EITI Finance Committee Minutes of the Meeting of 8 July 2010

Transcription

1 Draft 1, 9 July 2010 EITI Finance Committee Minutes of the Meeting of 8 July July 2010, By Teleconference Participants Board Members Tony Hodge (London, Chair) Alfred Brownell (Monrovia on an interrupted line) Humphrey Asobie (Abuja) Julie McDowell (Edinburgh) Wouter Biesterbos (The Hague) Secretariat Eddie Rich (Oslo) Leah Krogsund (Oslo) 1. Agenda Review The circulated agenda was accepted. 2. Minutes of the Last Meeting, Actions Arising, Records Wouter asked about the funding formula established in When looking at the Financial Paper, he had noted many differences between supporting countries payment figures, and noted that some were not expected to contribute in He asked for an insight into the funding formula and asked how the Secretariat approached donors. Eddie replied by saying that the 2007 formula was based on the general principle of balance between the constituencies to ensure that the EITI was not beholden to any one sector. Norway offered the EITI a lump sum of $600,000. The balance was then divided 50/50 between governments and companies. Civil society fell under supporting countries, while institutional investors fell on the side of the companies. Civil societies provided $75K in 2008, nothing in The EITI was expecting $50K from civil societies in Implementing countries made their contributions through funding in-country implementation activities. The EITI approached all supporting countries for support in Funding of the Secretariat is voluntary and some countries have stated that they have no budget for the EITI in Efforts to get new contributors such as foundations are on-going but the EITI highlights that it will not spend a substantial amount of its time looking for funds. The Secretariat, on the other hand, would be concerned if a number of countries were to stop funding because the loss of funding from even one country ($250K) makes a significant impact on the EITI budget. Page 1 of 10

2 Wouter asked whether the contribution changed if more supporting countries came on board. He also wanted to know whether countries contribution was fixed at $250K. Eddie replied by saying that the EITI was not a membership organization and there was therefore no membership fee. All contributions were voluntary contributions. The Secretariat sought $250K from each supporting country, but EITI did not necessarily receive this amount, and that funding was subject to negotiations. Some countries like the US supported the multi-donor trust fund while some supported specific projects. There was no clear no clear pattern to funding. The record of the meeting was agreed. 3. Committee Terms of Reference Julie introduced the redrafted terms of reference which were intended to clarify and distinguish the roles of the committee in oversight of financial strategy and in monitoring and reviewing its implementation. Eddie confirmed that the new version covered all the elements that were included in the draft version. There was a discussion about whether the committee had oversight of the World Bankadministered multi-donor Trust Fund. Wouter and Eddie noted that the MDTF had its own accountability mechanism to the donors, and that the limits of the committee must be around complementary of the plans and budgets. Eddie noted that a MOU existed but this did not allow for the development of a joint work plan and budget. It was noted that there were also other complementary activities, particularly by bilateral development agencies such as the GTZ. The Terms of Reference was agreed as attached at annex 1. ACTION: 1. Eddie to send ToRs to Paulo at World Bank for endorsement. 2. Humphrey and Alfred to send any additional comments by Work Plan between now and Paris Conference The committee had two main tasks in the run-up to the Paris Conference. Task 1 Committee Report to the Dar Board Meeting on 2011 Budget It was agreed that to try to have a finance committee paper including 2010 accounts up to end of 31 August would put too much time strain on the committee. It was therefore agreed that committee present a paper showing the unaudited accounts from 1 Jan - 30 June 2010 only at the board meeting in October, alongside the proposed budget for Eddie mentioned that the sister document to the 2011 budget, the 2011 workplan, was to be discussed at the EITI retreat, scheduled for the 3 rd week of August. The first draft of workplan would be drawn up after the retreat and this may affect the committee s budget paper but the changes were expected to be minor. A more major review of whether the international management was fit for purpose financially and in human resources would be part of the EITI evaluation to be prepared for the conference but too late for this board paper. ACTION: Page 2 of 10

