ESTIMATING COSTS OF THE RESOLUTIONS

1. ESTIMATING COSTS OF THE RESOLUTIONS Department of Planning and Evaluation Secretary of Administration and Finance

2. Objectives • Identify the different types of mandates contained within the Resolutions. • Study the scope of the mandates for the General Secretariat. • Define the most appropriate methodology for estimating the costs of each mandate. • Understand the procedures for estimating costs.

3. Basic content • Context and purpose for estimating costs • Analyze the resolutions and their mandates • Methodologies for estimating costs • Introduction to the design and formulation of programs and projects • Introduction to operational planning • Analyze inputs and costs • Alternative procedures for assigning resources.

4. Context and Purpose for Estimating Costs It is necessary to count on preliminary information for setting priorities and allocating resources.

5. Analysis of the Resolutions and their mandates Resolutions Costs Different types of mandates

6. Analysis of the Resolutions and their mandates Types of mandates according to whom they are addressed: • To the Member states • To the General Secretariat generate costs • Declarative

7. Analysis of the Resolutions and their mandates Types of mandates according to their scope: • Strategic • Programmatic • Operational

8. Analysis of the Resolutions and their mandates 1. Strategic Mandates • Establish an end goal of strategic value, whose scope can include the Member states and eventually the General Secretariat • Constitute the basis for formulating and executing a program carried out by the General Secretariat • Can either identify specific products and objectives or not • Their collective scope depends on additional decisions at the institutional level during the medium-term

9. Analysis of the Resolutions and their mandates • Programmatic Mandates • Entail a strategic end and, in order to contribute to their accomplishment, establish a specific purpose. • Also constitute the basis for formulating and executing a program or project carried out by the General Secretariat. • Can either identify specific products or not. • Their particular scope depends on decisions at an operational level in the short-term.

10. Analysis of the Resolutions and their mandates • Operational Mandates • Establish specific products or activities • Their scope is relatively defined/limited

11. Methodologies for estimating costs The selection of the methodology depends on the type and scope of the mandate. 1. Estimating costs as part of the design and formulation of a project. 2. Estimating costs of specific products. 3. Estimating costs of activities.

12. Introduction to the Design and Formulation of Programs and Projects What is a program? A collection or set of projects that share the same end goal and to which each individual project contributes to the whole by satisfying a requirement or by solving a problem. Each project is necessary for achieving the end goal but none of them is sufficient on their own. What is a project? A collection of activities carried out to reach established objectives, designed to produce results in a limited term and with budgeted resources.

13. Introduction to the Design and Formulation of Programs and Projects Instruments for designing projects: • Analysis of the resources involved • Analysis of problems • Analysis of objectives • Logical Framework matrix

14. Introduction to the Design and Formulation of Programs and Projects • THE STRUCTURE OF THE LOGICAL FAMEWORK MATRIX (LFM)

15. Analysis of Inputs and Costs Procedure for estimating costs of the activities: • Define the dimension and scope. • Define tasks that are consistent with each activity • Identify inputs required for each activity • Establish the quantity of inputs required, according to the dimension and scope of the activity. • Estimate the unit cost of each input. • Calculate the total cost of each input. • Calculate the aggregated costs per activity. Once the costs per activity have been defined, it is possible to calculate the aggregated costs of the products and of the project

16. Introduction to Operational Planning • Strategic and operational planning • Operational planning and programming • Formulation of operating goals

17. Introduction to Operational Planning Attributes of operating goals SpecificS) Clearly defines what needs to be measured MeasurableM) Can be monitored AchievableA) Is realistic, not overly modest and not overly ambitious Relevant R) Is related to the objective to be achieved and the result to measured Time-bound/ - T) Expresses beginning and end/ Timely- in the moment in Timely which it is needed

18. Introduction to Operational Planning Methods for estimating costs of operating goals: • Zero base • Distribution of allocated resources

19. Alternative procedures for assigning resources • Assigning resources by priorities • Multi-year assignment

20. Conclusions • It is always possible to estimate costs if the type of mandate is properly interpreted. • There is not one singular way to estimate costs. • There is not a singular value for the cost of each mandate • For what purpose do we estimate costs?