update on unrwa’s finances advisory commission …...1) gf financial situation until the end of...

Update on UNRWA’s financesAdvisory Commission

November 2012

www.unrwa.org

Contents

1) 2012 Financial Status

2) 2013 Budgets

3) Activity Based Costing Update

Slide 2

Key Messages

1) GF Financial situation until the end of 2012• Close coordination with donors on payment schedules• Close supervision of spending

2) Austere 2013 Budgets• New budget panel and extensive reviews• Critical Objective – no reduction in services

3) “One Budget” presented• GF, projects and Emergency Appeals

4) Activity Based Costing• Progress and finalized in 2013.

5) 2013 focus• Budget Panel quarterly reviews – all portals• Procedures for Project Mgmt• Management of labour costs• Inclusive Project and EA Reporting

Slide 3

Mid Nov 2012 GF Cash Forecast

Slide 4

Actual

Jan

Actual

Feb

Actual

Mar

Actual

Apr

Actual

May

Actual

Jun

Actual

Jul

Actual

Aug

Actual

Sep

Actual

Oct

F/C

Nov

F/C

DecTotal

B/F Balance 32.9 45.4 29.9 101.2 71.4 37.8 85.0 47.4 63.5 31.2 10.0 13.6

Income 80.7 29.5 104.5 26.2 33.5 83.6 6.4 62.1 11.7 30.5 46.4 43.1 558.2

(Outflow) (68.2) (45.0) (33.2) (56.0) (67.1) (36.4) (44.0) (46.0) (44.0) (51.7) (42.8) (47.0) (581.4)

Balance 45.4 29.9 101.2 71.4 37.8 85.0 47.4 63.5 31.2 10.0 13.6 *9.7

Amount In $m

*Predicated upon receiving in December 2012, from UK £10m or USD16m, from 2013 advance.

GF Cash Position 2012

Slide 5

Budget Line items $m $m

General Fund Cash Budget Position to 31/12/2012 (97.5)

a) Increase in Donor Income 30.0

b) Derivative Gains 14.0

c) SSNP over budgeted 12.0

d) Deferred ERP Capital Expenditure 5.0

e) Mid Year Review - Non Spend

(i) Deferred Capital Expenditure 2.0

(ii) Fx (ILS) Savings on CAF 4.0

(iii) Training /Travel and Consultancy 1.5

(iv) Utilities/Inventories/Others 2.1

(v) Deferred or non appointment of Staff(including through Class formation exercise) 8.0 17.6

f) Other (2.1)

End of October (21.0)

Mid November - Additional Income/Cash 30.7

E (EOY) Forecast at 31/12/2012 *9.7

Note : Only able to pay December creditors and finish year in cash surplus due to UK£10m or USD16m advance from 2013.

Austerity Measures 2012

• Due to challenging financial circumstances, in September, new austeritymeasures put in place, till further notice, comprising:

• Cease all business class travel,

• Cease all international travel unless prior approval- DCG/CoS,

• Only essential inter-field travel, prior approval - Field Directors/CoS,

• Cease IT/Capital/Consultancy spend, new contracts – DCGapproval,

• Cease all “In-Person” interviews for international positions– DHRapproval,

• All workshops at UNRWA facilities unless DCG approval, and

• General - No UNRWA calendars, essential attendance only atAdcom/MTMs etc.

Slide 6

Explanation on Funding Portals - Definitions

GF Projects EA – Gaza &WB; SHRP & NBC

Definition:

Support “core” activities that require recurrent resources.

Typical Intervention:

Provision of health, education, and relief and social services as well as support services that enable UNRWA to operate.

Source of Funding:

93% voluntary contributions, 6% UNNY – Int. Staff, 1% Others

Definition:

For specific and time bound activities, with a view to improve services and add to Capital Stock (schools, clinics, shelters etc)without increasing recurrent costs.


Building of facilities and reform related items that are supposed to be integrated in the medium term.

Source of Funding:

Earmarked contributions.

Definition:

Responding to emergency conditions; i.e. created by external factors and expected to be provided as long as these external conditions prevail.


