Article 90.  Categories of Activity.  The proposed program-budget shall be presented in accordance with the following activity categories:

a.  Support Services for the Organs, Agencies, and Entities of the Organization:  Secretariat services, technical advisory services, logistic and administrative support, and legal services.

b.  Partnership for Development Services:  Activities designed to meet the direct service needs of the Member States in terms of partnership for development services, including training, research, studies, and dissemination of information on specialized subjects as well as any technical and operational support required for these services.

c.  General Support Services:  Activities in senior management, the supervision of programs and services, central and local administrative support, budgetary and financial programming, treasury and internal audit services, evaluation, personnel management, security, buildings, and infrastructure equipment.  

             The categories of activity may be modified or divided into subcategories based on the Secretary General’s recommendation, or at a request from the CAAP to the Secretary General.  The Secretary General shall present his proposal to the Permanent Council for its consideration and approval.  

            Article 91.  Objects of Expenditure.  The proposed program-budget, beginning with the proposed budget for the year 2000, shall also be presented in accordance with the following objects of expenditure:  

a.  Personnel[2]

Object 1  

a.  Recurring personnel expenses (such as the direct cost of all posts and positions filled by staff members).  

                           1.  career service

                           2.  non-career service  

b.  Overtime expenses  

Object 2  

Non-recurring personnel expenses (such as training, moving, repatriation and recruitment travel for staff members)[3]

b.  Other Expenditures

3.  Fellowships (including travel)

4.  Travel

5.  Documents

6.  Equipment and supplies

7.  Buildings and maintenance

8.  Performance contracts

9.  Other costs

              In matters related to the management of the various objects of expenditure (personnel, contracts, equipment and supplies, travel, and other costs such as fees, per diem allowances, etc.), the General Secretariat shall apply uniform criteria in all organs, agencies, and other entities whose expenses are included in the program-budget.  

             The objects of expenditures may be modified or divided into sub-objects of expenditure based on the Secretary General's recommendation, or at a request from the CAAP to the Secretary General.  The Secretary General shall present his proposal to the Permanent Council for its consideration and approval.  

            Article 92.  Content, Structure, and Purposes.[4] The proposed program-budget shall include all the activities and services for which General Secretariat is responsible in carrying out the programs adopted by the organs, subsidiary organs, agencies, and other entities of the Organization whose expenses should be included in the program-budget, with the respective proposed sources of financing as well as the mandates and resolutions in effect, maintaining the priorities indicated by them in adopting their programs.  

            The proposed program-budget shall be divided into chapters, programs, projects, and activities and classified by category of activity and object of expenditure in such a way as to:

a.  Allow effective control of budget execution in accordance with the decisions of the General Assembly;

b.  Enable each Council to review the programs, projects, and activities planned in its sphere of action and to identify all the specific sources of their financing, including the contributions of the countries in which projects or direct services are undertaken;

c.  Give explanations and analytical and comparative data on each program and project that clearly indicate the mandate, its objectives, its goals, the staff assigned, the cooperating institutions, if any, and the resources required;

d.  Indicate the comparative relation with the cost of the programs and projects of the preceding fiscal period; and

e.  Clearly establish those responsible for carrying out each program and project.  

            Article 93.  Content by Chapter and Program.  For each chapter and program, the proposed program-budget shall include:

a.  An organization chart;

b.  A comparative summary by object of expenditure showing the differences between the budget approved and the performance recorded in the previous three years, and the amounts requested for the proposed budget;

c.  A comparison, by grade, of the positions approved in the program-budget of the preceding fiscal period;

d.  Reference to the background and/or mandates that have given rise to them;

e.  An indication of whether they are of a permanent nature, are a continuation of those started in previous years, or are new programs or projects.  In any case, the length of these activities and their relation to the appropriations requested shall be specified; and

f.  The estimated total cost, by project, from beginning to end.  

            The General Secretariat shall endeavor to break down the programs into projects and activities to facilitate establishment of a direct relationship between the program-budget and the objectives, mandates, and activities the General Secretariat seeks to pursue to execute it.

