Ministers’ Deputies

    CM Documents

    CM(2011)69       13 May 20111



    1117 Meeting, 29 June 2011

    11 Administration and logistics

    11.6 Meeting report of the Budget Committee – May 2011 session

    Item to be prepared by the GR-PBA on 19 May and 17 June 2011



    1. The Budget Committee met in Strasbourg on 3 – 6 May 2011.

    2. The agenda of the meeting appears at Appendix I and the list of participants at Appendix II.

    I. Opening of the meeting

    3. The Director General of Administration opened the meeting. He welcomed the members of the Committee and in particular the new members. He informed the Committee about developments since the last meeting.

    II. Election of the Chair and Vice-Chair

    4. Mr Åke HJALMARSSON was elected Chair and Ms Joycelyn BUCHAN Vice-Chair for 2011.

    III. Adoption of the agenda

    5. The Committee adopted the Agenda as set out in Appendix I.

    IV. Examination of the reports and minutes of the prior meetings

    6. The Committee took note of the report of the October 2010 meeting and the minutes of the September and October 2010 meetings. It noted that as from this meeting on, no edited minutes would be produced. The proceedings would be recorded and made available to members of the Committee. A verbatim record of proceedings would also be made on a trial basis.

    V. Programme and Budget 2011 – Presentation of changes made by the Deputies to the draft before its approval

    7. The Committee took note of the changes to the draft programme and budget which had been made by the Committee of Ministers in the course of the budgetary debate.

    VI. Implementation of the 2010 Programme and Budget

    8. The Committee considered the implementation of the 2010 Programme and Budget.

    9. The Committee welcomed the new format of the Progress Review Report and noted that 2010 was a transitional year as the progress review report was presented using the structure of the 2011 programme and budget.

    10. The Committee noted that the budgetary management accounts for 2010 included explanations of variances in line with IPSAS 24 as agreed with the External Auditor.

    11. The Committee recommended that for 2011, explanations of variances in the progress review report should be included using the same criteria adopted for the budgetary management accounts in line with IPSAS 24 and as agreed with the External Auditor.

    12. The Committee noted that the credit balance on the ordinary budget for 2010 amounted to €1.7M and that this was considerably higher than the amount for 2009. It took note that this was due to precautionary measures taken in the course of the financial year leading to the freezing of appropriations, in order to prevent a budget overspend in the light of the forecasts of expenditure to the end of the year by major administrative entities which suggested that the negative reserve would not be covered.

    13. The Committee expected that the situation would improve in future years with the complete suppression of the negative reserve in the next biennium and through closer follow-up of the implementation of the programme and the budget which now had been put under the single authority of the Department of Programme and Budget.

    14. The Committee noted that it was proposed to return the credit balance for 2010 on the Ordinary Budget to member states.

    15. Concerning the presentation of partial agreements in the progress review report the Committee recommended that financial information concerning receipts should be included, especially for the EDQM.

    The Committee noted with satisfaction the development of the expenditure and receipts of the EDQM and that its financial situation was sound at the end of 2010.

    VII. Programme and Budget 2012-2013 – Examination of the priorities of the Secretary General

    16. The Committee held an exchange of views with the Secretariat on the priorities for 2012-2013.

    17. The Committee welcomed the measures introduced to contain staff costs and encouraged the Secretary General to continue his efforts to control the salary costs of the Organisation. The Committee noted the importance of further reviewing certain staff allowances (e.g. expatriation).

    18. The Committee noted that the Secretariat expected that in the medium term the overall level of obligatory adjustments would have a marginal effect on the budget of each year.

    19. The Committee noted that it was currently proposed to suppress 19 posts/positions over the period of the biennium but was of the opinion that it may be possible to make further staff economies as a result of the review of intergovernmental structures and the restructuring of the Secretariat later in the year.

    20. The Committee noted that, in accordance with a recommendation from the external auditors, there was a change in the way the budgets of the Organisation were presented for the biennium in that the employers pension costs relating to staff were included in a similar way in all budgets, including the Ordinary Budget.

    21. The Committee examined the effect that this would have on member states contributions and it noted that this policy would result in an increase in member states contributions to the Ordinary Budget and an increase in member states contributions to Partial Agreements budgets (resulting mainly from a higher fixed sum contribution rate). There would be an equivalent decrease in member states contributions to the Pension Reserve Fund, and that this would have, overall, a neutral effect on the total of member states’ contributions to the budgets of the organisation as shown in the table in Appendix III to this report.

