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CTBTO Introductory CourseBudget and Finance

John S. Sequeira

Director,

Division of Administration

Monitoring and

Performance

assessment

(MAPA)

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Budget

Implementation

(history)

Evolving Technical,

Political

circumstances

Constraints

(ZRG, austerity, etc.)

Budget

Formulation

(1 Year)

Budget

Implementation

(1 Year)

Strategic

Planning

(5 Years)

Programme and Budget Formulation

Treaty, Mission

MTP P&B PBPR

Lessons

Learned

Assessment and

Evaluation

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Advisory

Group

Working

Group B

Working

Group A

States

Signatories

A coordinated process

PTS

Preparatory Commission

Programme and Budget Formulation

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AG

reviews

Initial P&B

WGA/B

reviews

Initial P&B

PTS

Formulates 1st

Draft P&B

PC

reviews

Initial P&B

PTS

revises

P&B

AG,WGA/B

review

revised P&B

PC

Approves Final

P&B

Nov

Apr - May

Jun

JunAug - Sep

Feb - Mar

PTS

Revises and issues

Final P&B

Programme and Budget Cycle

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Strategic Planning Framework2009-2013

Strategic Goal 1

BUILD UP THE IMS

VERIFICATION

SYSTEM

INFRASTRUCTURE

Strategic Goal 2

ENSURE TIMELY

AVAILABILITY AND

QUALITY OF

RAW DATA

Strategic Goal 3

ENSURE TIMELY

PRODUCTION AND

DISTRIBUTION OF

HIGH QUALITY

DATA PRODUCTS

Objective 1.1

Continue the build-up of

the IMS network

Strategic Goal 4

CONSOLIDATE

OSI CAPABILITY

AND READINESS

Strategic Goal 5

ADVANCE THE

TREATY

TOWARDS

UNIVERSALITY

Objective 4.1

Further develop the

OSI regime through the

implementation of the

OSI strategic plan

Objective 6.2

Enhance transparency in

reporting to PMOs

Objective 6.3

Continue to improve the

provision of services to

PMO meetings

Objective 5.1

Assist in achieving

Treaty objectives and

building up the

verification regime

Objective 5.2

Provide legal advice

and services

Objective 5.3

Disseminate timely

information products

Objective 2.1

Ensure prompt detection

and management of

incidents

Objective 2.2

Ensure effective

operations - IMS

facilities

Objective 3.1

Ensure the timeliness of

automated and reviewed

products

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 7.1

Provide reportable quality

measures to enhance

confidence in the

functioning of the PTS and

in its products and services

Objective 6.1

Continue to support

improvements in the

efficiency and

effectiveness of

programme delivery

Strategic Goal 6

ENSURE

EXCELLENCE IN

MANAGEMENT

Objective 4.2

Validate, test and

improve OSI capabilities

and readiness

Objective 7.2

Strengthen the PTS

oversight function

Strategic Goal 7

ENHANCE

OVERSIGHT AND

TRANSPARENCY AND

ENSURE CONTINUAL

IMPROVEMENT

Objective 2.3

Ensure cost efficient

operations –

IMS facilities

Objective 2.4

Ensure effective and

efficient operations – GCI

Objective 2.5

Ensure effective and

efficient operations - IDC

data processing

infrastructure

Aimed to meet the expectations of States Signatories…

SG

MP

Outcome

Programme

Budget Project

Outputs

7

7

16

17

39

200

EIF

Readiness

PBPR

CTBT/PTS/...

KPI 41

Programme Structure andRBM Focus

Planning

Implementation

Monitoring

Assessment /Evaluation

Expected Outputs

Outcome TargetsLessons Learned

Delivered Outputs

Achieved Outcomes - KPI Products Delivered

RBM Focus

Budget

Variances

Key

Achievements

Lessons

Learned

Outcome

Achievements

2008 2009 2010 2011

RBM Focus (cont.)

2010 P&B AND RELATED

DECISIONS

CTBT/PB-2010

18 Outcomes

85 KPIs

CTBT/PTS/INF.xxx

2010 P&B

PERFORMANCE

REPORT

18 Outcomes

~40 KPIs

Streamlining and

Quality assurance

Exercise done on the

KPIs for the

2011 Programme

2009 2010 2011

RBM Focus (cont.)

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Regular budget is programme driven

Resource estimates are grouped according toprogramme 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 andsustainment of IMS network (split between CIF-I and CIF-S)

Split appropriation: budget prepared + StatesSignatories 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

Programme and Budget

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$119k below ZRG

The 2011 Budget (at 2010 prices) amounts to $115.5mand is broken down as follows:

• GF: $97.5m

• CIF-I: $8.5m

• CIF-S: $9.5m

Fixed costs represent about 75% of the General Fund

Programme and Budget - 2011

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Financial Services Section (ADM/FS)

Budget Implementation

Payments

Treasury

Accounts

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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

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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)

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Extracts of Article 5

Transfer of funds between MajorProgrammes (5.5.01)

Transfer of funds within a MajorProgramme (5.5.02)

Approved allotments are issued in IMIS

PADs are sent to Allotment Managers/

Certifying Officers

Pre-encumbrances Stage

IMIS/Procsys/AtlasObligations Stage

Disbursement Stage

Available Balance for spending

Budget Implementation Cycle

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.

ITS SYSTEM

ITS, Invoice Tracking System

Payments Team

Treasury

Certifying Officer

Requesting Officer

Certifying Officer

Received invoice

prepare and approve

payments

send to

rerouted

back

approved in ITS

and inspection

in IMIS

The CO is responsible for the acknowledgement of receipt, and certification of the goods and services, per the

Admin Directives

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.

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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

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.

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Useful Budget and Finance Terms

Obligations

Contingency Margin

Provisional Cash Deficit

Carry Forward

Balance Not Backed by Cash

Cash Surplus

Supplementary Appropriation

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 shortfallin payments of assessed contributions in the same year?

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