington:
B. Facilities - Country Office
Expa ns i ons
2
Gl oba l Footpri nt Set-a s i de (i ncl . rel oca tion)
Ma i ntena nce a nd Upgra des
Securi ty
Vehi cl e Purcha s es
Country Office:
Total Global Facilities:
Percent Utilization (FY13 YTD Release/FY13 Approved)
63.3%
*Da ta on ca pi tal rel ea s e of funds a s of Ma y 21, 2012
1
Incl udes ca pi tal projects for fa ci l i ties equi pment upgra des , repa i rs , repl a cements , a nd purcha s es . Al s o i ncl udes
projects for exi s ting s pa ce renova tion a nd fi t-out.
2
Gl oba l Footpri nt Set-a s i de i s a n es tima te tha t takes i nto a ccount on-goi ng/a ntici pa ted decentra l i za tion reforms , col oca tion wi th IFC, rel oca tions a nd a cqui s i tion a nd outfi tti ng. Al l fi na l rel ea s es wi l l depend on outcome of Gl oba l
Foorpri nt Worki ng Group recommenda tions
6. The FY14 Washington Facilities capital budget proposal of $32.2 million will mainly support the
relocation of the H-building IT data center to a new Bank-owned facility away from the HQ campus;
the new Institutional Space Realignment project (ISRP) which aims to reduce leased office space in
HQ; and, other steady-state HQ facilities maintenance, replacements and improvements. Key points
to note:
- 71 -
FY14 BUDGET DOCUMENT

Projects related to the data center relocation ($10.5 million), ISRP ($6.7 million), structural
repairs ($4.2 million) and air Conditioning/mechanical repairs ($2.8 million) will receive the most
funding in FY14. Table G.4 summarizes by category the Washington facilities capital budget
proposal for FY14-16.
Table G.4: Capital Investment Schedule – Washington Facilities FY13-15
Capital Funds ($ Millions)
FY13
FY14
FY15
Budget
Budget
Plan
2.0
2.8
0.0
0.8
0.9
0.0
2.5
0.3
0.3
0.3
1.2
0.7
2.2
1.7
1.7
0.5
0.5
0.5
Air Conditioning/Mechanical Repairs
Audio Visual Systems Upgrade
Business Continuity Initiatives
Food Service Equipment Purchases
Furniture Replacements
Print Services
Public Space Improvements (includes ISRP) 1
Security Systems Upgrade/Disaster Planning System
Special Projects: HQ Real Estate Strategy & Data Ctr
Structural Repairs
Total:
4.6
3.6
11.2
0.9
28.6
8.8
0.8
10.9
4.2
32.2
4.1
0.3
10.5
1.6
19.7
FY16
Plan
0.0
0.0
0.3
0.3
0.3
0.0
2.1
0.0
0.0
5.3
8.2
1
Incl udes $6.72m for Ins titutiona l Spa ce Rea l i gnment Project (ISRP)
7. Investments in Country Office facilities continue to trend upwards as the institution supports facilities
acquisitions in countries where the Bank has long term work program interests. For FY14, the
proposed investment plan is $68.1 million. No new acquisitions will be considered without final
recommendations from the Global Footprint Working Group. The Global Footprint Set-aside will
ensure the necessary flexibility and fiscal space for future decentralization and relocations as
determined by the Working Group. For Country Office facilities, key points to note are:

The FY14 capital budget includes budget to fund acquisitions and construction of new offices in
Ghana, Nigeria (residential housing), Tanzania, and Uganda totaling $37.6 million.

