1. 1 OAS Financial Management Challenges and Program- Budget Implications 1 SECRETARIAT FOR ADMINISTRATION AND FINANCE October 2008

2. 2 What is covered in this presentation? I.General Assembly Mandates II.Program - Budget Elements III.Financial Challenges IV.Bottom Line… V.OAS Annual Management Cycle

3. 3 I General Assembly Mandates

4. 4 Paragraph III.2.c.(iii) To request to the Permanent Council to consider, in a special session to be held prior to December 15, 2008: The recommendations of the Board of External Auditors with regards to periodic quota adjustments. Reports of the General Secretariat: A comprehensive plan for implementing austerity measures and expenditure rationalization. Actual disbursement for statutory adjustments resulting from smart parity. Variations between actual and estimated statutory adjustments, and Suggestions to regularly address the financing of the variations between actual and estimated costs. … and to convoke, prior to January 31, 2009, a special session of the General Assembly to adopt, if appropriate, those decisions that may be required. General Assembly Mandates AG/RES 1 (XXXVI-E/08)

5. 5 General Assembly Mandates AG/RES 1 (XXXVI-E/08) (Cont.) Paragraph III.2.d To instruct the Permanent Council to conduct, beginning October 2008, a thorough review of all resources and expenditures of the Organization in the context of existing mandates, in order to prioritize and optimize the use of resources for future program-budgets, within the capacity of the member states to finance them, and to provide a report to the General Assembly at the special session to be held prior to January 31, 2009.

6. 6 II Program-Budget Elements

7. 7 * Balance excludes Tax Reimbursement receivable of $3.6 million. Program-Budget Elements Audited Fund Balances as of December 31, 2007 (in millions) Funds

8. 8 Program-Budget Elements 2008 Approved Program-Budget – Grouped by Theme (in millions) Regular Fund: Specific Funds: Voluntary Fund: Total: $ 87.5 $ 63.8 $ 6.4 $ 157.7

9. 9 Program-Budget Elements 2008 Approved Program-Budget – Grouped by Theme and Fund (in millions)

10. 10 Program-Budget Elements 2008 Approved Program-Budget - Grouped by Theme and Object of Expenditure (in millions)

11. 11 Program-Budget Elements Theme composition by sub-program

12. 12 Program-Budget Elements Theme composition by sub-program (cont.)

13. 13 Program-Budget Elements 2009 Approved Program-Budget Comparative summary of appropriations (by Fund): (in millions) 2009 Program-Budget percentage contribution by each Fund: (in millions) * Revised estimates for Specific Funds as of October 1, 2008. ** Actual Pledges received in 2008. * **

14. 14 Program-Budget Elements 2009 Regular Fund Approved Program-Budget – Grouped by Theme ($ in millions) Regular Fund Total: $90.1

15. 15 III Financial Challenges

16. 16 Financial Challenges 1999-2009 Program-Budgets. Approved levels in constant 1999 dollars (in millions)

17. 17 Financial Challenges Quota Assesments 1999-2009. Approved levels in constant 1999 dollars (in millions)

18. 18 Financial Challenges Approved Posts for the Regular Fund 1999 - 2009 Personnel Levels and Expenditures (In millions) * *

19. 19 Financial Challenges Headcount as of June 30, 2008

20. 20 Financial Challenges OAS Real Property Estimated Structural Repairs and Upgrades of OAS Properties From Existing Conditions Report Main Building$18.4 million Grounds$ 2.2 Museum $ 3.2 La Casita$ 0.6 Administration Building$13.6 Budget Required $38.1 From Structural Surveys Pink Palace (Casa del Soldado)$ 1.8 million General Secretariat Building Garage$ 0.6 Budget Required$ 2.4 TOTAL ESTIMATED STRUCTURAL REPAIRS:$40.5 million (in 2007 dollars) MEDIUM TERM STRUCTURAL UPGRADES:$30.0 million

21. 21 Financial Challenges Reserve Subfund

22. 22 IV Bottom Line…

23. 23 Key Challenge: Closing the Regular Fund Budget Gap

24. 24 V OAS Annual Management Cycle

25. 25 OAS Annual 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 (Mar 3 rd ) 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 Annual Report from SG Annual Report from Secretary General