THE GENERAL ASSEMBLY, 

HAVING SEEN: 

The proposed program-budget of the Organization for fiscal year 2007, presented by the Secretary General on April 12, 2006 (AG/CP/doc.707/06)

The report of the Preparatory Committee on the proposed program-budget of the Organization for 2007 (AG/CP/doc.716/06); and

The Annual Report of the Board of External Auditors (JAE/doc.36/06), presented to the Permanent Council on May 10, 2006;

CONSIDERING:

That AG/RES. 1 (XXXI-E/06) instructed the General Secretariat to submit to the Preparatory Committee a proposed program-budget for the Regular Fund for 2007, at a level for which the Secretary General can demonstrate available financing, but not to exceed US$81.5 million; 

That, in accordance with Articles 54 and 55 of the Charter of the Organization of American States (OAS), the General Assembly approves the program-budget of the Organization and establishes the bases for setting the quota that each government is to contribute to the maintenance of the Organization, taking into account the ability to pay of the respective countries and their determination to contribute in an equitable manner; 

That the Organization is mandated to give preference to priorities defined by its members, within the limits of its available resources; and 

That, pursuant to the salary policy of parity with the United Nations established in resolution AG/RES. 1319 (XXV-O/95) and Article 40 of the General Standards to Govern the Operations of the General Secretariat of the Organization of American States (General Standards), the Secretary General adjusted the General Secretariat’s 2006 net basic salary scales, and increased the post adjustment for the Washington, D.C., area; 

NOTING: 

            That extensive documentation already exists with regard to the OAS personnel policy and the salary of policy parity with the United Nations; and 

That an increase in object 1, coupled with other mandatory increases in other objects of expenditure could, bearing in mind the need to demonstrate available financing, require a revision of the 2007 program-budget in order to ensure that the needs of the Organization are met; 

BEARING IN MIND: 

That on December 14, 2005, Secretary General Jose Miguel Insulza issued Executive Order No. 05-13, Restructuring of the General Secretariat, which was subsequently revised on February 14, 2006, Executive Order No. 05-13 Rev. 1; 

That Article 120 of the OAS Charter stipulates that in selecting the personnel of the General Secretariat, first consideration shall be given to efficiency, competence, and integrity; but at the same time, in the recruitment of personnel of all ranks, importance shall be given to the necessity of obtaining as wide a geographic representation as possible; 

            That the Secretary General is urged to continue his work to establish policies of gender equality in the workplace and to make each manager accountable for the application of these policies; and 

            That Article 72 (b) of the General Standards stipulates that the amount of the Reserve Subfund shall be 30 percent of the total of the annual quotas of the member states, that this amount shall be reached through crediting to this Subfund the annual income in excess of the obligations and expenditures of the Operations Subfund, and that to the extent that the Subfund exceeds 30 percent of the total of the annual quotas of the member states, the excess shall be available for any purposes approved by the General Assembly; 

            HAVING SEEN the Audit of Accounts and Financial Statements for the Years ended December 31, 2005 and 2004, which were prepared by the Board of External Auditors; the Preliminary Report of the Inspector General of the OAS to the Member States regarding the Internal Audit Investigation of the Office of Scholarships, Training, and Information Technology for Human Development and the Report of the Scholarships Task Force (CEPCIDI/doc.727/06); and the reports presented by the Director of the Department of Human Development (CP/CAAP-2838/06 corr. 2 and CP/CAAP-2840/06); 

CONSIDERING:

             That in its annual report the Board of External Auditors recommended that OAS General Secretariat ensure that the internal policies and procedures related to the granting of scholarships are appropriate and that, in addition, it develop and implement a process to ensure that all internal policies related to scholarship selection and approval are adhered to and adequately documented; and 

            That the Secretary General has pledged to restore transparency and credibility to the scholarship selection and awards process, as well as to reestablish a firm control over financial, budgetary, and administrative matters, and to reclaim ownership for the OAS of one of the best and well-known scholarship programs in the Hemisphere; and  

TAKING NOTE: 

That, at its thirty-first special session, the General Assembly, through resolution AG/RES. 1 (XXXI-E/06), approved the transitional quota scale for the OAS Regular Fund to finance the program-budget for the years 2007 and 2008; and 

