UNU Work Programme and Budget Estimates for the 2018-2019 Biennium

UNU Work Programme and Budget Estimates for the 2018-2019 Biennium
Council of the United Nations University
                                                            Sixty-eighth Session
                                                          4 – 5 December 2017
                                                                   Tokyo, Japan

UNU Work Programme and Budget
  Estimates for the 2018-2019

                                                                Distr.: Limited
                                                             4 December 2017

                                                               Original: English

           UNU Work Programme and Budget Estimates for the 2018-2019 Biennium
UNU Work Programme and Budget Estimates for the 2018-2019 Biennium
                                                                                          PAGE   PARAGRAPH

 I. OVERVIEW OF THE WORK PROGRAMME AND BUDGET FOR B2018-2019                               4        1-3

PRIORITIES 2018-2019                                                                       4       4-15

 II. ORGANISATION OF THE UNITED NATIONS UNIVERSITY B2018-2019                              6

UNU ORGANISATIONAL CHART                                                                   6        16
GOVERNANCE                                                                                 7       17-27
UNU CENTRE                                                                                 8       28-32
DESCRIPTION OF UNU INSTITUTES                                                              9       33-49

 III. BUDGET OF THE UNITED NATIONS UNIVERSITY B2018-2019                                   13

OVERVIEW                                                                                   13      50-55
EXPENDITURE ESTIMATES                                                                      15      56-80
INCOME ESTIMATES                                                                           22     81-102
FOREIGN EXCHANGE EXPOSURE                                                                  30     108-110
BUDGET AUTHORISATIONS GIVEN BY THE UNU COUNCIL TO THE RECTOR                               30       111

 IV. WORK PROGRAMME OF THE UNITED NATIONS UNIVERSITY B2018-2019                            31

UNU-BIOLAC PROGRAMME AND BUDGET 2018-2019                                                  32
UNU-CPR PROGRAMME AND BUDGET 2018-2019                                                     34
UNU-CRIS PROGRAMME AND BUDGET 2018-2019                                                    36
UNU-CS PROGRAMME AND BUDGET 2018-2019                                                      39
UNU-EGOV PROGRAMME AND BUDGET 2018-2019                                                    42

UNU-EHS PROGRAMME AND BUDGET 2018-2019                                                     44
UNU-FLORES PROGRAMME AND BUDGET 2018-2019                                                  47
UNU-GCM PROGRAMME AND BUDGET 2018-2019                                                     50
UNU-IAS PROGRAMME AND BUDGET 2018-2019                                                     53
UNU-IIGH PROGRAMME AND BUDGET 2018-2019                                                    56
UNU-INRA PROGRAMME AND BUDGET 2018-2019                                                    59
UNU-INWEH PROGRAMME AND BUDGET 2018-2019                                                   62
UNU-MERIT PROGRAMME AND BUDGET 2018-2019                                                   64
UNU-WIDER PROGRAMME AND BUDGET 2018-2019                                                   67

 V. SUMMATIVE WORK PROGRAMME TABLES AND GRAPHS B2018-2019                                  70

WORK PROGRAMME B2018-2019 BY UNU INSTITUTE                                                 70       112
RESEARCH PROGRAMME THEMES                                                                  73       113
EXPENDITURE FOR ACADEMIC ACTIVITIES BY UNU INSTITUTE                                       74       114
INTERNAL COLLABORATION MATRIX B2018-2019                                                   75       115
EXTERNAL COLLABORATION MATRIX B2018-2019                                                   76       116
EXPENDITURE B2018-2019 BY BUDGETARY FUND                                                   78       117

     ANNEXES                                                                               79

ANNEX I: SUMMARY TABLE OF THE UNU BUDGET PROPOSAL FOR B2018-2019                           79
ANNEX IV: UNU STAFFING TABLE FOR ESTIMATED B2018-2019                                      82

UNU Work Programme and Budget Estimates for the 2018-2019 Biennium
List of Abbreviations and Acronyms

B2008-2009   2008-2009 Biennium                                ILO          International Labour Organization
B2010-2011   2010-2011 Biennium                                IMF          International Monetary Fund
B2012-2013   2012-2013 Biennium                                IOM          International Organization for Migration
B2014-2015   2014-2015 Biennium                                             Intergovernmental Platform on
                                                                            Biodiversity and Ecosystem Services
B2016-2017   2016-2017 Biennium                                             Intergovernmental Panel on Climate
B2018-2019   2018-2019 Biennium                                             Change
             German Federal Ministry of Education and                       International Public Sector Accounting
BMBF                                                           IPSAS
             Research                                                       Standards

BMZ          German Federal Ministry for Cooperation           ITU          International Telecommunication Union
                                                                            International Union for Conservation of
c/f          Carried Forward                                   IUCN
C3           UNU Campus Computing Centre                       IWMI         International Water Management Institute
CBD          Convention on Biological Diversity                             Ministry of Education, Culture, Sports,
             United Nations System Chief Executives                         Science and Technology of Japan
             Board                                             MOFA         Ministry of Foreign Affairs of Japan
             Conference of Directors of UNU Research
CONDIR                                                         NCDs         Non-Communicable Diseases
             and Training Centres / Programmes
COP          Conference of the Parties                         NGO          Non-Governmental Organization

             Community of Portuguese-speaking                  OC           UNU Office of Communications
             Countries                                                      Organisation for Economic Co-operation
             United Nations Department of Field                             and Development
             Support                                                        Office of the United Nations High
             United Nations Economic Commission for                         Commissioner for Human Rights
             Latin America and the Caribbean                   PAU          Panafrican University
             Environmental Migration, Social
             Vulnerability and Adaptation                      PSS          Policy Support System
             Global Partnership for Digital Gender             SAC          Scientific Advisory Committee
             United Nations Economic and Social                SDG          Sustainable Development Goal
             Commission for Asia and the Pacific               SNV          Netherlands Development Organisation
             United Nations Economic and Social
ESCWA                                                          SPC          Specific Project Contribution
             Commission for West Asia
EU           European Union                                    STI          Science, Technology and Innovation
             Environmental Vulnerability and                                Tokyo International Conference of Africa’s
EVES                                                           TICAD
             Ecosystem Services                                             Development
             Food and Agriculture Organization of the          TU Dresden   Technische Universität Dresden
             United Nations
                                                               UGent        Ghent University
FAP          UNU Financial Assistance Programme
                                                               UN           United Nations
GEF          Global Environment Facility
                                                                            United Nations Action for Cooperation
             Deutsche Gesellschaft für Internationale          UN-ACT
                                                                            Against Trafficking in Persons
GIZ          Zusammenarbeit (German development
                                                                            Joint United Nations Programme on
             agency)                                           UNAIDS
GMG          Global Migration Group                                         United Nations Convention to Combat
GWP          Global Water Partnership                                       Desertification
                                                                            United Nations Conference on Trade and
HLCP         High-Level Committee on Programmes                UNCTAD
IADB         Inter-American Development Bank                                United Nations Department of Economic
                                                               UN DESA
                                                                            and Social Affairs
IBEI         Institut Barcelona d'Estudis Internacionals
                                                               UNDP         United Nations Development Program
             International Conference on Theory and
ICEGOV                                                                      United Nations Economic Commission for
             Practice of Electronic Governance                 UNECE
             Information and communications
ICT                                                            UNEP         United Nations Environment Programme
             Information and Communication                                  United Nations Educational, Scientific and
ICTD                                                           UNESCO
             Technologies Division (of DFS)                                 Cultural Organization
IDR          UNIDO Industrial Development Report               UNESCO-IHE   IHE Delft Institute for Water Education
             Institute for Global Environmental                             UNESCO International Hydrological
IGES                                                           UNESCO-IHP
             Strategies                                                     Programme
IHA          International Hydropower Association

