Presentation on theme: "1 PROPOSED PROGRAM-BUDGET FOR 2011 Overview and Guide August 13, 2010 Presentation for CAAP."— Presentation transcript:
1 PROPOSED PROGRAM-BUDGET FOR 2011 Overview and Guide August 13, 2010 Presentation for CAAP
Table of contents Overview Role of CAAP and Basic Documents 3-4 Lima General Assembly Resolution Quota Assessments 6 Roles in decision-making: Aug. – Sep Proposed Program-Budget for 2011 Program-Budget of the Organization – Budget levels for 2010 and Adjusting the 2010 Budget to the 2011 Approved Levels 9 Key Criteria Considered in Formulating the 2011 Budget Proposal 10 Secretary Generals Proposal Assumptions 11 Personnel (Object 1) Non-Personnel (Objects 2-9) Analysis Distribution & Variations by Programmatic Areas – All Funds Distribution & Variations by Programmatic Areas – Regular Fund Distribution of Departments by Programmatic Areas Changes in Programmatic Structure in 2011 (vs. 2010) Variations by Department - Top Impact of Regular Fund Budget Adjustments in 2011 by Programmatic Area31-38 Page
3 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. Reviews periodic GS/OAS resource management reports (budgetary, financial and administrative). Monitors implementation of mandates and other measures of performance, as required by the PC or the General Assembly (GA). Prepares the draft annual Program-Budget Resolution for consideration by the Preparatory Committee of the GA. Source: Rules of Procedure of the Permanent Council:
4 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 (XXXVIII-E/09) Program-Budget of the Regular Fund of the Organization for 2010, quota assessments and contributions to FEMCIDI for 2010; AG/RES (XL – O/10) Financing of the 2011 Program-Budget of the Organization. Additional Key Documents: Approved Program-Budget of the Organization for 2010: AG/RES. 1 (XXXVIII-E/09). Proposed Program-Budget of the Organization for 2011: [CP/doc.4503/10]. Quarterly Resource Management Reports, Financial Statements, and other CAAP documents issued in 2009/10. Report to the Permanent Council – Annual Audit of Accounts and Financial Statements for the years ended December 31, 2009 and 2008 [CP/doc.4489/10].
5 Lima General Assembly Budget Resolution AG/RES (XL – O/10) Resolves, To establish the overall budget level of the Regular Fund program-budget for 2011 at $85,350,800, and to finance it as follows (figures in millions of USD):
Quota assessment adjustment of 3% (for gap reduction), totaling $2.4 M, as approved by the Lima GA 25 Member States assessments increase by less than $5,000. Another five will increase between $13,100 and $76,300. The top four contributors absorb over 88% of the increase Quota Assessments *Base quota for 2011 is equal to the 2009 level. Resolution AG/RES. 1 (XXXVIII – E/09) provided a reduction of 0.1% in 2010, but it also indicated that The reduction in the amount of member state contributions is exclusively for 2010 under paragraph II.2.f. ** Figures in thousands, rounded to the first decimal.
7 CAAP Analysis of the Secretary Generals Proposal. Reach consensus on modifications, if any. Agree on the wording of the Budget Resolution. Examine other topics: – Provisions of an administrative and budgetary nature (Section III of the budget resolution). – Proposed changes to the General Standards in support of efforts to reengineer and streamline human resources management. Secretariat for Administration and Finance (SAF) Provide technical support to the CAAP. Incorporate CAAP agreements into the 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: Aug. – Sep. 2010
8 Projected Budget Level for 2011 Program-Budget of the Organization for 2011 (Figures in thousands of USD) Approved Budget Level for 2010
9 Budget ceiling of $85.3 Million and cost adjustments of $4.8 Million (Figures in millions of USD) 2011 Regular Fund Budget Adjusting the 2010 Budget to the 2011 Approved Levels
10 Key Criteria Considered by the General Secretariat in Formulating the 2011 Budget Proposal Decision of the Lima GA to reduce the Regular Fund (RF) budget ceiling from $90.1M to $85.3M. 2009/2010 preliminary prioritization exercise by the Member States. Informal consultations with Member State authorities. Relative capacity of the areas of the General Secretariat to develop programs that have an impact and attract external financing.
11 Secretary Generals 2011 RF Budget Proposal Assumptions 2011 average inflation estimated at 1.5%. Personnel cost increases for 2011 estimated at $1.4 M: Impact of 2010 increases on the 2011 budget:$0.5 M 2011 statutory remuneration adjustments: 0.5 M Mandatory step increases: 0.3 M Health insurance premiums: 0.1 M $1.4 M The Organizations cost of staff and retirees health insurance premiums is budgeted to increase by 1.5% in Operational costs (electricity, heating, supplies, maintenance and custodial services) are budgeted at the 2010 levels in the proposed non-personnel budget, even though they are expected to experience some inflationary increases. RF personnel costs remain below the 64.38% threshold established by resolution AG/RES 1 (XXXVIII – E/09).
