Organization of American States OAS QUARTERLY RESOURCE MANAGEMENT REPORT MARCH 31, 2011

Transcription

1 Organization of American States Original: English OAS QUARTERLY RESOURCE MANAGEMENT REPORT MARCH 31, 2011 An overview of the financial position of the funds administered by the General Secretariat through the first quarter (January - March) of 2011 and status report on other management activities GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C , USA (202) /

2 3 FREQUENTLY ASKED QUESTIONS 5 SECTION I 6 A - QUARTERLY REPORTS IN COMPLIANCE WITH AG/RES.1 (XL-E/10) 6 Administrative and Financial Management Reports 21 B - MANAGEMENT DISCUSSION AND ANALYSIS 21 GS/OAS Resources at a Glance 22 Inflows from a Financial Perspective 24 Outflows from a Financial Perspective 26 Regular Fund Program-Budget Execution Status of Regular Fund Quota Contributions 30 Regular Fund Cash Balance: Liquidity Risk Assessment 31 GS/OAS Financial Investments 33 Activities Currently Delayed Due to Insufficient Human and Financial Resources 35 GS/OAS Improvements and Efficiencies 45 Recommendations from the Board of External Auditors 2010 Report 47 SECTION II 54 Chapter 2 - Office of the Assistant Secretary General (ASG) 57 Chapter 3 - Autonomous and/or Decentralized Entities 60 Chapter 4 - Secretariat for Legal Affairs (SLA) 63 Chapter 5 - Secretariat for Multidimensional Security (SMS) 66 Chapter 6 - Secretariat for Political Affairs (SPA) 69 Chapter 7 - Executive Secretariat for Integral Development (SEDI) 71 Chapter 8 - Secretariat for External Relations (SER) 75 Chapter 9 - Secretariat for Administration and Finance (SAF) 78 Other Activities 82 SECTION III 82 FINANCIAL STATEMENTS AND REPORTS 83 Combining Financial Statements 86 Regular Fund Budget Execution Status Report 88 Quota Payments 90 Compliance Report 93 Regular Fund Cash Flow: Liquidity Risk Assessment 96 Specific Funds: Statement of Changes in Fund Balance 124 Contributions to OAS Funds by Donor 127 Resolution CP/RES. 831 (1342/02) 131 Service and Revolving Funds 133 Indirect Cost Recovery (ICR) 135 Activities of the Offices of the General Secretariat in the member states OAS RESOURCES BY CHAPTER 48 All Chapters 51 Chapter 1 - Office of the Secretary General (SG)

3 1. Where can I find a brief summary of the financial position of the General Secretariat as a whole as well as highlights of the important activities that took place during the last quarter? An executive summary of the financial situation of the General Secretariat can be found on pages 7 to 8 (click the link for direct access). The Management Discussion and Analysis at Section I pages 21 to 30 provides more in-depth analysis. 2. How can I determine if management has complied with the reporting requirements on administrative and financial management issues as established by the General Assembly? Section I A page 6 of the OAS Quarterly Resource Management Report is presented in compliance with resolution AG/RES.1 (XL-E/10) which mandates the General Secretariat to present its administrative and financial management reports to the CAAP on a quarterly basis showing the progress attained in austerity, efficiency, effectiveness, transparency, and prudence in the use of the Organization s resources. 3. Where can I find a report on management progress in addressing recommendations from the Board of External Auditors? The new Board of External Auditors recommendations for 2010 can be found on Section I page 45. Please note that the 2010 Annual Audit of Accounts was recently finalized on April 30, thus the status of the recommendations will begin with the 2011 second quarter report. 4. Where can I find information on administrative efficiencies being achieved? Section I pages 35 to 44 provides a description of these improvements and efficiencies by department. 5. Which reports tell me how many people are employed by the OAS, where they work and how these employment contracts are financed? Detailed employee information distributed by Chapter, Department, and source of financing is found on Section II pages 48 to Where can I find a status report on the execution of the Regular Fund Program-Budget? Section III page 86 provides the most detailed Budget Execution report including transfers between Chapters. Section II page 48 provides a very high level summary by Chapter and Fund. Section I, pages 26 to 27 - Management Discussion and Analysis provides a discussion on Regular Fund budget execution. 7. Where can I find detailed reports on all of the sources of financing to the OAS, the uses of those funds and the projects that are being executed? All GS/OAS resources at a glance can be seen on the consolidated statements on Section I page 21. GS/OAS inflows by Fund can be found on Section I pages 22 to 23. GS/OAS outflows by Fund, object category, and disbursements by location can be found on Section I pages 24 to 25. Execution by Chapter and Department is reported under Section II. Specific Fund execution by project is reported under Section III pages 96 to

4 Frequently Asked Questions 8. Where can I find a report on indirect cost recovery and how these funds have been used? A detailed report on Indirect Cost Recovery (ICR) is found on Section III page Who are the top contributors to the Organization so far this year? A summary of the top 15 contributors by Source of Financing can be found on Section I page 23. A detailed report on contributions to OAS funds by Donor is found on Section III pages 124 to What is the cash flow outlook of the Regular Fund for the remainder of the year? A 2011 Regular Fund actual and projected cash balance, is found on Section I page Where can I find information on the number of persons employed under personal service contracts to the OAS, where those services are being provided, and how they are being financed? Information regarding persons employed under personal service contracts is reported by Chapter and Department on Section II page 49. 4