3 1. The Secretariat to circulate an outline of the finance paper for the October board meeting (attached annex 2). 2. EITI to organise a teleconference in the last week of August to discuss the first draft of the board paper. Task 2 Committee Report to the Paris Board meeting Eddie mentioned that the Secretariat had consulted the accountants and that the audited accounts were unlikely to be ready before 14 January. The committee felt that it was unrealistic to have this approved by the audit committee and then to prepare a Board paper in time for the Board paper deadline (most likely on 18 January). Three options were discussed: a) The committee could miss the deadline of circulating the board papers two weeks ahead of meeting and circulate the finance paper at a later date. b) The committee could present the finance paper at the Spring board meeting - after the conference (April/May 2011). c) The committee could circulate the paper for approval via board circular. The committee agreed that: a) The audited 2010 accounts be presented at the subsequent meeting following the Conference in February b) The committee would present a finance paper at the meeting in February This paper would include the unaudited accounts for c) The audit committee be informed of this decision. A new timeline for the Committee was set out on that basis (see annex 3). 5. Other Business There being no other business, the meeting ended at 12:30 CET. 6. Next meeting 11am (CET) on Thursday 26 August. Page 3 of 10

4 Annex 1 Final Terms of Reference for EITI Finance Committee The remit of the Finance Committee is to: provide oversight, direction and support for the financial strategy of the EITI Secretariat and EITI activities, including considering issues related to o funding of the EITI Secretariat and EITI activities o financial reporting o procedures for payments o procedures for maintaining cash balances. monitor and review implementation of the financial strategy for the EITI Secretariat including considering issues related to o receipt of funding contributions o budget planning o the use of funds in accordance with priorities established by the EITI Board o the format and adequacy of reporting to the EITI Board on the use of funds. Page 4 of 10

5 Annex 2 Outline of Board Paper on Summary of Jan June 2010 Accounts and 2011 Budget 1 1 Summary of Accounts 01 Jan 30 June 2010 The Secretariat presents the Board with a set of unaudited accounts for the period 01 January to 30 June Figures in summary: Jan June 2010, in USD Approved budget Actual contributions received as at June 2010 Actual expenditure as at June 2010 Estimated balance - total contributions 2010 Estimated expenditure Revenue received as at 30 June 2010 From Jan to June 2010, the Secretariat has received funding as detailed below. Countries & NGOs Companies Currency Norwegian Kroner These contributions do not include in-kind contributions e.g. the Government of Norway hosting cost of both the secretariat and the board meeting, and time inputs from all stakeholders. 1.2 Expenditure 1 January June 2010 Spending 01 Jan to 30 June 2010 Title Acc. Code Description Implementation 7336 Travel costs Other Implementations cost National Coordinators Total Implementation costs Outreach 7325 Travel costs Board Meetings 7334 Travel costs 7125 Other Outreach costs Total Outreach costs (actual) (actual) (budget allocation) (actual Jan - Jun) (forecast Jan- Dec) USD $ USD $ USD $ USD $ USD 1 Figures and text to be filled in August. Page 5 of 10

6 7312 Printing costs 7337 Translation costs 7310 Postage 7700 Other Board Meeting costs Total Board Meeting costs Conferences 7134 Other Conference costs Travel costs 7339 Translation costs 7338 Printing costs 7311 Postage 7313 Publications & Edting (incl video) 5960 Gifts etc. Total Conference Costs Communications 6820 Non-Board/Conference related printing costs 6825 Design of EITI publications Non-Board/Conference related translation costs 6940 Non-Board/Conference related postage costs Total Communications Costs Chairman's Support 7100 Salaries & taxes Rent Telephone Postage Printing Stationery Accounting costs Other office expenses Project consultants 6740 Main expenses (remuneration etc.) 7133 Travel related costs Total project consultants costs Staff related costs 5010 Salaries - permanent employees 5011 Housing contribution Wages - (interns) Holiday pay - ferie penger[1] Insurance - pension Employers tax (arbeidsgiveravgift) 5411 Tax on holiday money School fees Statutory pension premium[3] Tim Bittiger[2] Page 6 of 10