That said resolution instructed the Permanent Council to continue considering a draft methodology for assessing quotas to the member states–one that will take into account the criteria established in Article 55 of the OAS Charter and current data on the ability to pay of the member countries; and to present to the General Assembly, at its thirty-seventh regular session, its conclusions and recommendations for the adoption of a revised, definitive scale of quota assessments for 2009 and subsequent years, 

RESOLVES: 

I.          BUDGET APPROPRIATIONS 

1.                   To approve and authorize the program-budget of the Organization for the fiscal period from January 1 through December 31, 2007, financed by the following funds at the corresponding levels: 

2007                        

(US$1,000)                            

a.         Regular Fund                                                                            81,500.0

b.         Special Multilateral Fund of the Inter-American
            Council for Integral Development (FEMCIDI)                                   1,270.1

                                                                                                                        82,770.1

2.                  To approve the specific levels of appropriations, by chapter, program, and subprogram, with the recommendations, instructions, or mandates as detailed below:

II.        FINANCING OF THE BUDGET APPROPRIATIONS 

1.                  To set the quotas with which the member states will finance the program-budget of the Organization for the year 2007 corresponding to the Regular Fund, in accordance with resolution AG/RES. 1 (XXXI-E/06) and the decision of January 19, 1955 (doc. C-i-269) on income tax reimbursements, using the scale and amounts shown in Table B, “Regular Fund Quota Assessments for 2007.” 

2.                  To establish the Regular Fund budget level for 2007 at US$81.5 million, in accordance with resolution AG/RES. 1 (XXXI-E/06), and to finance it as follows: 

i.          Contributions of member states in the form of Regular Fund quota payments of $75,894,000, apportioned according to the scale of quota assessments adopted in resolution AG/RES. 1 (XXXI-E/06);

ii.         Commitments by member states that, notwithstanding the decrease in their quota percentages under resolution AG/RES. 1 (XXXI-E/06), have decided not to reduce the nominal amount of the quota assessments set for 2006;

iii.        FEMCIDI contribution of $190,500 to the Regular Fund for technical supervision and administrative support, in keeping with Article 79 of the General Standards, which, according to the FEMCIDI Statutes, must be up to 15 percent of the amount approved for 2007 programming to be executed in 2008;

iv.        Income of $2,532,300 for technical supervision and administrative support from trust and specific funds; and

v.         Other income of $1,500,000 including, inter alia, interest, rents, and repayments.

3.                  The amounts cited in this resolution with respect to the specific funds are estimates and do not constitute any obligation for donors.

4.                  To authorize an appropriation of $5,492,800 to the General Secretariat for recurrent expenses related to building management and maintenance.  Of this amount, $5,180,800 will be financed by the Regular Fund, under Subprogram 91D - Building Management and Maintenance, and $312,000 by resources from the Capital Building Fund, to compensate for an increase in other subprograms.

III.       GENERAL PROVISIONS

A.        BUDGETARY

1.                  Human resources

a.         To request the Secretariat to assign, reassign, or restore, as the case may be, the positions listed below, within the same chapters and without incurring additional budgetary costs, with personnel that possess the requisite experience, expertise, and qualifications for the performance of the respective functions:

P4 – National Office Director in Costa Rica (subprogram 21E)

P4 – National Office Director in Paraguay (subprogram 21E)

P4 – Support for the Chair of the Permanent Council (Subprogram 21A)

P3 – Post in CIM (Subprogram 21I)

P4 – Support for the Secretariat for Multidimensional Security (Subprogram 51B)

G6 – Support for the CICTE Secretariat (Subprogram 51E)

P4 – Department for the Promotion of Democracy (Subprogram 61C)

P5 – Tourism specialist in the Department of Trade, Tourism, and Competitiveness (Subprogram 71E)

P4 – Department of Sustainable Development (Subprogram 71F)

b.                   Performance contracts (CPRs)

i.          To instruct the General Secretariat to submit to the Permanent Council semiannual reports on all the performance contracts (CPRs) in accordance with Article 130 of the General Standards.

ii.         To request the Permanent Council to examine, through the Committee on Administrative and Budgetary Affairs (CAAP), the Inspector General’s report on CPRs and make the corresponding recommendations to the Secretary General.

c.                   Trust positions

To extend the mandates in resolution AG/RES. 1839 (XXXI-O/01) for the Secretary General to study the General Secretariat’s policies on trust positions, and for the Permanent Council to consider recommendations for any necessary changes to the General Standards.

