Ozone Secretariat Budget Committee Presentation - Financial Trends and Proposed Budget
The presentation by the Ozone Secretariat's Budget Committee focuses on financial trends related to reserves, fund balances, and the impact of IPSAS. It also outlines proposed budgets for the VC and MP Trust Funds, earmarked contributions, and TEAP funding issues.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
BUDGET COMMITTEE PRESENTATION BY THE OZONE SECRETARIAT Joint 10thmeeting of the Conference of the Parties to the VC and 26thMeeting of the Parties to the MP 17.11.2014
ISSUES FOR THE ATTENTION OF THE PARTIES Reserves and fund balances the big picture, changes introduced by the IPSAS Proposed 2014 revised budget for the VC and the MP Trust Funds Proposed 2015 2017 budgets for the VC Trust Fund and audit recommendations Proposed 2015 2016 budgets for the MP Trust Funds Earmarked contributions TEAP funding issues What s new in the presentation of the budget documents 2
RESERVESAND FUND BALANCES CHANGESDUETO IPSAS Expenses are recognised only in the year they occur. Closing of obligations not relevant to 2013 goes to reserves. This led to an increase in fund balances as of 31 Dec 2013. 3
RESERVESAND FUND BALANCES CHANGESDUETO IPSAS Under IPSAS, provisions (resources) are established (set aside) against old contributions. This leads to decrease in fund balances and reserves. Provision is not a write off. Outstanding contributions are still due from parties. A percentage provision is applied to contributions that have been outstanding for years. The actual provision under the MP Trust Fund is 1,455,262 USD. The actual provision under the VC Trust Fund is 393,454 USD. 4
RESERVESAND FUND BALANCES CHANGESDUETO IPSAS Impact of the two main changes due to IPSAS on the fund balances and reserves: (a) impact of expenditures occurring in the year that the service is provided, (b) impact of the provision for overdue contributions. 5
TRENDSIN FUND BALANCESAND RESERVES In 2006, parties agreed to keep contribution steady and drawdown on reserves. Since then, there has been a decrease every year. At 2013, the closing of obligations resulted in increase and in 2014 the provisions for outstanding contributions resulted in decrease. 6
PROPOSED REVISED 2014 BUDGETFOR THE VC TRUST FUND Overall revised 2014 budget remains unchanged. Major shift: increase 3% in conference services for COP. The increase in conference services budget line is partly due to loss of flexibility to use unobligated money from previous years. 7
PROPOSED REVISED 2014 BUDGETFOR THE MP TRUST FUND Overall revised 2014 budget remains unchanged. Main shift: increase by 5% in conference services for MOP, OEWG. The increase in conference services budget line is partly due to loss of flexibility to use unobligated money from previous years. 8
PROPOSED 2015-2017 BUDGETSFORTHE VC TRUST FUNDAND AUDIT RECOMMENDATIONS 2015 3% increase over 2014 revised budget, less the costs for ORM and COP 2016 0.8% increase over 2015 proposed budget 2017 (COP/MOP year) 8.6% increase over 2014 cost. Despite these increases, annual contributions by parties remain constant because of the draw downs. Revised 2014 2015 2016 2017 Total budget (with psc) 1,280,309 782,377 789,713 1,390,636 Draw down 677,309 179,377 186,713 787,636 Required contribution 603,000 603,000 603,000 603,000 9
PROPOSED 2015-2017 BUDGETSFORTHE VC TRUST FUNDAND AUDIT RECOMMENDATIONS Extension of Trust Fund to 31.12.2025 Inclusion of 2% operational reserve Inclusion of 15% financial reserve according to the auditors recommendations. The 15% can be assessed on the 2015 budget and can remain steady for the next three years. 10
PROPOSED 2015-2016 BUDGETSFORTHE MP TRUST FUND 2015 - 4.8% increase when compared to 2014 without the HFC management workshop budget. Extension of Trust Fund to 31.12.2025 Inclusion of 2% operational reserve Annual contributions by parties remain constant because of the draw downs. Revised 2014 Total budget (with psc) Draw down 788,527 Required contributions 2015 5,090,765 2016 5,065,460 5,133,894 813,832 4,276,933 856,961 4,276,933 4,276,933 11
EARMARKED CONTRIBUTIONS Contributions from Norway, Sweden and Finland for support of the participation of Least Developed Countries to the meetings Contributions from IPAC Contributions from EU 12
TEAP FUNDING ISSUES Budget for travel of Assessment Panels (A5 experts) was 500,000 in 2010 but decreased to 450,000 in 2012. On exceptional basis, travel of non-A5 experts was funded whenever their participation became necessary after funding of A5 experts was ensured. Parties may wish to build on decision XXI/32 and consider flexibility of up to 5% for funding non-A5 experts in exceptional circumstances. % spent on non Art 5 experts Funding of non Art 5 experts Total funds spent Approved Budget Funding of Art 5 experts Utilization of budget Year 96% 83% 87% 2010 2012 2014 * 500,000 400,000 450,000 453,092 309,847 287,915 24,852 477,944 21,858 331,705 17,613 390,002 5.50% 6.59% 4.50% 13 * As of October 2014
WHATS NEWINTHE BUDGET PRESENTATION Inclusion of summarised tables and comparisons for ease of understanding Inclusion of the OS organogram and staffing tables Certified financial statements of earmarked contributions distributed. 14
POSSIBLE ADDITIONAL REQUIREMENTSFOR THE CONSIDERATIONOFTHE PARTIES - 1 Activities for the 30th Anniversary of the VC by highlighting accomplishments about health, environmental, economic, social benefits. Products: Ozone feature film, strategic media outreach activities to disseminate key messages via a youth campaign. The parties may wish to consider some additional funding for the funding of the above mentioned activities. 15
POSSIBLE ADDITIONAL REQUIREMENTSFOR THE CONSIDERATIONOFTHE PARTIES - 2 If the parties wish to contribute to the carbon neutrality of the 26th MOP, 10th COP, the cost of offsetting the climate impact of the meeting is 513 Euros (640 USD). CO2 emissions for the 26MOP/10COP estimated at 760 tons of CO2 equivalent. Current price is 0,25 Euros for 1 AFCER (Adaptation Fund Certified Emissions Reduction). Cost of offsetting the CO2 emissions is 190 Euros. 16
