INTER-AMERICAN DEFENSE BOARD CY 2017 BUDGET REQUEST Introducao com as boas vindas e com a satisfacao da JID em receber a Secretaria de Administracao e financas da Secretaria Geral da OEA Presentation to the Comitee on Adimistrative and Budgetary Affairs (CAAP) September 27nd, 2016

OAS PILLARS A Instituicao JID esta diretamente ligada ao pilar de SEGURANCA MULTIDIMENSIONAL da OEA. A JID deveria ser parceira da CSH e da SSM.

IADB PURPOSE The purpose of the IADB is to provide the OAS and its member states with technical and educational advice and consultancy services on matters related to military and defense affairs in the Hemisphere, in order to contribute to the fulfillment of the OAS Charter. A PARTIR DA MISSAO e possivel verificar quais atribuicaoes estao ligadas a organizacao.

EVOLUTION OF THE IADB BUDGET Deferred Maintenance Mandates Civilian Pay *---Not to Scale

EVOLUTION OF THE IADB BUDGET IADB & IADC Como uma forma de compensar as constantes reducoes orcamentarias, a JID tem lancado mao de reduzir sua mao de obra de funcionarios civis, ate ter atingido um valor minimo para suas atividades.

EVOLUTION OF THE IADB BUDGET Regular Fund

EVOLUTION OF THE IADB BUDGET Regular Fund Personal Civil

CY 2015 BUDGET ANALISYS Must Pay Accounts Footnotes: 1 Over 80% of IADB Budget consumed by non-discretionary activities 2 Represents income received as of December 31st, 2015 3 Does not include $1,781,019 for renovations to Army buildings leveraging IADB Contracting Mechanisms 4 Over 21% of the IADB budget returns to the OAS for expenses (Audit, Retiree Life/Health Ins, Building Insurance) 5 US contributions IAW Article 27 of IADB Statues based on requirements of the donor

CY 2016 BUDGET ANALISYS Must Pay Accounts Footnotes: 1 Over 80% of IADB Budget consumed by non-discretionary activities 2 Does not include $1,781,019 for renovations to Army buildings leveraging IADB Contracting Mechanisms 3 Over 21% of the IADB budget returns to the OAS for expenses (Audit, Retiree Life/Health Ins, Building Insurance) 4 US contributions IAW Article 27 of IADB Statues based on requirements of the donor

Budgetary Impacts Issues Over 80% of the IADB Budget are fixed-cost activities and must-have funds; with the majority of the budget tied to administrative expenses, not much is available for technical advisory activities and specialized education Since 2000 the IADB has continually had to reduce the staff – institutional memory Lack of adequate funding has prevented current employees to receive updated payrolls (current wages date back to 2009); employees have lost 17% in purchasing power since 2009 Deferred maintenance to many critical requirements; problems become more expensive overtime; No ability to procure IT equipment and furniture, since they break due to lack of funds for programmed life-cycle replacement; heavily reliant on donations- often previously used; Over-reliance on US Funds to operate an INTERNATIONAL College providing an ACCREDITED Master of Science Degree

CY 2017 BUDGET REQUEST $2.5M

Conclusions Without sufficient funding: IADB cannot fully meet its commitment to the OAS and to the Member States to provide technical and advisory services IADB, through IADC, will not be able to provide an accredited Master of Science to the OAS member nations (now funded by US contributions and limited OAS regular funds) It will not be able to retain remaining civilian employees, endangering institutional memory

Questions & Considerations