## _080315

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### EXECUTIVE SUMMARY — Overview
- The administrative expenditure outturn for FY2015 reflects continued budget discipline as new demands and initiatives were accommodated through reprioritization and better use of existing resources within an unchanged envelope.
- Overall budget utilization rate: 98 percent.
- Output shifts:
  - Increased resources: multilateral surveillance, oversight of the global systems, capacity development.
  - Declined moderately: bilateral surveillance and lending.
- Capital expenditures mainly reflected the major renovation of the HQ1 building and improvements in information technology infrastructure and security.
- Date on document: August 3, 2015.

### Budget execution — key findings
- Total net spending reduced the underspend to $17 million, $2 million lower than in FY2014.
- Remaining underspend (2 percent) reflected:
  - frictional vacancies;
  - lower-than-anticipated spending on travel;
  - offset partly by higher security costs—both IT and physical;
  - lower receipts from the decision in FY2015 to rescind the policy of charging for Fund data;
  - shortfall in trust fund management fees.
- Underspend was about $10 million higher than projected during the year mainly due to lower-than-projected spending on travel.
- Year-end consumption: 98 percent of available resources in the net administrative budget.

### Personnel
- Personnel spending increased by 4 percent in FY2015.
- Reallocation and utilization:
  - Official contingency reduced;
  - Small reallocation of remaining unused central margins allowed for some 20 new staff positions (risk management, internal economics training, IT security, administration of capacity development).
- Vacancy rates:
  - Fund-wide average vacancy rate: 1.7 percent (down from 2.2 percent in FY2014).
  - Functional non-TA departments vacancy rate: 0.4 percent.
  - Functional TA departments vacancy rate: 1.4 percent.
  - Support departments experienced highest vacancy rates, though vacant positions dropped considerably toward year-end.
- Staffing flexibility: Departments increased use of flexibility to hire temporarily above budgeted A-level staff FTE positions while staying within dollar limits.
- Workload and leave:
  - FY2015 overtime rate (moving average): 11.9 percent (down from a peak of 14 percent in FY2013).
  - Annual leave usage: average of 23 days (unchanged).
- Merit increase: 1.3 percent for FY2015 (compared with 1.5 percent in the previous year).

### Travel
- Travel spending declined by 4 percent in FY2015; both Fund- and externally-financed travel were below budget.
- Business travel volume: up slightly from FY2014.
  - Decline in Fund-financed trips offset by increase in donor-financed travel (particularly to Asia and Sub-Saharan Africa).
- Average airfare costs: 8.4 percent lower per trip than in FY2014.
- Average cost per mile: $0.39 per mile (decrease of 4.8 percent).
- Advanced ticketing days: 23.7 days (FY2015) from 22.5 days (FY2014) and 18.4 days (FY2012).
- New airline contracts (effective May 2014) increased designated airline service and greater non-stop service from Washington, reducing travel on non-designated airlines.
- Travel metrics (FY2013–15):
  - Number of Missions: 8,306; 8,562; 8,642
  - Mission Nights: 89,245; 94,444; 88,094
  - Persons: 12,131; 12,380; 12,326
- Departmental business travel and seminar expenditures (Millions of U.S. dollars; FY2013–15):
  - Total by type of cost: 108 (FY2013), 105 (FY2014), 102 (FY2015)
  - Transportation: 65, 62, 60
  - Per diem: 43, 42, 42
  - By type of financing: Fund-financed 77, 71, 68; Externally-financed 31, 34, 34

### Buildings and other expenditures
- Spending on buildings and other services: higher than planned but broadly unchanged from FY2014.
- Additional spending mainly on IT, contractual services and telecommunications.
  - Information technology expenses higher than budgeted due to increases in administrative support for IT systems and higher costs related to IT security; an IT cost review was undertaken in FY2015.
  - Contractual services expenditures reflected unforeseen and temporary needs, including offsite facilities for the Annual and Spring Meetings during HQ1 construction and consulting services such as the IT cost review and environmental testing.
  - Communications expenses higher mainly due to increased departmental use of mobile devices and improved services introduced at the end of FY2014.
- Buildings and other expenses multi-year indicators (Millions of U.S. dollars):
  - Total buildings and other expenses: 181 180 190 203 193 204 (table headings span years)
  - Building occupancy: 58 57 58 62 60 61
  - Information technology: 47 47 54 59 57 60

### Receipts and externally-financed activities
- Total receipts increased relative to FY2014 but fell short of planned levels.
- Shortfall drivers:
  - Lower-than-planned externally-financed capacity development activities due to security and health risks in some countries, operational issues, and implementation delays.
  - Decision in FY2015 to provide statistical databases free of charge to the public reduced general receipts.
  - Lower administrative and trust fund management fees tied to the shortfall in externally-financed CD activities.

### Carry forward
- Total unspent funds available to be carried forward from FY2015 to FY2016: $42.5 million.
- Amounts:
  - $13.9 million available for the Offices of Executive Directors (OED) and the Independent Evaluation Office (IEO).
  - $1.9 million distributed to departments as provided for in the carry forward policy.
  - Remainder held in reserve.
- Carry forward limits:
  - Unspent resources of up to 3 percent of the approved budget can be carried forward to the next financial year (limits set higher for OED at 20 percent and IEO at 5 percent).

