In Annual Report 2008, OCHA continues its efforts to further improve the transparency and clarity of its financial reporting and analysis. The financial analysis within Part II of this report is based on OCHA requirements in relation to activities managed by OCHA (as detailed in OCHA in 2008). This section excludes the activities of partners for which OCHA manages the associated funds, referred to as Specially Designated Contributions (see Annex II).

Summary

In 2008, OCHA funding requirements for the implementation of headquarters and field activities covered an ambitious agenda for humanitarian coordination. Despite increased demand for existing activities, consultations with donors made it clear from the onset that additional funding was unlikely.

Exercising prudence and discipline in financial planning and budgeting, OCHA at mid-year adopted a zero growth policy on existing activities. Sudden onset and rapidly changing emergencies during 2008 nonetheless resulted in a number of new requirements met by donor contributions. However, due to the increasingly difficult financial outlook, OCHA carried forward fewer funds for programme activities in 2009 than in the previous year.

Programme Activities

OCHA 2008 opening balance for mandated activities was $176.1 million, including mandatory reserves of $30.1 million. The total also included unspent transfers of the Programme Support Account of $30.7 million, rendering available $145.5 million for programme-related activities (see Table 1).

Donor contributions in 2008 totaled $147.0 million, amounting to $292.5 million available for spending.

Direct programme costs of OCHA activities were $160.6 million in 2008, with $19.2 million levied on expenditure and transferred to the Programme Support Account, bringing the total expenditure to $179.8 million. This resulted in net available funds of $112.7 million.

Due to additional income from interest income, savings in unliquidated obligations, miscellaneous income, adjustments, transfers and refunds of $19.7 million, the closing balance for programme activities was $132.4 million, including mandatory reserves of $24.4 million.

Administrative Activities

The 2008 opening balance for the Programme Support Account was $30.7 million (see Table 1). During 2008, $19.2 million in programme support charge was levied and transferred from OCHA mandated activities, and expenditure of $15.3 million was incurred on administrative related costs. This resulted in net available funds of $34.6 million, including the opening balance.

Interest, other miscellaneous income ($1.6 million) and programme support charges levied and transferred from Specially Designated Contributions and other OCHA trust funds ($5.6 million) — totaling $7.2 million — was received into this account. The closing balance was therefore $41.8 million.

Available Resources for OCHA Mandated Activities (US$)
Programme Activities Administrative Activities Total
2008 Opening Balance 145,459,108 30,655,464 176,114,572
2008 Donor Contributions 147,047,595 147,047,595
Available funds 2008 292,506,703 30,655,464 323,162,167
Transfer of Programme Support Charges (19,210,150) 19,210,150 1
Direct Expenditure (160,584,677) (15,288,035) (175,872,712)1
Net Available Funds before Other Income, Adjustments, Transfers and Refunds 112,711,876 34,577,579 147,289,455
Other Income, Adjustments, Transfers and Refunds 19,658,494 1,550,500 21,208,994
Transfer of Programme Support Charges from Specially Designated Contributions and other OCHA Trust Funds 5,644,372 5,644,372
2008 Closing Balance 132,370,370 41,772,451 174,142,821
Increase/(Decrease) in opening balance (13,088,738) 11,116,987 (1,971,751)
1 — Total expenditure of $195.1 million (see Table 3) consists of total Direct Expenditure ($175.9 million) and Programme Support Charges ($19.2 million).