REGIONAL COMMITTEE Sixty-second Session Kathmandu, Nepal 7–10 September 2009
Provisional Agenda item 7.2 SEA/RC62/4 17 July 2009
MATTERS RELATING TO PROGRAMME DEVELOPMENT AND MANAGEMENT REVIEW OF THE IMPLEMENTATION OF WORKPLANS FOR PROGRAMME BUDGET 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. The attached working paper was submitted to the Second Meeting of the Subcommittee on Policy and Programme Development and Management (SPPDM) for its review and recommendations for consideration by the Sixty-second Session of the Regional Committee. The SPPDM made the following recommendations: Action by Member States (1) (2) Countries to put more emphasis on increasing the implementation rate of VC while implementing activities; To ensure full implementation of the AC component of the budget, which cannot be carried over to the next biennium.
Action by WHO/SEARO (1) WHO country offices to identify “core functions” and work with governments to increase funding for core functions from the assessed contribution;
(2)
Programme Managers throughout the Region to explore sharing resources as a mechanism to channel donor funding to relevant areas with common themes, e.g. HIV/HTM and their relation to Child Health, e.g. SO-2 supporting SO-4; WHO to continue training and capacity-building activities within the Region to enhance capacity with respect to management of VC; Strengthen efforts to facilitate communication and information-sharing within the Region to ensure, inter alia, focus of delivery, coherence of programming and avoid duplication of activities both in WHO and in Member States; Give particular attention to achievement of indicators as part of the End-of-Biennium Programme Budget Performance Assessment (PBPA) exercise.
(3) (4)
(5)
The paper is now submitted to the Sixty-second Session of the Regional Committee for its consideration.
SEA/RC62/4
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 Level Country Country 52,299,500 6,928,000 103,009,000 67,300,000 38,735,000 6,291,000 56,592,600 27,716,000 16,027,000 15,181,000 8,635,000 398,714,100 139,437,900 538,152,000 35,361,199 3,178,198 95,620,414 38,639,683 27,110,881 3,220,272 36,502,143 24,149,894 8,560,965 11,022,222 5,132,554 288,498,425 110,158,438 398,656,863 68% 46% 93% 57% 70% 51% 64% 87% 53% 73% 59% 72% 79% 74% 24,331,282 2,457,256 65,465,513 21,820,204 14,529,320 1,974,211 25,842,084 15,411,319 6,508,375 8,600,386 3,169,965 190,109,914 65,601,381 255,711,295 47% 35% 64% 32% 38% 31% 46% 56% 41% 57% 37% 48% 47% 48% 69% 18,842,922 77% 1,812,558 68% 45,351,244 56% 16,781,850 54% 9,050,878 61% 1,585,218 71% 18,376,722 64% 13,215,191 76% 4,498,281 78% 5,817,851 62% 2,212,422 66% 137,545,136 60% 54,724,904 64% 192,270,040 5,488,360 644,698 20,114,269 5,038,354 5,478,442 388,993 7,465,362 2,196,128 2,010,094 2,782,535 957,543 52,564,778 10,876,476 63,441,254 Bangladesh Bhutan India Indonesia DPRK Maldives Myanmar Nepal Sri Lanka Thailand Timor Leste Country Total ROICP Grand Total Total Resources Total % Total Total % Total % Bud Expenditure Bud Res Disbursed Unliquidated
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.
