Financial Information and Analysis
The financial statements and tables in the following pages present an overview of the sources and use of extrabudgetary funds administered by OCHA through its trust funds and other funding mechanisms in 2006.
Voluntary contributions to OCHA are received and managed through the following trust funds and special accounts:
The Trust Fund for the Strengthening of OCHA (DDA) was established in 1974 pursuant to General Assembly Resolution 32/43. Voluntary contributions to the Fund are used primarily to support OCHA’s headquarters core activities not funded by the regular budget. The Fund is also used to support New York headquarters projects that fulfil OCHA’s core mandate. It is subject to 13 per cent programme support costs.
The Integrated Regional Information Networks (IRIN) Sub-Account (QTA) was established under the Trust Fund for the Strengthening of OCHA to finance IRIN’s core and project needs. It is subject to 13 per cent programme support costs.
The Trust Fund for Disaster Relief Assistance (DMA) was established by General Assembly Resolution 28/16 to receive earmarked and unearmarked contributions for emergency relief assistance. The Fund, which finances humanitarian coordination in natural disasters and complex emergencies, is the conduit for financial support to all of OCHA’s field activities (except for IRIN) and Geneva-based headquarters projects. It is also used to channel donor contributions for natural disaster projects, humanitarian response mechanisms and other activities of operational agencies and NGOs. It is subject to 13 per cent programme support costs for activities directly implemented and supported by OCHA, and 3 per cent for funds channelled through OCHA. The Trust Fund for Disaster Relief Assistance has the following funding mechanisms:
i) the establishment of field presences in new emergencies (natural disasters or complex emergencies);
ii) the expansion of field presences due to a deteriorating humanitarian situation or increased access; and
iii) the provision of support to extremely under-funded offices to avoid interruption in contractual and operational commitments.
i) funding activities pending receipt of actual cash contributions against unpaid pledges, where funds are required urgently;
ii) the provision of funding for severely under-funded activities on the basis of urgent needs and priorities, and where funds from the FCRF are insufficient;
iii) meeting urgent requirements of new emergencies,
pending receipt of donor contributions; and
iv) the provision of the mandatory operating reserve.
In all instances where monies are used as advances against unpaid pledges, the Sub-Account is reimbursed on receipt of donor contributions. Reimbursements may occur in other instances if unexpected contributions are received at a later date or when unearmarked funds are received in the FCRF for distribution to priority activities.
The Statements of Income and Expenditure summarize the total funds available in each trust fund or account, their utilization during the year, and the closing balance at 31 December 2006. Funds available are calculated by adding together: the closing balance from 2005, adjustments to the previous period’s income and expenditure, income for 2006 comprising cash contributions and unpaid pledges (in accordance with the United Nations accounting standards), miscellaneous income, transfers from other funds, and savings from the previous year’s financial commitments. Expenditure shows the use of each fund during the year, and includes both actual disbursements as well as commitments made but not yet disbursed. The closing balances show the remaining funds available at the end of 2006 to be carried forward into 2007, as well as the mandatory operating reserves for contingency purposes.
Table 1 shows the Statement of Income and Expenditure in 2006 for the Trust Fund for the Strengthening of OCHA (DDA) and the Trust Fund for Disaster Relief Assistance (DMA).
Table 2 shows the income, expenditure and balance of the Trust Fund for the Strengthening of OCHA by activity – headquarters core, headquarters projects (New York) and IRIN.
Headquarters core activities are the minimum activities that OCHA must carry out to effectively discharge its mandate, based on an average level of humanitarian emergency programming around the world. The definition of ‘core’ is based on three priority functions identified by the General Assembly: humanitarian coordination, advocacy and policy development. OCHA’s core activities also underpin and allow for additional activities to take place, such as providing the capacity required to establish field offices in an emergency, or undertaking the evaluation of activities. These activities are supported by executive management, IASC and ECHA mechanisms, and external relations and resource mobilization.
(New York) are additional, limited-duration activities generally implemented
at headquarters (New York), associated with: the
coordination of emergency response; time-bound
projects undertaken by OCHA on behalf of the
IASC or the international community; and further
development of projects including ReliefWeb, Field
Information Management, Field Information Support,
Evaluations and Studies, Protection of Civilians and
Gender Equality. They may also include other projects
that OCHA takes on – at the request of the Security
Council, the Secretary-General, the IASC or similar
body – on the understanding that such activities are
not part of OCHA’s regular activities but meet a shortterm
IRIN is OCHA’s only field-based project, managed from New York under the Trust Fund for the Strengthening of OCHA.