UNU Work Programme and Budget Estimates for the 2018-2019 Biennium
UN Framework Convention on Climate               UN-Water   United Nations Water
                                                                          UN-Water Decade Programme on Capacity
UNFPA         United Nations Population Fund                   UNW-DPC
              United Nations Human Settlements                            United Nations Entity for Gender Equality
UN-HABITAT                                                     UN-Women
              Programme                                                   and the Empowerment of Women
              United Nations High Commissioner for             UNWTO      World Tourism Organization
                                                               USD        United States Dollar
UNIC          United Nations Information Centre
                                                                          Vulnerability Assessment, Risk
UNICEF        United Nations Children's Fund                   VARMAP
                                                                          Management and Adaptive Planning
              United Nations Industrial Development            VUB        Vrije Universiteit Brussel
              United Nations Office for Disaster Risk          WB         World Bank
              Reduction                                        WESA       Water and Energy Security for Africa
              United Nations Institute for Training and
UNITAR                                                         WFP        World Food Programme
UNOPS         United Nations Office for Project Services       WHO        World Health Organization

UNOSD         UN Office for Sustainable Development            WLC        Water Learning Centre

UNU           United Nations University                        WMO        World Meteorological Organization

UNU Centre    United Nations University Centre                 WWB        Water Without Borders

UNU HQ        UNU Headquarters in Tokyo
              UNU Biotechnology Programme for Latin
              America and the Caribbean
UNU-CPR       UNU Centre for Policy Research
              UNU Institute on Comparative Regional
              Integration Studies
UNU-CS        UNU Computing and Society
              Operating Unit on Policy-Driven Electronic
              UNU Institute for Environment and Human
              UNU Institute for Integrated Management
              of Material Fluxes and of Resources
UNU-FTP       UNU Fisheries Training Programme
              UNU Institute on Globalization, Culture
              and Mobility
              UNU Gender Equality Studies and Training
UNU-GTP       UNU Geothermal Training Programme
UNU-HQ        UNU Headquarters
UNU-HQ Bldg   UNU Headquarters Building (in Tokyo)
              UNU Institute for the Advanced Study of
              UNU International Institute for Global
              UNU Institute for Natural Resources in
              UNU Institute for Water, Environment and
              UNU Institute for Sustainable
              United Nations University Institute for
UNU-ISP       Sustainability and Peace
              (former, now UNU-IAS)
              UNU Land Restoration Training
              UNU Maastricht Economic and Social
UNU-MERIT     Research Institute on Innovation and
              UNU Office at the United Nations in New
UNU-ViE       UNU Vice-Rectorate in Europe
              UNU World Institute for Development
              Economics Research

UNU Work Programme and Budget Estimates for the 2018-2019 Biennium
I.   Overview of the Work Programme and Budget for B2018-2019

    1.    The work programme and budget of the United Nations University (UNU) for the 2018-2019
          biennium (B2018-2019) furthers the objectives laid out in UNU’s Strategic Plan 2015-2019,
          adopted by the UNU Council at its 62nd session, in December 2014.

    2.    The budget income projections for Specific Programme Contributions (SPCs) and operating
          contributions for B2018-2019 have been formulated with extreme prudence, in line with
          Advisory Committee on Administrative and Budgetary Questions document AC/1760 dated 23
          November 2011 (paragraph 7) and previous budgeting practice at UNU. The projections
          represent the lowest estimate based on information available at the time of budgeting. UNU
          expects to receive additional contributions during B2018-2019 to support existing and new
          research activities, as in previous budget cycles.

    3.    This document is structured as follows:

          - Chapter I – Overview of the Work Programme and Budget for B2018-2019, which articulates
            the University’s priorities and objectives for 2018-2019.
          - Chapter II – Organisation of the United Nations University B2018-2019, which contains
            detailed descriptions of UNU entities.
          - Chapter III – Budget of the United Nations University B2018-2019, comprising the overall
            University budget.
          - Chapter IV – Work Programme of the United Nations University B2018-2019, which
            provides detailed programme and budget information for each UNU institute.
          - Chapter V – Summative Work Programme Tables and Graphs B2018-2019, comprises a
            graphic overview of information provided in the previous chapter.

Priorities 2018-2019

    4.    The University set out a programme of change in its Strategic Plan 2015-2019 in order to re-align
          UNU activities with the University’s core mission as defined by the UNU Charter, Article 1,
          paragraph 2: “The University shall devote its work to research into the pressing global problems
          of human survival, development and welfare that are the concern of the United Nations and its
          agencies, with due attention to the social sciences and the humanities as well as natural sciences,
          pure and applied.”

    5.    The UNU budget for B2018-2019 seeks to build on the achievements made in the first three
          years of the Strategic Plan and integrate lessons learned to deliver research excellence and
          ensure ever greater policy relevance. Research conducted by the University in B2016-2017
          culminated in major reports and policy briefs, which helped shape several important policy
          discussions, such as the World Humanitarian Summit in February 2016, and a United Nations
          Security Council debate on human trafficking and forced labour in March 2017.

    6.    Rigorous strategic planning allows UNU to continue its bid for greater relevance in the United
          Nations system, and in academic and policymaking communities. The University is streamlining
          the focus and size of programmes and projects to better serve its stakeholders. Since 2016, new
          benchmarks have been put in place to ensure that UNU’s strategic priorities are being advanced.

    7.    The increased frequency of Council sessions has resulted in a more substantive and effective
          partnership with the scientific experts that make up the Council. Oversight of UNU programmes
          has strengthened owing to the Council’s improved familiarity with the UNU’s activities and goals.

    8.    In 2018-2019, the University’s academic programme will focus on three principal themes: peace
          and governance; environment, climate and energy; and global development and inclusion. These
themes were carefully selected to align with the key challenges and questions facing humanity.
      They allow UNU to maintain a disciplined, yet comprehensive approach to its research

9.    The Strategic Plan 2015-2019 calls for new, innovative research programming that aligns with
      the needs of policymakers on topics of special relevance to them. The 2018-2019 academic
      programme will address all 17 Sustainable Development Goals leveraging the specialised
      expertise of UNU’s global system of research institutes which cover a broad range of thematic

10.   UNU will continue to be a key actor in the area of migration. In 2017, UNU severed as the Chair
      of the Global Migration Group (GMG)—an inter-agency group bringing together heads of United
      Nations entities to promote the wider application of all relevant international and regional
      instruments and norms relating to migration, and encourage the adoption of more coherent,
      comprehensive and better coordinated approaches to the governance of international
      migration. UNU coordinated the preparation of issue briefs for the six migration thematic
      sessions mandated by New York Resolution (A/RES/71/280), which will guide policy discussions
      on migration into 2018. Migration will continue to be an important area of research, with more
      than one-fifth of UNU’s research programmes expected to engage in migration-related academic
      activities during B2018-2019.

11.   The University is increasingly called upon to provide insightful, future-oriented policy research
      and advice. UNU is ensuring that its personnel are able and ready to deliver research that meets
      the pressing needs of the United Nations and the United Nations Secretariat. In March 2017, the
      High-Level Committee on Programmes (HLCP) of the United Nations System Chief Executives
      Board for Coordination (CEB) invited UNU to provide research on frontier issues, and requested a
      paper on the governance of cybersecurity.

12.   The UNU Council adopted in April 2017, a new policy on gender equality, which aims to achieve
      full gender parity within the University by 2021—a target that would exceed the
      recommendation in the Secretary-General’s System-Wide Strategy on Gender Parity. In B2016-
      2017, the University significantly improved gender balance at senior levels and extended paid
      parental leave entitlements to holders of Personnel Service Agreement (PSA) contracts.

