Overview of Results Based Budgeting (RBB)

1. Overview of Results Based Budgeting (RBB) RBEC Workshop OPB/BOM October 2007

2. “Moving to a Results-Based Budget (RBB) System” What is RBB? • RBB is a system in which resources are requested and allocated based on the results to be achieved rather than by input category or by broad strategic objectives and needs a Logical Framework to support it. Why RBB? • RBB is part of the Secretary General’s reform agenda of increasing transparency, efficiency and accountability of United Nations system organizations. • RBB is a key instrument for advancing the process of change towards a results-based management culture. • RBB is to respond to increased public demand for accountability in the use of resources. • The Executive Board has mandated that UNDP implement RBB in 2008-2009. Who will implement RBB? • UNDP, UNFPA and UNICEF will present the Biennium Support Budget for the 2008-2009 biennium to the Executive Board based on the extent possible of RBB principles.   How to implement RBB? • The move to RBB will be progressive.  As lessons are learned from the first biennium, continued improvements will be made in the RBB framework.  

3. Objectives • Key considerations to implement RBB in UNDP • Increase budget effectiveness & transparency • The purpose of budget requests is clarified within the framework of the Strategic Plan • Resources are allocated to activity areas that contribute to the achievement of institutional results. • Use of the organization’s resources are aligned with its long-term objectives. • Foster a system and culture of accountability • Proposal for the way forward – a Logical Framework to support the: • Alignment of development, UN coordination & management results with the Strategic Plan institutional results. • Alignment of unit work plan results with development & management results. • Allocation of resources to unit work plan results. • A mechanism to track which resources are contributing to which results. • A mechanism to set unit level targets towards Strategic Plan institutional results. Strategic Plan Development, UN Coordination & Management Results P L A N N I N G Performance Monitoring & Assessment Unit Results Resource Planning Funding & Allocation Plans Alignment Hierarchy

4. “Moving to a Results-Based Budget (RBB) System” How we got here: • Consultative process at HQs and CO levels • Formulation and approval of the Logical Framework • Design and implementation of the Atlas Planning and Budgeting Module • Design and implementation of the Office Management Plan system • Ongoing design and implementation of the Performance Management system

5. Logical Framework 1 Traceable results through mapping 2 Planning Strategic Plan RBB Unit Work Plan Budgeting SP-R1 SP-R2 SP-R3 SP-R4 SP-R5 F1 MR1 Indic BL Target F2 MR2 Indic BL Target F3 MR3 Indic BL Target MR1 Unit Target Output 1 $ F1 Output 2 MR2 Unit Target Output $ F2 MR3 Unit Target Output $ F3 Input (resource requirements) F1 $ F2 $ F3 $ Outcomes (results) 3 F1 $ F2 $ F3 $ Budget Request and Approval A T L A S Funding & Allocation Allocation Issued Approved Budget Expenditure Performance Management 4 Performance Measurement $ $ $ Func Results Planned Actual F1MR1 $ $ F2 MR2 $ $ F3 MR3 $ $

6. RBB Functions

7. Capture - Indicators, Baseline, Targets, Unit Outputs Data entry into a new Online Work Plan Template 1 Other data source 2b Online Unit Work plan 2a COs & HQ Units Discuss & Prepare Work plans based on the RBB framework Atlas Planning & Budgeting Module (PBM) RBx and OBP review Unit’s Budget Requests 2c 3a Allocation Capture Resource Allocation 3b RBM DB Monitoring Atlas Finance Module 2d Senior Management approves Unit’s Budget Requests Approved Budget Requests are Projectized Atlas Finance – Grants > Awards > Projects Information Systems Framework Atlas Finance – Commitment Control