Part I
Financial Information and Analysis

Expenditure

In 2006, OCHA’s expenditure on activities forecast in OCHA in 2006 increased by US$ 18.5 million, up by 18 per cent compared to 2005 expenditures. The higher level of expenditures can be attributed to the strengthening of regional and country offices in Asia. Increases in expenses were also generated by new and changing humanitarian emergencies that arose during the year.

OCHA spent 86 per cent of its revised extrabudgetary requirements for the year, with headquarters core expenditures registering at 80 per cent, headquarters projects at 85 per cent and field offices at 89 per cent. Against the United Nations regular budget appropriation– used exclusively for headquarters core activities and natural disaster grants approved by the General Assembly– OCHA’s expenditures amounted to US$ 11.3 million, of which US$ 10.6 million supported OCHA’s core staffing and activities and the remaining US$ 700,000 related to natural disaster grants.

>> Extrabudgetary Expenditure Breakdown 2006
Graph: Extrabudgetary Expenditure Breakdown 2006

>> Regular Budget Expenditure Breakdown 2006
Graph: Regular Budget Expenditure Breakdown 2006

>> Extrabudgetary Income and Expenditure 2004–06
Graph: Extrabudgetary Income and Expenditure 2004-06

A total of 29 per cent of OCHA’s headquarters core expenditures (US$ 10.6 million) were funded from the regular budget and 71 per cent (US$ 26.5 million) were financed from extrabudgetary resources.

The expenditure levels were influenced by: the vacancy rate, which reflects delayed recruitment (while posts are budgeted for a full year, there was an average vacancy rate in extrabudgetary posts of 24.5 percent); the variance between United Nations standard salary costs which are used for budgeting purposes and the actual salaries paid to staff; and the timeliness of funding (activities cannot be implemented until cash contributions are actually received).

OCHA’s extrabudgetary expenditures can be divided into staff and non-staff costs. Staff costs include salaries and related entitlements, while non-staff costs include expenses related to consultants, travel, contractual services, operating expenses, supplies and grants. For headquarters core activities in 2006, staff costs represented 80 per cent of expenditure and non-staff costs 20 per cent. For headquarters projects, staff costs represented 70 per cent and non-staff costs 30 per cent. For field offices 68 per cent of the expenses were for staff costs and 32 per cent were non-staff costs.

Staff and non-staff expenses in the field offices varied depending on: the initialization of operations, scaled-down presences and the closure of offices; the size of the operations; and the intensity of humanitarian activities in the country. Field offices tend to have higher non-staff costs as their operational demands are much more complex than those of headquarters: they manage their own transportation (purchase and maintenance of vehicles), and they require additional communications equipment, security support and many other service contracts that are not required by headquarters.

Expenditures under Humanitarian Funds and other activities increased from US$ 6.5 million in 2005 to US$ 19.3 million in 2006. There were Emergency Response Funds in Liberia, DRC, Indonesia, Somalia, Republic of Congo, Ethiopia and Zimbabwe.

The total expenditure for natural disaster activities was US$ 12 million, an increase of 41 per cent compared to 2005. This can be attributed to support activities in response to: extensive flooding affecting Africa (Kenya, Guinea and Ethiopia), South America (Suriname and Bolivia), Bangladesh and Thailand, and the major earthquake in Indonesia (Yogyakarta).