Organization of American States OAS QUARTERLY RESOURCE MANAGEMENT REPORT SEPTEMBER 30, 2010

Transcription

1 Organization of American States Original: English OAS QUARTERLY RESOURCE MANAGEMENT REPORT SEPTEMBER 30, 2010 An overview of the financial position of the funds administered by the General Secretariat through the third quarter (January - September) of 2010 and status report on other management activities GENERAL SECRETARIAT (GS/OAS) 1889 F Street, N.W., Washington, D.C , USA (202) /

2 SECTION I A - QUARTERLY REPORTS COMPLIANCE IN ACCORDANCE TO AG/RES.1 (XL-E/10) 4 Administrative and Financial Management Reports B - MANAGEMENT DISCUSSION AND ANALYSIS 20 GS/OAS Resources at a Glance 21 Inflows from a Financial Perspective 23 Outflows from a Financial Perspective 25 Budget Execution 2010 Regular Fund Program-Budget 27 Status of Regular Fund Quota Contributions 29 Regular Fund Cash Balance: Liquidity Risk Assessment 31 GS/OAS Financial Investments 33 GS/OAS Improvements and Efficiencies 45 Status of Recommendations from the Board of External Auditors 2009 Report SECTION II 2010 OAS RESOURCES BY PROGRAM 51 All Programs 53 Program 1 - Office of the Secretary General (SG) 56 Program 2 - Office of the Assistant Secretary General (ASG) 59 Program 3 - Autonomous and/or Decentralized Entities 62 Program 4 - Secretariat for Legal Affairs (SLA) 65 Program 5 - Secretariat for Multidimensional Security (SMS) 68 Program 6 - Secretariat for Political Affairs (SPA) 71 Program 7 - Executive Secretariat for Integral Development (SEDI) 74 Program 8 - Secretariat for External Relations (SER) 77 Program 9 - Secretariat for Administration and Finance (SAF) 80 Other Activities SECTION III FINANCIAL STATEMENTS AND REPORTS 85 Combining Financial Statements 88 Regular Fund Budget Execution Status Report 90 Quota Payments 92 Compliance Report 95 Regular Fund Cash Flow: Liquidity Risk Assessment 97 Specific Funds: Statement of Changes in Fund Balance 127 Contributions to OAS Funds by Donor 130 Resolution CP/RES. 831 (1342/02) 134 Service and Revolving Funds 136 Indirect Cost Recovery (ICR) 138 Activities of the Offices of the General Secretariat in the member states.

3 A - QUARTERLY REPORTS COMPLIANCE IN ACCORDANCE TO AG/RES.1 (XL-E/10) B - MANAGEMENT DISCUSSION AND ANALYSIS

4 This section is presented in compliance with the quarterly reports requested to 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. The following reports 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 by the Board of External Auditors and their status. This 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. 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 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

5 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 million during the first nine months of 2010 excluding inter-fund transactions amounting to USD 12.6 million and including Trust Funds. Overall income has decreased primarily due to a significant decline in Specific Funds contributions, which reflects the lowest contribution level in the past four years. The amount of contributions received as of September 30 (USD 39.9 million) represents a 20% decrease compared to the same period last year. Based on previous years and current trend, the GS/OAS estimates receiving approximately an additional USD 27 million through year-end, for a total of USD 64.1 million to Specific Funds. The projected year-end total contribution is lower than the previous two years, although it includes the final contribution to the OAS/ CIDA Cooperation Plan and a contribution to the Spanish Fund. From an outflows perspective for all funds, the GS/OAS committed USD million through September 30, 2010, a slight increase from the same period last year (USD million). Outflows in the Regular Fund amounted to USD 88.6 million or 50% of the total; Specific Funds USD 53.5 million or 31%, and Service Funds USD 19.2 million or 11%. These funds combined account for 92% of the total GS/OAS outflows. Execution in the Regular Fund represents 98.4% of the appropriated amount of USD 90.1 million. The remaining USD 1.4 million will be available for programming through the end of the year. The Regular Fund received USD 66.4 million in quota payments, equivalent to 83.6% of total quota receivable. This is comparable to the 83% of total quota receivable during the same period in During 2010, member states earned credits in favor of their next year s quota payment in the amount of USD thousand; this represents a 17.3% credit increase as compared to those earned in 2009 of USD thousand. Member states have also confirmed their continued support to FEMCIDI through a gradual increase in pledges equivalent to USD 1.0 million, and representing a 45% increase as compared to the USD 0.7 million received in The increase has been mainly driven by pledges provided by Brazil and Colombia. FEMCIDI 2009 programmatic cycle was approved on April 19, Implementation of activities for these projects began on May 1, 2010 and run through June 30, Last year, the programmatic cycle ran from April 1 through September 30 (a 12-month period rather than the current 14-month) and amounted to USD 1.8 million. At the beginning of 2010, the ICR account had a cash balance of USD 2.5 million. As of September 30, 2010, the ICR fund received USD 4.7 and recorded expenditures totaling USD 5.9 million for a USD 1.1 million operating deficit. Total obligations for 2010 in the amount of USD 6.9 million were recorded by program areas to cover contracts, mostly through the end of the year. As of September 30, 2010, the ICR account had an available balance of USD 0.3 million. USD 1 million was transferred to the Regular Fund as part of the budgeted USD 2.5 million for As a service organization, the GS/OAS invests a significant amount of its income on salaries and contracts (Figure 3); Personnel (Object 1) represents 42.4% of total outflows, Performance contracts (Object 8) represents 17.8%, and Other expenses (Object 9) represents 10.0% 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 During the first nine months of the year, cash levels of the Regular Fund have experienced pronounced fluctuations; there have been cash balances as low as USD 2.6 million and as high as USD 25.0 million. 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 September 30, 2010, the Tax Equalization account had an approximate deficit of USD 2.2 million. This deficit is 5