13.   Going forward, the University expects at least a 10 per cent increase in new funding for specific
      academic projects for B2018-2019 compared to B2016-2017 (Graph 6). Furthermore, UNU is
      forecasting an increase in expenditure for academic activities in B2018-2019, thereby drawing
      less on reserves and core funding.

14.   On the advice of the UNU Council, the University has taken actions to improve the financial
      performance of its Endowment Fund. From 2017, the Endowment Fund will be managed by a
      new fund manager using a passive index management strategy. In addition, the University has
      voluntarily lowered its rate of withdrawal from the Fund (from 5 percent to 4.75 percent of the
      average five-year market value) in order to ensure its long-term sustainability.

15.   In August 2017, UNU Rector was appointed by the Secretary-General to serve a second term as
      Rector of the University. This appointment will ensure that UNU continues to deliver on its
      programme of change, initiated in 2013.

II. Organisation of the United Nations University B2018-2019
UNU Organisational Chart
   16.   The organisational chart below depicts the entities of UNU.

                                                                                UNU Council

                                                                                  Rector                                 Committee &

                                                                 Research                                                                                   UNU
                                      Vice-Rector                                                                          Director of
         Senior Vice-Rector                                                                Executive Officer                                           Representation
                                        Europe                 Institutes and                                            Administration
                                                                                                                                                         at UNESCO

                                                             UNU-EGOV                                    Office of the              Budget & Finance
                                                             UNU-EHS                                        Rector                      Services
                                                                                                          Office of                Human Resources
                                                                                                       Communications                 Services
                                                             UNU Iceland
                                                                                                      Computing Centre

                                                              Operating Units
                                                                                                                                      Conference &


UNU Council
    17.   The UNU Council is the governing board of the University. Members are appointed by the
          Secretary-General of the United Nations and the Director-General of the United Nations
          Educational, Scientific and Cultural Organization (UNESCO) and serve in their individual capacity
          (not as representatives of their countries), normally for six-year terms. The Secretary-General of
          the United Nations, the Director-General of UNESCO and the Executive Director of United
          Nations Institute for Training and Research (UNITAR) are ex-officio members of the Council.
    18.   The Council formulates principles and policies that govern the activities and operations of the
          University in accordance with the UNU Charter. It adopts statutes for the application of the UNU
          Charter and decides upon the setting up or incorporation of research institutes in developed or
          developing countries and establishes standards for their operation.
    19.   The Council comprises an Executive Committee as well as a Committee on Finance, Budget and
          Human Resources. The latter considers the work programme and the budget of the University on
          the basis of proposals submitted to it by the Rector, which the Council subsequently approves.
          The Council reports to the United Nations General Assembly, the United Nations Economic and
          Social Council, and the Executive Board of UNESCO.
    20.   As of October 2017, the Council consists of 12 members, the Rector and three ex-officio
          members and is gender-balanced. Following reform efforts in early 2016, the Council
          membership was reduced to half, from 24 to 12 members, while the frequency of its meetings
          was increased to twice per year.

Office of the Rector
    21.   The Office of the Rector supports the Rector in his capacity as the chief academic and
          administrative officer of UNU and assists in executive management and coordination of the UNU
          system. This includes responsibilities for the University's direction, organisation, administration,
          programme and institutional development.
    22.   The Office provides an overall supporting role for governance and policy development within the
          UNU system, in particular through the UNU Council and its Executive Committee, Advisory
          Boards and Committees of the UNU institutes, the Management Group, the Conference of
          Directors of UNU Research and Training Centres/Programmes (CONDIR), and the Academic
          Committee. It also manages the legal affairs of the University with the support of legal advisors.
    23.   The Office of the Rector maintains a close relationship with the main host government of Japan,
          in particular the Ministry of Foreign Affairs (MOFA) and the Ministry of Education, Culture,
          Sports, Science and Technology (MEXT), the Ministry of the Environment, and the Ministry of
    24.   A representative to UNESCO, based in Paris, France, serves in a liaison capacity between UNU
          and UNESCO.

Management Group
    25.   The Management Group is a forum of senior UNU personnel that considers policy development,
          strategy, planning, and other priority issues. The Group is chaired by the UNU Rector and
          includes the Senior Vice-Rector, the Vice-Rector, the Director of Administration, and the
          Executive Officer. The Group meets on a regular basis to review developments and evaluate the
          evolving needs of the University.
    26.   The Senior Vice-Rector, based in Tokyo, supports management initiatives UNU-wide and
          maintains UNU’s scientific partnership with the University of Tokyo and oversees a number of
          broader relationships in Japan, including with government ministries and the general public.

27.   UNU operates a Vice-Rectorate in Europe (UNU-ViE), located in Bonn, Germany. Established in
          May 2007, UNU-ViE strengthens the presence of UNU in Europe. The Vice-Rectorate is dedicated
          to developing knowledge-based sustainable solutions for global problems and is an active
          organiser of international science policy dialogues for sustainability. UNU-ViE also hosts UNU’s e-
          waste research initiative, Sustainable Cycles (SCYCLE).

UNU Centre

    28.   The global UNU system is coordinated by UNU Centre, which is comprised of the Office of the
          Rector, the Vice-Rectorate in Europe, UNU Administration, the Office of Communications, the
          Campus Computing Centre, the Centre for Policy Research (UNU-CPR), the Operating Unit on
          Policy Driven Electronic Governance (UNU-EGOV), and UNU’s representation at UNESCO.

    29.   UNU Administration provides services related to budget and finance, human resources,
          procurement, management of the enterprise resource planning system, operations, and
          conference and facilities management. While most UNU institutes have in-house administrative
          capacity, UNU Administration is responsible for, inter alia, developing unified standards and
          formats, handling headquarters functions – like the production of financial statements -
          managing the treasury system, and budget reporting to the UNU Council.
    30.   UNU Administration, located in Tokyo and its Global Business Centre, located in Kuala Lumpur,
          provide multi-function transactional services to the entire UNU system.

Office of Communications
    31.   The Office of Communications (OC) develops and leads the University’s communications strategy
          including digital communications, visual identity, media relations, stakeholder outreach, and
          content development in English and Japanese. OC works in close collaboration with
          communications focal points across the UNU system to articulate and meet global
          communications goals. It maintains UNU’s main web platforms and social media accounts, with
          input from institutes and other stakeholders, and promotes UNU’s brand and identity. It
          oversees global communication campaigns and strategies, and establishes the editorial tone and
          style for UNU’s many communications products. OC also coordinates media relations activities,
          often in collaboration with focal points and partners.

Campus Computing Centre
    32.   The Campus Computing Centre (C3) is the technology arm of the University. The Centre provides
          user-focused, innovative and cost-effective shared technology solutions that assist UNU and its
          institutes in achieving their respective missions. C3 oversees, implements, advances and
          maintains the University’s technology infrastructure and services. Its main office is in Tokyo,
          where it also hosts UNU’s main data centre. C3 relies on a second data centre in Germany to
          ensure faster services for institutes in Europe and Africa, and as a proven back-up site for Tokyo.

Description of UNU Institutes

UNU Biotechnology Programme for Latin America and the Caribbean (UNU-BIOLAC), Caracas, Venezuela
    33.   In line with UNU´s goals and operational activities, UNU-BIOLAC focuses on solving priority
          problems for the Latin American and Caribbean region through the application of biotechnology.
          The Programme aims to build local research capacity, create knowledge, and be a biotechnology
          think tank for the United Nations system. Once a year, the Programme Coordinator reviews the
          scientific needs of the region with the support and advice of the Scientific Advisory Committee
          (SAC) appointed by the Rector. During SAC meetings, Programme priority areas are revised to
          maximise effectiveness. UNU-BIOLAC is hosted by the Venezuelan Government through the
          Ministry of Higher Education, Science and Technology, at the premises of the Instituto de
          Estudios Avanzados (IDEA), a major science and technology hub.

