HOW IS UNRWA FUNDED?

UNRWA operations are financed almost entirely by voluntary contributions from governments and the European Union, which account for 94 per cent of all income. Most contributions are received in cash, although 1.5 per cent of income is received in kind, mainly as donations for food commodities for distribution to needy Palestine refugees. Five per cent of income is from United Nations bodies to cover staffing costs, including the funding of 119 international staff posts by the United Nations Secretariat. Unlike the United Nations as a whole, UNRWA has no system of assessed contributions.

The Agency’s largest donors in 2007 were the United States, the European Commission, Sweden, Norway and the United Kingdom. As of 31 May 2008, the Agency's largest contributors for 2008 are the United States, the European Commission, Sweden, the United Kingdom, Norway and the Netherlands.

UNRWA’S BUDGET

UNRWA’s General Assembly-approved cash budget for 2008 is US$ 541.8 million. This funds the Agency’s ongoing Education, Health and Relief and Social Services activities. As of 31 May 2008, contributions pledged to this cash budget by UN and donors total US$ 444.4 million in addition to US$ 32.3 million which is expected to be pledged during the year. An additional US$ 56.8 million has been budgeted for projects and US$2.8 million for in-kind donations.

In keeping with previous years, UNRWA will likely have to initiate measures to reduce implementation of some planned activities to bring its regular budget closer to its likely income from donors. In 2007, UNRWA’s regular cash budget was approved at a level of US$487.1 million. However, actual net expenditure was US$ 404.4 million while income was US$ 438.5 million.

Since October 2000, UNRWA has launched Emergency Appeals to the donor community to fund the Agency's Emergency Programmes in the West Bank and Gaza Strip. From October 2000 until December 2007, the Agency received a total of US$826.6 million in pledges, which is less than two-thirds of the amount requested. In December 2007, UNRWA launched an appeal for US$ 237.7 million to cover the cost of its emergency activities in 2008. In May 2008 the requirement was revised and increased to US$ 263.4 million. Against 2008 Appeal UNRWA received US$ 128.3 million in pledges as of 31 May 2008. Please find additional information on the Emergency Appeals below.

FINANCIAL SITUATION
As of 31 May 2008

Regular Budget

Expected income and expenditure for 2008, shown in Table 1 below, indicate a funding shortfall of US$ 39.1 million when compared to the net budgeted expenditure of US$ 523.8 million with total expected income of US$ 484.7 million.

Table 1
Income and Expenditure
Regular Budget
(US$ m)
2007   2008

407.1

19.4
8.9
  3.1 
438.5
 		 Income (Expected):
     Donor Contributions
(including cash for food)
     UN Funding
     Other Sources
     Exchange Gains
Total Income
 
457.3

19.4
4.0
   4.0    
484.73
 
 336.4
90.7
427.1
 
(22.7)
404.4		 Expenditure (Budgeted):
  Staff Costs
  Non-Staff Costs
 
Less
     PSC recovery
Net Expenditure
 		 393.8
148.0 
541.8

(18.0)
523.8
 
34.1 Funding Excess (Shortfall) (39.1) 

Emergency Appeals

Table 2 below shows the financial status of successive Emergency Appeals launched by the Agency to attend to the humanitarian needs which resulted from the emergency situation in the Gaza Strip and the West Bank.

Table 2

Emergency Appeal-Funding Status
(US$ m)
  Prior Years Appeals % 2007 Appeal % 2008 Appeal %
Amount Requested 1,098.0   245.0   263.4  
Confirmed Pledges 648.0 62.3% 142.6 58.2% 128.3 48.7%
Amount Received 655.6   135.9   85.9  
Outstanding Pledges 28.4   6.7   42.4  
Un-funded 414.0 37.7% 102.4 41.8% 135.1 51.3%

Due to insufficient donor pledges for the Emergency Appeal, and unless further contributions are received for the rest of 2008, the Agency will not be able to adequately address the humanitarian needs of the refugees resulting from the escalating emergency situation in the Gaza Strip and the West Bank.

Table 3 below illustrates the implementation status of the Emergency Appeals as of 31 May 2008.

Table 3
Emergency Appeal-Implementation Status
(US$ m)
  Prior Years Appeals 2007 Appeal 2008 Appeal
Amount Appealed 1,098.0 245.0 263.4
Amount Received 655.6 135.9 85.9
Expenditure and Commitments 689.6 1 137.3 1 53.0 1
1. These figures include advance allotments against confirmed pledges.

Lebanon Emergency Appeal

Table 4 below shows the financial status of Emergency Appeals launched by the Agency to attend to the humanitarian needs which resulted from the emergency situation in Lebanon.

Table 4
  2006 Lebanon Flash  Appeal 2007  Lebanon Flash  Appeal 2007-08  Northern Lebanon  Appeal
Amount Appealed 7.2 11.5 54.8
Confirmed Pledges 5.7 8.5 57.2
Amount Received 5.7 8.5 50.7
Outstanding Pledges 0 0 6.5
Funding Status 79.2% 73.9% 104.4%

Projects

As could be noted from the table below, the Agency’s project budget for 2008 remains largely unfunded:

Table 5

 

Project Budget
Funding Status as of 31 May 2008
(US$ m)

  
2007   2008
135.8 Budget as per Agency Project Budget 56.8
43.3 Confirmed Pledges 14.4
92.5 Funding Gap 42.4

The non-funding of the above gap will certainly result in non-implementation of badly needed infrastructural requirements essential for the efficient delivery of services to registered Palestine refugees.

UNRWA Programme Budget 2008-2009 | Executive Summary (new)

FINANCIAL ARCHIVE

 


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