2009 proposed program-budget 1 secretariat for administration and finance march 2008 (portions...

2009ProposedProgram-

Budget

1

SECRETARIAT FOR ADMINISTRATION AND FINANCEMarch 2008

(Portions updated July 22, 2008)

ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org

Original: English March 3. 2008

2009 PROPOSED PROGRAM BUDGET

Submitted by the Secretary General

March 2008

Office of the Secretary General

2

What is covered in this presentation?

I. Context

II. 2009 Proposed Program-Budget

III. Summary of Decisions To-date and Next Steps

IV. Subsequent Challenge: Finding Long-Term Solutions

2009 Proposed Program-BudgetMarch 26, 2008

3

IContext


ContextAnnual 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 31Jan 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 Externa l 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 1st – Jun 6th)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)

LegendAnnual AuditRF Program-BudgetQuarterly Reports

ORGANIZAT ION OF AMERICAN STATES GENERAL SECRETARIAT (GS /OAS) 1889 F Street, N. W. , Washington, D. C. 20006, USA (202) 458-3000 / www.oas.org

EOS AF/10 1-07 Original: Engl ish

October 30, 2007

OAS QUARTERLY RESOURCE MANAGEMENT REPORT

SEPTEMBER 30, 2007

An overview of the financial position of t he General Secretariat for t he 3rd quarter (July—September) of 2007,

and a status report on other management activities

October 2007

Secretar ia t for Administration and Finance (SAF )

ORGANIZATIO N O F AMERICAN STAT ES GENERAL SECRET ARIAT (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


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)

ORGANIZAT IO N O F AMER ICAN STATES GENERAL S ECRETARIAT (GS /OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458 -3000 / ww w.oas.org

EOSAF/101-07 Origin al: English

October 30, 2 007


SEPTEMBER 30, 2007

An overview of the financial positi on of the General Secretariat for the 3rd quarter ( July—September) of 2007,

and a st atus report on other management activities

October 2007

Secretariat for Administration and Finance (SAF)

5

Context2007 Modified Appropriation and Execution:

■ The General Secretariat was authorized, pursuant to Res. AG/RES. 2257, to execute $81.5 million in 2007.

■ This level was subsequently raised through a special appropriation of $2.9 million for a budgetary authorization (“ceiling”) of $84.4 million (column A).

■ Column B shows transfers during execution.■ Of the total in Column D, $5.2 million corresponds to a special authorization to defer the

execution of Fellowships, and $0.5 million in unobligated appropriations, which are no longer available for execution (became part of the Reserve Subfund as of 12/31/07).

(in millions of USD) (A)Budgetary

Authorization

(B)Modified

Appropriation

(C)Execution

(D)=(B)–(C)Variance

Personnel 53.2 52.7 52.6 0.1

Non-personnel 31.2 31.7 26.1 5.6

Total 84.4 84.4 78.7 5.7


6

Context2008 Approved Budget and Execution:

■ The General Secretariat was authorized, pursuant to Res. AG/RES. 2353, to execute $87.5 million in 2008.

■ Column (C) provides an up-date on execution at mid-point in the 2008 fiscal year. The GS/OAS estimates 100% execution at 12/31/08


(in millions of USD) (A)Budgetary

Authorization

(B)Modified

Appropriation

(C)Execution

As of 06/30/08

(D)=(B)–(C)Variance

Personnel 55.8 55.9 56.4 (0.6)

Non-personnel 31.7 31.6 21.7 6.7

Total 87.5 87.5 78.1 6.1

page modified 7/22/08

7

II2009 Proposed Program-Budget


8

2009 Proposed Program-Budget2009 Indicative Figures

2009 Proposed Program-Budget

$ % $ %

Personnel 55.8 63.81% 58.0 64.38%

Non Personnel 31.7 36.19% 32.1 35.62%

Total 87.5 100.00% 90.1 100.00%

Notes:a) 2008 Program-Budget approved by AG/RES. 2353 (XXXVII O/07)b) Assumes a global increase of 3.0% over the 2008 Aproved Program-Budget

Approved 2008 a) Proposed 2009 b)

March 26, 2008

9

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 maintains the real value of the budget.

■ 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 from statutory increases (post adjustment, health insurance).

■ Objects 2-9 (non-personnel) have been adjusted to $32.1 million.

■ Compared to the 2008 Approved Budget, this represents an increase of $436.0 thousand to accommodate inflationary increases (electricity, fuel, travel).


10

2009 Proposed Program-BudgetAssumptions (cont.)

■ 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%.


