8/28/081 caap basics and critical issues general secretariat of the oas
TRANSCRIPT
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CAAP BASICS and CRITICAL ISSUES
GENERAL SECRETARIAT OF THE OAS
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CAAP Basics Who’s Who What does CAAP do? Basic Documents Budget Structure
2009 – 2010 Challenges: 2009 Program-Budget Proposal 2010 and Beyond
Critical Issues: CAAP Agenda for 2008
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Who’s Who
Permanent Council Article 91 of the Charter of the OAS grants it responsibility for administrative oversight of the GS/OAS.
Acts as the Preparatory Committee of the General Assembly.
CAAP
Established pursuant to Article 19 of the Rules of the Permanent Council.
Reviews administrative and budgetary matters referred to it by the PC and/or the General Secretariat.
Reports to the PC on its findings.
Serves as a Subcommittee of the Preparatory Committee.
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Who’s Who (cont.)
General Secretariat
Secretariat for Administration and Finance (SAF): Technical Secretariat to the CAAP.
Secretariat to the GA, Meeting of Consultation, the Permanent Council and Subsidiary Organs: Committee Secretary.
Department of Legal Affairs and Services: Legal advisor to CAAP.
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What does CAAP do?
Examines, discusses, evaluates and makes recommendations to the Permanent Council on administrative and budgetary matters referred to it by the PC and/or General Secretariat (GS/OAS).
Reviews periodic financial and administrative management reports submitted by the GS/OAS.
Follows-up on the implementation of mandates and administrative measures required by the PC or the GA.
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Basic Documents
Legal Framework, Mandates:
Charter of the OAS.
“General Standards” to Govern the Operations of the GS/OAS.
Budget resolutions AG/RES. 2353 (2008 budget) and AG/RES. 2437
(2009 budget guidelines), other resolutions from previous years.
Additional Key Documents:
Proposed Program-Budget of the Organization for 2009 (March 2008).
Quarterly Resource Management Reports, Financial Statements, and other CAAP documents issued in 2007/08.
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Annual OAS Management Cycle:Annual Audit, RF Program-Budget and Quarterly Reports aligned to CAAP’s Agenda
Jun 30
Mar 31 1st Quarterly Report
2nd Quarterly Report
Sep 303rd Quarterly Report
Dec 31 | Jan 1
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT
REPORT TO THE PERMANENT COUNCIL
ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS
For the years ended December 31, 2006 and 2005
2006
By the Board of External Auditors ADM
Publication of Annual Audit of Accounts
Phase 2SAF inputs budgetInformation
Phase 1Program-Budget formulation and planning
Phase 6Publication and distribution of the Budget by no later than 60 days after approval
Phase 5(Jun 1 – Jun 6)Approval of Program-Budget by the GA
Phase 4Discussion and review by CAAP and recommendation to the Preparatory Committee 15 days prior to GA
Phase 3Budget analysis, preparation and presentation 90 days prior to GA
Publication ofRF Program-
Budget
Year-round financial
planning and performance assessment
Preliminary Audit of Accounts(SEP to OCT)
Audit of Accounts(JAN to APR)
Report from the Board of External
Auditors(end of APR)
Legend
Annual Audit
RF Program-Budget
Quarterly Reports
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
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Chapter / Program Corresponds to a major organizational unit or program
within the overall framework of the General Secretariat.
Subprogram Corresponds to a specialization within the scope of
activities defined for a program. Project
Constitutes the basic unit for budget planning and is the level of greatest detail in the program budget.
PROGRAM-BUDGET STRUCTURE
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Chapters / Programs1. – Secretary General
2. – Assistant Secretary General
3. – Autonomous and/or Decentralized Entities
4. – Secretariat for Legal Affairs
5. – Secretariat for Multidimensional Security
6. – Secretariat for Political Affairs
7. – Executive Secretariat for Integral Development
8. – Secretariat for External Relations
9. – Secretariat for Administration and Finance
10. - Basic Infrastructure and Common Services
PROGRAM-BUDGETSTRUCTURE (cont.)
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Objects of Expense
1. – Approved posts, temporary and overtime
2. – Non recurring personnel expenses
3. – Fellowships
4. – Travel
5. – Documents
6. – Equipment and Supplies
7. – Buildings and Maintenance
8. – Performance Contracts
9. – Other Costs
PROGRAM-BUDGETSTRUCTURE (cont.)
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Types of Funds Regular Fund
Operating Subfund Reserve Subfund
Voluntary Fund (FEMCIDI) Specific Funds, e.g.
OAS DEMOC Spain Canada Mexico
Trust Funds, e.g. Retirement and Pension Medical Benefits Leo Rowe
Revolving Funds (Internal accounts) e.g. Administrative and Service Funds Treasury Fund
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Regular Fund
Funded by the obligatory quota payments of the Member States to finance the operations of the General Secretariat.
Operating Subfund
Records all income, obligations and expenditures of the approved Regular Fund budget.
Reserve SubfundRecords year-end balance of operating activity. Designed to meet the expenditures of the General Secretariat pending receipt of quota and other income.
Types of Funds (cont.)
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Voluntary Fund (FEMCIDI) Funded by voluntary contributions (pledges) of the Member States
to finance the activities of the Inter-American Council for Integral Development.
Specific FundsFunded by donor contributions designated for specific activities or projects according to an agreement between the donor of funds and the General Secretariat.