JCP, emergency education, additional relief related to the external factors

Source of Funding:

Earmarked and un-earmarked contributions

Slide 7

Development of 2013 Budgets

1) Templates based on expenditures Jan-Sept 2012• Operational plans accompanied budget requests• On-going and proposed projects submitted at the same

time• Emergency Appeal

2) Two rounds of budget hearings (DCG, DFIN, DERCD, DHR, CoS)• All budgets shared with all budget holders• Panel recommendations to ACRA

3) ACRA Recommendation to CG• Further review of consultancy, training and portion of

staffing budget lines• Risk register presented to CG• Quarterly reviews of all budgets; monthly for Syria

4) Austere Budget• $0.0m salary reserve/risks to budget

Slide 8

GF Budgets 2012 – 2013 Comparison

Slide 9

Amount In $m

Budget Line items2013

Budget Rec

Donor income 495.3

Others 49.4

Total Income (A) 544.7

Expense - Budget

Field Offices 589.3

HQ Departments 42.9

Reserves 17.2

Add 60% provision of 2013 Budgeted Risks of $12.7m 7.6

Total Expense (B) 657.0

Operational Expense Deficit (A-B) (112.3)

Include Capital (C) (38.2)

Exclude Non-cash Expense (D) (Provisions and Depreciation) 81.7

Total Cash Deficit (A-B+C+D) (68.9)

UNRWA Funding Portals 2013 (“one budget”)

Slide 10

Funding Portals 2013 Budget

$m %

General Fund 657.1 58%

In Kind 1.9 0%

Emergency Appeal s(WB & Gaza) 300.1 27%

Projects * 103.2 9%

NBC 68.8 6%

Syria ** 0.0 0%

Total 1,131.1 100%

Amount In $m

•Projects Budget 2013 still being developed

* * New Syria 2013 Appeal is imminent

GF

58%

IK

0%

EA

27%

Prj

9%

NBC

6%

Projects & NBC – 2013 Budget

Projects & NBC

NBC Reconstruction 54.0

Gaza Reconstruction & Construction of Schools 50.7

Camp Improvement Gaza (Deir el Balah Camp) 22.0

SSNP Food Aid 20.3

NBC Restoring Dignity Appeal 14.7

Others 8.0

Support to Human Rights in Gaza 2.3

Total 172.0

Slide 11

Amount In $m

Activity Based Costing

• ABC defines all activities (services) provided by the Agency(internal and external services) in a harmonized structurewhich enables the Agency to:

• Ensure comparability/benchmarking of specificactivities/activity groups across the Agency.

• Be more transparent on total costs of each activity,considering staff costs, other direct costs and indirectcosts on all Agency levels.

• Establish a fair, realistic and transparent methodologyto allocate indirect costs.

Slide 12

Next Steps

• Finalize ABC, enhanced Reporting Functionality, improveallocators and K.P.Is (April 2013)

• Preparation for the year end 2012 run cycle based onactual costs

• Comparison with 2011 actual costs

• Consultation with the Field Offices and HQ Departments onthe Activities and allocation of FTEs

• Develop further KPI’s in agreement with all stakeholders

• Conclude all reports and agree on the frequency anddistribution list for such reports

• Continue using ABC reports as an integral part of thedecision making process of the Agency

Slide 13

Questions

Slide 14adcom – November 2012

Appendices

Slide 15

UNRWA Funding Portals 2011 - 2013 (One Page, one slide)

