1
UNRWA FINANCIAL UPDATE
Presentation to Advisory Commission
Meeting -29 November 2010
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General Fund Budget 2010
( US$ m)
Programme Requirements (Budget)
598.5
Less Unfunded Requirements
(57.0)
Downsized Envelope (1/1/2010)
(541.5)
Updated End of Year Forecast Expenditure (A)
(552.9)
Updated F/C Income (Donor Income, UN Funding,
PSC, Other Income ) – (B)
Updated Forecast Deficit (A) – (B)*
* As at early November 2010
519.8
(33.1)
End of Year Forecast 2010- General Fund
US$ m
End of Year Forecast - 2010
September Forecast
EU Donation (EUR1m in 2011)
Others (Finland & Great Britain)
Fx Gain (Income, Cash, Hedge)
Prior Period Expenditure
October Forecast
Uncertainity in Income
November EOY Forecast
Income Statement Cash Flow
(74.1)
(36.5)
27.8
26.4
9.0
9.0
1.8
1.8
5.6
0.0
(29.9)
0.7
(3.2)
(3.2)
(33.1)
(2.5)
This scenario End of Year Forecast is predicated on:
a) All Fields plus Department spending up to the 2010 Forecast
b) UNRWA receives the remaining Budgeted Forecasted donor income of $20.8m for
the balance of 2010
c) US Challenge fund is not included (Estimated $10.0m) along with other mooted
donor monies.
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Draft End of Year Forecast 2011- General Fund
2011 Budget - General Fund
US$m
UN Blue Book Budget
(853.5)
Exclude In-Kind Donations
3.5
Exclude Projects Budgets
228.8
Total Regular Budget
Exclude Unfunded Requirement (UR)
(621.2)
55.3
UNRWA Dow nsized Budgeted Expenditure
Projected Donor Income
(565.9)
453.2
International Staff (UN Funded)
30.8
PSC
18.0
Interest & Misc Income
Projected Deficit
US$m
3.0
505.0
(60.9)
Update on the Budget Process for 2011
First Step: The starting point of the process was the draft 2011 budgets
developed during the biennium budgeting process in 2009. The process
was initiated under with two guiding principles in mind:
– No cut to services
– Taking into consideration the relative need of Palestine refugees
across Fields
Second Step: Fields and headquarters departments were asked to
justify their existing envelopes and highlight any additional needs. These
were presented in a transparent open process to the Budget Review
Committee.
Third step: With an initial projected draft deficit of well over USD 100
million after all submissions, hard decisions had to be made to bring the
projected budget deficit for 2011 to a more manageable level. Taking
into account the guiding principles and utilizing a four percent efficiency
target the revised budget deficit is USD 61 million.
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Improvements in 2011 Financial Reporting Processes
•
UNRWA one of few entities to effect Hard Close of Accounts each month
(Income Statement, Balance sheet, Cash Flow and Forecast) by Working
Day 5. Finance reports available to Donors.
•
Internet Banking for Fields roll out in Q1 2011 – Expect Live in all Fields by
July 2011
•
Implementation of Hedging for 2011 budgeted Non US Income ($303m of
$453m) marked reduction in Fx variability for 2011
•
Each quarter updated, detailed End of Year Forecasts.
•
New 14 Initiatives with ERP team, Accounts Receivable and Fixed Assets
sub-legers to improve efficiency and transparency in reporting
•
Actively working on finalizing new ERP RFP (pre 31/12/2010) & discussion
exploring ERP partnership with UN entities
•
Pre 31/12/11 – Fully International Pubic Sector Accounting Standards
(IPSAS) compliant
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