## ppea2022055

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### Executive summary — FY22 context and priorities
- FY22 marked by "significant ongoing change and uncertainty in the external environment."
- Fund priorities:
  - Supporting members through the uneven recovery from the Covid-related crisis.
  - Laying groundwork for challenges from climate change, digitalization, fragility, and inequality.
  - Responding, toward year-end, to new challenges from the War in Ukraine and rising inflation.
- Operated within a real flat budget envelope with continued reprioritization and reallocation of resources.

### Budget utilization and outturn
- Net administrative budget: $1.214 billion.
- Utilization: 97 percent of the $1.214 billion net administrative budget.
- Total net administrative expenditures: $1.180 billion.
- Execution of net administrative budget: 97.2 percent ($1,180 million) in FY22, versus 94.9 percent in FY21 and 99.7 percent in FY19.
- No general carryforward resources used in FY22; available funds transferable for potential use in FY23 up to the exceptional limit of 7 percent of the net administrative general budget limit approved by the Board in April 2022.
- Externally financed spending: $141 million.
- Utilization of externally financed budget: 67 percent (up from 58 percent in FY21).

### Drivers of spending changes
- Higher utilization (97 percent in FY22 versus 95 percent in FY21) reflected:
  - Stepped-up hiring of temporary crisis-related resources.
  - Modest resumption of business travel and initial pick up in travel after extended Covid-related interruption.
  - Investments to support the hybrid work model and a phased return to office.
- Capital spending rose, driven by direct IT-intense capital expenditures and cloud capital equivalent spending; about 2/3 of capital spending focused on IT-intensive projects.
- Outturn figures do not reflect sustained levels of uncompensated work from staff overtime and unused leave.

### Staffing, crisis positions, and funding of crisis response
- Funding for crisis-linked staffing: $59.3 million, mainly temporary positions.
- Crisis positions: 135 positions (up from 128 in FY21).
  - 74 providing direct country support in Area Departments, FAD, LEG, MCM, SPR.
  - 49 for review and policy/analytical work on crisis issues (SPR, LEG, FIN, COM, RES).
  - 12 for SEC/Risk/Small offices.
- Sources of funding for FY22 crisis needs: repurposed travel and events budgets, broader reprioritization/savings, and carryforward/other (including underspend by the Offices of the Executive Board and Independent Evaluation Office).

### Travel, receipts, and externally financed budgets
- Repurposing of resources: 50 percent of business and seminar travel resources and 70 percent of event resources repurposed for crisis needs.
- Actual travel spending at end-year: 14 percent (well below repurposing assumptions).
- Business travel (FY22): about $11 million.
- Number of in-person missions (FY22): 1,021.
- Settlement travel increased by 72 percent year-on-year.
- Evacuation travel declined by 62 percent year-on-year.
- FY22 receipts: $166 million (about 17 percent higher than FY21, and 32 percent below budget).
  - Trust fund management fees about $1.5 million below expectations.
  - Concordia revenues increased by about $2 million.
  - Parking receipts remained below budget.
- Total receipts by component (FY22 Outturn highlights):
  - Externally financed capacity development (direct cost only): 141.
  - General receipts: 25.
  - Administrative and trust fund management fees: 10.
  - Publications income: 0.
  - Fund-sponsored sharing agreements: 3.
  - HQ2 lease: 1.
  - Concordia: 2.
  - Parking: 0.

### Workload and staff time indicators
- Average annual leave in FY22: about 23 days (up from about 13 days in FY21).
- Average overtime fell marginally from 12.3 percent to about 12.0 percent.
- About 86 percent of the average Fund-wide overtime was uncompensated.
- Outturn figures do not capture sustained uncompensated work from staff overtime and unused leave.

### Outputs and spending by output area (gross administrative spending)
- Country operations: 40 percent of spending.
- Corporate functions: 28 percent of spending.
- Multilateral surveillance and global cooperation (MSGS): 13 percent.
- Fund policies and analytical work (PA): 8 percent.
- Fund governance and membership and Fund finances (FGF): 11 percent.
- Capacity Development (CD): 25 percent of direct delivery (where noted).
- Overall direct country engagement increased by 7 percent year-on-year, driven by resumption of FSAP and Article IV consultations and a rise in upper credit tranche (UCT) lending.
- Spending on analytical and policy work increased, reflecting Fund-wide efforts and approval of enhanced strategies on climate change, digitalization, and fragility.

### Country operations — detailed changes
- Country operations increased 7 percent ($33 million) year-on-year.
- Financial support:
  - Board-approved operations in FY22: 18 UCT and 5 emergency operations (relative to 22 UCT and 43 emergency operations in FY21).
  - Total since pandemic start: 132 operations (84 emergency and 48 UCT).
  - Spending on UCT operations rose by 9 percent relative to FY21 ($13 million).
  - Spending on emergency financial assistance declined by 27 percent ($18 million).
  - Expenditures associated with non-financial programs increased by 16 percent ($6 million).
- Bilateral surveillance:
  - Spending increased by 28 percent ($37 million) relative to FY21, mainly due to a pick-up in Article IV consultations and FSAPs.
  - Article IV consultations completed in FY22: 126 (compared to 36 in FY21).
  - FSAPs completed in FY22: 4 (compared to 2 in FY21 and 9 in FY19).
  - Other bilateral surveillance activities (including AML/CFT and standards and codes work) declined by 9 percent to $37 million.

### Strategic adjustments and future focus
- Approved multi-year strategies for climate change, digital money, and engagement with fragile and conflict-affected states (FCS).
- Work on macrofinancial surveillance and inclusion/gender; formal strategy on gender approved in July 2023.
- Board approved an augmentation as part of the FY23-25 Medium-Term Budget to support work on members’ structural transformation.
- Going forward: remain nimble amid high economic uncertainty; focus resources on emergency needs (pandemic, war, inflation) while addressing longer-term global challenges and supporting members’ structural transformation, including targeted augmentation of budget resources over the next three years.
- Future budgets to support Fund modernization and pivot to hybrid work model.

*Prepared by an Office of Budget and Planning team; Executive Summary dated July 26, 2022.*

### Box 3 — Estimating Fund Outputs: methodology updates and presentation changes
- Travel expenditures excluded from output volume comparability (as in FY21).
- "Support" relabeled to "Corporate functions" to clarify department roles.
- Central account expenses excluded from corporate functions presentation for FY22; use during the year was distributed across output areas where relevant.
- OBP working with HRD, FIN, ICD, ITD and budget community on process and systems updates ahead of broader budget modernization.
- Allocation algorithm updated for Fund-wide activities/overheads and CD chargebacks; effects include:
  - Increased spending allocated to bilateral surveillance and lending.
  - Decline in Fund-financed CD equivalent to just over 1 percentage point of the overall budget.
  - No effect on budget aggregates underlying Board decisions, spending controls, or IMF02-related expenditures.
- CD presentation: Fund-financed CD data split across all Fund output categories for the first time.
- Note: All data in the report based on the updated methodology; past reports not directly comparable.

### Capacity Development (CD) — spending and receipts
- Total CD spending: $242 million (increase 1 percent).
- Fund-financed CD spending: $101 million (42 percent of total); decrease of 15 percent compared to FY21.
  - Changes reflect higher-than-expected staff time on externally funded CD with chargebacks $5.5 million or 13 percent higher than projected and likely impact of transitional time-reporting changes.
- Externally funded CD spending: $141 million (58 percent of total); 17 percent increase compared to FY21.
  - Represents 67 percent of the $210 million approved envelope and 85 percent of the budget planning assumption ($165 million).
- Underspend impacted receipts from Trust Fund Management Fees.

### Average country spending and country group breakdowns
- Average country spending: $1.9 million (increase 21 percent compared to FY21).
- Excluding externally funded CD: $1.5 million (increase 11 percent).
- Surveillance countries average spending: $1.1 million (increase 51 percent relative to FY21).
- Intensive surveillance (near program): average spending increased by 15 percent.
- Countries with Fund arrangements: average spending increased by 27 percent.
- Spending by income level:
  - G7 average spending: $2.3 million (increase 26 percent).
  - Emerging economies: 24 percent increase.
  - Low-income developing countries: 21 percent increase.
  - G20 economies: smallest growth at 17 percent.