12 Position reductions of $4.6 Million Number of positions financed by the Regular Fund is reduced in 2011 by a net of forty-five to absorb $1.4 million in anticipated statutory increases and to secure an additional $3.2 million in payroll reductions. To achieve these reductions, the following situations were considered: – Positions vacated when incumbent reaches retirement age – Positions vacated through voluntary separation, expiration of contract, resignation, or internal transfer – Elimination of frozen positions without funding – Terminations due to area re-structuring (i.e., IIN) – Transfers to Specific Funds Secretary Generals Proposed 2011 RF Budget Personnel (Object 1)
Secretary Generals Proposed 2011 RF Budget Personnel (Object 1) cont. RF Position reductions, and proposal for % reduction in RF staff positions, 1999 – % reduction in RF staff positions, 2010 –
– The GA approved 534 positions for FY 2010 – 52 positions are being eliminated in the 2011 Proposed Budget: 6 of the 52 positions were authorized by the GA for 2010, but remained unfunded. Of the 46 funded positions, 38 had been identified as of 7/14/10 for abolishment and are reflected in the 2011 Proposed Budget: Eight additional positions are slated for abolishment before the end of 2010 : – Seven positions were created in 2010, bringing the net number of position reductions to 45 (52-7). 14 Position reductions of $4.6 Million, by grade level (projected): Secretary Generals Proposed 2011 RF Budget Personnel (Object 1) cont.
15 Secretary Generals Proposed 2011 RF Budget Personnel (Object 1) cont. Net reduction of 45 positions, from 534 in 2010 to 489 in 2011 (-8.4%).
Secretary Generals Proposed 2011 RF Budget Personnel (Object 1) cont. Position reductions in 2011 (vs. 2010) by Programmatic Area (see definition of program areas in slides 26 – 28) 16
17 Secretary Generals Proposed 2011 RF Budget Non-Personnel Costs (Objects 2-9) $175,600 increase for Human Rights in the non-personnel budget: $55,000 for the operational budget of the Court, and $120,600 to enhance the honoraria for judges and commissioners ($78,600 and $42,000, respectively). The 2010 Budget Resolution AG/RES. 1 (XXXVIII – E/09), authorized raising honoraria for judges and commissioners to $300 per day while in session, but it was not budgeted in $40,000 increase in the non-personnel budget for the Inter-American Commission Against Terrorism (CICTE) for meetings previously covered ad hoc from the Unprogrammed Meetings line item in Chapter 2 of the Budget. Decrease Regular Fund budgetary transfer to the Inter American Defense Board: $0.4 M: Current annual transfer to the IADB is $1.5 Million. Under this proposal, IADB would maintain support to the Inter-American Defense College (currently the College receives $930,000 from this subsidy). Security and upkeep of Casa del Soldado remains a responsibility of the IADB.
18 Secretary Generals Proposed 2011 RF Budget Non-Personnel Costs (Objects 2-9) (cont.) Adjustment of $400,000 for scholarships, as a result of increased efficiency in the management of the program, without reducing the number of awards or the academic quality of the program. Non-Personnel 2010 budget is $6.6 Million; proposal for 2011 is $6.2 Million (Objects 2-9). $3.6 Million will be needed in 2011 to finance current scholarships. Reduction in scholarship funding of $0.4 M.
19 Across-the-board reduction of 15% to Object 8 (CPRs), or $0.6M. Reduction of $150,000 in telephony and computer equipment costs. Reduction of 10% - 33% in administrative expenses (Objects 4-6 and 9) across all areas. Resources for major urgent repairs and building improvements are not contemplated. Secretary Generals Proposed 2011 RF Budget Non-Personnel Costs (Objects 2-9) (cont.)
and 2011 Distribution by Programmatic Areas (Figures in thousands of USD)
Distribution by Programmatic Areas – All Funds (Figures in millions of USD)
Variations by Programmatic Areas – All Funds (Figures in thousands of USD)
and 2011 Distribution by Programmatic Areas Regular Fund (Figures in thousands of USD)
Distribution by Programmatic Areas–Regular Fund (Figures in millions of USD)
Variations by Programmatic Areas – Regular Fund (Figures in thousands of USD)
Distribution of Departments by Programmatic Area
Distribution of Departments by Programmatic Area (cont.)
Distribution of Departments by Programmatic Area (cont.)
29 Changes in Programmatic Structure for 2011 (vs. 2010)
Variations Top 10 Rankings Among Departments
Democracy and Governance Elimination of the Department of Special Legal Programs in the SLA. Its program will be redistributed to other Departments, while reducing administrative costs. Larger inflow of resources channeled toward strengthening public institutions in the Member States. 31 Impact of Regular Fund Budget Adjustments in 2011 by Programmatic Area
32 Human Rights Level of resources dedicated to the Court and Commission of Human Rights is preserved. Impact of Regular Fund Budget Adjustments in 2011 by Programmatic Area (cont.)