5 The reports included in this section are intended to serve as a comprehensive management guide to the strategic allocation of resources. These reports are also intended to inform on the General Secretariat s compliance with mandates of the General Assembly that address policies affecting administration and management, as well as to show progress in attaining austerity, efficiency, accountability, effectiveness, transparency, and prudence in the use of the Organization s resources. Furthermore, these reports include a follow-up of the recommendations from the Board of External Auditors and their status. This section is divided into the following sub-sections: A - QUARTERLY REPORTS IN COMPLIANCE WITH AG/RES.1 (XL-E/10) B - MANAGEMENT DISCUSSION AND ANALYSIS 5

6 This sub-section is presented in compliance with the quarterly reports requested of the General Secretariat through Resolution AG/RES.1 (XL-E/10) Program-Budget of the Regular Fund of the Organization for 2011 and Contributions to FEMCIDI under section III.A.2.b. This sub-section includes the following reports: 1. Executive summary / discussion and analysis of the report at the management level that summarizes the financial situation of the General Secretariat. 2. Detailed financial reports, including budgetary execution of the Regular Fund and the voluntary, specific, service, including indirect cost recovery ICR, and trust funds. and improvements. 7. Information on the progress in implementing the International Public Sector Accounting Standards. 8. Information on additional costs incurred further to nonobservance of meetings scheduled times. 9. Information on the foundations, civil society organizations, and other private entities that carry out projects with specific funds, including details on their areas of activity and the work carried out by the Secretariat for External Relations that forges cooperation between the Organization and these private entities. 3. Detailed information on the management of human resources, including information on staff transfers, reclassifications, resignations and terminations, and the budgetary impact of these changes, as well as gender distribution and geographic representation. 4. Detailed information on travel expense control measures as detailed in paragraph III.A.11 of this resolution. 5. Detailed information on the income generated through the rental of conference rooms and the Hall of the Americas. 6. Information on external contributions to support the activities of the organization, as well as contributions to building maintenance 6

7 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) 1. Executive summary / discussion and analysis of the report at the management level that summarizes the financial situation of the General Secretariat. The GS/OAS received approximately USD 27.4 million (which excludes inter-funds transactions of USD 10.0 million) during the first three months of Overall income through March has decreased compared to last year, primarily due to the timing of quota payments to the Regular Fund and a significant decline in Specific Fund contributions. Quota payments to the Regular Fund were lower during the first quarter by 27% compared to the same period in At the same time, inflows 1 through March 31 to the Specific Fund totaled USD 6.8 million; the lowest level of the past four years and 38% below the average contribution level of the past three years. Although most contributions to Specific Funds vary depending on donor s preferred themes, the difference in contributions received as compared to previous years is attributable, among others, to MAPP (Misión de Apoyo al Proceso de Paz) Colombia, Civil Registry in Haiti and Port Security projects. Based on current trends and data from prior years, Specific Fund projects will receive approximately USD 58 million, between April and December of 2011, totaling an annual contribution of roughly USD 65 million. This projection falls below previous contributions received in the last few years, and includes a possible second phase of the multi-million OAS/CIDA Cooperation Plan and a lower contribution amount related to the Spanish Fund. Pledges received for FEMCIDI increased to USD 1.3 million through March, compared to USD 0.5 million from last year. Although FEMCIDI pledges have increased by USD 0.8 million, the increment is due to the timing of the United States pledge of USD 1.2 million that was received during the month of February 2011 rather than the customary month of December, when the FEMCIDI cycle begins. 1 Inflows under the Regular Fund include current quotas, quotas in arrears, interest income, rental space income, and miscellaneous income, received through the first quarter of the year. Inflows under FEMCIDI include voluntary contributions from member states, interest and reimbursements. Inflows for Specific Funds include current year contributions for specific activities as mandated by the donor agreement, interest income and transfers. Inflows to Service and Revolving Funds have increased by 8% when compared to the same period in 2010 due primarily to one-time adjustments settling ICR reserved from the Spanish Fund. However, given a projected lower level of contributions to Specific Funds, projections for contributions to the ICR account has decreased for From an outflows perspective for all funds, the GS/OAS has committed USD 96.0 million (which excludes inter-funds transactions of USD 10.0 million) through March 31, 2011, a slight increase from the same period last year (USD 94.7 million). Outflows in the Regular Fund amounted to USD 74.8 million or 70% of the total committed; Specific Funds USD 17.6 million or 17%, and Service and Revolving Funds USD 9.5 million or 9%. These outflows combined, account for 96% of the total committed. The remaining amount corresponds to Other Funds. Execution in the Regular Fund budget represents 87.9% (including pre-obligations) of the appropriated amount of USD 85.3 million. The remaining USD 10.3 million is available for programming through the end of the year. The Regular Fund received USD 16.8 million in quota payments, equivalent to 20.4% of total quota receivable; in comparison to the 28.4% of the total quota receivable during the same period in During the first quarter of the year, member states earned credits in favor of their next year s quota payment in the amount of USD 26.9 thousand. The amount of credits increased to USD thousand through the end of April. As of March 31, 2011, from the outstanding USD 65.4 million quota receivable, USD 44.6 million is backed by payment plans accepted by the GS/OAS, as follows: Canada, Nicaragua and the United States. Most of the payments related to these payment plans are expected to be received during Of the remaining USD 20.8 million without a payment plan, there is no certainty as to when these amounts will be paid. As of the date of this report the amount of outstanding quota receivable has decreased from USD 65.4 million to USD 37.8 million of which USD

