Responsibilities
Latest content update: 01/06/2014
The Regional Representatives are the budget holders for the FAOR Network in their region. This function includes responsibility for: |
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planning and allocating financial resources for the FAOR Network in their region |
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monitoring and evaluation of budget performance of FAORs concerned |
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integrating the FAORs Periodic Budget Reports (PBRs) into a regional report |
| FAORs are responsible for the funds allocated to them by the Regional Representative, and in particular for: |
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planning and implementing the non-staff resources allocated to them by the RO |
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generating and recovering the planned income resources |
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updating data in the corporate systems (COIN, FPMIS); and timely reporting through Periodic Budget Reports (PBR) |
| OSD is responsible for : |
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Monitoring the performance of the RO in managing the FAOR Network |
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Monitoring the overall budgetary performance of the FAOR Network; |
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Integrating the Regional PBRs into a global PBR for analysis and final submission to DDG Operations |
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Advising Senior Management about the need to shift resources among regions |
| OSP is responsible for : |
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After consultation with OSD, providing the initial allotment of FAOR network budget by Region |
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Integrating the global FAOR network PBR to the corporate PBR |
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Advising the office of the DDG Operations about budget related issues relating to the overall FAOR network |
| DDGO is responsible for : |
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After consultation with OSD, providing guidance on the overall budget management of the FAOR network |
Financial Planning
Latest content update: 01/06/2014
Financial planning is an exercise undertaken at the beginning of each year for both expenditures related to staff and non-staff resources as well as for income that may become available to the FAOR network. The basis for this exercise is the institutional allotment for the FAOR Network issued by OSP at the beginning of each year and calculated on the basis of the biennial PWB approved by the Conference.
OSP issues allotments to the five Regional Offices for the FAOR Network under their responsibility. Financial planning has the objective to determine the minimum resources required for both staff and non-staff costs of each Representation in the regions, taking into account the income which are expected to become available to the FAORs in the course of the year.
Further guidance is provided with some OSD’s suggestions for the identification of measures which could be applicable to the FAOR Network in this area.
Planning for staff-related resources: The scope of this exercise is to calculate the financial resources required to cover the cost of staff in the Representations.
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Planning for non-staff resources: This is undertaken once the planning of staff cost is concluded, leaving a balance of the regional allocation available to cover non-staff expenditures. The exercise is mainly based on historical expenditure trends in each FAOR Office as recorded in COIN (excluding non-expendable equipment which is directly handled at the Regional Office level), adjusted to cater for inflation and other increases in running costs (such as rental of premises, service contracts, etc) as may be justified.
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| Planning for Security: Planning for Security: DDOS is responsible for planning security-related funds against the ad hoc budget approved by the FAO Conference security Expenditure of the PWB. Upon submission of documented requests by FAOR, DDOS provides funds from the Security budget for measures such as armoured vehicles, vehicle security installations, security kits, window bars, shatter-resistant films, road blockers, and temporary relocation into hotels pending move to MOSS compliant premises. However, funds from the FAO Representation network should cover routine costs which cannot be directly related to security such as vehicles, office restructuring, generators (on a cost-shared basis with DDOS), etc. |
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| Planning for Staff Development: According to the Organization’s policy, the allocation for Staff Development (SDV) for the FAOR Network is calculated as 1.35% of RP staff costs. The SDV funds have been centralized in CSPL and will dispensed according to staff development plans of individual country offices. Funding for the Staff Development is shown separately in the allotments.. In case of need, the resource allocation for training of staff in country offices can be increased by using available resources in the office allotment and or AOS. |
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Planning for Income: This is done to take into account during the financial planning exercise, any resources in addition to the RP allotments (net appropriation resources) that may become available to the FAORs, including commitments made by the host government, reimbursements for support services rendered by the FAOR Office, or revenue from other activities.
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Budget Allocation
Latest content update: 01/06/2014
At the end of the planning exercise, Regional Offices prepare the FAORs base working allotments for non-staff costs.
Allocation of financial resources to the country offices is done only for non-staff costs. Staff resources are managed at the regional level pending outcome of decision and finalization of the country work planning process.
