1. Proposed Program-Budget for 2014

2. 4. To request the Secretary General that the proposed program-budget for 2014, reflect a proportional across-the-board impact among the budgetary chapters and sub-programs of the absorption of the statutory increases in personnel compensation and reduction of total income compared to the previous budgetary period. AG/RES. 2776 (XLIII-O/13) FINANCING OF THE 2014 PROGRAM-BUDGET OF THE ORGANIZATION

3. SG's 2013 RF Budget Proposal Assumptions 2014 average inflation estimated at 2.4% Inflationary impact on personnel costs in 2014 estimated at US$1.9 million Impact of 2013 increases on the 2014 budget:US$0.6 million 2014 statutory remuneration adjustments: US$0.8 million Step increases: US$0.3 million Health and Life insurance premiums:US$0.2 million US$1.9 million The health insurance premiums for OAS retirees are increasing by 4.0% in 2014. RF personnel expenditures are set at 65% of the Fund's budget total, compared to 64.38% in the Approved Budget for 2013. Considerations of the General Secretariat CP/CAAP-3253/13 add.1

4. Secretary General's Proposed 2014 RF/ICR Budget Decreases Overall 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 offset 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$0.07 million reduction in subsidies to the Inter-American Defense Board and the Pan American Development Foundation (PADF). Secretary General's Proposed 2014 RF/ICR Budget Decreases

5. Secretary General's Proposed 2014 Budget Increases US$0.5 million to fund modernization of information technology and telecommunications capabilities. US$0.5 million to implement International Public Sector Accounting Standards (IPSAS). US$0.13 million for health insurance coverage for retirees. US$0.02 to the Young Americas Business Trust (YABT), reflecting actual execution in the current and previous years. Indirect Cost Recovery (ICR) compared to 2013 approved appropriation level: Additional US$450,000 in ICR to meet increased demand for support to Specific Fund (SF)-funded activities. Secretary General's Proposed 2014 Budget Increases

6. Secretary General's Proposed 2014 Budget Transfers US$740,000 repayment to the Fellowships Capital Fund transferred to Chapter 11 from Chapter 8. US$20,000 from Chapter 12 to Chapter 5 to fund meetings of REMJA. US$60,000 from Chapter 12 to Chapter 6 to fund meetings of Multidimensional Security. US$120,000 from Chapter 12 to Chapter 8 to fund meetings of CIDI. US$30,000 from Chapter 12 to Chapter 8 to fund CITEL's Assembly. Secretary General's Proposed 2014 Budget Transfers

7. Proposed Program-Budget for 2014 by source of financing

8. 3. To set the overall expenditure ceiling of the Indirect Cost Recovery Fund account to US$5,250,000, which excludes the transfer of US$1,500,000 to the Regular Fund as established in paragraph 2.c above, in accordance with the General Standards, provided that said amount is actually collected AG/RES. 2776 (XLIII-O/13)FINANCING OF THE 2014 PROGRAM-BUDGET OF THE ORGANIZATION

9. 167,473.5 Program-Budget by Pillar (All Funds)

10. 82,978.0 Regular Fund Financing

11. Regular Fund by type of expenditure 82,978.0

12. Regular Fund by type of expenditure (breakdown)

13. Regular Fund.- Distribution by Pillar and by type of expenditure

14. 7,402.0 Pillar: Democracy and Governance.- Regular Fund by type of expenditure

15. Pillar: Human Rights.- Regular Fund by type of expenditure 9,371.7

16. Pillar: Integral Development.- Regular Fund by type of expenditure 14,149.2

17. Pillar: Multidimensional Security.- Regular Fund by type of expenditure 5,592.5

18. Pillar: Support to member states.- Regular Fund by type of expenditure 14,445.9

19. 6,889.7 Pillar: Executive Management.- Regular Fund by type of expenditure

20. Pillar: Administration.- Regular Fund by type of expenditure 12,962.1

21. Pillar: Infrastructure and Overheads.- Regular Fund by type of expenditure 12,154.9

22. Comparison of 2013 and 2014 Regular Fund, by program

24. Occupational structure, Managerial and Professional Staff (2012-2014)

25. Occupational structure, General Services Personnel (2012-2014)

26. Positions, by Program and level