8 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) 1. Executive summary / discussion and analysis of the report at the management level that summarizes the financial situation of the General Secretariat (continued). is backed by payment plans. At the beginning of 2011, the ICR account had a cash balance of USD 2.3 million. As of March 31, 2011, the ICR fund collected USD 1.6 and recorded expenditures totaling USD 1.7 million, incurring a USD 0.1 million operating deficit. Obligations amount to USD 2.1 million and were recorded by program areas primarily to cover employment contracts through the end of the July As of March 31, 2011, the ICR account had an available balance of USD 125 thousand. Tax equalization This account is established to reimburse eligible employees of the General Secretariat for income taxes paid on their OAS income to their respective member state, when applicable. As of March 31, 2011, the Tax Equalization account had an approximate deficit of USD 980 thousand. As a service organization, the GS/OAS invests a significant amount of its income on salaries and contracts; Personnel (Object 1) represents 61% of total outflows, Performance contracts (Object 8) represents 9%, and Other Expenses (Object 9) represents 5% which includes administrative and technical support, subsidies to the Inter-American Court of Human Rights, the Pan American Development Foundation and the Inter-American Defense Board. Liquidity The Regular Fund began the year 2011 with a USD 2.9 million cash balance. During the first three months the balance has decreased to USD 0.5 million. Total inflows of USD 16.6 were recorded for the first quarter; of which, USD 16.3 million corresponded to quota payments (20.4% of the quota receivables for 2011). During the same period, outflows totaled USD 23.8 million. At this level of inflows and outflows, the cash balance for March would have ended with a deficit of USD 4.2 million; however, a temporary transfer of funds from the Building Maintenance Service Fund account in the amount of USD 4.7 million was recorded and subsequently reversed upon receipt of quota payments during the first week of April. Projections of inflows and outflows for the Regular Fund point to severe cash shortages beginning in the month of October and an actual cash deficit in November. 8

9 2. Detailed financial reports, including budgetary execution of the Regular Fund and the voluntary, specific, service, including indirect cost recovery ICR, and trust funds. a. See Section III of this quarterly report for all other detailed financial reports. b. As of March 31, 2011 ALL CHAPTERS Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) Service and Revolving Funds (in thousands of USD) Regular Fund Voluntary Funds (FEMCIDI) Specific Funds Indirect Cost Recovery (ICR) Other Accounts (a) Other Funds (b) TOTAL Chapter 1 Office of the Secretary General BUDGET EXECUTION VARIANCE 4,298 3, ,251 4,242 1,010 Chapter 2 Office of the Assistant Secretary General BUDGET 16,348 EXECUTION 14,926 VARIANCE 1,422 1, ,585 15,289 2,296 Chapter 3 Autonomous and/or Decentralized Entities BUDGET 11,930 EXECUTION 8,495 VARIANCE 3,435 6, ,783 21,902 2, ,397 3, (577) 2,040 8,506 Chapter 4 Secretariat for Legal Affairs BUDGET EXECUTION VARIANCE 2,529 2, , , , ,571 3,731 1,840 Chapter 5 Secretariat for Multidimensional Security BUDGET 3,922 EXECUTION 3,660 VARIANCE , , , ,251 12,211 15,039 Chapter 6 Secretariat for Political Affairs BUDGET EXECUTION VARIANCE 4,139 4, , , , ,661 14,022 4,638 Chapter 7 Secretariat for Integral Development BUDGET 14,718 5,067 (c) 26, EXECUTION 12, (c) 4, VARIANCE 2,125 4,188 22, ,861 61, ,233 14,768 43,560 Chapter 8 Secretariat for External Relations BUDGET EXECUTION VARIANCE 4,531 4,590 (59) 1, ,794 5, Chapter 9 Secretariat for Administration and Finance BUDGET 10,873 EXECUTION 10,898 VARIANCE (26) 1,390 2, ,538 1, ,268 12,763 1,506 TOTAL OTHER ACTIVITIES BUDGET EXECUTION VARIANCE 12,062 9,630 2,432 21,417 (563) 9,548 32,168 74, ,946 2,446 19,373 21,142 (638) 2,602 29,722 55,260 TOTAL BUDGET EXECUTION VARIANCE 85,350 5,067 98,995 3,827 9,659 49, ,710 75, ,956 3,702 7,634 3, ,500 10,304 4,188 71, ,025 46, ,210 (a) Includes accounts such as Parking Services, Rental Hall of the Americas, Building and Maintenance and Tax Equalization. See Section III of this report for further details. (b) Includes preliminary balances for the Trust for the Americas, Rowe Fund Pan American and Medical Benefits Trust Fund (as of March 31, 2011). (c) Budget corresponds to 2010 Cycle (May 1, 2010 thru June 30, 2011) and execution from January 1, 2011 to March 31,

