oas quarterly resource management report as of september 30, 2007 committee on administrative and...
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OAS Quarterly Resource Management Report
As of September 30, 2007
Committee on Administrative andBudgetary Affairs (CAAP)
1
SECRETARIAT FOR ADMINISTRATION AND FINANCEOctober 2007
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
04/10/23 2
What is covered in this presentation?
I. Context
II. Report’s content and 3rd quarter resource management results
III. Next Steps for CAAP and GS/OAS
OAS Quarterly Resource Management Report as of SEP-07
04/10/23 3
IContext
OAS Quarterly Resource Management Report as of SEP-07
04/10/23 4
ContextBoard of External Auditors
■ Reports to the Permanent Council and Secretary General.
■ Identifies internal control issues and opportunities to improve efficiency.
■ Oversees audits of financial statements.
■ Assesses the resources, work, and plans of the OIG.
■ Recommends corrective action and follow-up.
OAS Quarterly Resource Management Report as of SEP-07
04/10/23 5
ContextRecommendation from the Board of External Auditors (March 30, 2007)
“Continue to develop financial reports that provide, to the extent possible, a link between the use of resources and achievements of strategic goals and objectives in a manner that is most useful to member states, management, and donors…”
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT
REPORT TO THE PERMANENT COUNCIL
ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS
For the years ended December 31, 2006 and 2005
2006
By the Board of External Auditors ADM
Annual Audit of Accounts Quarterly ReportsProgram-Budget
OAS Quarterly Resource Management Report as of SEP-07
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
ContextAnnual OAS Management Cycle:Annual Audit, RF Program-Budget and Quarterly Reports aligned to CAAP’s Agenda
Jun 30
Mar 31 1st Quarterly Report
2nd Quarterly Report
Sep 303rd Quarterly Report
Dec 31Jan 1
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT
REPORT TO THE PERMANENT COUNCIL
ANNUAL AUDIT OF ACCOUNTS AND FINANCIAL STATEMENTS
For the years ended December 31, 2006 and 2005
2006
By the Board of External Auditors ADM
Publication of Annual Audit of Accounts
Phase 2SAF inputs budgetInformation
Phase 1Program-Budget formulation and planning
Phase 6Publication and distribution of the Budget by no later than 60 days after approval
Phase 5(Jun 1st – Jun 6th)Approval of Program-Budget by the GA
Phase 4Discussion and review by CAAP and recommendation to the Preparatory Committee 15 days prior to GA
Phase 3Budget analysis, preparation and presentation 90 days prior to GA
Publication ofRF 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
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
04/10/23 7
IIReport’s content and 3rd quarter
resource management results
OAS Quarterly Resource Management Report as of SEP-07
04/10/23 8
OAS Quarterly ResourceManagement Report
■ It is an unaudited but authoritative source of information for Member States, Management and donors.
■ Provides a comprehensive resource management overview of the Organization, as of the date of the Report.
■ Provides a status on the recommendations from the Board of External Auditors.
■ Assesses the performance of all components included in the Annual OAS Management Cycle.
■ Identifies management challenges and opportunities within GS/OAS.
OAS Quarterly Resource Management Report as of SEP-07
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
04/10/23 9
OAS Quarterly ResourceManagement Report
■ Report format follows similar reports done by private and public
organizations:
OAS Quarterly Resource Management Report as of SEP-07
Management Discussion and AnalysisProvides an overview of the financial position of the Organization and a status report on other management activities.
SECTION I
Financial Statements and ReportsProvides detailed financial statements and projections.
SECTION II
ORGANIZATION OF AMERICAN STATES GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C. 20006, USA (202) 458-3000 / www.oas.org
EOSAF/101-07 Original: English
October 30, 2007
OAS QUARTERLY RESOURCE
MANAGEMENT REPORT SEPTEMBER 30, 2007
An overview of the financial position of the General Secretariat for the 3rd quarter (July—September) of 2007,
and a status report on other management activities
October 2007
Secretariat for Administration and Finance (SAF)
04/10/23 10
Highlights from 3rd quarter resultsBudget Execution as of September 30, 2007 (pages 4-5)
■ Most of the approved budget
has been committed, as most
areas have obligated more
than 95%.
■ This level of commitment
leaves areas with little or no
spending flexibility for the last
quarter of 2007.