UNU Centre for Policy Research (UNU-CPR), New York, United States of America
    34.   The relaunched UNU-CPR in New York will generate policy research to inform major UN debates
          in the areas of international peace and security, sustainable development and emerging global
          governance issues. The Centre’s 2018-2019 programme of work will focus on three research
          areas: (i) the nature of, and solutions to, violence and conflict; (ii) inclusion and inequality in
          sustainable development and, (iii) emerging global governance issues, such as migration,
          cyberspace and artificial intelligence.
    35.   UNU-CPR (New York) also offers strategic representational support to the UNU Rector and all
          institutes within the UNU system. UNU-CPR (New York) results from the merger of the UNU
          Centre for Policy Research (UNU-CPR) in Tokyo and the UNU Office at the United Nations in New
          York (UNU-ONY). The consolidated Centre in New York will be better positioned to be a go-to
          think tank for key United Nations actors.

UNU Institute on Comparative Regional Integration Studies (UNU-CRIS), Bruges, Belgium
    36.   UNU-CRIS focuses on the provision of global and regional public goods, and on processes and
          consequences of intra- and inter-regional integration. The Institute generates policy-relevant
          knowledge on new forms of governance and cooperation, and builds capacity to address
          challenges at the global and regional levels. UNU-CRIS acts as a resource for the United Nations
          system, with strong, collaborative links to United Nations entities dealing with the provision and
          management of international and regional public goods. The Institute works in partnership with
          institutes and initiatives throughout the world focused on integration, governance, stability and

UNU Institute on Computing and Society (UNU-CS), Macau SAR, China
    37.   UNU-CS operates at the intersection of information and communication technologies and
          international development. The Institute addresses key challenges faced by developing societies
          through high-impact innovations in computing and communication technologies by: (i)
          investigating and inventing human-centred information and communication technologies in the
          areas of sustainability, development, governance, peace and security, human rights and human
          dignity; (ii) making an impact on policymakers, within the United Nations system and beyond,
          through actionable knowledge and thought-leadership; (iii) nurturing the next generation of
          inter-disciplinary computing, social scientists and engineers in developing countries; and (iv)
          embracing the dynamism of the city of Macau and the Pearl River Delta region.

Operating Unit on Policy-Driven Electronic Governance (UNU-EGOV), Guimarães, Portugal
    38.   Hosted by the University of Minho, UNU-EGOV focuses on the intersection of governance,
          technology and development. Its mission is to transform governance mechanisms and build
          effective governance capabilities through the strategic application of digital technologies, to
          contribute to social, economic, environmental, and peace and security dimensions of sustainable
          development. UNU-EGOV pursues this mission by conducting policy-relevant research;
          translating research findings into policy instruments; building capacity in localising and applying
          such instruments within and across relevant governmental and intergovernmental organisations;
          building and maintaining research and policy networks; and monitoring, evaluating and
          disseminating the latest developments in the area.

UNU Institute for Environment and Human Security (UNU-EHS), Bonn, Germany
    39.   The mission of UNU-EHS is to conduct cutting edge research on risks and adaptations related to
          environmental hazards and global change. The Institute’s research promotes policies and
          programmes to reduce these risks while also considering the interplay between environmental
          and societal factors. UNU-EHS research focuses on several areas, including: climate change
          adaptation through insurance-related approaches; environmentally induced migration and social
          vulnerability; ecosystem services and environmental deterioration processes; and models and
          tools to analyse vulnerability and risks linked to natural hazards with a focus on urban space and
          rural-urban interfaces. The Institute’s research is conducted with the underlying goal of
          connecting solutions to development pathways. Beyond its research, UNU-EHS is engaged in
          education. It offers a joint Master of Science degree programme, The Geography of
          Environmental Risks and Human Security with the University of Bonn, and it hosts international
          PhD projects and courses on the global issues of environmental risks and sustainable

UNU Institute for Integrated Management of Material Fluxes and of Resources (UNU-FLORES), Dresden,
    40.   UNU-FLORES develops strategies to resolve pressing problems in the sustainable use and
          integrated management of environmental resources (water, soil and waste). Focusing on the
          needs of the United Nations and its Member States, particularly developing countries and
          emerging economies, the Institute engages in research, capacity development, advanced
          teaching and training, and the dissemination of knowledge. In all its activities, UNU-FLORES
          strives to fulfil its mission of advancing the Nexus Approach, an interdisciplinary methodology on
          the sustainable management of environmental resources.

UNU Institute on Globalization, Culture, and Mobility (UNU-GCM), Barcelona, Spain
    41.   UNU-GCM supports good governance, cultural diversity, democracy and human rights by
          promoting a better understanding of the socio-cultural aspects of migration in the context of
          globalization. To achieve this, it generates evidence-based knowledge to support the formulation
          of migration policies at global, regional and local levels. Policy-relevant research at UNU-GCM
          focuses on intercultural dialogue, statelessness, gender, and the establishment of diverse
          diasporas in urban centres. Located at the World Heritage Site of Sant Pau in Barcelona, the
          Institute’s focus during B2018-2019 will be on the major cultural and social phenomena of
          migration; specifically the questions of inclusion, work and technology, and the role of cities in
          migration governance.

UNU Institute for the Advanced Study of Sustainability (UNU-IAS), Tokyo, Japan
    42.   The mission of UNU-IAS is to advance efforts to achieve a more sustainable future. The Institute
          serves the international community by generating policy-oriented research and capacity
          development on sustainability issues, and by informing relevant policymaking and debates
          within the United Nations system. The activities of the Institute span three thematic areas:
          transformations toward sustainable societies; natural capital and biodiversity; and global change
          and resilience. Through its postgraduate education programmes, UNU-IAS develops international
          leaders with the interdisciplinary skills needed to advance creative solutions to sustainability
          problems. The Institute offers masters and doctoral degrees, postdoctoral fellowships and
          innovative short courses, in close collaboration with leading universities in Japan and other
          countries. Moreover, UNU-IAS maintains an operating unit in Ishikawa / Kanazawa, Japan.

UNU International Institute for Global Health (UNU-IIGH), Kuala Lumpur, Malaysia
    43.   The mission of UNU-IIGH is to undertake research, capacity development and the dissemination
          of knowledge on key issues related to human health. The Institute helps develop and strengthen
          health policies – particularly for people in developing countries – to support the implementation
          of preventive approaches to human health. UNU-IIGH advances eco-social understandings of
          human health, an approach that acknowledges the economic and social foundations of health.
          The Institute is also actively involved in capacity building and research training, and provides
          opportunities for students in partnership with institutions around the world. The Institute is
          based at the Universiti Kebangsaan Malaysia (National University of Malaysia) Medical Centre.

UNU Institute for Natural Resources in Africa (UNU-INRA), Accra, Ghana
    44.   UNU-INRA’s vision is to become Africa’s leading research, teaching, and capacity strengthening
          institution in natural resources management. Through its close collaboration with leading
          national universities and research institutions in Africa, the Institute contributes to the
          sustainable development of the continent’s natural resources. In doing so, it aims to preserve
          the environment, mitigate the effects of climate change, and realise a better quality of life for
          the people of Africa. Specifically, UNU-INRA conducts research on renewable natural resources
          for efficient and sustainable use; green economy; and the facilitation of good governance and
          management of non-renewable natural resources in Africa. UNU-INRA also maintains operating
          units in:
          -   Cameroon – management of big data (in natural resources management);
          -   Cote d’Ivoire – environmental economics and political economy (of natural resources
          -   Namibia – aquatic resources and aquaculture;
          -   Senegal – value addition and technological innovations (for natural resources management);
          -   Zambia – mineral resources value chain.