10 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) 3. Detailed information on the management of human resources, including information on staff transfers, reclassifications, resignations and terminations, and the budgetary impact of these changes, as well as gender distribution and geographic representation. a. Staff Transfers Table 1 Staff Transfers from January March, 2011 TRANSFER FROM TRANSFER TO CHAPTER No. CHAPTER FUND GRADE Chapter 1. Office of the Secretary General (SG) 1 Chapter 2. Office of the Assistant Secretary General RF P03 1 Chapter 2. Office of the Assistant Secretary General RF P03 1 Chapter 9. Secretariat for Administration and Finance RF G05 1 Chapter 5. Secretariat for Multidimensional Security FND Assoc. Chapter 2. Office of the Assistant Secretary General (ASG) 1 Chapter 1. Office of the Secretary General RF P02 1 Chapter 3. Autonomous and/or Decentralized Entities RF P05 Chapter 3. Autonomous and/or Decentralized Entities 1 Chapter 2. Office of the Assistant Secretary General RF G05 Chapter 4. Secretariat for Legal Affairs (SLA) 1 Chapter 7. Executive Secretariat for Integral Development SF P02 1 Chapter 5. Executive Secretariat for Integral Development RF P05 Chapter 5. Secretariat for Multidimensional Security (SMS) 1 Chapter 2. Office of the Assistant Secretary General RF P04 Chapter 6. Secretariat for Political Affairs (SPA) 1 Chapter 1. Office of the Secretary General SF P01 Chapter 7. Executive Secretariat for Integral Development (SEDI) 2 Chapter 6. Secretariat for Political Affairs SF P01 1 Chapter 6. Secretariat for Political Affairs SF P03 1 Chapter 6. Secretariat for Political Affairs SF P01 Chapter 8. Secretariat for External Relations (SER) 1 Chapter 3. Autonomous and/or Decentralized Entities RF P05 Chapter 9. Secretariat for Administration and Finance (SAF) 1 Chapter 2. Office of the Assistant Secretary General RF P01 Total Transfers = 17 Note: There were no reclassifications of staff members during January March,

11 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) b. Separation from Services Table 2 Separation from Services from January March, 2011 CHAPTER OBSERVATION No. FUND GRADE Chapter 1. Office of the Secretary General Total Chapter 1 = 0 Chapter 2. Office of the Assistant Secretary General Expiration of Contract 1 RF P04 Separation by Agreement 1 RF P03 Resignation 1 RF P05 Resignation 1 RF G03 Total Chapter 2 = 4 Chapter 3. Autonomous and/or Decentralized Entities Expiration of Contract 2 FND Associate Expiration of Contract 1 SF Associate Separation by Agreement 1 RF G06 Resignation 1 RF P02 Resignation 4 SF P01 Resignation 1 SF Associate Total Chapter 3 = 10 Chapter 4. Secretariat for Legal Affairs Separation by Agreement 1 RF G05 Resignation 1 RF P02 Total Chapter 4 = 2 Chapter 5. Secretariat for Multidimensional Security Expiration of Contract 1 SF P01 Total Chapter 5 = 1 Chapter 6. Secretariat for Political Affairs Expiration of Contract 1 SF P02 Resignation 2 SF P02 Resignation 1 SF P03 Total Chapter 6 = 4 Chapter 7. Executive Secretariat for Integral Development Expiration of Contract 1 RF P01 Expiration of Contract 1 SF P01 Total Chapter 7 = 2 Chapter 8. Secretariat for External Relations Retirement 1 RF P01 Total Chapter 8 = 1 Chapter 9. Secretariat for Administration and Finance Resignation 1 RF D02 Retirement 2 RF G06 Total Chapter 9 = 3 Total Separation from Services = 27 11

12 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) c. Geographic Representation Based on the FAO methodology as of March 31, 2011, both the CARICOM and Central America regions were within the proper ranges. Table 3 As of March , staff distribution at the GS/OAS Total Points: 1,314.6 Membership Points (40%) Contribution Points (55%) Population Points (5%) 65.7 Membership (40%) POPULATION (5%) Quota (55%) Range Population* Pop % Points by Pop Quota* Points by Q Total Points Minimum Maximum Current Status CARICOM Antigua and Barbuda , % Below Bahamas , % Below Barbados , % Below Belize , % Below Dominica , % Below Grenada , % Below Guyana , % Below Haiti ,214, % Below Jamaica ,777, % Below Saint Kitts and Nevis , % Below Saint Lucia , % Within Range Saint Vincent and the Grenadines , % Within Range Suriname , % Within Range Trinidad and Tobago ,347, % Above Subtotal ,101, % Within Range South America Argentina ,883, % Above Bolivia ,185, % Above Brazil ,759, % Below Chile ,170, % Above Colombia ,373, % Above Ecuador ,895, % Above Paraguay ,551, % Within Range Peru ,109, % Above Uruguay ,383, % Above Venezuela ,237, % Above Subtotal ,549, % Above Central America Costa Rica ,698, % Within Range Dominican Republic ,241, % Within Range El Salvador ,198, % Within Range Guatemala ,601, % Above Honduras ,649, % Below Nicaragua ,891, % Below Panama ,526, % Within Range Subtotal ,808, % Within Range North America Canada ,747, % Below Mexico ,147, % Within Range United States ,533, % Below Subtotal ,427, % Below Total ,886, % * Source: UN Statistical Service. Data corresponds to 2010 estimates, using constant fertility rate variant 12

13 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) d. Gender Distribution The GS/OAS continues to emphasize gender equity at all levels of the Organization. As of March 31, 2011, 55% of staff was female and 45% male. Figure 1 Gender distribution at the GS/OAS as of March 31, 2011 Male % Figure 2 Gender distribution by level at the GS/OAS, as of March 31, Female % 27 Note: Total excludes 36 Associates SG ASG D02 D01 P05 P04 P03 P02 P01 G07 G05 G06 G04 G03 G02 G01 Female Male Note: Total excludes 36 Associates 13