### Spending by output — overview (ACES methodology)
- ACES allocates gross administrative expenditures to five key outputs: multilateral surveillance, oversight of global systems, bilateral surveillance, lending and capacity development.
- ACES data available for FY2011–15; designed to map at least 95 percent of gross administrative expenditures to a final output (achieved).
- ACES categorizes inputs into labor, travel, and discretionary spending, and includes support and governance costs as intermediate inputs; paper uses “fully-loaded cost” (input, support and governance costs).
- FY2015 high-level patterns:
  - Slight increase: multilateral surveillance, oversight of global systems, and CD activities.
  - Reductions: bilateral surveillance and lending.
  - Spending basis: fully-loaded, Fund-financed and externally financed expenses.

### Multilateral surveillance (FY2013–15)
- FY2015 spending increased somewhat in line with institutional objectives.
- Additional resources devoted to:
  - Tools to prevent and resolve systemic crisis (cross-cutting analysis by area departments; macro-critical structural issues).
  - Regional work including additional work on Regional Economic Outlooks (REO) and interdepartmental regional projects (cross-border supervision in Africa; future of finance in Asia; Islamic finance).
  - General research, World Economic Outlook (WEO), Global Financial Stability Report (GFSR); growth partly due to change in time-recording practices for related outreach activities.
- ACES component labels include: Global economic analysis; Cooperative economic policy solutions; Tools to prevent and resolve systemic crises; Regional approaches to economic stability.

### Oversight of global systems (FY2013–15)
- Total spending increased slightly.
- Increased analytic work on monetary, financial and capital markets issues, including:
  - Managing unwinding of extraordinary monetary support, exchange rate issues, macroprudential policies, global regulatory reforms, strengthening macro-financial analysis, financial inclusion and deepening.
- Increased resources for “role of the Fund” work (Triennial Surveillance Review; governance; quota and SDR issues).
- Partly offset by scaled back development and review work on GRA-related policies and facilities.
- ACES component labels include: Work with FSB and other international bodies; Other work on monetary, financial, and capital markets issues; Statistical information/data, manuals, and methodology; Development and review of Fund policies and facilities (PRGT, GRA); Quota and voice; SDR issues; International Financial Architecture; Data Transparency; Role of the Fund.

### Bilateral surveillance (FY2013–15)
- Spending dropped slightly in FY2015, partly due to fewer FSAPs.
- Resources for Article IV consultations declined slightly while other bilateral surveillance forms (staff visits, consultations with authorities) increased.
- Average spending:
  - Dropped slightly for countries on 24-month cycles.
  - Largely unchanged for intensive and standard surveillance countries.
- FSAP program saw reduced spending due to fewer assessments, including a decrease in mandatory assessments of systemically important financial jurisdictions.
- ACES component labels include: Article IV consultations; Other bilateral surveillance; Financial soundness evaluations - FSAPs/OFCs; Standards and codes evaluations.

### Lending (FY2011–15)
- Resources devoted to lending activities continued to decline.
- Decline reflects:
  - Gradual reduction in number of Fund arrangements from the peak in FY2010–11.
  - Increased focus on crisis prevention.
- Shift to non-financial arrangements partially offset decline (e.g., Staff Monitored Programs (SMPs) and Policy Support Instruments (PSIs)), notably in Africa and the Middle Eastern region.
- ACES component labels include PSIs, PPMs, SMP, Other (near programs, EPAs, EPEs).

### Capacity development (CD) (FY2011–15 and FY2015 specifics)
- CD accounted for 27 percent of total gross spending (Annex II, Table 7).
- Increase in CD over recent years largely due to donor-financed TA.
- Share of CD spending devoted to TA: 83 percent in FY2015.
- After rapid expansion, growth in externally-financed activities started to level off.
- Annex I provides FY2015 outturn and evolution of financing and mode of delivery.

### External funding: donor concentration and vehicles (FY2010–15)
- Top 15 donors contributed $791 million, or 85 percent of total external funding over the last six years.
- Six donors contributed in excess of $50 million during this period: Japan, the European Union, Canada, the United Kingdom, Switzerland, and Kuwait.
- Contribution vehicles: multi-donor vehicles (nine RTACs, four RTCs, eleven topical and country trust funds (TTFs)) and bilateral programs/projects; three regional training programs (RTPs) managed by host countries with Fund staff providing training.
- During current funding cycle, top 10 donors provided 58 percent of their contributions to multi-donor vehicles.
- FY2010–15 contributions (Millions of U.S. dollars; Percent of total):
  - Japan 183 20
  - European Union 132 14
  - Canada 93 10
  - United Kingdom 79 8
  - Switzerland 57 6
  - Kuwait 52 6
  - Australia 33 3
  - Austria 27 3
  - Netherlands 27 3
  - Mauritius 22 2
  - Norway 21 2
  - Germany 21 2
  - Belgium 16 2
  - Singapore 15 2
  - France 11 1
  - Other donors and international institutions 143 15
  - Total 934 100
- CD Vehicles: Top 10 Donor Contributions (Millions of U.S. dollars; Percent of total):
  - Multidonor 403 58
    - of which TTF 88 13
    - RTAC 223 32
    - RTC 92 13
  - Bilateral 292 42
  - Total 694 100
- Donor concentration:
  - Top three donors account for about $320 million, or 67 percent of their external funding.
  - Top three shares by vehicle:
    - Top three for topical and country trust funds: 72 percent.
    - Top three for RTACs: 65 percent (recipient members are expected to contribute).

