Matters Relating to Programme Development and Management Review of the Implementation of Workplans For PB 2008-2009.

_____________________________________________________ Second Meeting of the Subcommittee on Policy and Programme Development and Management (SPPDM) WHO/SEARO, New Delhi, 3 July 2009 Provisional Agenda item 2.2 SEA/SPPDM-Meet.2/2.2 26 June 2009 MATTERS RELATING TO PROGRAMME DEVELOPMENT AND MANAGEMENT REVIEW OF THE IMPLEMENTATION OF WORKPLANS FOR PB 2008-2009 This paper reviews the WHO collaborative programmes in the South-East Asia Region implemented during the 2008-2009 biennium. The budget for Assessed Contribution (AC) for the Region for the 2008-2009 biennium stands at US$100 million, with the Voluntary Contribution (VC) budget being US$ 438 million for a total regional budget of US$ 538 million. Voluntary Contributions play an increasingly significant role in financing the programme of work of the Region (81%). As at 31 May 2009, resources available under AC stood at US$100 million (98%) and resources mobilized against VC budget stood at US$ 299 million (68%). Over 75% of VC to the Region are specified and contribute to disparities in the distribution of resources between countries and across Strategic Objectives. Expenditure at country level of AC stands at 69% of resources available and at 65% of VC available. The Implementation has been particularly low for Strategic Objectives 4, 7, 8, 9 and 10. This paper is submitted to the SPPDM for its consideration. SEA/SPPDM-Meet.2/2.2 Financial implementation of the 2008-2009 Programme Budget The overall situation, as at 31 May 2009 1. The overall budget for the Region increased significantly, by US$ 181 million (51%) from US$ 357 million as at end May 2007 to US$ 538 million at end May 2009. At the same time, resources to implement this budget increased by US$ 56 million (16%), from US$ 343 million to US$ 399 million over the same period. Expenditure increased only by US$ 10 million, from US$ 245 million to US$ 256 million (5%) over the same period. This was partly due to changes in practices of obligating long- term salaries under the Global Management System. Table 1 - Overall AC+VC Budgets, Resources and Expenditure Total Budget Total Resources Total % Bud Total Expenditure Total % Bud Total % Res Disbursed Unliquidated Level Country Country Bangladesh 52,299,500 35,361,199 68% 24,331,282 47% 69% 18,842,922 5,488,360 Bhutan 6,928,000 3,178,198 46% 2,457,256 35% 77% 1,812,558 644,698 India 103,009,000 95,620,414 93% 65,465,513 64% 68% 45,351,244 20,114,269 Indonesia 67,300,000 38,639,683 57% 21,820,204 32% 56% 16,781,850 5,038,354 DPRK 38,735,000 27,110,881 70% 14,529,320 38% 54% 9,050,878 5,478,442 Maldives 6,291,000 3,220,272 51% 1,974,211 31% 61% 1,585,218 388,993 Myanmar 56,592,600 36,502,143 64% 25,842,084 46% 71% 18,376,722 7,465,362 Nepal 27,716,000 24,149,894 87% 15,411,319 56% 64% 13,215,191 2,196,128 Sri Lanka 16,027,000 8,560,965 53% 6,508,375 41% 76% 4,498,281 2,010,094 Thailand 15,181,000 11,022,222 73% 8,600,386 57% 78% 5,817,851 2,782,535 Timor Leste 8,635,000 5,132,554 59% 3,169,965 37% 62% 2,212,422 957,543 Country Total 398,714,100 288,498,425 72% 190,109,914 48% 66% 137,545,136 52,564,778 ROICP 139,437,900 110,158,438 79% 65,601,381 47% 60% 54,724,904 10,876,476 Grand Total 538,152,000 398,656,863 74% 255,711,295 48% 64% 192,270,040 63,441,254 Implementation of Assessed Contribution 2. The working allocation of the Assessed Contributions for the South-East Asia Region for the 2008-2009 biennium is US$ 100 million, up from US$ 97 million in 2006-2007, which is an increase of US$ 3 million or 3%. The ratio of distribution of AC funds between Member States and the Regional Office was maintained at 75% to 25%, respectively. As compared to other regions, the SEA Region allocates the highest proportion of its AC funds to countries. 