14 4. Detailed information on travel expense control measures as detailed in paragraph III.A.11 of this resolution. Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) Tickets purchased in Economy using all funds: OPS monitors and provides summary information related to travel and compliance with the Permanent Council resolution that requires that all tickets paid for by the Regular Fund, FEMCIDI, specific funds, and trust funds administered by the General Secretariat be purchased in economy class, except for travel by the Secretary General, the Assistant Secretary General, and the Chair of the Permanent Council. The following chart provides the information registered by the OAS Preferred Travel Service Provider, Omega World Travel. Registered Travel with TSP (Omega World Travel) Economy 92.0% Executive - NA 0.3% Executive - A 7.7% Please note that travel purchased outside Omega World Travel is closely monitored by OPS to ensure that reservations are made following the corresponding rules and regulations. OPS reported only one case of non compliance during this quarter. This was because of an administrative error by OWT. A credit memo will be issued by OWT for the difference in favor of the GS/OAS. 14

15 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) 5. Detailed information on the income generated through the rental of conference rooms and the Hall of the Americas. Rental Hall of the Americas and Other Conference Rooms STATEMENT OF CHANGES IN FUND BALANCE For the period January 01, 2011 to Marchr 31, 2011 (in USD) 2011 Increases Rental income 28,198 Total Increases 28,198 Decreases Expenditures & Obligations Personnel Contracts 2,425 Building and Maintenance 66,227 Performance Contracts 2,400 Total Decreases 71,052 (A) Net change during period (42,854) Cash balance at beginning of period 155,201 Fund balance 112,347 (A) Includes obligations in the amount of USD 40,113 15

16 6. Information on external contribution to support the activities of the organization, as well as contributions to building maintenance and improvements. As of March 31, 2011, no contributions were received for building maintenance and improvements. Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) Organization of American States Contributions to OAS Funds by Donor From January 1, 2011 to March 31, 2011 Regular Fund 2011 Prior Years FEMCIDI Specific Funds (in USD) Trust for the Americas TOTAL Member States Antigua and Barbuda Argentina 100, ,000 Bahamas, Commonwealth of 62,800 6,300 69,100 Barbados 19,500 19,500 Belize Bolivia Brazil 125,847 60, ,943 Canada 2,990,128 1,222,089 4,212,217 Chile 875,300 30, ,300 Colombia 19,532 19,532 Costa Rica 152, ,500 Dominica, Commonwealth of Dominican Republic ,860 35,025 Ecuador 168, ,900 El Salvador 198, ,482 Grenada Guatemala 9,267 9,267 Guyana 17,900 2,227 20,127 Haiti 35,564 2,500 38,064 Honduras Jamaica Mexico 128, , ,822 Nicaragua 36,700 2,000 38,700 Panama 2, , ,030 Paraguay Peru 8,751 8,751 St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname 1,423 1,423 Trinidad and Tobago 2,406 58,895 61,301 United States 12,128,188 (c) 2,038, ,741 14,633,457 Uruguay Venezuela 57,000 57,000 Total Member States 16,732,260 92,564 37,360 4,536, ,741 21,865,041 (a) (b) (Continues on next page) 16

17 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) Organization of American States Contributions to OAS Funds by Donor From January 1, 2011 to March 31, 2011 Regular Fund 2011 Prior Years FEMCIDI Specific Funds (in USD) Trust for the Americas TOTAL Permanent Observers China Germany Netherlands Portugal Slovenia Switzerland Total Permanent Observers 25, , ,672 5,000 9,704 19, ,129 25, , ,672 5,000 9,704 19, ,129 Institutions and Others Applied Energy Services (AES) CBOC I A Development Bank Intl. Bank for Reconstruction and Development Intl. Institute for Democracy & Electoral Assistance Intl. Org. for Migration Pan American Development Foundation Swedish NGO for Human Rights W.K. Kellogg Foundation Multiple Funding Sources Total Institutions and Others 200, , , ,839 24,570 24, , , , , , ,000 26,880 26, , ,734 25,000 25, ,930 20, ,956 1,480, ,153 1,700,648 GRAND TOTAL 16,732,260 92,564 37,360 6,473, ,894 24,022,819 (a) Effective July 5, 2009, as per AG/RES. 2 (XXXVII E/09), Honduras is suspended from its right to participate in the Organization of American States in accordance with Article 21 of the Inter American Democratic Charter. (b) Does not include contributions to the Tax Equalization Fund and an estimated USD 34 thousand contributed through "Penalty Mail" (c) Does not include USD 1.2 million programmed to FEMCIDI (transferred from Specific Funds) as this amount was already reported in

18 7. Information on the progress in implementing the International Public Sector Accounting Standards (IPSAS). Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) During the last quarter of 2010, the GS/OAS was invited to present at the International Consortium of Government Financial Managers on its experience with IPSAS. Additionally, in early 2011, senior staff from SAF met with the head of accounting division at OECD to gain insight into the lessons learned from their 2002 adoption of IPSAS. Strategic linkages like these have helped management to gain key insight into potential implementation challenges. In February 2011, the Director of DFAMS delivered the first IPSAS progress report to CAAP where she recounted the accomplishments of the project to date, and the plan moving forward. The presentation also included a high level plan with a new estimated implementation date for IPSAS in The revised date was determined based on the experiences from other implementing agencies that had to delay their implementation dates due to the complexity of the project. Achievement of this target date is dependent on the allocation of dedicated human and financial resources to this project. Understanding the potential of IPSAS to impact diverse areas of the Organization s financial operations, a gap analysis was completed identifying potential risk areas. This risk matrix will be developed further as work continues. Lastly, a section of the Finance Portal was created to serve as the primary repository of information throughout the implementation process. The page currently contains all the presentations and progress reports that have been prepared to date, as well other reference documents prepared by other organizations and experts. 18

