ICAO TECHNICAL COOPERATION BUREAU

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ICAOTECHNICAL COOPERATION BUREAU

• Financial and Budgetary Control and Audit

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SUMMARY OF CONTENTS

• Financial Administration of ICAO
• Funding of the Regular and Technical Cooperation
  Programmes
• Administration of the Technical Cooperation
  Programme
• Functions of Programme Budget Unit
• Types of Budgets
• Budget Components
• Financial and Budgetary Control
• Financial Reporting
• Internal and External Audit of ICAO
• Conclusion

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FINANCIAL ADMINISTRATION OF ICAO

• ICAO Financial Regulations
• ICAO Finance Branch

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The ICAO Financial Regulations

• Approved by the Assembly and govern the financial
  administration of the Organization
• Article IX of the Financial Regulations covers
  Technical Cooperation
• All transactions of the Organization have to be
  in accordance with the ICAO Financial Regulations
  and Rules

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The ICAO Finance Branch

• Maintenance of accounts
• Preparation of Programme Budget
• Operation of payroll, treasury and banking
  operations
• Calculation of scales of assessments
• Preparation of Council and Assembly working papers

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FUNDING OF THE REGULAR AND TECHNICAL COOPERATION
PROGRAMMES

• Regular Programme
• Funded by assessments on Contracting States
• Assessments based on national income and
  aviations activity

• Technical Cooperation
• Funded by administrative charges from projects
• No grants received from Regular Programme

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ADMINISTRATION OF THE TECHNICAL COOPERATION
PROGRAMME

• Conducted under broad policy guidance of ICAO
  Assembly and Council
• Subject to general guidance by Secretary General
• Technical Cooperation Programme is executed by
  Technical Cooperation Bureau

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FUNCTIONS OF PROGRAMME BUDGET UNIT

• Budgetary and expenditure control of all TC
  activities
• Trust Fund and Management Service Agreement (MSA)
  project budgets
• Administrative budget of the Bureau
• Preparation of management reports
• Coordination with Finance Branch

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TYPES OF BUDGETS

• United Nations Development Programme (UNDP)
• Trust Fund
• Management Service Agreement (MSA)
• Civil Aviation Purchasing Service (CAPS)

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UNDP Budgets

• Standard budget format
• (Main budget components discussed later)
• International experts and consultants based on
  pro forma costs
• Core funds from UNDPs own resources

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UNDP Budgets (continued)

• Cost-sharing funds from governments and other
  entities (cost sharing may be partial or full)
• 10 Administrative and Operational Services
  (AOS) cost
• 3 Country Office Administration (COA) cost

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Trust Fund Budgets

• Based on estimated actual costs
• Funds are deposited directly with ICAO
• Support Cost, an across-the-board flat rate
  percentage

13
Management Service Agreement (MSA) Budgets

• Similar to Trust Fund except
• The cost of providing the service is
  calculated so that all costs incurred are
  recovered
• A specific handling charge and not a fixed
  percentage

14
Civil Aviation PurchasingService (CAPS) Budgets

• Meet aviation equipment needs
• Procurement and technical support services fees
• Procurement Section of TCB

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BUDGET COMPONENTS

• Main components of a budget are
• Component 10 Project personnel
• Component 20 Subcontracts
• Component 30 Training
• Component 40 Equipment
• Component 50 Miscellaneous (includes reporting
  costs, sundry and administrative overhead)

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FINANCIAL AND BUDGETARY CONTROL

• ICAO Financial Regulations and Rules
• Funds required before implementation
• Budgetary provisions for activities
• Project budgets are closely monitored

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FINANCIAL AND BUDGETARY CONTROL
Asia Pacific Project XYZ
Africa
Americas
Europe and Middle East
Personnel Recruitment
Expert XYZ
FPS
FPS
Purchase Order for Equipment
Equipment XYZ
FPRO
FPRO
PBU
D/TCB
Training
FSU
FSU
Fellow XYZ
Account XYZ
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FINANCIAL REPORTING

• Contributions received are credited to separate
  funds
• Quarterly financial statements are provided

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INTERNAL AND EXTERNAL AUDIT OF ICAO

• Internal Audit
• Office of Programme Evaluations, Audit and
  Management Review
• Conduct evaluations, audits and reviews of the
  Organizations operations
• Promote economic and efficient use of resources

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INTERNAL AND EXTERNAL AUDIT OF ICAO (continued)

• External Audit
• External Auditor appointed by the Council and
  confirmed by the Assembly
• Annual audits - areas of concern
• - financial statements
• - financial transactions
• - funds on hand
• - internal controls

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CONCLUSION

• ICAO Technical Cooperation Bureau in operation
  for more than 50 years
• Implemented hundreds of projects
• Will continue to provide assistance to States
  under cost-recovery principles
• Thank you for your attention.