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Overview of Presentation on VC and MP Budget for the Ozone Secretariat

Overview of Presentation on VC and MP Budget for the Ozone Secretariat. Budgetary Principles Used by the Secretariat Overview of VC and MP Budgets Proposed changes for the 2012-14 VC budget Proposed changes for the 2012 MP budget Review Status of the VC and MP Trust Funds.

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Overview of Presentation on VC and MP Budget for the Ozone Secretariat

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  1. Overview of Presentation on VC and MP Budget for the Ozone Secretariat • Budgetary Principles Used by the Secretariat • Overview of VC and MP Budgets • Proposed changes for the 2012-14 VC budget • Proposed changes for the 2012 MP budget • Review Status of the VC and MP Trust Funds

  2. Budgetary Principles • Full Transparency • Efforts made to ensure level contributions • Maximum Budget Efficiency - Lean budgeting – typically over 90% - Realistic estimates - Spending only when essential

  3. Overview of Budgets • Separate budgeting for the VC and MP with some shared budget lines • VC budget is considered every 3 years, in the year the VC parties meet - so we will be considering here • Focus also on MP budget, which is considered annually • Continued focus on managing the surplus of the trust funds to reduce impacts on contributions

  4. Overview of VC/MP Joint Budget • Approximate distribution of combined 2011 budgets ($5.4m - not including 13% Support Cost) - Meeting costs: 41% - Staff costs: 32% • Assessment Panels: 11% • Reports/Commun: 5% • Office Travel: 5% • Office Expenses: 3% • Consultants: 2%

  5. MP 2012 budget – Proposed changes +$100k additional over 2010 • Salaries to reflect actual costs: +$28k • Data reporting and analysis +$35k • OEWG Costs: -$34k • MOP costs: +$150k cyclical - due to no cost sharing with VC budget • [Contracts: -$13k] • Assessment Panel Meetings: -$50k • Personal computers, photocopiers, accessories, mainenence: -$25k • Reporting: -$10k • Hospitality: -$5k • Office rental +$1.5k

  6. VC 2012 budget – Proposed changes -$545k less compared to 2011 • Salaries to reflect actual costs: +9k • Ozone Research Managers -$225k – due to no meeting this year • COP/Bureau costs: -$240k cyclical - due to no COP/Bureau in 2011 • Equipment costs: +1500 net for paperless system equipment • Personal computers, photocopiers, accessories, mainenence: -$25k • Hospitality: -$10k due to no meeting this year

  7. Looking Back – Looking Forward • For the last 5 years (07-11), the Secretariat, working with the Parties, has ensured that contributions remained stable – even in the face of over 15% global inflation over that time • It has done this through careful planning, slim budgeting, and careful use of the historic trust fund surplus

  8. Trust Fund Surplus/Draw downs • Between 1995 and 2002, the Parties built up a sizable surplus in the MP and VC trust funds • Beginning in 2002, the Parties systematically reduced the MP and VC surplus, by drawing it down and using it to fund a substantial portion of the Secretariat budget • However, it was understood that when the draw downs cease, maintenance of the same MP and VC budget levels and services will require contributions to rise by the level of the draw downs

  9. In search of the “soft landing” • Effort to decrease surplus initially successful: MP and VC surplus were drawn down by almost $8m. The drawdown and use of related funds reduced the parties contributions and have enabled us to maintain stable contributions levels. Our joint goal was to begin decreasing the drawdown and increasing the contributions slowly over time, so that contributions did not increase suddenly in any one year - goal was to have a “soft landing”

  10. New Realities • While the Committee had discussed reducing the drawdown and increasing contributions as soon as 2010, the global economic situation suggests the continued desirability of keeping contributions level • On the positive side, increased voluntary support and interest income would support this – if Parties do not request too much additional work (studies, seminars, etc)

  11. Looking Forward • Given the global situation and the status of the trust funds, – we believe we can maintain level contributions for both trust funds for at least the next 3 years, and start a gradual process toward a soft landing after that time. • This will be possible so long as any new requests are modest

  12. Conclusion • The Secretariat is working hard to keep costs in line and keep new budget requests to the minimum necessary to maintain what we hope you consider to be high quality services Of key importance, this subgroup is expected to pass to the plenary a proposed 2012 MP budget and a proposed 2012 – 2014 VC budget – the secretariat is recommending a budget and draw-downs designed to maintain level contributions • The Secretariat stands ready to assist you in any way that we can

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