E wo/pbc/23/3 original: english date: june 4, 2015 Program and Budget Committee Twenty-Third Session Geneva, July 13 to 17, 2015


I. FINANCIAL AND RESULTS OVERVIEW



Download 1.89 Mb.
Page2/39
Date31.05.2016
Size1.89 Mb.
1   2   3   4   5   6   7   8   9   ...   39

I. FINANCIAL AND RESULTS OVERVIEW




  1. This Program and Budget provides the planning for the biennium 2016/17 guided by the inputs received from Member States. Table 1 below provides an overview of the key financial planning parameters for 2016/17.




  1. Income in the biennium 2016/17 is estimated at 756.3 million Swiss francs with the proposed expenditure budget for the biennium at 707.0 million Swiss francs. After estimated International Public Sector Accounting Standards (IPSAS) adjustments on both income and expenditure, a surplus of approximately 20.8 million Swiss francs is predicted at the end of the biennium.


Table 1. Proposed Budget for 2016/17 and Key Planning Parameters

(in millions of Swiss francs)



INCOME





  1. The demand for the Organization’s international registration services is expected to continue to increase. The registration volume planning parameters for the 2016/17 budget are summarized in Table 2.




  1. Projections for 2016/17 are, as in previous biennia, established based on the Chief Economist’s forecasts1. The Chief Economist’s base case registration figures serve as the planning parameters for the PCT and Hague registration systems in 2016/17. The planning assumptions for the Madrid registration system are established slightly below the base case projected by the models. This takes into consideration multiple factors, including uncertainties as regards the application volumes from new members of those systems.



Table 2. Estimates for Demand for Services under the PCT, Madrid and Hague Systems


  1. Overall income in 2016/17, projected at the level of 756.3 million Swiss francs, represents an increase of 6.0 per cent over the budgeted income in 2014/15. Compared to the updated income forecasts for 2014/15 (as at April 2015) this represents an increase of 2.1 per cent.



Table 3. Evolution of the Income of the Organization from 2006/07 to 2016/17

(in millions of Swiss francs)


*Note: Lisbon fee income (2014/15 budgeted estimate: 8,000 CHF; 2016/17: 30,000 CHF)


  1. Income in 2016/17 is estimated to increase for all registration systems, with an increase of 5.5 per cent, 12.3 per cent and 20.3 per cent respectively for the PCT, Madrid and the Hague Systems as compared to the 2014/15 budget2.




  1. Income from Contributions of Member States amounts to 34.7 million Swiss francs for the 2016/17 biennium, a slight decrease as compared to 2014/15. The value of one unit of Member States’ contribution remains unchanged for 2016 and 20173 as compared to 2014 and 2015.




  1. Income from other revenue streams4 - services provided by the Arbitration and Mediation Center (AMC), publications, and interest income - is estimated to decrease by 10.7 per cent, 74.2 per cent and 100 per cent respectively compared to the 2014/15 budget. Miscellaneous income is expected to remain stable.

  2. The decrease in revenue estimates from the AMC is primarily related to the potential negative impact of increased market competition on the number of WIPO UDRP cases. The income from sale of publications is expected to decrease following the new data dissemination policy whereby WIPO publications will become available to the wider public at little or no cost. The negative interest rates on the Swiss franc are expected to potentially bring WIPO interest income to zero. Miscellaneous income is budgeted in the next biennium at the same level as the 2014/15 Approved Budget.




  1. Overall income levels have continued to increase steadily over the past decade as illustrated in Chart 1 below.


Chart 1. Evolution of Income from 1990/91 to 2016/17*


*Figures for 2014/15 and 2016/17 are budgeted income estimates


  1. The main source of income for the Organization remains fee income from its international registration services. The share of fee income of the Organization’s total income has continued to grow and is estimated at 94.5 per cent in 2016/17 as illustrated in the chart below.


Chart 2. Share of Fee Income / Total Income from 2004/05 to 2016/17


  1. The Organization continues to rely on the PCT fees for approximately 76 per cent of its revenue (in 2016/17), which is a high dependence on one income stream. In response to this strategic risk, the Organization will continue to explore opportunities to improve financial sustainability through the expansion of other revenue streams, including cost recovery opportunities.


Chart 3. Share of PCT Fee Income / Total Income from 2004/05 to 2016/17

The income estimates by Union are contained in Annex III.


