BUDGET COMMITTEE
PRESENTATION BY THE OZONE
SECRETARIAT
Joint 10th meeting of the
Conference of the Parties to the VC and
26th Meeting 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
RESERVES AND FUND BALANCES
CHANGES DUE TO 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
RESERVES AND FUND BALANCES
CHANGES DUE TO 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
RESERVES AND FUND BALANCES
CHANGES DUE TO 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
TRENDS IN FUND BALANCES AND
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 BUDGET FOR
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.
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PROPOSED REVISED 2014 BUDGET FOR
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 BUDGETS FOR THE VC
TRUST FUND AND 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
Total budget
(with psc)
2015
2016
2017
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
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PROPOSED 2015-2017 BUDGETS FOR THE VC
TRUST FUND AND 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.

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PROPOSED 2015-2016 BUDGETS FOR THE
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
Required
contributions
2015
2016
5,065,460
5,090,765
5,133,894
788,527
813,832
856,961
4,276,933
4,276,933
4,276,933
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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

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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.
Year
Funding of Total
Approved Funding of
non Art 5
funds
Budget
Art 5 experts
experts
spent
% spent
on non
Art 5
experts
2010
500,000
453,092
24,852 477,944
5.50%
2012
400,000
309,847
21,858 331,705
6.59%
2014 *
450,000
287,915
17,613 390,002
4.50%
* As of October 2014
Utilization
of budget
96%
83%
87%
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WHAT’S NEW IN THE 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.

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POSSIBLE ADDITIONAL REQUIREMENTS FOR
THE CONSIDERATION OF THE 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.

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POSSIBLE ADDITIONAL REQUIREMENTS FOR
THE CONSIDERATION OF THE 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.

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