Program Budget
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1 Special Advisory Commission on Management Issues (SACMI) Program Budget IICA/CCEAG/DT-02 (19) San Jose, Costa Rica 8 May 2019
2
3 Draft Program Budget Inter-American Institute for Cooperation on Agriculture April 2019
4 CONTENTS I. MAIN CRITERIA THAT UNDERPIN THE PROGRAM BUDGET... 2 II. BUDGET FOR THE BIENNIUM... 3 III. ANNEXES... 5
5 I. MAIN CRITERIA THAT UNDERPIN THE PROGRAM BUDGET This working document contains the draft Program Budget of the Inter-American Institute for Cooperation on Agriculture (IICA) for the biennium, which is based on the II. Medium-term Plan (MTP). The draft is based on the following main criteria: 1. The sources of financing for the Regular Fund (quotas and miscellaneous income) for the biennium are submitted for approval, together with the proposed expenditure budget for that period. 2. Member State quotas defined on the basis of the scale approved by the Organization of American States (OAS) for 2019, as well as over-quotas (see Annex 1 for the existing scale of quotas). 3. It is projected that miscellaneous income will amount to USD 2,500,000, which represents a reduction of USD 1,000,000 (28.57%) compared to the amount approved for 2019 (USD 3,500,000). The generation of miscellaneous income has exhibited a downward trend due primarily to the following reasons: o o Impossibility of utilizing the refunds on taxes paid during the implementation of externally funded projects. Restrictions imposed by some countries on using the interest generated by external funds administered by the Institute, by stipulating that any yields obtained should be reimbursed to the projects themselves or to government treasuries. 4. The overall budget is aligned with the institutional strategic plan and focuses on projects that contribute more effectively to addressing the agricultural needs of Member States. 5. Based on the Institute s strategic objectives, the Program will foster the changes needed to enhance IICA s technical cooperation, and to contribute to each of the member countries. 6. With this Program Budget, the Member States are assured of the Institute s willingness and capacity to assist in addressing their agricultural needs and to achieve sustainability, competitiveness, rural wellbeing and food security. 2
6 II. BUDGET FOR THE BIENNIUM T he Institute finances its technical cooperation activities and operations, as mandated by its Governing Bodies, with resources from the Regular Fund, which is made up of Member State quotas and miscellaneous income. The Institute is expanding its cooperation activities by implementing externally funded projects within the framework of legal instruments signed with partners and counterparts. Income Budget of the Regular Fund On the basis of currently available information, the Income Budget of resources from the Regular Fund for the biennium is USD 32,074,100, made up of USD 29,574,100 from Member State quotas, including some over-quotas, and USD 2,500,000 from miscellaneous resources, which represents a 28.57% reduction compared to the amount for Table A provides a breakdown of the Income Budget of resources from the Regular Fund. TABLE A Income Budget 2019, 2020 and 2021 Program Budgets (thousands of USD) SOURCE Member State Quotas 29, , ,574.1 Miscellaneous Income 3, , ,500.0 TOTAL REGULAR FUND 33, , ,074.1 Note: Annex 1 presents the scale of quotas and over quota contributions for Regular Fund Expenditure Budget by budgetary chapter Resources in the Regular Fund Expenditure Budget are broken down into four chapters: i) Direct Technical Cooperation services, ii) Management Costs, iii) General Costs and Provisions and iv) Renewal of Infrastructure and Equipment. This budget totals USD 32,074,100, and is financed with Member State quotas and other miscellaneous income. Table B shows the amount allocated to each chapter. Similarly, the Expenditure Budget covers basic structural costs for offices in member countries, together with other services and technical support actions, such as cooperative programs, integration projects and technical support services, including contributions to The Tropical Agricultural Research and Higher Education Centre (CATIE) and the Caribbean Agricultural Research and Development Institute (CARDI), as well as the management units and corporate activities. 3
