Montreal Protocol Trust Fund Financial Reports 2020-2021 Overview

Budget 2020 2021 for the Montreal Protocol Trust Fund & Financial Reports for the Montreal Protocol and Vienna Convention Trust Funds (Agenda item 3 of the preparatory segment) UNEP/OzL.Pro.31/4 in conjunction with UNEP/OzL.Pro.31/INF/1, UNEP/OzL.Pro.31/5 and UNEP/OzL.Pro.31/INF/2 Everyday from 2 3pm in Philippines room Every day from 2 3pm in Philippines room

Outline Highlights of the financial report for 2018 (UNEP/OzL.Pro.31/5) Highlights of the indicative financial report for 2019 as at 30 Sep 2019 (UNEP/OzL.Pro.31/INF/2) Financial health of the Montreal Protocol Trust Fund Budget 2020 and 2021 (UNEP/OzL.Pro.31/4 & UNEP/OzL.Pro.31/INF/1) Next steps 2

2018 Financial Report - Montreal Protocol Cost category Approved Budget Expenditures 1,289,852 1,210,880 1,128,747 217,541 339,574 4,268,192 557,482 4,825,674 Utilisation Staff costs Consultants Meeting costs A-5 travel Staff travel Operational costs Total Direct Costs Programme Support Costs Grand Total 1,395,479 85,000 1,265,230 1,245,000 225,000 498,205 4,713,914 612,808 5,326,722 92% 96% 96% 91% 97% 68% 81,598 91% 91% utilization rate Expenditures for all cost categories are within the approved budget for the category Cash contributions received: $6,332,110 against expected contributions of US$5,546,722 of which $2,462,514 for prior years $3,842,735 for 2018 $26,861 for future years Earmarked contributions received for 2018 activities: $298,838 Cash balance (1 January 2018) = $5,296,701 Vs Cash balance (31 December 2018) = $6,970,025 Expenditures include commitments which do not consume cash till paid-out. Investment returns ($142,966) Cash received during the year against prior and future year contributions 3

2019 indicative Financial Report as at 30 Sep 2019 - Montreal Protocol Indicative report as at 30 September is being formally presented for the first time. Cost Category Employee salaries, allowances and benefits Consultants Meeting costs Travel of Article 5 parties and experts Travel on official business Other operating costs Public awareness and communication Total direct costs Programme Support Costs Approved Budget Expenditure Utilisation 1,492,918 1,068,925 72% 85,000 1,332,810 57,207 806,698 67% 61% 60% utilization rate with additional 30% expected to be spent/committed between Oct Dec 2019 1,245,000 529,960 43% Expenditures for all cost categories are within the approved budget for the category. 210,000 190,370 144,966 87,632 69% 46% If MOP31 actuals are close to estimates, then Meeting costs category may exceed the approved budget but will be within 10% allowable threshold. 41% 157,816 4,713,914 612,808 65,102 2,760,490 358,864 59% Additional Activities Programme Support Costs Grand Total 545,184 70,874 5,942,780 375,619 48,830 3,543,803 69% Earmarked contributions received for 2019 activities : $313,973 60% 4

2019 indicative Financial Report as at 30 Sep 2019 - Montreal Protocol (contd.) Digital Presence Additional Activities (Draw down) Approved Budget Approved Budget Cost Category Expenditure Utilisation Cost Category Expenditure Utilisation Public awareness and communication Enhancement of Registration system and Ozone Secretariat website Software & website maintenace Website hosting Additional Activities Online reporting tool for safety standards Contract for services of digital presence Software for enhancement of website & Meetings Portal Total Digital presence CSC -SPARC CFC 11 workshop Online reporting tool for safety standards Printing of the Handbook Communication Campaign 100,000 80,406 80% 90,000 27,816 10,000 48,496 54% 0% 0% 30,000 18,000 70,000 1,850 3,641 - 6% 20% 0% - - Enhancement of digital Presence (Website mobile app and meeting portal) Temporary P3 post Contract for services of digital presence Software for enhancement of website & Meetings Portal Total Additional Activities 150,000 84,387 56% 30,000 1,850 6% 145,000 173,150 119% 145,000 173,150 119% 32,184 545,184 32,184 375,619 100% 69% 32,184 335,000 32,184 255,680 100% 76% Digital presence: 76% utilization rate & 20% in the pipeline Additional activities funded from the draw- down @ 69% with 10% in the pipeline 5

Update on our flagship activity - Digital Presence Year 2018 2019 Amount 194,435 1,850 126,540 Deliverables Status Online data reporting tool (need analysis & tool) Online tool for safety standards Website including: Handbooks Data centre Country profiles Completed Completed Ongoing Completed Ongoing Completed 27,290 149,480 38,000 Mobile App : Handbooks Meeting portal revamping Website hosting & enhancement of Registration system Contacts management system (proposed budget of $60,000) Mobile App : Data centre (proposed budget of $30,000) Website hosting (proposed budget of $10,000) Online tool on 'Blends' (no budget proposed as yet) Completed Ongoing* Completed ** 2020 Commencement awaiting budget approval TOTAL 537,595 * Partial funds not yet committed. Awaiting review of contract by PD / NY ** Billing awaited 6

