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ITC TRUST FUND  

Thirty-sixth Meeting
14 May 2008, 3.00 p.m.
ITC Conference Room 6-40


Information on the UN Standard Percentage for Programme Support Costs at 13% of Annual Project Expenditures

Further to the CCGTF Meeting, Wednesday, 14 May 2008, ITC would like to provide some background information on the UN standard percentage for programme support costs.

As noted in UN Administrative Instruction on “Programme Support Accounts”, ST/AI/286, 3 March 1982, p.1, section II.A, “All trust funds (general and technical co-operation) are charged for programme support services on the part of the Organization. The rate charged is that which has been approved by the General Assembly and communicated by the Assistant Secretary-General for Financial Services.”

The UN Secretary-General’s Bulletin on the “Establishment and Management of Trust Funds”, ST/SGB/188, 1 March 1982, p.9, paragraph 47 states, that “The amount of the reimbursement shall be calculated at the standard percentage rate approved by the General Assembly. To the extent that the activities of a trust fund do not warrant the levy of full support costs, the Assistant Secretary-General for Financial Services may make exceptions to this provision.”

In its decision 80/44 of 27 June 1980, the Governing Council of the United Nations Development Programme states in section II, 2(a) that “Reimbursement shall be made at the rate of 13 per cent of annual project expenditures and an appeal made to the executing agencies to implement operational projects within the reimbursements received and not to increase the levels of their regular budgets because of the new reimbursement rate”.

“In its report A/35/544 of 31 October 1980, the Advisory Committee had recommended that the General Assembly should introduce a uniform agency support costs charge at the rate of 13 per cent of annual project expenditures. The General Assembly subsequently approved that formula for services financed from extrabudgetary resources.” (SUMMARY RECORD OF THE 50th MEETING, of the 5th Committee, Wednesday, 12 March 1997, p.6).

As documented in the UN General Assembly Resolution, A/35/217, 17 December 1980, p.248/249, paragraph V, the General Assembly “Takes note of the report of the Advisory Committee on Administrative and Budgetary Questions on agency support costs” and “Approves the reimbursement formula embodied in decision 80/44 of 27 June 1980 of the Governing Council of the United Nations Development Programme”.

 

 

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