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Chapter VII Budget and Other Fina

CHAPTER VII  Budget and Other Financial Expenditures

i.     General principle
ii.     Line-item desegregation
iii.     Scenarios
iv.     Remarks section
v.     Ultimate responsibility
vi.     Responsibility of Chairman
vii.     Other financial expenditures

i.    General principle

As a general principle, the Secretariat shall have the primary responsibility of preparing the budget and projections of any other financial expenditures, at minimum twice per annum, on a rolling basis, and forward-looking for at least the coming fiscal year.

ii.    Line-item desegregation  

The budget shall consist of line-item expenditure details, disaggregated as defined per international accounting standards.

iii.    Scenarios

The budget shall be presented in three scenarios: a) Low Case; b) High Case; and c) Most Likely.

iv.    Remarks section

The budget shall, without exception, be accompanied by a Remarks section, appearing a separate Appendix, addressing the issue of 'Value-for-Money' in budget expenditures.  Value-for-Money shall include but not be limited to: a) alternative use of the same expenditure; b) estimate of expenditure impact time-line; c) possibility for cost-overruns; and d) any other issues, as and when required.

v.    Ultimate responsibility

Ultimate responsibility for the budget and projections of any other financial expenditure shall be that of the Secretariat and the Managing Director.

vi.    Responsibility of Chairman

Once accepted by Directors, the Chairman shall be responsible for regularly briefing Directors on the current status of the approved budget, including line-item actual vs. planned expenditure.

vii.    Other financial expenditures

Any other decisions involving financial expenditures, regardless of size and including decisions approving recommendations of Committees of the Board, shall be accompanied by a summary estimate of likely cost, presented in three scenarios: a) Low Case; b) High Case; and c) Most Likely; accompanied as well by an estimate of impact on and relationship to the budget.

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