19 8. Information on additional costs incurred further to nonobservance of meetings scheduled times. Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) Information has not been received for the publication of this OAS Quarterly Resource Management Report. 19

20 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) 9. Information on the foundations, civil society organizations, and other private entities that carry out projects with specific funds, including details on their areas of activity and the work carried out by the Secretariat for External Relations that forges cooperation between the Organization and these private entities. Information has not been received for the publication of this OAS Quarterly Resource Management Report. 20

21 The GS/OAS financial position can be presented from two perspectives: financial and budgetary, as shown in Table 1. The financial perspective is based on actual inflows and outflows for all funds of the Organization. Inflows under the Regular Fund include current quotas, quotas in arrears, interest income, rental space income, and miscellaneous income, received through the first quarter of the year. Inflows under FEMCIDI include voluntary contributions from member states, interest and reimbursements. Inflows for Specific Funds include current year contributions for specific activities as mandated by the donor agreement, interest income and transfers. Service Funds include Regular Fund transfers for basic infrastructure and common costs, tax reimbursements, indirect cost recovery and other income. Inflows for Other Funds (which includes Medical Benefit, Rowe Pan-American and Trust for the Americas) vary depending on the nature for which these funds were established and may include unrealized gain from investments. On the outflows side, the Regular, Specific and Service Funds include expenditures, obligations, payroll encumbrances to year-end, transfers, and other decreases. Outflows under FEMCIDI include only non-payroll expenditures, obligations and transfers. Other Funds include only expenditures and transfers. For all funds, the ending balance represents the excess of inflows over outflows plus the beginning balances carried forward from the prior year. The budgetary perspective for the Regular Fund reflects the authorized appropriations for the 2011 cycle and does not show actual income collected. For FEMCIDI, it reflects the authorized appropriations for the 2010 cycle, which began on May 1, 2010 and will end on June 30, 2011, and does not show actual income collected, as shown under the financial perspective. The budget for Specific, Service, and Other Funds includes beginning balances, contributions, transfers, and miscellaneous income through the first quarter of the year, reflecting funds available for programming. Execution for the Regular Fund and FEMCIDI includes expenditures and obligations for the current budgetary year. Execution for Specific, Service, and Trust Funds may include expenditures and obligations from prior budgetary years. Table 1 GS/OAS Resources (in millions of USD) From January 1, 2011 to March FINANCIAL PERSPECTIVE Regular Fund Voluntary Funds (FEMCIDI) Specific Funds Service and Revolving Funds Other Funds (*) Interfund Transactions TOTAL 2011 BEGINNING BALANCE INFLOWS OUTFLOWS ENDING BALANCE (58.1) (10.0) (96.0) (74.8) (0.9) (17.6) (9.5) (3.2) BUDGETARY PERSPECTIVE Regular Fund Voluntary Funds (FEMCIDI) Specific Funds Service and Revolving Funds Other Funds TOTAL 2011 BUDGET EXECUTION VARIANCE (*) Includes Medical Benefits Trust Fund, Rowe Pan American Fund and Trust for the Americas. 21

22 Figure 1 Trend and Composition of Inflows by Fund (in millions of USD) From January 1 to March 31 TREND Trend and Composition of Inflows by Fund As defined on page 5, inflows to the OAS include more than just quota payments or voluntary contributions. Figure 1 presents a comparative summary of all inflows through March 31, for the last 5 years for funds managed by the GS/OAS, including Trust funds, for which the GS/OAS has fiduciary responsibility. The administration of each fund is regulated by its own mandates, statutes or regulations. Overall, the GS/ OAS received approximately USD 27.4 million (excludes inter-funds transactions of USD 10.0 million) during the first three months of Regular Fund Service and Revolving Funds Other Funds* FEMCIDI Specific Funds Overall income through March has decreased compared to last year, primarily due to the timing of quota payments to the Regular Fund and a significant decline in Specific Fund contributions. Quotas payments to the Regular Fund were lower during the first quarter by 27% compared to the same period in Pledges received for FEMCIDI increased to USD 1.3 million through March, compared to USD 0.5 million from last year. Although FEMCIDI pledges have increased by USD 0.8 million, the increment is due to the timing of the United States pledge of USD 1.2 million that was received during the month of February 2011 rather than the customary month of December, when the FEMCIDI cycle begins. COMPOSITION Other Funds* % FEMCIDI 1.3 3% In addition, overall inflows to Service and Revolving Funds have increased by 8% when compared to the same period in 2010 due primarily to adjustments in the Indirect Cost Recovery (ICR) account related to some prior year transactions of the Spanish Fund. Service and Revolving Funds % ** Includes Inter fund transactions of USD 10 million Specific Funds % * Includes Medical Benefits Fund, Rowe Pan American Fund and Trust for the Americas Regular Fund % Total 2011 USD 37.4 M** 100% Across individuals funds, the chart shows mixed trends. Inflows as of March corresponding to inflows to Specific Fund are at the lowest level from the past four years. The amount of inflows received as of March 31 (USD 6.8 million) represents a 38% decrease compared to the average contributions received in the last three years. Although most inflows to Specific Funds vary depending on donor s preferred themes, the difference in contributions received as compared to previous years is attributable, among others, to MAPP (Misión de Apoyo al Proceso de Paz) Colombia, Civil Registry in Haiti and Port Security projects. Based on current trends and data from prior years, Specific Fund projects will receive approximately USD 58 million through year-end, totaling an annual contribution of roughly USD 65 million. This projection falls below 22

