Audit and Finance Sub-committee Report to the Steering Committee
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Transcript of Audit and Finance Sub-committee Report to the Steering Committee
Audit and Finance Sub-committeeReport to the Steering Committee
November 2013
Attendance in AFSCPresent Members
– Dorothy Manuel (Chair) via Skype– Kenzo HirokiSecretary– Catharina Sahlin-Tegnander
The AFSC would be in favour of increasing the number of members of the AFSC
Financial info to AFSC Chair for review and commentsMay 2013 - Nov 2013
Monthly liquidity reports Monthly budget follow-up and forecasts Monthly follow-up of commitments Discussions with the Secretariat on the policy
for fixed deposit of the Reserve Fund Approval of funds for the Global Dialogue Skype meetings with the Head of Finance
AFSC Report May 2013Remaining issues; 1. Hosting WAF and EAF -> Agenda item2. Contingency Reserve -> Request sent to the FPG –
not many responses – UK responded negatively3. The AFSC considers a change of procedure to
enable a more efficient handling of deposits of the Reserve Fund
4. Continuous fundraising beyond 2015 is vital to ensure stable growth of GWP budget -> Agenda item
Deposit of excess liquidity including the Reserve Fund
The SC has decided that the SC Chair shall approve all deposits
The AFSC considers a change of procedure to enable a more efficient handling;AFSC asked that SC Chair and Secretariat to discuss a
proposal for change The Secretariat will draft a policy to be approved by the
SC
Terms of Reference for the Audit of 2013 No comments on the ToR. Same as 2012 and the same audit fee
Procurement of audit 2014
Ernst & Young has had the assignment for 5 years
The Secretariat is asked to list pros and cons procuring for new auditors as well as including Ernst and Young as a candidate for new contract
The Nomination Committee formally proposes the audit firm
Work Programme 2014 - 2016
AFSC was searching for answers to;
Relations among GWPO, RWP and CWP, including the role of the Secretariat, to ensure the best performance of GWP as a whole
The expectation to CWP now and in the futureThe support to the CWP – how will it be positioned
and designed in the GWP system? What should be done to enable the CWPs to
increase financial sustainability?The funding strategy in 2015 and beyond – where
are the opportunities and challenges?
Discussed together with the PRSC – in addition;
Work Plan and Budget 2014Note; 46% increase in Secretariat staff costs 2012–2014 which will give budgetary pressure in 2015-Recommendation; Prioritize recruitment in 2014 so that recruitment of some staff is decided after secured fund in 2015-2016 is confirmed
Note; Regional core funds to increase by 10% in 2014Recommendation; Remain at this (i.e. 10% increased) level in 2015 only if funding is secured
Note; Some budget-lines have been based on unrealistic forecastsRecommendation; The Secretariat to examine budget-lines in order for more reliable forecasts through discussion with budget requesters
Work Plan and Budget 2014Budget in 2014 addressing fluctuation of revenue should be considered(1) Single-year budget items in 2014 should be considered in order to: avoid expenditure pressure in later years (e.g. by sharp increase
of core budget) help sustainable function of GWP networks in the future contribute to energized actions by CWP For example, by Establishing earmarked fund for seed money, as a pilot case, to
help CWP to draft project proposal to local donors (covering not hiring consultant but communication fee, visit to donors, etc.)
Establishing earmarked fund, as a pilot case, to help translation of GWP documents and materials into local languages
(2) Multiple revenue sources (other than bilateral donation) reflecting diverse business models should be sought in the long run
SC Discussion, particularly on (1), is requested
Work Plan and Budget 2014
The AFSC recommends approval of the 2014 budget
As agreements with Danida, Netherlands, Switzerland and the EC Mekrouare not yet in place the Secretariat is requested to present the confirmed agreements by the end of March 2014 for the AFSC.
AFSC recommends the Secretariat to carefully consider;Single-year budget items in 2014 should be considered in order to: avoid expenditure pressure in later years (e.g. by sharp increase of core budget) help sustainable function of GWP networks in the future contribute to energized actions by CWP
Reserve Fund 2014Secretariat reported that: Fund required to cover for an unforeseen closedown of GWPO
in 2014 is increased to Euro 1,836k due to increased budget The RF needs to be within the available equity (accumulated
surplus), currently Euro 1,571k There is no revenue item out of which fund can be used for RF
to meet increased requirement of 1,836k Deficit being Euro 265,000 There is no imminent prospect of unforeseen closedown of
GWPO in 2014 The AFSC recommends approval of a RF of Euro 1,571k The AFSC requests the Secretariat to propose solutions to
fill the gap If needed, Financial Partners should be consulted to find
out the solution
Risk Register
Note; The forecast 2013 and the budget 2014 includes legal fees of approximately Euro 80,000 in connection with staff complaints
Recommendation; Include this as a risk in the Risk Register and to
implement mitigation activitiesLessons from past and current cases should be
reflected in Risk Register. Discussion by HRSC is requested
Hosting West Africa, Eastern Africa, CEE, SITWA
West Africa; Agreement signed between West Africa and GWPO 25 Nov. 2013Review of procedures and financial management will be done Jan. 2014
Eastern Africa; Registered legal entity but not yet deemed capable of self hosting
Central Eastern Europe; Registered legal entity and in the process of signing a “self-hosting” agreement with GWPO
SITWA Project; Financial review was done in September 2013 (hosted by OMVS).Positive review with some minor recommendations for improved routines
STRATEGY
- Not discussed as time has been spent to solve imminent issues -
Thank you