6 1. Executive summary / discussion and analysis of the report at the management level that summarizes the financial situation of the General Secretariat (continued). temporarily being covered by the Regular Fund. Haiti Emergency Scholarship Program As approved by the Committee of the Capital Fund for OAS Scholarships and Training Programs financed through the CP Resolution 831, a new project was created to administer the Haiti Emergency Scholarship Program which has an appropriation of USD 500,000. The program s objective is the training of Haitian citizens whose studies were interrupted by the devastating earthquake. Programs are to be offered in professional, vocational and teacher development, as well as in academic studies at both undergraduate and postgraduate levels. Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) 6

7 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) 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 September 30, 2010 (in thousands of USD) Regular Fund Voluntary Funds (FEMCIDI) Specific Funds Service and Revolving Funds Indirect Cost Recovery (ICR) Other Accounts Program 1 Office of the Secretary General BUDGET EXECUTION VARIANCE 4,495 4, ,181 1, ,696 5, Program 2 Office of the Assistant Secretary General BUDGET EXECUTION VARIANCE 17,778 16,744 1,033 2,129 1, ,393 18,216 2,177 Program 3 Autonomous and/or Decentralized Entities BUDGET EXECUTION VARIANCE 11,606 11, ,715 5,063 2, (256) 3,598 2,547 1,051 24,120 20,186 3,934 Program 4 Secretariat for Legal Affairs BUDGET EXECUTION VARIANCE 2,782 2,869 (87) 4,321 3,026 1, ,173 5,966 1,206 Program 5 Secretariat for Multidimensional Security BUDGET EXECUTION VARIANCE 4,236 4, ,869 14,284 16, ,054 19,208 16,846 Program 6 Secretariat for Political Affairs BUDGET EXECUTION VARIANCE 4,375 4,381 (6) 23,092 19,302 3,790 1,315 1, ,782 24,813 3,969 Program 7 Secretariat for Integral Development BUDGET 15,331 5,067 (a) 32, ,185 68,278 EXECUTION 13,796 1,596 (a) 11, ,359 VARIANCE 1,535 3,471 21, ,904 40,919 Program 8 Secretariat for External Relations BUDGET EXECUTION VARIANCE 5,102 5, ,832 1, ,105 6, Program 9 Secretariat for Administration and Finance BUDGET EXECUTION VARIANCE 11,261 11,263 (2) 1, ,655 3, ,127 15, Program 10 Basic Infrastructure, Common costs and Others BUDGET EXECUTION VARIANCE TOTAL BUDGET EXECUTION VARIANCE 13,160 14,570 (1,410) 90,125 88,696 1,429 5,067 1,596 3,471 26,147 1,557 24, ,478 58,605 72,873 (404) 347 (752) 7,639 6, ,605 13, ,145 14, ,411 8,087 26,324 52,194 10,915 41,279 86,919 37,771 49, , , ,063 Other Funds TOTAL (a) Budget corresponds to 2010 Cycle (May 1, 2010 through June 30, 2011) and execution through September 30,

