1 OAS Quarterly Resource Management and Performance Report June 30, 2013 Secretariat for...

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OAS Quarterly Resource Management and Performance Report

June 30, 2013

Secretariat for Administration and Finance

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New Quarterly Report Format for 2013:

- Focus on Performance: dedicated section on programmatic results by subprogram.

- Focus on variances: Tables highlighting budgetary variances

- Focus on budgetary impact of human resource actions.

Introduction

Programmatic Results by Chapter

Las metas operativas fueron seleccionadas por las áreas entre las incluidas en el Programa Presupuesto 2013.

Expected results for the mandates that

correspond to the operative goals are

being reviewed by the technical areas based

on the draft submitted to the CAAP

The operational targets were selected by the areas from the ones

included in the Program Budget 2013

Total of programmed resources from all funds

Compliance with operational goals until March 31, 2013

Compliance expected by the end of the year

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Budget Execution Highlights

Budget Execution by Fund(January 1, 2013 to June 30, 2013)

A B C=A-B D=B/A

(in millions of USD) 2013 Expenditures

Regular FundPersonnel 53.0 25.8 27.2 48.7%Non-personnel 30.8 17.6 13.2 57.1%

Subtotal 83.9 43.4 40.4 51.8%

Indirect Cost Recovery (ICR)Personnel 3.9 2.0 1.9 50.1%Non-personnel 1.4 1.0 0.4 71.9%

Subtotal 5.3 2.9 2.3 55.7%

Specific FundsPersonnel 18.5 5.6 12.9 30.0%Non-personnel 53.5 21.3 32.2 39.7%

Subtotal 72.0 26.8 45.2 37.2%

All FundsPersonnel 75.4 33.3 42.1 44.2%Non-personnel 85.7 39.8 45.9 46.5%

TOTAL 161.1 73.2 87.9 45.4%

* Net of ICR charges (USD 3.308 million).

Year-to-Date (Jan to Jun)Approved Budget Remaining

Budget%

Executed

*

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Explanations to Budget Execution by Fund(January 1, 2013 to June 30, 2013)

Average execution for first two quarters should be around 50%

-Regular Fund (51.8%): Slight over execution primarily because common costs charged at the beginning of the year.

-ICR (55.7%): Over execution primarily due to actual personnel expenditures exceeding approved budget amount, due to required reclassifications, special duties assignments, benefits and tax reimbursement expenditures.

-Specific Funds (37.2%): Execution level during the first semester of 2013, although under 50%, consistent with prior year.

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Budget Execution by Programmatic Pillar and Fund (January 1, 2013 to June 30, 2013)

A B C D E=B+C+D F=E/A

(in millions of USD) 2,013.0 Regular Fund ICR Specific Funds Total

By Programmatic PillarDemocracy and Governance 28.6 3.1 0.4 8.7 12.3 42.9%Human Rights 13.5 5.1 0.1 1.9 7.1 52.7%Integral Development 36.9 6.3 0.2 5.7 12.1 32.7%Multidimensional Security 27.0 2.8 0.4 9.1 12.3 45.5%Support for the Member States 16.6 8.3 0.2 0.7 9.2 55.5%

Subtotal 122.5 25.6 1.3 26.1 52.9 43.2%

Policy Direction 7.4 3.4 0.4 0.4 4.2 56.6%Administration 16.6 6.0 1.1 0.4 7.5 45.2%Infrastructure and Common Costs 14.6 8.5 0.0 - 8.5 58.6%

Subtotal 38.6 17.9 1.6 0.7 20.2 52.5%

TOTAL 161.1 43.4 2.9 26.8 73.2 45.4%

Year-to-Date (Jan to Jun) Approved

Budget % Executed

*

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Explanations to Budget Execution by Programmatic Pillar and Fund (January 1, 2013 to June 30, 2013)

Average execution for first two quarters should be around 50%

-Human Rights (52.7%): Over execution mainly due to providing 3rd quarter subsidy from the Regular Fund to the Inter-American Court of Human Rights in late June. -Support for the Member States (55.5%): Over execution mainly due to the timing of adjustments in execution to comply with the reduced budgetary level in 2013.