7 TABLE B Allocation of the Regular Fund by Chapter (USD) CHAPTER QUOTAS MISC. TOTAL % QUOTAS MISC. TOTAL % CHAPTER I: Direct technical cooperation services 26,438,911 2,430,000 28,868, % 26,442,245 2,417,175 28,859, % CHAPTER II: Management costs 1,824, ,824, % 1,839, ,839, % CHAPTER III: General cost and provisions 1,166,000 20,000 1,186, % 1,166,000 20,000 1,186, % CHAPTER IV: Renewal of infrastructure and equipment 144,605 50, , % 126,605 62, , % TOTAL 29,574,100 2,500,000 32,074, % 29,574,100 2,500,000 32,074, % Notes: The Institute s budget is divided into four chapters: I: Direct technical cooperation services This chapter includes the costs of the Institute s technical cooperation actions at the national, multinational, regional, and hemispheric levels required to achieve the objectives established in the MTP. It includes IICA s contribution to the Tropical Agriculture Research and Higher Education Center (CATIE) and the Caribbean Agricultural Research and Development Institute (CARDI), as well as the financing of the hemispheric programs, rapid response actions, initiatives of the Pre-Investment Fund, the IICA delegations in the Member States, and the technical support units. II: Management costs Management costs include the resources of the units responsible for managing the Institute and providing support services. Those units, which are located at Headquarters, are the Office of the Director General, the Office of the Deputy Director General and the Directorate of Corporate Services. III: General costs and provisions General costs and provisions are general commitments not directly related to the preceding chapters, or to a specific unit. They include funding for the governing bodies; institutional insurance; contribution to the administration of the OAS Administrative Tribunal and the OAS Retirement and Pension Fund; External Audit; pensions of former Directors General; and the Emergency Assistance Fund for Institute Personnel. IV: Renewal of infrastructure and equipment This chapter includes resources for the conservation and maintenance of IICA-owned buildings and properties, and the renewal of vehicles, SAP, equipment, and software licenses, both at Headquarters and in the 35 IICA delegations. The implementation of the Program Budget will be closely aligned with the strategic management model and the thematic orientation established in the MTP, thereby enhancing its response capacity, flexibility and contributions to member countries. In the context of the Regular Fund budget approved by Member States, emphasis will be placed on addressing IICA s technical cooperation priorities, based-on a results-based approach, on the strengthening of strategic partnerships, and on the criteria of quality, effectiveness, rationality, equity, transparency and accountability, as part of a policy of continuous improvement to benefit agriculture in the Americas. The 2020 Expenditure Budget will be presented in detail by Programming Center and by Major Object of Expenditure for consideration at the next Executive Committee, once it has been adjusted based on the recommendations issued by the Special Advisory Commission on Management Issues (SACMI). 4
8 III. ANNEXES Annex 1 Scale of quotas for Member States, over quota contributions and miscellaneous income for 2020 (USD) 5
9 ANNEX 1 Quota Scales of Member States, Over-Quota Contributions MEMBER STATES OAS 1 ASSESSED QUOTA OVER-QUOTA TOTAL QUOTAS % USD 2 USD 2 USD 2 Antigua and Barbuda ,500 1,100 7,600 Argentina , ,000 1,126,500 Bahamas ,800 7,000 20,800 Barbados ,600 5,500 13,100 Belize ,500 1,100 7,600 Bolivia , ,100 Brazil ,652, ,652,000 Canada ,873, ,873,400 Chile ,800 14, ,400 Colombia , ,200 Costa Rica ,100 2,500 77,600 Dominica ,500 1,100 7,600 Dominican Republic ,600 3,500 82,100 Ecuador ,900 3, ,400 El Salvador ,300 12,500 34,800 Grenada ,500 1,100 7,600 Guatemala ,100 13,800 63,900 Guyana ,500 1,700 8,200 Haiti ,500 4,200 10,700 Honduras ,600 3,200 15,800 Jamaica ,500 5,100 20,600 Mexico ,896, ,896,800 Nicaragua ,500 2,800 9,300 Panama ,000 6,000 62,000 Paraguay ,500 8,800 34,300 Peru ,600 9, ,000 Saint Lucia ,500 1,100 7,600 Saint Kitts and Nevis ,500 1,100 7,600 Saint Vincent and the Grenadines ,500 1,100 7,600 Suriname ,500 4,200 10,700 Trinidad and Tobago ,800 15,000 52,800 United States of America ,435, ,435,300 Uruguay ,400 7,900 95,300 Venezuela , ,800 SUB TOTAL ,187, ,500 29,574,100 Cuba , ,800 TOTAL QUOTAS ,318, ,500 29,704,900 MISCELLANEOUS INCOME 2,500,000 2,500,000 TOTAL REGULAR FUND 3 31,687,600 32,074,100 Note: The Kingdom of Spain contributes an annual quota of USD60,000 as an Associate Member, pursuant to the agreement adopted at the First Plenary Session of the Eleventh Regular Meeting of the Inter-American Board of Agriculture, held on November 26, 2001, in Bávaro, Dominican Republic. 1/ As per Resolution AG/RES. 1 (LIII-E/18) of the General Assembly of the OAS. 2/ In USD rounded out to the nearest hundred. 3/ The total of the Regular Fund does not include Cuba. and Miscellaneous Income for IICA
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