8 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 July September 2010 TRANSFER FROM TRANSFER TO PROGRAM No. FUND GRADE PROGRAM P05 Program 5 Secretariat for Multidimensional Security (SMS) Program 1. Office of the Secretary General (SG) D01 Program 2 Office of the Assistant Secretary General (ASG) P05 Program 7 Executive Secretariat for Integral Development (SEDI) P05 Program 2 Office of the Assistant Secretary General (ASG) Program 2. Office of the Assistant Secretary General (ASG) G05 Program 3 Autonomous and/or Decentralized Entities P05 Program 7 Executive Secretariat for Integral Development (SEDI) G04 Program 8 Secretariat for External Relati ons (SER) P04 Program 4 Secretariat for Legal Affairs (SLA) Program 3. Autonomous and/or Decentralized Entities G06 Program 9 Secretariat for Administrati on and Finance (SAF) G05 Program 2 Office of the Assistant Secretary General (ASG) Program 5 Secretariat for Multidimensional Security (SMS) Program 6 Secretariat for Political Affairs (SPA) G05 Program 7 Executive Secretariat for Integral Development (SEDI) P05 Program 6 Secretariat for Political Affairs (SPA) P05 Program 8 Secretariat for External Relations (SER) P05 Program 6 Secretariat for Political Aff airs (SPA) G06 Program 8 Secretariat for External Relations (SER) Program 7 Executive Secretariat for Integral Development (SEDI) D02 Program 8 Secretariat for External Relations (SER) P01 Program 9 Secretariat for Administration and Finance (SAF) Program 8 Secretariat for External Relations (SER) D02 Program 5 Secretariat for Multidimensional Security (SMS) G05 Program 7 Executive Secretariat for Integral Development (SEDI) P01 Program 8 Secretariat for External Relations (SER) Program 9 Secretariat for Administration and Finance (SAF) P05 Program 8 Secretariat for External Relations (SER) P01 Program 6 Secretariat for Political Affairs (SPA) Total of Transfers = G05 Program 6 Secretariat for Political Affairs (SPA) Note: There were no reclassifications of staff members during

9 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 July September 2010 PROGRAM OBSERVATION No. FUND GRADE Program 1. Office of the Secretary General (SG) Expiration of Contract P P03 Separation by Agreement P05 Resignation P01 Retirement G05 Total Program 1 = 5 Program 2. Office of the Assistant Secretary General (ASG) Expiration of Contract P04 Separation by Agreement P05 Resignation G05 Total Program 2 = 4 Program 3. Autonomous and/or Decentralized Entities Separation by Agreement G02 Termination 111 G D01 Retirement 1 Total Program 3 = 4 Program 4. Secretariat for Legal Affairs (SLA) Separation by Agreement P04 Expiration of Contract P04 Total Program 4 = 2 Program 5. The Secretariat for Multidimensional Security (SMS) Resignation D02 Total Program 5 = 1 Program 6. Secretariat for Political Affairs (SPA) Expiration of Contract P01 Separation by Agreement G06 Resignation P P P01 Termination P04 Total Program 6 = 8 Program 7. Executive Secretariat for Integral Development (SEDI) Separation by Agreement G05 Resignation G05 Total Program 7 = 2 Program 8. Secretariat for External Relations (SER) Separation by Agreement P03 Retirement P02 Total Program 8 = 2 Program 9. Secretariat for Administration and Finance (SAF) Expiration of Contract P01 Resignation P P P G G05 Total Program 9 = 6 Total of Separation from Services = 34 9

10 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) c. Geographic Representation The GS/OAS has developed a standard process to incorporate consideration of geographic representation in contracting staff. The UN Food and Agriculture Organization s (FAO) methodology was approved by the CAAP on March 25, 2009 for determining adequate geographic representation at the OAS. Based on the FAO methodology, as of September 30, 2010, both the CARICOM and Central America regions were within the proper ranges. Table 3 As of September 30, 2010, staff distribution at the GS/OAS Total Points: Membership (40%) POPULATION (5%) Quota (55%) Range Membership Points (40%) Contribution Points (55%) Population Points (5%) 67.1 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 , % Within Range 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 10

11 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 September 30, 2010, 55% of staff was female and 45% male. Figure 1 Gender distribution at the GS/OAS as of September 30, 2010 Male % Figure 2 Gender distribution by level at the GS/OAS, as of September 30, Female % SG ASG D02 D01 P05 P04 P03 P02 P01 Associates G07 G06 G05 G04 G03 G02 G01 Female Male 11

12 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: The Office of Procurement Services (OPS) monitors and provides summary information related to travel and compliance with the rule established by the Permanent Council which 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. Omega - Economy 71% Travel Data Authorized Non Economy 5% Non Economy - No Authorization* 0% Non Omega - Economy 24% Please note that travel purchased outside Omega World Travel is closely monitored by OPS to ensuring that reservations are made following the corresponding rules and regulations. OPS reported only one case of non compliance during this quarter. The reported trip included one segment of travel in non economy due to unavailability of space during the specific requested dates. 12

