PART ii: financial analysis
financial position in 2007
The total amounts that OCHA received in 2007 were:
• United Nations Regular Budget: US$ 13,482,476 (including grants); and
• voluntary donor contributions: US$ 198,495,772.
The amounts that OCHA received in response to the revised requirements (US$ 181,279,343) related to activities in OCHA in 2007 were:
• United Nations Regular Budget: US$ 12,720,476 million (7 per cent); and
• Voluntary donor contributions: US$ 139,527,360 (77 per cent).
Programme Support Costs of US$ 17.2 million were generated from levies on OCHA’s trust funds in 2006, of which US$ 11 million was designated for use in funding the activities detailed in OCHA in 2007 (6 per cent). OCHA also received voluntary donor contributions of US$ 12.4 million to finance other activities managed by OCHA (but not included in OCHA in 2007).
Funds available for OCHA in 2007 therefore totalled US$ 163 million or 90 per cent of the US$ 181 million requested to finance activities detailed in OCHA in 2007.
OCHA’s closing balance at the end of 2007 was US$ 238 million. This balance was carried forward and became the opening balance for 2008 after the accounts for 2007 were finalized on 31 March 2008. This amount includes US$ 62 million of ‘specially designated contributions’ and mandatory reserves of US$ 30 million which cannot be used to finance the activities detailed in OCHA in 2008, leaving an amount of US$ 146 million available to be used. However, a large share of this balance is earmarked to specific projects and cannot be shifted between projects or field offices.
OCHA is working to close its dormant accounts from previous emergency response operations (totalling approximately US$ 13 million) and redeploy the uncommitted funds. Consultation with donors in relation to this will take place during 2008.
Several projects and field offices were already fully funded for 2008 and OCHA has approached donors with a request to consider redeployment of part of these contributions to meet shortfalls in other requirements. US$ 18 million has been allocated for 2008 from the Special Account for Programme Support to help cover requirements related to activities detailed in OCHA in 2008.
Rate of Implementation
The rate of implementation calculated on expenditures against revised requirements was 89 per cent in 2007 (of the total spent, 70 per cent was for staff costs). Some of OCHA’s planned activities were not fully implemented because of changing priorities, slow start-up of field offices in new emergencies, limited unearmarked funds available at the required time, or overall delays in recruitment of staff. The rate of actual expenditure against OCHA’s revised requirements is explained by the slow rates of staff recruitment along with the fact that a large proportion of OCHA’s budget relates to staff costs. Moreover, the standard calculation for salaries set by the United Nations that OCHA uses in budgeting for staff costs is conservative, and in most cases the calculated amount is greater than the actual expenditure on the staff member.
New partnerships and the private sector
Most private sector contributions to OCHA in 2007 were in-kind – stand-by professional services that OCHA is able to activate in emergencies, such as airport logistics management (DHL), telecommunications (Ericsson) and IT support (Télécoms sans Frontières). The United Nations Foundation and the Vodafone Group Foundation have pledged multi-year funding.