UNU Institute for Water, Environment and Health (UNU-INWEH), Hamilton, Canada
    45.   UNU-INWEH’s mission is to help resolve pressing water challenges through the critical analysis
          and synthesis of existing bodies of scientific discovery; targeted research to identify emerging
          policy issues; the application of on-the-ground scalable science-based solutions to water issues;
          and global and regional outreach. The Institute engages in water initiatives that help developing
          countries reduce poverty, improve human wellbeing, ensure environmental sustainability and
          growth, and foster gender equity. UNU-INWEH’s research programme covers a range of water-
          related issues, including: supporting Member States in achieving water-related SDGs; assessing
          the role of unconventional sources of water in the alleviation of water scarcity; addressing the
          water-food-energy-environment nexus and water-related security issues; managing water-
          related health and environmental risks; and reducing the risk of water-related disasters, such as
          floods and droughts, and increasing resilience against them.

UNU Institute for Sustainable Development (UNU-IRADDA), Algiers, Algeria
    46.   UNU-IRADDA’s mission will be to help resolve pressing challenges related to sustainable
          development, particularly on the African continent. Its focus is intended to be on the social,
          economic and cultural dimensions of sustainable development and its governance.

UNU Maastricht Economic and Social Research Institute on Innovation and Technology, (UNU-MERIT)
Maastricht, The Netherlands
    47.   UNU-MERIT is a joint research and training institute of UNU and Maastricht University. The
          Institute explores the social, political and economic factors that drive technological innovation,
          focusing on creation, diffusion and knowledge access. Working with its School of Governance
          (MGSoG), UNU-MERIT covers all aspects of governance in domestic and global organisations,
          from risk assessment to policy analysis, design and evaluation. The missions of the Institute are:
          to research how countries can balance the unequal global playing field of the 21st century,
          without increasing inequality and social exclusion; to analyse knowledge flows at the regional
          and global levels, and their impact on local development, employment and productivity; and to
          train specialists, who combine academic scholarship with leadership, to strengthen democratic
          governance in domestic and international organizations.

UNU World Institute for Development Economics Research (UNU-WIDER), Helsinki, Finland
    48.   UNU-WIDER is a global leader in development economics research. The Institute provides
          independent and interdisciplinary research and policy analysis on issues that affect the living
          conditions of the developing world. UNU-WIDER aims to help resolve pressing concerns related
          to human survival, peace, economic development and social welfare. The Institute's work is
          presently focused on the challenges of transformation, inclusion and sustainability, and the
          cross-cutting topics of Africa, gender, and development finance. The Institute runs a global
          network and provides a forum for knowledge sharing, discussion, and debate between
          researchers and development professionals. It also offers capacity-building and training for
          researchers and decision-makers in economics and social development. UNU-WIDER’s three key
          audiences are researchers, policy-makers in developing countries, and the international
          development community at large.

Associated Programmes in Reykjavik, Iceland
    49.   Four Iceland-based training programmes on Geothermal Energy (GTP), Fisheries (FTP), Land
          Restoration (LRT), and Gender Equality (GEST) also complement the University’s training efforts.
          Financing for these programmes is provided entirely by the Government of Iceland and does not
          transit through UNU accounts.

III. Budget of the United Nations University B2018-2019
            50.    The UNU B2018-2019 budget has been formulated with extreme prudence and represents the
                   lowest estimate based on prevailing information at the time of the release of this document.
            51.    The budget proposal for B2018-2019 amounts to USD 108.5 million. The proposal underlines
                   thematic and strategic prioritisation, improved resource efficiency, and the streamlining of
                   organisational processes.
            52.    The estimate for B2018-2019 represents a 1.7 per cent deviation from the mean budget for the
                   past ten years (Actual B2008-2009 to Initial B2016-2017). This demonstrates the value the
                   international community attributes to UNU, as it has maintained relatively constant levels of
            53.    The following Table 1 shows a summary of the key financial indicators.

                                                       B2018-2019 Budget Table
   (in thousands of USD)                                                                                                            Table 1
                                                                                                   Revised B2016-        Estimated
                                                                                                     2017 over          B2018-2019
                                                Initial           Revised          Estimated
Cost Category                                                                                           Initial         over Initial
                                             B2016-20171        B2016-20172       B2018-2019
                                                                                                   B2016-2017 %        B2016-2017 %

Academic Programme                              22,231             19,274            16,017             -13.3%               -28.0%
Staffing Table Costs                            30,443             28,585            28,615              -6.1%                -6.0%
Other Personnel Costs                           10,905              9,591            10,112             -12.0%                -7.3%
General Expenses                                19,187             18,833            19,449              -1.8%                 1.4%
Total Core Budget                               82,766             76,283           74,193               -7.8%              -10.4%
Specific Projects (SPC-Funded)                  34,807             34,807            34,268               0.0%                -1.5%
GRAND TOTAL                                    117,573            111,090           108,461              -5.5%              -7.8%

Budget Financing (Income)

Income from Endowment Fund                      33,281             32,699            32,431              -1.7%                -2.6%
Cumulative Surplus Carried Forward              12,841             10,060             8,455             -21.7%               -34.2%
Operating Contributions                         33,914             30,233            30,957             -10.9%                -8.7%
Other Income                                     2,730              3,291             2,350              20.5%               -13.9%
Total Core Income                               82,766             76,283           74,193               -7.8%              -10.4%
Specific Project Contributions (SPC)            34,807             34,807            34,268               0.0%                -1.5%
GRAND TOTAL                                    117,573            111,090           108,461              -5.5%                -7.8%

    1   Reflects the initial budget estimates, approved by the Council at its 64th session in December 2015.
    2   Refers to the B2016-2017 budget, initially approved by the Council at its 64th session and subsequent approved revisions.

54.   Of the total B2018-2019 expenditure, an estimated 64.6 per cent (USD 70.1 million) is allocated
      to academic activities, including personnel. The breakdown is as follows:
           (i) Academic Programme (core-funded): USD 16.0 million;
           (ii) Specific Projects (SPC-funded): USD 34.3 million;
           (iii) Staffing Table (academic personnel): USD 15.6 million; and
           (iv) Other Personnel costs (academic personnel): USD 4.2 million.
55.   The UNU budget has seen a growth of 17.6 per cent over ten years (Actual B2008-2009 to Initial
      B2016-2017), with SPCs increasing by 3.3 per cent over the same period, as summarised in Graph
      1. The growth is attributable to the establishment of new institutes, programmes and operating
      units, such as UNU-IIGH (2007), UNU-GCM (2012), UNU-FLORES (2012), UNU-IRADDA (2014),
      and UNU-EGOV (2014).

