CURRENT FINANCIAL SITUATION. The current forecast shows decreased expenditure and increased revenue leading to a reduction in the ex- pected deficit from US$ 177,553 to US$ 61,205 for 2006.
CURRENT FINANCIAL SITUATION. Every year the Secretariat is faced with the difficult task of developing a budget with expenses that are based upon anticipated levels of income from vessel assessments. Unfortunately, changes in vessel own- ership or status (active vs. inactive) during the year will result in the IATTC having to cover deficits of the AIDCP out of its operating funds, thus exceeding the 30% maximum funding level approved by the IATTC, or further increasing the AIDCP deficit. An increase in the surcharges for late payment of fees was recommended at the 22nd Meeting of the Par- ties in October 2009, but that was not agreed. A nominal increase in vessel assessments of USD 1.55 per cubic meter (m3) of well volume was again proposed at the 23rd and 24th Meetings of the Parties, in Sep- tember 2010 and October 2011 respectively, (Documents MOP-23-06 and MOP-24-06), but was likewise not approved. At that same meeting the possibility of asking the IATTC to increase its contribution from 30% to 40% was discussed, but no decision was reached in this regard, and the Parties concluded that ef- forts to reduce the budget should continue. Table 1 reflects the 2011 AIDCP budget, as presented by the Secretariat in Document MOP-24-06, which includes USD 1,652,700 for the AIDCP’s 70% share of observer costs, USD 360,000 for those direct AIDCP costs with 100% budget coverage, and USD 1,910,408 in income from vessel assessments, late, sunk and inactive fees, for a projected net deficit of USD 102,292. This projected deficit is compared to actual 2011 program year expenses, reflecting an actual net deficit of USD 48,940. Column 3 of the table shows the difference between the budgeted and actual cost of each line item. During the last four years, significant efforts have been made to reduce program expenses, as can be seen in column 3, by decreasing IATTC staff cost allocations and field office expense allocations. To accom- plish these savings the Secretariat made some adjustments to the personnel costs allocated to the program, and efforts to reduce meeting expenses continued. However, as noted in column 3, there was a significant increase in the AIDCP meeting costs due to a late change of venue for the annual meeting in October 2011. The costs of hosting the meeting increased due to the need to allocate actual costs to this line item that were not budgeted for. Extraordinary receipts from prior years are not included in Table 1, in order to present the budget more accurately as it relates t...
CURRENT FINANCIAL SITUATION. Every year the Secretariat is faced with the difficult task of developing a budget with expenses that are based upon anticipated levels of income from vessel assessments. In only two of the last eleven years has the Secretariat been able to meet the requirements of the AIDCP with the funds received from these as- sessments. In the other nine years, the IATTC has covered the deficits of the AIDCP out of its operating funds, thus exceeding the 30% maximum funding level approved by the IATTC. Table 1 reflects the 2009 AIDCP budget, as presented by the Secretariat in Document MOP-19-06, which includes US$ 1,673,948 for the AIDCP’s 70% share of observer costs, US$ 436,498 for direct AIDCP costs, and US$ 1,927,746 in income from vessel assessments, for a projected net deficit of US$ 182,700. A nominal increase in vessel assessments of US$ 1.55 per cubic meter of well volume was proposed in that document, but was not approved by the Parties. The modest increases in these assessments recom- mended at subsequent meetings have likewise not been approved. An increase in the surcharges for late payment of assessments was recommended in October 2009, but that was also not agreed. During 2009, significant efforts were made to reduce program costs. The Secretariat made some adjust- ments and reduced personnel costs allocated to the program, and was also able to lower meeting expenses. The deficit was also reduced due to a fairly high level of late fee payments to the program. Table 1 shows the income received to date for 2010 of US$ 1,796,134 which is US$284,245 less than the budgeted amount of $2,080,379, resulting in an anticipated deficit of US$162,938. This is mainly due to changes in the composition of the fleet, which will result in less revenue for the program managed by the Secretariat and a greater proportion of the revenue accruing to the national observer programs. It should be noted that, although reduced coverage reduces the observer costs, the fixed costs borne by the Secreta- riat remain essentially the same. Another factor which we believe will increase the deficit is that late fees, which in the past have a source of significant revenue to the program, are anticipated to drop markedly because of the later due date of December 1 for making vessel payments.
CURRENT FINANCIAL SITUATION. Table 1 shows forecast costs for the IDCP in 2005, and the estimated costs and revenue forecast for 2006. The projection of revenue for 2006 is based on the amounts invoiced for vessels covered by the AIDCP (over 363 t capacity) and anticipated income from small and inactive vessels, and assumes that all pay- ments are made on time. Projected expenditure incorporates a 3% increase for inflation in costs (except for observer remuneration) over that for 2005. The forecast costs for 2005 have been reduced slightly from the estimates provided in June (Document MOP-13-05b); however, the revenue to date is less than the forecast. Accordingly, the expected deficit has increased from US$ 136,475 to US$ 166,947. The first three options for savings of US$ 20,000 for 2006, discussed in section 4 of this paper, have been included in the 2006 estimates. Table 2 shows the line item detail supporting the summary of projected IDCP expenses for 2006 pre- sented in Table 1. Table 3 shows details of the allocation of the Secretariat staff’s time to the IDCP-related tasks they per- form in 2006.
CURRENT FINANCIAL SITUATION. The current forecast shows decreased revenue from the anticipated amount taking into consideration full reimbursement of national programs and decreased expenses, leading to a decrease in the expected sur- plus for 2009 from the US$ 9,744 forecast in Document MOP-21-06 to a deficit of $10,804.
CURRENT FINANCIAL SITUATION. Table 1 reflects how increased revenue and decreased expenses led to the surplus of US$ 54,601 in 2008, instead of the deficit of US$ 3,379 forecast in Document MOP-20-05. This has been achieved mainly by reducing staff participation in observer training sessions; also, some expected costs, such as trial sets and legal fees, were not incurred, and surcharges collected were US$ 6,103 greater than expected.
CURRENT FINANCIAL SITUATION. Table 1 shows actual costs for the IDCP in 2004, and the estimated costs and revenue forecast for 2005-
CURRENT FINANCIAL SITUATION. Table 1 shows actual costs for the IDCP in 2007, and the projected costs and revenue forecast for 2008- 2010. The estimates for 2009 and 2010 assume that the annual inflation and cost of living factor will re- main at a minimum of 3%. The difference between the 2008 vessel assessments paid by 1 May 2008 and projected AIDCP expendi- tures is a deficit of $152,163. Table 2 shows the line item detail supporting the summary of projected IDCP expenses for 2008 pre- sented in Table 1. Table 3 shows details of the allocation of the IATTC staff’s time to the IDCP-related tasks they perform.
CURRENT FINANCIAL SITUATION. The assessments paid so far in 2004 by vessels requiring observers total US$ 1,932,286. The forecast expenditure for 2004, US$ 2,062,339, exceeds revenue by US$106,010; however, the closure of the fish- ery in August and September should reduce expenditure by about that amount. At the end of 2003, the accumulated deficit for the IDCP was US$ 494,996. Table 1 shows actual costs for the IDCP in 2003, and the estimated costs and revenue forecast for 2004-
