EXECUTIVE BOARD 128th Session Agenda item 7.2
EB128/26 Add.1 19 January 2011
Report on financial and administrative implications for the Secretariat of resolutions proposed for adoption by the Executive Board or Health Assembly
1. Resolution Amendments to the Financial Regulations and Financial Rules 2. Linkage to programme budget Strategic objective: 13. To develop and sustain WHO as a flexible, learning organization, enabling it to carry out its mandate more efficiently and effectively. Organization-wide expected result: 13.5 Managerial and administrative support services1 necessary for the efficient functioning of the Organization provided in accordance with service-level agreements that emphasize quality and responsiveness.
(Briefly indicate the linkage with expected results, indicators, targets, baseline) The resolution links with the statutory External Audit of WHO and the certification of the Organization’s accounts. The intended outcome is an unqualified audit opinion. 3. Budgetary implications (a) Total estimated cost for implementation over the life-cycle of the Secretariat’s activities requested in the resolution (estimated to the nearest US$ 10 000, including staff and activities). The requirement for the External Auditor to issue a report on the audit of the annual financial statements is estimated to entail an additional cost of between US$ 100 000 and US$ 200 000 per biennium. The amount will be known when nominations are received for the post of External Auditor for the period of two bienniums 2012–2015 early in 2011, and once the External Auditor has been appointed by the Health Assembly in May 2011. (b) Estimated cost for the biennium 2010–2011 (estimated to the nearest US$ 10 000 including staff and activities, and indicating at which levels of the Organization the costs will be incurred, identifying specific regions where relevant). None.
Includes services in the areas of information technology, human resources, financial resources, logistics, and language services.
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EB128/26 Add.1
(c) Is the estimated cost noted in (b), included within the existing approved Programme budget for the biennium 2010–2011? Not applicable. 4. Financial implications How will the estimated cost noted in 3(b) be financed (indicate potential sources of funds)? Through the regular budget or administrative overheads (programme support costs on voluntary contributions or the post occupancy charge). 5. Administrative implications (a) Implementation locales (indicate the levels of the Organization at which the work will be undertaken, identifying specific regions where relevant). Implementation activities will principally concern headquarters and the Global Service Centre; the administered entities – UNAIDS, IARC, the International Computing Centre and the International Drug Purchase Facility, UNITAID – will also require yearly certification audits of their accounts. The change in the Financial Regulations should not affect the frequency of regional audits. (b) Can the resolution be implemented by existing staff? If not, please specify in (c) below. No additional staff will be needed, although the External Auditor will require additional resources. (c) Additional staffing requirements (indicate additional required staff – full-time equivalents – by levels of the Organization, identifying specific regions where relevant and noting necessary skills profile). See 5(b) above. (d) Time frames (indicate broad time frames for implementation). The first annual certification audit will encompass WHO’s financial statements for 2012.
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