text: oftheAdvisory Committee onAdministrative andBudgetary Questions onthe1984 UNICEFfinancial reportandthecomments andactiontakenbytheExecutive Director inresponse tothoseobservations (E/ICEF/1986/AB/L.4). Financial report: 1985 166.Several delegations calledforanexpansion oftheinformation contained in thefinancial report, suchastherequest forexpenditures bycountry andbysource offunding. Thesecretariat responded thatsuchinformation wasavailable atall times. Inaddition, several delegations requested thatthereports bemademore readable soastofacilitate theanalysis offinancial performance. The , secretariat pointed outthatitwouldreviewthereporting formats intimeforthe 1987Boardmeeting (seeparas. 48-54above). 167.Onedelegation requested acomplete breakdown ofthetotalstaff-related costs included inthe1985expenditures of$390million. Thesecretariat responded that totalstaffcostsamounted to$110million, consisting of$35million for UNICEF-contracted project personnel, $44million forprogramme-support personnel and$31million foradministrative services. 168.Several delegations notedthemovements inUNICEFassets andliabilities, especially thedecrease incashbalances. Thesecretariat notedthatthedecrease wasduemainlytoalowering ofsupplementary fundscashbalances whichresulted fromthetendency ofsupplementary fundsdonorstopaytheircontributions morein linewithproject implementation. 169.Onedelegation notedthesubstantial difference between the,loss in1984and thegainin1985onthevaluation ofUNICEFassets. Itwasreported thatthe relatively lowgainoflessthan$1million in1985resulted fromthedramatic fluctuation inthevalueoftheUnitedStatesdollarduringtheyear. 170.TheCommittee reviewed andnotedthefinancial report andstatements forthe yearended31December 1985(E/ICEF/1986/AB/L.7) (seeparas. 56-59above). Financial planfor1986-1989 171.Concern wasexpressed byseveral delegations aboutthebalance between general resources andsupplementary funds. Thesecretariat pointed outthatifemergency contributions wereexcluded fromthecalculation, supplementary fundswouldremain atapproximately 25percentoftotal ~ICEF incomefortheperiod 1986-1989. 172.Somedelegations expressed concern abouttheslimmargin between incomeand expenditure andthepossible needforcontingency plansshouldprojected income levelsfailtobereached. -26- 173.Although thesecretariat concurred withtheconcerns oftheCommittee, UNICEF wasconfident atthatpoint,thatthe1986incomeprojections, especially for general resources, wouldbemet.Should UNICEFexperience anynoticeable deviations fromtheprojections, theUNICEFfinancial monitoring system wouldgive earlywarning andallowthetriggering ofcorrective actions. Therolling nature ofthefinancial planallowed fortheadjustment offuturespending levels, should themodestprojections ofincomefor1987-1989 failtomaterialize. 174.Several delegations wereinterested inthelevelofexpenditures contained in theplanfortheUCIprogramme. Itwaspointed outthatnotallUCIfundswouldbe channelled through UNICEF. Withregardto"noted" projects, theplanassumed an average annualexpenditure of$30million. 175.Several delegations commented onthelowered levelsofliquidity. One delegation notedthatasaresultofthoseconcerns, UNICEFmightneedtoconsider theestablishment ofastatutory liquidity reserve. 176.Theplansforgeneral resources liquidity build-up wererevised upwardinthe 1986financial plansoastoestablish general resources cashbalances equivalent toonemonth's expenditure assoonaspossible, inlinewiththeBoard's requirement asoutlined atits1979session. Oncethatobjective wasachieved, UNICEFshould haveafurther bufferagainst futureadverse conditions inaddition toitscurrent liquidity policy. Thesecretariat expressed theviewthatoncethat levelofliquidity wasachieved, theestablishment ofastatutory liquidity reserve wouldnotbenecessary. Inresponse totheinquiry ofonedelegation, the secretariat agreedtoreviewthematterofastatutory cashreserve andtoreport backtotheBoardatits1987regular session (seeparas. 87-88above). 177.Therecommendation oftheCommittee onAdministration andFinance, asadopted bytheExecutive Board,appears inchapter VI,decision 1986/6. Restatement ofthe1986-1987 budgetresolutions 178.TheCommittee considered thefollowing:
analysis: This text appears to be a report on the financial management and planning of UNICEF, a humanitarian organization focused on improving the lives of children and mothers worldwide. The report discusses the organization's financial performance, budget planning, and liquidity management, indicating that it is primarily concerned with the financial aspects of its operations. Given the focus on financial management and planning, it is likely that the report is related to the organization's humanitarian efforts.