### Multilateral surveillance, policy, analytical work, and governance
- Multilateral surveillance spending: $90 million (decrease 1 percent versus FY21).
  - Decline driven by suspension of the COVID-19 policy response tracker (as of July 2021) and a sharp decline in COVID-19 special policy notes.
- Global cooperation and standards spending: decreased by 4 percent in FY22.
- Policy work spending: rose by 4 percent (Board approved Comprehensive Surveillance Review and FSAP Review early in FY22).
- Analytical work: rose by 8 percent ($4 million), focused on pandemic impact, debt vulnerabilities, governance, and priority areas promoting more inclusive, digital, and greener growth.
- Governance and finances: spending rose by $9 million (7 percent) with approval of a $650 billion SDR allocation and work on the 16th General Review of Quotas.

### Corporate functions and central account
- Corporate functions spending broadly in line with FY21 while addressing pandemic-related health and safety needs and pivot to hybrid work.
- Center (central account) total spending: $28 million.
  - Includes overseas personnel expenses, other travel-related costs, promotions and other personnel-related spending.
- Receipts in central account: $3 million (Fund-sponsored sharing agreements, publication sales, other).

### Spending by department and functional groups
- Departments with largest increases: AFR, FAD, and MCM (linked to crisis needs and fragile states focus).
- Functional non-CD departments: increased spending on governance and finance, policy, and analytical work.
- CD departments: higher spending broad-based reflecting increased externally funded CD, analytical products, tool development, and support to bilateral surveillance.
- Support departments (HRD, ITD, CSF): bulk of corporate functions spending; broadly stable versus FY21.
- OMD/Small Offices: broadly stable spending.
- OED/IEO: spending in line with last year; IEO focused on Fund response to the pandemic.

### Priority topics and topical spending (FY22)
- Climate Change:
  - Estimated direct spending: $30 million (a $2 million increase from FY21).
  - Work: climate strategy, international policy coordination, analytics, expanded FSAP and Article IV coverage, CMAP, climate-related CD including a climate module in the public investment management assessment, and a framework for green public financial management.
- Digital Money:
  - Estimated spending: $11 million (up from $4 million in FY21).
  - Work: CD on CBDC, bilateral and multilateral CD, policy/analytical work across functional departments.
- Financial Surveillance:
  - FY22 spending estimated at $85 million (up by $2 million).
  - Focus: monitoring rising financial vulnerabilities from the pandemic and spillovers from the war in Ukraine; advising on policy responses through bilateral surveillance.
- Fragile and Conflict-affected States (FCS):
  - Spending on 42 FCS countries increased to $95 million in FY22 (excluding resources in other topical priority areas) from $89 million in FY21.
  - Non-CD spending: $67 million (almost 57 percent associated with Fund lending).
  - CD spending (mostly externally financed): about $28 million.
  - Area Departments channeled more than half of resources to fragile states (mostly AFR, APD, and MCD).
  - Board approved IMF’s Strategy for Fragile and Conflict-Affected States in March 2022.
- Inclusion and Gender:
  - Spending excluding resources in other priority areas: $18 million.
  - Work: country analysis of pandemic impacts, labor markets, inequality, social spending, and preparation of gender mainstreaming strategy and implementation tools.
- Debt:
  - Spending estimated at $50 million (versus $43 million last year).
  - Work: debt vulnerabilities, debt transparency, debt management capacity, Arrears Policy review, guidance on debt limits, Sovereign Risk and Debt Sustainability Framework, and G-20 Common Framework context.
- Governance/Corruption:
  - Spending estimated at $23 million (down $1 million from last year).
  - Focus: addressing vulnerabilities in member countries, transparency and accountability in lending operations, and Implementation of Governance Measures in Pandemic-Related Spending.

### Spending by inputs — personnel and budget aggregates
- Total personnel spending: $1,106 million (about $31 million above the overall structural budget; $44 million excluding externally funded positions).
- Year-end vacancy rates:
  - Overall vacancy rate fell to about 0.9 percent (27 vacancies) compared to 4.1 percent (120 vacancies) in FY21 and roughly zero percent pre-crisis.
  - Across economics departments, vacancy rate fell to zero from 4.0 percent in FY21.
- Spending on externally financed personnel increased by $16 million in real terms relative to FY21:
  - 22 percent increase in reimbursement for staff time.
  - 41 percent increase in externally funded contractual support.
- Selected budget table figures (FY22 outturn unless otherwise noted):
  - Gross expenditures (total): 1,249 / 210 / 1,460 and comparative line 1,251 / 211 / 1,462.
  - Personnel (one line): 938 / 137 / 1,074 and another line 982 / 124 / 1,106.
  - Travel (one line): 81 / 53 / 134 and another line 24 / 2 / 26 (utilization percent noted as 19.5).
  - Buildings and other expenses: 218 / 21 / 239 and another line 200 / 15 / 214 (utilization percent noted as 89.8).
  - Receipts: -36 / -210 / -246 and another line -25 / -141 / -166 (utilization percent noted as 67.6).
  - Net expenditures: 1,214 / 0 / 1,214 and another line 1,180 / 0 / 1,180 (utilization percent noted as 97.2).
  - Total net available resources lines: 1,269 and 1,323 with outturns 1,152 and 1,180 (utilization percents 90.8 and 89.1).

### Deflator and personnel dynamics (Section 17)
- FY22 budget deflator: 2.3 percent (set based on projected inflation in January of the prior fiscal year).
- Actual inflation in FY22: 6.2 percent.
- Deflator methodology: starting in FY21, based on U.S. CPI data underlying the published January WEO update.
- Staff totals (headcount; FY20 / FY21 / FY22; difference FY21-22):
  - Total: 3,912 / 3,981 / 4,174; Difference FY21-22 193.
  - Fund-financed: 3,485 / 3,578 / 3,710; Difference FY21-22 131.
    - Regular and term: 2,886 / 2,928 / 2,984; Difference FY21-22 56.
    - Expert and contractual: 599 / 651 / 726; Difference FY21-22 75.
  - Externally financed: 427 / 402 / 465; Difference FY21-22 62.
    - Regular and term: 96 / 94 / 114; Difference FY21-22 21.
    - Expert and contractual: 330 / 309 / 350; Difference FY21-22 41.
- On an FTE basis (average over the full year), vacancy rates decreased to 2.5 percent in FY22.
- Externally financed staff and contractuals increased significantly, reflecting ramp up in CD delivery.
- Total personnel spending increased by about 3.5 percent; share of salaries and benefits relative to total outturn remained stable.

### Travel (FY22) — missions and department/regional breakdowns
- Business travel pick-up but remained well below pre-crisis levels at about $11 million.
- In-person missions by region (FY22): AFR 299; APD 104; EUR 238; MCD 93; WHD 287 (total 1,021).
- By department type (FY22 in-person missions): Area 224; CD Functional 602; Non-CD Functional 86; Support and Governance 109.
- Funding source for FY22 in-person missions: Fund-financed 507; Externally financed 515.

### Buildings, security, and other services
- Spending on building operations and other services remained 9 percent below budget.
- Drivers of underspend: reduced building maintenance and goods and services due to lower occupancy; slower phasing in of facilities management vendor; lower Annual/Spring Meeting spending.
- IT spending below budget reflected a one-off accounting change related to cloud-capital equivalent mechanism implementation.
- Security spending FY22: $38.8 million (decrease of $4 million relative to FY21), reaching pre-pandemic levels.
  - Composition: HQ security, IT security, Field security, Business continuity (trends reported in figures).
  - Reduced field security and evacuation costs offset by higher HQ security spending driven largely by Covid-19 health and safety protocols.