13 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, 2010 to September 30, 2010 (in USD) 2010 Increases Rental Income 95,573 Interest income 2,197 Other income - Total Increases 97,770 Decreases Expenditures & Obligations Personnel Contracts 9,736 Equipment, Supplies and Maintenance 350 Building and Maintenance 181,909 Performance Contracts 2,400 Other Expenses 2,423 Total Decreases 196,818 (A) Net change during period (99,047) Cash balance at beginning of period 228,510 Fund balance 129,463 (A) Includes obligations in the amount of USD 11,890 13

14 CONTRIBUTIONS TO OAS' FUNDS BY DONOR From January 1, 2010 to September 30, 2010 (in USD) Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) 6. Information on external contribution to support the activities of the organization, as well as contributions to building maintenance and improvements. As of September 30, 2010, no contributions were received for building maintenance and improvements. Regular Fund 2010 Prior years FEMCIDI Specific Funds Trust for the Americas TOTAL Member States: Antigua and Barbuda 17,382 6,988 24,370 Argentina 2,540,531 40, ,000 2,813,761 Bahamas, Commonwealth of 60,938 18,600 79,538 Barbados 47,452 18,000 65,452 Belize 17,382 17,382 Bolivia 36,363 36,363 Brazil 6,292, , ,066 7,486,076 Canada 10,887,592 7,327,227 18,214,819 Chile 848, , ,942 Colombia 663, , , ,286 Costa Rica 147,950 30, ,950 Dominica, Commonwealth of 17,382 5,100 14,389 36,871 Dominican Republic 162,759 35, ,759 Ecuador 163,734 16, ,414 El Salvador 83,116 32,100 14, ,616 Grenada 44,800 44,800 Guatemala 147, ,950 Guyana 17,382 5, ,467 Haiti Honduras 28,555 28,555 Jamaica 50,000 48,700 98,700 Mexico 6,441, ,951 6,585,039 Nicaragua 35,564 57,436 18,000 5, ,000 Panama 128,970 39,600 80, ,570 Paraguay 98,073 20, ,073 Peru 437, ,429 1,085,987 St. Kitts and Nevis 17,382 17,382 St. Lucia 17,382 20,981 38,363 St. Vincent and the Grenadines 17,382 5,083 22,465 Suriname 35,564 1,000 36,564 Trinidad and Tobago 120,278 50, ,043 United States 35,289,122 16,999,579 1,271,902 53,560,603 Uruguay 143,255 50,000 17, ,655 Venezuela 657, ,741 26,000 1,225,541 Total Members 65,670, ,677 1,029,473 26,510,309 1,271,902 95,175,356 (a) (b) (Continues on next page) 14

15 Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) CONTRIBUTIONS TO OAS' FUNDS BY DONOR From January 1, 2010 to September 30, 2010 (in USD) Regular Fund 2010 Prior years FEMCIDI Specific Funds Trust for the Americas TOTAL Permanent Observers: Azerbaijan 20,000 Belgium 123,891 China 200,000 European Union 624,632 France 26,910 Germany 575,612 Ireland 122,075 Italy 112,373 Korea 260,000 Luxemburg 64,989 Netherlands 1,292,640 Norway 283,692 Qatar 20,000 Spain 1,559,218 Sweden 695,500 Switzerland 77,013 Turkey 80,000 United Kingdom 420,147 Total Permanent Observers 6,558,692 20, , , ,632 26, , , , ,000 64,989 1,292, ,692 20,000 1,559, ,500 77,013 80, ,147 6,558,692 Institutions and Others: Andean Development Corporation 111, ,094 AES Andres 48,891 48,891 CARICOM 167, ,117 CONAE 573, ,943 Inter American Development Bank 93, , ,935 Intl. Bank for Reconstruction & Development 518, ,444 Intl. Organization for Migration 630, ,000 Mission Fight Against Drugs & Drug Addiction 51,808 51,808 NED 47,772 47,772 Panamerican Development Foundation 71,124 71,124 REEEP 36,969 36,969 San Martin de Porres University 100, ,000 Swedish NGO for Human Rights 109, ,966 United Nations 430, ,006 World Trade Organization 59,920 59,920 Multiple Funding Sources 1,028, ,979 1,517,371 Total Institutions and Others 3,982, ,078 4,874,359 Total 65,670, ,677 1,029,473 37,051,283 2,163, ,608,408 (a) Effective as of 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 116 thousand contributed through "Penalty Mail" 15

