WMO Proposed Budget 2012-2015

1. WMO Proposed Budget2012-2015 EXECUTIVE COUNCIL Geneva, 8 to 18 June 2010

2. 1. Budget 2012-2015: main features • 4 Priorities: GFCS, capacity building, observation systems, disaster • Budget of CHF 315.0 million, including assessed resources of CHF 267.0 million (reflecting increase of 2% annually) • 2 options for reductions of assessed resources • Concept of integrated budget based on assessed and voluntary funding, including Major Initiatives • Addition information: 16 years of ZNG

3. 2. Budget 2012-2015: resources overview • Budget of CHF 315.0 million including: • Regular resources of CHF 282.0 million • Assessed contributions: CHF 267.0 million reflecting 2% real growth annually above inflation of 0.7% with total increase of CHF 17.2 million • Other regular income: CHF 15.0 million with a decrease of CHF 2.0 million • Surplus: Zero as compared to CHF 9.2 million in previous budget • Jointly funded voluntary resources (IPCC, WCRP, GCOS) of CHF 33.0 million

4. 3. Budget 2012-2015: programme details • 4 Budget priorities • GFCS – additional CHF 2.4 million; no new staff, start-up funding for new deliverables • Capacity building - additional CHF 2.7 million; no new staff • Observation systems – additional CHF 0.9 million; one staff for WIGOS and balance for non-staff • Disaster mitigation – additional CHF 1.6 million; one new staff and remaining for non-staff • From Strategic Plan • 8 Expected Results – previous 11 Expected Results • 27 Key Outcomes (KOs) with Key Performance Indictors (KPIs) • Programmes by Expected Results • Deliverables: lowest programmatic entity

5. 4. Budget reductions: implications • Option 1 Zero Real Growth (ZRG) budget of CHF 254.2 million: inflation adjustment of 0.7% annually of CHF 4.4 million (decrease of CHF 12.8 millioncompared to budget proposal). • Reduction in maintenance of building from CHF10.0 by CHF 5.9 million. • No significant contribution to GFCS • WIS and WIGOS will be affected • Reduction in the linguistic and publishing services • Option 2 Zero Nominal Growth (ZNG) budget of CHF 249.8 million: no change compared to previous financial period (further decrease of CHF 4.4 millioncompared to Option 1). • Introduced across Expected Results

6. 5. Concept of integrated budget • Allows for priority setting on the use of all WMO resorces, including assessed and voluntary funding • Enhances the resource base for core activities by closing the gap in funding mechanism between assessed and ad hoc voluntary funding: stable, predictable and possibly multi-year voluntary funding • Introduces priorty setting, result-based planning and monitoring of voluntary contributions as part of the regular budget process • Involves total membership in priority setting; allows potential donors to earmark voluntary funding as part of result-based budget process

7. 6. Major Initiatives • 5 Major Initiatives: GFCS; capacity building; observation systems; disaster risk reduction; communication • Total resource framework of CHF 142.0 million, including: • Anticipated voluntary resources of CHF 76.0 million (compared to CHF 80.3 million for 2008-2011) • Additional voluntary of CHF 66.0 million

8. 7. Arrangement for voluntary funding in UN system • UNEP: voluntary indicative scale of contributions (VISC) for Environment Fund • UNICEF, UNFPA, UNDP: Multi-year funding frameworks (MYFFs) – four year cycle • IFAD, Global Fund: Negotiated replenishment • Most agencies: pledging events targeted to high priority initiatives • Partnership agreement (or Framework Agreements) between organization and funding organization to streamline and consolidate funding to priority activities within the approved programme

9. 8. Possible modalities for WMO • Simple arrangement based on current practise • Major Initiatives submitted for voluntary funding together with pledging component • Consultations with Members at the policy and technical levels to prepare for consideration • Funding targets set by Congress and Executive Council • Pledging event as part of the Congress and Executive Council session to ensure institutional visibility and widest participation • Financial contributions linked to results and programme performance • Subsequent funding commitments compatability with budgetary cycles of donors • Implementation in accordance with available pledges/funding • Active participating of developing countries

10. 9. UNEP’s Environment Fund experience • 2009 • Pledged: USD 85.6 million by 99 countries • Paid: USD 79.8 million • 2010 • Pledged: USD 18.5 million by 44 countries • Paid 2010: USD 0.8 million • Systematic fund-raising provides for predictable and stable implementation

11. 10. Annexes • Annex A: list of meetings • Annex B: budget by organizational entities; not strictly required under RBB but provides additional transparency; new tables are introduced presenting budget by Expected Result and Organisational Entity • Annex C: Presentation of support budget apportioned to Expected Results (REM, Common Services, Procurement and Travel, Payment of Loan and Joint Costs)

12. 11. Additional: ZNG for 16 years • Maintain central coordination function: • increased Executive Council subsidiary meetings with cost increase offset through reduction of duration of meetings; • maintained expert staff at around 260-270 while decreasing non-staff component (staff component increased from 65% to 75%) • Reduction in number of published titles • Introduction of new initiatives (risk reduction programme; expansion of oversight function including External Auditor, Audit Committee, IOO; expansion of language services) • Accommodating increase in mandatory costs (building maintenance, mandatory contribution to inter-agency coordination)