CP/RES. 987 (1814/11)

USE OF UNOBLIGATED UNPROGRAMMED BALANCES OF SPECIFIC
FUNDS, ESTABLISHED BY MEMBER STATES,
TO COVER REGULAR FUND SHORTFALLS

(Adopted at its session held on August 31, 2011)

THE PERMANENT COUNCIL OF THE ORGANIZATION OF AMERICAN STATES,

HAVING SEEN, the documents entitled “Regular Fund Cash Flow: Liquidity Risk Assessment” [CAAP/GT/RVPP-104/11 (April 8, 2011)] and “Funds and Accounts Administered by the General Secretariat of the Organization of American States” [CAAP/GT/RVPP-104/11 add. 1 (April 21, 2011)],

CONSIDERING:

That the General Secretariat anticipates temporary cash shortfalls in the Regular Fund for the foreseeable future, and that there are insufficient resources in the Reserve Sub-fund of the Regular Fund to cover those shortfalls;

That the General Secretariat monitors and advises the member states of the likelihood of those shortfalls by way of its “Liquidity Risk Assessment Quarterly Reports;”

That the General Secretariat and several member states have proposed the use of unobligated unprogrammed available cash balances in those specific funds established by them, to cover the shortfall for periods of up to 60 days, provided that the payment plans for the receipt of Regular Fund quotas show that the Secretariat will be able to return any cash balances so used to the corresponding specific funds by the end of each of those 60-day periods; and

That member states whose specific funds will be used for the above-stated purpose have been duly informed of this proposal,

RESOLVES:

1. To authorize the General Secretariat to use the unobligated unprogrammed available cash balances in specific funds established by member states, to cover temporary shortfalls in the Regular Fund for periods of up to a maximum of 60 days, provided that the payment plans for payment of the Regular Fund quotas and any Regular Fund arrearages show that the Secretariat will be able to return any cash balances with interest so used to the corresponding specific funds by the end of each of those 60-day periods.

2. Before any such use of specific funds established by a member state is made, the General Secretariat shall obtain express authorization from that member state.

3. To request that the General Secretariat present options to the Committee on Budgetary and Administrative Affairs to address cash flow shortages regularly encountered by the General Secretariat due to the lack of provision for cash reserves in the Regular Fund.

4. To instruct the General Secretariat to report on the implementation of this resolution in its Liquidity Risk Assessment Quarterly Reports to the member states and to the Permanent Council’s Committee on Budgetary and Administrative Affairs.