### Capital spending overview and FY22 specifics
- Total appropriated capital funds between FY20-22 available in FY22: $186 million (Facilities $98 million; IT-intensive $88 million), including Cloud Capital Equivalent ($9.5 million).
- FY22 spending totaled $90 million: approximately $21 million in facilities and $69 million in IT-intensive capital spending (including $60 million in direct spending and $9 million in cloud-related licenses).
- Remaining funds to carry over to FY23: about $88 million.
- Summary (selected lines):
  - Total: FY21 Spending 78; FY22 Approved 79; FY22 Total Available 186; FY22 Outturn 90; FY22 Utilization 48; FY23 Carry Over 88.
  - Facilities: FY21 Spending 28; FY22 Approved 24; FY22 Total Available 98; FY22 Outturn 21; FY22 Utilization 21; FY23 Carry Over 69.
  - IT-Intensive: FY21 Spending 50; FY22 Approved 56; FY22 Total Available 88; FY22 Outturn 69; FY22 Utilization 78; FY23 Carry Over 19.
  - Cloud Capital Equivalent: FY21 Spending 0; FY22 Approved 10; FY22 Total Available 10; FY22 Outturn 9; FY22 Utilization 96; FY23 Carry Over 0.

### Facilities capital (FY22)
- FY22 facilities spending: $21 million outturn; utilization 21 percent of available funds.
- FY22 facilities spending $7 million (about 25 percent) below FY21.
- Expenditures focused on building-lifecycle updates, hybrid work needs, office reconfiguration, and piloting collaboration workspaces.
- HQ1 Renewal closeout completed; remaining $16 million budget (including $13 million in reserves) to be returned in early FY23.
- About $54 million in unspent funding available in FY23, largely allocated to lifecycle replacement projects.
- Approximately $8 million in funding expired under three-year appropriation rules.

### IT-intensive capital expenditures (FY22)
- FY22 IT-intensive spending: $69 million (including $60 million direct spending and $9 million cloud-related licenses); utilization 78 percent.
- FY22 IT-intensive spending $19 million higher (38 percent) relative to FY21.
- Within overall IT capital expenditure of $60 million, 60 percent ($36 million) supported transformational modernization projects.
- Key modernization project outturns (Total Approved / Total Spent thru FY22 / FY22 Outturn):
  - Total IT-Intensive Capital Spending: 265.1 / 162.5 / 60.4.
  - Key Modernization Projects (and pre-reqs): 167.19 / 113.96 / 36.14.
  - 1HR: 69.60 / 54.39 / 13.00.
  - CDMAP: 19.10 / 18.85 / 5.12.
  - iDATA: 23.50 / 7.83 / 7.37.
  - Integrated Digital Workplace: 12.78 / 5.46 / 1.10.
  - New Document Management (Nexus): 23.98 / 14.81 / 6.24.
  - Pre-requisite/foundational projects: 18.23 / 12.62 / 3.32.
  - New Investments: 43.29 / 20.69 / 9.67.
  - Infrastructure end-of-life: 54.7 / 27.8 / 14.5.
- Selected project notes:
  - 1HR ($13 million in FY22): replacement of Human Capital Management System; foundational HR system and processes completed; OIA-led Independent Assessment discussed by the Board in mid-July.
  - CDMAP ($5.1 million in FY22): harmonized CD management; closed out in early June 2022 largely on budget; delivers $3.4 million in capturable budget savings annually in steady state.
  - iData ($7.4 million in FY22): modernizing economic data management platform; expected completion in Q3 FY24; migration/testing for CPI and WEO completed; program faces schedule risks due to some implementation partner developers located in Ukraine.
  - Nexus ($6.2 million in FY22): replacement of document management system; expected completion in FY23; phased releases in Nov 2021, summer 2022, and Q3 FY23.
  - iDW-related projects ($1 million in FY22): collaboration module delivered $0.4 million in capturable budget savings annually; Intranet relaunched Feb 2022; two projects paused to slow implementation pace.
- Other IT investments: new investments $9.7 million ($8.5 million in FY21); lifecycle replacements $14 million including PCs, mobile devices, home office equipment ($6.8 million) and remote office networks ($2.3 million).
- Cloud Capital Equivalent (CCE): cloud license spending in FY22 was $9.1 million; OBP, FIN, and ITD updated systems for CCE use and reporting; procedures established for CCE budget formulation, execution, and monitoring.

### Annex I — technical concepts and methodologies (selected)
- Financial year (t): May 1(t-1) to April 30(t). Example: FY22 = May 1, 2021 to April 30, 2022.
- Administrative budget accounting: Gross - Receipts = Net. Total Available Resources = Net + Carryforward.
- Carryforward (CF): rights to spend beyond 12 months; CF formula: CF_t = min(U_t, x B_t) where U_t = underspend in current FY (B_t + CF_{t-1} – E_t), B_t = net administrative budget in current FY, CF_{t-1} = carryforward from previous FY, E_t = net expenditures in current FY, x = ratio limit of CF.
- CF limit history: rose to 6 percent after GFC, reverted to 3 percent in FY12, Board approved increase from 3 to 5 percent in 2020 and to 8 percent in 2021 in response to COVID-related travel restrictions and crisis needs. CF limits reduced to 7 percent for the general budget and 5 percent for IEO in 2022.
- Capital budget: three-year availability; unspent appropriations lapse thereafter.
- CCE: sub-category within capital budget for cloud subscriptions per Board-approved treatment in April 2021.
- Budget process: starts from Managing Director’s Global Policy Agenda, IMFC Communiqué, and Board Work Program; CCB and Board briefings link CD and budget process.

### Annex II — CD highlights
- CD activities measured in FTEs recovered to above pre-pandemic levels.
- Total CD spending around $242 million, broadly unchanged from FY21, with shift from Fund-financed to externally financed CD.
- CD spending remained below budget: outturn below projection mainly due to slower resumption of travel and hiring of field experts.
- Externally financed spending grew to $141 million, some $70 million below the budgeted envelope; led to $4.9 million underrun in related management fees.
- Personnel chargebacks $5.5 million above projection.
- Regional and topical compositions consistent with previous years: AFR region and fiscal topics dominated delivery.
- FCS represented 22 percent of total CD delivery (27 percent when considering only single-country delivery).
- By end of FY22: 27 active digital money projects and 30 active climate projects.

### Annex Table 2.1 — CD spending on direct delivery by core workstreams (share of total delivery spending, in percent)
- Public finances: Single Country 48.3; Multi-country 4.5; Total 52.9
- Domestic Revenue Mobilization: Single Country 25.2; Multi-country 2.3; Total 27.5
- Macro-Fiscal Policies: Single Country 2.8; Multi-country 0.6; Total 3.4
- Public Financial Management and Expenditure Policy: Single Country 20.3; Multi-country 1.7; Total 22.0
- Monetary and financial systems: Single Country 15.3; Multi-country 3.1; Total 18.4
- Central Bank Operations and Market Development: Single Country 5.8; Multi-country 1.5; Total 7.3
- Financial Sector Stability: Single Country 9.4; Multi-country 1.7; Total 11.1
- Macroeconomic Frameworks: Single Country 5.3; Multi-country 6.5; Total 11.9
- Macroeconomic Statistics: Single Country 9.8; Multi-country 2.2; Total 12.0
- Legal frameworks: Single Country 2.9; Multi-country 0.8; Total 3.6
- Financial Integrity and Financial/Fiscal Law Reform: Single Country 2.9; Multi-country 0.8; Total 3.6
- Other: Single Country 0.2; Multi-country 0.8; Total 0.9

### CD delivery modalities and training key figures
- Number of engagements with CD recipients (virtual, field visit, or hybrid): over 2,500.
- Share of CD spending delivered by staff or experts (including resident advisors) as traditional single-country technical assistance: 84 percent.
- Training activities/workshops: around 16 percent of total CD delivery.
- ICD largest provider for training by spending, followed by FAD.
- Regional shares of training participants: AFR highest, then APD and MCD.
- Share of participants from FCS: about 13 percent.
- Share of training delivered through RTCs and RTACs: Over 60 percent.
- Asynchronous (self-paced) online learning in FY22: 37 percent of training.
- Government officials who successfully completed an online course in FY22: 8,474.
- Cumulative reach of online program since launch: around 140,000 participants.