Financial Health of the Trust Fund - Montreal Protocol Cash balance (1 Jan 2019) = $6,970,025 (Cash balance 31 Dec 2018) Reserves = $799,008 Cash contributions received Jan Sep 2019 = $2,681,500 Cash balance as of 30 Sep 2019 = $6,545,331 Cash Consumption: Exp. Vs Cash rcvd 140% 125% 120% 106% 100% 80% 74% 60% 53% Expected cash in-flows (Oct-Dec 2019) = $2,200,000 Expected cash consumption (Oct Dec 2019) = $2,147,553 Expected cash balance (31 Dec 2019) = $6,597,778 40% 20% 0% 2016 2017 2018 2019 Unplanned earmarked contributions from parties As at 30 Sep 2019 7

Budget 2020 2021 What s new in the budget document (UNEP/OzL.Pro.31/4) ? Revision to current year (2019) has not been presented: Not overspent against the total budget in the past and do not anticipate exceeding the 2019 approved budget Expect to implement budget without making any changes to planned activities Will ensure variances resulting in transfers amongst cost categories are within the allowable 10% Reviewed practices adopted by other MEAs Host Govt. contribution for MOP 31 received well in advance giving more certainty in managing budget Indicative report as at 30 Sep 2019, in lieu of, revised 2019 gives the most recent status of the budget 16 fact sheets representing 6 areas of work Reviewed best practices adopted by other MEAs Proposed upgrade of Communications Officer post from P3 to P4 : To undertake additional activities evolved overtime with the change in communication approaches and technologies 8

Budget 2020 Highlights Two scenarios: Zero Nominal Growth (ZNG) $5,326,722 @ the same level of 2019 With additional activities, $5,564,022 @ 6% less from 2019 or 2% less from proposed budget Description Budget Additional activities Total Approved 2019 5,326,722 616,058 5,942,780 ZNG 2020 5,326,722 237,300 5,564,022 Variance 0% -61% -6% Description Budget Additional activities Total Proposed 2020 5,431,014 237,300 5,668,314 ZNG 2020 5,326,722 237,300 5,564,022 Variance -2% 0% -2% Proposed budget $5,431,014 @ increase of $104,292 (2% ) over ZNG or 2019 With additional activities, $5,668,314 @ decreased by $274,466 (5%) from 2019 Description Budget Additional activities Total Approved 2019 5,326,722 616,058 5,942,780 Proposed 2020 Variance 5,431,014 237,300 5,668,314 2% -61% -5% Additional activities amount to same in both scenarios 9

Proposed Budget 2020 Changes made to the approved 2019 budget : Staff costs increased by $60,062 (4%) to cater for: 2% to cater for inflation UNV already approved for 2019 and noted for 2020 Post upgrade costs for 2020 only: Communication Officer post , funded under the VC budget. For 2020, VC budget already approved by the eleventh COP (decision XI/3). Meeting costs for OEWG increased by $92,500 (7%) : Cost estimates received from service providers (UNON & ICAO) Provision for additional documentation (ref. recent past trends show increase in volume of documents for editing/translation) A5 Travel decreased by $50,000 (4%) : Assessment Panels travel decreased by $50,000 ( ref. past expenditures and timing of the assessment year) Increase in MOP travel by $25,000 and OEWG travel by $40,000 (to allow more participation ) Decrease in Bureau and ImpCOM travels by $5,000 and $60,000 respectively ( ref. past expenditures) Operating costs decreased by $12,453 (7%) 10

ZNG Budget 2020 What did we reduce from the proposed 2020? Decrease in hospitality budget by $10,000 takes away the flexibility to host/co-host receptions during the meetings. Operating costs reduced by $47,500 will impact: media coverage of the meetings day-to-day operational requirements including expendables, supplies Inability to replace broken equipment and old furniture Reduction in communications & public awareness budget by $34,794 affects: communication campaigns Some compromises may have to be made in website hosting and maintenance which will be counter productive given the investment done in the digital presence since 2018 What did we reduce from the approved 2019? Decrease in hospitality budget by $10,000 Operating costs reduced by $59,953 Reduction in communications & public awareness budget by $32,610 11

Value for money TRAVEL : 21-day rule compliance helps get good deals on airfare. STAFF DEVELOPMENT : Use in-house training opportunities. Organised course for all staff in report writing skills. 3-fold benefits: Team building Capacity building @ Affordable costs ($ & convenience) 460 451 .our compliance rate is one of the highest in UNEP 12

Next Steps The Budget Committee is requested to: Review and approve budget and levels of contributions for 2020 Review and take note of budget and levels of contribution for 2021 Review and take note of the fact sheets for 2020 and advise on the way forward Agree on the budget decision to present to the plenary for consideration for adoption 13

Thank You 14