GS/OAS - Secretariat for Administration and Finance GS/OAS Indirect Cost Recovery (ICR) Overview GS/OAS SAF – October 17, 2016

GS/OAS - Secretariat for Administration and Finance Background Why does the General Secretariat need an ICR policy? To cover the indirect administrative and management costs individual projects collectively impose upon the General Secretariat. To implement a sound cost-recovery policy ensuring transparency and reducing the use of resources from one program or project to subsidize others. To distribute and charge equitably, transparently and consistently the operational costs associated with the administration of Specific Funds. The GS/OAS receives multiple funding streams from various sources and all require efficient, effective record-keeping and an environment of transparency and accountability. To make more efficient use of Regular Fund resources. The GS/OAS General Standards established the Fund for Indirect Cost recovery (FICR) which is outlined primarily in articles 78 and 80.

GS/OAS - Secretariat for Administration and Finance Background ICR Policy Authority CP/Res. 919 (1597/07) amended General Standards Article 80: which states “The budget for every project of the General Secretariat funded all or in part by specific funds and trust funds shall include all the Direct Costs, as well as a line item for recovery of Indirect Costs, and it shall indicate their source of financing.” Executive Order 07-01 Rev. 1 established a uniform policy for ICR contributions channeled through the GS for all specific and trust funds projects. 11% for Member States and 12% for non-Member States and other entities. Executive Order 05-14 Corr.1 established that the Resource Mobilization Committee shall develop and define mechanisms to calculate direct and indirect costs of projects and establish a reasonable overhead charge to be included in all project budgets.

GS/OAS - Secretariat for Administration and Finance Background ICR Budgeting Beginning in 2013, the ICR Funds became part of the Program-Budget ICR budget ceiling calculated at 90% of average of previous three years of ICR income. Budget ceiling adopted for the following three years. Specifically, the ICR budget ceiling of USD$5,250,000 for years 2013, 2014 and 2015, was established at 90% of the average ICR income of years 2009, 2010 and 2011 Currently, the ICR budget ceiling of USD$4,500,000 for years 2016, 2017 and 2018 was established at 90% of the average ICR income received during years 2012, 2013 and 2014.

GS/OAS - Secretariat for Administration and Finance ICR-Related Recommendations from Plan for Management Modernization AG/RES. 2892 (XLVI-O/16) Implement measures by applying an ICR rate of 13% and eliminate the option to waive or reduce the ICR. Submit for PC consideration the possibility of raising the ICR to 20% on Specific Fund contribution under $50,000. Submit for PC consideration the possibility of excluding ICR charges to the Inter-American Human Rights System.

GS/OAS - Secretariat for Administration and Finance Status of the Proposal to Change the Current ICR Policy Draft of revised Executive Order 07-01 Rev.2 with the Secretary General for approval to implement measures by applying an ICR rate of 13% and eliminate the option to waive or reduce the ICR. CP/doc. 5247 - Note sent by the Secretary General to the Chair of the Permanent Council for consideration of the possibility of raising the ICR rate to 20% for Specific Fund contributions under $50,000 and consideration of the possibility of excluding ICR charges for funds contributed to the Inter-American Human Rights System. http://scm.oas.org/doc_public/ENGLISH/HIST_16/CP36762E04.doc    

GS/OAS - Secretariat for Administration and Finance ICR Financial Overview 2013 – 2015 and Projected 2016

GS/OAS - Secretariat for Administration and Finance ICR collection by Chapter for 2015

GS/OAS - Secretariat for Administration and Finance ICR Collection by Chapter last three years

GS/OAS - Secretariat for Administration and Finance ICR Execution by Chapter last three years

GS/OAS - Secretariat for Administration and Finance ICR Balances by Chapter last three years