    22. The Committee welcomed the fact that the Secretary General was proposing to eliminate the negative reserve by the end of 2013 and that he was not proposing to use credit balances from previous years budgets to finance the budgets for 2012-2013.

    23. The Committee welcomed the detailed explanation of variances at the level of programme line included in Appendix V of the priorities document, however the Committee would have appreciated a summary table of major savings and increases in expenditure.

    24. The Committee noted that the proposal of the Secretariat, contained in document CM(2011)79 (examined by the Committee with the document reference P-Bud(2011)12), concerning the inflation adjustment to be applied to the budget for 2012 and future years, was to continue with the existing method of calculation which had been used since 2008.

    25. The Committee welcomed the proposed system as it was both simple and in line with existing practise. The Committee stressed that it was important that the Organisation had an agreed methodology for the calculation of the inflation adjustment.

    26. While acknowledging that different types of expenditure within the budget were subject to different inflationary pressures, the Committee noted that it was incumbent upon the Secretary General to manage this situation within the overall budgetary envelope resulting from the application of the methodology.

    27. The Committee noted that the application of the method for the calculation of the inflation adjustment would result in an adjustment for 2012 of 1.8% and that the Secretary General intended to propose that this figure be applied to member states contributions. For the Ordinary Budget this would mean total member states contributions amounting to € 233 598 900.

    28. Whilst the Committee recognised the importance of an agreed method, it recalled that the existence of such a method did not imply its automatic application and that the decision on the total amount of the budget and member states contributions for any given year is the sole responsibility of the Committee of Ministers.

    29. Accordingly the Committee of Ministers always has the possibility to decide upon the size of the budget regardless of what an inflation adjustment might indicate. The Committee of Ministers could decide that the budget should be larger than zero real growth in order to provide more resources to additional high priority areas. The Committee of Ministers could also decide that the budget should be smaller than what follows from the application of zero real growth. The Committee of Ministers could also decide that the budget should be €1.0M or € 2.0M lower than the amount calculated from the application of zero real growth. The Committee of Ministers could also apply zero nominal growth – i.e. to leave the budget totals at the same nominal level.

    30. Reasons for the latter options could be strong efficiency gains within the Council of Europe or weak public finances in member states.

    31. Regarding Pension costs, the Committee recalled its concern about the burden of the pension costs of the organisation on member states and in this respect it recalled its observations and recommendations to the Committee of Ministers to introduce a “third” pension scheme.

    32. These are contained in the report at its September 2009 meeting (see document CM(2009)131) and read as follows:

        “52. The cost of the current pension system will increase year by year for the foreseeable future in real terms, therefore it was necessary for the Organisation and member states to seek ways to control the future cost of pension provision.

        53. In the medium term, that is 3-5 years, it would be feasible to review the different elements of the present pension systems in order to reduce the costs of the member states. This could be done by reviewing benefits and contribution rates related to the current pension systems in order to establish the basis for the creation of a new pension scheme for future entrants.

        54. Specifically the following aspects should be reviewed:

        Ø The accumulation rate; due to the demographic development the accumulation period for achieving a full pension could be increased from 35 to 40 years.

        Ø The distribution of the cost between employee and employer; the split could be revised to be more evenly divided.

        Ø The age of retirement without reduction of benefits could be raised by at least two years.

        Ø The accumulation rate applied should be the same for all scheme members, with no minimum rates being applied.

        Ø The legal possibility to build into any future scheme, additional flexibility for the organisation to make changes to the level of benefits after consultation in certain areas of the scheme (whilst protecting a certain basic level of benefits).

        Ø The facilitation of the transfer of acquired pension rights from national schemes and from previous pension schemes and cumulative pension rights.

        55. The issue of pension costs will be a continual issue for the organisation in the long term, therefore additional feasibility studies should be carried out in respect of possible fundamental changes to all existing pension schemes within the next 10-15 years. Such studies should include:

        Ø Actuarial studies of the long term costs of any suggested solutions.

        Ø Cost and ways of the possible introduction of a contribution defined system.

        Ø The implications for and cost of acquired rights if existing pension schemes are closed to new members.”The implications for and cost of acquired rights if existing pension schemes are closed to current members.

