Cost recovery

2005 12 Recovery of indirect costs for co financing

Cost recovery income estimates

2005 18 UNDP strategic cost management and implications for cost recovery

Consultations continue with parties concerned with a view to obtaining reimbursement.

The projections for future years take into account higher other resources expenditure levels and increased recovery offset following the adoption of the new UNICEF recovery policy.

The entire recovery process is usually completed within four hours.

All overpayments, except for one, have been recovered in full.

Costs are charged to projects, ensuring full cost recovery.

(i) UNDP strategic cost management and implications for cost recovery (DP 2004 36)

It is proposed that subscriber fees be introduced immediately to build in the elements of cost recovery from the beginning.

Proposals for non traditional sources of funding included arrangements for recuperation of costs, self financing, and reduction of management and administrative costs.

Welcomes the participation of UNDP in the work of the UNDG Management Group with regard to further harmonization of cost recovery principles and refining the criteria for cost recovery rates

Adopted decision 2005 18 of 22 June 2005 on UNDP strategic cost management and implications for cost recovery.

Provision is also made for 18 military type helicopters that will be provided by Governments on a reimbursable basis.

Adopted decision 2005 12 of 28 January 2005 on the recovery of indirect costs for co financing

Seizure...

Took note of document DP 2005 CRP.4 on reporting of UNDP income from cost recovery

Many such services are provided to the United Nations funds and programmes, specialized agencies and other organizations on a reimbursable basis.

(iv) Employing cost recovery, where appropriate, to contribute to the sustainability of services, with targeted subsidies for the poor

In the document UNDP strategic cost management and implications for cost recovery (DP 2004 35), UNDP reported on the outcome of inter agency meetings resulting in a redefinition of cost classifications.

The Board also notes that the Executive Director of UNOPS issued a project acceptance directive to staff on 28 April 2005, which stated that projects should only be accepted on the basis of full cost recovery for project related costs.

These should be included under a contractual agreement between the organizations, indicating the agreed level of service and the financial commitments for both parties (fees, cost recovery mechanisms or other financial arrangements).

Asset recovery

Concerning cost recovery, one delegation asked if the new policy ensured that full costs associated with non core activities, direct and indirect, were recovered.

The private sector has typically stayed out, owing to long cost recovery periods, small market size, and lack of consumer credit.

He pointed to a harmonization of cost recovery practices system wide via the UNDG High level Committee on Management.

The increases in cost recovery, described in the following paragraph, bring this down to a net increase of 7.6 per cent.

Currently the United Nations Office at Vienna performs the finance and accounting functions on UNDCP apos s behalf on a cost reimbursable basis.

Full reimbursement in accordance with standard rates of reimbursement has been made to those Governments only up to the period ending 28 February 1993.

Recovery of payments

Recovery of maintenance

VII. RECOVERY

The Board was informed that the whole amount has been recovered through set offs against invoices subsequently presented by the vendor.

Takes note of the conference room paper on criteria for the determination of project specific cost recovery rates (DP 2005 CRP.5)

Continued logistic support, on a reimbursable basis, has also been provided to the International Criminal Court for its activities in the Democratic Republic of the Congo.

9 WFP has a relatively simple and transparent system in place that ensures that recovery from supplementary contributions covers all incremental costs plus an appropriate share of administrative costs (called indirect support costs in WFP terminology).

The activities include roads, drainage and sewerage facilities, credit facilities for landowners, and cost recovery mechanisms for the construction and maintenance of infrastructure.

Recovery of indebtedness to the Fund

Monitoring of reimbursements of surcharges

While continuing to provide a range of service lines, UNOPS will rationalize and streamline its corporate and support structures to reduce its fixed cost base, introduce activity based costing, and price its services to ensure full cost recovery.

With respect to cost recovery, it was noted that there were limits to cost recovery policies as the poor could not always repay the full cost of the basic infrastructure required for achieving decent living conditions.

They cannot justify developing new drugs unless they can expect to recoup their costs through sales.

The additional recovery income offsets the growth in support budget expenditures, thus maximizing the funds available for programme assistance.

In addition, UNDP has seconded a D 1 post to UNSCO on a reimbursable basis.