Document number: PC-XIV6
Document date: 13 June 1996
Original: ENGLISH
Corrigenda () have been inserted at the relevant places!
Fourteenth Session
(22 - 26 July 1996)
EXPERT GROUP ON PROGRAMME OF WORK AND BUDGET
THIRTEENTH REPORT
1. Introduction
1.1 The Expert Group on Programme of Work and Budget met in The Hague on 3, 4, 6, 10, 11 and 13 June 1996.
1.2 Mr. Arturo Hernández-Basave of Mexico continued as the Chairman of this Group.
1.3 In accordance with the Plan of Activities annexed to the Report of the Thirteenth Session of the Commission (PC-XIII/18), the Group adopted its agenda as contained in PoWB Paper No.5 dated 29 May 1996, and considered the following agenda items:
Report of the Tenth Meeting of the Finance Group (PC-XIV/A/WP.4)
Funding aspects of the "minimum" IMS available at entry into force, taking into account relevant Reports of the Expert Group on Data Systems and analyses provided by the Executive Secretary
Basic parameters of the 1997 Draft Budget of the Commission
Issues regarding the First OPCW Budget
Budgetary issues related to the transition from the Preparatory Commission to the OPCW
Evaluation of any materials provided by the Executive Secretary on budgetary issues
1.4 Because the preliminary Draft 1997 Budget of the Commission was not complete, i.e. because Part I of the draft 1997 budget of the Information Systems Branch was submitted at a later stage, and because Part II of the Draft 1997 Budget of the Commission was not available at all, the Group was unable to consider the preliminary Draft 1997 Budget of the Commission.
2. Recommendations
2.1 The Group recommended that Working Group A refer the following recommendations to the Commission for consideration and approval at its Fourteenth Session:
On the basic parameters for the Budget of the Commission for 1997
(a) that the basic parameters for the Budget of the Commission for 1997, as outlined in the Annex to this Report, be endorsed; and
On budgetary issues related to the transition from the Preparatory Commission to the OPCW
(b) that the Secretariat be requested to update the Secretariat background paper dated 2 May 1996 on this issue, by taking into account the comments of this Group and of the Expert Group on Administrative, Financial and Personnel Matters, and the relevant paragraphs of the Report of the Tenth Meeting of the Finance Group dealing with budgetary matters, and to present the updated paper to the next meeting of this Group for further review.
On materials provided by the Executive Secretary on budgetary issues (transfers proposal)
2.2 The Group requested the Secretariat to prepare an up-to-date paper on transfers of funds within Part I and Part II of the approved 1996 Budget, to be available for the meeting of Working Group A at the Fourteenth Session of the Commission. This would enable the latter to consider, in the light of the circumstances, any necessary action for the resolution of the issue of inter-programme transfers of funds during the subsequent intersessional period, in conformity with the Financial Rules and Regulations, in order to cover priority underfundings not provided for through intra-programme transfers.
Proposed agendas for the next intersessional period
2.3 The Group also recommended that Working Group A recommend approval of the following agendas for the Finance Group and this Group in the plan of activities of the Expert Groups and Task Forces under Working Group A for the next intersessional period:
(a) that the next meeting of the Finance Group consider the following tasks:
Consider the proposed 1997 Commission Budget (Parts I and II)
Consider the first draft OPCW Budget
Review the draft OPCW Financial Rules on Reimbursable Expenses
Consider proposals and procedures for transfers of funds (Part I and Part II of approved 1996 Budget)
Consider a discussion paper from the UK expert on the appropriate accounting for obligations by the Commission/OPCW
Consider a discussion paper from the Austrian expert on the methodology for the budgeting and accounting of staff costs
Review the Secretariat paper on the status of 1996 assets and assessed contributions
Consider issues related to the transition from the Commission to the OPCW (if necessary)
Review a Secretariat report on the budgetary aspects of the IMS
Evaluate any other materials provided by the Executive Secretary on budgetary issues
(b) that the next meeting of the Expert Group on Programme of Work and Budget consider the following items:
Review the Eleventh Report of the Finance Group
Consider the proposed 1997 Commission Budget (Parts I and II)
Consider the first draft OPCW Budget
Consider issues related to the transition from the Commission to the OPCW (if necessary)
Consider proposals and procedures for transfers of funds (Part I and Part II of approved 1996 Budget)
Evaluate any other materials provided by the Executive Secretary on budgetary issues
Annex
BASIC PARAMETERS FOR THE BUDGET
OF THE COMMISSION FOR 1997
The draft Budget of the Commission for 1997 shall be prepared, as far as possible, taking into account the following parameters.
1. The Secretariat should prepare a draft budget which would reflect maximum economy. The Secretariat should specify what the overall change would be and should clearly state reasons for variances and redeployments in relation to 1996. The reasons should be limited to the following:
(a) changes in statutory staff costs governed by the Staff Regulations and Rules;
(b) a task or activity which was not previously foreseen or sufficiently identified but which is considered essential for the fulfilment of the Commission's objectives until EIF; and
(c) regard should also be paid, particularly in preparing Part II, to the resources necessary and the timing of their provision to make the OPCW fully operational.
2. Attention shall be given to identifying additional areas in which cost decreases may be possible by re-examining the current relevance of the historical justification for the baseline cost of the Budget ("zero-based" budgeting).
3. The appropriate Netherlands inflation factor shall be applied to each object of expenditure, if and as applicable.