        Ø If not already implemented, the legal possibility to build into any future scheme, additional flexibility for the organisation to make changes to the level of benefits after consultation in certain areas of the scheme (whilst protecting a certain basic level of benefits).

        Ø The possibility of providing a two part scheme with a lower compulsory level of benefit providing a basic retirement pension and with the opportunity of co financed (e.g. 50:50) voluntary additional contributions to obtain additional benefits within prescribed limits.”

    33. In this respect, the Committee noted that the Secretariat provided the GR-PBA back in 2009 with detailed information and alternatives in respect of the possible creation of a third pension scheme and urged the GR-PBA to reconsider the matter in the near future.

    VIII. Draft Revised Financial Regulations and introduction of a Biennial Budget

    34. The Committee examined the draft revised Financial Regulations. (P-BUD(2011)13/CM(2011)25

    (18 April 2011)).

    35. The Committee noted the relevant decisions of the Committee of Ministers and recalled the written consultation on the preliminary draft revised Financial Regulations on the basis of which the Secretariat prepared a revised draft. The Committee examined the revised draft and proposed a number of amendments as set out in Appendix IV.

    36. The Secretariat informed the Budget Committee that it agreed with the amendments proposed by the Committee concerning Art.2bis§1 and 2, Art.4§3, Art.7, Art.8§2, Art.11§1, Art.12§1 and 5, Art.16§1, Art.17, Art.19§1, 2 and 3, Art.24, Art.24bis, Art.26, Art.27§2[new], Art.28, Art.29§6 and 8, Art.30§1, Art.30bis, Art.31§2, Art.31bis§1[New], 2 and 3, Art.40§1, Art.54, Art.67§1, Art.68bis§ 1 and 2, Art.71§5, Art.72§3, and Art.74§2 and that it would revise the draft accordingly and submit it to the Committee of Ministers with a view to approval.

    37. However the Secretariat could not agree to the proposed amendments by the Budget Committee concerning Art.23, Art.27§1 and 3 (in part), and Art.31§1 as they are not in line with the decisions already taken by the Committee of Ministers which state that “ [the Deputies] agreed in principle to the policy orientations regarding the biennial Programme and Budget, as they appear in document SG/Inf(2011)3 rev, noting that the detailed modalities for the adoption of the Budget for the second year would be examined in the framework of the adoption of the revised Financial Regulations […]” (cf. CM/Del/Dec(2011)1106/1.6 of 18 February 2011).

    38. The Budget Committee wishes to draw the attention of the Committee of Ministers to the following explanations concerning the changes proposed by the Budget Committee regarding articles 23 and 27 and article 31:

    Article 23 and 27:

    39. The Programme and Budget is one document where programmes and resources are integrated, there is no separate financial budget part that could be indentified and separately approved.

    40. The programme lines are defined by both expected results and resources, therefore the integral programme and budget for a financial year must be approved simultaneously.

    41. Consequently the Committee proposes that before the biennium the Committee of Ministers shall approve the programme and budget for the first year and approve the programme and budget for the second year on a provisional basis.

    42. During the first year the Committee of Ministers shall approve – finally - the programme and budget for the second year.

    Article 31:

    43. The issue of transfers of appropriations between programme lines relates to the distribution of budgetary powers between the political body – the Committee of Ministers – and the Executive - the Secretary General.

    44. The programme and budget is approved by the Committee of Ministers at the level of programme lines. The programme and budget priorities of the Committee of Ministers are reflected in the resources allocated to each programme line.

    45. The Secretary General must have some room for manoeuvre during the implementation of the programme and budget, however the authority the Secretary General is given in the secretariats draft Financial Regulations is - in the view of the Committee - too wide and wider than is the practise in other international organisations.

    46. They would allow the Secretary General to make transfers of such a magnitude that they could disrupt the political priorities of the Committee of Ministers

    47. Therefore the Committee - as an advisory body to the Committee of Ministers – proposes more restrictive rules that the Committee of Ministers could consider in order to maintain its leading and sovereign role.

    IX. Revision of the 2011 Budget of the Enlarged Partial Agreement on the Co-operation Group to combat drug abuse and illicit trafficking in drugs (Pompidou Group)

    48. The Committee took note of the proposed changes to the 2011 Budget contained in document CM(2011)80 (examined by the Committee with the document reference P-Bud(2011)9) resulting from the accession of Serbia and agreed to recommend them, recalling that the proposal was in line with standard practice.

