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1 PROPOSED PROGRAM-BUDGET FOR 2014 Overview and Guide August 13, 2013.

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Presentation on theme: "1 PROPOSED PROGRAM-BUDGET FOR 2014 Overview and Guide August 13, 2013."— Presentation transcript:

1 1 PROPOSED PROGRAM-BUDGET FOR 2014 Overview and Guide August 13, 2013

2 Table of contents Overview What is new in 2014? 3 Role of CAAP 4 Basic Documents 5 Roles in decision-making: Aug. – Oct General Assembly Resolution on financing 7 Proposed Program-Budget for 2014 Program-Budget of the Organization – Budget levels for 2013 and Key Criteria Considered in Formulating the 2014 Budget Proposal 9 Secretary Generals Proposal Assumptions 10 Changes to programmatic structure11 Personnel (Object 1) 15 Decreases over Increases over Transfers18 Concluding Observations19 Page

3 3 What is new in 2014? Results based budget providing links between pillars, sub-pillars, groups of mandates, programmed results and resources by fund Summary comparisons by subprogram Tables that expand the data by subprogram, fund, and object of expense Personnel tables detailing year-over-year comparisons, including for the first time for Specific Fund staff Calendar detailing the consultative process, leading up to the discussion and approval of the program-budget New annexes: Budgeting by mandates: estimates of costs related to groups of mandates, pillars and sub-pillars Contribution of human resources (in terms of cost) to operating goals, by funding source (RF, ICR, other funds) Table of average cost of personnel by grade, fund and location (headquarters or away from headquarters) used to estimate object 1 expenditures Explanation of variances between 2013 and 2014 budgets

4 4 Role of CAAP Examines, evaluates and makes recommendations to the Permanent Council (PC) in relation to the programs, budget, administration, and financial aspects of the operations of the GS/OAS referred to it by the PC. Monitors implementation of mandates and other measures of performance, as required by the PC or the General Assembly (GA). Reviews periodic GS/OAS management and performance reports (Quarterly Reports) Establishes Working Groups (WG) to carry out technical review of the Quarterly Reports and the Secretary Generals annual Proposed Program Budget Prepares the draft annual Program-Budget Resolution for consideration by the Preparatory Committee of the GA. Source: Rules of Procedure of the Permanent Council:

5 5 CAAP Basic Documents Legal Framework, Mandates: Charter of the OAS. General Standards to Govern the Operations of the GS/OAS. Budget resolutions: AG/RES. 1 (XLIII-E/12) Program-Budget of the Regular Fund of the Organization for 2013, quota assessments and contributions to FEMCIDI; AG/RES (XLIII – O/13) Financing of the 2014 Program-Budget of the Organization. Additional Key Documents: Proposed Program-Budget of the Organization for 2013 CP/doc. 4932/13. Quarterly Resource Management Reports, Financial Statements, and other CAAP documents issued in 2012/13. Report to the Permanent Council – Annual Audit of Accounts and Financial Statements for the years ended December 31, 2012 and 2011 (CP/doc.4860/13). Draft Work Plan of the CAAP July 2013 – May 2014 (CP/CAAP-3249/13 ) presented by the Chairman of CAAP on 26 July 2013

6 6 CAAP Establishes one formal working group, pursuant to AG/RES (XLIII – O/13), to undertake an in-depth technical analysis of the Program-Budget proposal. Delegates normally requested to submit their recommendations in writing to the Chair. Upon submission of the working groups recommendations to the CAAP, a second working group undertakes the task of drafting the text of the Resolution Program- Budget of the Regular Fund of the Organization for 2014 and Contributions to FEMCIDI Secretariat for Administration and Finance (SAF) Provide technical support to the CAAP. Incorporate and publish final General Assembly decisions in an approved budget document. Committee Secretary Arrange scheduling of formal and informal meetings, preparation of minutes, and participation of other GS/OAS areas in the deliberations of the CAAP. Roles in decision-making: August – October 2013

7 7 General Assembly Budget Resolution AG/RES (XLIII – O/13) Resolves, To set the overall budget level of the Regular Fund program-budget for 2014 at $82,978,200, and to finance it as follows (figures in millions of USD):

8 8 Program-Budget of the Organization for 2014 (Figures in thousands of USD)

9 9 Key Criteria Considered by the General Secretariat in Formulating the 2014 Budget Proposal Decision of the GA to reduce the Regular Fund (RF) budget ceiling from US$83.9 in 2013 to $83.0 million in 2014 (US$ thousand). Prompt Payment Credit effect on quota income: US $552 thousand Increased projection of ICR income by US$ 450 thousand GAs decision to implement across-the-board reductions on all the chapters of the program-budget Diminished interest income to the RF Increased resources in Specific Funds and ICR contributions Separate budgetary appropriations for Sub-committees of the PC Separate budgetary appropriations for YABT and meetings of REMJA, CITEL, CIDI and Multidimensional Security Repayment to the Fellowships Capital Fund to be budgeted under chapter 11 No provision to re-capitalize Reserve Sub-fund Resources allocated to IPSAS implementation: US$ 0.5 million

