Oct 25, 2011 - United States dollar value against the Philippine peso. 60. 55. 50. 45. 40. 35. 2000. 2011. United States dollar value against the Indian rupee.
EXECUTIVE BOARD Special session on WHO reform Provisional agenda item 3
EBSS/2/INF.DOC./2 25 October 2011
Financing of the World Health Organization A.
TRENDS IN BUDGET, INCOME AND EXPENDITURE
Figure 1: Trends in budget, income and expenditure, 1998–2013 (US$ millions)1 5000 4500 4000 3500 3000 2500
Budget
2000
Income
1500
Expenditure
1000 500 0 1998– 1999
2000– 2001
2002– 2003
2004– 2005
2006– 2007
2008– 2009
2010– 2011
2012– 2013
Year
1 Income and expenditure data exclude in-kind contributions. For 2010–2011 and 2012–2013 income and expenditure are projected.
EBSS/2/INF.DOC./2
Figure 2: Trends in assessed and voluntary contributions, 1998–2013 (US$ millions)1 4000 3500 3000 2500 2000
76%
73%
75%
76%
69%
1500
58%
60%
49%
42%
40%
31%
24%
27%
25%
24%
1998– 1999
2000– 2001
2002– 2003
2004– 2005
2006– 2007
2008– 2009
2010– 2011
2012– 2013
51%
1000 500 0
Year Assessed contributions
Voluntary contributions
1
Data exclude in-kind contributions. For 2010–2011 and 2012–2013, assessed contributions and voluntary contributions are projected.
Figure 3: Sources of voluntary contributions, 2010–2011 (projected)
8% Member States
18%
Other United Nations bodies/Global health partnerships
53% 21%
1
Foundations
2
Other3
e.g. United Nations Multi-donor trust funds, GAVI Alliance. e.g. United Nations Foundation, Bill & Melinda Gates Foundation. 3 e.g. European Commission, nongovernmental organizations. 2
2
1
EBSS/2/INF.DOC./2
Figure 4: Distribution of salary and activity costs as a percentage of total expenditure, assessed contributions and voluntary contributions, 2010–20111 % 100
22% 80
55% 74%
60
Activity Salary
40
78% 45%
20
26% 0 Total
1
Assessed contributions
Voluntary contributions
As at 31 August 2011.
3
EBSS/2/INF.DOC./2
B.
TRENDS IN SPECIFIED INCOME
Figure 5: Trends in the proportion of WHO's income that is specified, 2006–2011 (US$ millions) 4500 4000 3500 3000 2500
71%
72%
66.5%
28%
33.5%
29%
2006–2007
2008–2009
2010–2011 (Projected)
2000 1500 1000 500 0
Year Specified Assessed contributions + flexible voluntary contributions
C.
PREDICTABLE INCOME AS A PROPORTION OF THE PROGRAMME BUDGET
Figure 6: Predictable income at the start of the biennium 2010–2011 (US$ millions)
21% Assessed contributions Other predictable income
55% 24%
1
Funding gap in predictable income
1 Other predictable income includes framework agreements, multi-year agreements and flexible funds provided to the core voluntary contributions account. It excludes funds carried forward.
4
EBSS/2/INF.DOC./2
D.
TRENDS IN FINANCING OF MANAGEMENT AND ADMINISTRATION
Costs of administration are currently estimated to constitute approximately 15% of overall programme budget expenditure. The majority of administrative costs are financed using assessed contributions and funds generated through a programme support cost levy on voluntary contributions. In 2010 a post occupancy charge on gross salary costs was introduced as an additional levy, to complement the programme support cost levy. Over the last ten years, income from programme support costs has been steadily declining as a percentage of voluntary contributions as illustrated by Figure 7 below. This has resulted from: (i) United Nations system-wide common agreements for lower rates of programme support costs; (ii) the requirement by some donors of a reduction in the standard 13% rate of programme support costs.
Figure 7: Programme support costs income as a percentage of voluntary contributions, 2000–20111 % 12 10.8% 9.9%
10
8.5% 8
8.1%
7.7% 6.7%
6 4 2 0 2000– 2001
2002– 2003
2004– 2005
2006– 2007
2008– 2009
2010– 2011
Year
1
Projections for 2010–2011.
5
EBSS/2/INF.DOC./2
Figure 8: Assessed contributions, programme support costs and post occupancy charges as proportions of funding for administration, 2010–2011 (projected)
19% Assessed contributions Programme support costs 23%
6
58% Post occupancy charges
EBSS/2/INF.DOC./2
E.
TRENDS IN EXCHANGE RATES AND THEIR IMPACT ON PURCHASING POWER
The base currency for WHO is the United States dollar. A large proportion of income and expenditure is in other currencies.
Figure 9: Currency mix, total income and expenditure
Income currency mix 2010–2011 Currency
14%
Other
10%
Euro
United States dollar
76% 0 %
Expenditure currency mix 2010–2011 Currency
12.6%
Euro
United States dollar
21.4%
33.5%
Other
32.5%
Swiss franc
0 %
7
EBSS/2/INF.DOC./2
Over the last decade there has been a significant decline in WHO’s purchasing power as currencies of income have devalued against the Swiss franc – the currency in which the Organization has the biggest net expenditure exposure.
Figure 10: Exchange rate movements since 2000 in major offices United States dollar value against the Swiss franc
United States dollar value against the euro
2
1.2
1.8
1.1
1.6
1
1.4 0.9
1.2 1
0.8
0.8
0.7
0.6
0.6 2000
2011
2000
United States dollar value against the Philippine peso
2011
United States dollar value against the Indian rupee
United States dollar value against the Egyptian pound 6.5
55 60
6 50
55
5.5 45
50 45
40
40
35
5 4.5 4 3.5 3
30
35 2000
2011
2000
2011
2000
The United States dollar has weakened against all major cost currencies for WHO operations, resulting in higher United States dollar costs. The only exception is the Egyptian pound, against which the United States dollar has strengthened over time.
