Ex Exec ecutiv utive e Boar oard d Inf nforma ormal l Bri - - PowerPoint PPT Presentation

UN UNDP DP Str tructure uctured d Fun unding ing Di Dial alogue

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Ex Exec ecutiv utive e Boar

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d Inf nforma

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19 August ust 2020

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1 2 3 Impact of COVID-19 UNDP’s Response to COVID-19 Key 2019 Highlights

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4 Funding Gap Analysis Main Takeaways 5

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Impac mpact t of COVID-19: 9: on gl global l ec econom

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Impac mpact t of COVID-19: 9: on de devel elopm pmen ent t fin inance

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Contraction in national budgets due to global economic contraction Decrease in ODA (in absolute terms) due to shrinking economies Repurposing of ODA towards humanitarian assistance Economic recovery likely to be prolonged

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The UN and UNDP’s Response to COVID-19 19

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UNDP’s COVID-19 crisis response is designed to help decision-makers look beyond recovery, towards 2030, making choices and managing complexity and uncertainty in four main areas: governance, social protection, green economy, and digital disruption. It encompasses our role in technically leading the UN’s socio-economic response.

The UN’s evolving response

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UNDP’s Response to COVID-19 19

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UNDP’s Response to COVID-19 19

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https://open.undp.org/our-approaches/undpcr

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Key 2019 9 Hig ighlig ights: hts: Fundi ding Co g Compact mpact

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Key 2019 9 Hig ighlig ights: hts: Per erformance

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UNDP remains the most st transp spare rent nt UN agency Institutional bud udge get t balanc nced ed for a third consecutive year Un Unqua ualif lified ied financial statements audit reports for 15 consecuti cutive year ars

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Key 2019 9 Hig ighlig ights: hts: Fundi ding S g Sit ituati tion

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Core to non-core ratio remains at 13 13%, making earmarked resources the predominant form of contributions to UNDP $5m increase in core contributions from $624m in 2018 to $629m 9m 58% 58% of core resources received came from multi- year commitments 54% increase in thematic Funding Windows to $103m 3m, the largest amount received since inception Annual contributions declined by 7% to $4.8b, with $0.16b attributable to foreign currency fluctuations 3.3% increase in proportion of regular resources allocated to development programmes to 65.9% 9% 28% 28% increase in engagement with pooled funds to $477m from $372m in 2018 15% decrease in total revenue to $4.8b and 3% decrease in total expense to $4.9b.

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Fundi ding Gap Analysis is

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2018-2019 Programme Expenditure by Signature Solution

(100% Stacked Column Chart)

$203 $211 $55 $51 $18 $25 $629 $847 $94 $76 $24 $17 $583 $258 $132 $557 $93 $2,037 $2,082 $197 $161 $42 $43 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Solution 1 Poverty Solution 2 Governance Solution 3 Resilience Solution 4 Environment Solution 5 Energy Solution 6 Gender

Regular Resources Programme Government Vertical Fund Third-party Cost Sharing

6% 6% 12% 6% 10% 29%

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NEW - Costi ting ng for r Res esul ults ts Exer erci cise se for Fun undi ding ng Gap ap A Ana nalysis sis

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Cost sting ng for r Results ults Ex Exercis cise

• For the first time, UNDP conducted the Costing for Results Exercise, bottom-up country office

led estimation of the cost to achieve programmatic results planned in the CPDs, RPDs and Global Projects. Fun undi ding ng Gap An Analys ysis is

• In response to the EB Decision 2019/18, UNDP conducted the first Funding Gap Analysis for

programmatic results areas.

• Funding gap is calculated as follows:

Estimated Costs for results 2020 -2021 – Available Resources (budget as proxy) for 2020 and 2021

• As the exercise was conducted in February 2020, the bottom-up costs do not include the

estimated resources required for UNDP’s COVID-19 response work - $700M for the next 12 to 18 months.

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Fundi ding Gap Analysis is

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1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

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1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

1 - Poverty 2 - Governance 3 - Resilience 4 - Environment 5 - Energy 6 - Gender

Funding Gap Analysis for 2020-2021

By Signature Solution

(USD Millions)

2020-2021 Budget 2020-2021 Estimated Cost

39% 23% 39% 33% 26% 63%

Overall Funding Gap (Programmatic Areas)

27%

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Fundi ding Gap Analysis is

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2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

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2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Outcome 1 - Advancing poverty eradication in all its forms and dimensions Outcome 2 - Accelerate structural transformations for sustainable development Outcome 3 - Strengthen resilience to shocks and crisis Legacy / New Areas

2018-2021 Resource Plan vs. 2018-2019 Expendigure, 2020-2021 Budget and Funding Gap

(In USD Millions) 2018-2021 Resource Plan 2018-2019 Expenditure 2020-2021 Budget 2020-2021 Funding Gap

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• Estimated funding gap to achieve SP targets by 2021 is approximately $2.8B.
• Funding gap for Signature Solution 6 (Gender) is largest in terms of proportion (63%).
• Funding gap for Signature Solution 1 (Poverty) and Signature Solution 2 (Governance) is

the largest in terms of absolute values - approximately $1.6B and $1.5B, respectively.

• At SP output level, UNDP mobilized sufficient resources for some outputs while other are at

risk of underachieving the 2021 targets. Flexible/predi xible/predicta ctable ble regula ular r resou sources ces are critical cal for UNDP to fill the funding gaps and quickly respond to new and emerging needs, such as the COVID-19 response.

• The data and lessons learned from the first Costing for Results Exercise and Funding Gap

Analysis will inform the resource plan for the new Strategic Plan and Integrated Budget for 2022-2025.

Fundi ding Ga g Gap An p Analysis is – Key Fi Findi dings gs

Mai ain T n Tak akea eaways ys

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 COVID-19 underscored the e value ue and vul ulnerabi nerability lity of the e mul ultilat ilatera eral l system em and the importance of flexible funding for UNDP’s agile programmatic and operational response  UNDP takes the Fun unding ding Com

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act t seriously, making progress on 77% of its entity-specific indicators while contributing to the realization of UNDS collective commitments  UNDP continued to drive imp mproveme ements nts in key perform

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ance areas as – in transparency and accountability, efficiencies, balancing its budget, securing an unqualified audit opinion, and allocating more core funds to development programmes  Lack ck of qua uality y fun unding ding limits UNDP’s ability to allocate resources to underfunded areas and address funding gaps of the Strategic Plan  UNDP values struc uctu tured red fun unding ding dialogues

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ift fun unding ding beha havior vior and acceler elerate results ts on the ground nd, realizing the mutual commitments of the funding compact