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 2
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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
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Plan
Raise
Protect
Spend
Report
& Prove
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Prior to 2014
UNICEF Managing the Financial and Administrative Functions of a Country Office
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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/2013/21Integrated 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
Outcome 2014-2017 RR
$m $m OR 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 RRProtect
Accountabilities, Risk and Controls
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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 10
Spend
Composition of Expense
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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 unite for children
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
13
Managing the Financial and Administrative Functions of a Country Office
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UICEF Managing the Financial and Administrative Functions of a Country Office 14 Plan Raise Protect Spend Report & Prove unite for children 57% Governments 31% Private Sector R e gu la to ry Fr ame wor k Workplan based implementation