RESULTS FRAMEWORK AND PROGRAM AND BUDGET 2016/17 INCLUDING DEVELOPMENT SHARE BY RESULT
(in thousands of Swiss francs)

Mainstreaming Strategic Goal III - Facilitating the Use of IP for Development & Development Agenda

Strategic Goal VIII: A Responsive Communications Interface between WIPO, its Member States and All Stakeholders

 

VIII.1. More effective communication to a broad public about intellectual property and WIPO’s role



Proposed Budget 16/17: 12,033

Development share: 4,268

VIII.2. Improved service orientation and responsiveness to inquiries





Proposed Budget 16/17: 6,219 Development share: 2,779

VIII.3. Effective engagement with Member States







Proposed Budget 16/17: 7,099

Development share : -

VIII.4. Open, transparent and responsive interaction with non-governmental stakeholders





Proposed Budget 16/17: 1,128

Development share: -

VIII.5. WIPO effectively interacts and partners with UN and other IGO processes and negotiations



Proposed Budget 16/17: 6,196

Development share: 3,784

Total proposed budget SG VIII: 32,675

Total development share SG VIII: 10,831


Strategic Goal I:

Balanced Evolution of the International Normative

Framework for IP

Strategic Goal II:

Provision of Premier

Global IP Services

Strategic Goal III:

Facilitating the Use of

IP for Development

Strategic Goal IV:

Coordination and Development of

Global IP Infrastructure

Strategic Goal V:

World Reference Source for

IP Information and Analysis

Strategic Goal VI:

International Cooperation on

Building Respect for IP

Strategic Goal VII:

Addressing IP in Relation

to Global Policy Issues

I.1. Enhanced cooperation among Member States on development of balanced international normative frameworks for IP



Proposed Budget 16/17: 13,976

Development share: 8,712

I.2. Tailored and balanced IP legislative, regulatory and policy frameworks



Proposed Budget 16/17: 9,748

Development share: 8,292

I.3. Increased protection of State emblems and names and emblems of International Intergovernmental Organizations



Proposed Budget 16/17: 544

Development share: -

 

I.4 Growing interest in WIPO as a forum for analysis of issues in relation to the international protection of confidential information



Proposed Budget 16/17: 494

Development share: -

II.1. Wider and more effective use of the PCT system for filing international patent applications



Proposed Budget 16/17: 29,156

Development share: 7,002
II.3. Improved productivity and service quality of PCT operations

Proposed Budget 16/17: 181,080

Development share: -
II.4. Wider and more effective use of the Hague system, including by developing countries and LDCs

Proposed Budget 16/17: 6,617

Development share: 1,085
II.5. Improved productivity and service quality of the Hague operations

Proposed Budget 16/17: 2,234

Development share: -
II.6. Wider and more effective use of the Madrid & Lisbon systems, including by developing countries and LDCs

Proposed Budget 16/17: 12,661

Development share: 3,364
II.7. Improved productivity and service quality of Madrid & Lisbon operations

Proposed Budget 16/17: 48,206

Development share: 11,146
II.8. International and domestic intellectual property disputes are increasingly prevented or resolved through WIPO mediation, arbitration and other alternative dispute resolution methods

Proposed Budget 16/17: 4,802

Development share: 661
II.9. Effective intellectual property protection in the gTLDs and the ccTLDs

Proposed Budget 16/17: 6,899

Development share: 101

III.1. National innovation and IP strategies and plans consistent with national development objectives



Proposed Budget 16/17: 10,957

Development share: 10,957

III.2. Enhanced human resource capacities able to deal with the broad range of requirements for the effective use of IP for development in developing countries, LDCs and countries with economies in transition



Proposed Budget 16/17: 39,734

Development share: 39,322
III.3. Mainstreaming of the DA recommendations in the work of WIPO

Proposed Budget 16/17: 2,492

Development share: 2,492

III.4. Strengthened cooperation mechanisms and programs tailored to the needs of developing countries and LDCs



Proposed Budget 16/17: 6,273

Development share: 5,853

III.5. Enhanced understanding of the DA by Member States, IGOs, civil society and other stakeholders



Proposed Budget 16/17: 1,393

Development share: 1,393

III.6. Increased capacity of SMEs to successfully use IP to support innovation



Proposed Budget 16/17: 3,125 Development share: 3,125

IV.1. Updated and globally accepted system of international classifications and WIPO standards to facilitate access, use and dissemination of IP information among stakeholders in the world



