98/22.        UNFPA Multi-Bilateral Trust Fund arrangements 


The Executive Board

1.         Welcomes the report on the review of multi-bilateral trust ­fund arrangements prepared in response to Executive Board decision 97/26 (DP/FPA/1998/I1);

2.         Reaffirms the principle of additionality and complementarity of multi-bilateral funding on the understanding that it will not impinge on the general resources of the Fund;

3.         Endorses the principle of full cost-recovery for multi-bila­teral assistance based on charges for managerial and support services and administrative and operational support;

4.        Also endorses the establishment of a managerial and sup­port services charge to be levied at a rate of 5 per cent on all multi-bilateral activities, as set out in document DP/FPA/1998/11;

5.         Accepts, as an interim measure, the proposed increase in administrative and operational support costs from the pre­sent rate of 5 per cent to the proposed rate of 7.5 per cent;

6.         Requests the Executive Director to develop a methodology for full cost identification and recovery;

7.         Also requests the Executive Director to quantify the level of charges for administrative and operational support, as recommended by the Advisory Committee on Administrative and Budgetary Operations in its report contained in document DP/1998/37-DP/FPA/1998/14, and to report thereon to the Executive Board with a view to adopting a final decision on administrative and operational support costs at its third regular session 1999;

8.         Decides that the new cost recovery arrangements shall be effective from 1 January 1999 and shall apply to new agree­ments as of that date.


22 September 1998