2003/22
UNDP biennial support budget, 2004-2005

The Executive Board

1. Takes note of the report of the Administrator and the overall objectives and strategy on the support budget estimates and related estimates for the biennium 2004-2005, as contained in document DP/2003/28, and which, combined with the programming arrangements, 2004-2007, is an integral part of the second multi-year funding framework (MYFF), 2004-2007, as well as the report on additional security measures, as contained in DP/2003/CRP.20;

2. Approves gross appropriations in the amount of $645 478 400 for the purposes indicated in the table below, and resolves that the income estimates of $70 310 000 should be used to offset the gross appropriations, resulting in estimated net appropriations of $575 168 400;

3. Endorses the proposals of the Administrator in DP/2003/CRP.20 to grant him exceptional authority during 2004-2005 to access up to a maximum of $11.5 million as additional funding for security measures;

4. Endorses the approach to establish a base structure concept funded by the regular support budget for both headquarters and country offices, with the aim of progressively increasing the proportionate share for augmentation over the base structure between regular and other resources, and requests that UNDP report back on the application of this approach in the context of the next biennial support budget proposal for 2006-2007;

5. Recognizes that the proposed increase in cost recovery rates is a step in the right direction towards ensuring that cost recovery income bears the support costs associated with all other-resources-funded activities, and, as a provisional arrangement, endorses the approach for cost recovery as contained in paragraphs 130 to 134 of document DP/2003/28;

6. Requests that the Administrator submit a report on UNDP cost recovery policy to the Executive Board at its second regular session in September 2004, including the methodology in calculating the rates as well as an update on the adequacy of the provisional rates, options for transparent reporting on income from cost recovery, including the possibility of including this income in calculating the next biennial support budget, as well as a comparison with the practice of the other funds and programmes within the United Nations Development Group (UNDG);

7. Takes note of the concerns expressed by The Administrative Committee on Administrative and Budgetary Questions (ACABQ) on the tendency for upward reclassifications (DP/2003/29) approves the Administrator's proposals for reclassifications as contained in paragraph 49 to 55 of document DP/2003/28, noting that most of the reclassifications are the consequence of a one-time change resulting from the expanded responsibilities of UNDP, and requests UNDP to exercise the utmost restraint in elaborating future proposals for upward reclassifications;

8. Approves the proposals by the Administrator on government contributions towards local office costs as contained in paragraph 69;

9. Recognizes the need to reach an understanding on the distinction between programme and overhead costs, as contained in paragraphs 44 to 46 of document DP/2003/28, and requests that the Administrator consult during 2004 with the ACABQ, the Executive Board as well as the other UNDG members in order to address these issues prior to the submission of the next biennial support budget, 2006-2007;

10. Urges all countries in a position to do so to increase core funding to UNDP to enable the organization to implement the MYFF;

11. Recalls decision 2002/18 on the programming arrangements and requests the Administrator to consult with the Executive Board should the level of regular resources available for programming fall below $450 million;

12. Authorizes the Administrator to redeploy resources between appropriations lines to a maximum of 5 per cent of the appropriation line to which the resources are redeployed.

2004-2005 biennial support budget
(thousands of United States dollars)

Programme support  
Country office
297 649.5
Headquarters
75 294.3
Subtotal

372 943.8
Management and administration

133 366.8
Support to the operational activities of the United Nations

 
Country offices
104 579.5
United Nations Development Group Office
3 153.2
Inter Agency Procurement Services Office
956.1
United Nations Volunteers
30 479.0
Subtotal

139 167.8
Total gross appropriations
645 478.4
Less Estimated income
70 310.0
Estimated net appropriations
575 168.4

12 September 2003