1. 1 ICAO TECHNICAL COOPERATION BUREAU Financial and Budgetary Control and Audit

2. 2 SUMMARY OF CONTENTS Financial Administration of ICAO Funding of the Regular and Technical Cooperation Programmes Administration of the Technical Cooperation Programme Functions of Programme Budget Unit Types of Budgets Budget Components Financial and Budgetary Control Financial Reporting Internal and External Audit of ICAO Conclusion

3. 3 FINANCIAL ADMINISTRATION OF ICAO ICAO Financial Regulations ICAO Finance Branch

4. 4 The ICAO Financial Regulations Approved by the Assembly and govern the financial administration of the Organization Article IX of the Financial Regulations covers Technical Cooperation All transactions of the Organization have to be in accordance with the ICAO Financial Regulations and Rules

5. 5 The ICAO Finance Branch Maintenance of accounts Preparation of Programme Budget Operation of payroll, treasury and banking operations Calculation of scales of assessments Preparation of Council and Assembly working papers

6. 6 FUNDING OF THE REGULAR AND TECHNICAL COOPERATION PROGRAMMES Regular Programme Funded by assessments on Contracting States Assessments based on national income and aviations activity Technical Cooperation Funded by administrative charges from projects No grants received from Regular Programme

7. 7 ADMINISTRATION OF THE TECHNICAL COOPERATION PROGRAMME Conducted under broad policy guidance of ICAO Assembly and Council Subject to general guidance by Secretary General Technical Cooperation Programme is executed by Technical Cooperation Bureau

8. 8 FUNCTIONS OF PROGRAMME BUDGET UNIT Budgetary and expenditure control of all TC activities Trust Fund and Management Service Agreement (MSA) project budgets Administrative budget of the Bureau Preparation of management reports Coordination with Finance Branch

9. 9 TYPES OF BUDGETS United Nations Development Programme (UNDP) Trust Fund Management Service Agreement (MSA) Civil Aviation Purchasing Service (CAPS)

10. 10 UNDP Budgets Standard budget format (Main budget components discussed later) International experts and consultants based on pro forma costs Core funds – from UNDP’s own resources

11. 11 UNDP Budgets (continued) Cost-sharing funds – from governments and other entities (cost sharing may be partial or full) 10 % Administrative and Operational Services (AOS) cost 3% Country Office Administration (COA) cost

12. 12 Trust Fund Budgets Based on estimated actual costs Funds are deposited directly with ICAO Support Cost, an across-the-board flat rate percentage

13. 13 Management Service Agreement (MSA) Budgets Similar to Trust Fund except: The cost of providing the service is calculated so that all costs incurred are recovered A specific handling charge and not a fixed percentage

14. 14 Civil Aviation Purchasing Service (CAPS) Budgets Meet aviation equipment needs Procurement and technical support services fees Procurement Section of TCB

15. 15 BUDGET COMPONENTS Main components of a budget are: Component 10: Project personnel Component 20: Subcontracts Component 30: Training Component 40: Equipment Component 50: Miscellaneous (includes reporting costs, sundry and administrative overhead )

16. 16 FINANCIAL AND BUDGETARY CONTROL ICAO Financial Regulations and Rules Funds required before implementation Budgetary provisions for activities Project budgets are closely monitored

17. 17 FINANCIAL AND BUDGETARY CONTROL Asia Pacific Project XYZ Personnel Recruitment Purchase Order for Equipment Training PBU FPS FPRO FSU FPS FPRO FSU D/TCB AfricaAmericas Europe and Middle East Expert XYZ Equipment XYZ Fellow XYZ Account XYZ

18. 18 FINANCIAL REPORTING Contributions received are credited to separate funds Quarterly financial statements are provided

19. 19 INTERNAL AND EXTERNAL AUDIT OF ICAO Internal Audit Office of Programme Evaluations, Audit and Management Review Conduct evaluations, audits and reviews of the Organization’s operations Promote economic and efficient use of resources

20. 20 INTERNAL AND EXTERNAL AUDIT OF ICAO (continued) External Audit External Auditor appointed by the Council and confirmed by the Assembly Annual audits - areas of concern: - financial statements - financial transactions - funds on hand - internal controls

21. 21 CONCLUSION ICAO Technical Cooperation Bureau in operation for more than 50 years Implemented hundreds of projects Will continue to provide assistance to States under cost-recovery principles Thank you for your attention.