16 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) The GS/OAS has redefined the terms of reference of the GS/OAS contract with our external auditors, Ernst & Young, to redirect audit funds and efforts from outdated agreed-upon procedures review to IPSAS-related advice. This was begun in the 2009 audit cycle. An initial meeting took place with IPSAS experts from Ernst & Young. SAF/DFAMS has given a presentation to the CAAP on IPSAS and no substantive objections surfaced. As we approach critical milestones in the process, SAF will consult with the political bodies. In addition, to engage the external auditors and other experts in the transition to IPSAS, staff from across SAF and the OIG s office met with Ernst & Young in order to asses the Organization s needs to help it move forward, and how E&Y can better guide the GS/OAS in the implementation process. Further, E&Y intends to review and analyze all matters pertaining to the financial statements and the underlying processes that allow DFAMS to arrive at the figures that are published. During the second quarter of 2010, SAF offered an IPSAS training program through IBTCI, the firm that developed the UN training on IPSAS. The five courses covered were: a. Accrual Accounting Under IPSAS b. Accounting for Property, Plant and Equipment c. Accounting for Employee Benefits d. Advance Topics in Financial Reporting e. Prepare Accrual Based Financial Statements These courses were attended by 25 staff members per class from within and outside of SAF, including the OIG s office. In accordance with IPSAS and understanding that its adoption will be a gradual process, DFAMS has decided to adopt two initial changes to its financial statements. First, it will use cross-reference notes in the financial statements, which will enable general users to have additional information that expands and supports the financial statements. Second, moving forward, the sign $ will be substituted for USD, which clearly identifies the functional currency of the financial statements as US dollars. 16

17 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) TOTAL FOR ALL OAS MEETINGS Financial Loss for Cancelled Meetings and Half day Meetings at Headquarters that did not Share Interpretation Costs From January 1 September 30, 2010 TOTAL: All half day meetings not shared with other meetings Half day Meetings Interpretation hours Half day pay rate In USD CEPCIDI half day meetings ,700 CP/CEPCIDI joint half day meetings ,780 CP/WG half day meetings ,130 AG preparation half day meetings ,720 Other Areas half day meetings ,810 TOTAL All Meetings ,140 + Meeting Cancelled Late Loss GRAND TOTAL ,140 Financial Loss Percentage of Half Day Meetings that do not Share Interpretation Costs with Other Meetings 70.0% 60.0% 61% 50.0% 40.0% 30.0% 18% 20.0% 10.0% 7.8% 6% 7% 0.0% CEPCIDI USD 14,700 CP/CEPCIDI USD 10,700 CP Comm & WG Meetings USD 116,130 AG Meetings USD 13,720 Other Areas USD 33,810 17

18 8. Information on additional costs incurred further to nonobservance of meetings scheduled times (continued). Section I Administrative and Financial Management Reports in Accordance to AG/RES.1(XL-E/10) CEPCIDI half day meetings not shared with other meetings Half day Meetings Interpretation hours Half day pay rate In USD Loss AG Preparation half day meetings not shared with other meetings Half day Meetings Interpretation hours Half day pay rate In USD 2 Languages ,940 2 Languages ,920 3 Languages SEGREGATED BY POLITICAL BODY Financial Loss for Cancelled Meetings and Half day Meetings of the OAS not Shared with Other Meetings of the General Secretariat From January 1 September 30, Languages Loss Languages ,760 4 Languages ,800 TOTAL CEPCIDI ,700 TOTAL Areas ,720 CP/CEPCIDI joint half day meetings not shared with other meetings Half day Meetings Interpretation hours Half day pay rate In USD Loss Areas of the GS/OAS half day meetings not shared with other meetings Half day Meetings Interpretation hours Half day pay rate Loss In USD 2 Languages ,780 2 Languages ,480 3 Languages 4 Languages 3 Languages , Languages ,920 TOTAL CP/CEPCIDI ,780 TOTAL Areas ,810 CP/Working Groups half day meetings not shared with other meetings Half day Meetings Interpretation hours Half day pay rate Loss In USD 2 Languages ,770 3 Languages 4 Languages ,360 TOTAL CP ,130 18

19 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 not currently available, to be presented in next OAS Quarterly Resource Management Report. 19

