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PROPOSED PROGRAM-BUDGET FOR 2012 Overview and Guide

PROPOSED PROGRAM-BUDGET FOR 2012 Overview and Guide. August 26, 2011 Presentation for CAAP. Table of contents. Page. Overview Role of CAAP and Basic Documents 3-4 Roles in decision-making: Aug. – Oct. 2011 6

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PROPOSED PROGRAM-BUDGET FOR 2012 Overview and Guide

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  1. PROPOSED PROGRAM-BUDGET FOR 2012 Overview and Guide August 26, 2011 Presentation for CAAP

  2. Table of contents Page Overview • Role of CAAP and Basic Documents 3-4 • Roles in decision-making: Aug. – Oct. 2011 6 • San Salvador General Assembly Resolution 5 Proposed Program-Budget for 2012 • Program-Budget of the Organization – Budget levels for 2011 and 2012 7 • Key Criteria Considered in Formulating the 2012 Budget Proposal 8 Secretary General’s Proposal • Assumptions 9 • Personnel (Object 1) 10-12 • Non-Personnel (Objects 2-9) 13-15 Analysis • 2011-2012 Distribution & Variations by Programmatic Areas – All Funds 16-18 • 2011-2012 Distribution & Variations by Programmatic Areas – Regular Fund 19-21 • Changes in Programmatic Structure in 2012 (vs. 2011) 22 In conclusion 23

  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: http://scm.oas.org/doc_public/ENGLISH/HIST_03/CP11732E07.DOC

  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 (XL-E/10) “Program-Budget of the Regular Fund of the Organization for 2011, quota assessments and contributions to FEMCIDI for 2011;” • AG/RES. 2696 (XLI – O/11) “Financing of the 2012 Program-Budget of the Organization.” • Additional Key Documents: • Proposed Program-Budget of the Organization for 2012 [CP/doc. 4657/11]. • Quarterly Resource Management Reports, Financial Statements, and other CAAP documents issued in 2010/11. • “Report to the Permanent Council – Annual Audit of Accounts and Financial Statements for the years ended December 31, 2010 and 2009” [CP/doc.4555/11].

  5. Roles in decision-making: Aug. – Oct. 2011 CAAP • Analysis of the Secretary General’s 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.

  6. General Assembly Budget ResolutionAG/RES. 2696 (XLI – O/11) Resolves, “To set the overall budget level of the Regular Fund program-budget for 2012 at $85,350,800, and to finance it as follows” (figures in millions of USD):

  7. Projected Budget Level for 2012 Program-Budget of the Organization for 2012 (Figures in thousands of USD) Approved Budget Level for 2011

  8. Key Criteria Considered by the General Secretariat in Formulating the 2012 Budget Proposal • Decision of the GA to maintain the Regular Fund (RF) budget ceiling at $85.3M. • Impact of budgetary reductions of $4.8 million in 2011 on the activities of the Organization • Prioritization exercise by the Member States. • Progress reports of the Working Group on streamlining of OAS activities • Costing of resolutions approved at the XLI Regular Session of the General Assembly in San Salvador

  9. Secretary General’s 2012 RF Budget Proposal Assumptions • 2011-2012 average inflation estimated at 2.0%. • Budget for Personnel cost increases for 2012 estimated at $1.9 M: • Impact of 2011 increases on the 2011 budget: $0.7 M • 2012 statutory remuneration adjustments: 0.7 M • Mandatory step increases: 0.4 M • Health insurance premiums: 0.1 M • $1.9 M • The Organization’s cost of staff and retirees’ health insurance premiums is budgeted to increase by 2.0% in 2012. • Operational costs (electricity, heating, supplies, maintenance and custodial services) are budgeted at the 2011 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 (XL – E/10). 9

  10. Position reductions of $1.9 Million Number of positions financed by the Regular Fund is reduced in 2012 by a net of eighteen to absorb $1.9 million in anticipated statutory increases 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 Transfers to Specific Funds Secretary General’s Proposed 2012 RF Budget Personnel (Object 1)

  11. Secretary General’s Proposed 2012 RF Budget Personnel (Object 1) cont. • RF Position reductions, 1999-2011 and proposal for 2012 • 16.7% reduction in RF staff positions, 1999 – 2011 • 8.4% reduction in RF staff positions, 2010 – 2011 • 3.7% reduction in RF staff positions 2011 – 2012 11

  12. Secretary General’s Proposed 2012 RF Budget Personnel (Object 1) cont. • Positions in 2012 vs. 2011 by Programmatic Area 12

  13. Secretary General’s Proposed 2012 RF Budget Non-Personnel Costs (Objects 2-9) • Upward adjustment of $400,000 to 2012 appropriations of some subprograms are required to: • a) Accurately reflect the actual level of execution and, • b) To sufficiently fund the minimum level of operations of technical areas • Reduction 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.

  14. Secretary General’s Proposed 2012 RF Budget Non-Personnel Costs (Objects 2-9) (cont.)

  15. Secretary General’s Proposed 2012 RF Budget Non-Personnel Costs (Objects 2-9) (cont.) • Current budget is equal to 2011 level of appropriations, and $4.8 million less than in 2009. • Reduction, in real terms, of the purchasing power of the program-budget • No Across-the-board monetary reductions to the areas. Any increases are accompanied by offsetting decreases. • “Real” reductions managed by scaling back activities and operations. • Impact of budget cuts presented in a separate detailed document for consideration of the Subcommittee on Administrative and Budgetary Affairs. • Resources for major urgent repairs and building improvements are not contemplated.

  16. 2010 and 2011 Distribution by Programmatic Areas (Figures in thousands of USD) 2012 2011

  17. 2011 - 2012 Distribution by Programmatic Areas – All Funds (Figures in millions of USD) 17

  18. 2011 - 2012 Variations by Programmatic Areas – All Funds (Figures in thousands of USD) 18

  19. 2011 and 2012 Distribution by Programmatic Areas Regular Fund (Figures in thousands of USD)

  20. 2011 - 2012 Distribution by Programmatic Areas–Regular Fund (Figures in millions of USD) 20

  21. 2011 - 2012 Variations by Programmatic Areas – Regular Fund (Figures in thousands of USD) 21

  22. Changes in Programmatic Structure for 2012 (vs. 2011)

  23. In Conclusion • Per the Secretary General’s 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 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 SG’s 2012 Budget Proposal, including feedback from area Secretaries and Directors. • The 2012 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. 23

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