Slide 16

2011 2012 2013

Funding Portals 2011 Actual 2012 Forecast 2013 Budget

$m % $m % $m %

General Fund 607.9 59% 641.0 59% 657.1 58%

Restricted Fund 40.5 4% 24.6 2% 0.0 0%

In Kind 9.3 1% 3.0 0% 1.9 0%

Emergency Appeal 217.1 21% 159.6 15% 300.1 27%

Projects * 103 10% 145.2 13% 103.2 9%

NBC 44.2 4% 56.7 5% 68.8 6%

SHRP 0.0 0% 53.8 5% 0.0 0%

Total 1,022.0 100% 1,083.9 100% 1,131.1 100%

60%

4%

1%

21%

10%

4%

59%

2%0%

15%

14%

5%5%

58%

0%0%

27%

9%

6%

$M

* Projects Budget 2013 still to be developed

2013 Budget GF RF IK EA Prj NBC SHRP Total %

Education 387.7 0.0 0.5 59.8 43.4 0.2 0.0. 491.6 43%

Health 113.0 0.0 1.3 8.8 11.4 4.1 0.0 138.6 12%

ICID 13.2 0.0 0.0 2.9 22.0 40.6 0.0 78.7 7%

Relief 40.7 0.0 0.1 146.7 25.4 8.3 0.0 221.1 20%

Support 102.5 0.0 0.0 81.9 1.0 15.6 0.0 201.0 18%

Total 657.1 0.0 1.9 300.1 103.2 68.8 0.0 1,131.0 100%

UNRWA By Programme (2011 – 2013)