The remaining $30.5 million funding includes: investments in security; expansions or
relocations, and upgrades of existing facilities in support of greater decentralization of staff and
authority in the Country Offices; and, purchase of replacement vehicles that meet safety
standards of the recently implemented Road Safety Policy and armored vehicles for Somalia and
Iraq.
- 72 -
FY14 BUDGET DOCUMENT
Table G.5: Capital Investment Schedule – Country Facilities FY13-15
Capital Funds ($ Millions)
FY13
FY14
FY15
FY16
Budget
Budget
Plan
Plan
Expansions
2.0
3.5
0.0
1.2
Global Footprint Set-aside (incl. relocation)
49.0
53.4
56.1
52.1
Maintenance and Upgrades
8.2
7.6
5.9
6.7
Security
1.0
0.0
0.0
0.0
Vehicle Purchases
1.9
3.6
0.0
0.0
62.0
68.1
62.0
60.0
Country Office Capital Budget Total:
ADMINISTRATIVE BUDGET IMPACT OF THE CAPITAL BUDGET
8. The Bank’s administrative budget will be affected in subsequent fiscal years based upon the level of
capital spending authority approved by the Board. Budget expenses such as operation and
maintenance have a claim on a unit’s budget resources. Once a capital project is completed and
becomes an asset, depreciation may be the responsibility of the business unit if not centrally funded.
In general, VPUs are responsible for these expenses over the life of the asset. A VPU must
demonstrate that it can fund carrying costs of a capital investment over the asset’s life cycle within
their allocated budget before any release of funds.
Table G.6: Technology and Systems – Incremental Impact FY14-16
INCREMENTAL $'s
FY14
FY15
FY16
Budget
Plan
Plan
17.3
21.8
19.0
Base
10.3
12.8
12.0
Deferred Maintenance
0.5
0.5
0.3
6.5
8.6
6.7
17.3
21.8
19.0
0.0
0.0
0.0
1.2
0.6
0.3
(In Millions $, FY13 $s)
Technology and Systems
IMT One-Time, and Operating & Maintenance
Of which
New Investments
1
Business Continuity
2
Total IMT Program:
VPUs (Sponsoring Unit)
3
Central Accounts Depreciation 4
0.9
5.7
13.0
Subtotal Other Program:
2.1
6.3
13.3
Total:
19.4
28.1
32.2
1
New Investments includes one-time expense in FY14 and FY15 for the New Email system (Microsoft Exchange)
2
Business Continuity data includes IMT plus GSD
3
Represents HRS capital project; one-time administrative, backfill, and maintenance.
4
Includes only base adjustments from FY13-15 AIP and FY14-16 AIP Business Planning decisions
Source: FY14, FY15, FY16 are based upon FY13 and FY14 Business Planning final decisions.
- 73 -
FY14 BUDGET DOCUMENT
9. Technology and Systems. Over the three-year planning period, Technology and Systems capital
projects will increase administrative budget expenses by $20.6 million in FY14, $29.7 million in
FY15, and $33.9 million in FY16. These costs will be funded through the net administrative budget.
10. In FY12, Senior Management endorsed the consolidation of IT depreciation within Central Accounts
in order to ensure that: 1) the administrative budget was appropriately resourced to cover the existing
IT asset base; 2) there was alignment between IT capital investment decisions and administrative
budget planning; and 3) surplus or deficits in depreciation were handled at the corporate level. The
three-year trajectory for IT depreciation is shown in Table G.7:
Table G.7: Technology and Systems – IT Depreciation in Central Accounts FY14-16
(In Millions $, FY13 $s)
Technology and Systems
Depreciation Baseline Trajectory 1
FY14-16 Incremental Impact/Adjustments 2
Total 3 :
FY14
FY15
FY16
Budget
Plan
Plan
37.2
40.7
40.7
0.2
2.4
9.7
37.4
43.1
50.4
1
Includes Post Budget distribution adjustments ($0.29m) mostly related to Case Management.
2
Includes depreciation returns for ERCC ($0.07m) and Scalable Two-factor for HRS ($0.01m) projects.
3
Total w/o PC Program, BCC, Below-the-Line units, and Optional chargeback since such depreciation does not reside
within the Central Accounts. Budget expense related to TF Fee Income excluded.
Source: FY14, FY15, FY16 are based upon FY13 and FY14 Business Planning final decisions.
11. Washington Facilities. Over the three-year planning period, Washington capital projects will
increase administrative budget expenses by $0.9 million in FY14, $3.3 million in FY15, and $1.5
million in FY16, including the HQ Real Estate Project – C-building purchase, the IMT data center
relocation project and the ISRP. These costs will be funded through the net administrative budget.
The long asset depreciation life cycle24 of the facilities projects tends to create minimal increases
across fiscal years.
12. Country Office Facilities. Over the three-year planning period, country office capital projects will
increase administrative budget expenses by $3.0 million in FY14, $3.1 million in FY15, and $1.0
million in FY16 if all the acquisitions and relocations are included in the recommendations by the
Global Footprint working group. These costs will be funded through the net administrative budget.
24
Land is not depreciated per accounting rules, acquisitions are depreciated over 50 years and construction/repair projects are
typically depreciated over 10 years.
- 74 -
FY14 BUDGET DOCUMENT
Box G.1: Update on Capitalization of Staff Cost – Experience from One Year
Effective July 1, 2012, the requirement for Bank “payroll” staff to charge time to a capital project was amended.
The prior policy included a three-month, full-time threshold on a single capital project before time could be
charged. The threshold as of July 1st has been removed and “payroll” staff working on qualifying activities must
charge their time to the capital project even if they are working on multiple projects. This has allowed more
strategic deployment of staff, helping managers make optimal staffing decisions when assigning limited resources
to capital projects. At the end of April FY13, the time recording system (TRS) actuals show $5.1m charged to
capital by staff, of which $4.3m for technology and systems (IT) related projects and $0.8m for facilities.
The projected impact related to additional staff charges moved from the administrative budget to capital
subsequent to the policy change is estimated at approximately $8 million in FY14. 40 percent of the
administrative budget flexibility opened up due to staff cost charged to the capital budget will remain with units to
fund backfill expenses and support project implementation. The remaining balance will help fund the increasing
administrative costs of a growing capital portfolio.
Box G.2: Harmonizing IBRD and IFC Capital Policies
In the context of the creation of an integrated WBG Information and Technology function by July 1, 2013, the
following capita policy gaps have been identified and harmonized between IBRD and IFC in order to bring
consistency and enable an integrated work program:

Capital investment thresholds: IBRD will revise its current capital investment threshold of $200,000 to
adopt IFC’s single threshold for all assets of $100,000 beginning July 1, 2004. IFC will eliminate its current
sub-projects of $25,000 (software) and $15,000 office equipment) to be consistent with IBRD by July 1,
2013.

Rapid Development (“Quick-Strike”) program: IBRD will adopt IFC’s “Quick-Strike” which will be
common and will solely be an administrative expense program for projects meeting specific criteria and
below $100,000. The revised “Quick-Strike” program will begin July 1, 2013.

Capitalization of Staff Time: IFC will eliminate its three-month threshold and will adopt IBRD policy by
July 1, 2013.
- 75 -