MANAGEMENT PLAN (2021-2023) - Informal EB briefing 14 May 2020 - WFP
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MANAGEMENT PLAN
(2021-2023)
Informal EB briefing
14 May 2020
Resource Management DepartmentObjectives & outline of the presentation
Objective of the informal EB briefing
Validate initial planning assumptions for the development of Management Plan
(2021-2023), including the overall 2021 Programme Support and Administrative (PSA)
budget
Outline of the presentation
1. Strategic and financial context
2. Building the Management Plan (2021-2023)
a) Key principles
b) Overall approach & preliminary figures
3. Next steps
21. STRATEGIC & FINANCIAL CONTEXT
Key external drivers
▪ Uncertainty in resourcing projections and refocusing activities due to the COVID-19
pandemic
▪ Record number of concurrent emergencies and climate change-related disasters
▪ An increasingly challenging operational environment
▪ Adherence to the Humanitarian Development Nexus: focus strategy, programme
and policy development across humanitarian and development assistance
▪ Demand for strengthened accountability on management of funds and results
▪ Adherence to the UN reform to improve partnership, efficiency and effectiveness
▪ Capitalize on opportunities to use innovative technologies to increase efficiency
4Internal projections
▪ Needs based plans (operational requirements) will exceed
resource availability
▪ Information on gap between needs and resources will be
provided in the Management Plan (2021-2023) document based on
projected income
▪ Implementation plans will continue to be published online after
the Second Regular Session of the Executive Board
5Key underway internal actions: corporate reprioritization
▪ A corporate reprioritization exercise was launched in April 2020 to
ensure focus on WFP’s operations and the COVID-19 response, and
attention to oversight issues
▪ Better definition and classification of initiatives will enable improved
quality of results
▪ The number of initiatives imposing workload on the field will be reduced
▪ The exercise will enable some reallocation of multilateral funds to crisis
response activities
6Key internal actions underway : Bottom-up Strategic
Budgeting
An extended timeline for the Bottom-up Strategic Budgeting Exercise (BUSBE), to be
fully reflected in the Management Plan (2022-2024)
▪ COVID-19 outbreak and impact on WFP’s work
▪ Time needed for appropriate consultation, buy-in and analysis
▪ Exercise launched, BUSBE Director appointed
▪ BUSBE project team and the internal working group being set-up
▪ Enhancing data collection, etc. to be followed by a thorough internal review process
▪ Refinement of the parameters of the exercise
7Updated resourcing projections
Forecast Actual Forecast Updated
as per MP contributions as per MP forecast
7,970
7,450 7,450
6,800
USD million
2019 2020
No significant variation observed on 2020 resource projections; ISC income
forecast of USD 446 million per 2020 MP remains unchanged, versus 2020 PSA
8
budget of USD 423.6 millionProjected PSAEA balance at end-2020 (USD M)
446.0
+
Income
249.5
179.1
Based on 2020 Equivalent to
contributions income of -30.6 -39.7 -22.5
5.1 months of
USD 7.45 billion PSA expenditure
-
Expenditures
-423.6
PSAEA 2020 ISC income PSA 2020 ceiling Ongoing critical 2020 Critical Allocation to IRA PSAEA 2020
opening balance (6.5%) corporate corporate closing balance
initiatives initiatives
Assuming 2020 contributions income of USD 7.45 billion, and full
consumption of 2020 Critical Corporate Initiatives (CCI); excludes USD 8 million
9
Wellness Fund proposal, to be made to EB.A/20202. BUILDING THE MANAGEMENT PLAN (2021-2023)
2.1 Key principles
The Programme Support and Administrative Budget
What is the PSA?
A portion of the WFP budget providing indirect support to WFP activities (i.e.: costs that
cannot be directly linked to the execution of a programme or activity)
How is it funded?
From the standard Indirect Support Cost (ISC) charge on each contribution (with a
limited number of exceptions)
What does it cover?
The majority of HQs and RBx costs, as well as the “backbone” structure of country offices
How is it approved?
The EB approves the PSA appropriation within the Management Plan, authorizing the
ED to spend
12The Programme Support and Administrative Budget
1 2 Strategy & Direction
PSA
PSA Budget
ISC Income Approved in MP
Services to operations appropriation
lines
Governance, independent
oversight & fundraising
Balance
Cover difference between ISC
income and PSA expenditure
3
Reserve to underwrite risk of
decrease in ISC revenue
PSAEA
Subject to EB approval
4
CCIs or Thematic Support Funds
Strengthening WFP’s reserves
132021 PSA Planning Parameters
▪ A more detailed and engaged process to estimate contributions
revenue
▪ The annual PSA budget to respect the need to align funding to the
current income forecast
▪ Actual and projected PSAEA to respect target levels noted by the
Executive Board in 2015 (5-month PSA target level, 2-month
spending floor)
142.2 Overall approach & preliminary figures
Planning assumption for Management Plan (2021-23)
(1/2)
▪ Assumed income of USD 7.4 billion, generating an ISC income of USD 443
million
▪ 2021 PSA budget to be zero growth in the current overall budget (USD 423.6
million), plus:
▪ Funding for oversight activities; and
▪ Mainstreaming specific emergency support and programme functions reliant
on donor contributions into the PSA prior to completion of BUSBE
▪ No proposals for new Critical Corporate Initiatives (CCIs)
▪ However, corporate reprioritization exercise likely to result in extending
completion dates of 2020 CCIs, with unutilized funds in 2020 carried over to
2021
▪ One-time proposal for employee termination funding is under consideration
16Planning assumption for Management Plan (2021-23)
(2/2)
▪ Maintain the standard ISC rate of 6.5 percent and a lower ISC rate
(at least 4 percent) for:
▪ Host governments’ contributions to their own programmes; and
▪ Contributions from governments of developing countries or with
economies in transition
▪ Any other changes in ISC policy will be discussed separately with
the Board and incorporated subject to feedback in Informal
Consultations
172016-2019 actual contributions and 2020-2021 projections
7.97
7.45 7.45 7.45 7.40
7.23
6.80
6.00
5.77 5.70
5.20
4.90
USD billion
2016 2017 2018 2019 2020 2021
Forecast Contributions MP Actual Contributions
Updated forecasted contributions
Forecast of USD 7.4 billion assumed for MP 2021 planning (USD 50 million
decrease from projections in MP 2020) 18Approved & supplementary PSA vs. ISC income
500 479
440 446
450 40
401 69
400 382
355
350 36
305 14
300 284
27 20
USD million
255 9
250 22 20
200 424
385
335 335
150 290
282 282
249 249
100
50
0
2012 2013 2014 2015 2016 2017 2018 2019 2020
Approved PSA budget Supplementary PSA/CCIs ISC income
The approved PSA level grew slightly more slowly than the ISC income (6.9 percent
vs. 7.2 percent compound growth rate respectively) 192021 PSA planning proposal (USD M)
Estimated Overall Income 7,400
Estimated ISC Income 443.0
“Living within
our means” for
2021
Proposed PSA level (Zero Growth + oversight
423.6-435.0
and transfers from donor funding)
203. NEXT STEPS
Next key dates for the Management Plan process
14 May 21 Jul 5 Sep 15 Sep Oct 29 Oct 16 Nov
EB Informal Executive Submission of Executive Advisory FAO Finance Beginning of
Briefing on Board first key extracts Board second Committee on Committee the Second
MP 2021-23 informal to the informal Administrative Regular
consultation Executive consultation & Budgetary Session of the
Board Questions EB and MP
(ACABQ) approval
22THANK YOU
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