SEA/RC62/4 Page 2
Table 2: Assessed Contribution Budgets, Resources and Expenditure Budget AC 11,048,500 2,699,000 14,051,000 9,832,000 3,933,000 2,619,000 7,971,600 8,635,000 5,406,000 6,241,000 2,121,000 74,557,100 25,311,400 99,868,500 Resources % Bud Expenditure % Bud % Res AC AC AC AC AC 11,048,500 100% 7,464,201 68% 68% 2,699,000 100% 2,090,674 77% 77% 14,051,000 100% 10,129,564 72% 72% 9,832,000 100% 6,626,608 67% 67% 3,933,000 100% 2,351,366 60% 60% 2,619,000 100% 1,865,147 71% 71% 7,971,600 100% 5,177,099 65% 65% 8,635,000 100% 5,808,879 67% 67% 5,406,000 100% 4,055,078 75% 75% 6,241,000 100% 4,766,520 76% 76% 2,121,000 100% 1,313,512 62% 62% 74,557,100 100% 51,648,648 69% 69% 25,311,400 100% 17,282,954 68% 68% 99,868,500 100% 68,931,601 69% 69% Disbursed Unliquidated AC AC 5,607,801 1,856,400 1,618,045 472,629 7,269,319 2,860,245 5,699,305 927,303 1,736,685 614,681 1,489,462 375,685 3,878,368 1,298,731 5,038,614 770,265 3,251,901 803,177 3,693,056 1,073,464 1,182,981 130,531 40,465,537 11,183,111 16,750,804 532,150 57,216,341 11,715,261
Level Country
Country Bangladesh Bhutan India Indonesia DPRK Maldives Myanmar Nepal Sri Lanka Thailand Timor Leste Country Total ROICP Grand Total
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 VC 41,251,000 4,229,000 88,958,000 57,468,000 34,802,000 3,672,000 48,621,000 19,081,000 10,621,000 8,940,000 6,514,000 324,157,000 114,126,500 438,283,500 Resources % Bud Expenditure % Bud % Res Disbursed Unliquidated VC VC VC VC VC VC VC 24,312,699 59% 16,867,081 41% 69% 13,235,121 3,631,960 479,198 11% 366,582 9% 76% 194,513 172,069 81,569,414 92% 55,335,948 62% 68% 38,081,924 17,254,024 28,807,683 50% 15,193,596 26% 53% 11,082,545 4,111,051 23,177,881 67% 12,177,954 35% 53% 7,314,193 4,863,761 601,272 16% 109,064 3% 18% 95,756 13,308 28,530,543 59% 20,664,985 43% 72% 14,498,354 6,166,631 15,514,894 81% 9,602,440 50% 62% 8,176,577 1,425,863 3,154,965 30% 2,453,297 23% 78% 1,246,380 1,206,917 4,781,222 53% 3,833,865 43% 80% 2,124,794 1,709,071 3,011,554 46% 1,856,454 28% 62% 1,029,442 827,012 213,941,325 66% 138,461,266 43% 65% 97,079,599 41,381,667 84,847,038 74% 48,318,427 42% 57% 37,974,101 10,344,326 298,788,363 68% 186,779,693 43% 63% 135,053,700 51,725,993
Level Country
Country Bangladesh Bhutan India Indonesia DPRK Maldives Myanmar Nepal Sri Lanka Thailand Timor Leste
Country ROICP Grand Total
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
SEA/RC62/4 Page 3
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 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
•
•
•
Total Total Spend-per- Available Months to SO Resources Expenditure Month Balance Implement 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
SEA/RC62/4 Page 4
Annexes
Overall AC+VC Budgets, Resources and Expenditure by Strategic Objective Total Budget Level Country SO 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 128,648,000 73,210,500 11,796,000 27,853,000 58,851,600 10,059,000 1,994,000 9,070,000 6,032,000 39,286,000 8,003,000 7,017,000 16,894,000 398,714,100 37,814,000 13,889,500 3,800,000 11,232,000 5,587,400 10,183,000 2,554,000 3,525,000 3,700,000 13,621,000 2,731,000 7,976,000 22,825,000 139,437,900 538,152,000 115,773,070 57,225,044 6,634,579 10,184,414 36,995,195 6,034,447 824,000 5,318,169 2,128,522 23,291,086 3,687,330 6,563,178 13,839,391 288,498,425 30,891,018 13,726,005 3,024,879 4,055,089 4,801,961 7,250,389 2,069,148 3,208,236 