Slide 17

2011 Actual GF RF IK EA Prj NBC SHRP Total %

Education 357.2 0.3 1.3 15.4 39.7 0.2 0.0 414.1 41%

Health 101.8 0.1 0.1 18.1 10.2 3.7 0.0 134.0 13%

ICID 12.2 0.2 0.2 3.8 11.0 23.0 0.0 50.4 5%

Relief 40.0 33.3 6.0 90.4 36.6 9.6 0.0 215.9 21%

Support 96.7 6.6 1.7 89.4 5.5 7.7 0.0 207.6 20%

Total 607.9 40.5 9.3 217.1 103.0 44.2 0.0 1,022.0 100%

2012 Forecast GF RF IK EA Prj NBC SHRP* Total %

Education 381.1 1.0 0.5 11.6 67.4 0.1 5.2 466.9 43%

Health 111.1 1.1 1.6 12.2 6.0 5.1 3.9 141.0 13%

ICID 13.3 0.0 0.0 7.3 5.1 33.8 0.0 59.5 6%

Relief 39.8 15.9 0.8 82.2 63.6 9.3 42.9 254.5 23%

Support 95.7 6.6 0.1 46.3 3.1 8.4 1.8 162.0 15%

Total 641.0 24.6 3.0 159.6 145.2 56.7 53.8 1,083.9 100%

* SHRP = Budget Appeal

$M

GF Budget – 2012 – 2013 Comparison

Slide 18

Amount In $m

2012 2013

Budget EOYBudget Hearing

SubmissionBudget Rec

Donor income 496.2 525.9 485.9 495.3

United Nations - RB 28.8 23.8 28.8 28.8

Programme Support Cost Recovery 20.0 21.5 20.0 20.0

Interest and Other Income 3.0 1.1 0.6 0.6

Total Income 548.0 572.3 535.3 544.7

Expense

Field Offices

Gaza 226.6 236.2 226.7 220.6

Jordan 119.8 125.4 136.3 134.6

Lebanon 80.0 81.6 81.6 80.8

Syria 55.2 53.7 56.2 50.9

West Bank 106.7 104.2 106.4 102.5

Total Field Offices 588.3 601.2 607.2 589.3

HQ Departments

Education 2.4 2.5 2.4 2.3

Health 0.8 0.8 0.7 0.7

Relief and Social Services 1.2 1.2 1.6 1.1

Infrastructure and Camp Improvement 1.8 1.8 2.0 1.6

Administrative Services 11.6 11.2 11.7 10.9

Executive Office (2013 includes Agency wide consultancy) 5.5 5.7 5.5 7.3

External Relations and Communications 4.8 4.8 4.8 4.6

Finance 3.9 4.0 3.7 3.4

UN Support 0.0 0.0 0.4 0.4

Human Resources (2013 includes Agency wide Training) 4.2 4.2 4.2 5.2

Enterprise Resource Planning 1.0 1.0 0.8 0.3

Internal Oversight Services 3.1 3.1 3.2 2.8

Dispute Tribunal 1.4 0.8 1.0 0.9

Legal Affairs 1.4 1.4 1.4 1.4

Total HQ Departments 43.2 42.4 43.4 42.9

GF Budget – 2012 – 2013 Comparison

Slide 19

Amt in $m2012 2013

Budget EOYBudget Hearing

SubmissionBudget Rec

Reserves & Adjustments

Salary reserve 8.9 0.0 0.0 0.0

DAS - Legal Officer Staff Assistance (P-4) 0.0 0.0 0.2 0.2

RSS Reserve 27.9 0.4 7.0 7.0

GMIP Syria 0.0 0.0 1.4 1.4

Annual Leave Reserve 2.0 2.0 2.0 2.0

HQ Reserve and Provision for Doubtful Debts 3.5 0.0 6.7 6.7

Total Reserves 42.3 2.4 17.2 17.2

Finance Derivatives & Other adjustments 0.0 -16.4 0.0 0.0

Total Expense 673.8 629.5 667.8 649.5

Total Operational Expense Deficit -125.8 -57.2 -132.5 -104.8

Add Capital and Other Cash Outflow Items

Equipment and other capital items 2.7 3.7 3.4 1.8

ERP 13.0 5.3 18.0 12.4

JFO - Cash payout in Jan 2013 for Sep 2012 – Dec 2012 0.0 0.0 2.1 2.1

Retirement Benefits - EVR 6.6 7.5 6.6 6.6

Severance – Cash Payments (1) 13.1 13.1 13.1 15.3

Total Capital and Others(C) 35.4 29.6 43.2 38.2

Less Non-Cash Items

Severance Provision 44.9 44.9 53.9 53.9

Annual Leave 2.0 2.0 2.0 2.0

Depreciation (3) 21.4 21.4 20.1 20.1

Other Non Cash items (2) -4.6 -2.8 5.6 5.6

Total non-cash Expense (D) 63.7 65.6 81.7 81.7

Interim Cash Deficit (A-B+C+D) – (4) -97.5 -21.3 -94.1 -61.3

Add 60% provision of 2013 Budgeted Risks of $12.7m 7.6

Total Cash Deficit including Budget Risks -97.5 -21.3 -94.1 -68.9

Assumptions:

1. Other non-cash items is movement in provisions

2. Depreciation – Draft - to be finalized 3. The cash deficit reflected above is under the assumption that no income in 2012 is received as an advance.

4. $12.7m comprises of hospitalization in LFO/JFO, planned headcount and others

GF 2012 – 2013 Comparison *

Slide 20

Amount In $m

2012E(EOY)

2013Draft Diff.

Labour 489.1 511.6 Total “One-Offs” $25.4m- comprising; a) step increase-$8.5m b) Labour Costs- $4.7m (Indemnity, WB GMIP, re-structure), c) SFO GMIP- $1.4m d) JFO salary Increase (2012)- $6m e) Miscellenous provisions-$4.8m

Therefore, effectively Labour Costs decrease from $444.2m to $418m reflecting an austere Budget. Also, no general salary reserve provided.

CAF (19.7) (12.5)

Severance (44.9) (54.9)

Adj. Labour 424.5 444.2 19.7

Non-Labour 128.6 116.2 Non-Labour: an effective reduction of around ($107m -$96m) -$11.2m or 10% (training, travel, consultancy and other).

Depreciation (21.4) (20.1)Adj. Non-Labour 107.2 96.0 (11.2)

Total Adjustment 531.7 540.3 8.6

a. Please note initial draft 2013 GF Budget (mid Oct. 2012) produced a cash deficit of -$94m which is now reduced to generate a cash deficit of -$69m.

b. Also, potential spend of $5m not included in the 2013 Budget i.e. in 'Risk Register'

* Excludes International staff Expense

-

200.0

400.0

600.0

800.0Support

RSS

ICID

Health

Education

Bgt Act

2011Bgt F/C

2012

Bgt 2013

General Fund (2011 – 2013)

Slide 21

Amounts In $M.

