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GB.274/PFA/9/2
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Programme, Financial and Administrative Committee |
PFA |
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NINTH ITEM ON THE AGENDA
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PROGRAMME AND BUDGET PROPOSALS FOR 2000-01 | |
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VOLUME 2 |
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Total 2000-01 |
40,931,367 |
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Total 1998-99 |
40,931,367 |
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MS.1. The table above groups together under a single item the resources presented in the Programme and Budget for 1998-99 under 40 (General Management), 160 (Personnel), 170 (Financial Services) and 200 (Programming and Management).
Description of changes in resource levels
MS.2. The level of resources proposed for this item is the same in real terms as compared with the biennium 1998-99.
MS.3. Programme descriptions for the biennium 2000-01 follow.
40. General Management
40.1. This programme is responsible for the executive management of the Office under the leadership of the Director-General. In accordance with the policies and strategic directions mandated by the Governing Body and the International Labour Conference, senior staff of this programme ensure the overall planning, coordination and implementation of ILO programmes as well as their effective monitoring and evaluation.
160. Personnel
160.1. The ILO's human resources are its greatest asset, and account for some 70 per cent of regular budget expenditure. Management of these resources requires effective and efficient personnel policies and systems adapted to the needs of the Organization.
160.2. Human resources management in the ILO is directed at ensuring that: staffing policies are adapted to the achievement of the ILO's strategic objectives; competent staff are rapidly assigned to vacant positions; managerial skills are strengthened to improve programme delivery; administrative policies, procedures and practices are adopted which provide managers with effective management tools and help all officials understand their rights and obligations; and the administration of personnel matters is based on the principles of fairness, equal treatment and due process.
160.3. Increased calls are being made by constituents to streamline and reform the Office's personnel administration in such areas as performance management, the administration of contracts, staff mobility, training and pay schemes. In this respect, against a background of resource constraints, a balance has to be achieved between carrying out reforms, which entail considerable development work and consultation, and maintaining the administrative functions which are a statutory requirement. These issues have to be addressed in a manner which takes into account staff-management relations, the ILO's obligations as a partner in the United Nations Common System, the Staff Regulations and the case law established by the ILO Administrative Tribunal.
160.4. During the biennium 2000-01, emphasis will be placed on improving the quality of the staff, reforming the methods for filling vacancies, facilitating mobility, reducing causes for grievances and disciplinary cases, and streamlining administrative procedures. The training, classification and career development programmes formulated in the previous biennium will be implemented. New activities in the area of career development will include succession planning and the development of typical career paths. Simplified and clearer guidelines are also required to improve understanding by managers and staff of their obligations and entitlements and to reduce causes for internal grievances. The rules and regulations set out in circulars will therefore be consolidated and the Staff Regulations reviewed to improve their coherence in view of the changes introduced over the past ten years.
160.1. Departmental activities
160.5. This includes departmental management and the work of the staff counsellor as well as a provision for staff welfare and social and recreational activities. High-level external expertise to assist in policy development is also foreseen.
160.2. Personnel planning and career
16.0.2 development
160.6. The objective is that staff of the highest standards of professional competence, efficiency and integrity are made available to the ILO and its constituents, through appropriate recruitment, training and performance management and the efficient administration of staff movements.
160.7. Selection and recruitment include the filling of vacancies, internally and externally, through the recruitment unit and the Selection Board. Candidates will be recruited who are suited to a broad and varied career in the Office, including field service. Emphasis will be placed on improving the age, sex and geographical distribution of the staff.
160.8. Assessment, classification and training involve strengthening the linkages between organizational development and staff careers, the assessment of performance by officials, the classification of jobs and the development of training plans. Emphasis will be placed on developing a more equitable and rigorous analysis of jobs and more rational organizational structures through the implementation of the training, classification and career development programme developed in the previous biennium.
160.9. Processing of staff movements. Staff movements will be processed promptly and efficiently, in accordance with the established rules, regulations and procedures, including technical cooperation staff movements. Emphasis will be placed on reducing delays in issuing contracts and other operations related to staff movements.
160.3. Personnel administration
160.10. The objectives are that:
• personnel policies, rules and practices are adapted to the needs of management and the concerns of the staff, while respecting the obligations of the Office; and
• ILO staff salaries, entitlements, benefits and health insurance are administered efficiently and in accordance with the established rules.