Trust FundsFunds established by a donor to fund purposes and activities specified by the donor in the trust instrument and must be used for the benefit of those activities or persons specified in the trust agreement.
Types of Funds (cont.)
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Revolving Funds
Established to account for internal operations originating from the execution of approved activities.
Administrative Service FundsCreated to record transactions for services such as parking, long distance telephone, rental maintenance, ICR, tax reimbursement.
Treasury FundAll the cash available for use in carrying out the activities of the various funds of the OAS, except those funds that the Permanent Council specified should be deposited in a separated bank account. Available cash is consolidated in the Treasury Fund for more efficient and effective cash management of those financial resources
Types of Funds (cont.)
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Critical Issues: CAAP Agenda for Aug-Dec 2008
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2009 Proposed Program-Budget2009 Indicative Figures
$ % $ %
Personnel 55,833.5 63.81% 58,022.5 64.38%
Non Personnel 31,666.5 36.19% 32,102.5 35.62%
Total 87,500.0 100.00% 90,125.0 100.00%
Notes:
a) 2008 Program-Budget approved by AG/RES. 2353 (XXXVI I O/07)
b) Assumes a global increase of 3.0% over the 2008 approved Program-Budget
Approved 2008 a) Proposed 2009 b)
2009 Program-Budget - Regular FundBudget Ceiling - I ndicative Figures
(in thousands of US$)
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2009 Budget: Ceiling and Financing2008 approved and proposed 2009
(Figures in thounsands) 2008 2009
Approved Proposed
Sources of Financing
Quota Assessments 76,107.0$ 78,593.0$ c)
Indirect Cost Recovery (ICR) 2,500.0 2,500.0
Administrative and Technical Support (FEMCIDI) 780.4 780.4
Other Income (rent, interest and miscellaneous) 1,419.6 1,500.0 a) b)
80,807.0$ 83,373.4$
To be financed through overquotas, prompt payment
credit waiver and/or Reserve Subfund 6,693.0 a) b) 6,751.6
87,500.0$ 90,125.0$
a) Overquota = $1,340.9M.
c) Quota assessment per quota scale in AG/ RES. 1 (XXXIV-E/ 07) plus a 3.0% increase in quota base of $76,107.0M.
a) Reserve Subfund = $5,352.1M.
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2009 Proposed Program-BudgetAssumptions
■ Adherence to the SG’s commitment, stated on June 5, 2006 in Santo Domingo, to present throughout his administration a proposal that protects the purchasing power of the budget but maintains a zero real growth rate.
■ The 2009 Budget ceiling is being proposed at $90.1 million, only 3% over the
2008 Approved Budget ceiling.
■ Object 1 (personnel) has been set to $58.0 million, equivalent to 64.38%, pursuant to AG/RES. 2353 (XXXVII – O/07).
■ Compared to the 2008 Approved Budget, this represents an increase of $2.2 million resulting principally from statutory increases (post adjustment, health insurance).
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2009 Proposed Program-BudgetAssumptions (cont.)
■ Objects 2-9 (non-personnel) have been adjusted to $32.1 million.
■ Compared to the 2008 Approved Budget, the non-personnel budget proposal represents an increase of $436.0 thousand to accommodate inflationary increases (e.g., electricity, fuel, travel).
■ Statutory increases to personnel costs are based on the following:
● A 4% increase for professional staff and 3% for General Services staff in 2009. These estimates are based on the trend of the increases granted by the UN in recent years.
■ Increases to objects 2-9 costs have been capped in the 2009 proposed program-budget at 1.3%.
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Summary of Decisions To-date and Next Steps
ACTIONS TAKEN MARCH – JUNE 2008:■ CAAP reviewed the 2009 Program-Budget Proposal and drafted the 2009 Budget
Resolution. No changes were made to the proposed itemized budget figures.
■ Medellín GA approved the “Guidelines for the 2009 Program-Budget” AG/RES. 2437 (XXXVIII-O/08).
AUGUST- SEPTEMBER 2008
■ CAAP recommends budget expenditure ceiling and financing sources.
■ CAAP presents report to the Permanent Council/PrepCom by mid September.
■ PrepCom convenes the XXXVI Special Session of the General Assembly by no later than 9/30/08.
■ By September 30, Special GA approves 2009 budget and its financing.
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2010 and beyond
Pursuant to resolution AG/RES. 2437 (XXXVIII-O/08), the Permanent Council is required to convene a special session by Dec. 15, “to consider the recommendations of the Board of External Auditors … in regards to the need for a periodic adjustment of quota income to the Organization’s expenditure level”, as well as to “convoke prior to 31 January 2009, a Special Session of the General Assembly to adopt, as appropriate, those decisions that may be required.”
In this context:
The SG is committed to maintaining budget growth target of 3% annually. Inflationary pressures and a weak US $ are likely to test the limits of targeted growth
rate:● US inflation at 5.6% for the 12-month period ending July 2008.● US dollar posting losses against major currencies.● Statutory increases to salaries and inflation have been eroding the purchasing power of the
budget.
Improved quota collections have reduced the arrears of prior periods which have contributed to finance the budgets up to 2009. Starting in 2010, the gap of $8.0 million needs to be closed by a one-time quota increase, a one time program reduction or a combination of both.CP20924E