                                      UNU Budget Over Ten Years
                                                                                            Graph 1

                         UNU Budget Over Ten Years

Expenditure Estimates
       56.     Estimated expenditures are categorised as core-funded or SPC-funded expenditures. Only core
               budget expenditures are approved by the UNU Council. The Rector is authorised to accept and
               utilise additional funds which may be received by the University during B2018-2019 for the work
               programme that has been approved by the UNU Council.
       57.     The B2018-2019 budget is comprised of fifteen budgetary funds. Each of these represents a
               separate accounting entity with self-balancing accounts and relative managerial autonomy for
               the purpose of realising their specific mandates. Table 2 shows this breakdown by budgetary

                                    B2018-2019 Expenditure by Budgetary Fund
(in thousands of USD)                                                                                               Table 2
                                                                                                      Change over
                                       Actual                 Initial           Estimated
    Funds/Programmes                                                                                     Initial
                                     B2014-2015            B2016-2017          B2018-2019
                                                                                                     B2016-2017 %
    UNU Centre3                         22,966                24,024               27,129                  12.9%

             UNU HQ                     13,911                13,119               14,153                    7.9%

             UNU-CPR                     3,670                   4,805              5,977                  24.4%

             UNU-EGOV                     709                    2,065              2,310                  11.9%

             UNU-ViE                     4,676                   4,035              4,689                  16.2%


     1.UNU-BIOLAC                         770                    951                 926                    -2.6%

     2.UNU-CRIS                         1,198                    611               1,886                  208.7%

     3.UNU-CS                           2,513                  4,741               4,744                     0.1%

     4.UNU-EHS                          5,361                  3,955               4,625                   16.9%

     5.UNU-FLORES                       4,258                  3,687               3,838                     4.1%

     6.UNU-GCM                          1,352                  1,679               1,697                     1.1%

     7.UNU-IAS                          22,105                25,254               17,766                 -29.7%

     8.UNU-IIGH                         3,655                  4,518               4,040                  -10.6%

    9.UNU-INRA                          2,587                  3,198               1,231                  -61.5%

    10.UNU-INWEH                        4,231                  3,528               3,596                     1.9%

    11.UNU-IRADDA                          70                  4,533                 984                  -78.3%

    12.UNU-MERIT                        9,330                  7,967               7,969                     0.0%

    13.UNU-WIDER                        16,392                24,264               23,082                   -4.9%
       UNU HQ Bldg                      6,021                  4,663               4,948                     6.1%

       FAP                                 40                CLOSED               CLOSED                       -

3For comparison purposes, the B2014-2015 actuals and B2016-2017 budget of the UNU Office in New York are included under
UNU-CPR, instead of, as previously, under UNU HQ.

Total                 102,849            117,573           108,461                -7.8%

58.   As the last column in Table 2 indicates, more than half of the budgetary funds for B2018-2019
      record an increase over B2016-2017.
59.   The fifteen budgetary funds can be grouped as follows: thirteen institutes, that constitute 70.4
      per cent of the total estimated budget (USD 76.4 million) for B2018-2019; the UNU Centre,
      which includes UNU HQ, UNU-CPR, UNU-EGOV and UNU-ViE constitutes 25.0 per cent of the
      budget (USD 27.1 million); and the UNU headquarters building in Tokyo constitutes 4.6 per cent
      of the total budget amount (USD 4.9 million). See Graph 2.

                                                                          Graph 2

60.   Additionally, the budget is divided into five cost categories: academic programme (core-funded),
      staffing table, other personnel, general expenses, and specific academic projects (SPC-funded).
61.   The cost categories for B2018-2019 are as follows: academic programme (core-funded), 14.8 per
      cent; staffing table costs, 26.4 per cent; other personnel costs, 9.3 per cent; general expenses,
      17.9 per cent; and, the non-core-funded, specific academic projects (SPC-funded), 31.6 per cent.
      See Graph 3.

                                                                         Graph 3

62.     Table 3 shows the detailed breakdown of the B2018-2019 expenditure by budgetary fund and by
        cost category.

                              B2018-2019 Expenditure by Cost Category
      (in thousands of USD)                                                                                                     Table 3

                                            Programme (Core -

                                                                                                          General Expenses

                                                                                                                              Specific Projects
                                                                                      Other Personnel

                                                                Staffing Table




      UNU Centre                    Total
                                  27,129     1,999                  9,989            3,489              5,346                6,306

            UNU HQ                14,153       954                  6,784            1,674              3,322                1,419

            UNU-CPR               5,977        800                  1,563              381              1,123                2,110

            UNU-EGOV              2,310        243                     550             914               293                    310

            UNU-ViE               4,689             2               1,092              520               608                 2,467

      UNU-BIOLAC                   926         610                               -    121                195                             -

      UNU-CRIS                    1,886        836                    294                      -         350                   406

      UNU-CS                      4,744        377                 1,258             1,285              1,824                            -

      UNU-EHS                     4,625        320                 1,387              105                422                 2,391

      UNU-FLORES                  3,838        340                 1,947              640                504                   407

      UNU-GCM                     1,697           93                  747             423                404                       30

      UNU-IAS                     17,766     1,052                    765             239                640                 15,070

      UNU-IIGH                    4,040        657                 1,744              341                944                   354

      UNU-INRA                    1,231        180                    683                 65             198                   105

      UNU-INWEH                   3,596        508                 1,208              869                703                   308

      UNU-IRADDA                   984         230                    478                      -         276                             -

      UNU-MERIT                   7,969        972                 2,956              587               1,597                1,857

      UNU-WIDER                   23,082     7,843                 4,934             1,654              1,617                7,034

      UNU HQ Bldg                 4,948              -                225             294               4,429                            -

      Total Budget               108,461    16,017               28,615              10,112             19,449               34,268

      Distribution (%)            100%       14.8%                 26.4%               9.3%             17.9%                31.6%

      (a)    Academic Programme Costs
63.     Academic programme costs can be broken down into (i) defined academic programmes
        (including degree programme activities) and (ii) programme development.

64.   Programme development covers all activities which do not relate to any particular project but
           contribute to the accomplishment of institutes’ overall objectives.
     65.   The total expenditure for academic programmes in B2018-2019 is estimated at USD 50.3 million.
           This represents a 11.8 per cent decrease compared to the initial B2016-2017 budget.
     66.   Defined academic projects and programme development comprise 96.0 per cent and 4.0 per
           cent respectively of total academic programme costs. This represents a positive reconfiguration
           of the ratio in favour of defined academic projects, compared to the B2016-2017 budget (93.6
           per cent and 6.4 per cent respectively).
     67.   The details of the academic programme costs are as summarised in Table 4.

                                  B2018-2019 Academic Programme Costs
(in thousands of USD)                                                                                                                                Table 4
                                                                                Estimated B2018-2019

                                               Academic Programme Costs
                                                                                    Core             SPC

                                                                                Defined Academic

                                                                                                                  Defined Academic
                        Actual      Initial                                                                                                        B2016-



                        B2014-     B2016-                                                                                                           2017

                         2015        2017                                                                                                             %

 UNU Centre               4,902       5,449     8,305                             1,451                548        6,306                   -         52.4%
   UNU HQ                 1,588       1,892     2,373                               754                200        1,419                   -         25.4%
   UNU-CPR                  668       1,095     2,910                               452                348        2,110                   -        165.8%
   UNU-EGOV                 258         584       553                               243                  -          310                   -          -5.3%
   UNU-ViE                2,388       1,878     2,469                                 2                  -        2,467                   -         31.5%
 UNU-BIOLAC                 450         618       610                               610                  -            -                   -         -1.3%
 UNU-CRIS                     -           -     1,242                               813                 23          406                   -           0.0%
 UNU-CS                      29         278       377                               377                  -            -                   -         35.6%
 UNU-EHS                  3,263       2,030     2,711                               320                  -        2,391                   -         33.5%
 UNU-FLORES               1,072         721       747                               340                  -          407                   -           3.6%
 UNU-GCM                    227         307       123                                83                 10           30                   -        -59.9%
 UNU-IAS                 19,947      23,104    16,122                             1,052                  -       15,070                   -        -30.2%
 UNU-IIGH                 1,202       1,720     1,011                               620                 37          354                   -        -41.2%
 UNU-INRA                 1,268       1,672       285                               180                  -          105                   -        -83.0%
 UNU-INWEH                2,474       1,040       816                               440                 68          308                   -        -21.5%
 UNU-IRADDA                   -       1,500       230                                 -                230            -                   -        -84.7%
 UNU-MERIT                6,171       3,458     2,829                               827                145        1,607                 250        -18.2%
 UNU-WIDER                9,569      15,141    14,877                             7,149                694        7,034                   -         -1.7%
 UNU HQ Bldg                  -           -         -                                 -                  -            -                   -           0.0%
        Total           50,574     57,038     50,285                           14,262              1,755         34,018               250          -11.8%
 Distribution (%)                              100%                            28.4%                3.5%         67.6%               0.5%