    X. Information in respect of the implementation of the Investment Programme

    49. The Committee took note of the proposed changes to the investment programme for 2011.

    XI. Other business

    50. None

    XII. Examination and approval of the meeting report

    51. The Committee examined and approved its meeting report.

    Date of the next meeting

    52. The budgetary calendar adopted by the Committee of Ministers foresaw the examination by the Budget Committee of the draft 2012-2013 Programme and budget at a meeting of the Committee from
    13-16 September. In order that the Committee can meet with the GR-PBA at its meeting of 22 September, the Committee decided to move the dates of its meeting to 19-23 September 2011.

    Appendix I

    BUDGET COMMITTEE

    Strasbourg, 3-6 May 2011

    Room 7, Palais de l’Europe

    ANNOTATED AGENDA


    Item 1 Opening of the meeting

    Item 2 Election of the Chair and Vice-Chair

          · P-Bud(2011)4 – Election of the Chair and Vice-Chair

          The Committee is invited to take note of the information in P-Bud(2011)4 in respect of the procedure for the election of the Chair and Vice-Chair and to proceed to the election.

    Item 3 Adoption of the Agenda

          · P-Bud(2011)3prov – Draft Agenda

    Item 4 Examination of the reports and minutes of the prior meetings

          · CM(2010)137 – Meeting report of the Budget Committee – October 2010 session

          · P-Bud(2010)CR2 – Budget Committee – Minutes of the September 2010 session

          · P-Bud(2010)CR3 – Budget Committee – Minutes of the October 2010 session

          · P-Bud(2011)11 – Decisions of the Committee of Ministers concerning the Budget Committee

          The Committee is invited to approve the minutes of the September Meeting.

    Item 5 Programme and Budget 2011 - Presentation of changes made by the Deputies to the draft before its approval

          · P-Bud(2011)5 – Programme and Budget 2011 – Summary of changes made by the Deputies to the draft before its approval

          · P-Bud(2011)11 – Decisions of the Committee of Ministers concerning the Budget Committee

          The Committee is invited to take note of the changes made to the draft budget by the Committee of Ministers when adopting the 2011 Programme and Budget.

    Item 6 Implementation of the 2010 Programme and Budget

          · CM/Inf(2011)9 rev – Council of Europe Progress Review Report 2010

          · DPFL(2011)174 – Progress Review Report 2010: Results Based Budgeting (RBB) 2010

          · P-Bud(2011)6– Budgetary Management Accounts 2010 Ordinary Budget

          · P-Bud(2011)7– Budgetary Management Accounts 2010 Partial Agreements

          · P-Bud(2011)11 – Decisions of the Committee of Ministers concerning the Budget Committee

          The Budget Committee is invited to take note of the information provided and provide any comments there on.

    Item 7 Programme and Budget 2012-2013 – Examination of the priorities of the Secretary General

          · CM(2011)48 rev – Priorities for 2012-2013 and their budgetary implications

          · SG/Inf(2011)9 rev – Reform, Proposed new set-up for intergovernmental structures, proposal by the Secretary General

          · CM(2011)2 – Programme and Budget 2012-2013: Calendar

          · P-Bud(2011)11 – Decisions of the Committee of Ministers concerning the Budget Committee

          The Committee is invited to consider the priorities of the Secretary General for the Programme and Budget 2012-2013 and their budgetary implications and provide any comments there on.

    Item 8 Draft Revised Financial Regulations and introduction of a Biennial Budget

          · CM(2011)25 (14 March 2011) – Draft revised Financial Regulations and Supplementary Provisions of the Council of Europe

          · P-Bud(2011)8 – Compilation of comments from members of the Budget Committee

          · P-BUD(2011)13/CM(2011)25 (18 April 2011) – Draft revised Financial Regulations and Supplementary Provisions of the Council of Europe – taking into account certain proposals of members of the Budget Committee

          · SG/Inf(2011)3 rev – Biennial Budget – Policy Issues

          · CM(2010)125 – Introduction of a biennial budget of the Council of Europe

          · P-Bud(2011)12 - Introduction of a biennial budget - inflation adjustment

          · P-Bud(2011)11 – Decisions of the Committee of Ministers concerning the Budget Committee

          The Committee is invited to consider the Draft revised Financial Regulations and Supplementary Provisions of the Council of Europe, revised taking into account comments by members of the Budget Committee and make recommendations thereon.

