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GS /OAS/ SAF – April 09, 2019

Proposed Program-Budget of the Organization of American States 2020. GS /OAS/ SAF – April 09, 2019. INTRODUCTION. Budget presented by the Secretary General and supported by all General Secretariat.

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GS /OAS/ SAF – April 09, 2019

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  1. Proposed Program-Budget of the Organization of American States 2020 GS/OAS/SAF– April 09, 2019

  2. INTRODUCTION • Budget presented by the Secretary General and supported by all General Secretariat. • Largest challenge is AG/RES 2912, the “Cancun Accord”. An unfunded mandate of $8.6 million over three years. • $82.7 million indicative ceiling (same as 2019*) creates a need for deep cuts. • * Actually $500,000 lower than 2019 since the October 2018 Budget Resolution orders a transfer of $500,000 in ICR-Reserve funds for Chapter 12 infrastructure costs.

  3. SWOT Analysis* *Strengths-Weaknesses-Opportunities-Threats

  4. SWOT Analysis

  5. Initial Results: 2018 SWOT Analysis • De-emphasize: • Leo Rowe fund • Scholarship and training program • Meetings on Science and Technology • Biodiversity Information Network • Energy & Climate • Transnational Organized Crime • SICREMI Source: “Prioritization of mandates, services and activities” OAS: Strategic Counsel for Organizational Development and Management by Results. October 12, 2018 (CP/CAAP/INF-180/18 EnglishSpanish) • Focus on: • MAPP in Colombia • Political leadership • REMJA – meetings of the Attorneys General • Venezuela migration crisis • Strengthen democracy in Nicaragua • Human Rights • Gender rights • Belize/Guatemala Peace • MACCIH Honduras

  6. APPROACH • New approach in 2020 • Budget prepared by SAF for the first time since the SCODMR was established. • Previously, budget projected full year of all positions. Savings from vacant positions where transferred to cover fixed costs. • Eliminating in the budget all vacancies, budgeted fixed costs will be in line to actual figures. * As of February 28, 2019. Note many are in CIDH

  7. CONSIDERATIONS Approved Budgets by Pillar 2016 - 2019 In US millions 2019 $82.7 2020 $ 82.7 2016 $84.3 2018 $81.6 2017 $73.5 $23.4 $20.3 $21.8 $21.5 Reduction to other pillars $22.9 $27.1 $22.1 $23.0 $8.9 $9.0 $9.2 $5.2 $6.7 $5.2 $5.3 $8.6 $4.5 $8.5 $8.2 $7.8 $19.8 $16.9 $11.2 $11.0 $14.1 Without increases in the “CEILING”, all other Pillars will face substantial reductions to absorb the "Cancun effect “AG/RES. 2908 (XLVII-O/17) - PROMOTION AND PROTECTION OF HUMAN RIGHTS Section xvi.

  8. CONSIDERATIONS • Third year of “Cancun Accord”. Cumulative $8.6 million to Human Rights system from the rest of the OAS. • Third unfunded wage increase, estimated to be $1.2 million. • Third consecutive year without adjusting price inflation, 5.6% loss in purchasing power. • Adjust properly budget of chapter 12 fixed costs, $2.3 million.

  9. CONSIDERATIONS • Chapter 12 main categories: • Systems – Internet, Telecommunications and Licenses • Cleaning, Maintenance, Security and Utilities • Retirement for ex-SGs and ex-ASGs • Health insurance for retirees • General Insurance • Employee statutory (i.e. terminations, home leave, recruiting)

  10. CHAPTER 12 REDUCTIONS AND EFFICIENCIES • LED bulb replacement program • Solar panels on the GSB roof shortly • A new roof on the GSB • Steam heating being replaced with gas fired heating • Upgrading HVAC equipment • Real Estate strategy – LEEDS certified building • Guard force was cut (DANGER) • Cleaning force cut • Insurance cut (DANGER) • Trash collection service cut • Expanding recycling of waste to enhance revenue stream

  11. TO BE PRESENTED IN UPCOMING WEEKS • Items to be discussed as requested by Member States in conjunction with approving the budget • External audit status and report, this will provided valuable information for your deliberations. • Health insurance, cuts of benefits to Employees, retirees and their participating dependents. • New ERP, updatesto be presented. • Critical comprehensive HR strategy,updates to be presented. • Travel Management Center contract competition, updates to be presented. • Real estate strategy continues, updates if needed.

  12. SG’s BUDGET CONCERNS • SG continues with a severe fiscal constraint, strong internal controls and deepening austerity. • Budget needs flexibility, in order to react quickly to emerging threats. • Charter of the OAS Charter Article 113: • “The Secretary General shall: • a) Establish such offices of the General Secretariat as are necessary to accomplish its purposes; and • b) Determine the number of officers and employees of the General Secretariat, appoint them, regulate their powers and duties, and fix their remuneration. • The Secretary General shall exercise this authority in accordance with such general • standards and budgetary provisions as may be established by the General Assembly.” • Retain the ability to reprogram between chapters – perhaps expand it to 7.5 or 10%. • Allow the ability to exceed position limits temporarily • Continue rebuilding Regular Fund Reserve.

  13. SG’s BUDGET CONCERNS Reserve Subfund of the Regular Fund

  14. SG’s BUDGET CONCERNS • Reduce risk to the organization by decreasing reliance on CPRs. • Cutting mandates rather than people.

  15. CAVEATS • Budget does not include transition of a new SG. Last transition in 2015 had a cost of $1.7 million. • Current budget proposal does not contemplate buy-outs and early retirements. • ICR distributed using new methodology. • Transfer of personnel between areas can distort budget figures. • 2020 Budget Ceiling is $500 thousand under 2019 Budget Ceiling. • AG/RES. 1 (LIII-E/18), Resolves 5. • “To authorized the General Secretariat, on an exceptional basis, to use US$500,000 from the Reserve Subfund of the Indirect Cost Recovery Fund to supplement the appropriations for Chapter XII of the program-budget of the Regular Fund of the Organization for 2019 and associated expenses therein. “

  16. 2020 BUDGET PROCESS Overview to establish the budget expenditure ceiling Regular Fund Budget Baseline for 2020 In US thousands

  17. 2020 BUDGET PROCESS

  18. 2020 BUDGET PROCESS Jouneyfrom 2017 to 2020 (in millions of USD)

  19. 2020 BUDGET PROCESS • One-on-one meetings with all secretaries. • Secretary General review and adjustments. • Revised figures given to each secretariat for their review and required actions.

  20. 2020 BUDGET PROCESS - RESULTS

  21. CONCLUSIONS • Budget presented by the Secretary General. • Still needs work to ensure Member States priorities are reflected. • Current proposal presents one way to manage the $6.8 million shortfall, other ideas are welcome. • This proposed budget from the Secretary General is a starting point for your discussions.

  22. Questions? Comments?

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