Decision on the Draft 2019 African Union Budget and 2018 Supplementary Budget

DECISION ON THE DRAFT 2019 AFRICAN UNION
BUDGET AND 2018 SUPPLEMENTARY BUDGET
Doc. EX.CL/1094(XXXIII)

The Executive Council,

1. TAKES NOTE with appreciation of the Report of the PRC resulting from the first Joint Sitting of the PRC Sub-Committee on General Supervision and Coordination on the Administrative, Budgetary and Financial Matters and the PRC Sub-Committee on Programmes and Conferences as well as the F15 Committee of Experts and ENDORSES the recommendations contained therein;

2. APPROVES a supplementary budget of the African Union for the 2018 financial year for a total of US$ 5,042,440 as follows:

(i) Conference Management and Publications for online translation fee with an amount of US$ 71,280;

(ii) Africa CDC: activities related with EBOLA with a total amount of US$ 4,181,160;

(iii) Programming, Budgeting, Finance and Accounting: Consultancy services for assessment of property and plant of the African Union with an amount of US$ 790,000.

3. APPROVES a total budget of US $ 681, 485, 337 for the African Union for the 2019 financial year divided as follows:

(i) Operating budget: US$ 158,459,118 to be financed by Member States;

(ii) Programme budget: US$ 249,757,079 to be financed as follows:

a) US$ 110,257,890 assessed on Member States;

b) US$ 139,499,189 to be solicited from International partners.

(iii) Peace Support Operations: US$ 273,269,140 to be financed as follows:

a) US$ 11,328,753 assessed on Member States;

b) US$ 261, 940,387 to be solicited from International partners.

4. ACKNOWLEDGES the efforts in making the AU 2019 Budget more efficient and effective and DIRECTS the Commission to focus on fewer priority areas and avoid duplications;

5. REQUESTS the Commission to initiate an urgent independent audit of PAP and put on hold the release of the 2019 funds of PAP until completion of the audit exercise with ring-fencing salaries for staff and critical operational costs including utilities, such audit should be concluded by October 2018;

6. FURTHER REQUESTS the PRC to consider the Audit Report and conclude its consideration no later than 15 November 2018, and based on the findings take appropriate action and report back to the Executive Council at the February 2019 Summit;

7. DECIDES that the President of PAP shall refrain from adopting decisions with regard to staff disciplinary measures without prior approval from the Chairperson of the AU Commission until the audit is completed;

8. DIRECTS the Commission:

(i) to undertake a review of the organisational structure and an independent human resource audit of its staff establishment (for regular and short term staff) in order to address duplications, functional overlaps, assert their relevance and financial implications, among others, and report to the February 2019 Summit;

(ii) to undertake a performance audit of the budget execution of the Union, and report to the February 2019 Summit;

(iii) to institute an independent audit of the Reserve Fund in order to establish a baseline from which to monitor its management and utilisation and to report to the PRC through the relevant Sub-Committee;

(iv) to implement the Executive Council Decision EX.CL/Dec.815(XXV) on non­compliance without delay;

(v) to ensure that the funding of all activities is reflected through the budgetary process;

(vi) to strengthen the quarterly reporting mechanism on the execution of the budget for submission to the Joint Sitting of the PRC Sub-Committee on General Supervision and Coordination on the Administrative, Budgetary and Financial Matters and the PRC Sub-Committee on Programmes and Conferences as well as the F15 Committee of experts ;

(vii) to develop a recommendation-monitoring matrix to track implementation of all recommendations of the Joint Sitting of the PRC Sub-Committee on General Supervision and Coordination on Budgetary, Financial and Administrative Matters, and the Sub-Committee on Programs and Conferences as well as the F15 Committee of experts, as adopted by the PRC;

(viii) to comply with the relevant provisions related to financial, structural and legal implications.

9. DECIDES:

(i) that the budget session for the year 2020 and beyond should begin with the presentation of internal audit, performance reports, the budget framework paper (BFP) and budget ceiling for consideration by the relevant Joint Sitting of the PRC Sub-Committee on General Supervision and Coordination on Budgetary, Financial and Administrative Matters, and the Sub-Committee on Programs and Conferences as well as the F15 Committee of experts;

(ii) that all partner funds should be centralized within the Directorate for Strategic Policy Planning, Monitoring and Evaluation and Resource Mobilization and that extra budgetary funding of activities should not be tolerated;

10. REQUESTS the Accounting Officer of the Union to certify budget proposals against set criteria prior to submission to the Joint Sitting of the PRC Sub- Committee on General Supervision and Coordination on Budgetary, Financial and Administrative Matters, and the Sub-Committee on Programs and Conferences as well as the F15 Committee of experts;

11. ALSO REAUETSTS that all proposed decisions presented to the Assembly and Executive Council should indicate the structural, legal and financial implications and assessment of activity duplication across departments and organs;

12. DECIDES to reconfigure the composition of the Ministerial Committee on Scale of Assessment to include the Committee of Fifteen Ministers of Finance (F15).