10 10 Secretary Generals 2014 RF Budget Proposal Assumptions 2014 average inflation estimated at 2.4%. Inflationary impact on personnel costs in 2014 estimated at $1.9 M: Impact of 2013 increases on the 2014 budget:$0.6M 2014 statutory remuneration adjustments: 0.8 M Mandatory step increases: 0.3 M Health and Life insurance premiums: 0.2 M $1.9 M The Organizations health insurance premiums for staff and retirees are increasing by 4.0% in RF personnel expenditures proposed at 65% of the funds budget total, compared to 64.38% in the Approved Budget for 2013

11 11 Structural changes 2014 In Chapter 4, Segregation of IADB Subsidy in two parts: Inter-American Defense Board (43A) Maintenance Casa del Soldado (43E) Inter-American Defense Board

12 12 Structural changes 2014 (cont.) Merger of two departments in Chapter 8, transfer of Employment activities to DHDEC (83F), which is now renamed Department of Human Development, Education and Employment Department of Economic Development, Trade and Tourism (83C) Department of Social Development and Employment (83E) Department of Economic and Social Development (83C) Department of Human Development, Education and Employment (83F) Employment

13 13 Structural changes 2014 (cont.) In Chapter 11, separate budget appropriations detailing technology- and maintenance-related expenditures Technology-related costs OAS Network and IT Infrastructure Services (113A) Telecommunications Infrastructure (113Y) Enterprise Resource Management System (113C) IPSAS Infrastructure and support (113Q) Maintenance-related costs Building Management and Maintenance (113D) Building Maintenance - Utilities (113Z) Building Maintenance - Cleaning (113U) Building Maintenance - Security (113V)

14 14 Structural changes 2014 (cont.) In Chapter 12, Separate budget appropriations for meetings of the Organization Meetings of the Permanent Council (123D) Permanent Council (123D) Preparatory Committee (123E) General Committee (123F) Committee on Juridical and Political Affairs (123G) Committee of Hemispheric Security (123H) Committee on Administrative and Budgetary Affairs (123I) Meetings of CISC (123J) Special General Assemblies (123K) Un- programmed Meetings (123C) Meetings of REMJA (53E) Meetings of Multidimensional Security (63H) Meetings of CITEL Assembly (83J) Meetings of CIDI (83K)

15 15 Number of funded posts in the Regular Fund reduced from 444 to 437, including: Positions vacated when incumbent reaches retirement age Positions vacated through voluntary separation, expiration of contract, or resignation The budget includes 44 posts funded by Indirect Cost Recovery (ICR) Fund As of June 30, 2013 there were 123 post funded by specific funds, including those of 13 associate staff (secondments from government agencies/other entities from member States or permanent observers) Secretary Generals Proposed 2014 RF/ICR Budget Personnel (Object 1)

16 16 Secretary Generals Proposed 2014 RF/ICR Budget Decreases Overall Regular Fund reduction of US$ 0.9 million pursuant to AG/RES 2776 US $1.3 million reduction in Terminations and Repatriations US $ 0.5 million reduction in debt repayment for GSB renovation US $ 0.5 million reduction in contribution to Reserve Fund US $0.4 million reduction in object 3 resources for the Department of Human Development, Education and Employment, to be compensated by a large increase in specific-funded scholarships, most notably a 5-year commitment of US$ 12 million US $ 0.3 million reduction in travel expenses US $.07 million reduction in subsidies to the Interamerican Defense Board and PADF

17 17 Secretary Generals Proposed 2014 Budget Increases RF Increases compared to 2013 approved appropriation level: $ 0.5 million to fund modernization of information technology and telecommunications capabilities $ 0.5 million to fund IPSAS implementation $ 0.13 million for health insurance coverage to retirees. $ 0.02 million to the YABT, reflecting actual execution in current and previous years ICR Increase compared to 2013 approved appropriation level: Additional US$ 450 thousand in ICR to meet increased demand for support to SF- funded activities

18 18 Secretary Generals Proposed 2014 RF Budget Transfers $740 thousand repayment to the Fellowships Capital Fund transferred to Chapter 11 from Chapter 8 $20 thousand from Chapter 12 to Chapter 5 to fund meetings of REMJA $60 thousand from Chapter 12 to Chapter 6 to fund meetings of Multidimensional Security $120 thousand from Chapter 12 to Chapter 8 to fund meetings of CIDI $30 thousand from Chapter 12 to Chapter 8 to fund CITELs Assembly

19 19 $0.9 million reduction in the Regular Fund, $7.2 million increase in Specific Fund and ICR income, net increase of $6.4 million Program-Budget for 2014 (All Funds). Absorption of statutory increases in Regular Fund personnel costs (COLA and step increases) through reductions to non-personnel expenditures. Greater transparency of appropriations for conferences, maintenance, and technology-related expenses. $740,000 repayment of loan to Capital Fellowship Fund, transferred to Chapter 11 (Common Costs); Reserve Fund contribution eliminated from Chapter 11. The Budget proposal includes an Overview table by subprogram comparing 2014 and 2013, which Secretariat will make available in an Excel version for the use of delegations during deliberation on the budget. Concluding Observations

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