3. As of 31 May 2009, overall expenditure under AC funds stood at 69% with slightly higher implementation for programme activities. Table 2: Assessed Contribution Budgets, Resources and Expenditure Budget Resources % Bud Expenditure % Bud % Res Disbursed Unliquidated Level Country AC AC AC AC AC AC AC AC Country Bangladesh 11,048,500 11,048,500 100% 7,464,201 68% 68% 5,607,801 1,856,400 Bhutan 2,699,000 2,699,000 100% 2,090,674 77% 77% 1,618,045 472,629 India 14,051,000 14,051,000 100% 10,129,564 72% 72% 7,269,319 2,860,245 Indonesia 9,832,000 9,832,000 100% 6,626,608 67% 67% 5,699,305 927,303 DPRK 3,933,000 3,933,000 100% 2,351,366 60% 60% 1,736,685 614,681 Maldives 2,619,000 2,619,000 100% 1,865,147 71% 71% 1,489,462 375,685 Myanmar 7,971,600 7,971,600 100% 5,177,099 65% 65% 3,878,368 1,298,731 Nepal 8,635,000 8,635,000 100% 5,808,879 67% 67% 5,038,614 770,265 Sri Lanka 5,406,000 5,406,000 100% 4,055,078 75% 75% 3,251,901 803,177 Thailand 6,241,000 6,241,000 100% 4,766,520 76% 76% 3,693,056 1,073,464 Timor Leste 2,121,000 2,121,000 100% 1,313,512 62% 62% 1,182,981 130,531 Country Total 74,557,100 74,557,100 100% 51,648,648 69% 69% 40,465,537 11,183,111 ROICP 25,311,400 25,311,400 100% 17,282,954 68% 68% 16,750,804 532,150 Grand Total 99,868,500 99,868,500 100% 68,931,601 69% 69% 57,216,341 11,715,261 SEA/SPPDM-Meet.2/2.2 Page 2 Implementation of Voluntary Contribution 4. The importance of Voluntary Contributions to our health programmes has been growing steadily since the 2002-2003 biennium, making up approximately 81% of the total budget for the 2008-2009 biennium. The VC budget increased by US$ 180 million from the approved Programme Budget 2006-2007 figure of US$ 258 million to the revised VC budget of US$ 438 million for 2008- 2009, which is a 70% increase. The resources mobilized against this budget now stand at US$ 299 million. This figure is three times more than the Assessed Contribution. At current rates of income, it is projected that the total VC resources for the biennium will be about US$ 370 million, or 84% of the budget target. The expenditure under VC increased by US$ 22 million (or 13%) from the May 2007 level of US$ 165 million to US$ 187 million as of 31 May 2009. Table 3: Voluntary Contribution Budgets, Resources and Expenditure Budget Resources % Bud Expenditure % Bud % Res Disbursed Unliquidated Level Country VC VC VC VC VC VC VC VC Country Bangladesh 41,251,000 24,312,699 59% 16,867,081 41% 69% 13,235,121 3,631,960 Bhutan 4,229,000 479,198 11% 366,582 9% 76% 194,513 172,069 India 88,958,000 81,569,414 92% 55,335,948 62% 68% 38,081,924 17,254,024 Indonesia 57,468,000 28,807,683 50% 15,193,596 26% 53% 11,082,545 4,111,051 DPRK 34,802,000 23,177,881 67% 12,177,954 35% 53% 7,314,193 4,863,761 Maldives 3,672,000 601,272 16% 109,064 3% 18% 95,756 13,308 Myanmar 48,621,000 28,530,543 59% 20,664,985 43% 72% 14,498,354 6,166,631 Nepal 19,081,000 15,514,894 81% 9,602,440 50% 62% 8,176,577 1,425,863 Sri Lanka 10,621,000 3,154,965 30% 2,453,297 23% 78% 1,246,380 1,206,917 Thailand 8,940,000 4,781,222 53% 3,833,865 43% 80% 2,124,794 1,709,071 Timor Leste 6,514,000 3,011,554 46% 1,856,454 28% 62% 1,029,442 827,012 Country 324,157,000 213,941,325 66% 138,461,266 43% 65% 97,079,599 41,381,667 ROICP 114,126,500 84,847,038 74% 48,318,427 42% 57% 37,974,101 10,344,326 Grand Total 438,283,500 