### Capacity Development volume, delivery, and priorities (FY2011–15)
- CD priorities for FY2015:
  - continue to support crisis countries in Europe;
  - scale up support to Arab countries in transition (ACT) and fragile states;
  - increase assistance on financial sector issues;
  - maintain high level of support to low-income developing countries and small states.
- Governance and planning: two-level prioritization process involving Committee on Capacity Building (CCB) and Area departments’ Regional Strategy Notes (RSNs); Resource Allocation Plan (RAP) determines detailed mission plans.
- TA field delivery (FTEs; FY2011–FY2015 totals and by region):
  - Overall field delivery: 203; 239; 274; 285; 288 (FY2011–FY2015)
  - Regional FTEs (AFR, APD, EUR, MCD, WHD, Multiple regions) show year-by-year figures with FY2015: AFR 113; APD 56; EUR 34; MCD 25; WHD 56; Multiple regions 5
- Funding source (FTEs; FY2011–FY2015):
  - Fund-financed: 50 51 47 53 54
  - Externally-financed: 153 188 227 232 234
  - Total: 203 239 274 285 288
- Donor-financed TA accounted for about 80 percent of TA field delivery in FY2015.
- Topic composition of TA (FTEs; FY2011–FY2015):
  - Fiscal: 97 122 148 150 146
  - Monetary and financial sector: 57 64 63 68 72
  - Statistical: 21 24 32 37 42
  - Legal: 17 16 14 15 12
  - Other: 13 13 16 15 16
- Staff type (FTEs; FY2011–FY2015):
  - Long-term resident experts: 71 84 94 100 97
  - Short-term experts: 80 93 110 116 118
  - HQ-based staff: 53 61 70 69 73
- Delivery by priority areas (FTEs; FY2011–FY2015):
  - Arab Countries in Transition 1/: 10 4 5 7 7
  - Fragile states 2/: 55 65 74 76 78
  - Financial sector: 57 64 63 68 72
  - Low-income developing countries: 87 117 136 140 137
  - Small states 2/: 35 37 44 46 49

### Training: volume, delivery modes, and priorities (FY2011–15)
- Overall training volume (participant weeks): 11,441; 12,546; 12,114; 14,296; 14,358 (FY2011–FY2015).
- Departmental delivery (participant weeks; FY2011–FY2015 highlights): ICD largest contributor with 6,594; 6,912; 6,773; 7,967; 7,914.
- Training by region (participant weeks; FY2011–FY2015 highlights): AFR 2,660; 3,265; 3,306; 3,522; 3,735.
- Training by income group (participant weeks; FY2011–FY2015 totals): Advanced economies 734 750 754 912 858; Emerging and middle-income economies 5,942 6,650 6,209 7,884 7,559; Low-income developing countries 3,871 4,097 4,304 5,267 5,577.
- Venue and course category (participant weeks; FY2011–FY2015):
  - Venues: Regional Training Centers 5,326 5,819 5,924 6,340 5,995; IMF HQ 1,861 2,252 1,565 1,614 1,321; Other training locations 3,459 3,875 4,057 4,811 5,198; Distance learning 796 601 567 200 –; Online learning – – – 1,331 1,843
  - Course categories: Macroeconomic policies 3,760 3,670 3,775 3,518 4,253; Financial sector 2,474 2,778 2,641 2,863 2,804; Macroeconomic statistics 2,328 2,814 2,594 3,088 2,166; Specialized fiscal issues 948 950 1,043 2,297 1,805; Legal issues 49 160 24 41 400 423; Other 1,439 1,732 1,620 2,131 2,907.
- Online learning:
  - Inaugurated in FY2014; grew by 38 percent in FY2015.
  - Average enrollments: 300 participants per online course compared with 30 in traditional face-to-face training.
  - Online training accounts for 13 percent of the Fund’s training in FY2015.
- Training priority area participant weeks (FY2011–FY2015 highlights): Fragile states 1,647 1,711 2,018 2,621 2,591; Low-income developing countries 3,871 4,097 4,304 5,267 5,577.

### Progress toward improved measurement of results and RBM
- CD evaluation framework is being strengthened; institutional approach to evaluation for all CD activities is under development.
- RBM system: Capacity Development Project Outcomes and Results Tracking (CD-PORT):
  - Piloting stage; planned roll-out in the second half of 2015.
  - Expected to be fully operational with all new TA projects captured by January 2016.
  - Expected improvements:
    - Strengthen monitoring of TA delivery and results by integrating TA project and budget management with systematic tracking of TA results.
    - Generate reports on pace of implementation of individual TA programs or projects against verifiable outcome indicators to inform allocation and evaluation.

### Capital investments and IT capital expenditures (FY2015)
- Total capital expenditures: $136 million spent mainly on HQ1 renovation and IT infrastructure, security and corporate and strategic applications.
- Capital table (Capital Expenditures, FY2015, Millions of U.S. dollars) — preserved presentation:
  - Appropriated in FY2015 budget: 22.0     -       0.6           29.8    52.4
  - + Unspent from FY2013 and FY2014 budgets: 19.7     313.1   -           12.8    345.6
  - = Total funds available in FY2015 2/: 41.7     313.1   0.6           42.6    398.0
  - Total expenditures in FY2015: 10.1     95.7     0.3           29.3    135.5
  - Notes: 1/ Includes the Audio Visual program. 2/ Approved capital budget funds are available to projects for three consecutive years. Unspent funds appropriated under the FY2013 capital budget lapsed at the end of FY2015. Unspent HQ1 renewal funds will lapse after April 30, 2018. Unspent Concordia funds appropriated in FY2012 expired at the end of FY2014, with the exception of $0.6 million that was specifically reappropriated to complete the final close out work in FY2015.
- IT capital expenditures by capability (FY2015, Millions of U.S. dollars):
  - IT Infrastructure, Services, and Security: 16.0
  - Finance and Budget: 3.5
  - Data Management & Analysis: 3.0
  - Communication & Relationship Management: 1.8
  - Surveillance: 1.6
  - Capacity Development: 1.1
  - HR Management: 0.9
  - Knowledge Management: 0.5
  - Lending: 0.5
  - Other: 0.4
  - Core: 3.2; Strategic: 5.3; Corporate: 4.8 (aggregate labels shown)
- IT capital objectives:
  - Improve reliability and performance of IT infrastructure and core applications;
  - Strengthen protection of information assets.
- Of the $29 million in IT capital expenditures, over 70 percent was for projects supporting corporate functions and IT infrastructure and security.
- Total IT expenditures remained within IT benchmark:
  - IT benchmark ratio: total IT spending ratio = 9.7 percent, within benchmark range of 9–11 percent.