            Article 94.  Information for Budget Formulation.  In order to facilitate the formulation of the budget, the General Secretariat shall:

a.  Maintain a database with the current mandates, which contains, among other things, the following information:  the beginning and end of the mandate, origin of the mandate, program area, organ responsible for its execution, etc.  This information must be used as a basis for determining actions to be undertaken by the General Secretariat during the budget year and should be made available to the Member States;

b.  Prepare, as far as possible, a classification of the mandates in each area, according to the level of priority the General Secretariat believes they should have;

c.  Have an analytical report on budgetary execution for the previous year, which defines the features of the execution of that budget and includes comments that will allow an overall improvement in the budget process, to optimize the distribution of resources.  That report on execution shall contain, among other things, an analysis of the monthly execution by area, total execution, cyclical performance of the budget, relationship between inflows and outflows, etc.; and

d.  Prepare a proposal for updating and changing the organizational and staff structures of the Organization with a view to bringing them into line with the mandates and priorities of the Organization.  Among other things, this proposal should analyze the capabilities of the existing staff in relation to the objectives and mandates of the different areas, define the staff policy changes expected to be implemented and their budgetary implications, and anticipate changes in the organizational structure and their implications for the budget and the objectives and mandates of the Organization.  

            Article 95.  Participation by the Various Dependencies of the General Secretariat in the Formulation of the Program-Budget.  The General Secretariat shall seek the participation of its dependencies in the formulation of the program-budget, taking into account each dependency's functions and within the framework of the procedures it deems appropriate.


[1].  Adopted by the General Assembly through resolution AG/RES. 123 (III-O/73) and amended through resolutions AG/RES. 248 (VI-O/76), AG/RES. 256 (VI-O/76), AG/RES. 257 (VI-O/76), AG/RES. 301 (VII-O/77), AG/RES. 359 (VIII-O/78), AG/RES. 404 (IX-O/79), AG/RES. 438 (IX-O/79), AG/RES. 479 (X-O/80), AG/RES. 671 (XIII-O/83), AG/RES. 672 (XIII-O/83), AG/RES. 731 (XIV-O/84), AG/RES. 791 (XV-O/85), AG/RES. 842 (XVI-O/86), AG/RES. 981 (XIX-O/89), AG/RES. 1036 (XX-O/90), AG/RES. 1137 (XXI-O/91), AG/RES. 1321 (XXV-O/95), AG/RES. 1322 (XXV-O/95), AG/RES. 1. (XXV-E/98), AG/RES. 3 (XXVI-E/99), AG/RES. 1725 (XXX-O/00), AG/RES. 1839 (XXXI-O/01), AG/RES. 1873 (XXXII-O/02), AG/RES. 1909 (XXXII-O/02), AG/RES. 2059 (XXXIV-O/04), AG/RES. 2156 (XXXV-O/05), AG/RES. 2157 (XXXV-O/05), AG/RES. 2302 (XXXVII-O/07), AG/RES. 2353 (XXXVII-O/07), AG/RES. 2754 (XLII-O/12), AG/RES. 2755 (XLII-O/12), AG/RES. 2756 (XLII-O/12), AG/RES. 2778 (XLIII-O/13), AG/RES. 2817 (XLIV-O/14), AG/RES. 1 (XLVIII-E/14), AG/RES. 2889 (XLVI-O/16), AG/RES. 1 (LII-E/17), AG/RES. 2923 (XLVIII-O/18), AG/RES. 1 (LIII-E/18), AG/RES. 2940 (XLIX-O/19), AG/RES. 2942 (XLIX-O/19), and by the Permanent Council through resolutions CP/RES. 652 (1033/95), CP/RES. 703 (1122/97), CP/RES. 761 (1217/99), CP/RES. 910 (1568/06), CP/RES. 919 (1597/07) and CP/RES. 1062 (2069/16) pursuant to the authority conferred by the General Assembly in resolutions AG/RES. 1319 (XXV-O/95), AG/RES. 1382 (XXVI-O/96), AG/RES. 1603 (XXVIII-O/98), AG/RES. 2257 (XXXVI-O/06) and AG/RES. 1 (L-E/15), respectively.

[2].  Paragraph amended by resolution AG/RES.1 (XXV-E/98) of the General Assembly, adopted at its twenty-fifth special session in November 1998.

[3].  These funds shall continue to be budgeted in Chapter 9 until the Secretariat completes the implementation of a cost center methodology.

[4].  The subdivision by activity may take effect once the necessary changes are made to the budgetary and financial systems.