1 / 10

Comprehensive Review of Indirect Cost Recovery Policy (2007-2008)

This document provides an in-depth review of the Indirect Cost Recovery (ICR) policy from its inception on May 29, 2007, to December 31, 2008. It highlights the need for full costing of activities, mechanisms to recover incurred indirect costs, and identifies the uneven growth between Regular and Specific Funds. With data indicating that only a fraction of indirect costs is being recovered, the report details financial results, ICR inflows and outflows, and outlines successes and challenges of the new policy, along with recommendations for future steps.

blaise
Télécharger la présentation

Comprehensive Review of Indirect Cost Recovery Policy (2007-2008)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Indirect Cost Recovery (ICR) Policy: 1st Comprehensive ReviewFrom Inception (May 29, 2007) to December 31, 2008 September 9, 2009

  2. Background A new ICR policy: • Full costing of activities: direct and indirect costs. • Mechanism to recover indirect costs incurred. • Uneven growth between Regular Fund and Specific Funds. • Data on indirect costs was not clear. ICR 1st Comprehensive Review

  3. Basis of ICR Policy • Every $1 administered requires an additional $0.53 to cover indirect costs. • Only 6%, or $3 million, was being recovered from Specific Fund contributions. • $5.5 million were needed: $3 million + $2.5 million (Regular Fund). • New ICR rates: 11% for Member States and 12% for other donors. ICR 1st Comprehensive Review

  4. Report Structure • Preface • Cost of current administrative structure • Overview of financial results since ICR policy implementation • Details on ICR inflows and outflows • Conclusions • Next steps • Schedules ICR 1st Comprehensive Review

  5. Beginning Balance on June 1, 2007 $ 2.2 Add: ICR Collection $ 6.6 Interest Income 2.8 9.4 Available for Execution 11.6 Less: ICR Allocation 7.8 Transfer to the Regular Fund 1.2 9.0 Ending Balance on December 31, 2008 $ 2.6 ICR collection and utilization(for the 19 months from January 2007 to December 2008) (in millions) ICR 1st Comprehensive Review

  6. ICR inflows • “Grandfathered” 38.4 1.2 • Member State <= $20,000 0.3 - • Co-financed by Regular Fund 0.9 - • Unprogrammed Funds 7.7 - • Programmed at 11% or 12% 51.6 5.0 • Programmed at 10% or less 7.2 0.3 • Pending final negotiation with donors 13.7 - • Interest income - 2.9 ICR 1st Comprehensive Review

  7. ICR outflows • In 19 months, GS/OAS allocated $9.1 million of ICR collected. Total $9.1 million ICR 1st Comprehensive Review

  8. Conclusions I. Successes on the new ICR policy: • Simplified and centralized indirect cost recovery. • Uniform organizational recovery rate. • Identified where and how most indirect costs are incurred. • Promoted internal dialogue. • Confirmed that decentralized administrative units impact performance. ICR 1st Comprehensive Review

  9. Conclusions (continued) • Work remains to be done: • Misperceptions: • - Central administration captures ICR for its own benefit. • - ICR collected “belongs” to Secretariat managing the funds. • Misleading or negative communication to donors regarding ICR policy. • Incremental mandates not necessarily accompanied by required financing. • Donors having difficulty dealing with ICR requirements. ICR 1st Comprehensive Review

  10. Next Steps • Earmark ICR for infrastructure costs. • Reestablish a more coordinated management structure within each technical secretariat. • Maintain current ICR rates at the same level. ICR 1st Comprehensive Review

More Related