(b)   Staffing Table Costs and Other Personnel Costs
     68.     The UNU Staffing Table (Annex V) includes all established posts, which are either core or SPC-
             funded, regardless of the nature of work (academic and non-academic). However, established
             posts that are SPC-funded are budgeted under specific project costs given that these posts are
             project-based. Staffing Table costs comprise salaries of established posts (including common
             staff costs) listed on the Staffing Table for the Professional, National Professional Officer and
             General Service categories.
     69.     UNU is projecting a total of 162 funded posts, of which 151 are core-funded (USD 28.6 million)
             and 11 SPC-funded (USD 3.2 million) budget.

                                B2018-2019 Staffing Table Costs (Core and SPC)
(in thousands of USD)                                                                                   Table 5
                               Initial      B2018-                        Initial     Estimated      Change
                            B2016-2017       2019           Variance   B2016-2017    B2018-2019        over
                             Number of     Number of         No. of      Staffing      Staffing       Initial
                              Funded        Funded           Posts     Table Costs   Table Costs     B2016-
                               Posts         Posts                                                    2017
 UNU Centre                      50             49              -1       10,084         9,989          -0.9%
    UNU HQ                       34             33              -1        6,190         6,784           9.6%
    UNU-CPR                       9              6              -3        2,546         1,563         -38.6%
    UNU-EGOV                      3              3               -         671           550          -18.0%
    UNU-ViE                       4              7               3         677          1,092          61.3%
 UNU-BIOLAC                       -              -               -            -             -           0.0%
 UNU-CRIS                         3              1              -2         530           294          -44.5%
 UNU-CS                           4              5               1       1,110          1,258          13.3%
 UNU-EHS                          7              8               1       1,530          1,387          -9.3%
 UNU-FLORES                       9             10               1       1,781          1,947           9.3%
 UNU-GCM                          2              3               1         403           747           85.4%
 UNU-IAS                          2              6               4         501           765           52.7%
 UNU-IIGH                        13             13               -       1,931          1,744          -9.7%
 UNU-INRA                         4              4               -         746           683           -8.4%
 UNU-INWEH                        6              5              -1       1,355          1,208         -10.8%
 UNU-IRADDA                       7              7               -       1,222           478          -60.9%
 UNU-MERIT                       12             12               -       3,262          2,956          -9.4%
 UNU-WIDER                       27             27               -       5,595          4,934         -11.8%
 UNU HQ Bldg                      1              1               -         393           225          -42.7%
 Total (Core-Funded)            147            151              4        30,443        28,615          -6.0%
 UNU-CPR                                                                      -          115            0.0%
 UNU- ViE                          -             1               1            -          176            0.0%
 UNU-EHS                           2             4               2          45           667        1,382.2%
 UNU-IAS                           5             2              -3        1,733         1,375         -20.7%
 UNU-WIDER                         3             4               1         890           836           -6.1%
 Total (SPC-Funded)              10             11              1        2,668          3,169         18.8%
 GRAND TOTAL                    157            162              5        33,111        31,784          -4.0%

     70.     The detailed UNU Staffing Table provides the framework within which the University can
             develop and execute its human resources strategy for B2018-2019; it is presented in Annexes III
             and IV.

71.   The core-funded posts include: 85 Professional posts, 18 National Professional Officer posts, and
           48 General Service posts. The SPC-funded posts consist of 9 Professional posts, 1 National
           Professional Officer post, and 1 General Service post. In addition, 19 non-funded posts listed on
           the staffing table will be filled only as voluntary contributions or specific project contributions
           are secured to cover salary and related costs.
     72.   Out of a total of 94 Professional posts UNU-wide, 71 posts or 75.5 per cent of all Professional
           posts are academic posts.
     73.   The distribution of Staffing Table costs, as shown in Graph 4, demonstrates a higher percentage
           of expenditure allocated to academic personnel. Given that several senior staff and other staff
           under non-academic contracts also perform academic tasks, the University’s ratio of academic to
           non-academic work is presumably even higher.

                                                                                      Graph 4

     74.   Other personnel costs consist of salaries of short-term contractors engaged under a Personnel
           Service Agreement. The expenditure during B2018-2019 is estimated to be USD 16.9 million,
           reflecting a nominal increase of 1.6 per cent over the initial B2016-2017 budget, as summarised
           in Table 6.

                        B2018-2019 Other Personnel Costs (Core and SPC-Funded)
(in thousands of USD)                                                                                  Table 6
                                                                                                Change over
                                            Actual           Initial                               Initial
 Expenditure                                                                B2018-
                                          B2014-2015       B2016-2017                            2016-2017
                                                                             2019                    %
 Other Personnel Costs (Core-Funded)          6,678          10,905          10,112                -7.3%

 Other Personnel Costs (SPC-Funded)           8,412           5,732           6,799                18.6%

 Total Costs                                 15,090          16,637          16,911                 1.6%

(c)   General Expenses
     75.     General expenses include: (i) travel costs; (ii) contractual services; (iii) maintenance and
             operating costs of UNU Headquarters Building in Tokyo; (iv) general operating expenses, which
             mainly cover communications, maintenance of equipment, supplies, and materials; and (v)
             acquisition of furniture and equipment, including IT equipment.
     76.     The general expenses during B2018-2019 are estimated to be USD 19.4 million, an increase of
             1.4 per cent from the initial B2016-2017 budget as summarised in Table 7. They include indirect
             costs that are incurred for common objectives of UNU, such as the financial management system
             of the University (PeopleSoft ATLAS), human resources services provided by United Nations
             Development Programme (UNDP)/Staff Administrative Service, and audits.

                                         B2018-2019 General Expenses
(in thousands of USD)                                                                               Table 7
                                                                                               Change over
                                                        Actual         Initial    Estimated
 Expenditure                                            B2014-        B2016-       B2018-
                                                         2015          2017         2019
                                                                                                 2017 %
 Travel                                                 2,315          3,020        2,975          -1.5%
 Contractual Services                                   2,387          1,411         967          -31.5%
 Maintenance and Operating Costs of UNU HQ Bld          5,207          3,868        4,332          12.0%
 General Operating Expenses                             7,315          9,411        9,637           2.4%
 Furniture and Equipment                                2,621          1,477        1,538           4.1%
 Total                                                 19,845         19,187       19,449           1.4%

           (d)   Specific Projects (SPC-Funded)
     77.     In addition to the core budget, the B2018-2019 budget shows an estimated USD 34.3 million
             allocated to specific projects funded from SPCs, a decrease of 1.5 per cent compared to the
             initial B2016-2017 budget.
     78.     Given that the B2018-2019 budget was formulated with extreme prudence and represents the
             lowest estimate based on prevailing information at the time of the budget formulation, it is
             expected that additional SPCs will be received during B2018-2019, permitting a higher level of
             expenditure for specific projects.
     79.     SPCs comprise voluntary contributions earmarked for a specific project. This category of
             voluntary contributions supports academic activities over and above planned activities financed
             from the core income. Funds in this category may also be used to meet the costs associated with
             the administration and general operations of an institute or programme.
     80.     Obligations can be incurred and payments made only after SPC funds have been received in UNU
             accounts. If funds for specific projects do not materialise in the course of the budget execution,
             the activities will not be initiated and no expenditure will be incurred.

