1. Trust Funds for the Vienna Convention and the Montreal Protocol
COP11/MOP29
20-24 November 2017, Montreal, Canada
Budget Committee
Presentation by Ozone Secretariat

2. Trust Fund for the Montreal Protocol
Content
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Trust Fund for the Montreal Protocol
Proposed revised 2017 budget and proposed 2018 and 2019 budgets
Update on cash balance
Proposed contributions for 2018 and 2019
Trust Fund for the Vienna Convention
Proposed revised 2017 budget and proposed 2018, 2019 and 2020 budgets
Projected cash balance
Contribution options for 2018, 2019 and 2020

3. Trust Fund for the Montreal Protocol
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Proposed revised 2017 budget
Overall decrease of $209,050 ($185,000 decrease in meeting cost of the COP11/MOP29 due to interpretation services being provided by Government of Canada + the corresponding $24,050 in PSC)
Scenarios presented as information to the budget committee to show increase in cash balance due to the estimated Canadian contribution of $190,000, not reflected in the budget documents.
Proposed 2018 and 2019
Budgets for each year include a 2% increase in salary costs and 2% increase in meeting costs in 2019 over 2018
All other costs remain constant
No new posts

4. Montreal Protocol – 3 Year Budget Trend

5. Montreal Protocol – 3 Year Budget Trend
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6. Progression of Approved Budgets, Expenditure,
and Assessed Contributions
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7. Montreal Protocol – Updated Cash Position
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Cash Position at 31 Dec 2016
2,486,685
Contributions received 31 October 2017
4,745,163
Expected contributions by 31 December 2017
327,648
2017 revised budget
5,145,954
Projected cash position 31 December 2017
2,413,542
Estimated outstanding contributions 31 December 2017
3,964,213
Statutory cash reserve 15% of 2017 budget
771,893
Proposed 2018 budget
5,614,251
Proposed 2018 contribution level

8. Montreal Protocol Trust Fund – Key messages
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Cash crisis averted due to strict budget control, paid up contributions and earmarked contributions in 2016
Instead of the initial forecast of -1million, the cash balance at the end of was 2.5 million
The projected cash balance at the end of 2017 is 2.4 million
The projected cash balance can adequately cover the required reserve
No longer necessary to build up a reserve by adding 7.5% on the budget
Secretariat recommends that the contribution level is equal to the proposed budgets for 2018 and 2019

9. Trust Fund for the Vienna Convention
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Proposed revised 2017 budget
The proposed revised budget for 2017 has decreased by $54,404
$4,145 decrease in salary costs
$14,000 decrease in meeting costs (10th ORM)
$25,000 decrease in travel of Article 5 (10th ORM)
$5,000 decrease in reporting costs (10th ORM)
Proposed 2018 ,2019 and 2020 budgets
2% salary increase for each year
No COP/ORM in 2018 and 2019
COP/MOP meeting cost for 2020 is at the 2017 level
ORM meeting cost 5,000 over the 2017 revised level

10. Vienna Convention Trust Fund– 3 Year Budget Trend

11. Vienna Convention– 4 Year Budget Trend
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12. Vienna Convention Progression of Approved Budgets, Expenditure, and Assessed Contributions 2008-2017
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13. Vienna Convention– Cash projection to 2020
Updated as of 31 October 2017
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14. Vienna Convention– Cash Projection to 2020
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Cash Position at 31 Dec 2016
1,566,819
Contributions received 31 October 2017
684,159
Expected contributions by 31 December 2017
5,848
2017 revised budget
1,308,964
Projected cash position 31 December 2017
974,862
Estimated outstanding contributions 31 December 2017
741,977
Statutory cash reserve 15% of 2017 budget
196,345
Projected cash balance at 31 Dec 2020
-202,296

15. Funding options for 2018, 2019 and 2020 contributions
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Option 1 (recommended)
Option 2
Option 3
Level of contributions: $986,000 for the 3 years
Option parameters:
Contribution level equal to the average of the proposed budgets for the 3 years
Projected cash balance at the end of 2020: $860,855
Level of contributions:
2018: $788,167
2019: $800,981
2020: $1,370,010
Contribution level equal to the proposed budget for each of the 3 years
2018: $603,000
2019: $1,178,079
2020: $1,178,079
Contribution level maintained at the 2017 level for 2018 equal to 50% of the difference between the total budget for the 3 years and the 2018 contribution

16. Additional funding options for 2018, 2019 and 2020 given the updated cash balance
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Option 4
Option 5
Option 6
Level of contributions:
2018: $603,000
2019: $603,000
2020: $1,305,296
(Average: $837,100) (39%)
Option parameters:
Contribution level set at the 2017 level for 2018 and 2019 and increased to $1,305,296 in 2020 to ensure a cash balance of $500,000 at the end of 2020
Projected cash balance at end:
2018: $762,695
2019: $564,714
2020 $500,000
2020: $1,105,296
(Average: $770,432) (28%)
Contribution level set at the 2017 level for 2018 and 2019 and increased to 1,001,641 in 2020 to ensure a cash balance of $300,000 at the end of 2020
Projected cash balance at end 2018: $762,695
2020: $300,000
2020: $1,005,296
(Average: $737,100) (22%)
Contribution level set at the 2017 level for 2018 and 2019 and increased to 1,005,296 in 2020 to ensure a cash balance of $200,000 at the end of 2020
2020: $200,000

17. Vienna Convention Trust Fund – Key Messages
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Projected cash balance at 31 Dec 2020 is -202,296
3 options to maintain the cash balance at the 2017 level and increase contributions to match the budgets for the years 2018, 2019 and 2020
3 additional options to decrease the cash balance to 500K, 300K and 200K
How to include the 190,000 Canadian contribution for the COP/MOP into the two Trust Funds?

18. Budget approval and level of contribution
for decisions on the budgets
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Trust Fund for the Montreal Protocol (XXIX/[AA])
Approval of the revised 2017 budget
Approval of the proposed budget for 2018
Take note of the 2019 budget
Decide on the level of assessed contributions
Trust Fund for the Vienna Convention(XI/[AA])
Approval of the proposed budgets for 2018,2019,2020
Decide on the level of assessed contributions for 2018,2019 and 2020

19. THANK YOU!