UNESCO. General Conference; 36th; 36 C/5: volume 1: Draft ...

in-depth analysis of the increases in staff costs and in goods and services that have already occurred,
and also based on the most precise information available concerning the evolution of salary indices
and consumer prices for the remaining period of the current biennium. Further details of the
elements used to calculate the recosting estimates are outlined in paragraphs T012-T015 below, and
the estimates are shown in the table following paragraph T015.
▪ Anticipated cost increases in 2012-2013
As mentioned above, the recosted budget base (Parts I-IV) is estimated at the price level as at
31 December 2011 and does not take into account the cost increases that will inevitably arise
during the course of the 2012-2013 biennium. Therefore, Anticipated Cost Increases in 2012-
2013 have been projected in accordance with the best information available to the Secretariat
concerning salary indices and consumer prices. These estimates are shown separately under Part V
of the budget, the use of which is subject to the prior approval by the Executive Board. It should be
noted that since the afore-mentioned recosting is a re-evaluation only of the budget base for the
35 C/5 Approved as adjusted, there is no double-counting of statutory increases or inflation related
to 2010-2011. Projections of statutory and other increases anticipated for 2012-2013 are explained
in paragraphs T016-T020 below.
(iii)
Application of staff cost budget standards
Global staff costs figures have been calculated by determining the average cost by grade of the
established posts, multiplied by the number of posts under each grade. These staff cost estimates
are based on the most recent scales for base salaries and related benefits published by the ICSC
(International Civil Service Commission) and an analysis of actual expenditure trends observed
during the current biennium, and thus take into account statutory increases in staff costs in 2010-
2011. The standard costs applied to the 36 C/5 thus corresponds to the costs foreseen as at 31
December 2011, and do not take into account the statutory increases that may arise in the course
of the 2012-2013 biennium. Such increases will be covered by Part V of the budget as mentioned
above, subject to the prior approval by the Executive Board.
(iv)
Adjustment for staff turnover and recruitment delays
In keeping with past practice, the calculation of overall staff costs is adjusted to take into account
anticipated staff turnover and recruitment delays (i.e. “vacancy rate” or “lapse factor”). In this
regard, the standard costs are reduced by a 3% vacancy rate (lapse factor), meaning that the staff
costs as a whole are budgeted at 97% of the estimated costs. The application of the lapse factor is not
modulated by category of posts.
(v)
Distribution of staff costs by main line of action
Although the Appropriation Resolution for the 36 C/5 presents the staff costs budget for Part II.A
at the Major Programme level, more detailed information is provided for the staff cost budgets
at the Main-line-of-action level in Annex I and in the relevant chapters related to each Major
Programme under Part II.A.
(vi)
Presentation of extrabudgetary resources
Only those extrabudgetary resources that have already been received or have been firmly committed
in signed donor agreements at the time of preparing the Draft 36 C/5 are included in this document.
Extrabudgetary funds are shown at the level of the Main-line-of-action to which they are attached and
36 C/5 – Technical note and budgeting methodologies
6