20 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 of 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 third 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, Table 1 GS/OAS Resources (in millions of USD) From January 1, 2010 to September 30, 2010 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 2010 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 third 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. FINANCIAL PERSPECTIVE Regular Fund Voluntary Funds (FEMCIDI) Specific Funds Service and Revolving Funds Other Funds (B) TOTAL 2010 BEGINNING BALANCE INFLOWS OUTFLOWS ENDING BALANCE (88.6) (3.0) (53.5) (19.2) (10.9) (175.2) (12.8) (3.4) BUDGETARY PERSPECTIVE Regular Fund Voluntary Funds (FEMCIDI) Specific Funds Service and Revolving Funds Other Funds TOTAL 2010 BUDGET EXECUTION VARIANCE (A) (A) Corresponds to 2010 Cycle (May 1, 2010 thru June 30, 2011) (B) Includes Medical Benefits Fund, Rowe Fund and Trust for the Americas. 20

21 Figure 1 Trend and Composition of Inflows by Fund (in millions of USD) From January 1 to September 30 TREND Regular Fund Other Funds* Specific Funds Service and Revolving Funds FEMCIDI 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 September 30 for various years for funds managed by the GS/OAS, and including Trust funds for which the GS/OAS has a fiduciary responsibility. The administration of each fund is regulated by its own mandates, statutes or regulations. The GS/OAS Funds received approximately USD million (excludes inter-fund transactions of USD 12.6 million) during the first nine months of The overall income through September 2010 has decreased compared to last year, primarily due to a significant decrease in Specific Funds inflows. Timing of the inflows to the Regular Fund has maintained the same pace as previous years. Member states have also confirmed their support to FEMCIDI through a gradual increase in pledges in the last year. For the first nine months of the year, timing for the inflows for FEM- CIDI have increased by 30%, from USD 1.0 million in 2009 to USD 1.3 million in In addition, the tax equalization account has affected the overall inflows to Service Funds which have increased by 37% when compared to the same period in 2009 due to a tax reimbursement for prior years received from the United States. COMPOSITION COMPOSITION Service and Revolving Funds % Total % Other Funds* % Specific Funds % FEMCIDI 1.3 1% Regular Fund % On the other hand, the chart provides mixed trends across individual funds. Inflows received for Specific Funds reflects the lowest amount received during the past 4 years, the USD 39.9 million received as of September. This represents a 20% decrease compared to September Given the current trend and based on previous years, projections indicate that approximately USD 27 million could be received through year-end for a total of USD 66.9 million. This projection is still below the previous amounts received in the last two years, including the final contribution to the OAS/ CIDA Cooperation Plan and a lower contribution to the Spanish Fund to be received. Inflows attributed to Other Funds have decreased from USD 17.1 million in 2009 to USD 13.7 million in 2010, mostly due to a decrease in portfolio market values of the Medical Benefits Fund and Rowe Pan-American Fund. * Includes Medical Benefits Fund, Rowe Pan American Fund and Trust for the Americas 21

22 Contributions by Source of Financing During the first three quarters of 2010 (see Table 2), the United States was the major contributor to the GS/OAS (USD 53.6 million), followed by Canada (USD 18.2 million), Brazil (USD 7.5 million) and Mexico (USD 6.6 million). Section I Inflows from a Financial Perspective Regular Fund and 40% represents contributions to Specific Funds. Brazil and Mexico s contributions of USD 7.5 and USD 6.6 million respectively are mostly quota payments to the Regular Fund. Among Permanent Observers, Spain is at the top of contributors with USD 1.6 million in contributions to Specific Funds mainly to support sustainable democracy initiatives. From the USD 53.6 million contributed by the United States to all funds, USD 35.3 million corresponds to the Regular Fund. In addition, from the USD 18.2 million contributed by Canada 60% constitutes quota payments to the Table 2 Contributions by Source of Financing - Top Donors (in millions of USD) From January 1, 2010 to September 30, 2010 Contributor Regular Fund Voluntary Funds (FEMCIDI) Specific Funds Trust for the Americas TOTAL United States Canada Brazil Mexico Argentina * Spain Netherlands Venezuela * 1.2 Peru Colombia Chile Sweden Intl. Organization for Migration European Union Other Member States Multiple Funding Sources & Others TOTAL * Although Voluntary Funds show zero due to rounding in millions, this corresponds to contributions of USD 40,230 from Argentina and USD 26,000 from Venezuela. 22

