CTBTO Introductory Course Budget and Finance

Transcription

1 Page 1 CTBTO Introductory Course Budget and Finance John S. Sequeira Director, Division of Administration

2 Page 2 Programme and Budget Formulation Treaty, Mission Evolving Technical, Political circumstances Budget Implementation (history) Constraints (ZRG, austerity, etc.) Strategic Planning (5 Years) Budget Formulation (1 Year) Budget Implementation (1 Year) Monitoring and Performance assessment (MAPA) Lessons Learned Assessment and Evaluation MTP P&B PBPR

3 Page 3 Programme and Budget Formulation Preparatory Commission States Signatories PTS Working Group A A coordinated process Working Group B Advisory Group

4 Page 4 Programme and Budget Cycle Feb - Mar PC PTS Formulates 1 st Draft P&B AG reviews Initial P&B Apr - May Nov Approves Final P&B WGA/B reviews Initial P&B PTS Revises and issues Final P&B Jun PC reviews Initial P&B Aug - Sep AG,WGA/B review revised P&B PTS revises P&B Jun

5 Strategic Planning Framework Strategic Goal 1 Strategic Goal 2 Strategic Goal 3 Strategic Goal 4 Strategic Goal 5 Strategic Goal 6 Strategic Goal 7 BUILD UP THE IMS VERIFICATION SYSTEM INFRASTRUCTURE ENSURE TIMELY AVAILABILITY AND QUALITY OF RAW DATA ENSURE TIMELY PRODUCTION AND DISTRIBUTION OF HIGH QUALITY DATA PRODUCTS CONSOLIDATE OSI CAPABILITY AND READINESS ADVANCE THE TREATY TOWARDS UNIVERSALITY ENSURE EXCELLENCE IN MANAGEMENT ENHANCE OVERSIGHT AND TRANSPARENCY AND ENSURE CONTINUAL IMPROVEMENT Objective 1.1 Continue the build-up of the IMS network Objective 2.1 Ensure prompt detection and management of incidents Objective 3.1 Ensure the timeliness of automated and reviewed products Objective 4.1 Further develop the OSI regime through the implementation of the OSI strategic plan Objective 5.1 Assist in achieving Treaty objectives and building up the verification regime Objective 6.1 Continue to support improvements in the efficiency and effectiveness of programme delivery Objective 7.1 Provide reportable quality measures to enhance confidence in the functioning of the PTS and in its products and services Objective 2.2 Ensure effective operations - IMS facilities Objective 2.3 Ensure cost efficient operations IMS facilities Objective 3.2 Ensure the quality of automated and reviewed products through continual improvement of data processing and analysis Objective 3.3 Ensure the reliability and timeliness of the data distribution system Objective 4.2 Validate, test and improve OSI capabilities and readiness Objective 5.2 Provide legal advice and services Objective 5.3 Disseminate timely information products Objective 6.2 Enhance transparency in reporting to PMOs Objective 6.3 Continue to improve the provision of services to PMO meetings Objective 7.2 Strengthen the PTS oversight function Objective 2.4 Ensure effective and efficient operations GCI Objective 2.5 Ensure effective and efficient operations - IDC data processing infrastructure Page 5

6 Programme Structure and RBM Focus 7 7 SG MP EIF Readiness CTBT/PTS/ Outcome KPI 41 PBPR 17 Programme 39 Budget Project 200 Outputs Aimed to meet the expectations of States Signatories

7 RBM Focus Lessons Learned Planning Expected Outputs Outcome Targets Assessment /Evaluation Achieved Outcomes - KPI Implementation Products Delivered Monitoring Delivered Outputs

8 RBM Focus (cont.) Outcome Achievements Key Achievements Lessons Learned Budget Variances

9 RBM Focus (cont.) CTBT/PB-2010 CTBT/PTS/INF.xxx 2010 P&B AND RELATED DECISIONS 18 Outcomes 85 KPIs Streamlining and Quality assurance Exercise done on the KPIs for the 2011 Programme 2010 P&B PERFORMANCE REPORT 18 Outcomes ~40 KPIs