Income Estimates
    81.   In accordance with the UNU Charter (Article IX), capital costs and recurrent costs of the University are met
          from voluntary contributions, or from the income derived therefrom. The UNU is not financed through
          assessed contributions by Member States but solely from voluntary contributions. UNU does not receive
          any subvention from the regular budget of the United Nations.
    82.   Voluntary contributions are sourced from governments, bilateral and multilateral agencies, foundations,
          and other public and private sector sources. The estimated income in the amount of USD 108.5 million for
          B2018-2019 can be further categorised as core income and specific project contributions.

                                                                                 Graph 5

    83.   Core income represents voluntary contributions which are not earmarked. Core income
          comprises income from the UNU Endowment Fund, operating contributions, other income, and
          cumulative surplus. The estimated core income amounts to USD 74.2 million (68.4 per cent of
          the total estimated income), comprising USD 32.4 million in endowment fund income; USD 31.0
          million in operating contributions; USD 8.5 million from the cumulative surplus which was
          carried forward and USD 2.3 million from other income. Compared to the initial B2016-2017
          budget, estimated core income is expected to decrease by 10.4 per cent.
    84.   SPCs represent voluntary contributions that are earmarked for specific academic projects and
          aligned with the priorities set by the UNU Council. They are primarily intended to support
          academic activities over and above activities financed from core income. Estimated SPCs amount
          to USD 34.3 million (31.6 per cent of the total estimated income).
    85.   Both Graph 5 and Table 8 show the source of the estimated income.

                                               B2018-2019 Income
 (in thousands of USD)                                                                                    Table 8
                                                                               Estimated         Change over
                                             Actual             Initial
            Income Category                                                     B2018-              Initial
                                           B2014-2015         B2016-2017
                                                                                 2019           B2016-2017 %
  Endowment Fund                              32,824            33,281           32,431                -2.6%
  Cumulative Surplus                          10,896            12,841            8,455              -34.2%
  Operating Contributions                     32,509            33,914           30,957                -8.7%
  Other Income                                 3,966             2,730            2,350              -13.9%
  Total Core Funding                          80,195            82,766           74,193              -10.4%
  Specific Project Contributions (SPC)        59,418            34,807           34,268               -1.5%
  Total                                      139,613           117,573          108,461               -7.8%

86.   The estimated income for B2018-2019, composed of core income and specific project
          contributions is summarised in Table 9.

                                               B2018-2019 Income by Fund
  (in thousands of USD)                                                                                                      Table 9
                                                                            Core Income                                        SPC


                                                                                                              Other Income
                                Total Income


                                                  Total Core



   UNU Centre                  27,129            20,823        15,724         1,467         3,632                -            6,306
      UNU HQ                   14,153            12,734        12,031          293           410                 -            1,419
      UNU-CPR                   5,977             3,867         3,693          174              -                -            2,110
      UNU-EGOV                  2,310             2,000             -         1,000         1,000                -             310
      UNU-ViE                   4,689             2,222             -             -         2,222                -            2,467
   UNU-BIOLAC                    926               926           926              -             -                -                -
   UNU-CRIS                     1,886            1,480              -             -         1,480                -             406
   UNU-CS                       4,744            4,744          3,776             -          968                 -                -
   UNU-EHS                      4,625            2,234           234              -         2,000                -            2,391
   UNU-FLORES                   3,838            3,431              -             -         3,431                -             407
   UNU-GCM                      1,697            1,667              -             -         1,667                -              30
   UNU-IAS                     17,766            2,696              -             -         2,696                -           15,070
   UNU-IIGH                     4,040            3,686          3,686             -             -                -             354
   UNU-INRA                     1,231            1,126           850           276              -                -             105
   UNU-INWEH                    3,596            3,288              -          280          3,008                -             308
   UNU-IRADDA                    984               984           434           550              -                -                -
   UNU-MERIT                    7,969            6,112          1,978         1,520         2,614                -            1,857
   UNU-WIDER                   23,082            16,048         4,823         4,102         7,123                -            7,034
   UNU HQ Bldg                  4,948            4,948              -          260          2,338            2,350                -
   Total Budget               108,461            74,193        32,431         8,455         30,957           2,350           34,268

Estimated Core Income
   (a) Income from the UNU Endowment Fund
    87.   Capital contributions mobilised for the UNU Centre, UNU-BIOLAC, UNU-CS, UNU-EHS, UNU-IIGH,
          UNU-INRA, UNU-IRADDA, UNU-MERIT, and UNU-WIDER are invested as a pool under the
          fiduciary responsibility of the Secretary-General of the United Nations. Income derived from the
          investment of the UNU Endowment Fund and distributed to the UNU Centre and each of the
          above institutes is proportionate to the amount of capital contributions invested.

88.    The UNU Council decided at its 46 th session in December 1999 that the annual investment
              income from the UNU Endowment Fund should be limited to 5.00 per cent of the five-year
              average market value of the UNU Endowment Fund. This limit is meant to protect the long-term
              capital value of the UNU Endowment Fund. The 5.00 per cent figure is used by universities in the
              United States of America with similar, medium-sized endowments. An ad-hoc advisory
              committee on the investment of the UNU Endowment Fund, comprising a number of financial
              experts, recommended the 5.00 per cent limit to the UNU Council. To ensure the sustainability
              of the UNU Endowment Fund, the withdrawal limit has been lowered to 4.75 percent of the five-
              year average market value.
       89.    Endowment fund income for B2018-2019 is estimated to be USD 32.4 million, representing a
              slight decrease of 2.6 per cent compared to the initial B2016-2017 budget as summarised in
              Table 10.

                                    B2016-2017 Income from Endowment Fund
(in thousands of USD)                                                                                            Table 10
                                                                                                 Change over Initial
                             Actual                Initial               Estimated
    Funds/Programmes                                                                               B2016-2017
                           B2014-2015            B2016-2017             B2018-2019
    UNU Centre                 14,212               15,240                  15,724                        3.2%

        UNU HQ                 13,231               10,630                  12,031                       13.2%

        UNU-CPR                  981                 4,610                   3,693                      -19.9%

    UNU-BIOLAC                  919                   951                     926                        -2.6%

    UNU-CS                     3,685                3,813                   3,776                        -1.0%

    UNU-EHS                     285                   295                     234                       -20.7%

    UNU-IIGH                   3,151                4,192                   3,686                       -12.1%

    UNU-INRA4                  1,724                1,272                     850                       -33.2%
     from HQ’s EF              1,000                 500                        -                       -100%
     from INRA’s EF             724                  772                      850                        10.1%

    UNU-IRADDA                      -                 582                     434                       -25.4%

    UNU-MERIT                  1,933                2,000                   1,978                        -1.1%

    UNU-WIDER                  4,815                4,936                   4,823                        -2.3%

    UNU HQ Bldg.               2,100                     -                       -                        0.0%

    Total                     32,824               33,281                  32,431                        -2.6%

      (b) Cumulative Surplus Carried Forward
       90.    These funds, resulting, from a surplus of income over expenditure from the previous biennia, are
              mobilised with the approval of the UNU Council to supplement the financing of the budget.
              Given the different funding schemes among institutes/programmes as well as individual project
              timelines, fluctuations are to be expected.

4Endowment fund income in B2014-2015 reflects a transfer of USD 1.0 million from the UNU Centre to UNU-INRA as authorised by
the UNU Council. The transfer from UNU Centre to UNU-INRA in B2016-2017 as approved by the Council amounted to USD 0.5
million. No transfer is foreseen in B2018-2019.

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