23 Outflows by fund Outflows in 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. Overall outflows in GS/OAS funds totaled USD million through September 30, 2010; the total outflows has slightly increased when compared to the same period last year, which totaled USD million. Figure 2 shows that Regular Fund outflows represent USD 88.6 million or 50% of the total; Specific Funds USD 53.5 million or 31%, and the Service Funds USD 19.2 million or 11%. These three funds combined account for 92% of the total GS/ OAS outflows. Outflows by category As a service organization, the GS/OAS invests a significant amount of its income on salaries and contracts (see Figure 3); Personnel (Object 1) represents 42.4% of total outflows, Performance contracts (Object 8) represents 17.8%, Other expenses (Object 9) represents 10.0% 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 (in millions of USD) From January 1, 2010 to September 30, 2010 Service and Revolving Funds % Other Funds % Specific Funds % Voluntary Funds (FEMCIDI) 3.0 2% Total: USD Regular Fund % Figure 3 Outflows by category (in millions of USD) From January 1, 2010 to September 30, Personnel Temporary Posts Fellowships Travel Documents Equipment, Supplies and Maintenance Building and Maintenance Performance Contracts 2010 USD USD USD Other expenses Other outflows 23

24 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 In Latin America, a great majority of disbursements are related to the Mission to Support the Peace Process in Colombia (MAPP), environmental and dialogue activities in Brazil, and demining and judicial facilitator 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 0.81 Costa Rica Saint Kitts and Nevis Guatemala 0.80 Panama 0.41 El Salvador Haiti Antigua and Barbuda 0.59 Suriname Nicaragua 1.45 Guyana Jamaica Dominica Colombia 2.80 Venezuela Santa Lucia Barbados Ecuador Saint Vicent and the Grenadines 0.16 Grenada Peru Trinidad and Tobago Bolivia Paraguay 0.40 Brazil 1.67 Argentina 1.00 Uruguay 0.86 Headquarters (DC) TOTAL DISBURSEMENT USD M 24

25 Approved Levels For 2010, through Resolution AG/RES. 1 (XXXVIII-E/09), the General Secretariat was authorized to execute up to USD 90.1 million for Regular Fund activities. Table 3 presents the 2010 original and modified appropriation and the corresponding sources of financing. Quota assessments represent 87% of the sources of financing for the 2010 appropriation. Table Appropriations and Financing (in thousands of USD) Original Modified Appropriations Personnel 58, ,071.0 Non personnel 32, , , ,125.0 Actual Projected Sep 30, 2010 Sources of Financing Quota Assessment 78, ,671.0 Administrative and Technical Support 3,282.6 Other Income 1,579.4 Reserve Sub fund 6,749.4 a b 1, , , , ,082.6 a) ICR Collection from Specific Funds (USD 2,500.0) and FEMCIDI (USD 782.6) b) Interest, rents, and refunds Transfers Between Programs As per Executive Order Rev. 3, changes in the organizational structure were approved as of October 1st, The Press Department is now under the Secretariat for External Relations and no longer under the Secretary General Office; The Secretariat of the Inter-American Committee on Ports (CIP) is under the Office of the Assistant Secretary General and no longer under Autonomous and/or Decentralized Entities; the Inter-American Children s institute is under Autonomous and/or Decentralized Entities and no longer under the Secretariat for Legal Affairs (see table 4). Table 4 Transfers Between Programs (in thousands of USD) Original Appropriation Modified Appropriation Transfers January to AG/RES. 1 as of September 30, September 2010 (XXXVIII E/09) 2010 % PROGRAMS (a) (b) (c) (b/a) Secretary General 5,221.8 (727.2) 4,494.6 Assistant Secretary General 17, , % Autonomous and/or Decentralized Entities 11, , % Secretariat for Legal Affairs 4,129.2 (1,347.7) 2,781.5 Secretariat for Multidimensional Security 4, , % Secretariat for Political Affairs 5,012.5 (637.9) 4,374.6 Executive Secretariat for Integral Development 15,374.5 (43.4) 15,331.1 Secretariat for External Relations 3, , , % Secretariat for Administration and Finance 11,432.2 (171.3) 11,260.9 Basic Infrastructure and Common Costs 12, , Grand Total 90, ,125.0 Regular Budgetary Execution by Program As of September 30, 2010, the 2010 Regular Fund Appropriation of USD 90.1 million has been executed to the amount of USD 88.7 million, or 98.4% of the appropriation. Execution includes expenditures, payroll encumbrances, and outstanding commitments through year-end. All of the ten programs have already executed over 90% of their corresponding appropriations (see Figure 5 next page). The lowest percentage of execution comes from the Executive Secretariat for Integral Development 90.0%, which includes the Department of Human Development, Education, and Culture execution of 85.9% (USD 7,414.2 out of USD 8,630.7). Table 5 shows the Regular Fund Budget versus Execution. Budget corresponds 13.9% 32.6% 12.7% 0.3% 1.5% 25