Activities 2013

Budget Actual Budget F/C Budget

Education 320.8 357.2 381.1 381.1 387.7

Health 102.8 101.8 111.1 111.1 113.0

ICID 11.4 12.2 13.3 13.3 13.2

Relief 33.5 40.0 39.8 39.8 40.7

Support 105.7 96.7 100.7 95.7 102.5

Grand Total 574.3 607.9 646 641 657.1

2011 Actuals 2012 F/C

General Fund – 2012 Forecast

US$ Millions

GF Forecast

Education

- No. of schools: 700; No. of students: 485,501; Average Class Size: 35.6 381.1

- No. of staff: 19,217; and Vocational & Technical Training Centres: 10

Health

- No. of Clinics: 139 and one Qalqilia Hospital in West Bank 111.1

- No. of staff: 3,525 with 504 doctors, 1,127 nurses, 122 dental surgeons and 633 paramedical staff

attending 10.66 million medical consultations in 2011 (104/doctor)

Relief and Social Services 39.8

- No. of SHCs: 291,757

- No. of staff: 699

Infrastructure & Camp Improvement & Planned Infrastructure Activities: Camps = 58 13.3

Support Departments 95.7

(Includes Int. Staff $22m, area staff costs $45m, supplies $5m, admin. Support $5m,

utilities/maintenance $2m, Depreciation $4m & other misc. services $13m)

Total 641.0

Slide 22

General Fund

Slide 23

• Education Programme: Provide Palestine refugee children andyouth with access to quality education and training through 700schools, ten technical vocational colleges, and two teachertraining institutes across five fields of operation.

• Health Programme: Provide primary health care, and helprefugees access secondary and tertiary care services.

• Relief and Social Services: Provide a social safety-net for Palestinerefugees: assistance that includes basic food support, cashsubsidies, and an additional supplement to family income for thepoorest of the poor – the ‘abject poor’. Also provide individualneed-based cash grants on a case-by-case basis for householdbasic or family emergencies.

• Infrastructure and Camp Improvement: Maintain UNRWA facilitiessuch as school and health facilities, environmental infrastructureincluding water and sewerage systems, improvement in refugeecamps and shelter improvement.

Budget by Programme– Projects (2011 – 2013)

Slide 24

Amount In $m

Activities 2013


Education 73.9 39.7 105.7 67.4 43.4

Health 15.2 10.2 17.0 6.0 11.4

ICID 22.9 11.0 17.9 5.1 22.0

Relief 51.7 36.6 98.3 63.6 25.4

Support 11.8 5.5 12.3 3.1 1.0

Grand Total 175.5 103.0 251.2 145.2 103.2


Emergency Appeal

Slide 25

• Temporary Job Creation Programme: Aims to relieve economic hardship by providing temporary

employment opportunities. These opportunities alleviate poverty and restore dignity while contributing to

community development and protection.

• Emergency Food Assistance: Deliver food aid to families unable to meet their food needs, as well as

improve the food security through targeted livelihood support. Includes food distribution to abject poor

and absolute poor refugees not included amongst the SSNP list of beneficiaries funded by GF/Projects.

• Emergency Health: Ensure access to essential Health Services including support to refugee coping

mechanisms by addressing the psychosocial needs, with a particular focus on children and youth. Includes

emergency support staff to cope with increased demand in WB; 6 mobile clinics in WB; medical supplies to

repair/replace medical equipment in WB & Gaza; Child Health including mental health in Gaza; and

Hospital Care in WB & Gaza.

• Emergency Education: Focus on developing a participatory, equitable and conducive learning environment

focusing on school supplies for students; remedial programmes including grade-appropriate learning

support, teaching guides etc.; and improved discipline with a special focus on boys’ schools with acute

behavioural problems.

• Others: Include Protection which includes identification of protection needs, prioritizing identified

vulnerable groups; Operation Support Officers; Temporary Shelter (Gaza Strip only); and coordination &

management.

Bgt

2013

Emergency Appeal – Gaza (2011 – 2013)

Slide 26

Amounts In $M.

Activities 2013


Food Assistance 126 53 75 54 78

Cash Assistance 62 0 47 - 62

Job Creation Programme 57 31 57 9 60

Shelter Repair 19 23 10 31 7

Others (PSC, Co-ordination, Manag., OSO,…etc) 36 47 36 26 37

Grand Total 300 154 225 120 244


Emergency Appeal – West Bank (2011 -2013)

Slide 27

Amounts In $M.

