54. The two largest components of total programme expenditure shown in statement I are “indicative planning figures” (IPP) and “coat-sharing”. The apportionment of programme expenditure to coat-sharing affects, in turn, the balances of unexpended coat-sharing and general resources, shown in statement II, as well as of miacellaneoua and extrabudgetary income, to which interest income derived from the investment of the balance of general resources and of unexpended coat-sharing reaourcea, respectively, is credited. 55. The admiaiatrativo instructions of UNDP as laid down in the Programno and Projects Manual stipulate that, in general, the year-end apportionment exercise should be baaed on the available balance of coat-sharing reaourcea and the annual instalment of the project budget. The circumatancoa that would warrant exceptions are not specified. The Board had prcvioualy observed numerous exceptions to the -25- mtea p0ii0y 8na hea, therefore , requested that deviations be aaequm3ly a0O~entOa ana jwifiea, Furthermore, we suggested, that a revision of the stated policy to include multi-year project budget apportionment, instead of referring to the annual instalment, should be aonsidered. Upon reviewing the subjeat again, we found matters basically unchanged, 56. The Administration explained that new procedures had been introduoed on a trial baeis and that they would subsequently be reviewed. The proposal to apply the proportion of cost-sharing finanoing in the multi-year project budget had not been implemented, sinae it was felt that such a practice could be ditficult in view of ahanges that ooaur in projects over their lifetime and the fact that cost-sharing apportionment is dependent on available income. All apportionment figures are verified by the Bureau Finance Officers and deviations are justified and documented. 57. The new procedure might prove helpful , since it will require field offices to provide an explanation every time the apportionment requested aeviates from the stated policy. However, the trial period might need to be extenaea since, 
**Analysis**
The text appears to be discussing the financial management and budgeting of a development project, specifically the United Nations Development Programme (UNDP). The language used is technical and focused on financial concepts such as cost-sharing, apportionment, and budgeting. The context is likely related to the management of funds allocated for development projects, rather than a specific sector like agriculture or education.

**Category**
Administration, Finance