1. ICAO TECHNICAL COOPERATION BUREAU
Financial and Budgetary Control and Audit

2. 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

3. FINANCIAL ADMINISTRATION OF ICAO
ICAO Financial Regulations
ICAO Finance Branch

4. 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

5. 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

6. 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

7. 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

8. 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

9. TYPES OF BUDGETS United Nations Development Programme (UNDP)
Trust Fund
Management Service Agreement (MSA)
Civil Aviation Purchasing Service (CAPS)

10. UNDP Budgets Standard budget format
(Main budget components discussed later)
International experts and consultants based on pro forma costs
Core funds – from UNDP’s own resources

11. 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

12. 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 Purchasing Service (CAPS) Budgets
Meet aviation equipment needs
Procurement and technical support services fees
Procurement Section of TCB

15. 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)

16. FINANCIAL AND BUDGETARY CONTROL
ICAO Financial Regulations and Rules
Funds required before implementation
Budgetary provisions for activities
Project budgets are closely monitored

17. 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

18. FINANCIAL REPORTING
Contributions received are credited to separate funds
Quarterly financial statements are provided

19. INTERNAL AND EXTERNAL AUDIT OF ICAO
Internal Audit
Office of Programme Evaluations, Audit and Management Review
Conduct evaluations, audits and reviews of the Organization’s operations
Promote economic and efficient use of resources

20. INTERNAL AND EXTERNAL AUDIT OF ICAO (continued)
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

21. 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.