-Policy Direction (56.6%): Over execution mainly due to costs related to IPSAS requirements definition regarding current enterprise system.

-Infrastructure and Common Costs (58.6%): Over execution mainly due to annual common costs charged during the first quarter of the year.

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Regular Fund Transfers between Chapters

During the 3rd quarter of 2013, the General Secretariat will proceed to make any required transfers between chapters to address over or under execution.

(in millions of USD) 2013 Expenditures *

Regular FundChapter 1 - Office of the Secretary General 4.0 3.8 0.2 -5.4%Chapter 2 - Office of the Assistant Secretary General 3.7 3.9 (0.2) 5.0%Chapter 3 - Principal and Specialized Organs 10.7 10.1 0.6 -5.3%Chapter 4 - Other Entities and Dependencies 1.5 1.5 0.0 -0.5%Chapter 5 - Secretariat for Legal Affairs 2.3 2.4 (0.1) 3.5%Chapter 6 - Secretariat for Multidimensional Security 4.1 4.1 (0.0) 0.1%Chapter 7 - Secretariat for Political Affairs 4.1 4.1 0.0 -1.0%Chapter 8 - Executive Secretariat for Integral Development 14.4 13.8 0.6 -4.0%Chapter 9 - Secretariat for External Relations 3.2 2.9 0.3 -8.3%Chapter 10 - Secretariat for Administration and Finance 9.9 10.1 (0.2) 2.5%Chapter 11 - Basic Infrastructure and Common Costs 12.8 13.2 (0.4) 2.8%Chapter 12 - Conferences and Meetings Management 5.2 5.5 (0.3) 5.8%Chapter 13 - Offices and Units of the GS in the Member States 6.6 7.1 (0.5) 7.9%Chapter 14 - Compliance Oversight Management Bodies 1.4 1.4 0.0 -2.2%

TOTAL 83.9 83.9 (0.0) 0.0%

% BudgetVariance

* Personnel projections are based on year-to-date expenditures plus personnel obligations to December 31. Non-personnel projections are based on the approved budget plus reprogrammings.

Approved Budget

Year-End Projections (Jan to Dec)Budget

Variance

2013 2012(in millions of USD) Jan-Jun Jan-Jun

Beginning Fund Balance (4.8) (2.9)

Plus: Income 59.3 47.3

Less: Expenses 43.4 42.0

Ending Cash Balance 11.1 2.4

Less:Obligations 33.8 34.1

Ending Fund Balance (22.7) (31.7)

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Financial Highlights

Regular FundStatement of Changes in Fund Balance (comparative)

*Amount to be financed by quota receivables from member states and other income.

*

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Explanations to the Regular FundStatement of Changes in Fund Balance

Increased 1st semester income in 2013 compared to 2012:- Arrear quota payments of USD 4.7 million received during 1st

semester 2013 compared to USD 0.2 million in 2012.

- Significant improvement due to earlier quota payments.

Increased 1st semester expenses in 2013 compared to 2012:- Slightly higher expenses mainly in the non-personnel category (e.g.,

large number of meetings, timing of subsidy payments, etc.)

Obligations include personnel execution projected through the remainder of the year.

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Indirect Cost Recovery FundStatement of Changes in Fund Balance (comparative)


Beginning Fund Balance 0.2 1.4


Less: Expenses 2.9 3.6

Ending Cash Balance 0.8 0.1

Less:Obligations* 2.3 1.5

Ending Fund Balance (1.5) (1.4)

* Refers to payroll obligations through year-end. Does not include USD 1.5 million transfer to the Regular Fund.

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Explanations of the Indirect Cost Recovery Fund Statement of Changes in Fund Balance

Lower expenses-For 2013, the ICR Fund had lower payroll expenses than the previous year due to lower number of posts.

Increased obligations-Obligations refer to payroll commitments through year-end. -1st semester 2013 obligations increased compared to 2012 mainly because there was a change in the length of the employee contracts, from 6 to 12 months.

Negative cash balance-The negative cash balance is due to timing. It will be reverted in the upcoming months when ICR Fund continues to receive revenue.