11

2009 Proposed Program-BudgetExpenditure budget


2008 2009 Amount %

Regular Fund 87.5$ 90.1$ 2.6$ 3.0%Specific Funds 63.8 90.0 26.2 41.0%Voluntary Fund 6.0 6.0 0.0 0.2%Total 157.3$ 186.1$ 28.8$ 18.3%

Variance

Regular Fund90.149%

Voluntary Fund6.03%

Specific Funds90.048%

Regular Fund Specific Funds Voluntary Fund

Comparative summary of appropriations (by Fund)(in millions)

2009 Distribution of funds administered by the OAS (by Fund)(in millions)

12

2009 Proposed Program-BudgetExpenditure budget (cont.)


Comparative summary of appropriations (by Chapter) – Regular Fund (in thousands)

2008 2009 Amount %

Office of the Secretary GeneralPersonnel 5,387.1$ 5,650.9$ 263.8$ 4.7%Non Personnel 501.1 508.0 6.9 1.4%

Sub Total 5,888.2 6,158.9 270.7 4.4%Office of the Assistant Secretary General

Personnel 14,385.0 14,827.8 442.8 3.0%Non Personnel 3,593.3 3,642.8 49.5 1.4%

Sub Total 17,978.3 18,470.6 492.3 2.7%Autonomous and/or Descentralized Entities


Sub Total 8,234.3 8,440.0 205.7 2.4%Secretariat for International Legal Affairs

Personnel 2,762.6 2,937.5 174.9 6.0%Non Personnel 734.1 744.2 10.1 1.4%

Sub Total 3,496.7 3,681.7 185.0 5.0%Secretariat for Multidimensional Security


Sub Total 4,177.7 4,289.1 111.4 2.6%Secretariat for Political Affairs


Sub Total 3,645.9 3,797.8 151.9 4.0%Executive Secretariat for Integral Development


Sub Total 17,702.9 18,182.3 479.4 2.6%Secretariat for External Relations


Sub Total 3,630.2 3,762.2 132.0 3.5%Secretariat for Administration and Finance


Sub Total 10,682.9 11,113.4 430.5 3.9%Basic Infrastructure and Common Costs

Non Personnel 12,062.9 12,229.0 166.1 1.4%Sub Total 12,062.9 12,229.0 166.1 1.4%

Total 87,500.0$ 90,125.0$ 2,625.0$ 2.9%

Variance

13



2009 Proposed Program-Budget (by Chapter) – Regular Fund(in millions)

Secretariat for Multidimensional Security

$4 5%

Secretariat for InternationalLegal Affairs

$4 4%

Autonomous and/or Descentralized Entities

$8 9%

Office of the Assistant Secretary General

$18 21%

Office of the Secretary General

$6.1 6.8%

Secretariat for Political Affairs

$4 4%

Executive Secretariat for Integral Development

$18 20%

Secretariat for External Relations

$4 4%

Secretariat for Administration and Finance

$11.1 12.3%

Basic Infrastructureand Common Costs

$12 14%

14



2009 Proposed Program-Budget – Expenditure budget of the Regular Fund by object of expenditure and Chapter (in thousands)

Object of Expenditure1 2 3 4 5 6 7 8 9

Personnel Recurrent

Personnel Non-Recurrent Fellowships Travel Documents

Equipment and

Supplies Buildings

Maintenance Performance

Contracts Other Costs

Subtotal 2-9 Total

1 Office of the Secretary General 5,596.1$ -$ -$ 206.1$ 35.2$ 72.4$ 0.4$ 82.8$ 111.1$ 508.0$ 6,158.9$

2 Office of the Assistant Secretary General 14,827.8 1.6 - 244.8 129.9 410.5 600.6 1,979.0 276.5 3,642.8 18,470.6

3 Autonomous and/or Descentralized Entities 3,711.3 - 28.1 271.7 59.8 70.9 13.9 627.8 3,656.6 4,728.7 8,440.0

4 Secretariat for International Legal Affairs 2,953.2 0.7 - 189.5 49.7 78.2 61.1 311.3 53.7 744.2 3,681.7

5 Secretariat for Multidimensional Security 3,678.7 - - 189.6 53.6 72.9 - 150.0 144.3 610.4 4,289.1

6 Secretariat for Political Affairs 3,445.5 0.5 - 56.0 81.4 13.4 - 140.9 60.1 352.3 3,797.8

7 Executive Secretariat for Integral Development 9,746.8 - 7,052.8 325.0 80.1 118.6 - 535.1 189.6 8,301.1 18,182.3

8 Secretariat for External Relations 3,474.5 - - 25.0 140.8 52.9 - 216.2 26.2 461.2 3,762.2

9 Secretariat for Administration and Finance 10,588.6 - - 3.4 23.4 176.2 - 238.4 83.3 524.8 11,113.4

10 Basic Infrastructure and Common Costs - 1,418.6 - 464.2 - 767.2 5,530.9 3,634.0 414.1 12,229.0 12,229.0

Total 58,022.5$ 1,421.4$ 7,080.9$ 1,975.3$ 653.9$ 1,833.1$ 6,206.9$ 7,915.6$ 5,015.4$ 32,102.5$ 90,125.0$