d.                   Geographic representation

To urge the Secretary General to develop, with technical assistance from the Department of Human Resources and all people involved in the hiring and selection process, a human resource policy that fully takes into account the principle of geographic representation in accordance with Article 120 of the Charter of the Organization of American States, and to present a report to the Permanent Council by January 30, 2007.

e.                   Gender equality

To urge the Secretary General to redouble his efforts to achieve, as a matter of priority, the goal of having women, including indigenous women, occupy 50 percent of posts at each grade level within the OAS organs, agencies, and entities, particularly at the P-5 grade level and above, in order to achieve gender balance at all levels of the OAS, bearing in mind the criterion of geographic distribution in professional positions.

To urge the Secretary General to continue his work to establish policies of gender equality in the workplace and to make each manager accountable for the application of these policies.

f.                    Performance evaluation

To request the Secretary General, for the purpose of improving evaluation and accountability in the General Secretariat’s personnel management and in accordance with Article 39 of the General Standards and Rule 105.9 of the Staff Rules, to put into practice an effective performance evaluation system that includes:  establishing performance goals and standards, facilitating and promoting greater efficiency in the performance of functions, and systematizing performance evaluation.

g.                   Workforce plan

To instruct the Secretary General to analyze the long-term (e.g., 3-5 years) staffing requirements of the General Secretariat in view of the programmatic vision of current mandates, the new structure of the General Secretariat, and projected retirement and other departures of current staff, and develop a workforce plan that will allow the Secretariat to identify:

i.          Skills gaps and surpluses;

ii.         The most appropriate recruitment/hiring instruments to meet projected needs (long-term versus short-term contracting, CPRs, etc.); and

iii.        Suggested mechanisms for responding to staffing surpluses and deficiencies in accordance with the Organization’s programmatic priorities and vision.

To instruct the General Secretariat to present a report to the Permanent Council by October 31, 2006.

h.                   Post audits

To instruct the General Secretariat to perform a post audit on any position whose funding source is transferred from specific funds to the Regular Fund.  That audit by the Department of Human Resources must take place before the Regular Fund assumes responsibility for payment of that salary.  The post audit will determine a salary that is commensurate with the level, competency, and duties incurred by the new post, independent of the duties, title, and salary of the previous post.  This practice should be implemented by September 2006.

i.                     Personnel policies

To instruct the General Secretariat to present (i) a legal history of salary parity policy, and (ii) to submit recommendations with regard to personnel policy and its sustainability, in light of new mandates, the recent restructuring of the General Secretariat, and the financial status of the OAS.

2.                  Scale of quota assessments

a.         To extend the mandate adopted by the thirty-first special session of the General Assembly through AG/RES. 1 (XXXI-E/06), instructing the Permanent Council to continue considering a draft methodology for assessing quotas to the member states–one that will take into account the criteria established in Article 55 of the OAS Charter and current data on the ability to pay of the member countries; and to present to the General Assembly, at its thirty-seventh regular session, its conclusions and recommendations for the adoption of a revised, definitive scale of quota assessments for 2009 and subsequent years.

b.         To request the Secretary General to convene in the second half of 2006 the group of experts that will begin consideration of the methodology for determining the new scale of member state quota assessments and to present a report thereon to the Permanent Council.

3.                  Fund for Building Improvement, Maintenance Services, and Other Urgent Needs

a.         To instruct the Secretary General to present a fundraising strategy for the building improvement and maintenance fund by December 2006.

b.         To urge member states, permanent observers, and other donors to contribute, as defined in Article 74 of the General Standards, to the Fund for Building Improvement, Maintenance Services, and Other Urgent Needs, established through resolution AG/RES. 2157 (XXXV-O/05).

c.          To instruct the Secretary General to report quarterly to the Permanent Council on the income and expenditures of this special fund.

d.          To instruct the General Secretariat to review the status and the inventory of the collection of the Art Museum of the Americas and to report to the CAAP by February 2007 with suggestions for the enhancing of the future role of the Museum within the OAS.