23 Section I Inflows from a Financial Perspective previous contributions received in the last few years, even when it includes a possible second phase of the multi-million OAS/CIDA Cooperation Plan. On the other hand, the projection contemplates a lower contribution amount related to the Spanish Fund. Inflows attributed to Other Funds have increased from USD 4.2 million in 2010 to USD 4.9 million in 2011, mostly due to an increase in the portfolio s market value of the Medical Benefits Fund and the Rowe Pan-American Fund. Contributions by Source of Financing (USD 0.9 million) and Mexico (USD 0.6 million). From the USD 14.6 million contributed by the United States to all funds, USD 12.1 million corresponds to the Regular Fund. At the same time, from the USD 4.2 million contributed by Canada, 71% constitutes quota payments to the Regular Fund and 29% represents contributions to Specific Funds. Chile s contribution of USD 0.9 million corresponds to the Regular fund, while 83% of Mexico s contribution of USD 0.6 million has been allocated to Specific Funds. Among Permanent Observers, Germany is at the top of contributors with USD 0.2 million to Specific Funds mainly to support sustainable democracy initiatives. During the first quarter of 2011 (see Table 2), the United States was the major contributor to the GS/OAS (USD 14.6 million), followed by Canada (USD 4.2 million), Chile Table 2 Contributions by Source of Financing - Top Donors From January 1, 2011 to March 31, 2011 (in millions of USD) Contributor Regular Fund Voluntary Funds (FEMCIDI) Specific Funds Trust for the Americas TOTAL United States 12.1 Canada 3.0 Chile 0.9 Mexico 0.1 Intl. Organization for Migration Panama Germany Applied Energy Services (AES) El Salvador Intl. Bank for Reconstruction and Development Brazil 0.1 Ecuador 0.2 The Conference Board of Canada (CBOC) Netherlands Other Member States 0.4 Multiple Funding Sources & Others *** * *** ** *** 0.9 TOTAL 16.8 ** * Does not include USD 1.2 million programmed to FEMCIDI (transferred from Specific Funds) as this amount was already reported in ** Although Voluntary Funds show zero due to rounding in millions, this corresponds to contributions from the Dominican Republic for USD 34,860 and Haiti for USD 2,500. *** Although Funds show zero due to rounding in millions, this corresponds to contributions from Chile for USD 30,000, Panama for USD 2,030, and Multiple Funding Sources & Others for USD 20,

24 Outflows by fund Outflows for the Regular, Specific and Service Funds include expenditures, and obligations (less carry-over obligations) payroll encumbrances to year end, transfers, and other decreases. Outflows under FEMCIDI include only non payroll expenditures, obligations and transfers. Other Funds include only expenditures and transfers. Total outflows in GS/OAS funds totaled USD 96.0 million (excludes interfunds transactions of USD 10.0 million) through March 31, 2011, a slight increase from the same period last year (USD 94.7 million). Figure 2 shows that outflows in the Regular Fund amounted to USD 74.8 million or 70% of the total committed; Specific Funds USD 17.6 million or 17%, and Service and Revolving Funds USD 9.5 million or 9%. These outflows combined, account for 96% of the total committed. The remaining amount corresponds to Other Funds. Outflows by category 61% of total outflows, Building and Maintenance (Object 6) represents 9%, Performance contracts (Object 8) represents 9%, Other expenses (Object 9) represents 5% which includes administrative and technical support, subsidies to the Inter-American Court of Human Rights, the Pan American Development Foundation and the Inter-American Defense Board. Figure 2 Outflows by Fund From January 1, 2011 to March 31, 2011 (in millions of USD) Service and Revolving Funds 9.5 9% Other Funds 3.2 3% Voluntary Funds (FEMCIDI) 0.9 1% Specific Funds % Regular Fund % As a service organization, the GS/OAS invests a significant amount of its income on salaries and contracts (Figure 3); Personnel (Object 1) represents * Includes Inter fund transactions of USD 10 million Total: USD * Figure 3 Outflows by category From January 1, 2011 to March 31, 2011 (in millions of USD) Personnel Temporary Posts Fellowships Travel Documents Equipment, Supplies and Maintenance Building and Maintenance Performance Contracts 2011 USD USD USD Other expenses Other outflows * * Includes Inter fund transactions of USD 10 million 24