OAS Quarterly Resource Management Report as of SEP-07
Unobligated
Legend: Execution Appropriation
Ch 3 - Autonomous and/or Decentralized Entities 10.8$ 5.7$
Ch 9 - Basic Infrastructure and Common Costs 10.6 1.3
Ch 2 - Assistant Secretary General 18.6 1.0
Ch 7 - Executive Secretariat for Integral Development 7.8 0.3
Ch 1 - Secretary General 7.8 0.2
Ch 8 - Secretariat for Administration and Finance 10.1 0.2
Ch 5 - Secretariat for Multidimensional Security 3.6 0.1
Ch 6 - Secretariat for Political Affairs 3.8 0.2
Ch 4 - Department of International Legal Affairs 2.3 -
75.4$ 9.0$
Personnel
Non-Personnel
Unobligated Appropriation
29%
79%88% 88%
84% 88%94%
87%37%
89%
15%7% 7% 14%
10%4%
13%
34%
11%6% 5% 5% 2% 2% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Ch 3 Ch 9 Ch 2 Ch 7 Ch 1 Ch 8 Ch 5 Ch 6 Ch 4
$16.5
Modified Appropriation $84.4 (J anuary 1, 2007)
$11.9 $19.5 $8.3 $8.1 $10.3 $3.6 $3.9 $2.3
04/10/23 11
Highlights from 3rd quarter resultsQuota Payments as of September 30, 2007 (pages 6-7)
■ For the third quarter of 2007, quota payments have exceeded prior
years (Figure 3), while arrears are at the lowest level in the past six
years (Figure 4).
OAS Quarterly Resource Management Report as of SEP-07
Figure 3 Quota Payments As of September 30, 2007 (in millions)
7.6
16.5
20.5
23.529.0 16.1
25.4
15.9
14.524.8
22.817.5
0
10
20
30
40
50
60
70
2004 2005 2006 2007
1st. Quarter 2nd. Quarter 3rd. Quarter
$61.0
$55.9$53.5
$63.7
Figure 4 Quotas in Arrears As of September 30, 2007 (in millions)
$20.7
$3.0$4.1
$12.9
$10.0
$6.5
$12.7
$6.6
0.0
5.0
10.0
15.0
20.0
25.0
2000 2001 2002 2003 2004 2005 2006 2007
04/10/23 12
Highlights from 3rd quarter resultsRegular Fund Liquidity Analysis as of September 30, 2007 (pages 7-8)
■ Considering the absence of quota payment plans from most Member States at the beginning of the year, cash projections are primarily based on historical information. In addition to payment plan projections, the cash flow projection considers payments of 2007 assessed quotas of $6.4 million and an advance of $4.9 million of 2008 assessed quotas, based on informal discussions with Member States.
OAS Quarterly Resource Management Report as of SEP-07
Figure 5 2007 Actual and Projected Cash Balance of the Regular Fund (in millions)
12.4
8.0
15.8
17.918.9
12.1
16.6
11.4
18.9
12.2
5.3
21.6
-
5
10
15
20
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Actual Projected
Backed by payment plans:
OCTOBER$0.06 million
DECEMBER$11.4 million
04/10/23 13
Highlights from 3rd quarter resultsFinancing surplus (deficit)
■ The Reserve Sub-fund is a temporary cushion to finance budgetary
execution pending full receipt of quotas and other income as
programmed in the Regular Fund Budget.
■ A financing surplus or deficit is the difference between projected
sources of financing and actual financing.
■ Consecutive financing deficits have an unfavorable direct impact on the
Reserve Sub-fund and are not sustainable in the long term.
OAS Quarterly Resource Management Report as of SEP-07
04/10/23 14
Highlights from 3rd quarter resultsFinancing surplus (deficit)
OAS Quarterly Resource Management Report as of SEP-07
■ As of September 30, 2007 there is a financing deficit of $18.5 million ($65.9
million - $84.4 million).
■ By year-end, the GS/OAS expects that the $2.9 million from the Reserve
Sub-fund will not be required to finance the 2007 Program-Budget.
■ An additional $1.8 million will increase the Reserve Sub-fund by this
amount.
■ The Reserve Sub-fund will be further increased with unappropriated
resources.
Regular Fund Program-Budget
Actual for fiscal period through
9/ 30/ 2007
Projected for fiscal period through
12/ 31/ 2007Sources of Financing: Quotas 77.3 63.7 81.8 Other Income 4.2 2.2 4.4 Reserve Sub-fund 2.9 - (1.8)
84.4 65.9 84.4
04/10/23 15
Highlights from 3rd quarter resultsSpecific Funds as of September 30, 2007 (pages 11-13)
■ The level of contributions to Specific Funds reached $40.7 million, lower
than the past three years, as shown below:
■ Specific Fund estimates are unpredictable.
■ The GS/OAS needs the ability to expand and contract in line with level
of Specific Fund contributions.
OAS Quarterly Resource Management Report as of SEP-07
2007 2006 2005 2004
Member States 21,060.2$ 24,190.6$ 30,082.8$ 76,203.3$
Permanent Observers 11,920.9 13,913.5 6,130.5 6,782.4
Other Countries and Institutions 7,691.0 9,466.6 11,763.9 9,975.2
Total Contributions 40,672.1$ 47,570.7$ 47,977.2$ 92,960.8$
04/10/23 16
Highlights from 3rd quarter resultsOAS Annual Audit of Accounts (pages 14-15)
■ Although behind schedule, Ernst & Young was selected this week to
conduct the 2007-09 Annual Audit of Accounts.
■ In regards to the Board of External Auditors, Mr. Joseph Freamo and Mr.
