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Proposed Program-Budget 2013 Chapter IX – Secretariat for Administration and Finance Chapter X – Basic Infrastructure and Common Services

October 16, 2012

Presentation for CAAP

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Chapters IX and XAdministration and Finance, Basic Infrastructure and Common Services

Topics

•Budget 2012 – 2013

•Personnel and non-personnel resources

•Work plan (Scope of work)

•Impact of budget re-allocations

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Chapters IX and XAdministration and Finance, Basic Infrastructure and Common Services

9 - SECRETARIAT FOR ADMINISTRATION AND FINANCE

92A Secretariat for Administration and Finance

92B Department of Human Resources

92C Department of Financial and Administrative Management Services

92D Department of Information and Technology Services

92E Department of Procurement Services

92F Department of General Services

92G Department of Planning and Evaluation

10 - BASIC INFRASTRUCTURE AND COMMON COSTS

102A Equipment and Supplies – Computers

102B Office Equipment and Supplies

102C OASES System

102D Building Management and Maintenance

102P Building Management and Maintenance (Casa del Soldado)

102E General Insurance

102G Recruitment and Transfers

102H Terminations and Repatriations

102I Home Leave

102J Education and Language Allowance, Medical Examinations

102K Pension for Retired Executives and Health and Life Insurance for Retired Staff Members

102L Human Resources Development

102M Contribution to the Staff Association

102N Contribution to the Association of Retirees of the OAS (AROAS)

102O Contribution to the Reserve Fund

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PERSONNEL STRUCTURE 2013

Personnel

Regular Fund

Indirect Cost RecoveryOrganization of American StatesICR

SG ASG D02 D01 P05 P04 P03 P02 P01 Subtotal G07 G06 G05 G04 G03 G02 G01 Subtotal TotalChapter 9 - Secretariat for Administration and FinanceSecretariat for Administration and Finance (92A)Department of Human Resources (92B) 1 1 2 1 1 3Department of Financial and Administrative Management Services (92C)

5 5 2 1 3 8

Department of Information and Technology Services (92D)Department of Procurement Services (92E) 1 1 1 1 2Department of General Services (92F) 0 1 1 1Department of Planning and Evaluation (92G) 1 4 5 1 1 6

Chapter 9 - Secretariat for Administration and Finance Total 1 1 5 6 13 1 4 1 1 7 20

2013 Proposed Posts by Subprogram General ServicesAssistant Secretary General, Senior Executives and

SG ASG D02 D01 P05 P04 P03 P02 P01 Subtotal G07 G06 G05 G04 G03 G02 G01 Subtotal TotalChapter 9 - Secretariat for Administration and FinanceSecretariat for Administration and Finance (92A) 1 1 1 3 0 3Department of Human Resources (92B) 1 1 4 4 1 11 5 5 16Department of Financial and Administrative Management Services 1 2 5 1 5 14 4 3 7 21Department of Information and Technology Services (92D) 1 3 6 2 12 2 1 1 4 16Department of Procurement Services (92E) 1 1 1 1 1 5 2 2 7Department of General Services (92F) 1 3 4 2 5 3 4 14 18Department of Planning and Evaluation (92G) 3 1 4 4

Chapter 9 - Secretariat for Administration and Finance Total 1 8 8 20 8 8 53 2 13 9 4 4 32 85

General Services

Organization of American StatesRegular Fund 2013 Proposed Posts by Subprogram

Assistant Secretary General, Senior Executives and Professionals

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Personnel Changes 2012 - 2013

2013 2012Grade Posts $1,000 Posts $1,000

G03 1 52.3 1 54.9 G04 1 64.6 3 182.8 G05 4 292.4 5 303.6 G06 1 73.8 2 96.3 P01 6 516.0 10 651.0 P02 5 552.5 5 577.9 P03 1 130.3 3 242.7 P04 1 179.3 1 83.3 Total 20 1,861.2 30 2,192.5

ICR

2013 2012Grade Posts 1,000$ Posts 1,000$

D02 1 235.2 1 221.7 P05 8 1,556.8 8 1,511.2 P04 8 1,296.8 8 1,265.6 P03 20 2,620.0 22 2,711.2 P02 8 838.4 11 1,126.4 P01 8 648.0 7 572.6 G07 2 239.8 1 97.4 G06 13 1,218.1 15 1,417.5 G05 9 756.0 7 541.1 G04 4 330.4 4 308.4 G03 4 216.8 2 109.2 GA Adjustment - (180.0) Total 85 9,956.3 86 9,702.3

Regular Fund

Note: The cost of ICR-funded contracts have been reduced to reflect the most recent projections in order to maintain the ICR ceiling established by AG/RES. 2756 (XLII-O/12). Costs shown, in most cases, represent partial-year funding for the posts listed above.