This includes: the administration of staff policies and procedures which will be reviewed to ensure that they are adapted to the changing needs of managers, the concerns of the staff, the ILO's obligations under the United Nations Common System, the need to maintain good staff-management relations and the requirements of fair treatment and due process; the administration of staff entitlements, in accordance with the Staff Regulations and the decisions of the United Nations Common System; and the administration of the ILO/ITU Staff Health Insurance Fund.
160.11. Personnel policy and procedures. In addition to fair and efficient implementation of personnel policies, regulations and procedures, emphasis will be placed on revising policies concerning local staff in field offices, developing guidelines on regulations and best practices for management and staff and ensuring that all policies, rules and procedures properly reflect the Organization's changing needs, in accordance with the obligations deriving from the ILO's adherence to the United Nations Common System. The staff will be consulted on matters affecting conditions of work and terms of employment.
160.12. Administration of entitlements and benefits includes the administration of all salary scales and allowances, including statutory entitlements, such as family allowances, education grants, rental subsidies and entitlements due under the United Nations Joint Staff Pension Fund, the Special Payments Fund, the compensation scheme for service-incurred illness, injury or death, the personal accident insurance policy, the comprehensive insurance policy for national experts and the voluntary group life and disability insurance scheme. Emphasis will continue to be placed on maintaining a high level of service and administering the schemes equitably, effectively and efficiently.
160.13. Health insurance. The ILO/ITU Staff Health Insurance Fund provides comprehensive health insurance to serving and retired officials, including technical cooperation staff, staff of the Turin Centre and local field staff, their spouses and recognized dependants. A particular concern in the administration of the Fund will be to contain costs in the light of rapidly rising health care costs. The Fund's goal in these circumstances is to maintain the same level of services without increasing contribution rates.
160.4. Personnel information management
160.14. The effective and timely administration of personnel information require the maintenance and support of personnel information systems and the maintenance of automated and manual personnel records and files. Emphasis will be placed on continuing the work commenced in 1999 on the implementation of the payroll module of the Personnel Information and Payroll System (PERSIS). The objective is that all the ILO's personnel information systems operate efficiently and meet the needs of their users.
160.15. Personnel systems support. Maintenance, support and upgrades will be provided for the personnel and related systems and applications which have been installed.
160.16. Payroll module of PERSIS. The payroll module of PERSIS represents the main benefit of the system and provides a high degree of payroll automation, including full on-line inquiry, update capability and complete automatic retroactivity. Its implementation therefore remains a priority. However, due to major delays in the development of the IMIS software by the United Nations in New York, the payroll module of PERSIS will not be fully installed during the biennium 1998-99. Work will therefore continue on its implementation, but resource constraints will pose difficulties.
160.17. Personnel records and registry. Accurate and complete personnel data, in both electronic and manual files, are essential for the management of the ILO's human resources. Work includes maintaining personnel files, entering data in the PERSIS database and keeping the relevant records.
170. Financial Services
170.1. The International Labour Office is accountable to its member States and to extra-budgetary donors for the resources entrusted to it and it is the Treasurer and the Financial Services Department that have primary responsibility to ensure the proper discharge of the duties and obligations set out in the Financial Regulations and Rules. These include the establishment and monitoring of the application of financial policies and procedures; the performance and/or supervision of all budgetary, financial and accounting operations; preparation and monitoring of cost estimates; issuance of allocations; approval and control of obligations and expenses incurred against such allocations; management of the treasury function; the communication, collection and accounting for contributions from member States and investment of surplus funds; maintenance of the official accounting records and preparation of financial reports for submission to the external auditors, policy organs and donors; and establishment and monitoring of the internal control systems, in particular to ensure continued financial discipline with regard to the delegation of financial authorities.
170.2. A further key responsibility is the preparation of documents on financial matters for the Governing Body and Conference and their Committees (in particular, the Programme, Financial and Administrative Committee, including meetings of Government members on allocations matters and the Finance Committee of Government Representatives of the Conference) as well as the servicing of these committees.
170.3. To support the delegation of financial authorities under the Active Partnership Policy, PC-based software packages for the local staff payrolls, imprests and the preparation and management of budgets has been developed. In addition, software has been developed to assist headquarters departments assume responsibility for funds control. However, as explained in November, the headquarters financial systems are old, inflexible and hinder the development of best practices and procedures and will have to be replaced. Work on the new system will be initiated when full funding for the project has been secured.
