UNICEF Financial Analysis
UNICEF is a non-profit organization that has operations in over 190 nations. The main purpose of the organization is to save children’s lives, protect and defect their civil rights, and more importantly, provide them with opportunities to capitalize on their potential from childhood through adolescence (UNICEF, 2020). Also, UNICEF provides various institutions and federal governments that support its mission with procurement services. Additionally, for long-term development, the organization offers less fortunate children medication services among others. To support all its operations, UNICEF has implemented a working budgeting process that allows the organization to access funding sources.
Budgeting Process
The organization relies on various funding sources across the globe including public and private sector partners to defend the rights of every child. According to a report published by UNICEF, 137 government partners, federal institutions and inter-organizational arrangements contributed financially to help the organization carry out its work (UNICEF, 2020). For instance, the United States government contributed over $743 million in financial resources to support UNICEF’s mission. Other federal governments that contributed financially to aid UNICEF’s effort to explore new areas include the United Kingdom, Germany, and the Netherlands among others. Moreover, in 2019, the European Union also contributed over $382 million to support UNICEF’s mission to provide quality education and improve service delivery to refugee children in various countries (UNICEF, 2020).
Besides UNICEF having an amicable relationship with its public sector partners, the organization also has a strong and working relationship with its private sector partners. According to UNICEF’s annual report, the organization’s corporate partnerships raised over $201 million, and the funds were used extensively worldwide to help over 15 million children (UNICEF, 2020). Also, the organization has established strong relations with philanthropy partners such as Rotary International and Latter-day Saint Charities. All these partnerships have enabled UNICEF to protect children and provide them with safe environments. To this end, I believe the organization’s relationship with its funders both public and private is amicable.
The budget process of UNICEF is on an annual basis and the fiscal year begins from July 1st to June 30th. The organization’s board of directors is involved in making notes of financial statements including an analysis of primary accounting policies. The executive director of UNICEF is responsible for making the organization’s financial statements as per the requirements of IPSAS (United Nations, 2020). Other members of the board are tasked with supervision of the financial reporting process of the organization. In case of any regulatory issues, the organization’s auditors are responsible for the audit of the financial statements. However, UNICEF adheres to International Standards on Auditing and maintains professional skepticism to avoid any issues.
Financial Health and Analysis
By the end of 2019, UNICEF outlined that it had achieved over 74% of 2018-2021 strategic plan objectives (UNICEF, 2020). With the support of its partners, UNICEF has significantly helped young people and children to overcome obstacles that prevent them from reaching their full potential. According to UNICEF’s report, the organization managed to provide millions of children with medication services, education, safe drinking water, sanitation services, and humanitarian assistance (UNICEF, 2020). Therefore, with these statistics, the organization is expected to keep growing in the coming fiscal year.
The organization’s budget and financial health have significantly impacted UNICEF’s provision of services. Through the support of government partners, inter-organizational arrangements, and private sector partners, UNICEF has achieved a sustainable impact for children worldwide. In terms of suitability and appropriateness of its operations, UNICEF has tirelessly worked to ensure children are safe regardless of the challenges. During the fiscal year of 2019, UNICEF’s budget had a positive impact on the children they served. For instance, during this year, the organization appropriately responded to the Rohingya refugee crisis by offering Bangladesh assistance to ensure families and children received the care they needed (UNICEF, 2020).
In my opinion, the organization handles the challenges of the fiscal side of its operations splendidly. In the event of any changes in humanitarian policies, UNICEF implements strategies that allow the organization to remain operational and accomplish that its annual targets. Despite the organization’s success in providing humanitarian assistance to children, I would offer the following recommendations for improvements. Since the UNICEF works in collaboration with governments, public and private sectors, I would recommend the organization to invest in advocacy, communications, and campaigning programs to reach more affected areas. That way, the organization will increase its fundraising, volunteerism, and public engagement. Lastly, I would recommend the organization extend its partnerships to leverage its innovations to eliminate any market barriers that hinder service and product delivery in affected regions.
Conclusion
On most occasions, public resources are often misappropriated and do not reach those in need reducing the quality of education and healthcare among other services. However, UNICEF’s budgeting process has been successful and has prevented misallocation of resources. Through its efforts, millions of children can now grow and learn in a safe environment. In the coming years, UNICEF is expected to keep growing expanding its reach to the most affected regions globally. Despite the organization’s success, it can capitalize on its strengths and improve its weaknesses to accomplish its objectives.
References
UNICEF. (2020). UNICEF annual report 2019. Retrieved from https://www.unicef.org/reports/annual-report-2019
United Nations. (2020). Financial report and audited financial statements for the year ended 31 December 2019 and Report of the Board of Auditors. Retrieved from https://www.unicef.org/executiveboard/media/2446/file/A-75-5-Add3-Financial_report_UNBOA_2019-EN-ODS.pdf
