Programme Cooperation Agreement 2010 – 2011

10.1.3 Expenditures versus funding 2010-11 In 2011, income was generated from 126 projects and/ or individual contracts, compared to 143 in 2010, reflect- ing a strategy of rationalisation. As of 31 December 2011, GRID-Arendal’s work programme encompassed 88 active projects. In 2010 a funding reserve of MNOK 7.4 was carried over from the previous year and distributed as shown in Ta- ble 3. The funding reserve is calculated as payments from external sources less the cost of completed or committed work, and thereby represents the balance of funds avail- able for delivering committed activities under the work programme. In 2011 GRID-Arendal’s funding reserve was 28% lower than the previous year (i.e. from MNOK 7.4 in 2010 to MNOK 5.3 in 2011). 85 Total project expenditures for the period (MNOK 95.3) exceeded the available fund- ing (MNOK 86.5) by 9%, or MNOK 8.8. This shortfall is

covered by a combination of the funding reserve and an allocation from GRID-Arendal´s equity reserve.

As stated in the 2010 MoFA report, the entire project port- folio over the period 2006-2010 was reconciled during 2010. Completed projects were closed and, where neces- sary, losses were recorded. A total of MNOK 3.8 was real- located from the GRID-Arendal accumulated surplus from 2009-2010 to cover the verified shortfall. A subsequent internal financial audit covering a longer pe- riod (2007-2011) confirmed that the funds applied to the verified shortfall were generated on the basis of the finan- cial results reported for the period 2007-2009. Further, the audit revealed that a certain proportion of the financial re- sults during this period were recorded in error, which has resulted in a proportional write down of GRID-Arendal’s equity (ref. external audit dated 7 February 2012 Annex 3).

PROGRAMME 2008-09 TO 2011 Transfer 2010 (MoFA report 2008-09)

Adjustment

Actual Funding 2010/2011

Expenditure 2010/2011

Variance (transfer into 2012)

MARINE ENVIRONMENT: A. UNEP Shelf Programme MARINE ENVIRONMENT: B. Management of the Marine Environment MARINE ENVIRONMENT: C. Data Management, Visualization and Tools POLAR AND CRYOSPHERE ENVIRONMENTAL ASSESS- MENTS AND INFORMATION

-291

-4

19,945

19,859

-209

1,250

311

12,245

13,745

60

133

7

4,222

4,362

0

3,382

1,331

17,324

22,401

-364

2,361

1,888

32,202

33,789

2,661

OTHER PROJECTS

536

-37

568

1,101

-34

TOTAL

7,372

3,496

86,505

95,257

2,116

Table 3: Expenditure versus funding 2010-2011 and impact on funding reserves (KNOK)

10.2 Budget 2012 86

10.2.1 Projected funding

85. The largest reserves are in the Environmental Assessments and Information Programme, where projects are either funded biennially, start up is delayed and awaiting matching external funding, or funding has been paid in advance but the project activities have not yet com- menced. 86. For 2012 the financial situation is reported by four divisions: – Ma- rine, Polar and Cryosphere, Capacity Building and Assessments, and Communication and Outreach. 87. The largest projects with secured external funding are Himalayan Climate Change Impact and Adaption Assessment (HICIA), Many Strong Voices, Interpol, Fredskorpset, UArctic, Deep Sea Minerals, Cas- pian Information Centre, UNEP MAP.

The Board-approved funding budget of MNOK 58.1 for 2012, distributed by programme area, appears in Fig- ure 6 below. Secured external funding (i.e. contracted) totals approximately MNOK 14.0. 87 The budget includes MNOK 4.5 MoE core funding, MNOK 20.0 MoFA funding, MNOK 6.7 UNEP funding and MNOK 27.0 other external funding. In the event MoFA funding of MNOK 20.0 and core funding from MoE of MNOK 4.5 is secured for 2012, three-quarters of the total projected funding required for 2012 activities will have been obtained.

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