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ESTIMATING COSTS OF THE RESOLUTIONS

Department of Planning and Evaluation

Secretary of Administration and Finance

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Objectives

1. Identify the different types of mandates contained within the Resolutions.

2. Study the scope of the mandates for the General Secretariat.

3. Define the most appropriate methodology for estimating the costs of each mandate.

4. Understand the procedures for estimating costs.

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Basic content

– Context and purpose for estimating costs – Analyze the resolutions and their mandates – Methodologies for estimating costs – Introduction to the design and formulation of programs and

projects– Introduction to operational planning– Analyze inputs and costs– Alternative procedures for assigning resources.

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Context and Purpose for Estimating Costs

It is necessary to count on preliminary information for setting priorities and allocating resources.

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Analysis of the Resolutions and their mandates

Resolutions Costs

Different types of mandates

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Analysis of the Resolutions and their mandates

Types of mandates according to whom they are addressed:

• To the Member states• To the General Secretariat generate

costs• Declarative

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Types of mandates according to their scope:

1. Strategic2. Programmatic3. Operational

Analysis of the Resolutions and their mandates

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1. Strategic Mandates• Establish an end goal of strategic value, whose scope can

include the Member states and eventually the General Secretariat

• Constitute the basis for formulating and executing a program carried out by the General Secretariat

• Can either identify specific products and objectives or not

• Their collective scope depends on additional decisions at the institutional level during the medium-term

Analysis of the Resolutions and their mandates

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2. Programmatic Mandates– Entail a strategic end and, in order to contribute to their

accomplishment, establish a specific purpose.– Also constitute the basis for formulating and executing a

program or project carried out by the General Secretariat.

– Can either identify specific products or not. – Their particular scope depends on decisions at an

operational level in the short-term.

Analysis of the Resolutions and their mandates

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3. Operational Mandates

– Establish specific products or activities– Their scope is relatively defined/limited

Analysis of the Resolutions and their mandates

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Methodologies for estimating costs

The selection of the methodology depends on the type and scope of the mandate. 1. Estimating costs as part of the design and

formulation of a project.2. Estimating costs of specific products.3. Estimating costs of activities.

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Introduction to the Design and Formulation of Programs and Projects

What is a program?A collection or set of projects that share the same end goal and

to which each individual project contributes to the whole by satisfying a requirement or by solving a problem. Each project is necessary for achieving the end goal but none of them is sufficient on their own.

What is a project? A collection of activities carried out to reach established

objectives, designed to produce results in a limited term and with budgeted resources.

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Instruments for designing projects:– Analysis of the resources involved – Analysis of problems– Analysis of objectives– Logical Framework matrix

Introduction to the Design and Formulation of Programs and Projects

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Introduction to the Design and Formulation of Programs and Projects• THE STRUCTURE OF THE LOGICAL FAMEWORK MATRIX (LFM)

Narrative summary of objectives and activities INDICATORS MEANS OF VERIFICATION ASSUMPTIONS

GOAL

PURPOSE

OUTPUTS

ACTIVITIES

Budget (inputs)

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Analysis of Inputs and CostsProcedure for estimating costs of the activities:

1. Define the dimension and scope.2. Define tasks that are consistent with each activity 3. Identify inputs required for each activity 4. Establish the quantity of inputs required, according to the dimension

and scope of the activity.5. Estimate the unit cost of each input.6. Calculate the total cost of each input.7. Calculate the aggregated costs per activity.

Once the costs per activity have been defined, it is possible to calculate the aggregated costs of the products and of the project

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Introduction to Operational Planning• Strategic and operational planning

• Operational planning and programming

• Formulation of operating goals

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Attributes of operating goals

Introduction to Operational Planning

Specific S) Clearly defines what needs to be measured

Measurable M) Can be monitored

Achievable A) Is realistic, not overly modest and not overly ambitious

Relevant R) Is related to the objective to be achieved and the result to measured

Time-bound/ - T) Expresses beginning and end/ Timely- in the moment in Timely which it is needed

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Methods for estimating costs of operating goals:

1. Zero base2. Distribution of allocated resources

Introduction to Operational Planning

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Alternative procedures for assigning resources

1. Assigning resources by priorities 2. Multi-year assignment

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Conclusions– It is always possible to estimate costs if the type of

mandate is properly interpreted.– There is not one singular way to estimate costs.– There is not a singular value for the cost of each

mandate– For what purpose do we estimate costs?