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ICAOTECHNICAL COOPERATION BUREAU

Financial and Budgetary Control and Audit

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SUMMARY OF CONTENTS

Financial Administration of ICAO Funding of the Regular and Technical Cooperation

Programmes Administration of the Technical Cooperation

Programme Functions of Programme Budget Unit Types of Budgets Budget Components Financial and Budgetary Control Financial Reporting Internal and External Audit of ICAO Conclusion

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FINANCIAL ADMINISTRATION OF ICAO

ICAO Financial Regulations

ICAO Finance Branch

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The ICAO Financial Regulations

Approved by the Assembly and govern the financial administration of the Organization

Article IX of the Financial Regulations covers Technical Cooperation

All transactions of the Organization have to be in accordance with the ICAO Financial Regulations and Rules

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The ICAO Finance Branch

Maintenance of accounts

Preparation of Programme Budget

Operation of payroll, treasury and banking operations

Calculation of scales of assessments

Preparation of Council and Assembly working papers

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FUNDING OF THE REGULAR AND TECHNICAL COOPERATION PROGRAMMES

Regular Programme

Funded by assessments on Contracting States

Assessments based on national income and aviations activity

Technical Cooperation

Funded by administrative charges from projects

No grants received from Regular Programme

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ADMINISTRATION OF THE TECHNICAL COOPERATION PROGRAMME

Conducted under broad policy guidance of ICAO Assembly and Council

Subject to general guidance by Secretary General

Technical Cooperation Programme is executed by Technical Cooperation Bureau

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FUNCTIONS OF PROGRAMME BUDGET UNIT

Budgetary and expenditure control of all TC activities

Trust Fund and Management Service Agreement (MSA) project budgets

Administrative budget of the Bureau

Preparation of management reports

Coordination with Finance Branch

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TYPES OF BUDGETS

United Nations Development Programme (UNDP)

Trust Fund

Management Service Agreement (MSA)

Civil Aviation Purchasing Service (CAPS)

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UNDP Budgets

Standard budget format (Main budget components discussed

later)

International experts and consultants based on pro forma costs

Core funds – from UNDP’s own resources

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UNDP Budgets (continued)

Cost-sharing funds – from governments and other entities (cost sharing may be partial or full)

10 % Administrative and Operational Services (AOS) cost

3% Country Office Administration (COA) cost

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Trust Fund Budgets

Based on estimated actual costs

Funds are deposited directly with ICAO

Support Cost, an across-the-board flat rate percentage

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Management Service Agreement (MSA) Budgets

Similar to Trust Fund except:

The cost of providing the service is calculated so that all costs incurred are recovered

A specific handling charge and not a fixed percentage

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Civil Aviation PurchasingService (CAPS) Budgets

Meet aviation equipment needs

Procurement and technical support services fees

Procurement Section of TCB

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BUDGET COMPONENTS

Main components of a budget are: Component 10: Project personnel Component 20: Subcontracts Component 30: Training Component 40: Equipment Component 50: Miscellaneous (includes

reporting costs, sundry and administrative overhead)

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FINANCIAL AND BUDGETARY CONTROL

ICAO Financial Regulations and Rules

Funds required before implementation

Budgetary provisions for activities Project budgets are closely monitored

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FINANCIAL AND BUDGETARY CONTROL

Asia PacificProject

XYZ

PersonnelRecruitment

PurchaseOrder for

Equipment

Training

PBU

FPS

FPRO

FSU

FPS

FPRO

FSU

D/TCB

Africa AmericasEurope andMiddle East

ExpertXYZ

EquipmentXYZ

FellowXYZ

AccountXYZ

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FINANCIAL REPORTING

Contributions received are credited to separate funds

Quarterly financial statements are provided

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INTERNAL AND EXTERNAL AUDIT OF ICAO

Internal Audit

Office of Programme Evaluations, Audit and Management Review

Conduct evaluations, audits and reviews of the Organization’s operations

Promote economic and efficient use of resources

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INTERNAL AND EXTERNAL AUDIT OF ICAO (continued)

External Audit

External Auditor appointed by the Council and confirmed by the Assembly

Annual audits - areas of concern: - financial statements - financial transactions - funds on hand - internal controls

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CONCLUSION

ICAO Technical Cooperation Bureau in operation for more than 50 years

Implemented hundreds of projects

Will continue to provide assistance to States under cost-recovery principles

Thank you for your attention.