Terrance S. Bastian have been elected to serve a three-year and two-
year period, respectively.
■ The third member of the Board, serving his last year as a Board
Member and as Chairperson continues to be Mr. Howard Krongard.
OAS Quarterly Resource Management Report as of SEP-07
04/10/23 17
Highlights from 3rd quarter resultsIndirect Cost Recovery (ICR) as of September 30, 2007 (pages 16-17)
■ The General Secretariat is working closely with Primary Dependencies (e.g.
executive Secretariats of the OAS) to consolidate the new ICR policy issued
on May 29, 2007.
■ These efforts have focused mainly on project management concepts (e.g.,
proper costing), through a new inter-departmental Committee on
Administrative Matters (CAM).
■ ICR collections will not meet expectations given the transition phase to the
new ICR policy:
i) ICR policy issued at the end of May 2007;
ii) “grandfathering” of existing agreements; and,
iii) Specific Fund contributions lower than expected.
OAS Quarterly Resource Management Report as of SEP-07
04/10/23 18
Highlights from 3rd quarter resultsHuman Resources as of September 30, 2007 (pages 18-21)
■ The Headcount is as follows:
■ The GS/OAS is currently developing
a report that analyzes the
geographic representation at the
OAS.
OAS Quarterly Resource Management Report as of SEP-07
■ As recommended by the
Board of External Auditors, the
GS/OAS has contracted the
services of a UN position
classification expert to review
job descriptions.
■ The GS/OAS is currently
implementing a new
Performance Evaluation
System to align individual
objectives to the
Organization’s goals.
Table 7 Headcount by Fund As of September 30, 2007
Fund July August SeptemberRegular 529 527 529
Specific 180 185 195
Total 709 712 724
*
04/10/23 19
Highlights from 3rd quarter resultsOAS Building Facilities as of September 30, 2007 (pages 21-22)
■ The approved 2007 Regular Fund Program-Budget provided the General
Secretariat with $4.8 million for the mortgage, management and upkeep
of its real estate resources. In addition, these costs are covered with
rental income as shown below. The available balance as of September 30,
2007 is $909 thousand.
OAS Quarterly Resource Management Report as of SEP-07
Table 9 2007 Building Management and Upkeep As of September 30, 2007 (in thousands)
Source of Financing
Carryover Balance
(A)Financing
(B)Expenditures
(C)Commitments
(D)Total Execution
(E)=(C+D)
Available Balance
(F)=(A+B-E)
Regular Fund 2007 -$ 4,768$ 3,486$ 1,000$ 4,486$ 281$ Rental Income 501 1,133 893 113 1,006 628
501$ 5,901$ * 4,379$ 1,113$ 5,492$ 909$
* Does not include $412 thousand appropriated for Communications Technology.
04/10/23 20
Highlights from 3rd quarter resultsInformation Technology (IT) Services (pages 23-24)
■ The General Secretariat is upgrading various levels of hardware and software in close collaboration with end users.
■ The upgrade will help make OASES compatible with newer technology and more user-friendly, establishing the ground to implement further improvements such as Oracle Project Management.
■ This tool will include the full project lifecycle, from planning budgets to monitoring performance, enabling project managers to operate more efficiently and effectively.
■ Other important IT projects this year: i) modern network topology for the Main Building; ii) Voice Mail System Upgrade; iii) Secure Communications System (Groove); iv) OAS E-Mail Broadcasting System (OAS Mail Manager), among others.
OAS Quarterly Resource Management Report as of SEP-07
04/10/23 21
Highlights from 3rd quarter resultsProcurement Services (pages 25-28)
■ The Board of External Auditors has requested to “continue to strengthen the CPR oversight process. Develop a plan to manage the CPR process…”
■ The GS/OAS has initiated a full scale review of the CPR requirements and processes to improve the application of this hiring mechanism.
■ In regards to travel related activities, the GS/OAS contracted Omega World Travel (Omega) since February, improving travel accountability and oversight, while enhancing reporting capabilities.
■ In regards to fixed assets, the Board recommended to “Improve the reconciliation of fixed asset tracking records and the inventory accounts.” The GS/OAS will upgrade to Oracle Fixed Assets software during 2008 to automate OAS asset management, simplifying accounting tasks such as reconciliations.
OAS Quarterly Resource Management Report as of SEP-07
04/10/23 22
IIINext Steps for CAAP and GS/OAS
OPERATING PLAN – DBFS/FRC Section
04/10/23 23
Next Steps for CAAP and GS/OAS
■ Present methodology for setting the scale of quota assessments approved by the Permanent Council and General Assembly.
■ Support General Assembly’s approval of the 2009 Program-Budget.
■ Initiate training plan for GS/OAS staff on internationally-accepted accounting standards.
■ Continue to consolidate project management and the new ICR policy.
■ Address human resource needs in critical areas.
■ Reform procurement and contracting mechanism for temporary support personnel.
OAS Quarterly Resource Management Report as of SEP-07CP19079E
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