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STRATEGIC BUDGET SPACE ALLOCATION

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Background – Working GroupBackground – Working Group

The 134th session of the Executive Board endorsed the Director-General’s proposal to establish a working group on strategic resource allocation.

The Working Group was established with six Programme, Budget and Administration Committee (PBAC) members or their designates.

– It was led by the Chair of PBAC (Belgium).– Members included Cameroon, Egypt, Malaysia,

the Maldives and Mexico.

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BackgroundBackground

Key objectives of the Working Group – Guiding the Secretariat in developing the proposal for

a new methodology for strategic resource allocation– Facilitating discussion at the PBAC meeting on the

final proposal

Working Group’s first teleconference (17 February 2014) and face-to-face meeting (23–24 April, 2014)

Outcome of the April meeting: – provisional proposal for scope, principles, criteria and

way forward

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BackgroundBackground

Working Group’s provisional proposal and recommendations were discussed at the twentieth meeting of the PBAC and considered by the Sixty-seventh World Health Assembly.

Support was expressed for PBAC’s recommendations, including:– endorsing the proposed way forward; and– changing the name to the Working Group on Strategic Budget

Space Allocation.

Executive Board decision EB135(1) endorsed the PBAC’s recommendation to maintain the Working Group’s current membership.

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ConsiderationsConsiderations

Scope

The methodology for strategic budget space allocation should be applied:

• to both assessed and voluntary contributions• in support of the Organization’s one workplan and

one budget (programme budget).

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ConsiderationsConsiderations

Key principles

1. Based on needs and evidence

2. Results-based management

3. Fairness and equity

4. Accountability and transparency

5. Clear roles and functions at WHO’s three levels

6. Performance improvement

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Four operational segmentsFour operational segments

1. Technical cooperation at country level: functions and activities at country level, where individual countries experience the benefits directly

2. Provision of global and regional public goods: functions performed by WHO headquarters and regional offices to benefit all Member States

3. Administration and management required to run the Organization across all levels (including stewardship, governance, common services and infrastructure)

4. Response to emergency events such as outbreak and crisis response.

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Considerations: criteria for segment 1Considerations: criteria for segment 1

Determine the profile of each country, taking into consideration:

– human development index + immunization coverage; – proxy indicators for technical categories in the General Programme

of Work (GPW) (such as inequity, disability-adjusted life-years lost to communicable and noncommunicable diseases, proportion of births attended by skilled health personnel and capacity to implement the International Health Regulations);

– weighted by a population factor; and– aggregated at the regional level.

Allow the allocation to be distributed across the six WHO regions, based on the total allocation to the countries in each Region.

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Considerations: criteria for segment 1Considerations: criteria for segment 1

Support to technical cooperation at country level will then be based on bottom-up planning, taking account of:

– the needs and priorities of the individual country;– alignment with the country cooperation strategy and national

investment plan;– the comparative advantages of WHO;– alignment with the priorities identified in the GPW.

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Considerations: criteria for segment 2Considerations: criteria for segment 2

(i) For mandatory functions or long-term commitments (such as the Codex Alimentarius Commission) allocation could:

– be based on current and historical patterns– take into consideration continuous performance improvement and cost–

efficiency.

(ii) For other functions or priorities, resources could be based on assessment and identification of global and regional health needs and priorities, taking account of criteria such as:

– GPW;– countries’ needs and priorities;– resolutions of WHO’s governing bodies;– the comparative advantages of WHO;– the roles and functions of the three levels of the Organization (with

consideration for efficiency and effectiveness); and– realistic costing of outputs and deliverables.

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Segments 3 and 4 (issues for future discussion and consideration)

Segments 3 and 4 (issues for future discussion and consideration)

Segment 3

Ongoing review and discussion on budgeting and financing of administration and management costs, including:

– how best to align these costs with programme delivery; and– how to finance them and how best to build in cost–efficiency

measures.

Working Group’s emphasis on the need to consider:– minimum requirements for ensuring the effective functioning of the

Organization within its control framework; and– cost–efficiency and –effectiveness in alignment with audit

recommendations.

Segment 4

Agreement that the new methodology may not apply to segment 4.

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Working Group’s observationsWorking Group’s observations

Appreciation that developing a new methodology for budget space allocation in WHO is quite a complex task

The interdependency of strategic budget space allocation with a number of current initiatives addressing:

– bottom-up planning – the identification and costing of outputs and deliverables– the roles and functions of the three levels of the Organization– the financing of administrative and management costs

Importance of ensuring that development of the methodology for strategic resource allocation is informed by the work of these initiatives, and vice versa

Need to ensure that the new methodology for budget space resource allocation is viable and applicable at all three levels of the Organization

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Current breakdown based on the programme budget for 2014–2015 Current breakdown based on the

programme budget for 2014–2015 Operational segments

Headquarters (%) Regions (%) Country offices (%)

Total (%)

Technical cooperation at country level

0.0 0.0 23.3 23

Global and regional public goods

20.0 12.6 0.1 33

Administration and management

10.8 5.8 5.1 22

Response to emergencies

1.4 1.5 19.2 22

Total 32.3 19.9 47.8 100

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Proposed road mapProposed road map

Present the revised paper to regional committees for input and further guidance: September–October 2014

In parallel, the Secretariat develops different models, by applying the principles and criteria, for discussion with the Working Group

Hold a face-to-face meeting of the Working Group to review the models developed and provide guidance to the Secretariat: November 2014

Provide update on the draft proposal to Member States: mid-December

The Secretariat presents a draft proposal on the new strategic budget space allocation to PBAC: January 2015