1,470,120 9,369,097 2,343,155 6,447,180 21,502,161 110,158,438 398,656,863 90% 78% 56% 37% 63% 60% 41% 59% 35% 59% 46% 94% 82% 72% 82% 99% 80% 36% 86% 71% 81% 91% 40% 69% 86% 81% 94% 79% 74% 75,191,317 41,115,616 4,762,051 5,657,036 22,744,791 4,330,807 448,621 3,187,115 1,088,195 15,247,491 2,545,769 4,395,386 9,395,719 190,109,914 15,280,990 7,876,113 1,928,464 2,480,035 1,781,845 4,628,288 985,941 2,296,660 945,287 6,604,586 1,418,800 4,568,857 14,805,514 65,601,381 255,711,295 58% 56% 40% 20% 39% 43% 22% 35% 18% 39% 32% 63% 56% 48% 40% 57% 51% 22% 32% 45% 39% 65% 26% 48% 52% 57% 65% 47% 48% 65% 54,325,996 72% 28,948,767 72% 3,359,345 56% 3,832,538 61% 15,134,096 72% 3,170,461 54% 297,062 60% 2,387,899 51% 849,202 65% 11,619,926 69% 1,766,792 67% 4,148,194 68% 7,704,858 66% 137,545,136 49% 12,769,392 57% 6,697,173 64% 1,712,739 61% 2,152,240 37% 1,250,932 64% 3,400,348 48% 765,950 72% 2,164,439 64% 737,609 70% 6,033,847 61% 1,109,722 71% 4,278,251 69% 11,652,262 60% 54,724,904 64% 192,270,040 20,865,321 12,166,849 1,402,706 1,824,498 7,610,695 1,160,346 151,559 799,216 238,993 3,627,565 778,977 247,192 1,690,861 52,564,778 2,511,598 1,178,940 215,725 327,795 530,913 1,227,940 219,991 132,221 207,678 570,739 309,078 290,606 3,153,252 10,876,476 63,441,254 Total Resources Total Total Total Total % Bud Expenditure % Bud % Res
Disbursed
Unliquidated
Country Total ROICP
ROICP Total Grand Total
SEA/RC62/4 Page 5
Voluntary Contributions by WHO Strategic Objective
Level Country
SO 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13
Country Total ROICP
ROICP Total Grand Total
Budget VC 122,516,000 67,967,000 6,392,000 22,016,000 55,703,000 7,124,000 1,459,000 5,208,000 4,107,000 19,510,000 4,943,000 1,403,000 5,809,000 324,157,000 34,860,000 11,966,500 2,339,000 9,734,000 4,911,000 9,082,000 2,121,000 1,574,000 3,216,000 8,721,000 2,261,000 5,061,000 18,280,000 114,126,500 438,283,500
Resources % Bud Expenditure % Bud % Res Disbursed Unliquidated VC VC VC VC VC VC VC 109,641,070 89% 70,740,160 58% 65% 50,708,211 20,031,949 51,981,544 76% 37,604,083 55% 72% 26,312,784 11,291,299 1,230,579 19% 1,145,954 18% 93% 840,497 305,457 4,347,414 20% 1,394,898 6% 32% 791,189 603,709 33,846,595 61% 20,789,451 37% 61% 13,594,573 7,194,878 3,099,447 44% 2,122,151 30% 68% 1,769,963 352,188 289,000 20% 79,006 5% 27% 67,345 11,661 1,456,169 28% 465,307 9% 32% 258,721 206,586 203,522 5% 70,422 2% 35% 63,167 7,255 3,515,086 18% 1,161,565 6% 33% 656,397 505,168 627,330 13% 375,228 8% 60% 321,527 53,701 949,178 68% 440,379 31% 46% 302,848 137,531 2,754,391 47% 2,072,662 36% 75% 1,392,377 680,285 213,941,325 66% 138,461,266 43% 65% 97,079,599 41,381,667 27,937,018 80% 13,269,115 38% 47% 10,785,458 2,483,657 11,803,005 99% 6,848,398 57% 58% 5,672,087 1,176,310 1,563,879 67% 962,254 41% 62% 784,092 178,162 2,557,089 26% 1,487,092 15% 58% 1,169,497 317,595 4,125,561 84% 1,580,525 32% 38% 1,168,194 412,331 6,149,389 68% 3,749,299 41% 61% 2,526,743 1,222,556 1,636,148 77% 702,551 33% 43% 486,215 216,336 1,257,236 80% 1,047,316 67% 83% 924,366 122,950 986,120 31% 650,247 20% 66% 442,568 207,678 4,469,097 51% 3,356,411 38% 75% 3,031,832 324,579 1,873,155 83% 1,117,058 49% 60% 807,980 309,078 3,532,180 70% 2,567,503 51% 73% 2,341,358 226,145 16,957,161 93% 10,980,660 60% 65% 7,833,711 3,146,949 84,847,038 74% 48,318,427 42% 57% 37,974,101 10,344,326 298,788,363 68% 186,779,693 43% 63% 135,053,700 51,725,993