Chapter

15



Budgetary Evolution of Approved Posts from 1999 to 2009 (in millions and number of positions, respectively)

$44.7 $44.9 $44.5$46.9 $46.4

$49.2 $49.5 $49.0$53.2

$55.8 $58.0* 587 587

582 582 582

552

528

506

522

539547*

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009460

480

500

520

540

560

580

600

Budgetary Evolution of Approved Posts Personnel Count

Annual Average (in thousands)

$76.1 $76.5 $76.5 $80.6 $79.7 $89.1 $93.8 $96.8 $101.9 $103.5 $106.0*

*

* P rojected


2009 Proposed Program-Budget Areas 2009 – Composition

March 26, 2008

Area Subprogram NameDemocracy and Governance 42A Secretariat for Legal Affairs

42B Department of International Law 42C Department of Legal Cooperation42D Department of Special Legal Programs62A Secretariat for Political Affairs62B Department of Electoral Cooperation and Observation62C Department of Sustainable Democracy and Special Missions62D Department of State Modernization and Good Governance

Democracy and Governance TotalHuman Rights 32A Inter-American Court of Human Rights

32B Inter-American Commission on Human Rights and its Executive SecretariatHuman Rights TotalIntegral Development 22E Permanent Secretariat of the Inter-American Commission of Women (CIM)

22G Secretariat of the Inter-American Committee on Ports (CIP)32H Panamerican Development Foundation42D Office of the Director General of the Inter-American Children’s Institute72A Executive Secretariat for Integral Development72B Department of Education and Culture72C Department of Trade and Tourism72D Department of Sustainable Development72E Department of Social Development and Employment72F Department of Science and Technology72G Department of Human Development72H CIDI Mtgs., Ministeries & IA Committees Meetings

Integral Development TotalMultidimensional Security 32G Inter-American Defense Board

52A Secretariat for Multidimensional Security52B Department for the Coordination of Policies and Programs

52C Secretariat of the Inter-American Drug Abuse Control Commission (CICAD)52D Secretariat for the Inter-American Committee against Terrorism (CICTE)52E Department of Public Security

Multidimensional Security Total


2009 Proposed Program-BudgetAreas 2009 – Composition (cont.)

March 26, 2008

Area Subprogram NamePolicy Direction 12A Office of the Secretary General

12C Press Department12D Department of Planning, Control and Evaluation22A Office of the Assistant Secretary General32C OAS Administrative Tribunal and its Secretariat32E Board of External Auditors82A Secretariat for External Relations

82B Department of Communications and Institutional Image82C Department of Relations with Observers, Multilateral Organizations, and the Host Country

Policy Direction TotalSupport for the Member States 12B Summits Secretariat

12F Office of Protocol

22BOffice of the Secretariat to the General Assembly, the Meeting of Consultation, the Permanent Council , and Subsidiary Organs

22C Department of Conferences and Meetings22D Coordinating Office for the Offices and Units of the General Secretariat in the Member States22F Columbus Memorial Library22H General Assembly22I OAS Unprogrammed Meetings82D Department of Cultural Affairs

Support for the Member States TotalAdministration 12E Department of Legal Services

32D Office of the Inspector General92A Secretariat for Administration and Finance92B Department of Human Resources92C Department of Budgetary and Financial Services92D Department of Information and Technology Services92E Office of Procurement Services92F Office of General Services

Administration Total



March 26, 2008

Area Subprogram NameInfrastructure and Common Costs 102A Equipment and Supplies - Computers

102B Office Equipment and Supplies 102C OASES System 102D Building Management and Maintenance 102E General Insurance 102F Post Audits 102G Recruitment and Transfers 102H Terminations and Repatriations

102I Home Leave 102J Education and Language Allowance, Medical Examinations

102K Pension for Retired Executives and Health and Life Insurance for Retired Employees 102L Human Resources Development 102M Contribution to the Staff Association 102N Contribution to the AROAS

Infrastructure and Common Costs Total



March 26, 2008

2008 2009 Amount %

Democracy and GovernanceRegular Fund 6,066.5$ 6,432.1$ 365.6$ 6.0%Specific Funds 17,066.5 22,201.0 5,134.5 30.1%

Sub Total 23,133.0 28,633.1 5,500.1 23.8%

Human RightsRegular Fund 5,377.6 5,526.5 148.9 2.8%Specific Funds 3,421.7 3,572.5 150.8 4.4%