### Annex I — Capacity Development: donor financing and delivery gaps
- CD spending increased significantly since FY2011 but leveled off in FY2015.
- FY2015 donor-financed budget vs outturn (Millions of U.S. Dollars):
  - FY2012 Outturn: 100; Budget: 107; Difference: 7
  - FY2013 Outturn: 117; Budget: 127; Difference: 10
  - FY2014 Outturn: 124; Budget: 138; Difference: 14
  - FY2015 Outturn: 131; Budget: 154; Difference: 23
  - Note: Outturn and budget exclude administrative fee of 13 percent under the old financing instrument and a trust fund management fee of 7 percent under the new financing instrument. Also excluded are RTC expenses not reflected in IMF accounts.
- FY2015 gap between budgeted and delivered donor-financed activities: $23 million, or 15 percent of the budget.
- Causes of donor-financed delivery shortfall in FY2015:
  - Health and security risks (Ebola affecting Managing Natural Resource Wealth (MNRW) and Tax Policy and Administration (TPA));
  - Security issues (South Sudan);
  - Implementation delays (AML/CFT, EFA);
  - RTAC operational issues and staffing delays (CARTAC, AFRITAC West 2);
  - Late launch or delays in new bilateral programs/projects;
  - Additional time for Framework Administrative Agreement finalization with the European Union.

### Annex II highlights: selected administrative, travel, employment, and capital figures
- Administrative budgets and outturns (Net Budget and Gross Budget) for FY2002–15 are tabulated in Annex II.
- Travel summary (Millions of U.S. dollars; FY2013–15 totals): 108 (FY2013), 105 (FY2014), 102 (FY2015).
- Total Fund employment (Full-time equivalents; FY2013–15):
  - Total Fund employment: 3,455; 3,574; 3,661
  - Regular, fixed term, limited term staff: 2,671; 2,732; 2,784
  - Expert and contractual staff: 784; 841; 877
- Capital expenditures (Millions of U.S. dollars; FY2010–15) provide multi-year appropriations, funds available, expenditures, lapsed funds, and remaining funds across categories including Information Technology, HQ Renewal, Concordia Renovation, and Total Capital Plan.

*Prepared by the Office of Budget and Planning (OBP) team; approved by Daniel Citrin.*

### EXECUTIVE SUMMARY

### EXECUTIVE SUMMARY

### Overview
- The administrative expenditure outturn for FY2015 reflects continued budget discipline as new demands and initiatives were accommodated through reprioritization and better use of existing resources within an unchanged envelope.
- The overall budget utilization rate of 98 percent was achieved through more efficient personnel management practices and effective reallocation of resources from underutilized areas to areas of emerging pressure.
- In outputs, resources allocated to multilateral surveillance, oversight of the global systems and capacity development increased while bilateral surveillance and lending declined moderately, in line with easing of crisis-related work.
- Capital expenditures mainly reflected the major renovation of the HQ1 building and improvements in information technology infrastructure and security.
- Date on document: August 3, 2015.

### Budget execution — key findings
- Total net spending reduced the underspend to $17 million, $2 million lower than in FY2014.
- The remaining 2 percent underspend reflected frictional vacancies and lower-than-anticipated spending on travel, offset partly by higher security costs—both IT and physical—and lower receipts from the decision in FY2015 to rescind the policy of charging for Fund data, and a shortfall in trust fund management fees.
- The underspend was about $10 million higher than projected during the year mainly due to lower-than-projected spending on travel.
- At year-end, 98 percent of available resources in the net administrative budget were consumed.

### Personnel
- Personnel spending increased by 4 percent in FY2015, reflecting a reallocation of resources and higher utilization of Fund-financed personnel budgets.
- A reduction in the official contingency together with a small reallocation of remaining unused central margins allowed for some 20 new staff positions to meet demands in risk management, internal economics training, IT security and administration of capacity development activities.
- Fund-wide average vacancy rate dropped to 1.7 percent from 2.2 percent in FY2014.
- Departments increased use of flexibility to hire temporarily above budgeted A-level staff FTE positions while staying within dollar limits.
- Area and functional departments were practically fully staffed; functional non-TA and functional TA departments had vacancy rates of 0.4 percent and 1.4 percent respectively.
- Support departments continued to experience the highest vacancy rates due in part to longer recruitment times for specialized positions, although the number of vacant positions dropped considerably towards the end of the financial year.
- FY2015 overtime rate (moving average) was 11.9 percent, down from a peak of 14 percent in FY2013; annual leave usage remained unchanged at an average of 23 days.
- The budget space created by turnover provided for a merit increase of 1.3 percent for FY2015 (compared with 1.5 percent in the previous year).

