Review of the UNFPA policy on indirect cost recovery
      The Executive Board

1.     Recalls decision 2005/12 on the recovery of indirect costs for co-financing;

2.    Takes note of the present report (DP/FPA/2007/9) and of the status of implementation of the new UNFPA cost-recovery policy;

3.  Reiterates that regular resources, because of their untied nature, are the bedrock of contributions to UNFPA, and that regular resources should not subsidize the support costs of projects and programmes funded by other resources;

4.  Welcomes the progress made within the United Nations Development Group (UNDG) on harmonizing cost-recovery policies and encourages UNFPA to continue its active involvement in the UNDG working groups on this issue;

5.   Urges the Executive Director of UNFPA to intensify consultations with the UNDG in order to reach a common agreement on what constitutes direct costs;

6.  Further encourages UNFPA to consult with UNDP and UNICEF in order to harmonize cost-recovery principles for programme country contributions;

7.  Takes note of the transparency and simplicity of the new cost-recovery policy, and reaffirms its endorsement of the new policy;

8.  Encourages UNFPA to present proposals to the Executive Board, within the biennial support budget, 2008-2009, on how indirect cost recovery can be used to finance the management and administrative functions that support programme implementation;

Requests UNFPA to provide to the Executive Board, at its second regular session 2009, an update on the UNFPA policy on indirect cost recovery.

15 June 2007