    Item 9 Revision of the 2011 Budget of the Enlarged Partial Agreement on the Co-operation Group to Combat Drug Abuse and Illicit Trafficking in Drugs (Pompidou Group)

          · P-Bud(2011)9 - Revision of the 2011 Budget of the Enlarged Partial Agreement on the Co-operation Group to Combat Drug Abuse and Illicit Trafficking in Drugs (Pompidou Group)

          The Committee is invited to examine the proposed change to the approved budget and make a recommendation to the Committee of Ministers.

    Item 10 Information in respect of the implementation of the Investment Programme

          · P-Bud(2011)10 – Information in respect of the implementation of the Investment Programme

          The Committee consider the working document and provide any comment thereon.

    Item 11 Examination and approval of the meeting report

    Item 12 Other business

    Appendix II

    BUDGET COMMITTEE

    May session 2011

    (3-6 May 2011)

    LIST OF PARTICIPANTS

STATES

MEMBERS

Austria

Mr Christoph JACKWERTH

Belgium

Ms Anne VAN NIEUWENBURG

France

Mr Jean PARMENTIER

Germany

Mr Michael LAUMANNS

Italy

Mr Claudio DE ROSE

Poland

Mr Bartosz BURACZYŃSKI

Russian Federation

Mr Andrei Vitalievitch KOVALENKO

Spain

Ms Marta QUINTIAN GOROSTEGUI

Sweden

Mr Åke HJALMARSSON (Chair)

Turkey

Mr Fikret DEMIR

United Kingdom

Ms Joycelyn BUCHAN (Vice-Chair)

    Appendix III

Contributions by member states to the Council of Europe budgets in 2012
in comparison with 2011 (in € and 2011 prices) and detail of variations

 

 

2011

2012

 

 

 

 

 

 

Difference 2011/12

 

€ inclusion

of pensions

€ recharged

services

€ fixed sum contribution

€ prepress

recharging

€ variation following accession and withdrawal

financed by

other receipts

total

variation €

%

Contributions to the general budget

 

 

 

 

 

 

 

 

 

 

Ordinary Budget

211 449 200

229 468 500

18 164 500

236 800

-331 500

-50 500

 

 

18 019 300

8.52%

Extraordinary Budget

5 090 000

5 090 000

 

 

 

 

 

 

 

 

Pension Reserve Fund

37 947 000

19 456 700

-18 221 700

-268 600

 

 

 

 

-18 490 300

-48.73%

European Youth Foundation

3 095 500

3 152 700

57 200

 

 

 

 

 

57 200

1.85%

Total

257 581 700

257 167 900

 

-31 800

-331 500

-50 500

 

 

-413 800

-0.16%

Contributions to partial agreements

 

 

 

 

 

 

 

 

 

 

EDQM - European Pharmacopoeia

2 834 500

2 834 500

 

12 300

194 400

2 100

 

-208 800

 

 

Council of Europe Development Bank

1 285 100

1 299 800

 

500

13 600

600

 

 

14 700

1.14%

Pompidou Group

1 603 900

1 404 500

 

3 900

17 000

12 600

-232 900

 

-199 400

-12.43%

Partial Agreement Natural Disasters

1 331 500

1 344 000

 

1 800

8 500

2 200

 

 

12 500

0.94%

Partial Agreement Eurimages

21 381 000

23 145 100

 

3 700

27 200

1 600

1 731 600

 

1 764 100

8.25%

Enlarged Partial Agreement Democracy through Law – Venice Commission

3 562 500

3 618 300

 

5 200

34 000

16 600

 

 

55 800

1.57%

Partial Agreement on Youth Mobility through the Youth Card

86 200

88 100

 

 

400

1 500

 

 

1 900

2.20%

Enlarged Partial Agreement for Modern Languages (Graz)

1 706 000

1 712 200

 

400

5 500

300

 

 

6 200

0.36%

GRECO

2 167 700

2 198 000

 

2 200

18 700

1 800

7 600

 

30 300

1.40%

European Centre for Global Interdependence and Solidarity – North-South Centre

879 200

885 700

 

600

4 000

1 900

 

 

6 500

0.74%

Enlarged Partial Agreement on Sports

853 100

871 300

 

1 200

7 700

9 300

 

 

18 200

2.13%

Enlarged Partial Agreement on Cultural Routes

200 000

200 500

 

 

500

 

 