7 2910 Salary advances Total Salary Costs Other staff expenses 5220 Mobile telephone costs incl. office calls 5422 Moving costs 5510 Overtime costs Canteen expenses[4] Insurance - injury 5950 Insurance - travel Travel advances etc Staff courses/training expenses Total Other Staff Costs Office Expenses 6010 Write-off, assets 6300 Office rent, heating etc Rental - office equipment Cleaning expenses 6430 Inventory Establishment costs 6700 Accounting costs Miscellaneous costs 6800 Stationery Newspapers, books etc Telephone Entertainment expenses Internet costs Licences and royalties Total office expenses Contigency Total expenditure Comments [The Secretariat considers the approved budget of $3.8m for 2010 to be adequate. As a result of the under expenditure in 2009, the Secretariat will only actively be seeking funding for $3.3m in 2010.] 2 Proposed Budget Expenditure 2011 Estimated costs Description (actual) (actual) (Workplan Budget) (forecast) Proposed Budget USD $ USD $ USD $ USD$ USD $ Implementation Travel costs ,92 Page 7 of 10

8 Other Implementations cost ,31 National Coordinators ,09 Total Implementation costs , Outreach Travel costs ,87 Other Outreach costs ,45 Total Outreach costs , Board Meetings Travel costs ,07 Printing costs ,96 Translation costs ,36 Postage 5 270,44 Other Board Meeting costs ,59 Total Board Meeting costs , Conferences Other Conference costs ,97 Travel costs ,80 Translation costs ,18 Printing costs ,36 Postage 4 526,76 Publications & Edting (incl ,39 video) Gifts etc. 303,49 Communications Total Conference Costs , Non-Board/Conference related ,88 printing costs Design of EITI publications ,32 Non-Board/Conference related ,66 translation costs Non-Board/Conference related ,35 postage costs Total Communications Costs , Chairman's Support Project consultants Staff related costs Other staff expenses Salaries & taxes ,88 Rent ,36 Telephone ,85 Postage ,97 Printing ,78 Stationery ,68 Accounting costs ,28 Other office expenses ,09 Total Chairman s Support Costs , Main expenses (remuneration ,33 etc.) Travel related costs 9 243,33 Total Project Consultants , Costs Salaries - permanent ,94 employees Housing contribution ,98 Wages - (interns) ,10 Holiday pay - ferie penger[1] ,97 Insurance - pension ,37 Employers tax ,38 (arbeidsgiveravgift) Tax on holiday money ,93 School fees ,60 Statutory pension premium[3] ,37 Tim Bittiger[2] ,46 Salary advances - Total Salary Costs , Mobile telephone costs incl ,37 office calls Page 8 of 10

9 Moving costs - Overtime costs - Canteen expenses[4] ,5 Insurance - injury - Insurance - travel ,33 Travel advances etc. - Staff courses/training ,70 expenses Total Other Staff Costs , Office Expenses Write-off, assets ,40 Office rent, heating, cleaning ,70 etc. Rental - office equipment ,28 Cleaning expenses - Inventory ,64 Establishment costs 237,92 Accounting costs ,37 Miscellaneous costs ,30 Stationery ,19 Newspapers, books etc ,36 Telephone ,69 Entertainment expenses ,59 Internet costs ,95 Licences and royalties ,92 Total Office Expenses , Contigency Total Budgeted Expenses , Revenue Revenue required less contribution from: Actual Actual Actual Actual Funding Workplan Jan-June 2010 Forecast Workplan Forecast Government of Norway Total remaining of which Supporting countries and NGOs (50%) of which NGOs Supporting Countries Private sector (50%) of which Investors Leaving of which Oil and gas companies (2/3) Mining and minerals (1/3) Total Page 9 of 10

10 Annex 3 - EITI Financial Committee workplan and timeline up to 2011 Conference (revised) The finance committee faces two main tasks up to the 2011 Conference: Task 1 Committee Report to the Dar Board Meeting on 2011 Budget August - Draft board paper circulated to committee by secretariat (including 2011 budget and unaudited accounts Jan-June2010) August meeting of committee to discuss draft Board paper October probable date for final draft of 2011 Secretariat workplan. Consideration for need for meeting of finance committee to revise budget paper in light of 2011 workplan October deadline for submission of Board papers October Board meeting, Dar es Salaam Task 2 Committee Report to the Paris Board meeting 6. 9 January Draft board paper on unaudited 2010 budget outturn figures circulated to committee by secretariat January finance committee meeting to discuss the board paper January deadline for board papers February probable date of Paris board meeting. 10. April/May board meeting to discuss audited 2010 outturn figures. Page 10 of 10