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All funds, 2012-2013(in USD 1,000)

2013

9 - 9,702 552 10,254 2,193 544 2,736 1,981 625.0 2,605.7 15,596 9,956 491.7 10,448.0 1,861 156 2,017 1,929 371.4 2,300.8 14,766

92A 253 16 269 0 0 0.0 0 269 447 15.9 463.1 0 0.0 0.0 463

92B 1,809 80 1,889 376 118 494 340 0.0 340 2,722 1,849 20.0 1,869.4 270.3 270.3 362.6 0.0 362.6 2,502

92C 2,753 170 2,923 790 95 885 0 0.0 0 3,808 2310.4 170.0 2,480.4 628.5 0 628.5 0 0.0 0.0 3,109

92D 1,833 175 2,009 28 144 172 1,426 0.0 1,426 3,606 2,083 175.3 2,258.2 48 48 1348.9 0.0 1,348.9 3,655

92E 820 22 842 286 95 381 43 0.0 43 1,267 861 22.1 883.0 203.4 68 271.4 43.2 0.0 43.2 1,198

92F 1,509 64 1,574 49 49 172 0.0 172 1,794 1,660 64.4 1,724.0 64.6 64.6 93.7 41.4 135.1 1,924

92G 725 24 749 664 92 756 625.0 625 2,130 746 24.0 769.9 694.4 40 734.4 81 330.0 411.0 1,915

10 - 0 12,248 12,248 25 1 25 0 1,566.0 1,566.0 13,839 0.0 13,786.8 13,786.8 0 175 175 0 1,602.8 1,602.8 15,565

102A 0 868 868 0 868 0 868.0 868.0 48 48 0.0 916

102B 0 30 30 0 30 0 29.5 29.5 0.0 30

102C 0 454 454 0 454 0 453.6 453.6 48 48 0.0 502

102D 0 5,201 5,201 25 1 25 1,566.0 1,566 6,793 0 5,363.3 5,363.3 1,602.8 1,602.8 6,966

102P 0 0 0 0 0 350.0 350.0 0.0 350

102E 0 396 396 0 396 0 402.1 402.1 0.0 402

102G 0 56 56 0 56 0 59.0 59.0 79 79 0.0 138

102H 0 1,126 1,126 0 1,126 0 1,803.4 1,803.4 0.0 1,803

102I 0 207 207 0 207 0 207.3 207.3 0.0 207

102J 0 67 67 0 67 0 67.4 67.4 0.0 67

102K 0 3,506 3,506 0 3,506 0 3,573.0 3,573.0 0.0 3,573

102L 0 278 278 0 278 0 100.0 100.0 0.0 100

102M 0 5 5 0 5 0 5.1 5.1 0.0 5

102N 0 5 5 0 5 0 5.1 5.1 0.0 5

102O 0 49 49 0 49 0 500.0 500.0 0.0 500

SECRETARIAT FOR ADMINISTRATION AND FINANCE

Recruitment and Transfers

Office Equipment and Supplies

OASES System

Department of Information and Technology Services

Pension for Retired Executives and Health and Life Insurance for Retired Staff Members

Building Management and Maintenance (Casa del Soldado)

Department of Planning and Evaluation

Department of General Services

Human Resources Development

2013 SPECIFIC FUNDS BUDGET

Department of Procurement Services

BASIC INFRASTRUCTURE AND COMMON COSTS

Department of Human ResourcesDepartment of Financial and Administrative Management Services

Secretariat for Administration and Finance

2012 RF BUDGET

2012 ICR BUDGET 2013

RF BUDGET2013

ICR BUDGET

2012GRAND TOTAL

2012SPECIFIC FUNDS BUDGET

Education and Language Allowance, MedicalExaminations

General Insurance

Contribution to the Reserve Fund

Home Leave

Terminations and Repatriations

Building Management and Maintenance

Contribution to the Staff AssociationContribution to the Association of Retirees of the OAS (AROAS)

