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OAS Quarterly Resource Management Report As of September 30, 2007

OAS Quarterly Resource Management Report As of September 30, 2007 Committee on Administrative and Budgetary Affairs (CAAP). SECRETARIAT FOR ADMINISTRATION AND FINANCE October 2007. What is covered in this presentation?. I. Context

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OAS Quarterly Resource Management Report As of September 30, 2007

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  1. OAS Quarterly Resource Management Report As of September 30, 2007 Committee on Administrative and Budgetary Affairs (CAAP) SECRETARIAT FOR ADMINISTRATION AND FINANCE October 2007

  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

  3. I Context OAS Quarterly Resource Management Report as of SEP-07

  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

  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…” Annual Audit of Accounts Program-Budget Quarterly Reports OAS Quarterly Resource Management Report as of SEP-07

  6. ContextAnnual OAS Management Cycle:Annual Audit, RF Program-Budget and Quarterly Reports aligned to CAAP’s Agenda Dec 31 Jan 1 Preliminary Audit of Accounts (SEP to OCT) Audit of Accounts (JAN to APR) Phase 2 SAF inputs budget Information Report from the Board of External Auditors (end of MAR) Phase 1 Program-Budget formulation and planning Phase 3 Budget analysis, preparation and presentation 90 days prior to GA Year-round financial planning and performance assessment 3rd Quarterly Report Sep 30 Mar 31 1st Quarterly Report Phase 4 Discussion and review by CAAP and recommendation to the Preparatory Committee 15 days prior to GA Phase 6 Publication and distribution of the Budget by no later than 60 days after approval Publication of RF Program-Budget Phase 5 (Jun 1st – Jun 6th) Approval of Program-Budget by the GA Publication of Annual Audit of Accounts Legend Annual Audit RF Program-Budget Quarterly Reports Jun 30 2nd Quarterly Report

  7. II Report’s content and 3rd quarter resource management results 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 7

  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. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 8

  9. OAS Quarterly ResourceManagement Report • Report format follows similar reports done by private and public organizations: SECTION I Management Discussion and Analysis Provides an overview of the financial position of the Organization and a status report on other management activities. SECTION II Financial Statements and Reports Provides detailed financial statements and projections. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 9

  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. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 10

  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). 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 11

  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. Backed by payment plans: OCTOBER $0.06 million DECEMBER $11.4 million 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 12

  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. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 13

  14. Highlights from 3rd quarter resultsFinancing surplus (deficit) • 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. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 14

  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. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 15

  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. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 16

  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: • ICR policy issued at the end of May 2007; • “grandfathering” of existing agreements; and, • Specific Fund contributions lower than expected. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 17

  18. Highlights from 3rd quarter resultsHuman Resources as of September 30, 2007 (pages 18-21) • 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. • The Headcount is as follows: • The GS/OAS is currently developing a report that analyzes the geographic representation at the OAS. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 18

  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. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 19

  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. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 20

  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. 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 21

  22. III Next Steps for CAAP and GS/OAS OPERATING PLAN – DBFS/FRC Section

  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. CP19079E 9/5/2014 OAS Quarterly Resource Management Report as of SEP-07 23

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