### Travel
- Travel spending declined by 4 percent in FY2015; both Fund- and externally-financed travel were below budget.
- Total business travel volume was up slightly from FY2014, with a decline in Fund-financed trips offset by an increase in donor-financed travel, particularly to Asia and Sub-Saharan Africa.
- Average airfare costs were 8.4 percent lower per trip than in FY2014.
- The average cost per mile decreased by 4.8 percent to $0.39 per mile.
- Advanced ticketing days increased to 23.7 days from 22.5 days in FY2014 (and 18.4 days in FY2012).
- New airline contracts (effective May 2014) increased designated airline service and greater non-stop service from Washington, reducing travel on non-designated airlines.

### Buildings and other expenditures
- Spending on buildings and other services was higher than planned but broadly unchanged from FY2014.
- Additional spending was mainly on IT, contractual services and telecommunications.
  - Information technology expenses were higher than budgeted due mainly to increases in administrative support for IT systems and higher costs related to IT security; an IT cost review was undertaken in FY2015.
  - Contractual services expenditures reflected unforeseen and temporary needs, including offsite facilities for the Annual and Spring Meetings during HQ1 construction and consulting services such as the IT cost review and environmental testing.
  - Communications expenses were higher mainly due to increased departmental use of mobile devices and improved services introduced at the end of FY2014.

### Receipts and externally-financed activities
- Total receipts increased relative to FY2014 but fell short of planned levels.
- The gap was mostly the result of lower-than-planned externally-financed capacity development activities due to security and health risks in some countries, operational issues, and implementation delays.
- The shortfall in general receipts was due to the FY2015 decision to provide statistical databases free of charge to the public and lower administrative and trust fund management fees tied to the shortfall in externally-financed CD activities.

### Carry forward
- Total unspent funds available to be carried forward from FY2015 to FY2016 amount to $42.5 million.
- A total of $13.9 million is available for the Offices of Executive Directors (OED) and the Independent Evaluation Office (IEO).
- The remainder will be held in reserve, with the exception of $1.9 million that has been distributed to departments as provided for in the carry forward policy.
- Note on carry forward limits: Unspent resources of up to 3 percent of the approved budget can be carried forward to the next financial year (limits set higher for OED at 20 percent and IEO at 5 percent).

### Spending by output — overview
- Spending by outputs shows continued focus on helping the membership address global policy challenges and reduce vulnerabilities.
- In FY2015, additional resources were devoted to multilateral surveillance and oversight of global systems.
- This was partially offset by a reduction in spending on bilateral surveillance and lending, consistent with the easing of crisis-related work.
- Capacity development activities continued to increase, but at a slower pace as growth in external financing started to level off.
- Country spending information indicates a continued shift towards a more risk-based resource allocation, consistent with established priorities.

*Prepared by the Office of Budget and Planning (OBP) team; approved by Daniel Citrin.*

### 15.      The composition of spending by outputs reflected the Fund’s continued focus on

### 15.      The composition of spending by outputs reflected the Fund’s continued focus on

### Overview and methodology (ACES)
- The Fund’s response to evolving needs is tracked using estimates from the Analytic Costing and Estimation System (ACES).
- ACES allocates gross administrative expenditures to five key outputs: multilateral surveillance, oversight of global systems, bilateral surveillance, lending and capacity development.
- ACES data is available for FY2011–15. ACES categorizes inputs into labor, travel, and discretionary spending, and includes support and governance costs as intermediate inputs; the paper uses “fully-loaded cost” (input, support and governance costs).
- ACES was designed to map at least 95 percent of gross administrative expenditures to a final output, which has been achieved.

### High-level FY2015 spending patterns
- FY2015 spending showed:
  - A slight increase in multilateral surveillance, oversight of global systems, and CD activities.
  - Reductions in spending on bilateral surveillance and lending, reflecting easing of crisis-related work.
- Fully-loaded, Fund-financed and externally financed expenses are the basis for the spending figures reported.

### Multilateral surveillance (FY2013–15)
- FY2015 spending on multilateral surveillance increased somewhat in line with institutional objectives.
- Additional resources devoted to:
  - Tools to prevent and resolve systemic crisis (cross-cutting analysis by area departments; macro-critical structural issues).
  - Regional work, including additional work on Regional Economic Outlooks (REO) and interdepartmental regional projects (e.g., cross-border supervision in Africa; future of finance in Asia; Islamic finance).
  - General research, World Economic Outlook (WEO), and Global Financial Stability Report (GFSR); growth partly due to a change in time-recording practices for related outreach activities.
- ACES component breakdown labels shown include: Global economic analysis; Cooperative economic policy solutions; Tools to prevent and resolve systemic crises; Regional approaches to economic stability.

### Oversight of global systems (FY2013–15)
- Total spending increased slightly.
- Increased analytic work on monetary, financial and capital markets issues, including:
  - Managing unwinding of extraordinary monetary support, exchange rate issues, macroprudential policies, global regulatory reforms, strengthening macro-financial analysis, financial inclusion and deepening.
- Increased resources for “role of the Fund” work (Triennial Surveillance Review; governance; quota and SDR issues).
- Partly offset by scaled back development and review work on General Resource Account (GRA) related policies and facilities.
- ACES component labels shown include: Work with FSB and other international bodies; Other work on monetary, financial, and capital markets issues; Statistical information/data, manuals, and methodology; Development and review of Fund policies and facilities (PRGT, GRA); Quota and voice; SDR issues; International Financial Architecture; Data Transparency; Role of the Fund.