Activities 2013


Job Creation Programme 49 40 44 22 46

Food Assistance 4 4 7 2 0

Cash Assistance 8 1 9 0 0

Health 6 4 6 4 3

Others (PSC, Co-ordination, Manag., OSO,…etc) 12 14 9 11 7

Grand Total 79 63 75 39 56


EA in Gaza & WB – 2012 Forecast

US$ Millions

EA - Gaza & WB Forecast

Job Creation Programme 31.4

Food Assistance (food commodities & other distributed costs) 55.7

Shelter repair and reconstruction of demolished houses 31.7

Emergency capacity (emergency programme & admin sup.etc) 9.8

Emergency support to CBOs (Community Based Orgs.) 1.8

Emergency Health (medicines and mobile clinics etc) 4.7

Environmental health (water and sanitation etc) 1.3

Community mental health 3.5

Emergency Education (school feeding, summer games etc) 1.7

Operation support officers (OSOs) 3.7

Protection 1.3

Programme support costs 13.4

Total 160.0

NBC (2011 – 2013)

Slide 29

Amount In $m

Activities2011 Budget 2011 Expenditure 2012 Budget 2012 Forecast 2013 Forecast

Capital Construction - Package 1 to 8 68.6 13.4 56.6 22.5 28.3

Shelter Management 10.4 7.3 7.0 7.3 6.5

NMU Management Cost 10.4 5.1 8.3 4.7 5.1

Health Pogramme 5.4 3.7 3.7 5.0 4.1

Infrastructure 4.1 0.9 3.4 2.4 3.0

Household Furniture 4.0 1.6 3.1 1.3 4.7

Others 14.9 12.2 19.2 13.5 17.1

Grand Total 117.7 44.2 101.3 56.7 68.8

Syria Humanitarian Response Plan

Slide 30

The Appeal for $53.8 million for the period September 2012 to March

2013 with $44 million for Syria; $1.5 million for Jordan and $8.3 million

for Lebanon comprises of the following Activities:

Cash Assistance 12.6

Non-Food Items (NFI) 9.9

Food Assistance 17.6

Rental Subsidies 2.5

Emergency Environmental health/water 0.9

Emergency Health 2.9

Emergency Shelter Rehabilitation 0.4

Emergency Education 5.2

Safety and Security 1.4

Capacity and Management Support 0.4

Total 53.8

Amount In $m

In-Kind Donations

Slide 31

Amount In $m

Services 2011 2012

Budget Actual Budget Forecast Budget

In-Kind 14.2 9.3 4.2 3.0 1.9

In-kind donations are assets transferred to UNRWA

without any charge and include:

a. Inventory Items e.g. basic commodities, medicines

etc.

b.Property, Plant and Equipment e.g. building

equipment, vehicle etc.

c. Non-inventory items e.g. computers.

Definition, Objectives and Benefits

• Through development of a fair and transparent costallocation model, it provides the total costs of the front line(core) activities.

• Combined with agreed KPIs for UNRWA’s services, ABCcan provide a comprehensive basis for better decisionmaking (reduce costs and/or increase efficiency andeffectiveness) at all management levels.

Slide 32

Project Approach, Scope & Methodology - Major Activity Groups

Based on their functional character, activitieshave been grouped in three major categories:

� Core Activities reflect the agency´s front-lineactivities.

� The core activities are the major focus of theABC exercise, so they have the highest level ofdetail and bear full absorption costs.

� Internal Support Services have the character ofreal services with a potential service provider –customer – relation (at least partially).

� The management focus for these services isincreasing efficiency by giving quality levels ofservices.

� Executive Management & Governancecomprises all corporate, management andmanagement support functions, which have amore superior, political and tactical character(no real or potential service provider –customer – relation), e.g. Com-Gen Office,DIOS, Dispute Tribunal, etc.

