UNICEF Financial Management

An Orientation of UNICEF

10 October 2013

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DFAM – Summary of accountabilities

UNICEF

ESARO Finance & Administration Officers Meeting, September 2010

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Role: Safeguard financial resources entrusted to UNICEF for benefit of children by maintaining and improving financial and administrative management systems and procedures to ensure efficient, cost-effective and transparent utilization of these resources

Accountabilities: • Provide financial forecasts for organizational strategic planning;

• Lead global budget planning, preparation and monitoring process

• Manage financial assets, including cash and banking arrangements

• Maintain and improve financial and administrative management systems, policies and procedures

• Record, summarize, analyse and interpret financial information in the accounting records, and report information to various users.

Overview

UICEF

Managing the Financial and Administrative Functions of a Country Office 3

Plan

Raise

Protect

Spend

Report & Prove

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Plan - Prior to 2014

UNICEF

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Medium term strategic plan

• 4 year duration

• Includes: – Programme results

– Management indicators

Institutional Budget (IB)

• 2 year duration

• Includes IB results and resources framework

Weak linkage between the results in the strategic plan and results in Institutional Budget

Plan – Starting 2014

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Strategic Plan E/ICEF/2013/21

Integrated Budget E/ICEF/2013/AB/L.4

• Contains single results framework for UNICEF

• Comprised of:

• 7 programme outcomes • 3 organizational effectiveness and

efficiency results

• Integrated resource plan presents budgetary information

• Integrated results and resources framework identifies how total resources available to UNICEF will be allocated to the outcomes and results

• An integral part of the UNICEF Strategic Plan – It contains all budgetary provisions to complement the strategic plan.

• Summarized in two key tables: • Integrated Resource Plan provides

information on total resources available and the proposed utilisation of these resources in the plan period.

• Integrated Results and Resources Framework connects the SP to the Integrated Budget and identifies for the 1st time how total resources will be allocated to programme outcomes and organisational effectiveness and efficiency results

2010-2013

Total

Resources

%

2014-2017

Regular resources Other resources Total Resources

$m

%

Programme

$m

Cost recovery

$m

$m

%

Resources available 6,198.5 - 12,447.7 - 18,646.2 -

A: Development activities

A1: Programmes 82.1 4,091.0 69.6 10,713.6 - 14,804.6 84.5

A2: Development effectiveness 3.4 467.4 8.0 100.1 - 567.5 3.2

Sub-total 85.5 4,558.4 77.6 10,813.7 - 15,372.1 87.7

B: UN development coordination 0.0 20.3 0.3 16.3 - 36.6 0.2

C: Management

C1: Recurring 10.2 642.2 10.9 - 774.2 1,416.4 8.1

C2: Non-recurring 0.1 6.5 0.1 - 12.5 19.0 0.1

Sub-total 10.3 648.7 11.0 - 786.7 1,435.4 8.2

D: Special purpose

D1: Capital investments 0.4 18.7 0.3 - 36.3 55.0 0.3

D2: Private sector fundraising 3.1 454.0 7.7 - - 454.0 2.6

D3: Others, procurement services 0.7 174.1 3.0 - - 174.1 1.0

Sub-total 4.2 646.8 11.0 - 36.3 683.1 3.9

Institutional budget 14.1 1,155.1 19.7 116.4 823.0 2,094.5 11.9

Integrated budget 100.0 5,874.2 100.0 10,830.0 823.0 17,527.3 100.0

Integrated Resource Plan, 2014-2017

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Outcome 2014-2017

RR

$m

OR

$m

Total

$m

P1 Improved and equitable use of high-impact maternal and child health interventions from

pregnancy to adolescence and promotion of health behaviors. 1,227 2,918 4,145

P2 Improved and equitable use of proven HIV prevention and treatment interventions by

children, pregnant women and adolescents. 245 495 740

P3 Improved and equitable use of safe drinking water, sanitation, healthy environments and

improved hygiene practices. 450 1,771 2,221

P4 Improved and equitable access to and use of nutritional support and improved nutrition and

care practices. 327 1,153 1,480

P5 Improve and equitable access to and completion of quality, inclusive education with a focus

on improving learning outcomes. 655 2,306 2,961

P6 Improved and equitable prevention of and response to violence, abuse and exploitation of

children. 491 1,286 1,777

P7 Improved policy environment and systems to that effectively respond to increasing

knowledge and data on disadvantaged and excluded children. 696 785 1,481

Total 4,091 10,714 14,805

Integrated Results and Resources Framework, 2014-2017 Programme Outcomes

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Raise Fundraising Trend

0

500

1000

1500

2000

2500

3000

3500

4000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

OR

RR

TREND IN TOTAL RESOURCES - 2002 - 2012

Protect Accountabilities, Risk and Controls

UNICEF

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Risk assessment, policy and controls

Risk informed policy

Implemented through business processes

Controls established in processes to mitigate risks

Environment

Programme funding environment

Natural environment

Staffing

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1,106 , 31%

629 , 17% 1,023 , 28%

865 , 24%

Cash assistance

Programme supplies

Employee expense

Other

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Spend Composition of Expense

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Report Reporting to Stakeholders

• UNICEF Financial Statements o Collective organisational financial health and annual financial

performance o Provided to Executive Board o Opinion provided by UN Board of Auditors (independent opinion) o IPSAS Standards as of 1 January 2012

• Reporting to donors on use of OR contributions o Financial performance for individual donor agreements o Certified by the Comptroller

• Organisational Documents o Reporting to external stakeholders on performance and including

financial information o Include Executive Director’s Annual Report, UNICEF Annual Report,

Report on Regular Resources

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Adoption of IPSAS

UNICEF

Managing the Financial and Administrative Functions of a Country Office 12

Financial Statements

Better Decision Making

contribute to

require

support

require

Initially

Subsequently

Data analysis, conversion & maintenance

Upgrade of Systems and Controls

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Prove Audit and Oversight

• Internal Audit Office of Internal Audit and Investigations (OIAI)

Independent assurance and advisory services

Evaluates governance, risk management and control processes

Provides annual report on activities and findings provided to Executive Board

• External Audit UN Board of Auditors (BoA)

Independent opinion on UNICEF organisational Financial Statements

Single audit principle: UN Regulation 7.6 - BoA is the only entity that can audit UNICEF

Rotating membership, China National Audit Office assigned to UNICEF from 2006 to 2014

Other observations on procedures, controls, general management practices

UNICEF

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Managing the Financial and Administrative Functions of a Country Office

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UICEF

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Plan

Raise

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Spend

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57% Governments 31% Private Sector

Reg

ula

tory

Fr

amew

ork

Workplan based implementation