Sub Total 8,799.3 9,099.1 299.8 3.4%

Integral DevelopmentRegular Fund 20,189.3 20,644.2 454.9 2.3%Specific Funds 20,913.0 30,233.0 9,320.0 44.6%Voluntary Fund 5,983.1 5,996.5 13.4 0.2%

Sub Total 47,085.4 56,873.8 9,788.4 20.8%

Multidimensional SecurityRegular Fund 5,613.9 5,745.1 131.2 2.3%Specific Funds 18,005.3 25,185.2 7,179.9 39.9%

Sub Total 23,619.2 30,930.2 7,311.0 31.0%

Policy DirectionRegular Fund 8,239.7 8,500.0 260.3 3.2%Specific Funds 333.0 1,761.1 1,428.1 428.9%

Sub Total 8,572.7 10,261.1 1,688.4 19.7%

Support for the Member StatesRegular Fund 17,273.6 17,869.0 595.4 3.4%Specific Funds 1,656.9 2,941.3 1,284.4 77.5%

Sub Total 18,930.5 20,810.2 1,879.7 9.9%

AdministrationRegular Fund 12,676.5 13,179.1 502.6 4.0%Specific Funds 2,444.3 2,809.5 365.2 14.9%

Sub Total 15,120.8 15,988.6 867.8 5.7%

Infrastructure and Common CostsRegular Fund 12,062.9 12,229.0 166.1 1.4%Specific Funds - 1,284.0 1,284.0 100.0%

Sub Total 12,062.9 13,513.0 1,450.1 12.0%

Total 157,324$ 186,109$ 28,785$ 18.3%

Variance

Comparative summary of appropriations (by Fund and Area)

$30 16% $9

5%

$56 30% $31

17%

$10 5%

$21 11%

$14 7% $16

9%

20

2009 Proposed Program-BudgetAreas 2008 versus 2009 – All Funds


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Democracy and Governance Human Rights Integral Development Multidimensional SecurityPolicy Direction Support for the Member States Administration Infrastructure and Common Costs

$24 15% $9

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$12 8%

$24 15%

$19 12%

$9 5%

$15 10%

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sMarch 26, 2008

21

2009 Proposed Program-BudgetFinancing


2008 2009

Approved Proposed

Sources of FinancingQuota Assessments 76,107.0$ a) 78,593.0$ b)

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 paymentcredit waiver and/or Reserve Subfund 6,693.0 6,751.6

87,500.0$ 90,125.0$

a) Total 2008 quota assessment, including overquota = $77,447.9.b) Quota assessment per quota scale in AG/ RES. 1 (XXXIV-E/ 07) plus a 3.0% increase in quota base.

22

2009 Proposed Program-BudgetReserve Subfund


2007 2008 2009Actual a) Approved b) Projected b)

I ncome 82.4 87.5 90.1

Expenditures and Obligations 80.5 87.5 90.1

Operating Balance 1.9 0.0 0.0

Beginning Reserve Sub-fund Balance (J anuary 1) 13.9 17.3 10.515.8 17.3 10.5

Less:Restricted for Fellowships (2006) (1.8) - - Restricted for Fellowships (2007) (2.2) - - Restricted for 2008 Regular Fund financing pursuant to AG/RES. 1 (XXXI I I -E/07) (5.4) Proposed source of financing for 2009 Regular Fund (subject to approval) (6.8) -

6.4 10.5 10.5

Quotas receivable pending at December 31, 2007 10.9 - -

Reserve Subfund at December 31, 2007 17.3 10.5 10.5

Notes:

a) Actual 2007 Operating Results of the Reserve Sub-fund. b) Assumes that in 2008 and 2009 all income will be received and expended.

Reserve Sub-fund ProjectionsFrom January 1 to December 31

(in millions)

updated 7/22/08

23

IIISummary of Decisions To-date and Next Steps


24

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).

JULY- SEPTEMBER 2008

■ CAAP recommends budget expenditure ceiling and financing sources.

■ CAAP presents report to the Permanent Council/ PrepCom by Sep. 12.

■ PrepCom convenes the XXXVI Special Session of the General Assembly by 9/30/08.

■ By September 30, Special GA approves 2009 budget and its financing

2009 Proposed Program-BudgetJuly 22, 2008

25

IV. Subsequent Challenge: Finding Long-Term Solutions

■ Pursuant to resolution AG/RES. 2437 (XXXVIII-O/08), the Permanent Council is required to convene, in a special session by December 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 maintain 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% for the 12-month period ending June 2008.

■ US dollar posting losses against major currencies.■ Improved quota collections have eliminated the receivables of prior periods which have

contributed to finance the budgets up to 2009. The gap starting in 2010 needs to be closed by a one-time quota increase, a one time program reduction or a combination of both.

2009 Proposed Program-BudgetJuly 22, 2008