Equipment and Supplies – Computers

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Budget changes 2012 - 2013

• Reduction of 11 positions in RF + ICR

• Increase of $0.5 million to Building and Maintenance reflecting additional cost of maintenance of Casa del Soldado and outsourcing of building maintenance services for GSB, MNB, ADM and Museum

• $0.5 million earmarked to the Reserve Sub-fund

• $0.7 million additional for terminations and repatriations

• $178K reduction (64%) in staff training and development

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Workplan (Scope of Work)

• Core functions

• Modernization

• ICR – Related functions

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SAF Core functions

• Administration of Human Resources• Accounting, payroll, stewardship of financial

resources • Enterprise resource and information technology

management, telecommunications• Procurement• Physical infrastructure management and

maintenance• Planning, monitoring and project evaluation

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Core functions - HR

• Pay and allowances administration• Human resources policies and reporting, strategies• Post classification• Recruitments, transfers, terminations and repatriations• Competition process• Health and insurance benefits, wellness programs• Performance evaluation• Staff training and development• Visas, work permits, travel documents• Contracting of independent consultants• Internship program• Administration of post-retirement health and life insurance• Support to other committees: hearing and reconsideration,

TRIBAD, insurance, retirement & pension, discipline, redress-of-grievance procedures

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Modernization and efficiencies - HR

• Results-based contracting system

• OAS Personnel database

• Taleo – electronic recruitment and selection tool to assist in competition process

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ICR requirements - HR

• HR services are provided to all staff members and independent consultants, regardless of funding source

• About 25% of the workforce is appointed/contracted using specific funds

• Less than 11% of budgeted resources in 2013 will come from ICR

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Delayed:•Integration of all resources into HR module (independent contractors and local staff)•Electronic filing system for all active personnel and medical files•Travel documents meeting ICAO standards•Implementation of HR self-service module•Performance evaluation training for OGSMS•Limited background checks on job applicants

Impact of resource cutbacks/shortages - HR

• Administration of OASES modules and Accounts system• Quality assurance and internal controls• Quarterly reports on resource management and the monthly

closing of accounts.• Coordination of the opening and definition of new accounts

for contributions, fund transfers, expenditure transfers, common costs, budgeting and charging of assets to projects and donations

• Management of the execution of the program budget and ‐specific funds

• Treasury and investment portfolio management• Payroll and accounts payable • Risk analysis • Official financial statements

Core functions - DFAMS

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Modernization and efficiencies - DFAMS

• Administrative Management Support Section (AMS)• Automation of Travel Expense Claims (TEC)• Development of tool for the reconciliation of travel expenses

and cash advance payments• “FINSTAT” - automated production of donor financial

statements by sharing it with AMS sections.• Implementation of electronic foreign currency conversion• Automation of Invoicing for GS/OAS Country Offices

Expenses• Transition to IPSAS

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Outputs and Effectiveness- DFAMS

• Audited financial statements of the General Secretariat issued with unqualified opinion

• Quarterly reports coordinated and prepared.• Payroll performed for over 600 employees and

associates, including income tax reimbursements and other benefits

• Safe and secure banking transactions with financial intermediaries in the Americas and Europe

• Electronic funding implemented in 25 GS/OAS Country Offices

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ICR requirements - DFAMS

• DFAMS provides services to member states, permanent observer states, and public and private donors

• Specific Funds account for nearly half of the organization’s annual revenue

• ICR funding provides for 20% of DFAMS funding

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Delayed:• Implementation of International Public Sector Accounting Standards (IPSAS)•Timeliness of account and inter module ‐reconciliations•Requirements definition for Tax Reimbursement System•Review and streamlining of business processes for payment of OAS Country Office expenses

Impact of resource cutbacks/shortages - DFAMS

• Automated administrative systems• Security policies and systems to protect OAS data• Technical support service• Maintenance services for communications, voice, and data

network• Hardware and licenses• Develop and maintain systems and applications to support

business processes• Business Intelligence and Reporting tools• Implementation of the OAS Software Development

Framework• Training • Videoconference systems• OAS Secure Communications system

Core functions - DOITS

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Modernization and efficiencies - DOITS