### Bilateral surveillance (FY2013–15)
- After several years of increased resource use, spending dropped slightly in FY2015, partly due to fewer FSAPs.
- Resources devoted to Article IV consultations declined slightly while other bilateral surveillance forms (staff visits, consultations with authorities) increased.
- Average spending:
  - Dropped slightly for countries on 24-month cycles.
  - Largely unchanged for intensive and standard surveillance countries.
- FSAP program saw reduced spending due to fewer assessments, including a decrease in mandatory assessments of systemically important financial jurisdictions.
- ACES component labels shown include: Article IV consultations; Other bilateral surveillance; Financial soundness evaluations - FSAPs/OFCs; Standards and codes evaluations.

### Lending (FY2011–15)
- Resources devoted to lending activities continued to decline.
- Decline reflects:
  - Gradual reduction in number of Fund arrangements from the peak in FY2010–11.
  - Increased focus on crisis prevention.
- Part of the decline offset by shift to non-financial arrangements (e.g., Staff Monitored Programs (SMPs) and Policy Support Instruments (PSIs)), in particular in Africa and the Middle Eastern region.
- ACES component labels shown include PSIs, PPMS, SMP, Other (e.g., near programs, Ex-Post Assessments (EPAs), Ex-Post Evaluations (EPEs)).

### Capacity development (CD) (FY2011–15 and FY2015 specifics)
- CD activities continued to expand and accounted for 27 percent of total gross spending (Annex II, Table 7).
- The vast majority of the increase in CD over recent years has been on technical assistance (TA), made possible by donor contributions.
- Share of CD spending devoted to TA increased to 83 percent in FY2015.
- After rapid expansion, growth in externally-financed activities started to level off.
- Annex I provides FY2015 outturn and evolution of financing and mode of delivery.

### Spending by country groups and regions
- Average country spending (total cost of bilateral surveillance, lending and capacity development averaged by number of member countries in the group/region):
  - Broadly unchanged for membership as a whole from FY2014.
  - Increased on program countries (average resources per program country grew despite fewer programs).
  - Increased for G-20, vulnerable, and post-conflict and fragile countries, indicating a shift to more risk-based resource allocation.
  - By region: average country spending increased in African and Western Hemisphere regions.
  - Middle East and Central Asia Department (MCD) maintained robust average spending despite conflicts affecting mission travel and field presence.
  - Average spending on European countries dropped with reduced crisis-related activities and TA.
  - Asia and Pacific spending declined slightly (cyclical timing of FSAPs), partially offset by additional CD spending.

### Capital investments (FY2015)
- Total capital expenditures of $136 million were spent mainly on the major renovation of the HQ1 building and improvements in IT infrastructure, security and corporate and strategic applications.
- Facilities:
  - Audio visual replacement program moved from design to purchase and installation and aligned with HQ1 construction.
  - Other projects: restroom and tenant space renovations; routine furniture replacement.
- HQ1 Renewal:
  - Major renovation progressed from lower levels up to the fourth floor and penthouse.
  - Project status reported quarterly to the Executive Board.
- IT capital budget:
  - Key objective: improve reliability and performance of IT infrastructure and core applications; strengthen protection of information assets.
  - Of the $29 million in IT capital expenditures, over 70 percent was for projects supporting corporate functions and IT infrastructure and security.
  - Remainder spent on core and strategic functions (data, knowledge and communication management; systems supporting surveillance, lending, capacity development; results-based management initiative).
  - Total IT expenditures remained within the benchmark range used as a barometer to gauge IT spending levels.
  - IT benchmark: total IT spending ratio = 9.7 percent, within benchmark range of 9–11 percent.
- Table 7 (Capital Expenditures, FY2015, Millions of U.S. dollars) — preserved as presented:
  - Appropriated in FY2015 budget: 22.0     -       0.6           29.8    52.4
  - + Unspent from FY2013 and FY2014 budgets: 19.7     313.1   -           12.8    345.6
  - = Total funds available in FY2015 2/: 41.7     313.1   0.6           42.6    398.0
  - Total expenditures in FY2015: 10.1     95.7     0.3           29.3    135.5
  - Notes: 1/ Includes the Audio Visual program. 2/ Approved capital budget funds are available to projects for three consecutive years. Unspent funds appropriated under the FY2013 capital budget lapsed at the end of FY2015. Unspent HQ1 renewal funds will lapse after April 30, 2018. Unspent Concordia funds appropriated in FY2012 expired at the end of FY2014, with the exception of $0.6 million that was specifically reappropriated to complete the final close out work in FY2015.

### IT capital expenditures by capability (FY2015)
- IT Infrastructure, Services, and Security: 16.0 (Millions of U.S. dollars)
- Finance and Budget: 3.5
- Data Management & Analysis: 3.0
- Communication & Relationship Management: 1.8
- Surveillance: 1.6
- Capacity Development: 1.1
- HR Management: 0.9
- Knowledge Management: 0.5
- Lending: 0.5
- Other: 0.4
- Core: 3.2; Strategic: 5.3; Corporate: 4.8 (aggregate labels shown)

### Annex I — Capacity Development: key points and donor financing
- CD spending increased significantly since FY2011 but leveled off in FY2015.
- CD accounted for about 27 percent of total spending in FY2015.
- Increase in CD spending largely driven by scaling up donor-financed TA.
- Share of CD spending devoted to TA: 83 percent in FY2015.
- Despite increased utilization of external financing, donor-financed delivery was below planned amounts:
  - Gap between budgeted and delivered activities in FY2015: $23 million, or 15 percent of the budget.
  - Causes: health and security risks (Ebola affecting Managing Natural Resource Wealth (MNRW) and Tax Policy and Administration (TPA)); security issues (South Sudan); implementation delays (AML/CFT, EFA); RTAC operational issues and staffing delays (CARTAC, AFRITAC West 2); late launch or delays in new bilateral programs/projects; additional time for Framework Administrative Agreement finalization with the European Union.
- Table 1. Donor-Financed Budget vs. Outturn (Millions of U.S. Dollars)
  - FY2012 Outturn: 100; Budget: 107; Difference: 7
  - FY2013 Outturn: 117; Budget: 127; Difference: 10
  - FY2014 Outturn: 124; Budget: 138; Difference: 14
  - FY2015 Outturn: 131; Budget: 154; Difference: 23
  - Note: Outturn and budget exclude administrative fee of 13 percent under the old financing instrument and a trust fund management fee of 7 percent under the new financing instrument. Also excluded are RTC expenses not reflected in IMF accounts.

