Decision on the Budget of the African Union for the 2018 Financial Year

DECISION ON THE BUDGET OF THE AFRICAN UNION
FOR THE 2018 FINANCIAL YEAR
Doc. PRCZRpt(XXXIV)

The Executive Council,

1. TAKES NOTE of the report of the PRC and ENDORSES the recommendations contained therein;

2. APPROVES a total budget of US$769, 381,894 for the African Union for the year 2018, broken down into US$458,763,038 Operating Budget and US$310,618,856 Programs budget to be financed as follows:

i) A total amount of US$318,276,795 to be assessed on Member States;

ii) A total amount of US$451,105,099 to be raised from International partners.

3. ADOPTS the 2018 budget breakdown among the AU Organs as follows:

31st Ordinary Session of the Executive Council, 27 June to 01 July 2017, Addis Ababa

4. ALSO ADOPTS the 2018 budget breakdown by expense components as follows:

5. REQUESTS the Commission:

i) to refer to the Peace and Security Council the funding gap of US$81,846,337 for AM ISOM created due to a decision by the European Union to withdraw 20% of their annual funding;

ii) to coordinate and oversee the budget process from all Organs before submission to the competent PRC Sub-Committee for scrutiny and endorsement;

iii) to use a new format in preparing the AU budget which should be backed by a projection on future remittance of Member States and any other relevant information in accordance with the related Decisions adopted by the AU in order to facilitate the efficient consideration and adoption by Member States;

6. URGES the Commission to further improve and strengthen the budget process by introducing a budget that is focused on priorities along with establishing a mechanism to allow results based assessment and monitoring;

7. CALLS UPON the Commission to harmonize all allowances across all AU Organs and bring to the PRC for endorsement;

8. REQUESTS:

i) the PRC at the fifth year of implementing Decision Assembly/AU/Dec.578(XXV), on the Scale of Assessment and Alternative Sources of Financing the African Union, to assess the level of the implementation of the latter and make the appropriate recommendations to the Executive Council with the objective to fund 100% of the Operational Budget, 75% of the Program Budget and 25% of the Peace Support Operations by 2020, with a view to aligning the implementation timeframe with the actual capacity of Member States to pay;

ii) the PRC, in accordance with the AU Financial Rules, to propose modalities for the effective and efficient management of the Reserve Fund by the Commission;

iii) the Commission to work out all legal, structural and financial implications affecting the relocation of ECOSOCC to Lusaka, Zambia and submit to the PRC for supplementary budget consideration;

iv) the Commission to utilize the comparative advantage of Member States to finance the implementation of specific approved projects or programmes, through financial or in-kind contribution received from a Member State concerned that has been specifically earmarked by the AU for that purpose

9. RECOMMENDS the 2018 Budget of the African Union for consideration and adoption by the Assembly.