VI. Financial situation 

VI.1 Funding Sources 

The IIN –a Specialized Organization of the OAS– is included in the Regular Fund of the OAS Program-Budget.  In 2004 the IIN budget amounted to US$ 1.266,600 as part of the US$ 76.000,000 of the total OAS Regular Fund, which represents 1.65 percent.  

In order to be able to comply with its roles and services, the IIN also applies resources resulting from Agreements concluded with governments, international organizations, NGOs and other donors, as well as financial agencies. As to 1^st January, 2004 the IIN Specific Funds managed by the OAS amounted to US$ 445,658.95.  Counterpart resources in projects accomplished with the IIN technical assistance in 2004 were similar to 2003 and approximately amounted to U$S 1.900,000. 

VI.2 Budgetary Allocation and Projection of the Regular Fund

VI.3 Budgetary Execution of the Regular Fund and Specific Funds by Area and Program

VI.5 Projected Budget for 2005

VI.6 Interpretation and Projections 

In our previous Annual Report we noted the reorganization –and consequent downsizing–undertaken by the IIN in 2001 for the purpose of achieving a greater budgetary balance between operational and staff-related expenses.  

Nevertheless, and in spite of the institutional efforts made, the actual budgetary situation in 2004 as well as the projections for 2005 allow for detecting the reappearance of the imbalance between the operational and staff budgets that had been solved in conformity with the guidelines set by the General Secretariat, at levels similar to those recorded in 2001 (see Table IV.2, Budgetary Allocation and Projections of the Regular Fund.)  

It should be emphasized that such imbalance did not respond to an increase in staff members but has been the direct consequence of cost of living adjustments introduced in the salaries of the personnel of the General Secretariat in detriment of the allocations to the operational budget, all of which worsened due to the financial crisis experienced by the Organization, particularly as from 2003.     

Although in 2004 the specific funds allowed for developing multiple activities (44 percent of all operations were executed with specific funds), the shortage of financial resources from the Regular Fund creates an imbalance in the IIN regular activities to be performed in compliance with the mandates set by the Member states.  

Notwithstanding the ongoing proceedings for specific fund raising, the IIN requested additional funds from the 2005 Program-Budget amounting to US$ 329,700 (see Appendix II of the Revised 2005 Program-Budget: List of Financial Resources Additional to the Regular Fund, identified by areas, in order to cover immediate program needs, CP/doc.3970/04). 

These additional resources were requested, along the same lines expressed by the Acting Secretary General in his message to the Permanent Council, “to perform tasks at a modest but effective level” (CP/doc3970/04 page 4). 

The implementation of the National Child System in the Member states, the validation of the Inter-American Program of Cooperation on the International Abduction of Children, the Child Observatory for the English-speaking Caribbean are, among others, actions to be performed by the IIN in the immediate term in compliance with its mandates, but it will not be possible to do so without the modest additional resources that were requested, in spite of any IIN effort made according to its current capacity.