### Training participation (FY18–22 totals)
- Total participants by FY: FY18 16,595; FY19 16,991; FY20 17,726; FY21 14,684; FY22 23,109.
- Asynchronous participants (FY18–22): FY18 4,856; FY19 4,414; FY20 7,930; FY21 5,069; FY22 8,474.
- Synchronous participants (FY18–22): FY18 11,739; FY19 12,577; FY20 9,796; FY21 9,615; FY22 14,635.
- Asynchronous share of total (in percent): FY18 29; FY19 26; FY20 45; FY21 35; FY22 37.
- Synchronous share of total (in percent): FY18 71; FY19 74; FY20 55; FY21 65; FY22 63.

### External financing and partner contributions (FY20–22)
- Partner contributions by vehicle (Contribution in Millions of U.S. dollars; Share in Percent):
  - Multi-partner: Direct 222; In-Kind 8; Total 230; Share 56.
  - Thematic (and country) Trust Funds: Direct 90; In-Kind -; Total 90; Share 39.
  - Regional Technical Assistance Centers: Direct 108; In-Kind -; Total 108; Share 47.
  - Regional Training Centers: Direct 24; In-Kind 8; Total 32; Share 14.
  - Bilateral: Direct 183; In-Kind -; Total 183; Share 44.
  - Total: Direct 406; In-Kind 8; Total 413; Share 100.
- Recipient member contributions to RTACs steady at close to 30 percent.

### CCCDI and CD funding needs
- CCCDI commitments to date: about $39 million.
- Number of CCCDI-financed CD activities ongoing: more than 40.
- Additional external resources required to deliver new CD envisaged by Fund’s transformational strategies:
  - Increase by a cumulative $43 million over FY23–25.
  - Thereafter require about $19 million annually in a steady state.

### Funding and operational risk management for CD
- Fundraising risks mitigated by broad partnerships and diversified partnership base.
- Longer and more strategic partnerships provide greater funding certainty over the medium term.
- Potential to broaden engagement with existing partners beyond traditional agencies, relevant for FCS, climate, digital money, and gender.
- Operational risks reduced by securing financing upfront before CD delivery.
- All CD projects/programs include built-in flexibility for adjustments in case of funding shortfalls.

### Annex Table 3.8 — Departmental business travel and seminar expenditures, FY17–22 (selected figures)
- Total travel/seminar expenditures: FY17 68; FY18 110; FY19 116; FY20 86; FY21 2; FY22 12.
- Transportation by year: FY17 40; FY18 65; FY19 68; FY20 51; FY21 1; FY22 8.
- Per diem by year: FY17 27; FY18 45; FY19 48; FY20 35; FY21 0; FY22 4.
- By financing (Fund-financed / Externally financed examples for FY22): Fund-financed 11; Externally financed 2.
- By department (FY22 examples): Area 6; CD functional 2; Other functional 1; Support and Governance 2; OED and IEO 2.
- Memorandum item — In percent of total gross expenditures: FY17 5; FY18 8; FY19 9; FY20 6; FY21 0; FY22 1.

_International Monetary Fund — FY2022 — Output Cost Estimates and Budget Outturn (OBP, PeopleSoft, TIMS, Departmental submissions, ITD, CSF, TRACES, IBBIS, CDMAP)._

### EXECUTIVE SUMMARY

### EXECUTIVE SUMMARY

### FY22 context and priorities
- FY22 was marked by "significant ongoing change and uncertainty in the external environment."
- The Fund focused on: supporting members through the uneven recovery from the Covid-related crisis; laying groundwork for challenges from climate change, digitalization, fragility, and inequality; and responding, toward year-end, to new challenges from the War in Ukraine and rising inflation.
- The Fund operated within a real flat budget envelope and continued reprioritization and reallocation of resources to meet these needs.

### Budget utilization and outturn
- 97 percent utilization of the $1.214 billion net administrative budget.
- $1.180 billion total net administrative expenditures.
- Execution of the net administrative budget: 97.2 percent ($1,180 million) in FY22, versus 94.9 percent in FY21 and 99.7 percent in FY19.
- No general carryforward resources were used in FY22, enabling transfer of available funds for potential use in FY23 up to the exceptional limit of 7 percent of the net administrative general budget limit approved by the Board in April 2022.

### Drivers of spending changes
- Higher utilization (97 percent in FY22 versus 95 percent in FY21) reflected:
  - Stepped-up hiring of temporary crisis-related resources.
  - A modest resumption of business travel and initial pick up in travel after extended Covid-related interruption.
  - Investments to support the hybrid work model and a phased return to office.
- Capital spending rose, driven by direct IT-intense capital expenditures and cloud capital equivalent spending; about 2/3 of capital spending focused on IT-intensive projects.
- Outturn figures do not reflect sustained levels of uncompensated work from staff overtime and unused leave.

### Staffing, crisis positions, and funding of crisis response
- Funding of $59.3 million, mainly for temporary, crisis-linked staffing (135 positions, up from 128 in FY21).
- Distribution of crisis positions:
  - 74 providing direct country support in Area Departments, FAD, LEG, MCM, SPR.
  - 49 for review and policy/analytical work on crisis issues (SPR, LEG, FIN, COM, RES).
  - 12 for SEC/Risk/Small offices.
- Sources of funding for FY22 crisis needs included repurposing travel and events budgets, broader reprioritization/savings, and carryforward/other (including underspend by the Offices of the Executive Board and Independent Evaluation Office).

### Travel and externally financed budgets
- 50 percent of business and seminar travel resources and 70 percent of event resources were repurposed for crisis needs.
- Actual travel spending at end-year was 14 percent (well below repurposing assumptions), given sustained travel restrictions until late in the FY.
- Externally financed spending: $141 million.
- 67 percent utilization of externally financed budget, up from 58 percent in FY21, but with continued impact from travel restrictions.

### Workload and staff time indicators
- Average annual leave in FY22 rose to about 23 days from about 13 days in FY21.
- Average overtime fell marginally from 12.3 percent to about 12.0 percent.
- About 86 percent of the average Fund-wide overtime was uncompensated.
- Outturn figures do not capture sustained uncompensated work from staff overtime and unused leave.

### Outputs and spending by output area
- Overall direct country engagement increased by 7 percent year-on-year, driven by resumption of FSAP and Article IV consultations and a rise in upper credit tranche (UCT) lending.
- Spending by output area (gross administrative spending):
  - Country operations: 40 percent of spending.
  - Corporate functions: 28 percent of spending.
  - Multilateral surveillance and global cooperation (MSGS): 13 percent.
  - Fund policies and analytical work (PA): 8 percent.
  - Fund governance and membership and Fund finances (FGF): 11 percent.
  - Capacity Development (CD): 25 percent of direct delivery (where noted).
- Spending on analytical and policy work increased, reflecting Fund-wide efforts and approval of enhanced strategies on climate change, digitalization, and fragility.

### Country operations — detailed changes
- Country operations increased 7 percent ($33 million) year-on-year.
- Financial support:
  - Continued shift to traditional (UCT) lending: Board approved 18 UCT and 5 emergency operations in FY22, relative to 22 UCT and 43 emergency operations in FY21.
  - A total of 132 operations (84 emergency and 48 UCT) have been approved since the beginning of the pandemic.
  - Spending on UCT operations rose by 9 percent relative to FY21 ($13 million).
  - Spending on emergency financial assistance declined by 27 percent ($18 million).
  - Expenditures associated to non-financial programs increased by 16 percent ($6 million).
- Bilateral surveillance:
  - Spending on bilateral surveillance increased by 28 percent ($37 million) relative to FY21, mainly due to a pick-up in Article IV consultations and FSAPs (many virtual or hybrid).
  - In FY22, 126 Article IV consultations were completed compared to 36 in FY21.
  - Four FSAPs were completed in FY22, compared to two in FY21 (and 9 in FY19).
  - Other bilateral surveillance activities, including AML/CFT and standards and codes work, declined by 9 percent to $37 million.

### Strategic adjustments and future focus
- The Fund clarified its role through approval of multi-year strategies for climate change, digital money, and engagement with fragile and conflict-affected states (FCS).
- Work on macrofinancial surveillance and inclusion/gender took place, with a formal strategy on gender approved in July 2023.
- The Board approved an augmentation as part of the FY23-25 Medium-Term Budget to support Fund work on members’ structural transformation.
- Going forward, the Fund will remain nimble amid persistent high economic uncertainty, continuing to focus resources on emergency needs (pandemic, war, inflation, etc.) while addressing longer-term global challenges and supporting members’ structural transformation, including targeted augmentation of budget resources over the next three years.
- Future budgets will also support the Fund’s modernization efforts and the pivot to the hybrid work model.