Core Activities

Internal Support Services

Executive Management & Governance

2. Project Approach: All relevant activities have been defined in workshops with HQ and the fields and documented in the UNRWA Activities Dictionary

Slide 34

Core Activities

Education Health

Infrastructure & Camp

Improvement

Relief & Social

Services

Microfinance

*

UNRWA Activities Dictionary (major activity groups)

Internal Support Services

HR IT Finance

Procurement & Logistics

Legal AffairsAdministrativ

e Services

Executive Management & Governance

Emergency*

*As not part of GF, the activities have been defined, but are not used in the ABC costing model

Security

ComGen´s

Office

ComGen´sOffice / Front

Office…

Programme /

Support

Programme / Project Support

2. Project Approach: General value streams in ABC cost allocation model

HQ

Field AField B

Field n

1Allocation of HQ overhead costs to

the fields

2Allocation Field Office Management

to core activities and internal support services

3Allocation internal support services

to core activities 1

1

1

2

2

3

4Allocation core activities to core

activities (only ICI)

4

Slide 35

3. Results: Total direct costs per Field & HQ Departments

• Based on 2011 data, the total GF actual of $ 572M can bebroken down to the fields / HQ as follows. This figures match100% with RAMCO data.

Slide 36

3. Results: Agency-wide benchmarking - Health Total programme costs

• This graphic shows the direct (without indirect cost allocations)and total costs (including indirect cost allocations) for theHealth programme across the agency.

$-

$5.000.000,00

$10.000.000,00

$15.000.000,00

$20.000.000,00

$25.000.000,00

$30.000.000,00

$35.000.000,00

HQ GFO LFO SFO JFO WBFO Average

Health direct costs total Health total costs

Slide 37

3. Results: Agency-wide benchmarking - Health, Activity Group Primary Care

Slide 38

• GFO shows the highest total costs for Primary Care withapprox. $25M, followed by WBFO and JFO.

• Looking at the average Primary Care costs per patient visit,GFO has the lowest costs with approx. $6, whereas LFO spendsmore than $14 per patient visit. SFO and JFO are in the mid-field with around $10 per visit.

Total costs - Primary Care Total costs Primary Care per patient visit

$-

$5.000.000,00

$10.000.000,00

$15.000.000,00

$20.000.000,00

$25.000.000,00

$30.000.000,00


Primary Care direct cost total Primary Care indirect cost total

$-

$2,00

$4,00

$6,00

$8,00

$10,00

$12,00

$14,00

$16,00


Primary Care: Average direct costs per Patient visit Primary Care: Average indirect costs per Patient visit

3. Results: Agency-wide benchmarking - Health, Activity Group

Secondary & Tertiary Care

Slide 39adcom – November 2012

Total costs - Secondary & Tertiary Care Total costs Secondary & Tertiary Care per hospitalization

$-

$1.000.000,00

$2.000.000,00

$3.000.000,00

$4.000.000,00

$5.000.000,00

$6.000.000,00

$7.000.000,00


Secondary & Tertiary Care direct cost total Secondary & Tertiary Care indirect cost total

$-

$50,00

$100,00

$150,00

$200,00

$250,00


Secondary & Tertiary Care: Average direct costs per Hospitalization

Secondary & Tertiary Care: Average indirect costs per Hospitalization

• The total costs of Secondary & Tertiary Care are by far the highest in WBFOwith more than $6M, followed by LFO with approx. $1.4M. All other fields spendless than $1M for Secondary & Tertiary care.

• Looking at the average Secondary & Tertiary Care costs per hospitalization,WBFO again has the highest costs with $225 per hospitalization, followed byGFO with $150. The other fields range between $20 and $50. One explanationfor this high costs in WBFO can be Qalqilia hospital, as all other fields almostonly outsource secondary & tertiary care services.

4. Lessons learned & recommendations

Slide 40

Topic Lessons learned & recommendations

Activity structure and allocation of FTEs

• The defined activity structure is a big step forthe agency as it is the first agency-wideharmonized catalogue of UNRWA services

• There is a need to conduct joint workshops perprogramme / activity group of HQ and fielddepartments to discuss and analyze the firstABC results, regarding the figures on one handbut also challenging the activity structure itself(structure, level of detail, comparability, etc.)

• ABC projects like this always need a learningphase of the first 6 – 12 months until everything isstable and all parties involved have gainedsome experience to work with the model andthe reports

END

Slide 41

update on unrwa’s finances advisory commission …...1) gf financial situation until the end of...

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