*Source: Office of Budget and Planning; Technology and General Services Department; ICD Global Partnerships (content as provided in the FY2015 Outturn and Output Cost Estimates).*

### 4.      Over the last six years, the top

### _080315 - 4.      Over the last six years, the top

### External funding: donor concentration and vehicles
- Over the last six years, the top 15 donors contributed $791 million, or 85 percent of total external funding.
- Six donors contributed in excess of $50 million during this period: Japan, the European Union, Canada, the United Kingdom, Switzerland, and Kuwait.
- Donor contributions are made to:
  - multi-donor vehicles (nine RTACs, four RTCs, and eleven topical and country trust funds (TTFs)) or
  - bilateral programs/projects.
- Host countries manage three regional training programs (RTPs), where Fund staff provides training.
- During the current funding cycle, the top 10 donors provided 58 percent of their contributions to multi-donor vehicles.
- Table 2 (FY2010–15 contributions, Millions of U.S. dollars; Percent of total):
  - Japan 183 20
  - European Union 132 14
  - Canada 93 10
  - United Kingdom 79 8
  - Switzerland 57 6
  - Kuwait 52 6
  - Australia 33 3
  - Austria 27 3
  - Netherlands 27 3
  - Mauritius 22 2
  - Norway 21 2
  - Germany 21 2
  - Belgium 16 2
  - Singapore 15 2
  - France 11 1
  - Other donors and international institutions 143 15
  - Total 934 100
- Table 3 (CD Vehicles: Top 10 Donor Contributions, Millions of U.S. dollars; Percent of total):
  - Multidonor 403 58
    - of which TTF 88 13
    - RTAC 223 32
    - RTC 92 13
  - Bilateral 292 42
  - Total 694 100
- Concentration of contributions to multi-donor vehicles:
  - The top three donors account for about $320 million, or 67 percent of their external funding.
  - Top three donor shares by vehicle:
    - Top three for topical and country trust funds: 72 percent.
    - Top three for RTACs: 65 percent (recipient members are expected to contribute).

### Capacity Development (CD) volume and priorities (FY2015)
- CD priorities for FY2015:
  - continue to support crisis countries in Europe,
  - scale up support to Arab countries in transition (ACT) and fragile states,
  - increase assistance on financial sector issues,
  - maintain high level of support to low-income developing countries and small states.
- Governance and planning:
  - The Fund’s CD activities follow a two-level prioritization process involving the interdepartmental Committee on Capacity Building (CCB) and Area departments’ Regional Strategy Notes (RSNs).
  - A Resource Allocation Plan (RAP) between area and TA departments determines detailed mission plans for the coming fiscal year.

### Technical Assistance (TA): delivery, topics, and funding (FY2011–15)
- Overall field delivery increased slightly to 288 full-time equivalents (FTEs) in FY2015.
- Regional FTEs (FY2011–FY2015):
  - AFR 64 91 103 111 113
  - APD 35 38 47 51 56
  - EUR 24 26 32 37 34
  - MCD 31 28 30 28 25
  - WHD 46 51 57 52 56
  - Multiple regions 2/ 34 45 5
- Income group FTEs (FY2011–FY2015):
  - Advanced economies 13 17 25 30 26
  - Emerging and middle-income economies 100 101 110 109 119
  - Low-income developing countries 87 117 136 140 137
  - Multiple regions 2/ 34 45 5
- Program status (FY2011–FY2015):
  - Program 102 111 112 97 91
    - number of countries 68 60 54 46 44
  - Non-Program 98 124 158 183 191
  - Multiple regions 2/ 34 45 5
- Topic composition of TA (FTEs; FY2011–FY2015):
  - Fiscal 97 122 148 150 146
  - Monetary and financial sector 57 64 63 68 72
  - Statistical 21 24 32 37 42
  - Legal 17 16 14 15 12
  - Other 13 13 16 15 16
- Staff type (FTEs; FY2011–FY2015):
  - Long-term resident experts 71 84 94 100 97
  - Short-term experts 80 93 110 116 118
  - HQ-based staff 53 61 70 69 73
- Funding source (FTEs; FY2011–FY2015):
  - Fund-financed 50 51 47 53 54
  - Externally-financed 153 188 227 232 234
  - Total 203 239 274 285 288
- Donor-financed TA accounted for about 80 percent of TA field delivery in FY2015.
- Topic trends:
  - Fiscal TA fell slightly in FY2015 after substantial increases in preceding years.
  - Monetary and financial sector TA increased for the second year in a row.
  - TA on statistics continued to expand.
  - TA on legal issues decreased by 20 percent.
- TA delivery by priority area (FTEs; FY2011–FY2015):
  - Arab Countries in Transition 1/ 10 4 5 7 7
  - Fragile states 2/ 55 65 74 76 78
  - Financial sector 57 64 63 68 72
  - Low-income developing countries 87 117 136 140 137
  - Small states 2/ 35 37 44 46 49