*Prepared by an Office of Budget and Planning team; Executive Summary dated July 26, 2022.*

### Box 3. Estimating Fund Outputs

### Box 3. Estimating Fund Outputs

### Methodology updates and presentation changes
- Travel: Travel expenditures were excluded to support comparability on the volume of activities (as in FY21).
- Corporate functions: The output category previously labeled “Support” was relabeled to “Corporate functions” to clarify distinction between support departments (i.e., HRD, CSF, ITD, and small offices) and corporate functions that may sit within other departments.
- Central account: Expenses held in the central account (buffers/contingencies and intra-year personnel costs such as promotions) were excluded from the corporate functions presentation for FY22; their use during the year, where relevant, was distributed across output areas.
- Supporting processes and systems: OBP is working with HRD, FIN, ICD, ITD and the budget community on targeted process and systems updates as a precursor to broader budget modernization due to increasing manual intervention required by current systems.
- Allocation algorithm: The methodology for allocating Fund-wide activities and overheads, as well as CD chargebacks, was updated. CD-related changes aim to strengthen data on CD expenditures and to align overall and CDMAP-related data on direct project costs. Effects include:
  - Increased spending allocated to bilateral surveillance and lending.
  - A decline in Fund-financed CD equivalent to just over 1 percentage point of the overall budget.
  - No effect on budget aggregates that underlie Board decisions, spending controls, or IMF02-related expenditures.
- CD Presentation: Overall Fund-financed CD data is split across all Fund output categories for the first time, aligning it with presentation of bilateral surveillance and lending.
- Note: All data in the report are based on the updated methodology; output estimates in past reports are not directly comparable.

### Capacity development (CD) and receipts
- Total CD spending increased by 1 percent to $242 million.
- Fund-financed CD spending:
  - $101 million (42 percent of total).
  - Decrease of 15 percent compared to FY21.
  - Changes reflect higher-than-expected staff time on externally funded CD with chargebacks $5.5 million or 13 percent higher than projected and likely impact of transitional time-reporting changes.
- Externally funded CD spending:
  - $141 million (58 percent of total).
  - 17 percent increase compared to FY21.
  - Represents 67 percent of the $210 million approved envelope and 85 percent of the budget planning assumption ($165 million).
  - The underspend had knock-on effects to receipts from the Trust Fund Management Fees.

### Average country spending and country group breakdowns
- Average country spending increased by 21 percent to $1.9 million compared to FY21.
- Excluding externally funded CD, average country spending increased 11 percent to $1.5 million.
- Spending on surveillance countries averaged $1.1 million, an increase of 51 percent relative to FY21.
- For countries with intensive surveillance (near program), average spending increased by 15 percent.
- For countries with Fund arrangements, average spending increased by 27 percent.
- Spending by income level:
  - G7 average spending increased by 26 percent to $2.3 million.
  - Emerging economies: 24 percent increase.
  - Low-income developing countries: 21 percent increase.
- G20 economies reported the smallest growth (17 percent) in average spending.

### Multilateral surveillance, global cooperation, policy, and analytical work
- Multilateral surveillance:
  - Spending decreased by 1 percent vis-à-vis FY21 to $90 million.
  - Decline mainly driven by the suspension of the COVID-19 policy response tracker (as of July 2021) and a sharp decline in COVID-19 special policy notes.
- Global cooperation and standards:
  - Spending decreased by 4 percent in FY22.
- Policy focus:
  - Early in FY22, the Board approved the Comprehensive Surveillance Review and the FSAP Review.
  - Spending on policy work rose by 4 percent.
- Analytical work:
  - Rose by 8 percent ($4 million).
  - Focused on pandemic impact, debt vulnerabilities, governance, and priority areas promoting more inclusive, digital, and greener growth.
- Governance and finances:
  - Approval of a $650 billion SDR allocation and further work on the 16th General Review of Quotas.
  - Spending on governance and finances rose by $9 million (7 percent increase).

### Corporate functions and central account
- Corporate functions spending remained broadly in line with FY21 while the Fund:
  - Addressed pandemic-related health and safety needs.
  - Pivoted to a post-crisis hybrid work environment.
  - Reinforced control and risk mitigation measures.
  - Continued work to update the HR service delivery model.
  - Fitted HQ buildings and IT services to enable seamless remote work.
  - Continued modernization projects; resources previously held in a separate central account were excluded for FY22 reporting purposes.
- Center (central account) total spending: $28 million.
  - Includes overseas personnel expenses (allowances for staff and experts assigned to overseas offices, settlement travel, and installation of new Resident Representative posts), other travel-related costs, promotions and other personnel-related spending.
  - Receipts of $3 million included Fund-sponsored sharing agreements, publication sales, and other.

### Spending by department and functional groups
- Overall focus: Fund resources continued to focus on core delivery of member services.
- Departments with largest increases: AFR, FAD, and MCM (linked to crisis needs, increased focus on fragile and conflict-affected states, digital money, and a gradual pick up of CD delivery).
- Functional non-CD departments: Increased spending related to governance and finance, policy, and analytical work.
- CD Departments: Higher spending broad-based, reflecting:
  - Increase in externally funded CD.
  - Increased analytical products (including practice notes).
  - Tool development (including to support virtual CD delivery).
  - Support to bilateral surveillance.
- Support Departments (including HRD, ITD and CSF): Comprised bulk of corporate functions spending; spending remained broadly stable compared to FY21.
- Other:
  - OMD/Small Offices: Spending broadly stable.
  - OED/IEO: Spending in line with last year; Executive Board steered institution through ongoing change; IEO focused on Fund response to the pandemic.

### Priority topics and topical spending (FY22)
- Augmentation-supported priority topics:
  - Climate Change:
    - Estimated direct spending: $30 million in FY22, a $2 million increase from FY21.
    - Work focused on climate strategy, international policy coordination, analytics, expanded FSAP and Article IV coverage (mitigation, adaptation, transition risks), Climate-Macro Assessment Program (CMAP), expanding climate-related CD including a climate module in the public investment management assessment, and a framework for green public financial management.
  - Digital Money:
    - Estimated spending: $11 million (up from $4 million in FY21).
    - Focused on CD on central bank digital currencies (CBDC), bilateral and multilateral CD, and policy/analytical work across functional departments.
  - Financial Surveillance:
    - FY22 spending estimated at $85 million, up by $2 million.
    - Focused on monitoring rising financial vulnerabilities from the pandemic and spillovers from the war in Ukraine, and advising on policy response through bilateral surveillance.
- Fragile and Conflict-affected States (FCS):
  - Spending on the 42 FCS countries increased to $95 million in FY22 (excluding resources covered in topical priority areas) from $89 million in FY21.
  - Non-CD spending reached $67 million; almost 57 percent associated with Fund lending.
  - CD spending (mostly externally financed) remained about $28 million.
  - Area Departments channeled more than half of resources to fragile states (mostly AFR, APD, and MCD).
  - The Board approved the IMF’s Strategy for Fragile and Conflict-Affected States in March 2022.
- Inclusion and Gender:
  - Spending excluding resources in other priority areas totaled $18 million.
  - Work centered on country analysis of pandemic impacts, labor markets, inequality, social spending, and preparation of the Fund’s gender mainstreaming strategy and implementation tools.
- Other priority topics:
  - Debt:
    - Spending estimated at $50 million versus $43 million last year.
    - Work focused on debt vulnerabilities, debt transparency, debt management capacity, Arrears Policy review, guidance on debt limits, and Sovereign Risk and Debt Sustainability Framework; some efforts in context of the G-20 Common Framework.
  - Governance/Corruption:
    - Spending estimated at $23 million in FY22, down $1 million from last year.
    - Focus on addressing vulnerabilities in member countries, transparency and accountability in lending operations, and Implementation of Governance Measures in Pandemic-Related Spending.