298,788,363 68% 186,779,693 43% 63% 135,053,700 51,725,993 Issues and challenges 5. The goal for financial implementation of the 2008-2009 biennium is full and quality implementation of the resources by 31 December 2009. In achieving this goal, the managers throughout the Region should bear in mind some of the important issues facing us during implementation of our financial resources: • The impact of the delivery principle, according to which implementation may only be reflected once the work is delivered or due to be delivered, will require increased attention at both regional office and country levels. • The 2008-2009 biennium has seen the introduction of the Global Management System (GSM) in our headquarters and in the Western-Pacific Region. Three other regions, including the South-East Asia Region are due to roll-out the GSM on 1 January 2010. Though the Region anticipates implementation efficiencies through the full implementation of the GSM, implementation will be impacted by changes in processes during the transition period and a foreshortened period for implementation of 2008-2009. • Financing our work using Voluntary Contributions is significantly different from funding from the Assessed Contribution. This is amplified by the increasing reliance the Region has on VC to finance our health programmes and poses certain challenges. VC funds typically lack predictability, are targeted to address specific health concerns prescribed by the donor and are not necessarily driven by the WHO budget. Moreover, financing through VC funds involves a much more complex managerial and administrative process. However, most Voluntary Contributions lack adequate funding to cover these additional managerial and SEA/SPPDM-Meet.2/2.1 Page 3 administrative costs. Furthermore, mobilizing resources for projects in several Member States of the SEA Region is proving difficult, thereby contributing to disparities and distortions in the distribution of resources among Member States and programme areas. • The implementation capacity of programmes in the Region varies significantly as is shown in Table 4. Efforts to enhance the implementation capacity are required for strategic objectives with a low capacity. However, budgetary and resource mobilization is a priority in this regard. Table 4 : Implementation capacity 1 127,318,426 79,913,789 4,700,811 47,404,637 10 2 59,347,353 42,165,119 2,480,301 17,182,234 7 3 7,168,008 5,193,313 305,489 1,974,695 6 4 9,749,791 5,578,342 328,138 4,171,449 13 5 37,916,904 22,160,852 1,303,580 15,756,052 12 6 10,310,709 6,956,636 409,214 3,354,073 8 7 1,866,148 1,087,172 63,951 778,976 12 8 5,000,405 3,129,716 184,101 1,870,689 10 9 2,485,642 1,467,975 86,351 1,017,667 12 10 18,700,260 12,738,497 749,323 5,961,763 8 11 5,197,485 3,535,115 207,948 1,662,370 8 12 3,101,088 1,829,500 107,618 1,271,588 12 13 17,940,052 12,466,908 733,348 5,473,144 7 Grand Total 306,102,271 198,222,934 11,660,173 107,879,337 9 Total ResourcesSO Months to Implement Available Balance Spend-per- Month Total Expenditure SEA/SPPDM-Meet.2/2.2 Page 4 Annexes Overall AC+VC Budgets, Resources and Expenditure by Strategic Objective Total Budget Total Resources Total % Bud Total Expenditure Total % Bud Total % Res Disbursed Unliquidated Level SO Country 1 128,648,000 115,773,070 90% 75,191,317 58% 65% 54,325,996 20,865,321 2 73,210,500 57,225,044 78% 41,115,616 56% 72% 28,948,767 12,166,849 3 11,796,000 6,634,579 56% 4,762,051 40% 72% 3,359,345 1,402,706 4 27,853,000 10,184,414 37% 5,657,036 20% 56% 3,832,538 1,824,498 5 58,851,600 36,995,195 63% 22,744,791 39% 61% 15,134,096 7,610,695 