 

500

0.25%

Total

37 890 700

39 602 000

 

31 800

331 500

50 500

1 506 300

-208 800

1 711 300

4.52%

Total General Budget and Partial Agreements

295 472 400

296 769 900

 

 

 

 

1 506 300

-208 800

1 297 500

0.44%

    Appendix IV

    PROPOSED AMENDMENTS OF THE BUDGET COMMITTEE TO THE DRAFT REVISED FINANCIAL REGULATIONS AND SUPPLEMENTARY PROVISIONS OF THE COUNCIL OF EUROPE

    AS COMPARED WITH P-BUD(2011)13

    Article 2bis

    1. The Programme and Budget shall set the Organisation's strategic objectives along with expected results and performance indicators and authorise the budgetary receipts and budgetary expenditure of the Organisation.

    2. The financial year shall last one year extending from 1 January to 31 December of the same calendar year. As from of 1 January 2012, the Programme and budget will cover two consecutive financial years shall constitute(hereafter the biennium).

    Article 4

    3. It may also authorise the direct allocation of certain receipts to specific items of expenditure

    Article 7

    The Secretary General shall have the accounts of the Organisation kept in the manner prescribed in Articles 65 to 68 below. He or she shall render account concerning his or her management as set out in Part IV of these Regulations.

    Article 8

    2. If the operation of the Programme and Budget is disturbed by exchange rate variations, the Secretary General shall submit to the Committee of Ministers a report indicating any steps he or she proposes so as to remedy the situation.

    Article 11

    1. Obligatory contributions shall be payable in euros. However, the Secretary General may, at the time of calling for obligatory contributions, request a member state to pay all or part of its contribution in its national currency to meet the Organisation's needs for that currency.

    Article 12

    1. Each member state shall pay at least one third of its obligatory contribution in the course of the first two months of the year.

    5. The receipts account shall be credited with the amounts of contributions called. up at the beginning of the financial year. If a contribution remains unpaid in whole or in part at the end of the financial year, the unpaid amount shall remain recorded in a debtors account.

    Article 16

    1. Any new member shall pay, in respect of the financial year in the course of which its instrument of accession is deposited, a contribution of an amount to be determined by the Committee of Ministers. This contribution shall be recorded as a receipt for the then current year.

    Article 17

    The contribution of any associate member shall be determined by the Committee of Ministers in conformity with Article 38 of the Statute. Such This contributions shall be recorded as a receipts.

    Article 19

    1. The Programme and Budget of the Organisation shall include the general budget and the budgets of the partial agreements and shall consist of pillars, sectors and programme lines.

    2. The general budget shall comprise such the expenditure and receipts of the Organisation as is to be shared among all the member states and the various receipts to be set off against it. It shall include the ordinary budget, and any subsidiary budgets thereto, the extraordinary budget, the budget of the European Youth Foundation and the pensions reserve fund budget. and any subsidiary budgets thereto.

    3. [Moved to after article 24]

    [New 3] . The Programme and Budget shall include information in respect of estimated voluntary contributions for each financial year of the biennium.

    Article 23

    Every two years the Secretary General shall prepare a draft Programme and Budget for the biennium, for each financial year of the biennium and submit it to the Committee of Ministers before 1 November of the year preceding the biennium concerned, together with the opinion of the Budget Committee.

    Article 24

    The draft Programme and Budget shall contain for each financial year of the biennium:

    a) a table showing expenditure by pillar, sector and programme line, and corresponding votes, heads and sub-heads for each financial year of the biennium;

    b) objectives, expected results, performance indicators and resources for each programme line in each financial year of the biennium;

    c) tables showing expenditure by category of expenditure and receipts by category for each financial year of the biennium, the approved expenditure and receipts for the previous financial year, and the budgetary management accounts for the financial year last ended;

    d) the salary ceiling for each financial year of the biennium along with the salary ceiling for the previous financial year and the expenditure in relation to the salary ceiling for the financial year last ended;

    e) a table of posts and a table of positions, by grade and by major administrative entity, and as at 30 June of the year preceding the biennium and for each financial year of the biennium;

    f) information in respect of the pension reserve fund for each financial year of the biennium;

    It shall also include:

    g) a description of general aspects of the draft Programme and Budget for the biennium and the methodology used in the preparation of the budget and their impact on trends in the Organisation's activities, including a comparison with previous years, and their budgetary implications;

    h) the opinion of the Parliamentary Assembly in accordance with Resolution (53) 38 on the part of the budget which concerns it.