### Spending by inputs — Personnel and budget aggregates
- Total personnel spending: $1,106 million.
  - About $31 million above the overall structural budget ($44 million excluding externally funded positions), reflecting transitional and crisis-related positions.
- Year-end vacancy rates:
  - Overall vacancy rate fell to about 0.9 percent (27 vacancies) compared to 4.1 percent (120 vacancies) in FY21 and roughly zero percent pre-crisis.
  - Across economics departments, vacancy rate fell to zero from 4.0 percent in FY21.
- Spending on externally financed personnel increased by $16 million in real terms relative to FY21:
  - 22 percent increase in reimbursement for staff time.
  - 41 percent increase in externally funded contractual support.
- Selected budget table figures (FY22 outturn unless otherwise noted):
  - Gross expenditures (total): 1,249 / 210 / 1,460 (Fund-financed / Donor-financed / Total) in one reported line and 1,251 / 211 / 1,462 in another FY21 comparison line.
  - Personnel (one line): 938 / 137 / 1,074 (Fund-financed / Donor-financed / Total) and another line 982 / 124 / 1,106.
  - Travel (one line): 81 / 53 / 134 and another line 24 / 2 / 26 (utilization percent noted as 19.5 in the latter).
  - Buildings and other expenses: 218 / 21 / 239 and another line 200 / 15 / 214 (utilization percent noted as 89.8).
  - Receipts: -36 / -210 / -246 and another line -25 / -141 / -166 (utilization percent noted as 67.6).
  - Net expenditures: 1,214 / 0 / 1,214 and another line 1,180 / 0 / 1,180 (utilization percent noted as 97.2).
  - Total net available resources lines: 1,269 and 1,323 with outturns 1,152 and 1,180 (utilization percents 90.8 and 89.1).
- Notes on table:
  - Sources: OBP and FIN.
  - Footnotes: 1/ Based on donor receipts. For FY21, a $5.3 million adjustment reflects reconciliation between actual and standard costs for some donor-funded personnel expenditures and the impact of Covid-19 related measures on benefits. 2/ General, OED and IEO contingencies. 3/ OED/IEO underspend above their carryforward limits.
- Vacancy rate by department type figures indicate changes between FY21 and FY22 with area, functional non-CD, functional CD, and support department groupings showing shifts (chart referenced).

*Source: IMF — Box 3. Estimating Fund Outputs (FY2022 — Output Cost Estimates and Budget Outturn).*

### 17. Deflator and Personnel Dynamics. The FY22 budget deflator (2.3 percent), set based on

### 17. Deflator and Personnel Dynamics. The FY22 budget deflator (2.3 percent), set based on

### Deflator and inflation environment
- The FY22 budget deflator was set at 2.3 percent, based on projected inflation in January of the prior fiscal year.
- Actual inflation in FY22 was 6.2 percent, reflecting the emergence of increasing inflation over the course of the year.
- Uncertainty on price movements continues in FY23, presenting challenges for budgetary management that are being closely monitored.
- Methodology: Starting in FY21, the Fund deflator is based on U.S. CPI data underlying the published January WEO update.

### Personnel dynamics and staffing levels
- Staff totals (headcount basis shown as FY20, FY21, FY22; difference FY21-22)
  - Total: FY20 3,912; FY21 3,981; FY22 4,174; Difference FY21-22 193
  - Fund-financed: FY20 3,485; FY21 3,578; FY22 3,710; Difference FY21-22 131
    - Regular and term: FY20 2,886; FY21 2,928; FY22 2,984; Difference FY21-22 56
    - Expert and contractual: FY20 599; FY21 651; FY22 726; Difference FY21-22 75
  - Externally financed: FY20 427; FY21 402; FY22 465; Difference FY21-22 62
    - Regular and term: FY20 96; FY21 94; FY22 114; Difference FY21-22 21
    - Expert and contractual: FY20 330; FY21 309; FY22 350; Difference FY21-22 41
- On an FTE basis (average over the full year), vacancy rates decreased to 2.5 percent in FY22.
- Externally financed staff and contractuals increased significantly, reflecting a ramp up in CD delivery.
- Total personnel spending increased by about 3.5 percent, while the share of salaries and benefits relative to total outturn remained stable.
- Note on definitions: Fund- and externally financed experts (including short-term), contractuals, visiting scholars, secretarial support, and other. Excluding local employees in the field.

### Travel (FY22)
- Business travel began to pick up in FY22 but remained well below pre-crisis levels at about $11 million.
- Number of in-person missions rose to 1,021 in FY22.
- Settlement travel increased by 72 percent year-on-year.
- Evacuation travel declined by 62 percent year-on-year, with continued need for evacuations from Afghanistan and Ukraine.
- Regional in-person mission counts (FY22): AFR 299, APD 104, EUR 238, MCD 93, WHD 287 (table shows total 1,021).
- By department type FY22 in-person missions: Area 224, CD Functional 602, Non-CD Functional 86, Support and Governance 109.
- Funding source FY22 in-person missions: Fund-financed 507; Externally financed 515.

### Buildings and other services
- Spending on building operations and other services remained 9 percent below budget.
- Drivers of underspend: reduced spending on building maintenance and goods and services due to lower building occupancy; slower phasing in of the facilities management vendor; lower Annual/Spring Meeting spending.
- IT spending below budget reflected a one-off accounting change related to the implementation of the cloud-capital equivalent mechanism.
- Building Occupancy and category outturns (selected indicators show variation across FY20 outturn, FY21 outturn, FY22 Budget, FY22 Outturn; figure indicates e.g., Building Occupancy FY22 Outturn 36, IT 36, Contractual Services 21, Subscriptions/Printing 19, Comms., Supplies, Other 24 — preserve values as shown in figure).

### Security-related spending
- Fund-wide security spending in FY22 was $38.8 million, a decrease of $4 million relative to FY21, reaching pre-pandemic levels.
- Composition FY22 (figure categories): HQ security, IT security, Field security, Business continuity (FY19-FY22 trends reported in figure).
- Reduced field security needs and evacuation costs were offset by higher HQ security spending driven largely by Covid-19 health and safety protocols (e.g., testing and contact tracing).
- Business Continuity saw a marginal decrease reflecting a reduction in surge support.
- IT security cost decreases largely reflected CCE-related accounting changes.

### Receipts (FY22)
- FY22 receipts were $166 million, about 17 percent higher than FY21, and 32 percent below budget.
- Changes mainly reflect externally financed CD receipts, reflecting a modest resumption of travel and the related impact on hiring short-term experts.
- Trust fund management fees were about $1.5 million below expectations, based on a projected $165 million in spending on externally funded CD versus the $141 million outturn.
- Concordia revenues increased by about $2 million, reflecting higher occupancy and partial resumption of travel but have not recovered to pre-pandemic levels.
- Parking receipts remained below budget given the delayed return to office.
- Receipts table highlights (FY19-FY22 totals and components): Total receipts FY19 214; FY20 199; FY21 142; FY22 Outturn 166. Externally financed capacity development (direct cost only): FY19 178; FY20 168; FY21 118; FY22 Outturn 141. General receipts FY22 Outturn 25. Administrative and trust fund management fees FY22 Outturn 10. Publications income FY22 Outturn 0. Fund-sponsored sharing agreements FY22 Outturn 3. HQ2 lease FY22 Outturn 1. Concordia FY22 Outturn 2. Parking FY22 Outturn 0. Memorandum item: CD Outturn assumed for planning 165.

