CP/RES. 831 (1342/02)

USE OF EXCESS RESOURCES OF THE RESERVE SUBFUND
FOR CAPITAL INVESTMENTS AND TO MEET OAS MANDATES

THE PERMANENT COUNCIL OF THE ORGANIZATION OF AMERICAN STATES,

RECOGNIZING that the accumulation and maintenance of adequate capital reserves is vital for ensuring the long-term financial stability of the Organization of American States ("OAS"), for financing needed capital improvements, and for strengthening its capacity to meet its mandates;

TAKING NOTE:

That resolution AG/RES. 1909 (XXXII-O/02) amended the General Standards of the Organization to increase the amount of the Reserve Subfund of the OAS ("Reserve Subfund") to 30 percent of the total of the annual quotas of the member states, and it authorized the Permanent Council to decide on the use of the excess above that amount and instructed it to inform the next regular session of the General Assembly on how that excess has been appropriated;

That resolution AG/RES. 1909 (XXXII-O/02) instructed the General Secretariat to present to the Permanent Council a proposal to conduct a review ("management study") of the organizational framework and personnel structure of the General Secretariat with the purpose of improving efficiency and effectiveness, and instructed the Permanent Council to decide whether to proceed with the study and to identify the corresponding funding if the decision is affirmative;

That resolution AG/RES. 1909 (XXXII-O/02) encouraged the Secretary General to review the investment policy for the Regular Fund in order to maximize interest income in a manner consistent with sound investment practices in the short, medium, and long terms;

That resolution CP/RES. 823 (1335/02) authorized the Secretary General to obligate from the Reserve Subfund of the Organization up to two million six hundred and fifty thousand dollars (US$2,650,000) for the renovation of the Simon Bolivar Room and up to seven hundred and fifty thousand dollars (US $750,000) for the transformation of the former stacks of the Columbus Library into a delegate room and a multi-purpose room, and to request the General Assembly to exempt from the Article 71.b reimbursement requirement, the funds appropriated under this resolution;

TAKING INTO ACCOUNT:

That resolution AG/RES. 1756 (XXX-O/00) created a permanent specific Fund for Peace for the peaceful settlement of territorial disputes among member states and instructed the Secretary General to promote the raising and mobilization of resources for financing the fund;

That the Capital Fund for OAS Fellowship, Scholarship, and Training Programs established in resolution AG/RES. 1460 (XXVII/97) and further provided for under Article 18 of the Statute of the Inter-American Agency for Cooperation and Development contains some four hundred and fifteen thousand dollars (US$415,000);

That the historic buildings of the OAS require important renovations to ensure their preservation and proper function;

That increasing mandates have placed an additional burden on the Regular Fund resources;

That the Reserve Subfund, due to the receipt of extraordinary income, has exceeded the 30 percent of the total of the annual quotas of the member states as set in AG/RES. 1909 (XXXII-O/02);

That the Secretary General has approved Executive Order No. 02-3, "Establishment of the Secretariat for the Summit Process;" Executive Order No. 02-4, "Services Provided by the General Secretariat to the Ministerial Meetings Related to the Summits Process of the Americas;" and Executive Order 02-5, "Creation of the Coordinating Committee for Technical Cooperation Activities in Conformity with the Strategic Plan for Partnership for Development, to ensure better coordination among the dependencies of the Secretariat in order to give the necessary support to the political bodies in Summit implementation and cooperation activities;"

HAVING SEEN the Work Plan for the Unit for the Promotion of Democracy (UPD),

RESOLVES:

1.     To appropriate the excess resources of the Reserve Subfund pursuant to the authority conferred under AG/RES.1909 (XXXII-O/02) as follows:

a.     Five million dollars (US$5,000,000) as a capital contribution to the Capital Fund for OAS Fellowships, Scholarship, and Training Programs. All interest accrued shall remain in the fund governed by the regulations approved by CIDI;

b.     Four million two hundred thousand dollars (US$4,200,000) to create a Capital Building Fund for the restoration and/or improvements of the historic buildings of the OAS. Expenditures from this fund shall be approved by the Committee on Administrative and Budgetary Affairs;

c.     Four million dollars (US$4,000,000) to the Inter-American Council for Integral Development ("CIDI") for the implementation of Summit of the Americas mandates, two million dollars (US$2,000,000) of which shall be spent on education initiatives with the support of the General Secretariat as specified in the pertinent applicable Executive Orders;

d.     Up to two million six hundred fifty thousand dollars (US$2,650,000) to fund the appropriation authorized in resolution CP/RES. 823 (1335/02) for remodeling the Simon Bolivar Room, and up to seven hundred and fifty thousand dollars (US$750,000) to fund the appropriation authorized in that same resolution for transforming the former stacks of the Columbus Library into a delegate room and multi-purpose room;

e.     One million dollars (US$1,000,000) to the Fund for Peace: Peaceful Settlement of Territorial Disputes;

f.     Up to one million dollars (US$1,000,000) to finance the Management Study of the General Secretariat proposed in resolution AG/RES 1909 (XXXII-O/02), pending approval of such study by the Permanent Council;

g.     Six hundred thousand dollars (US$600,000) to the Inter-American Commission on Human Rights to support its on-site visits, the work of its special rapporteurs, its unit on human rights defenders, and the publication of its documents;

h.     Six hundred thousand dollars (US$600,000) to the Inter-American Court of Human Rights for non-recurring costs;

i.     Four hundred thousand dollars (US$400,000) to the Unit for the Promotion of Democracy for financing conflict resolution initiatives;

j.     Up to four hundred thousand dollars (US$400,000) for the purpose of OAS outreach: up to three hundred thousand (US$300,000) of which shall be allocated to the Columbus Memorial Library for the purpose of making its documents and archives accessible electronically; and one hundred thousand (US$100,000) to pursue outreach activities approved by the Permanent Council to be implemented by the Department of Public Information and the Office of External Relations or as otherwise assigned by the Permanent Council.

2.     To instruct the General Secretariat that:

a.     All appropriations authorized under this resolution may be used only for non-recurring expenses;

b.     The interest earned on these amounts appropriated shall be credited to the Regular Fund in accordance with Article 77 of the General Standards, until they are expended or deposited in the corresponding Capital Fund or Specific Fund, as the case may be. Once deposited in a capital fund or specific fund, the interest shall be credited to that fund;

c.     Any appropriation that cannot be expended for the specific purpose for which it was approved under this resolution shall revert to the Reserve Subfund;

d.     The appropriations under this resolution are not subject to the time limitations for obligations and expenditures set out in Article 99 of the General Standards;

e.     The recipients of the appropriations approved in paragraphs 1.c. through 1.j shall report to the Permanent Council on a quarterly basis on the use of these resources.

3.     To request the General Secretariat to present to the Committee on Administrative and Budgetary Affairs ("CAAP") within thirty days of the adoption of this resolution a proposal for an investment policy for the Reserve Subfund, for the Capital Fund for OAS Fellowship, Scholarship, and Training Programs, and for the Capital Building Fund, and to request the CAAP to present the proposal to the Permanent Council for its approval.