At the beginning of the year, zero-allotments for non-staff are issued by the Regional Offices to all FAORs in the regional network to enable them to start incurring expenditure against valid activity and expenditure codes. As soon as the financial plan is finalized, individual base working allotments, covering the minimum funding required by each office, are issued for the whole year. Subsequently, incremental allocations may be issued as additions to the base allotments. FAOR budgetary allocations are posted in Oracle and are automatically reflected in the COIN Budget Management Module.
Country offices may request for justified additional allocations through the PBR module in COIN. For additional allocations required to procure non expendable equipment, in addition to the PBR, the country office has to provide quotations that can be uploaded in COIN and attached to the PBR itself as annexes.
Budget Journals Vouchers are issued by Regional Offices to modify country offices yearly allotments. Journal vouchers are generated automatically in the Regional Budget Management module (PBR control tab) The journal will increase (or decrease) the budget of the concerned country office and reduce (or increase) the central fund managed by the Regional office for the FAOR Network.
Budget Implementation
Latest content update: 01/06/2014
Role of Regional Offices
For budget implementation, Regional Offices are responsible for implementing the staff budget and allocate non-staff resources to the country offices. In this respect, full fungibility exists between staff and non-staff resources and among non-staff budget accounts, with the exception of hospitality and staff development funds which are now centrally managed by CSPL.
Role of FAORs
The implementation of the budget for non-staff cost is the responsibility of individual Country Offices, against their allotments. The individual FAORs can apply full fungibility among non-staff budget accounts, except for hospitality and staff development. For hospitality, the amount allotted to each country for this purpose must not be exceeded. As regards staff development, the allocated funds can only be used for this purpose. Savings on non-staff allocations can be used to supplement the resources for staff development, if necessary.
Role of OSD
The role of OSD is to provide policy guidance and support to the Regional and Country Offices as well as to exercise oversight over the use of the resources allocated to the FAOR network.
Role of DDGO
Assisted by OSD and OSP, DDGO reviews reports over the use of the FAOR network budget and assesses the need to intervene, including possible reallocation of any surplus among the regions.
Budget Monitoring
Latest content update: 01/06/2014
Role of Regional Offices
Monitoring the budgetary performance of the Country Offices is the responsibility of the Regional Office. This function is essential to ensure that the allocated funds are used in the most effective and efficient manner. In addition, evaluation of the Country Offices’ capacity to implement the budget is necessary to determine any requirements in terms of guidance and support.
Role of FAORs
FAORs ensure that expenditures are within the allotments. FAORs determine priority requirements to ensure proper running of the country office.
Role of OSD
The role of OSD is to provide policy guidance and support to the Regional and Country Offices as well as to exercise oversight over the use of the resources allocated to the FAOR network.
Role of DDGO
Assisted by OSD and OSP, DDGO reviews reports over the use of the FAOR network budget and assesses the need to intervene, including possible reallocation of any surplus among the regions.
Details about the monitoring function can be found in attached document: Monitoring of Budgets of Country Offices and Evaluation of related performance.
Budget Reporting
Latest content update: 01/06/2014
The FAO standard budget report is the PBR (Periodic Budget Report) which is to be prepared as at the dates set every year by OSP.
Guidelines for the Regional Offices Periodic Budgetary Report (PBR)
The Country Offices submit their PBRs to the relevant Regional Office which will be responsible for consolidating these into a single regional PBR to be submitted to OSP and OSD. This report should be kept separate from the one that concerns only the activities of the Regional Office.
The regional PBR for the Country Offices should consist of two parts:
- A summary report generated by COIN that provides an aggregation, at any given time, of the budget and financial information of the Country Offices in a given region. This report is the sum of the country PBRs but includes any forecasts for that portion of the FAOR regional allotment which is earmarked for special purposes (e.g. FAOR vehicles’ replacement) or as reserve.
- A narrative to be prepared by the Regional Office to accompany the above summary report, highlighting the major issues emerging from the analysis of the data.
On the basis of the PBRs prepared by the Regional Offices, OSD updates eBMM and prepares an aggregate report at the global level for submission to OSP together with an overall narrative report.
In addition to the standard PBR, Regional Offices may be required to submit ad hoc reports for review and analysis by DDGO.
