UNRWA FINANCIAL REPORT End- May 2011
2 Month Variances Donor income – unfavourable by -$19.8m – all timing variance. PSC favourable by $1m, increased project activity, hence E EOY forecast increased by $1m to $21m. Area labour costs unfavourable by -$1.6m – timing due to increases in: i)LDC & Temporary staff by -$0.4m, ii) CAF by -$1.7m, & other labour savings + $0.5m. Inventory and non-inventory supplies unfavourable by -$0.9m - timing, Admin support Services unfavourable by -$0.4m – timing variance Cash subsidies to hardship cases unfavourable by $-$0.5m – timing variance Year To Date Variances Donor income – unfavourable by -$46.8m due to timing variance – budgeted income not yet received incl. EU ($39m), USA ($11m) and receipts higher than budgeted incl. Sweden $3m. Area labour costs unfavourable by -$3.6m: Basic salary favourable by $1m, retirement benefits unfavourable by -$0.2m, Health related expenses favourable by $1.6m, annual leave accrual unfavourable by -$0.8m, CAF unfavourable by -$5m due to lower actual rate of NIS to budget more than offset by lower labour costs due to delayed appointment of staff. Non labour costs favourable by $29.1m, due to incorrect profiling of Reserves spend – all timing variance End of Year Forecast Initial budget deficit was -$63.0m, currently forecast to end of year at -$63.0m. The higher than forecast income + $7.3m (donor + $5.2m, PSC + other +$2.1m), equally offset by forecast higher expenses: CAF, provisions and derivatives. Movement in end of Year Forecast End of Year (EOY) forecast at April was -$64.7m, which is currently forecast at -$63.0m, a favourable movement of $1.7m, principally comprising: a) increase in PSC forecast +$1.0m, b) net FX gain +$2.0m, c) Increase forecast KSA income + $2.2m, and partially offset by: d) salary increases for Syria and Lebanon field -$3.4m and other -$0.2m. May 2011 General Fund Financial Summary
3 May 2011 Income Statement, General Fund - Resources US$ m
May 2011 Income Statement, General Fund – Resources (Page1 of 2) 4
May 2011 Income Statement, General Fund – Resources (Page 2 of 2) 5
May 2011 GF Donor Income – YTD and E EOY US$ m 6
UNRWA Bank Balances – May
UNRWA Foreign Exchange gains and losses for 2011 to-date are made up of the following: FX Gain/Loss on Donor Income –The difference between the fixed Budget Rates and the UN exchange rate multiplied by the forecasted Donor Income amount. –The result to date is a gain of $8.5m, due to an appreciation of most currencies against the USD. –Given that 97% of non-USD GF income is hedged, the above gain or loss is offset by an equal and opposite gain or loss on the Financial Derivatives for GF (ie a net FX impact at 31 May of ($0.1m). Financial Derivatives Gains/(Losses) –In 2010/11, hedging contracts (FX Forwards) were entered into to protect the value of budgeted GF and Project 2011 contributions. –The E EOY loss on these contracts reported is ($8.6m) for GF and ($0.3) for Projects. Other Exchange Gains/(Losses) –The revaluation of Foreign Currency bank balances and any other assets or liabilities, and the realised gain or loss on any foreign currency transactions. –The result YTD was a gain of $1.9m. This result is expected to remain minimal as foreign currency bank balances are now kept to a minimum - non-USD receipts are converted to USD immediately after receipt. Treasury – Foreign Exchange Result – May
2011 Cash Flow Forecast - General Fund – May
E EOY Income to Cash Flow Reconciliation – May
GF Cash Flow Statement for May
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13 General Fund – May 2011 US$ m
14 APPENDICES Financial Performance Report by Sub Programme Financial Performance Report by HDG (Objective) Balance Sheet as per UNSAS – As at 31 May 2011 YTD Dec and EOY General Fund – Cash Inflow Cash Flow Statements as on 31 May 2011 Supplier Aging as on 31 May 2011 Head Count as on 31 May 2011
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May 2011 GF – Donor Cash Inflows YTD and E EOY US$ m
23 Head Count as at End of May 2011 – Area Staff Budget
Supplier’s Accounts Payable & Advances – May 2011
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