### Training: volume, delivery modes, and priorities (FY2011–15)
- Overall training volume increased slightly in FY2015 to about 14,400 participant weeks; reported total: 11,441 12,546 12,114 14,296 14,358.
- Training delivery by department (participant weeks; FY2011–FY2015):
  - FAD 342 291 184 161 1,062
  - ICD 6,594 6,912 6,773 7,967 7,914
  - LEG 49 160 24 41 400 423
  - MCM 493 292 386 428 424
  - STA 2,541 3,142 2,772 3,550 3,310
  - Other 1/ 979 1,307 901 1,338 1,226
- Training by region (participant weeks; FY2011–FY2015):
  - AFR 2,660 3,265 3,306 3,522 3,735
  - APD 3,042 3,098 2,863 3,472 3,379
  - EUR 1,659 1,656 1,825 1,936 1,836
  - MCD 2,297 2,532 2,625 3,147 3,048
  - WHD 1,783 1,996 1,496 2,220 2,360
- Training by income group (participant weeks; FY2011–FY2015):
  - Advanced economies 734 750 754 912 858
  - Emerging and middle-income economies 5,942 6,650 6,209 7,884 7,559
  - Low-income developing countries 3,871 4,097 4,304 5,267 5,577
  - Other 2/ 893 1,049 847 233 364
  - Total 11,441 12,546 12,114 14,296 14,358
- Training venue and course category (participant weeks; FY2011–FY2015):
  - Venue:
    - Regional Training Centers 5,326 5,819 5,924 6,340 5,995
    - IMF HQ 1,861 2,252 1,565 1,614 1,321
    - Other training locations 3,459 3,875 4,057 4,811 5,198
    - Distance learning 796 601 567 200 –
    - Online learning – – – 1,331 1,843
  - Course category:
    - Macroeconomic policies 3,760 3,670 3,775 3,518 4,253
    - Financial sector 2,474 2,778 2,641 2,863 2,804
    - Macroeconomic statistics 2,328 2,814 2,594 3,088 2,166
    - Specialized fiscal issues 948 950 1,043 2,297 1,805
    - Legal issues 49 160 24 41 400 423
    - Other 1,439 1,732 1,620 2,131 2,907
  - Total participant weeks: 11,441 12,546 12,114 14,296 14,358
- Online learning:
  - Inaugurated in FY2014; grew by 38 percent in FY2015.
  - Average enrollments: 300 participants per online course compared with 30 in traditional face-to-face training.
  - Online training accounts for 13 percent of the Fund’s training in FY2015.
- Training priority area participant weeks (FY2011–FY2015):
  - Arab Countries in Transition 1/ 463 599 670 856 710
  - Fragile states 1/ 1,647 1,711 2,018 2,621 2,591
  - Financial sector 2,474 2,778 2,641 2,863 2,804
  - Low-income developing countries 1/ 3,871 4,097 4,304 5,267 5,577
  - Small states 1/ 746 810 941 1,592 1,606

### Progress toward improved measurement of results and RBM
- The Fund’s CD evaluation framework is being strengthened; work underway to develop an institutional approach to evaluation for all CD activities.
- The Fund’s new RBM system, Capacity Development Project Outcomes and Results Tracking (CD-PORT):
  - Is in the piloting stage.
  - Planned to be rolled out in the second half of 2015 and expected to be fully operational with all new TA projects to be captured by January 2016.
  - Expected improvements when fully implemented:
    - strengthen monitoring of both TA delivery and results by integrating TA project and budget management with systematic tracking of TA results;
    - generate reports on the pace of implementation of individual TA programs or projects against verifiable outcome indicators to inform allocation of TA resources and evaluation of TA projects.

### Annex II highlights: administrative, travel, employment, and capital expenditures (selected figures)
- Administrative budgets and outturns (Net Budget and Gross Budget) for FY2002–15 are tabulated in Annex II (detailed year-by-year tables).
- Departmental business travel and seminar expenditures (Millions of U.S. dollars; FY2013–15):
  - Total by type of cost: 108 (FY2013), 105 (FY2014), 102 (FY2015)
  - Transportation: 65, 62, 60
  - Per diem: 43, 42, 42
  - By type of financing (Fund-financed vs Externally-financed): Fund-financed 77, 71, 68; Externally-financed 31, 34, 34
- Travel metrics (FY2013–15):
  - Number of Missions 8,306 (FY2013), 8,562 (FY2014), 8,642 (FY2015)
  - Mission Nights 89,245; 94,444; 88,094
  - Persons 12,131; 12,380; 12,326
- Buildings and other expenses (Millions of U.S. dollars; FY2013–15):
  - Total buildings and other expenses 181 180 190 203 193 204 (table headings span years)
  - Building occupancy 58 57 58 62 60 61
  - Information technology 47 47 54 59 57 60
- Total Fund employment (Full-time equivalents; FY2013–15):
  - Total Fund employment 3,455 3,574 3,661
  - Regular, fixed term, limited term staff 2,671 2,732 2,784
  - Expert and contractual staff 784 841 877
- Capital expenditures (Millions of U.S. dollars; FY2010–15) provide multi-year appropriations, funds available, expenditures, lapsed funds, and remaining funds across categories including Information Technology, HQ Renewal, Concordia Renovation, and Total Capital Plan (detailed table entries for FY2010–FY2015).

*Source: EFRMS; ICDGP Quarterly Fundraising Database; TIMS; MONA; PATS; Office of Budget and Planning; Annex II tables as provided in the source content.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2015/_080315.pdf_