• Implementation of OAS Personnel Data Base (OPDB)• Implementation of the OAS Universal Desktop project (Windows

7 and Office 2010)• New OAS Email (MS Exchange 2010)• OAS Workstation Energy Management Strategy • Travel and Expense Claim System (TEC)• Leave Management System• First Phase of the Results Based Contracting System • Fellowship Management System (FMS)• Implementation of a cyber security lab -working in conjunction ‐

with CICTE

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Outputs and Effectiveness- DOITS

• 12,000 tickets annually for technical support • 8 systems and applications projects annually to

support business processes • 85% of the OAS Software Development Framework

implemented • 8 servers for Technological infrastructure

implemented and strengthened• Periodic system updates implemented• Timely identification of cyber-security threats and

proactive response

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ICR requirements - DOITS

• DOITS provides services and support to projects financed with specific funds

• Nearly one-quarter of users of OAS IT services are working in specific fund projects

• IT infrastructure services are provided to anyone working with the organization

• ICR provides for 1.3% of DOITS resources in 2013

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Delayed:•Maintenance and update of licenses for all desktop software.•Updating software versions in all application servers.•Configuration and full implementation of a lab environment for testing new technologies.•Expansion of data and backup storage according to current application needs.•Follow up of the OAS SDF (OAS Software Development ‐Framework) in every detail, developing all the necessary documentation for every software project.•Response to application development requests by the Areas (the backlog in responses is growing).

Impact of resource cutbacks/shortages - DOITS

• Procurement policies and guidelines• Management of purchases and contracts for common use ‐

services• Insurance • consular visas• Management of bidding processes• OASES procurement module and training of OAS staff• Travel policy and reporting, airline tickets and travel expenses• Requisitions• Legal review of all procurement contracts• “Minor purchases cards”• Management of Legal CPRs processing

Core functions - Procurement

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Modernization and efficiencies - Procurement

• Airfare and hotels discounts• Purchase card pilot project• 16 % savings on renewal of the GS/OAS foreign insurance

policy• 8 users certified in the purchasing module of OAS Enterprise

System (OASES)• Internal training sessions -Insurance and Procurement &

Contracting courses• Analysis of vendor performance• Desktop procedures for DP staff and end users -minimize

duplication when recording new vendors or updating existing records

• Digitization of purchase orders project

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Outputs and Effectiveness- Procurement

• 9,600 purchase orders for an approximate total of USD 18.5 million• 5 new formal bidding processes• 281 visas processed, including 132 for the GA• Support to the electoral observation missions and other special

activities provided (in Mexico, Dominican Republic, Bahamas and El Salvador)

• Over 39,000 minor purchases order processed per year• 500 visas processed, annual average• 40,000 requisitions managed• 50 weekly reports prepared• 100 OAS Staff trained in the use of the OASES procurement systems

per year• 200 OASES related user requests dealt with and closed, annual

average• 700 online office supply purchasing system administered, per year

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ICR requirements - Procurement

• DP provides services and support to projects and other core functions of the General Secretariat financed with specific funds, as well as with the Regular Fund

• Procurement services are provided to anyone who has an established working relationship with the organization (client or vendor)

• ICR provides for less than 23% of DP resources in 2013

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• Limited digitization of data storage -currently stored in paper form

• Purchase Card implementation postponed to fourth quarter.• Hiring of a Procurement Card Administrator -DP was unable to

secure sufficient funding to cover a one year position in 2011. ‐• Rely on an industry best practice buying team: The DP currently ‐

had three full time buyers and one part time buyer -Industry ‐best practices recommend assigning a dedicated buyer per area of expertise.

Impact of resource cutbacks/shortages - Procurement

• Maintenance, improvements, and renovations to General Secretariat buildings

• Requirements for LEED certification• Staff trained to ensure building maintenance and operation• Vehicles for transportation of authorized officials and courier services• Provision of security and custodial services through independent contractor

(IBS)• Security personnel for special events• Physical Inventory Management Systems• Parking and "Smartrip" allowance services• Office furniture for the different areas of the General Secretariat• Rental agreements and control of payments• Distribution of interoffice mail and delivery of documents• “Penalty mail” system• Document delivery system through specialized companies

Core functions - DGS

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Modernization and efficiencies - DGS