170.1. Treasurer and Financial Comptroller
170.4. Provision is made for the Treasurer and Financial Comptroller, secretarial support and mission travel.
170.2. Budget and Finance
170.5. The objective is that the financial resources of the Organization are managed judiciously and in accordance with the Financial Regulations and Rules; that the delivery of the programme of work is expedited through efficient financial and administrative procedures while at the same time ensuring adequate financial controls; and that the new computerized payroll system (adapted from the UN/IMIS payroll), begun in the 1998-99 biennium, will be operational.
170.6. Financial analyses and reports will be provided to management relating to the financial and budgetary aspects of regular budget and extra-budgetary programmes, including the implications of cost and exchange rate changes. Review of financial and budgetary policies and procedures and enhancement of computer software, complemented by focused training courses and guidelines, will continue to promote an efficient and responsive operational environment. Work on the adaptation, installation and testing of the UN/ IMIS payroll system will continue to completion.
170.3. Treasury and Accounts
170.7. The objective will be to continue to protect and strengthen the bases of financing the Organization's activities and to provide efficient and comprehensive financial accounting and reporting for these activities.
170.8. The following work will be carried out: collection of member States' assessed contributions and the Organization's other income; development and implementation of general accounting as well as treasury and investment management and disbursement policies and procedures, both at headquarters and in the field; maintenance of income, expenditure and other general ledger accounts for all funds in the custody of the Director-General; preparation of interim and final financial statements and reports, as well as preparation of analyses, forecasts and studies for the relevant policy-making and management bodies; verification of imprest accounts and monitoring of field accounting work carried out under decentralised arrangements.
200. Programming and Management
200.1. This Bureau, under the guidance of the Director-General, provides the Governing Body and the Conference with the analysis and proposals necessary to define the ILO's programme of work and oversee its implementation. It advises the Director-General and senior managers on programme priorities, structures and procedures, and particularly on measures to improve the effectiveness and efficiency of ILO action. Improvements in management at all levels are supported through the provision of tools and training to improve the monitoring and evaluation of both regular budget and extra-budgetary programmes. The application of management policies and rules is supervised directly through the internal audit.
200.2. One priority for the biennium will be to continue reforming the process of developing the ILO programme, including the introduction of better tools and procedures to respond to requests from the Governing Body for greater transparency, efficiency and effectiveness. Another priority will be to build on the monitoring, evaluation and reporting system (MERS), which is now obligatory for all programmes, and to reinforce its application throughout the Office. In-depth evaluations will be undertaken more frequently for the use of the Governing Body and the Office. A further priority will be to improve the impact and transparency of the ILO's programme, and access to its products, through the development of its Website.
200.3. In terms of programme planning and coordination , the main outputs are expected to be:
• two preliminary consultation documents for discussion by the Governing Body in March and November 2000, on the Programme and Budget proposals for 2002-03;
• the Director-General's Programme and Budget proposals for the biennium 2002-03;
• a consolidated report on ILO activities during the biennium 1998-99, for submission to the Conference in the year 2000; and
• internal analyses to enable the Director-General and the senior management of the Office to: assess and oversee implementation of the approved programme; allocate available regular budget resources and Programme Support Income; and, when necessary, recommend programme adjustments to the Governing Body to take account of new substantive priorities, internal reorganizations and the financial situation of the Office.
200.4. Management advisory services covers two main activities. The first is the development and management of the ILO's Website. The Website provides rapid and inexpensive access to the wide array of information and services produced and projects a modern and dynamic image of the Organization. The Website will become the repository of all significant ILO documents, so that they can be easily searched and retrieved, including in multimedia form. The second main activity is the provision of advice and support to improve the efficiency and effectiveness of programme delivery. Based on the advice provided, changes will be made in management practices, organizational structures, administrative practices and technology.
200.5. With regard to evaluation , the External Auditor has emphasized the need to ensure the effective application of the Monitoring, Evaluation and Reporting System (MERS) throughout the ILO. Moreover, increased attention will be given to improving the effectiveness of technical cooperation through the application of evaluation techniques. A synthesis report will be issued containing the main evaluation findings during the biennium and will be submitted to the Governing Body. The capacity of the Evaluation Unit will be strengthened.