Complex emergencies refers to the coordination activities of field offices, including the use of the FCRF and the BCRF which allow OCHA to manage the field activities with financial flexibility.
Headquarters projects (Geneva) are projects administered and managed in Geneva. They are limited-duration activities undertaken in support of OCHA’s core mandate, including those associated with the coordination of disaster and emergency response such as the Field Coordination Support Section, the Civil–Military Coordination Section and the International Search and Rescue Advisory Group, along with other activities aimed at strengthening existing capacities in areas such as donor relations.
Natural disaster activities relate to Regional Disaster Response Advisers’ offices, government pre-positioned funds used for emergency grants to provide immediate humanitarian relief at the onset of disasters, UNDAC activities and other natural disaster-related activities (including funds for the UNHRD in Brindisi, Italy).
Humanitarian funds and other activities include rapid response mechanisms for humanitarian aid. Funds in this category are expended in the form of grants to NGOs and are not available for use by OCHA.
The Unearmarked Sub-Account advances funds to other activities pending receipt of cash contributions against pledges, supports extremely under-funded activities, meets the urgent needs of new emergencies, and provides for the mandatory operating reserve.
Table 3 shows the income, expenditure and balance of the Trust Fund for Disaster Relief Assistance by activity: complex emergencies, headquarters projects (Geneva), natural disaster activities, humanitarian funds and other activities, and the Unearmarked Sub-Account.
Table 4 shows the status of the Special Account for Programme Support, the income generated from programme support costs levied on OCHA’s trust funds, and expenditure to support the administrative and common service requirements of OCHA’s extrabudgetary activities.
Tables 5 and 6 summarize the expenditure by headquarters core and project activities, and by field coordination activities. These tables present OCHA’s extrabudgetary requirements as detailed in OCHA in 2006, and revised requirements, contributions, other income and expenditure recorded for each activity. Contributions include cash receipts and unpaid pledges earmarked by donors for each activity as well as allocations from the FCRF. Expenditure includes both obligations and actual disbursements.
Table 7 shows cash contributions and pledges made by governments and individual donors to each trust fund. Data is provided on the contributions of the top 20 donors– by headquarters activities, field office activities and other activities.
The narratives on headquarters core activities, headquarters projects and field offices in Parts II and III are accompanied by financial tables that show the revised requirements, income from voluntary contributions and expenditure breakdown – using United Nations accounting standards.
Opening balance is the total amount of funds available for the trust fund and/or main activity on 1 January 2006 (also referred to as ‘closing balance’ from 2005). The actual amount available for implementation purposes is less than the opening balance because unpaid pledges, while recorded as income, are not equivalent to cash on hand (and because a mandatory 10 per cent cash operating reserve must be held to cover any unforeseen expenditure).
Adjustment refers to adjustments of income or expenditure reported in 2005 or previous years. This may be due to adjustments to contributions and other miscellaneous income recorded in prior years, and adjustments to expenses incorrectly reported.
Income from contributions is funds received from donors that have been credited to OCHA’s trust funds, as well as unpaid pledges.
A pledge is a written commitment by a donor to provide, at a future date, a monetary contribution to OCHA’s activities. According to United Nations financial regulations and rules, it is recorded as income at the time of receipt of the written commitment. If the pledge is in a currency other than United States dollars, its value is converted according to the United Nations rates of exchange at the time of receipt. The United States dollar value of the pledge varies in accordance with the United Nations rates of exchange for as long as the pledge remains outstanding in the United Nations financial statement. Foreign exchange gains or losses may be incurred at the time of receipt of the cash.
Transfers, refunds and savings include transfers between projects, allocations from the FCRF to under-funded field offices, transfers from and to the Unearmarked Sub- Account, transfers between trust funds, refunds to donors and savings from the prior period’s unused obligations.
Other funds available includes contributions from other United Nations agencies and miscellaneous income (such as gains or losses on currency exchange and proceeds from the sale of old equipment).
Total funds available comprise opening balance, adjustments, income from contributions and other available funds.
Expenditure is the disbursements and obligations recorded for the year.
Closing balance represents funds carried over from 2006 to 2007. As explained under ‘opening balance’, the amount available for the implementation of activities is lower than the figure indicated in the statement of income and expenditure. For the Trust Fund for Disaster Relief Assistance (Table 3), a substantial portion of the carry-over relates to government pre-positioned funds for natural disasters, humanitarian funds and other activities that have not been included in the extrabudgetary programme requirements detailed in OCHA in 2006, as well as mandatory operating reserves not available for use by programmes.
Expenditure is grouped into the following broad categories:
These programme support costs, while recorded as expenditure in each trust fund, revert to OCHA as income for its Special Account for Programme Support.