26 Section I Regular Fund Program-Budget Execution 2010 to the modified appropriation (per Table 4); Execution includes expenditures and obligations; the balance is the remaining unliquidated appropriations as of September 30, As of September 30, 2010, only USD 1.4 million remained available for programming. Table 5 Budget vs Execution (in thousands of USD) As of September 30, 2010 Budget Execution Variance PROGRAMS (a) (b) (c) = (a) (b) Secretary General 4, , Assistant Secretary General 17, , ,033.5 Autonomous and/or Decentralized Entities 11, , Secretariat for Legal Affairs 2, ,868.6 (87.1) * Secretariat for Multidimensional Security 4, , Secretariat for Political Affairs 4, ,381.1 (6.5) * Executive Secretariat for Integral Development 15, , ,535.0 Secretariat for External Relations 5, , Secretariat for Administration and Finance 11, ,262.8 (1.9) * Basic Infrastructure and Common Costs 13, ,569.7 (1,409.8) * Grand Total 90, , ,428.7 * Correspond to budgetary and execution personnel variances and reinforcements Figure 5 Budgetary Execution by Program (in millions of USD) As of September 30, PRG 1 PRG 2 PRG 3 PRG 4 PRG 5 PRG 6 PRG 7 PRG 8 PRG 9 PRG10 Modified Appropriation Expenditures Obligations 26

27 Quota Contributions At the beginning of 2010, the GS/OAS had USD 79.4 million in quota receivable: USD 78.5 million from current year quota assessments and USD 0.9 million from quotas in arrears. As of September 30, 2010, the GS/OAS has received USD 66.4 million in quota payments (83.6% of total quota receivable): USD 65.7 million for 2010 assessments and USD 0.7 million from quotas in arrears received from Grenada, Jamaica, Nicaragua and Venezuela. Member states are required by the General Standards to pay their quota assessments in full by January 1st of the calendar year, or otherwise submit a payment plan for the year. As of September 30, 2010, from the outstanding USD 13.1 million quota receivable, USD 12.0 million are backed by current payment plans accepted by the GS/OAS from Jamaica, Nicaragua and United States, most of which is expected to be collected during There is no certainty as to when the difference of USD 1.1 million will be received. Under existing regulations, member states with outstanding arrears not backed by a payment plan are considered not current. Member states that pay their annual quota assessment by April 30 of that period are entitled to the following discounts: 3% of the amount paid by January 31, and 2% of the amount paid between February 1st and April 30. In 2009, USD 460,732 in discounts were credited to member states for prompt payment, to be applied to their 2010 quota assessment. In 2010, Figure 6 Quota Receivable vs Quota Payments (in millions of USD) As of September 30 USD USD QR Quota Receivable QP Quota Payments Current Arrears USD USD USD 40.0 USD USD QR QP QR QP QR QP QR QP QR QP QR QP QR QP QR QP

28 Section I Status of Regular Fund Quota Contributions member states accumulated USD 540,351 in prompt payment credits, to be applied to their 2011 quota assessment. Detailed information of prompt payment credits for 2010 can be found in the Quota Payment Report in Section III. Arrears Arrears refer to prior years balances on quota assessments. As of January 1, 2010, quotas in arrears amounted to USD 0.9 million, mainly from Nicaragua (USD 0.3 million) and Venezuela (USD 0.5 million). Through September 30, 2010, USD 0.7 million were received in payments towards quotas in arrears, leaving an outstanding balance of USD 0.2 million. As illustrated in Figure 7, quotas in arrears are at the lowest level in the last eight years. Figure 7 Quotas in Arrears (in millions of USD) As of September 30 USD Quota Compliance As of September , there were twenty eight member states current with their Quota contribution to the Regular Fund, one member state considered current, and five member states considered not current. This is in accordance with AG/RES (XXX-O/00), and as amended by AG/ RES.2157 (XXXV-O/05). See report on compliance below. At the time this report was published, Jamaica is not in compliance with its approved payment plan, thus it became not current. Table 6 Summary on Compliance with Quota Contributions according to AG/RES (XXX-O/00), as amended by AG/RES (XXXV-O/05) As of September 30, 2010 Current Antigua and Barbuda Argentina Bahamas Barbados Belize Bolivia Brazil Canada Chile Colombia Costa Rica Dominica, Comm. Of Ecuador El Salvador Considered Current Nicaragua Guatemala Guyana Jamaica Mexico Panama Paraguay Peru St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname Trinidad and Tobago Uruguay United States Not Current Dominican Republic Grenada Haiti Honduras * Venezuela YEAR * Note that effective July 5, 2009 as per AG/RES. 2 (XXXVII E/09), Honduras has been suspended from the exercise of its right to participate in the Organization of American States in accordance with Article 21 of the Inter American Democratic Charter. 28