25 Disbursements by Location The General Secretariat executes numerous activities throughout its member states, requiring payment for goods and services in their corresponding local currencies. Figure 4 shows disbursements by location through the first three quarters of the year, totaling USD million. The majority of disbursements occur in Headquarters, mostly due to payroll expenses and infrastructure costs. Section I Outflows from a Financial Perspective A great majority of disbursements are related to the Mission to Support the Peace process in Colombia (MAPP), Electoral Observation Mission and civil registry activities in Haiti, demining and judicial facilitators activities in Nicaragua. There were no disbursements for activities held in Canada or Chile. Disbursements in the Caribbean are also significant due to projects related to recovery efforts in Haiti. Figure 4 Disbursements by Location (in millions of USD) Belize Bahamas Honduras Dominican Republic Mexico 0.27 Costa Rica Saint Kitts and Nevis Guatemala 0.24 Panama 0.11 El Salvador Haiti Antigua and Barbuda 0.30 Suriname Nicaragua 0.34 Guyana Jamaica Dominica Colombia 1.01 Venezuela Santa Lucia Barbados Ecuador Saint Vicent and the Grenadines 0.06 Grenada Peru Trinidad and Tobago Bolivia Paraguay 0.15 Brazil 0.17 Argentina 0.21 Uruguay 0.25 Headquarters (DC) TOTAL DISBURSEMENT USD M 25

26 Approved Levels For 2011, through Resolution AG/RES. 1 (XL-E/10) corr. 1, the General Secretariat was authorized to execute up to USD 85.3 million for Regular Fund activities. Table 3 presents the 2011 original and modified appropriation and the corresponding sources of financing. Quota assessments represent 94.8% of the sources of financing for the 2011 appropriation. from chapter 4 to chapter 7. Other activities correspond to personnel reinforcements and transferring of projects between chapters. Table 4 Transfers Between Chapters (in thousands of USD) Table Appropriations and Financing (in thousands of USD) Original Modified Appropriations Personnel 54, ,943.8 Non personnel 30, , , ,349.8 Actual Projected Mar 31, 2011 Sources of Financing Quota Assessment 80, ,285.5 Administrative and Technical Support 3,064.0 a Other Income 1,335.0 b , ,629.1 a) ICR Collection from Specific Funds (USD 2,500.0) and FEMCIDI (USD 564) b) Interest, rents, refunds and deobligations income Transfers Between Chapters Most of the transfers between chapters were related to personnel during the first quarter (see Table 4). Executive Order rev.4 was released during the month of February: the Department of Legal Services was transferred from chapter 4 to chapter 1, and the Special Legal program was transferred Original Appropriation AG/RES. 1 (XL E/10) CORR. 1 Transfers January to March 2011 Modified Appropriation as of March 31, 2011 % CHAPTERS (a) (b) (c) (b/a) Chapter 1 Office of the Secretary General 2, , , % Chapter 2 Office of the Assistant Secretary General 16,358.1 (9.8) 16,348.3 Chapter 3 Autonomous and/or Decentralized Entities 12,177.4 (247.1) 11,930.3 Chapter 4 Secretariat for Legal Affairs 3,587.3 (1,058.6) 2,528.7 Chapter 5 Secretariat for Multidimensional Security 3, % 2.0% 29.5% 3, % Chapter 6 Secretariat for Political Affairs 4,784.3 (645.7) 4,138.6 Chapter 7 Executive Secretariat for Integral Development 14, , % Chapter 8 Secretariat for External Relations 4, , % Chapter 9 Secretariat for Administration and Finance 10,922.5 (49.7) 10,872.8 Chapter 10 Basic Infrastructure and Common costs 12, ,062.4 Grand Total 85, ,349.8 Regular Budgetary Execution by Chapter 13.5% As of March 31, 2011 the 2011 Regular Fund appropriation of USD 85.3 million has been executed up to USD 75.0 million, or 87.9% of the appropriation. Execution includes expenditures, payroll encumbrances, and outstanding commitments through year-end. Table 5 shows the Regular Fund modified appropriation (per Table 4) versus Execution, which includes expenditures and obligation. The variance corresponds to the unused appropriations as of March 31, As of March 31, 2011, USD 10.3 million remained available for programming. 0.5% 26

27 Section I Regular Fund Program-Budget Execution 2010 Six of the ten chapters have already executed over 90% of their corresponding appropriations (Figure 5). The lowest percentage of execution comes from Chapter 3 - Autonomous and/or Decentralized Entities 71.2%, given that the subsidies given to Inter-American Court of Human Rights, Inter- American Defense Board and the Pan American Development Foundation are paid on a quarterly basis. Table 5 Budget vs Execution As of March 31, 2011 (in thousands of USD) Modified Appropriation Execution Variance CHAPTERS (a) (b) (c) = (a) (b) Chapter 1 Office of the Secretary General 4, , Chapter 2 Office of the Assistant Secretary General 16, , ,422.1 Chapter 3 Autonomous and/or Decentralized Entities 11, , ,435.3 Chapter 4 Secretariat for Legal Affairs 2, , Chapter 5 Secretariat for Multidimensional Security 3, , Chapter 6 Secretariat for Political Affairs 4, , Chapter 7 Executive Secretariat for Integral Development 14, , ,124.7 Chapter 8 Secretariat for External Relations 4, ,590.0 (58.9) * Chapter 9 Secretariat for Administration and Finance 10, ,898.4 (25.6) * Chapter 10 Basic Infrastructure and Common costs 12, , ,432.4 Grand Total 85, ,046.2 ** 10,303.6 * Correspond to budgetary and execution personnel variances and reinforcements ** Includes Pre Obligations in the amount of USD Figure 5 Budgetary Execution by Program As of March 31, 2011 (in millions of USD) CHP 1 CHP 2 CHP 3 CHP 4 CHP 5 CHP 6 CHP 7 CHP 8 CHP 9 CHP10 Modified Appropriation Expenditures Obligations 27