4.         Offices of the General Secretariat in the Member States

a.         To request the Secretary General to ensure that each of the Offices of the General Secretariat in the Member States is appropriately staffed and funded and to report to the Permanent Council on both progress and limitations in achieving this objective.

b.         To request the General Secretariat to submit to the Permanent Council by December 1 of each year a report containing a strategy and annual work plan for each Office. The report should comply with uniform guidelines established by the Secretary General, and should report on progress made in achieving the preceding year’s objectives.  In addition, it should lay out the objectives for the coming year.  Where appropriate, the report should address any in-country partnership opportunities that may enhance OAS objectives.

c.         To authorize the OAS General Secretariat to examine the feasibility of entering into partnership agreements with other international organizations which would permit the Offices of the General Secretariat in the Member States to offer services and engage in cooperative endeavors with those international organizations, and to collect fees for these services.

5.         Scholarships

1.         i.          To establish an immediate and temporary pause in the awarding of new 2006 graduate (PRA) and undergraduate (SPECAF) scholarships. This temporary pause shall remain in effect until the Inter-American Council for Integral Development (CIDI) and the Permanent Council have approved, in a joint meeting, the new scholarship mechanism.

ii.         To instruct the General Secretariat through the Secretariat of the Human Development Fund Committee to submit to the Permanent Executive Committee of the Inter-American Council for Integral Development (CEPCIDI) for its consideration, as soon as possible, but by no later than August 15, 2006, a proposal for management of the scholarship program in strict observance of rules on competitiveness, transparency, and ethics, and to recommend to CEPCIDI that it consider and approve the changes that need to be made to the Manual of Procedures of Scholarships and Training Programs of the OAS, including the establishment of a cap on individual yearly tuition scholarships.

iii.         To instruct the General Secretariat to consider measures and objective criteria for the management and operation of the OAS scholarship program designed to enhance transparency and accountability in the operation of the program, in particular, by providing semiannual reports to the OAS governing bodies that include complete and detailed information on scholarships awards, which include, inter alia, the full name and the nationality of beneficiaries, types of scholarships, costs, and the names and locations of institutions.

iv.         To recommend to CEPCIDI that it examine and approve enhanced mechanisms for ensuring that objective criteria are applied in the selection process, taking into account the recommendations set forth in the Appendix to this resolution.

v.         Once the pause established by this resolution has been lifted, to authorize the General Secretariat to use unobligated and unspent 2006 appropriations for new graduate and undergraduate fellowships in 2007 and in subsequent years.

2.         To authorize the General Secretariat to deposit in the Capital Fund for OAS Fellowship, Scholarship, and Training Programs under Article 18 of the Statutes of the Inter-American Agency for Cooperation and Development (IACD) any unused or deobligated funds from scholarships under object 3 to the extent permitted under Article 99 of the General Standards, with the exception of unobligated funds in accordance with paragraph v above.  In implementing this mandate, the General Secretariat shall consult with the IACD Management Board and CEPCIDI and shall report quarterly to CEPCIDI and to the Permanent Council.

6.         Payment of quotas

a.         To encourage member state governments to continue to pay their quotas and their arrears pursuant to resolution AG/RES. 1757 (XXX-O/00), “Measures to Encourage the Timely Payment of Quotas,” as modified by resolution AG/RES. 2157 (XXXV-O/05).

b.         To extend the mandate of the Permanent Council to evaluate the existing measures and to consider new measures aimed at encouraging the timely payment of quotas, and to complete its report thereon for the General Assembly at its thirty-seventh regular session.

7.         Recovery of indirect costs

1.         To extend the mandate to the Inspector General received through resolution AG/RES. 2157 (XXXV-O/05):

i.          To review whether the method of charging overhead is consistent and reasonable throughout the Secretariat in relation to the services provided, taking into consideration the interest generated by specific funds;

ii.         To determine if there is a more cost-effective manner of establishing costs charged to specific fund projects; and

iii.        To finalize her audit on overhead charges by the end of 2006.

2.         To instruct the Secretary General to:

a.         Analyze the cost recovery policy for technical supervision and administrative support of all funds administered by the General Secretariat, taking into account the Inspector General’s audit on overhead charges, and present a report to the Permanent Council prior to September 30, 2006, for consideration, that proposes amendments to the General Standards as required, so as to reflect a new cost recovery policy that is coherent, consistent, and reasonable; and

b.          Submit semiannual reports to the Permanent Council on projects financed by specific funds, which reports shall contain the following information:

i.                  Income from overhead cost recovery (administrative support and technical supervision costs);

ii.                 Interest income earned; and

iii.               The percentage of interest income earned and applied toward overhead charges.