10 Page 10 Programme and Budget Regular budget is programme driven Resource estimates are grouped according to programme structure The regular budget has two funds: General Fund (GF) and Capital Investment Fund (CIF) GF: one year budget CIF: multi-year budget for build-up and sustainment of IMS network (split between CIF-I and CIF-S) Split appropriation: budget prepared + States Signatories assessed in US$ and - based on estimated requirements in each currency US$ is used as a functional currency ( portion is revalued each month) The budget is often limited by a ZRG constraint Article 4 contains the Regs/Rules related to the Budget

11 Page 11 Programme and Budget $119k below ZRG The 2011 Budget (at 2010 prices) amounts to $115.5m and is broken down as follows: GF: CIF-I: $97.5m $8.5m CIF-S: $9.5m Fixed costs represent about 75% of the General Fund

12 Page 12 Financial Services Section (ADM/FS) Budget Implementation Payments Treasury Accounts

13 Page 13 Once the Budget is approved Our internal financial policies are guided by Article 5 Appropriations of the Financial Regulations and Rules And Administrative Directives provide detail to the processes

14 Page 14 Extracts of Article 5 Appropriations (5.1) Obligations (5.2.01) Appropriations remain available 12 months following end of financial year (5.3) Provisional cash balance (5.4.01) Cash surplus (5.4.02)

15 Page 15 Extracts of Article 5 Transfer of funds between Major Programmes (5.5.01) Transfer of funds within a Major Programme (5.5.02)

16 Budget Implementation Cycle Approved allotments are issued in IMIS PADs are sent to Allotment Managers/ Certifying Officers Pre-encumbrances Stage IMIS/Procsys/Atlas Obligations Stage Available Balance for spending Disbursement Stage

17 Payments Unit Activities Prepare and approve payment transactions, including invoices related to Purchase Orders, contracts, vendor advances, imprest funds Advances and replenishments, and tax refunds for US staffs; Responsible for payroll for Professionals and General Services Staff Prepare and approve travel expenses; For Staff: duty travel, home leave travel, education grant travel, training travel and ticket reimbursement For Non Staff: travel and DSA for participants to attend workshops, meetings and training courses.

18 ITS, Invoice Tracking System Treasury ITS SYSTEM Received invoice prepare and approve payments approved in ITS and inspection in IMIS Payments Team send to Certifying Officer Certifying Officer back Requesting Officer rerouted The CO is responsible for the acknowledgement of receipt, and certification of the goods and services, per the Admin Directives

19 Page 19 Treasury Activities Administration and collection of assessed contributions from Member States as well as receipt of all other monies received for the PTS; Investment of the PTS funds; Cash flow management; Execution of payment disbursements; Management of bank accounts.

20 Accounts Activities The major function of the Accounts unit is to prepare the Annual Financial Statements of the CTBTO at each year end, upon which the goal is to receive an unqualified audit opinion from the external auditor. This entails working mainly with the internal units of Finance e.g. Payments, Treasury and Budget Implementation. Some information is required from substantive divisions and other sections of Administration Focal Point for discussions with External Auditor

21 Page 21 Accounts Activities The Accounts interacts on a regular basis with substantive sections in the management of Voluntary Contributions. This involves preparation, allotment and monitoring of the budget together with the respective project manager and the certifying officer, in accordance with the provisions agreed with the donor. Preparing the Voluntary Contribution Financial Statement on an interim basis and at the end of the project.

22 Page 22 Useful Budget and Finance Terms Obligations Contingency Margin Provisional Cash Deficit Carry Forward Balance Not Backed by Cash Cash Surplus Supplementary Appropriation

23 Page 23 Discussion Questions How does the PTS implement the annual Programme and Budget if all States Signatories do not pay their assessed contributions? What happens to funds that are not spent in a given year? Can unspent funds from one year be used for projects in a subsequent year? How is it possible to have a cash surplus and a shortfall in payments of assessed contributions in the same year?