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OAS Quarterly Resource Management Report As of September 30, 2007 Committee on Administrative and Budgetary Affairs (CAAP) 1 SECRETARIAT FOR ADMINISTRATION.

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Presentation on theme: "OAS Quarterly Resource Management Report As of September 30, 2007 Committee on Administrative and Budgetary Affairs (CAAP) 1 SECRETARIAT FOR ADMINISTRATION."— Presentation transcript:

1 OAS Quarterly Resource Management Report As of September 30, 2007 Committee on Administrative and Budgetary Affairs (CAAP) 1 SECRETARIAT FOR ADMINISTRATION AND FINANCE October 2007

2 2/11/20142 What is covered in this presentation? I. Context II.Reports content and 3 rd quarter resource management results III. Next Steps for CAAP and GS/OAS OAS Quarterly Resource Management Report as of SEP-07

3 2/11/20143 I Context OAS Quarterly Resource Management Report as of SEP-07

4 2/11/20144 Context Board of External Auditors Reports to the Permanent Council and Secretary General. Identifies internal control issues and opportunities to improve efficiency. Oversees audits of financial statements. Assesses the resources, work, and plans of the OIG. Recommends corrective action and follow-up. OAS Quarterly Resource Management Report as of SEP-07

5 2/11/20145 Context Recommendation from the Board of External Auditors (March 30, 2007) Continue to develop financial reports that provide, to the extent possible, a link between the use of resources and achievements of strategic goals and objectives in a manner that is most useful to member states, management, and donors… Annual Audit of AccountsQuarterly ReportsProgram-Budget OAS Quarterly Resource Management Report as of SEP-07

6 Context Annual OAS Management Cycle: Annual Audit, RF Program-Budget and Quarterly Reports aligned to CAAPs Agenda Jun 30 Mar 31 1 st Quarterly Report 2 nd Quarterly Report Sep 30 3 rd Quarterly Report Dec 31 Jan 1 Publication of Annual Audit of Accounts Phase 2 SAF inputs budget Information Phase 1 Program-Budget formulation and planning Phase 6 Publication and distribution of the Budget by no later than 60 days after approval Phase 5 (Jun 1 st – Jun 6 th ) Approval of Program-Budget by the GA Phase 4 Discussion and review by CAAP and recommendation to the Preparatory Committee 15 days prior to GA Phase 3 Budget analysis, preparation and presentation 90 days prior to GA Publication of RF 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 MAR) Legend Annual Audit RF Program-Budget Quarterly Reports

7 2/11/20147 II Reports content and 3rd quarter resource management results OAS Quarterly Resource Management Report as of SEP-07

8 2/11/20148 OAS Quarterly Resource Management Report It is an unaudited but authoritative source of information for Member States, Management and donors. Provides a comprehensive resource management overview of the Organization, as of the date of the Report. Provides a status on the recommendations from the Board of External Auditors. Assesses the performance of all components included in the Annual OAS Management Cycle. Identifies management challenges and opportunities within GS/OAS. OAS Quarterly Resource Management Report as of SEP-07

9 2/11/20149 OAS Quarterly Resource Management Report Report format follows similar reports done by private and public organizations: OAS Quarterly Resource Management Report as of SEP-07 Management Discussion and Analysis Provides an overview of the financial position of the Organization and a status report on other management activities. SECTION I Financial Statements and Reports Provides detailed financial statements and projections. SECTION II

10 2/11/ Highlights from 3 rd quarter results Budget Execution as of September 30, 2007 (pages 4-5) Most of the approved budget has been committed, as most areas have obligated more than 95%. This level of commitment leaves areas with little or no spending flexibility for the last quarter of OAS Quarterly Resource Management Report as of SEP-07

11 2/11/ Highlights from 3 rd quarter results Quota Payments as of September 30, 2007 (pages 6-7) For the third quarter of 2007, quota payments have exceeded prior years (Figure 3), while arrears are at the lowest level in the past six years (Figure 4). OAS Quarterly Resource Management Report as of SEP-07

12 2/11/ Highlights from 3 rd quarter results Regular Fund Liquidity Analysis as of September 30, 2007 (pages 7-8) Considering the absence of quota payment plans from most Member States at the beginning of the year, cash projections are primarily based on historical information. In addition to payment plan projections, the cash flow projection considers payments of 2007 assessed quotas of $6.4 million and an advance of $4.9 million of 2008 assessed quotas, based on informal discussions with Member States. OAS Quarterly Resource Management Report as of SEP-07 Backed by payment plans: OCTOBER $0.06 million DECEMBER $11.4 million

13 2/11/ Highlights from 3 rd quarter results Financing surplus (deficit) The Reserve Sub-fund is a temporary cushion to finance budgetary execution pending full receipt of quotas and other income as programmed in the Regular Fund Budget. A financing surplus or deficit is the difference between projected sources of financing and actual financing. Consecutive financing deficits have an unfavorable direct impact on the Reserve Sub-fund and are not sustainable in the long term. OAS Quarterly Resource Management Report as of SEP-07

14 2/11/ Highlights from 3 rd quarter results Financing surplus (deficit) OAS Quarterly Resource Management Report as of SEP-07 As of September 30, 2007 there is a financing deficit of $18.5 million ($65.9 million - $84.4 million ). By year-end, the GS/OAS expects that the $2.9 million from the Reserve Sub-fund will not be required to finance the 2007 Program-Budget. An additional $1.8 million will increase the Reserve Sub-fund by this amount. The Reserve Sub-fund will be further increased with unappropriated resources.