• Replacement of equipment -new cooling tower (MNB), nine new exhaust fans (GSB), surveillance camera (MUS),

• Structural survey (Pink Palace) and upgrade to 4th floor offices

• Reduction of energy use • Office Space Efficiency enhancement• Technical assistance in the process for Silver Leadership in

Energy and Environmental Design (LEED) certification for the GSB and the the Energy Star certification

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ICR requirements - DGS

• The DGS provides services to staff, missions, independent contractors, permanent observers, and the public at large

• The DGS receives less than 3.5% of its budget for direct management from ICR

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• Deferred maintenance in several buildings estimated at USD 38.4 million

• $6.6 million sufficient only for minimal operations

• Mortgage payments ($2 million per annum)• Utilities ($1.5 million)• Outsourced contracts: security, cleaning and maintenance ($2.2

million)• Maintenance: repairs, general maintenance, capital investments,

services and supplies ($0.9 million)

Impact of resource cutbacks/shortages - DGS

• Results indicators database• Program budget‐• Management of the Spain Fund and CIDA Fund• Technical assistance to the Project Evaluation Committee• Internal evaluations of Project profiles • Follow up on projects under execution‐• Reports on projects and decisions of the Project Evaluation Committee• Training in project management• Management of fundraising for development of planning, control and evaluation

instruments• Annual Operating Plan (AOP) execution module in the mandates management

system• Training of officials and mission members in consultations on mandate follow up‐• Technical assistance in project design provided to the areas of the General

Secretariat• Supervision of external evaluations of programs/projects• Assistance to the CAAP and other political bodies• Projects database• Monitoring and administration module of the system of projects

Core functions - DPE

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Modernization and efficiencies - DPE

• Mandate Database updated in order to link the operational goals included in the 2010, 2011 and 2012 Annual Operational Plans to the mandates approved in the 2009, 2010 and 2011 sessions of the General Assembly.

• Training session on the functions of the Mandates Management System was delivered for members of the Permanent Missions.

• A workshop on the new Project Management System has been delivered to staff and consultants of the General Secretariat

• A new process, aimed at sharing the results and recommendations of the external evaluations with beneficiary States, has been inaugurated.

• Technical advice provided to various areas of the Secretariat, such as CICAD, CICTE and DECO, in the preparation of terms of reference (TORs) for external evaluators, the circulation of the TORs among networks of consultants, the review of the proposals received, the determination of criteria for selection and the review of interim and final reports for consistency with the terms of reference.

• Technical assistance to the Project Formulation and Follow-up continues to be provided

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Outputs and Effectiveness- DPE

• DPE estimated the costs related to the draft resolutions presented at the 2012 General Assembly in Cochabamba.

• DPE supported the exercise for the identification of obsolete mandates and provided technical assistance for the Pilot Plan for Mandates Depuration

• DPE organized and facilitated meetings of the PEC Working Group and of the PEC

• Project Management training: 6 workshop per year, over 100 persons trained (OAS staff) and 60 Officials from the Member Countries trained.

• Projects data base and, Planning and Control System updated

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ICR requirements - DPE

In 2013, 38% of DPE’s funding will come from ICR

The work of the DPE supports all the technical departments of the OAS

Ensures integrated results-based approach to project design and implementation

This is critical to the organization’s capacity to obtain funding from donors.

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• Launching of the Project Management System: postponed to the third quarter due to the need for additional adjustments in the Formulation Module.

• Registration of executed results: postponed until 2013 due to the need for a new procedure to capture the information on executed budgets.

• Developing a module for monitoring budget implementation: postponed to the second half of 2012 due to the need a new procedure to capture the information on executed budgets.

Impact of resource cutbacks/shortages - DPE

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Impact of current funding on SF activities - DPE

o Funding from donors is not possible without:o Ensuring technical quality of project proposalso Capacity to report effectively on the achievement of results at the level of

outcomes, beyond the implementation of activities

o The evaluations coordinated by the DPE lend credibility to the work of the organization and its capacity to implement projects.

o Evaluations also allow for organizational learning which impacts directly on the quality of future project design and implementation.

o Monitoring enables the organization to report effectively to donors and Member States.

o Training staff on project management is essential in order to enable staff to carryout the work of program and project formulation, implementation and monitoring.

o The project management process supports accountability and effectiveness in the implementation of the Organization’s projects and programs.