20 The programme budget’s main dimensions are global outcomes and major offices (representing the regional and country offices and headquarters), which together enable the budget to show the cost of delivering results.
Budget segments
30 The programme budget is presented in four segments: base programmes, emergency operations and appeals, polio eradication, and special programmes.
Base programmes: this segment represents the core mandate of WHO and constitutes the largest part of the programme budget in terms of strategic priority-setting, detail, budget figures and performance assessment mechanisms. This segment reflects overall global health priorities trends and shows budget distribution by outcome across the major offices.
Emergency operations and appeals: this segment includes WHO’s operations in emergency and humanitarian settings, including protracted crises, as well as its response to acute events. Being subject to the event-driven nature of the activities concerned, the Director-General has delegated authority to increase the budget of this segment as appropriate and in line with the level of operations, funding availability and implementation levels.
Polio eradication: this segment represents WHO’s share of the implementation of the Global Polio Eradication Initiative strategy budget. Event driven by nature.
Special programmes: this segment currently includes special programmes that have additional governance mechanisms and budget cycles that inform their annual and biennial budgets, namely the UNDP/UNFPA/UNICEF/WHO/World Bank Special Programme of Research, Development and Research Training in Human Reproduction; the UNICEF/UNDP/World Bank/WHO Special Programme for Research and Training in Tropical Diseases; and the Pandemic Influenza Preparedness Framework. The distinct budget segment for these programmes provides the necessary flexibility to accommodate the requirements of their respective oversight bodies, while at the same time enhancing the transparency of their contribution to the results of the draft programme budget. The Director-General, where necessary, can incur additional expenditures in the Special programmes segment of the budget beyond the amount approved for this segment, because of additional governance and resource mobilization mechanisms, as well as their budget cycle, which inform the annual/biennial budgets for these special programmes, subject to availability of resources.
40 All budget approvals and revisions must take into account the segment of the budget to which they apply.
Financing the programme budget
50 The programme budget is broadly financed by two main types of funds: assessed contributions and voluntary contributions.
Assessed contributions refer to the “dues” from Member States and Associate Members used to finance the programme budget.
Voluntary contributions can be of several types, depending on their degree of flexibility. Programme support costs are derived from charges against voluntary contributions as described in resolution WHA34.17 and decision EB154(4). These are transferred to the Programme Support Cost Fund and are used to support the enabling (leadership, management and administration) functions of the Secretariat.
When voluntary contributions are fully flexible, they are denominated ‘core voluntary contributions’.
‘Specified voluntary contributions’ refers to voluntary contributions that are earmarked. They are managed by the responsible managers as per conditions mutually agreed with the contributor, defined in line with a detailed project. Most of the financial resources mobilized and implemented by WHO still fall under this category.
‘Thematic voluntary contributions’ is a type of voluntary contribution, characterized by minimal earmarking, full alignment with programme budget results and full flexibility in terms of expenditures against salaries and/or activities.
The Secretariat groups the assessed contributions, core voluntary contributions and the indirect costs levied (programme support costs) on each voluntary contribution into what is called “flexible funds”.
60 The allocation of resources in each biennium is determined considering requirements and gaps in financing the programme budget and approved operational plans, any applicable donor specifications, and the necessary business decisions at the time. Depending on the nature of the fund or award, senior management may establish specific guidelines for distribution of a fund, or an oversight committee.
When it comes to allocation of resources, the aim of the Secretariat is to improve the alignment between the priorities set out jointly with Member States and available resources to achieve these priorities across the three levels of the Organization. But this goal is limited by the nature of funds that finance WHO. For this purpose, WHO has established mechanisms for allocation of resources adapted to the type of resources it receives.
For flexible funds, in consultation with the Global Policy Groupwthe Director-General determines the biennial envelopes for each major office[EG1] . These allocations are communicated prior to the start of the biennium to:
Facilitate more predictable and sustainable planning of staff and activities;
Strengthen priority-setting during the finalization of human resources plans;
Enhance and streamline the management of flexible resources throughout the biennium; and
Ensure transparent allocation across all major offices.
Specified voluntary contributions are managed by the responsible managers as per conditions mutually agreed with the donor, defined in line with a detailed project.
Thematic voluntary contributions are managed and allocated via the Resource Allocation Committee, which involves senior management from the three levels of the Organization to make strategic decisions on the allocation of resources.
Recording costs outside the programme budget
70 All normal operational and administrative costs of the Organization are presented to the World Health Assembly as part of the programme budget and then managed accordingly against the results of the programme budget. In addition, for accounting purposes, WHO records some budgets, income and expenditures outside the programme budget (for example, hosted partnerships, other entities, internal revenue/backcharging funds, in-kind/in-service.)
80 As defined in the Chart of Accounts, those funds used for programme budget purposes are held in the General Fund. Funds used for non-programme budget purposes are held outside the General Fund, in their own ledgers.
90 Costs recorded outside the programme budget are normally of one of two types: firstly, costs recorded against special forms of income generated through charges already recorded against the programme budget (for cost-recovery); and secondly, income expended through some form of fiduciary relationship.
Budget controls
100 Upon its approval, the budget must be entered into the programme management system for a workplan to be approved and for encumbrances and expenditures to occur.
110 The budget as entered in the programme management system is the basis of, and the control mechanism for, planning, financing (resource allocation) and authorization of expenditure. Workplans, including the finances applied to workplans, cannot exceed the programme budget allocations as specified in the programme management system. The budget itself is further controlled through formal allocations and revision processes.
