1. OAS Indirect Cost Recovery (ICR) Policy and Procedures (Ver. 1)
Committee for Administrative and Budgetary Affairs (CAAP)
Development of a methodology for determining the scale of quota assessments of Member States for 2009 and subsequent years
Technical Working Group
August 2007
Ver.2
6/12/2018
OAS Indirect Cost Recovery (ICR) Policy and Procedures (Ver. 1)

2. Content
Considerations of the first Meeting of Experts carried out in March 2007.
Methodology for determining the scale of quota assessments of Member States.
Other considerations.
6/12/2018 2

3. I Considerations of the first Meeting of
Experts carried out in March 2007
6/12/2018

4. Considerations of the first Meeting of Experts carried out in March 2007
Refers to the quotas allocation methodology of the United Nations, with the incorporation of elements associated to the OAS.
Methodology Components
OAS UN
Statistical base period:
6 y 3 years
Income measure:
Gross National Income
Debt adjustment:
Debt stock
Low Per Capita income:
Threshold:
Median
Gradient:
80%
Low Per Capita income adjustment:
Below 30th percentile
Below threshold
Floor rate:
0.022%
0.001%
Maximum rate for Least Developed Countries:
0.010%
Ceiling rate:
59.470%
22%
Limits for increases/decreases in assessments
Higher/lower than 30%
N / A
6/12/2018 4 4

5. Considerations of the first Meeting of Experts carried out in March 2007
The parameters considered in the calculation of the draft version of the OAS’ quota scale (See Annex A-1in the document: Elements of a draft scale of quota assessments, in percentage terms, for 2009 and beyond):
Source of information: United Nations (UN) and ECLAC.
Statistical base period: 2000 – 2005.
Income measure: Gross National Income (GNI).
Debt adjustment: Debt stock.
6/12/2018 5 5

6. Considerations of the first Meeting of Experts carried out in March 2007
Low Per Capita income:
Threshold: Median of the GNI Per Capita adjusted 6 years and 3 years).
Gradient: 80%
Low Per Capita income adjustment: Below 30th percentile 6 years and years).
Floor rate: 0.022%
Maximum rate for Least Developed Countries: Needs definition (UN 0.010%)
Ceiling rate: %
Limits for increases/decreases in Member States’ assessments: Higher/lower than 30%
6/12/2018 6 6

7. II Methodology for determining the scale of
quota assessments of Member States
6/12/2018 7 7

8. Methodology for determining the scale of quota assessments of Member States
The methodology considered by the Working Group is based on the arithmetic average of results obtained using national income data for base periods of three and six years for the periods and
Data was obtained through United Nations Statistical Division website, and additional data was compile using ECLAC’s annual reports.
The following steps describes the calculations included in the documents distributed for the discussion of the experts.
6/12/2018 8 8

9. Methodology for determining the scale of quota assessments of Member States
Steps for the calculation of the scale of quotas:
Step 1: GNI figures in US dollars are summed and used to calculate shares of GNI for each Member State. The figures are calculated for the statistical based period of 6 and 3 years. See Annex C.
Step 2: The debt adjustment for each statistical base period is deducted to derive debt-adjusted GNI for each period year, based on an assumed repayment of external debt within 8 years. See Annexes F y G.
Step 3: Application of the low Per Capita income adjustment. This involves the calculation of the median debt-adjusted Per Capita GNI during each statistical base period. These figures are the thresholds for the low Per Capita income adjustments. See Annex G.
6/12/2018 9 9

10. Methodology for determining the scale of quota assessments of Member States
Step 4: The GNI of each country whose debt-adjusted Per Capita GNI was below the 30th percentile is reduced by 80% (gradient) of the percentage by which its debt-adjusted Per Capita GNI is below the threshold. See Annex I.
Step 5: The total amount of the low Per Capita income adjustments is reallocated pro rats to Member States whose debt-adjusted Per Capita GNI was above the 30th percentile, except the ceiling country. See Annex I.
Step 6: The minimum assessment rate, or floor (0.022%), is applied to those Member States whose rate is lower. Pro rata reductions apply to this least developed countries ceiling are apply to other Member States, except the ceiling country.
6/12/2018 10 10

11. Methodology for determining the scale of quota assessments of member states
Step 7: (It remains for definition in the methodology). Application of the Least Developed Countries rate (0.010%) to those Member States whose rate is lower than the minimum rate.
Step 8: Application of the maximum assessment rate, or ceiling (59.470%). Increases corresponding to the resulting reduction for the ceiling country is applied pro rata to other Member States, except those affected by the floor rate and least developed countries rate. See Annex J.
Step 9: An arithmetic average of the final scale figures is calculated for each Member State, using statistical base periods of 6 and 3 years. See Annex A.
6/12/2018 11 11

12. Methodology for determining the scale of quota assessments of member states
Step 10: Application of the maximum limits for increases/decreases in the Member States’ assessment, established in 30%. Corresponding increases/decreases are distributed pro rata among Member States, except those affected by the floor rat, ceiling rate and least developed countries rate. See Annex B.
6/12/2018 12 12

13. III
Other considerations
6/12/2018 13 13

14. Other considerations Least developed countries.
Identify any other component in the methodology to be considered.
CP18897E
6/12/2018 14 14