200.6. The objective of internal audit is that ILO policies, regulations, rules and procedures are complied with, and the resources of the Organization are used in the most efficient and effective manner. Reports are prepared for the Director-General and the Governing Body on audits and investigations, with recommendations for the improvement of efficiency, effectiveness and compliance with regulations and procedures.
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Regular Budget (in US dollars) | ||
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Total 2000-01 |
20,636,500 |
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Total 1998-99 |
20,636,500 |
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OBP.1. The level of resources proposed for this item is the same in real terms as compared with the biennium 1998-99.
OBP.2. Programme descriptions for the biennium 2000-01 follow.
290. Other Budgetary Provisions
290.1. This programme includes the budgetary provisions for contributions to various ILO funds and United Nations common system and inter-agency bodies, as well as provisions which do not appropriately fall elsewhere in the Programme and Budget. The budget estimate is maintained at the same level in real terms as in the biennium 1998-99. Reductions in the ILO's contribution to the Joint Medical Service in Geneva, and a decrease in the estimated required contribution to the ILO Staff Pensions Fund have been offset by an increase in the provision for the ILO's contribution to the Staff Health Insurance Fund in respect of the insurance of retired officials, invalidity pensioners and survivors (spouses and orphans), by the reintroduction of a contribution to the Building and Accommodation Fund and by the establishment of a provision for an ILO crèche.
290.2. Loan annuities on the ILO building. Provision is made for the payment of two annuities of 3,702,290 Swiss francs in 2000 and 2001 (equivalent to $5,071,630 for the biennium) for the loan from the Swiss Property Foundation for the International Organisations (FIPOI) in connection with the ILO headquarters building.
290.3. ILO Staff Pensions Fund: Amortization of actuarial deficit. On the basis of the most recent actuarial valuation and while maintaining the ILO's commitment to ensure the payment of benefits under this fund, it has been possible to reduce in real terms the estimated regular budget contribution to an amount of $1.5 million for the biennium 2000-01.
290.4. Special Payments Fund. The purpose of this Fund is to make periodic ex gratia payments to former officials or their spouses in accordance with criteria approved by the Governing Body. The regular budget contribution to this Fund of 200,000 Swiss francs is maintained at the same level as in the previous biennium.
290.5. Staff Health Insurance Fund: Contribution for the insurance of retired officials. This provision, amounting to some $9.0 million, covers the ILO's contribution to the Staff Health Insurance Fund in respect of the insurance of retired officials, invalidity pensioners and survivors (spouses and orphans).The provision reflects an increase of some $150,000 in real terms, due to the expected increase in the number of retired officials.
290.6. Contribution to the Building and Accommodation Fund. The provision under this heading amounts to 365,000 Swiss francs.
290.7. Contribution to various United Nations common system bodies and inter-agency committees. The contributions to various United Nations common system bodies and inter-agency committees are as follows:
– Joint Inspection Unit ($405,000)
– Consultative Committee on Administrative Questions ($98,200)
– Consultative Committee on Programme and Operational Questions ($42,290)
– International Civil Service Commission ($636,000)
– Information Systems Coordination Committee ($80,000)
– Office of the United Nations Security Coordinator ($70,000)
– Joint Medical Service ($1,058,000)
– The total provision of some $2.4 million covers the ILO contributions to these UN common system entities.
290.8. External audit costs. The provision under this heading, amounting to $655,000, includes the cost of the audit of all the funds for which the Director-General has custody (regular budget, UNDP, trust funds, extra-budgetary accounts and all other special accounts). Expenses incurred as a result of participation by the ILO's auditors in the activities of the Panel of External Auditors of the United Nations and specialized agencies are also provided for.
290.9. Administrative Tribunal. The resources under this heading provide for the Registrar of the Administrative Tribunal, part of the costs of the full-time Assistant Registrar and some clerical assistance, a small mission credit and the translation of case material. As in previous biennia, the remaining costs of the Assistant Registrar, the costs of further translation work, of maintaining a computer database of the Tribunal's case-law and of clerical assistance and the judges' fees and travel expenses are shared with the other organizations which have accepted the Tribunal's jurisdiction. A separate paper will be submitted to the Programme, Financial and Administrative Committee at its March 1999 session on possible changes in the methodology for sharing these costs. Pending a decision by the Committee and agreement with other organizations, this provision has been maintained at the same level as in the previous biennium.