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Specific FundsStatement of Changes in Fund Balance (comparative)


Beginning Fund Balance 79.3 77.8


Less:Expenditures 30.1 28.2 Return to Donors 1.2 0.6 Others 0.3 1.1

Ending Fund Balance 79.1 76.0

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Explanations to the Specific Funds Statement of Changes in Fund Balance

- Higher income during 1st semester of 2013 mainly due to new contributions from the European Union to OAS/MAPP and Fund for Peace, as well as new contributions from other institutions to programs related to integral development.

- Overall activity in 2013 is comparable to activity in 2012.

Quota Collection (comparative)(as of June)(in USD)


Year Quotas Collections Balance DuePrior Year Balances

Collection on Balances Balance Due Total Balance Due

2012 81,105,400 47,000,425 34,104,975 2,908,247 166,320 2,741,927 36,846,902

2013 81,105,400 54,581,823 26,523,577 4,849,615 4,729,436 120,179 26,643,756

ArrearsCurrent

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Member State with Payment Plan Balance Due Member States without Payment Plan Balance DueJamaica 56,925 Antigua and Barbuda 44,567 United States 24,236,337 Brazil 171

Dominica, Comm. of 17,900 Dominican Republic 206,195 El Salvador 93,000 Grenada 93,482 Haiti 27,700 Honduras 41,600 St. Vincent and the Grenadines 35,830 Trinidad and Tobago 14,300 Uruguay 174,600 Venezuela 1,601,149

Subtotal 24,293,262 Subtotal 2,350,494

Grand total 6/30/13 26,643,756

Quota Balance Due from Member States as of June 30, 2013(in USD)

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Member State with Payment Plan Balance Due Member States without Payment Plan Balance DueJamaica 56,925 Antigua and Barbuda 44,567 United States 12,128,169 Brazil 171

Dominica, Comm. of 17,900 Dominican Republic 206,195 El Salvador 93,000 Grenada 93,482 Haiti 27,700 Honduras 41,600 St. Vincent and the Grenadines 35,830 Uruguay 174,600 Venezuela 1,601,149

Subtotal 12,185,094 Subtotal 2,336,194

Grand total 7/31/13 14,521,288

Quota Balance Due from Member States as of July 31, 2013(in USD)

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Liquidity Risk Assessment

Actual Cash Balance to June 30, 2013 and Projections through December 31, 2013

- Satisfactory cash balances for first three quarters of 2013.- Cash balance concern for the months of October and November.- The General Secretariat is addressing cash needs in 4th quarter through conversations with Member States.

(in millions of USD)Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Beginning Cash Balance 3.5 10.6 17.5 9.5 23.1 19.6 11.9 18.5 12.2 5.7 (0.6) (6.4) 3.5 Inflows

Quota Collections * 15.0 13.6 0.4 20.5 2.6 0.1 12.4 0.0 - - 0.0 14.1 78.7 Other Income 0.0 0.0 0.0 0.0 0.0 - 0.0 0.1 1.5 0.1 - 1.1 2.9

OutflowsPayroll 4.3 4.3 4.3 4.3 4.3 4.3 4.4 4.4 4.4 4.4 4.4 4.4 52.2 Non payroll 3.5 2.4 4.1 2.7 1.8 3.5 1.3 2.0 3.6 2.1 1.4 1.4 29.9

Ending Cash Balance 10.6 17.5 9.5 23.1 19.6 11.9 18.5 12.2 5.7 (0.6) (6.4) 3.0 3.0

* Projections are based on approved payment plans and prior years' payment tendency.

Projections Actuals

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Human Resources Highlights

DHR Highlights of this quarter:

• 7 new hires and 9 separations in the regular fund during the 2nd quarter of 2013.

• 70 posts in the Regular fund announced in the 2nd quarter for competition under Art. 44 of the General Standards.

• 5 posts in the Regular fund announced in the 2nd quarter for competitive recruitment under Call for Resumes process.

• 3 new hires and 10 separations from service in the Specific funds during the 2nd quarter of 2013.

• 9 posts in the Specific funds and ICR announced in the 2nd quarter for competition under Art. 44 of the General Standards.

• 1 post in the Specific funds announced in the 2nd quarter for competitive recruitment under Call for Resume process.

• Conclusion of the Continuing Contract Competition; 29 continuing contracts awarded out of 37 applicants

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