Many of our readers seem to be mainly interested in disasters and the good that UNICEF does; many don’t really care about financial details. But I don't want to hide from you that UNICEF generated a surplus of 1.85 billion US Dollar in 2022 alone. Together with past surpluses, UNICEF has meanwhile accumulated surpluses and reserves exceeding 12.36 billion US Dollar, by 31 December 2022. As a major player in the aid industry, UNICEF enjoys excellent financial health. In other industries, surpluses are called profits.
Twelve billion US Dollar are the equivalent of one and a half years of UNICEF spending, at the current rate, without the need for raising one additional cent.
Table of Key facts from the Audited Financial Statement as of 31 December 2022
Before we start arguing what these 12 billion USD are meant to do and what they are for, let us recall that Decision 2023/21 of the Executive Board requested an informal briefing on …[…]… the decline in revenue, and use of surplus funds to mitigate the decline. I don’t know what caused the Executive Board members to believe that UNICEF revenue was in decline, but crying wolf always helps to raise funds. The requested briefing was held, on 6 December. The official Financial Report simply states that “over the past five years, total UNICEF revenue has grown by 55 per cent”.
Let us look at the evolution of UNICEF surpluses:
- Surpluses (the green line in the graph) are rising faster than UNICEF expenditure (the red line). Twenty years ago, surpluses were 0.8 times the annual expenditure. Ten years ago, surpluses were as large as the annual expenditure. In 2022, surpluses are 1.45 times the annual expenditure.
- In other words: Over the past ten years, annual expenditure has grown by just over 100 per cent, and surpluses have grown by 200 per cent.
- The ‘expenditure rate’ as measured by expenditure over revenue, has declined from 87 per cent in 2003 to about 82 per cent in 2022. No wonder the surpluses are through the roof.
- There is always talk about some ominous unfunded staff benefits - such as the subsidies to the after-service-health-insurance that require funds to be set aside. These have already been taken into account, and constitute part of the total liabilities (6.6 billion USD) that have been deducted from the total assets (19 billion USD).
- Surpluses include the unspent portions of multi-year donations (or any donation not meant to be fully spent by 31 December). Multi-year contributions have been received all the time, and the multi-year contribution received yesterday is being spent today. All other things being equal, multi-year contributions make up a certain part of the surplus, but would not lead to an increase of the surplus over and above the trend in expenditure.
I still don't get it. UNICEF should not be in the business of 'making money'. How do you explain to a poor person - anywhere - that UNICEF is sitting on a pile of money, 12 billion Dollars high?
(All figures taken from official UNICEF reports available on the UNICEF website).
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More Insights from Outside the Bubble, by Detlef Palm
Detlef can be contacted via detlefpalm55@gmail.com
Thank you Detlef for sharing this information... let's hope this will encourage UNICEF to extend benefits to children and their families and make change happen. Sree
ReplyDeleteThank you Detlef. We have been told time and again that there is always shortage funds for humanitarian operations. It is sad and worrisome that UNICEF has accounted this giant amount is being kept in a bank account, the world children from Gaza, DRC, Miyamar, Sudan, South Sudan, Ethiopia, Somalia and Somaliland to give few examples are lacking basic humanitarian needs such as water, nutrition/food, shelter, basic health care etc. Let us all request all UN agencies such as WFP, UNHCR, WHO, UNFPA, UNDP and UNOCHA to tell us how much funds sitting idly in their bank accounts. An amount of 12 billions could suffice the humanitarian needs for at a year (minimum). yours DR. M. W. Dualeh
ReplyDeleteYet the organisation tries to get everything at the lowest possible price, regardless of quality. So it is not only absurd that UNICEF is pilling up money. It is often also a practice that is detrimental to the quality of support that it is supposed to offer to its beneficiaries and clients.
ReplyDeleteThe recording of the Executive Board Meeting, on the (click) UNICEF Financial Report is available here.
ReplyDeleteWorth highlighting:
At 15:30 min. The comptroller refers to the surplus of 2022 without any reference to the accumulated surplus. He says that a surplus would typically consist of funds received late in the year, which are meant to be spent in subsequent years. He does not explain how surplus can accumulate.
At 16:20 min. A powerpoint on the accumulated surplus appears for 2 seconds, but is not referred to or about.
At 28:10 min. The delegate from Belgium requests more details on the accumulated surplus, of more than 11 billion.
At 40:00 min. The comptroller talks about the annual surplus of 2022, but not the accumulated surplus as requested by the Belgium delegate. He does not explain how UNICEF could possibly accumulate a surplus of 12 billion Dollar, if any surpluses from previous are said to be spent in subsequent years. He assures donors that their money is being utilized, but he does not explain (as requested) what UNICEF plans to do with its accumulated surplus.