### Capital spending overview (FY20-22 and FY22 specifics)
- Total appropriated capital funds between FY20-22 available in FY22: $186 million (Facilities $98 million; IT-intensive $88 million), including Cloud Capital Equivalent ($9.5 million) investment.
- FY22 spending totaled $90 million: approximately $21 million in facilities and $69 million in IT-intensive capital spending (including $60 million in direct spending and $9 million in cloud-related licenses).
- About $88 million in remaining funds will carry over to FY23.
- Summary FY21 Spending / FY22 Approved / FY22 Total Available / FY22 Outturn / FY22 Utilization (%) / FY23 Carry Over:
  - Total: FY21 Spending 78; FY22 Approved 79; FY22 Total Available 186; FY22 Outturn 90; FY22 Utilization 48; FY23 Carry Over 88
  - Facilities: FY21 Spending 28; FY22 Approved 24; FY22 Total Available 98; FY22 Outturn 21; FY22 Utilization 21; FY23 Carry Over 69
  - Building: FY21 Spending 26; FY22 Approved 24; FY22 Total Available 83; FY22 Outturn 22; FY22 Utilization 26; FY23 Carry Over 54
  - HQ1 Renewal: FY21 Spending 2; FY22 Approved 0; FY22 Total Available 15; FY22 Outturn -1; FY22 Utilization -5; FY23 Carry Over 16
  - IT-Intensive: FY21 Spending 50; FY22 Approved 56; FY22 Total Available 88; FY22 Outturn 69; FY22 Utilization 78; FY23 Carry Over 19
  - Capital Investments: FY21 Spending 50; FY22 Approved 46; FY22 Total Available 79; FY22 Outturn 60; FY22 Utilization 76; FY23 Carry Over 19
  - Cloud Capital Equivalent: FY21 Spending 0; FY22 Approved 10; FY22 Total Available 10; FY22 Outturn 9; FY22 Utilization 96; FY23 Carry Over 0

### Facilities capital (FY22)
- FY22 facilities spending was $7 million (about 25 percent) below FY21, with utilization of 21 percent of available funds (vs 26 percent in FY21).
- Expenditures focused on building-lifecycle updates, hybrid work needs (including equipping conference and meeting rooms with enhanced hybrid-enabled audio-visual capabilities), office reconfiguration to accommodate staff growth, and piloting collaboration workspaces.
- Delays in office furniture replacement and other HQ1 lifecycle projects (e.g., chillers, generators, sidewalks) account for the largest gap between available funds and actual spending.
- Closeout activities on the HQ1 Renewal project were completed, with the remaining $16 million budget (including $13 million in reserves) to be returned in early FY23.
- About $54 million in unspent funding is available in FY23, largely allocated to lifecycle replacement projects including furniture and other HQ1 building systems projects that experienced pandemic-related delays.
- Approximately $8 million in funding expired under the three-year appropriation rules, about half of which was due to a pause in office furniture replacements, which will resume when hybrid work needs are better understood.

### IT-intensive capital expenditures (FY22)
- FY22 IT-intensive spending was $19 million higher (38 percent) relative to FY21, with utilization of 78 percent versus 60 percent in FY21.
- The increase is driven by direct IT-intensive capital spending ($10 million higher than FY21) and the introduction of the cloud capital equivalent ($9 million).
- Within overall IT capital expenditure of $60 million, 60 percent ($36 million) supported the implementation of the transformational modernization projects.
- Key modernization project outturns (Total Approved / Total Spent in Previous Years (thru FY22) / FY22 Outturn):
  - Total IT-Intensive Capital Spending: 265.1 / 162.5 / 60.4
  - Key Modernization Projects (and pre-reqs): 167.19 / 113.96 / 36.14
  - 1HR: 69.60 / 54.39 / 13.00
  - CDMAP: 19.10 / 18.85 / 5.12
  - iDATA: 23.50 / 7.83 / 7.37
  - Integrated Digital Workplace: 12.78 / 5.46 / 1.10
  - New Document Management: 23.98 / 14.81 / 6.24
  - Pre-requisite/foundational projects: 18.23 / 12.62 / 3.32
  - New Investments: 43.29 / 20.69 / 9.67
  - Infrastructure end-of-life: 54.7 / 27.8 / 14.5
- Selected project notes:
  - 1HR ($13 million in FY22): Formal 1HR project replaces the Fund’s Human Capital Management System; foundational HR system and processes completed; project to close later this year; concurrent OIA-led Independent Assessment discussed by the Board in mid-July. Reforms related to the 5-year review of the SRP were deployed in May 2022 in Peoplesoft. A first follow-up capital project, related to implementation of CCBR pension reforms, is expected shortly.
  - CDMAP ($5.1 million in FY22): Focused on harmonized CD management and administration; closed out in early June 2022 largely on budget; all releases live; long-term support model operational; project will deliver $3.4 million in capturable budget savings annually in steady state.
  - iData ($7.4 million in FY22): Focused on modernizing the Fund’s economic data management platform; expected to complete in Q3 FY24; migration and testing for CPI and WEO completed; current work on Common Surveillance Database (CSD) and other data products; program faces risks of schedule disruption as some implementation partner developers are located in Ukraine; business continuity plan in place; no disruptions anticipated at this point.
  - Nexus ($6.2 million in FY22): Replacement of the Fund’s document management system; expected completion in FY23; first modest release deployed November 2021; second small release expected in summer 2022; third and final release expected in Q3 FY23.
  - iDW-related projects ($1 million in FY22): Collaboration module completed and delivered $0.4 million in capturable budget savings annually; Intranet platform relaunched in February 2022 with foundational phase due to close in first half of FY23; work on document workflow tools scoping continued; two projects paused to slow pace of implementation.
- Other IT investments: New investment spending $9.7 million ($8.5 million in FY21). Major items included Core Banking system (iFin) upgrade and integrated training solution. Lifecycle replacements spending $14 million, including PCs and mobile devices and home office equipment for hybrid work ($6.8 million) and remote office networks ($2.3 million).
- Cloud Capital Equivalent (CCE): Cloud license spending in FY22 was $9.1 million, on par with estimates. In FY22, OBP, FIN, and ITD updated systems to enable use of, and reporting on, CCE budget and expenses. Procedures were established specifying eligible expenses, roles and responsibilities, and detailed steps for CCE budget formulation, execution, and monitoring, consistent with recommendations by the OIA.

### Annex I: Technical concepts and methodologies (selected)
- Financial year (t): May 1(t-1) to April 30(t). Example: FY22 = May 1, 2021 to April 30, 2022.
- Administrative budget accounting: Gross (total spending envelope) - Receipts (donor funding + revenue) = Net (spending that needs funding). Total Available Resources = Net + Carryforward.
- Carryforward (CF): Right to spend budget allocations beyond the normal 12-month period. General CF limit history: rose to 6 percent following the GFC, reverted to 3 percent in FY12, Board approved increase from 3 to 5 percent in 2020 and to 8 percent in 2021 in response to COVID-related travel restrictions and crisis needs. CF limits were reduced to 7 percent for the general budget and 5 percent for IEO in 2022. OED CF limit for each office: maximum of 20 percent of the approved budget or the dollar equivalent of two Advisor FTE positions. OED central carryforward discontinued effective FY21. CF formula: CF_t = min(U_t, x B_t) where U_t = underspend in current FY (B_t + CF_{t-1} – E_t), B_t = net administrative budget in current FY, CF_{t-1} = carryforward from previous FY, E_t = net expenditures in current FY, x = ratio limit of CF.
- Capital budget: Used to finance IT-intensive capital investments and building improvements and repairs. Capital budgets available for three years; unspent appropriations lapse thereafter.
- CCE: Sub-category within capital budget for cloud subscription costs per Board-approved budgetary treatment in April 2021; responds to migration from purchase/build and maintain model to cloud-hosted subscription model which would reduce capital spending and increase administrative spending.
- Budget process: Starts from Managing Director’s Global Policy Agenda, IMFC Communiqué, and Board Work Program; Board reviews income and expenditure position, staff compensation, and capital budget. CCB and Board briefing on CD priorities link CD and budget process.

### Annex II: Capacity Development (CD) highlights
- CD activities measured in FTEs recovered to above pre-pandemic levels despite challenging environment; spending broadly unchanged from last year.
- Total CD spending around $242 million, about the same level as in FY21, with a shift from Fund-financed to externally financed CD. Overall, CD represents about a quarter of Fund outputs.
- CD spending remained below budget: outturn below projection mainly due to slower resumption of travel and related impact on hiring of field experts. Externally financed spending grew to $141 million, some $70 million below the budgeted envelope, leading to a $4.9 million underrun in related management fees.
- Higher-than-expected delivery led to personnel chargebacks $5.5 million above projection. Fund-financed spending declined to $101 million partly due to higher than projected chargebacks and likely transitional impact of time-reporting changes.
- Regional and topical compositions largely consistent with previous years: AFR region and fiscal topics dominated delivery. Fragile and Conflict-affected States (FCS) represented 22 percent of total CD delivery (share increases to 27 percent when considering only single-country delivery).
- By end of FY22 there were 27 active digital money projects and 30 active climate projects.