33 Integral Development Level of resources dedicated to the Inter-American Commission on Women is preserved. Funding for CIDI meetings has been reduced to 80% of current levels. This means that only 3 CIDI Ministerial or Inter American Committee meetings (instead of 4) could be supported. Notwithstanding the reduction of the scholarships budget, at least the same number of scholarships awarded in the current cycle are projected to be awarded in the next cycle. Educational Portal of the Americas lost one position and hence, its capacity will be constrained. Reduced financial and administrative support capacity within the Scholarship and Training Program. This will require periodic support from other areas of the GS/OAS. Consumer Rights and Persons with Disabilities Programs will be incorporated into the Integral Development area. SEDI will move posts internally to those areas within SEDI where the need is greater. Reduced capacity of technical and administrative support for CITEL meetings and its related activities. Impact of Regular Fund Budget Adjustments in 2011 by Programmatic Area (cont.)
34 Multidimensional Security Raised level of financing for meetings of CICTE. Reduced capacity of technical and administrative support for CICTE, CICAD and MISPA meetings and its related activities. No support personnel or additional operational resources for meetings and other activities of the Inter-American Defense Board. Impact of Regular Fund Budget Adjustments in 2011 by Programmatic Area (cont.)
Support for Member States Funding for OAS conferences and meetings of the Permanent Council and its subcommittees will be reduced by 15-20% relative to Timely availability of quality interpretation and translation services for OAS conferences and meetings will be affected. Reduced funding for maintenance and upgrade of communications equipment (including those that support videoconferencing and teleconferencing). Reduced operational capacity in the Columbus Memorial Library. 35 Impact of Regular Fund Budget Adjustments in 2011 by Programmatic Area (cont.)
Policy Direction Greater reliance on Specific Funds to fund activities on issues of major political consequence. 36 Impact of Regular Fund Budget Adjustments in 2011 by Programmatic Area (cont.)
Administration Limited resources may delay implementation of the International Public Sector Accounting Standards (IPSAS). No resources are budgeted for performing post audits to ensure adherence to UN staff classification standards. Reduced resources to support training and staff development will delay the implementation of the Organizations Performance Evaluation System and reduce training opportunities for staff. Reduced resources in the procurement area will affect on-going efforts to streamline and expedite processes and transactions. Efforts will be concentrated on responding to every-day requests, which will be affected as well. The budgeted increase for health insurance cost of 1.5% is below the anticipated inflation rate in the US health sector. Should costs rise above the anticipated increase, the Medical Benefits Trust Fund may be adversely affected. 37 Impact of Regular Fund Budget Adjustments in 2011 by Programmatic Area (cont.)
Infrastructure and Common Costs The cost of urgent repairs to the Main Building is estimated to be $6.0 million. The PC has appropriated $1.2 million to finance some of these repairs. The remaining $4.8 million required to perform repairs to the electrical service equipment ($1.7 M), fire/life safety system upgrades ($2.1 M), and masonry/thermal moisture repairs ($1.0 M) will once again be deferred. Obsolete equipment used for voice, video and webcast transmissions cannot be replaced or upgraded to keep up with current technology. Mission-critical computer and information technology hardware will have to be maintained operational by salvaging parts from previously decommissioned equipment. No software maintenance and upgrades. Vendors do not provide support to outdated software, thus OAS information systems may be placed at risk of external attacks (denial-of-service, malware, spyware, etc.). 38 Impact of Regular Fund Budget Adjustments in 2011 by Programmatic Area (cont.)
39 Per the Secretary Generals directive, every effort has been made to maintain sufficient funding and personnel support for the key activities and programs of the OAS. Nevertheless, there are limits to what can be achieved with reduced resources. A number of anticipated results may take longer to achieve and some services and activities will have to be scaled back or reduced. The availability of Specific Funds (e.g., in Governance & Democracy and Security) will continue to be a central element of the GS/OAS capacity to respond to key objectives of the Organization. Additional financing avenues will need to be explored to resolve the growing gap between infrastructure needs and the availability of resources. CAAP members will have additional opportunities to consider the impact of the proposed budget levels on specific areas and programs of the General Secretariat in their chapter-by-chapter analysis of the SGs 2011 Budget Proposal, including feedback from area Secretaries and Directors. The 2011 RF budget ceiling is set at $85.3 M. Hence, all proposals for upward budgetary adjustment must be accompanied by a proposal for an equivalent reduction elsewhere in the proposed budget. The General Secretariat stands ready to provide further information and analysis to the CAAP as these are requested. In Conclusion