    Article 24bis – [Moved from Article 19]

      The budgets of the partial agreements and any subsidiary budgets thereto shall be drawn up in accordance with the applicable regulations. These budgets shall comprise the supplementary expenditure entailed by an agreement, to be shared among the participating states, and the various receipts to be set off against it. For each financial year of the biennium they shall provide for a contribution to the Pension Reserve Fund and an annual lump-sum contribution to administrative expenditure foreseen under the ordinary budget, determined on the basis of the amount of administrative expenditure included recorded in the budget for the second financial year of the previous biennium.

    Article 26

    If necessary, the Secretary General may, at his or her initiative or at the request of the Committee of Ministers shall, in the course of a financial year, submit to the Committee of Ministers for approval proposals for supplementary appropriations, including a statement of the ways and means by which it is proposed to meet them, for the financial year concerned in the form of an amending budget. The Committee of Ministers shall decide on these proposals after seeking an opinion from the Budget Committee.

    Article 27

    1. The Committee of Ministers shall, before the beginning of the biennium, approve the Programme and Budget for the first financial year of the biennium as well as and the Programme and Budget for the second first financial year , as well as the budget for the second financial year on a provisional basis. year and the budget for the first financial year, as well as the budget for the second financial year on a provisional basis, before the beginning of the biennium.

    [New 2] Before the 30th June of the first financial year the Secretary General shall submit to the Committee of Ministers an adjusted draft Programme and Budget for the second year, together with the opinion of the Budget Committee.

    2.(ex 3) A majority of member states, as defined by the applicable rules, or the Secretary General may request the re-opening of the debate on the budget for the second financial year before 1 November of the first financial year of the biennium.

    3.(ex 2) The Committee of Ministers shall approve the Programme and Budget and if applicable the revised programme for the second financial year before the beginning of the financial year to which it relates.1 November of the first financial year in the biennium, unless it decides otherwise.

    Article 28

    If a the Programme and Budget cannot be adopted in accordance with the previous article, the Committee of Ministers shall authorise the Secretary General to incur expenditure on a monthly basis of an amount not exceeding one twelfth of the previous financial year’s budget and to call contributions from each member state amounting to one third of its contribution to the previous financial year’s budget, as provided for in Article 12.

    Article 29

    6. The function of the Budget Committee shall be to give the Committee of Ministers its opinion on financial and administrative matters in the Council of Europe, including:

    a) the draft Programme and Budget for a biennium, proposals for supplementary appropriations and, in general, any projects involving new expenditure;

    b) the progress review reports provided for in Article 68bis;

    c) the annual accounts provided for in article 65 and the report of the external auditor for the previous financial year;

    d) human resources and pension systems issues;

    e) problems relative to the Working Capital Fund;

    f) the transfers from one vote to another referred to in Article 31 of these Regulations;

    g) any other matter of an administrative or financial nature referred to it by the Committee of Ministers or the Secretary General.

    8. The Secretary General shall supply the Budget Committee with any assistance and documentation it may require, in good time to facilitate the accomplishment of its duties. In particular, he or she shall forward to the Committee for information the accounts for the previous financial year together with the relevant report of the External Auditor. appointed under Article 78 of these Regulations.

    Article 30

    1. The approval of the Programme and Budget for a given financial year by the Committee of Ministers shall constitute authority for the Secretary General to proceed to collect receipts and, in particular, to call upon the member states to pay their contributions and to commit incur and settle expenditure of that financial year within the limits of the appropriations, without prejudice to the provisions of Article 30 bis.

    Article 30bis

    To ensure full implementation of the programme, the Secretary General shall be authorised to commit budget appropriations for the second year in the biennium as from 1 October September of the preceding year, within a limit of five per cent 10% per programme line and 5% of the total budget for the second year, until the budget for the second year has been approved. in accordance with the second paragraph of Article 27, without prejudice to the provisions of Article 28.

    Article 31

    1. If need be, the Secretary General shall be authorised to make transfers between within each vote of the budget programme lines to an amount not exceeding ten per cent of the supplying and receiving programme line, or €100 000 in a up to a for a given financial year., under the conditions laid down by the Committee of Ministers at the time of that budget's approval. Any other transfer shall require the Committee of Ministers' prior approval.