15 2/11/ Highlights from 3 rd quarter results Specific Funds as of September 30, 2007 (pages 11-13) The level of contributions to Specific Funds reached $40.7 million, lower than the past three years, as shown below: Specific Fund estimates are unpredictable. The GS/OAS needs the ability to expand and contract in line with level of Specific Fund contributions. OAS Quarterly Resource Management Report as of SEP-07

16 2/11/ Highlights from 3 rd quarter results OAS Annual Audit of Accounts (pages 14-15) Although behind schedule, Ernst & Young was selected this week to conduct the Annual Audit of Accounts. In regards to the Board of External Auditors, Mr. Joseph Freamo and Mr. Terrance S. Bastian have been elected to serve a three-year and two- year period, respectively. The third member of the Board, serving his last year as a Board Member and as Chairperson continues to be Mr. Howard Krongard. OAS Quarterly Resource Management Report as of SEP-07

17 2/11/ Highlights from 3 rd quarter results Indirect Cost Recovery (ICR) as of September 30, 2007 (pages 16-17) The General Secretariat is working closely with Primary Dependencies (e.g. executive Secretariats of the OAS) to consolidate the new ICR policy issued on May 29, These efforts have focused mainly on project management concepts (e.g., proper costing), through a new inter-departmental Committee on Administrative Matters (CAM). ICR collections will not meet expectations given the transition phase to the new ICR policy: i)ICR policy issued at the end of May 2007; ii)grandfathering of existing agreements; and, iii)Specific Fund contributions lower than expected. OAS Quarterly Resource Management Report as of SEP-07

18 2/11/ Highlights from 3 rd quarter results Human Resources as of September 30, 2007 (pages 18-21) The Headcount is as follows: The GS/OAS is currently developing a report that analyzes the geographic representation at the OAS. OAS Quarterly Resource Management Report as of SEP-07 As recommended by the Board of External Auditors, the GS/OAS has contracted the services of a UN position classification expert to review job descriptions. The GS/OAS is currently implementing a new Performance Evaluation System to align individual objectives to the Organizations goals.

19 2/11/ Highlights from 3 rd quarter results OAS Building Facilities as of September 30, 2007 (pages 21-22) The approved 2007 Regular Fund Program-Budget provided the General Secretariat with $4.8 million for the mortgage, management and upkeep of its real estate resources. In addition, these costs are covered with rental income as shown below. The available balance as of September 30, 2007 is $909 thousand. OAS Quarterly Resource Management Report as of SEP-07

20 2/11/ Highlights from 3 rd quarter results Information Technology (IT) Services (pages 23-24) The General Secretariat is upgrading various levels of hardware and software in close collaboration with end users. The upgrade will help make OASES compatible with newer technology and more user-friendly, establishing the ground to implement further improvements such as Oracle Project Management. This tool will include the full project lifecycle, from planning budgets to monitoring performance, enabling project managers to operate more efficiently and effectively. Other important IT projects this year: i) modern network topology for the Main Building; ii) Voice Mail System Upgrade; iii) Secure Communications System (Groove); iv) OAS Broadcasting System (OAS Mail Manager), among others. OAS Quarterly Resource Management Report as of SEP-07

21 2/11/ Highlights from 3 rd quarter results Procurement Services (pages 25-28) The Board of External Auditors has requested to continue to strengthen the CPR oversight process. Develop a plan to manage the CPR process… The GS/OAS has initiated a full scale review of the CPR requirements and processes to improve the application of this hiring mechanism. In regards to travel related activities, the GS/OAS contracted Omega World Travel (Omega) since February, improving travel accountability and oversight, while enhancing reporting capabilities. In regards to fixed assets, the Board recommended to Improve the reconciliation of fixed asset tracking records and the inventory accounts. The GS/OAS will upgrade to Oracle Fixed Assets software during 2008 to automate OAS asset management, simplifying accounting tasks such as reconciliations. OAS Quarterly Resource Management Report as of SEP-07

22 2/11/ III Next Steps for CAAP and GS/OAS OPERATING PLAN – DBFS/FRC Section

23 2/11/ Next Steps for CAAP and GS/OAS Present methodology for setting the scale of quota assessments approved by the Permanent Council and General Assembly. Support General Assemblys approval of the 2009 Program-Budget. Initiate training plan for GS/OAS staff on internationally-accepted accounting standards. Continue to consolidate project management and the new ICR policy. Address human resource needs in critical areas. Reform procurement and contracting mechanism for temporary support personnel. OAS Quarterly Resource Management Report as of SEP-07 CP19079E


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