1. (Item 3 of the provisional agenda for the preparatory segment)
Budget of the Trust Fund for the Montreal Protocol and Financial Reports on the Trust Funds for the Vienna Convention and the Montreal Protocol
(Item 3 of the provisional agenda for the preparatory segment)

2. Meeting – everyday Draft decision by Friday at the latest
The tasks of the Budget Committee
The Budget Committee is expected to:
Review the financial report for 2017
Agree on
Revised 2018 budget
Budget for 2019 and levels of contributions for 2019
Indicative budget for 2020 and levels of contribution for 2020
Review the results-based budgets (RBB)
Agree on the next steps
Agree on the draft decision to present to the plenary for consideration for adoption (30/3/Rev.1)
Meeting – everyday Draft decision by Friday at the latest 2

3. Financial report for 2017 - highlights UNEP/OzL.Pro.30/5
Contents
Financial report for highlights UNEP/OzL.Pro.30/5
Revised budget for 2018
Budget proposals for 2019 and 2020 UNEP/OzL.Pro.30/4/Rev.1
Results-based budgets UNEP/OzL.Pro.30/4/Rev.1
Next steps 3

4. Special circumstances affecting 2017 budget utilization
Financial Report for 2017 – highlights
(UNEP/OzL.Pro.30/5)
Utilization rate = 65%
Special circumstances affecting 2017 budget utilization
Higher than expected programme support cost allocation
Provision of earmarked funds from EU for A5 travel
Unplanned earmarked contributions from parties
Relatively low utilization does not indicate a lack of budgetary discipline
The savings add to the fund balance
Reserves & fund balance = $7.9 million
Cash balance = $5.3 million 4

5. 2018 Budget proposals are provided in traditional format
Revised budget for 2018 and
Budget proposals for 2019, 2020
(UNEP/OzL.Pro.30/4/Rev.1)
Budget proposals are provided in traditional format
Assessed contributions for the budgets proposed are also provided
2018
Revised 2018 budget is $220,000 less than the approved budget
Savings (personnel, OEWG40 and MOP30) now in reporting costs (data reporting, website)
Expected utilization rate for the proposed revised budget for 2018 = 94% 5

6. Revised budget for 2018 and
Budget proposals for 2019, 2020
(UNEP/OzL.Pro.30/4/Rev.1)
2019 & 2020
Pursuant to XXIX/24, proposed and ZNG budgets are presented for 2019 and 2020
proposed budgets - based on the usual, cost category budgeting by the Secretariat
ZNG budgets – based on the proposed revised 2018 budget (2019 budget at the same level as 2018 revised budget and 2020 budget $307,360 less because of additional funds in VCTF) 6

7. Summary of the budget proposals7

8. Objective 1: Finance and logistics of meetings
Results-based budget (RBB)
(UNEP/OzL.Pro.30/4/Add.1/Rev.1)
Objective 1: Finance and logistics of meetings
Objective 2: Substantive support to the parties, Assessment Panels and subsidiary bodies
Objective 3: Implementation of the Kigali Amendment to the Montreal Protocol
Objective 4: Manage data/information and compliance
Objective 5: Strategic communication activities
Objective 6: Ensure cooperation with other agreements and programmes
Expected accomplishments, indicator of achievement and target dates for each objective
Budget for each accomplishments – MP, VC, PSC 8

9. Potential benefits and challenges of RBB
Results-based budget (RBB)
(UNEP/OzL.Pro.30/4/Add.1/Rev.1)
Potential benefits and challenges of RBB
More meaningful presentation of Secretariat activities
Clearer relationship between “inputs” to “outputs”
Could enhance planning, prioritization, monitoring, reporting and assessment
but..
Is it really appropriate for Secretariat, given the year-by-year work planning?
Implementation may require changes, e.g., to improve synchronization between the two trust funds
Financial system does not support recording and reporting by objective 9

10. Budget presentation from next year?
Next steps?
Budget presentation from next year?
RBB has been useful in better understanding the Secretariat's operations and may be further developed in the coming years
Practicality issue – timing of decisions and budget approval
Budget format in the decision?
UNEP has been developing RBB in the recent years but Umoja still supports recording by traditional budget lines
Format used by UNEP under the umoja system 10

11. Proposed 2019 Budget format for Umoja system – a hybrid
Next Steps?
Proposed 2019 Budget format for Umoja system – a hybrid 11

12. If parties wish to reduce the cash balance, options could include:
Next steps?
Cash balance?
Forecast cash balance at the end of 2018 is $5.5 million, out of which 15% required cash reserve is $844,595
Available cash balance of $4.7 million is equivalent to 85% of the proposed budget for 2019
If parties wish to reduce the cash balance, options could include:
Keeping the contributions at 2018 level (i.e. ZNG), approving the 2019 proposed budget, drawing down from cash balance to cover the deficit
Approving a ceiling amount outside the approved budget, to fund specific activities which draw down on the cash balance a 12

13. Additional points the Secretariat would like to mention
Next steps?
Additional points the Secretariat would like to mention
The Secretariat has calculated the proposed budgets based on prudent and lean budgeting.
More accurate budgetting for meetings based on actual venues
New budget line: public awareness and communication – important 13

14. Thank you
ozone.unep.org