6 10,059,000 6,034,447 60% 4,330,807 43% 72% 3,170,461 1,160,346 7 1,994,000 824,000 41% 448,621 22% 54% 297,062 151,559 8 9,070,000 5,318,169 59% 3,187,115 35% 60% 2,387,899 799,216 9 6,032,000 2,128,522 35% 1,088,195 18% 51% 849,202 238,993 10 39,286,000 23,291,086 59% 15,247,491 39% 65% 11,619,926 3,627,565 11 8,003,000 3,687,330 46% 2,545,769 32% 69% 1,766,792 778,977 12 7,017,000 6,563,178 94% 4,395,386 63% 67% 4,148,194 247,192 13 16,894,000 13,839,391 82% 9,395,719 56% 68% 7,704,858 1,690,861 Country Total 398,714,100 288,498,425 72% 190,109,914 48% 66% 137,545,136 52,564,778 ROICP 1 37,814,000 30,891,018 82% 15,280,990 40% 49% 12,769,392 2,511,598 2 13,889,500 13,726,005 99% 7,876,113 57% 57% 6,697,173 1,178,940 3 3,800,000 3,024,879 80% 1,928,464 51% 64% 1,712,739 215,725 4 11,232,000 4,055,089 36% 2,480,035 22% 61% 2,152,240 327,795 5 5,587,400 4,801,961 86% 1,781,845 32% 37% 1,250,932 530,913 6 10,183,000 7,250,389 71% 4,628,288 45% 64% 3,400,348 1,227,940 7 2,554,000 2,069,148 81% 985,941 39% 48% 765,950 219,991 8 3,525,000 3,208,236 91% 2,296,660 65% 72% 2,164,439 132,221 9 3,700,000 1,470,120 40% 945,287 26% 64% 737,609 207,678 10 13,621,000 9,369,097 69% 6,604,586 48% 70% 6,033,847 570,739 11 2,731,000 2,343,155 86% 1,418,800 52% 61% 1,109,722 309,078 12 7,976,000 6,447,180 81% 4,568,857 57% 71% 4,278,251 290,606 13 22,825,000 21,502,161 94% 14,805,514 65% 69% 11,652,262 3,153,252 ROICP Total 139,437,900 110,158,438 79% 65,601,381 47% 60% 54,724,904 10,876,476 Grand Total 538,152,000 398,656,863 74% 255,711,295 48% 64% 192,270,040 63,441,254 SEA/SPPDM-Meet.2/2.1 Page 5 Voluntary Contributions by WHO Strategic Objective Budget Resources % Bud Expenditure % Bud % Res Disbursed Unliquidated Level SO VC VC VC VC VC VC VC VC Country 1 122,516,000 109,641,070 89% 70,740,160 58% 65% 50,708,211 20,031,949 2 67,967,000 51,981,544 76% 37,604,083 55% 72% 26,312,784 11,291,299 3 6,392,000 1,230,579 19% 1,145,954 18% 93% 840,497 305,457 4 22,016,000 4,347,414 20% 1,394,898 6% 32% 791,189 603,709 5 55,703,000 33,846,595 61% 20,789,451 37% 61% 13,594,573 7,194,878 6 7,124,000 3,099,447 44% 2,122,151 30% 68% 1,769,963 352,188 7 1,459,000 289,000 20% 79,006 5% 27% 67,345 11,661 8 5,208,000 1,456,169 28% 465,307 9% 32% 258,721 206,586 9 4,107,000 203,522 5% 70,422 2% 35% 63,167 7,255 10 19,510,000 3,515,086 18% 1,161,565 6% 33% 656,397 505,168 11 4,943,000 627,330 13% 375,228 8% 60% 321,527 53,701 12 1,403,000 949,178 68% 440,379 31% 46% 302,848 137,531 13 5,809,000 2,754,391 47% 2,072,662 36% 75% 1,392,377 680,285 Country Total 324,157,000 213,941,325 66% 138,461,266 43% 65% 97,079,599 41,381,667 ROICP 1 34,860,000 27,937,018 80% 13,269,115 38% 47% 10,785,458 2,483,657 2 11,966,500 11,803,005 99% 6,848,398 57% 58% 5,672,087 1,176,310 3 2,339,000 1,563,879 67% 962,254 41% 62% 784,092 178,162 4 9,734,000 2,557,089 26% 1,487,092 15% 58% 1,169,497 317,595 5 4,911,000 4,125,561 84% 1,580,525 32% 38% 1,168,194 412,331 6 9,082,000 6,149,389 68% 3,749,299 41% 61% 2,526,743 1,222,556 7 2,121,000 1,636,148 77% 702,551 33% 43% 486,215 216,336 8 1,574,000 1,257,236 80% 1,047,316 67% 83% 924,366 122,950 9 3,216,000 986,120 31% 650,247 20% 66% 442,568 207,678 10 8,721,000 4,469,097 51% 3,356,411 38% 75% 3,031,832 324,579 11 2,261,000 1,873,155 83% 1,117,058 49% 60% 807,980 309,078 12 5,061,000 3,532,180 70% 2,567,503 51% 73% 2,341,358 226,145 13 18,280,000 16,957,161 93% 10,980,660 60% 65% 7,833,711 3,146,949 ROICP Total 114,126,500 84,847,038 74% 48,318,427 42% 57% 37,974,101 10,344,326 Grand Total 438,283,500 298,788,363 68% 186,779,693 43% 63% 135,053,700 51,725,993