    2. Notwithstanding the provisions of Article 31 para 1 the Secretary General shall be authorised to make vote to vote transfers of a technical nature, Including notably those related to the charging of staff costs and the allocation of common provisions. of appropriations under conditions determined by the Committee of Ministers, in particular when such transfers become necessary as a result of redeployments of permanent posts decided by the Secretary General under the powers conferred on him by Resolution (81) 6 and, on the basis of the annual budget decisions, to make vote to vote transfers of appropriations between the various heads covering staff expenditure, to deal with any budgetary problems arising from the charging of staff expenditure to a number of budget sub-heads.

    Article 31bis

    [New Para 1] Budgetary appropriations uncommitted at the close of the financial year shall be cancelled and be dealt with in accordance with Article 70.

    [Ex 1 new 2] To ensure the full execution of the programme in a biennium, the Secretary General may seek authorisation be authorised to carry forward to the second financial year budgetary appropriations for the first financial year concerning activities which are behind schedule due to exceptional circumstances, with a view to implementing these activities. to which these appropriations were allocated. Authorisation for this carry-forward shall be given by the Committee of Ministers after seeking an opinion from the Budget Committee.

    [Ex 2 new 3] Any carry-forward of budgetary appropriations from one biennium to the subsequent biennium can only be made under exceptional circumstances, excluding appropriations for normal running expenses, upon authorisation by the Committee of Ministers following a request by the Secretary General and after seeking an opinion from the Budget Committee.

    Article 40

    1. In these Regulations “commitment” is to be understood to mean any act having the effect of financially committing the Organisation towards a member of staff, a third party or provider of an internally billed goods or services.

    Article 54

    The Treasurer may make advance payments if internal regulations or the terms of contracts so provide. in accordance with the relevant provisions.

    Article 67

    1. The budgetary management accounts shall include, for the financial year, a reconciliation of the budget outcome for the period and the budget as approved. They shall show:

    a) under receipts:

      i) the states' obligatory contributions for the budget period financial year;

ii) invoices raised in respect of goods or services delivered to third parties during the budget period financial year;

iii) any other income received during the budget period financial year.

    b) expenditure incurred during the budget period financial year

    c) a summary of transfers of appropriations during the budget period financial year; and

    d) the balance of unspent appropriations at the budget period financial year end.

    Article 68bis

    [New 1] Starting with the first biennium the Secretary General shall present to the Committee of Ministers before 15 September an interim progress review report for the ongoing financial year, this report should outline for each programme line the results achieved and the resources utilised.

    [New 2 ex 1] The Secretary General shall present to the Committee of Ministers before 31 March present to the Committee of Ministers: a progress review report on the implementation of the Programme and the Budget before 31 March of the year following the financial year to which it refers. of the previous financial year, this report should outline for each programme line the results achieved and the resources utilised.

    Article 71

    5. The Organisation shall afford to the External Auditor such facilities and technical assistance as it may consider necessary for the performance of its duties.

    Article 72

    3. The External Auditor and its their staff shall have free access to all vouchers, books, documents and files which he or she considers necessary to examine for the purpose of the audit. They It may ask the Organisation's officials for any information they deemed necessary. The External Auditor and their its staff shall not disclose any information of a confidential or restricted nature, which has been made available to them, and shall not make use of it except in direct connection with the performance of the audit. The External Auditor may draw the attention of the Committee of Ministers to any denial of information, which in its opinion was required for the purposes of the audit.

    Article 74

    2. The External Auditor shall present, by 31 May at the latest, a report to the Committee of Ministers, in which he or she shall set forth his or her observations on the annual accounts and any other matter referred to in Articles 73 and 74 above.

    The report shall include:

    a) the nature and scope of its his or her examination and of any changes in the nature and scope of such examination, including whether he or she has obtained all the information and explanations required have been obtained.

    *

    * *

    Appendix V : Additional Information Documents:

    Title of Document

    P-BUD(2011)16 – Priorities 2012-2013

    Additional Information – Member States Contributions (Appendix III to this document)

    CM/Del/Dec(2010)1099 : Decisions adopted, p44 to 46, Resolution concerning the Programme and Ordinary Budget for 2011

    CM/Inf(2011)12 : Staff expenditure : effect of recent measures

1 This document has been classified restricted at the date of issue; it will be declassified in accordance with Resolution Res(2001)6 on access to Council of Europe documents.



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