*Source: OBP, PeopleSoft, TIMS, Departmental submissions, ITD, CSF, TRACES, IBBIS, CDMAP as cited in the FY2022—OUTPUT COST ESTIMATES AND BUDGET OUTTURN content unit.*

### Annex Table 2.1. CD Spending on Direct Delivery by Core Workstreams, FY22

### Annex Table 2.1. CD Spending on Direct Delivery by Core Workstreams, FY22

### CD spending by core workstream (share of total delivery spending, in percent)
- Public finances: Single Country 48.3; Multi-country 4.5; Total 52.9
- Domestic Revenue Mobilization: Single Country 25.2; Multi-country 2.3; Total 27.5
- Macro-Fiscal Policies: Single Country 2.8; Multi-country 0.6; Total 3.4
- Public Financial Management and Expenditure Policy: Single Country 20.3; Multi-country 1.7; Total 22.0
- Monetary and financial systems: Single Country 15.3; Multi-country 3.1; Total 18.4
- Central Bank Operations and Market Development: Single Country 5.8; Multi-country 1.5; Total 7.3
- Financial Sector Stability: Single Country 9.4; Multi-country 1.7; Total 11.1
- Macroeconomic Frameworks: Single Country 5.3; Multi-country 6.5; Total 11.9
- Macroeconomic Statistics: Single Country 9.8; Multi-country 2.2; Total 12.0
- Legal frameworks: Single Country 2.9; Multi-country 0.8; Total 3.6
- Financial Integrity and Financial/Fiscal Law Reform: Single Country 2.9; Multi-country 0.8; Total 3.6
- Other: Single Country 0.2; Multi-country 0.8; Total 0.9

### CD delivery modalities and training (key figures and findings)
- Number of engagements with CD recipients (virtual, field visit, or hybrid): over 2,500
- Share of CD spending consisting of delivery conducted by staff or experts (including resident advisors) in the field or from duty station as traditional single-country technical assistance: 84 percent
- Remaining direct delivery spending covered delivery of training activities, most of which in a multi-country context
- Training activities and workshops represented around 16 percent of total CD delivery
- ICD is the largest provider for training in terms of spending, followed by FAD
- Regional shares of training participants: AFR region has the highest share of participants, followed closely by APD and MCD
- Share of participants from fragile and conflict-affected situations (FCS): about 13 percent
- Share of training delivered through RTCs and RTACs: Over 60 percent
- Asynchronous (self-paced) online learning in FY22: 37 percent of training
- Number of government officials who successfully completed an online course in FY22: 8,474
- Cumulative reach of the online program since launch: around 140,000 participants from the general public

### External financing and partner contributions (FY20–22 patterns and totals)
- Overview: Fundraising for IMF CD recovered in FY21-22 from the pandemic-related low of FY20 but remains below medium-term targets; liquidity balances adequate in most CD vehicles
- External support channels: multi-partner vehicles (regional CD centers, thematic and country funds), bilateral programs, and a few country-managed regional training programs
- Partner contributions by vehicle (Contribution in Millions of U.S. dollars; Share in Percent):
  - Multi-partner: Direct 222; In-Kind 8; Total 230; Share 56
  - Thematic (and country) Trust Funds: Direct 90; In-Kind -; Total 90; Share 39
  - Regional Technical Assistance Centers: Direct 108; In-Kind -; Total 108; Share 47
  - Regional Training Centers: Direct 24; In-Kind 8; Total 32; Share 14
  - Bilateral: Direct 183; In-Kind -; Total 183; Share 44
  - Total: Direct 406; In-Kind 8; Total 413; Share 100
- Leading partners for RTACs and thematic funds account for a significant share of contributions; concentration is high in RTACs and TTFs
- Recipient member contributions to RTACs have been steady at close to 30 percent

### COVID-19 Crisis CD Initiative (CCCDI) and funding needs
- CCCDI commitments to date: about $39 million
- Number of CCCDI-financed CD activities ongoing: more than 40
- CCCDI governance noted as agile and effective for flexible allocation to urgent pandemic-related CD needs
- Additional external resources required to deliver new CD envisaged by Fund’s transformational strategies:
  - Increase by a cumulative $43 million over the next three years to accommodate phased implementation in FY23–25
  - Thereafter require about $19 million annually in a steady state

### Funding and operational risk management
- Fundraising risks mitigated by broad and sustained partnerships and a diversified partnership base to reduce dependence on large contributors
- Signing of longer and more strategic partnerships has provided greater funding certainty over the medium term
- Potential to broaden engagement with existing partners beyond traditional agencies, particularly relevant for FCS, climate, digital money, and gender
- Operational risks reduced by securing financing upfront before CD delivery
- All CD projects/programs include built-in flexibility to allow adjustments in case of funding shortfalls

_International Monetary Fund — Annex Table 2.1 and accompanying FY22 CD delivery and financing notes (from the FY2022—Output Cost Estimates and Budget Outturn)._

### Annex Table 3.8. Departmental Business Travel and Seminar Expenditures, FY17-22

### Annex Table 3.8. Departmental Business Travel and Seminar Expenditures, FY17-22

### By type of cost
- Total (FY17): 68
- Total (FY18): 110
- Total (FY19) 1/: 116
- Total (FY20): 86
- Total (FY21): 2
- Total (FY22): 12

- Transportation (FY17): 40
- Transportation (FY18): 65
- Transportation (FY19) 1/: 68
- Transportation (FY20): 51
- Transportation (FY21): 1
- Transportation (FY22): 8

- Per diem (FY17): 27
- Per diem (FY18): 45
- Per diem (FY19) 1/: 48
- Per diem (FY20): 35
- Per diem (FY21): 0
- Per diem (FY22): 4

### By type of financing
- Total (FY17): 68
- Total (FY18): 110
- Total (FY19) 1/: 116
- Total (FY20): 86
- Total (FY21): 2
- Total (FY22): 12

- Fund-financed (FY17): 47
- Fund-financed (FY18): 65
- Fund-financed (FY19) 1/: 70
- Fund-financed (FY20): 50
- Fund-financed (FY21): 2
- Fund-financed (FY22): 11

- Externally financed (FY17): 20
- Externally financed (FY18): 45
- Externally financed (FY19) 1/: 46
- Externally financed (FY20): 36
- Externally financed (FY21): 0
- Externally financed (FY22): 2

### By department
- Total (FY17): 68
- Total (FY18): 110
- Total (FY19) 1/: 116
- Total (FY20): 86
- Total (FY21): 2
- Total (FY22): 12

- Area (FY17): 27
- Area (FY18): 30
- Area (FY19) 1/: 29
- Area (FY20): 22
- Area (FY21): 1
- Area (FY22): 6

- CD functional (FY17): 25
- CD functional (FY18): 63
- CD functional (FY19) 1/: 65
- CD functional (FY20): 50
- CD functional (FY21): 0
- CD functional (FY22): 2

- Other functional (FY17): 5
- Other functional (FY18): 6
- Other functional (FY19) 1/: 6
- Other functional (FY20): 4
- Other functional (FY21): 0
- Other functional (FY22): 1

- Support and Governance (FY17): 5
- Support and Governance (FY18): 5
- Support and Governance (FY19) 1/: 9
- Support and Governance (FY20): 5
- Support and Governance (FY21): 0
- Support and Governance (FY22): 2

- OED and IEO (FY17): 5
- OED and IEO (FY18): 5
- OED and IEO (FY19) 1/: 7
- OED and IEO (FY20): 5
- OED and IEO (FY21): 0
- OED and IEO (FY22): 2

### Memorandum item
- In percent of total gross expenditures (FY17): 5
- In percent of total gross expenditures (FY18): 8
- In percent of total gross expenditures (FY19) 1/: 9
- In percent of total gross expenditures (FY20): 6
- In percent of total gross expenditures (FY21): 0
- In percent of total gross expenditures (FY22): 1

*Source: OBP.*

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_Source: https://www.imf.org/-/media/files/publications/pp/2022/english/ppea2022055.pdf_