290.10. Staff representation. Article 10.1 of the Staff Regulations accords time off to members of the Staff Union Committee for the purpose of representing the staff of the Office on questions of conditions of work and terms of employment. As in previous biennia, a provision of 4/00 Professional and 1/00 General Service work-years is proposed to finance partially replacements in those units in which members of the Staff Union Committee normally work. A further 2/00 General Service work-years provides for a secretary for the Staff Union.
290.11. International School of Geneva. The contribution to the International School of Geneva amounts to some 88,400 Swiss francs.
290.12. Contribution to the ILO crèche. A subsidy of some $185,000 has provisionally been included for the running costs of the ILO crèche; a facility located on the ILO premises available for the use of both ILO staff members and delegates to ILO meetings. This subsidy is subject to a decision on the creation of a crèche. A separate paper will be submitted to the Programme, Financial and Administrative Committee of the Governing Body at its March 1999 session concerning the establishment and operation of the crèche.
290.13. Unpaid liabilities. The amount of $2,000 provides for the payment in 2000-01 of such transactions in respect of previous years as would not be appropriate to pay from any other item of the budget. This provision is required by article 17 of the Financial Regulations.
Part II. Unforeseen Expenditure
1. Provision is made under this item for unforeseen and extraordinary expenses, i.e. those which may arise when, as a result of Governing Body decisions taken after the adoption of the budget, or for any other reason, an approved budget credit is no longer sufficient for the purpose envisaged; or when the Governing Body approves an item of work or an activity for which no provision has been made in the budget.
2. In accordance with article 15 of the Financial Regulations, no part of the resources provided under this item may be used for any other purpose without the specific prior authorization of the Governing Body.
3. The total supplementary expenditure authorizations approved by the Governing Body in respect of recent financial periods have been as follows:
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Financial Period |
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US Dollars |
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1990-91 |
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8,804,500 |
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1992-93 |
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2,325,000 |
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1994-95 |
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1,378,500 |
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1996-97 |
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438,900 |
4. Normally, these authorizations have provided in the first instance for financing to the extent possible out of budgetary savings; failing this, out of the credit under this item; and after exhaustion of this credit, by a withdrawal from the Working Capital Fund.
5. The Governing Body at its 221st (November 1982) Session supported the Director- General's proposal that the provision under this item should be set at a more realistic level. However, in the current climate of financial constraints, it has not been possible to increase the level of this provision. Accordingly, the Director-General, while conscious of the need to maintain this provision in reasonable proportion to the size of the budget, proposes to keep it at the 1998-99 level, i.e. $875,000.
Part III. Working Capital Fund
1. The Working Capital Fund is established for the following purposes, as defined in article 19(1) of the Financial Regulations:
(a) to finance budgetary expenditure pending receipt of contributions or other income; and
(b) in exceptional circumstances and subject to prior authorization of the Governing Body, to provide advances to meet contingencies and emergencies.
Level of the Working Capital Fund
2. The level of the Working Capital Fund was set at 35 million Swiss francs on 1 January 1993 by the International Labour Conference at its 80th (1993) Session.
Refund of Withdrawals
3. Under the present provisions of article 21.2 of the Financial Regulations, any excess of budgetary expenditure over budgetary income for the 1998-99 biennium would be financed by a withdrawal from the Working Capital Fund. Provision for reimbursement of this withdrawal would be made under this part of the budget for assessment on member States in 2001.
4. However, the Conference at its 82nd (1995) Session decided that article 21.2 of the Financial Regulations be the subject of a derogation to allow for the introduction, on a trial basis for the 1994-95, 1996-97 and 1998-99 financial periods, of a system whereby a withdrawal from the Working Capital Fund to finance a cash deficit directly attributable to income shortfalls would be reimbursed in the following biennium or biennia from arrears of contributions received. The provisions of article 21.2 described in paragraph 296.3 above would apply only to that portion of a cash deficit which was attributable to an overspending of the expenditure budget on account of additional expenditure items authorized by the Governing Body. It is therefore expected that no provision will be necessary under this Part in 2000-01.