Proposed Budget 16/17: 7,070

Development share: 1,078  
IV.2. Enhanced access to, and use of, IP information by IP institutions and the public to promote innovation and creativity

Proposed Budget 16/17: 22,539

Development share: 16,937

IV.3. Broad geographical coverage of the content and use of WIPO Global IP Databases



Proposed Budget 16/17: 1,956

Development share: 489
IV.4. Enhanced technical and knowledge infrastructure for IP Offices and other IP institutions leading to better services (cheaper, faster, higher quality) to their stakeholders and better outcome of IP administration

Proposed Budget 16/17: 15,409

Development share: 13,499

V.1. Wider and better use of WIPO IP statistical information



Proposed Budget 16/17: 2,677

Development share: -

V.2. Wider and better use of WIPO economic analysis in policy formulation



Proposed Budget 16/17: 3,395

Development share: 1,525


VI.1. Progress in the international policy dialogue among WIPO Member States on building respect for IP, guided by Recommendation 45 of the WIPO Development Agenda



Proposed Budget 16/17: 756

Development share: 507
VI.2. Systematic, effective and transparent cooperation and coordination between the work of WIPO and other international organizations in the field of building respect for IP

Proposed Budget 16/17: 1,308

Development share: 981

 

VII.2. IP-based platforms and tools for knowledge transfer, technology adaptation and diffusion from developed to developing countries, particularly least developed countries, to address global challenges



Proposed Budget 16/17: 3,950

Development share: 3,016



Total proposed budget SG I: 24,762

Total development share SG I: 17,005



Total proposed budget SG II: 291,655

Total development share SG II: 23,360

Total proposed budget SG III: 63,974

Total development share SG III: 63,142

Total proposed budget SG IV: 46,974

Total development share SG IV: 32,003

Total proposed budget SG V: 6,072

Total development share SG V: 1,525

Total proposed budget SG VI: 2,064

Total development share SG VI: 1,488

Total proposed budget SG VII: 3,950

Total development share SG VII: 3,016

Strategic Goal IX: Efficient Administrative and Financial Support Structure to enable WIPO to Deliver its Programs


IX.1. Effective, efficient, quality and customer-oriented support services both to internal clients and to external stakeholders







Proposed Budget 16/17: 165,356

Development share: -

IX.2. An agile and smooth functioning Secretariat with a well managed and appropriately skilled workforce which is effectively delivering results





Proposed Budget 16/17: 35,257 Development share: -

IX.3. An enabling working environment supported by an effective regulatory framework and appropriate channels to address staff concerns





Proposed Budget 16/17: 2,540

Development share: -

IX.4. An environmentally and socially responsible Organization in which WIPO staff, delegates, visitors and information and physical assets are safe and secure





Proposed Budget 16/17: 18,403

Development share: -  

IX.8. Improved accountability, organizational learning, value for money, stewardship, internal control and corporate governance through assistance from effective and independent oversight



Proposed Budget 16/17: 7,035

Development share: 963




Total proposed budget SG IX: 228,591

Total development share SG IX: 963




1 The proposed budget by results does not include the proposed budget for unallocated: 6.319 million Swiss francs

2 Development share: Expenditure is qualified as development expenditure only where the beneficiary is a developing country and the equivalent expenditure is not available for developed countries (consistent with past practice, countries with economies in transition are included for the purposes of the Program and Budget)

3 The figures for Development Share include Development Agenda project resources

4 Figures might not add up to total budget due to rounding








Total proposed budget 2016/17: 707,036

Total development share: 153,332


RESULTS AND RESOURCES




  1. The proposal for the biennium 2016/17 ensures that the Organization’s resources continue to be deployed towards the achievement of results that are of highest value to our Member States and stakeholders. The total proposed expenditure for the 2016/17 biennium amounts to 707.0 million Swiss francs, representing an increase of 33 million Swiss francs or 4.9 per cent over the 2014/15 Approved Budget of 674 million Swiss francs. This should be seen in the context of an estimated increase in income of 6.0 per cent compared to the 2014/15 Approved Budget. This illustrates the Secretariat’s efforts to contain costs in spite of increasing demands for its services.




  1. The Results Framework Chart sets out the 37 organizational Expected Results for the 2016/17 biennium providing the mandate for the Programs contributing to these results. The Chart also provides the results-based view of the budget for the biennium 2016/17 and the development share of resources for each result. Furthermore, a breakdown of the extra-budgetary resources potentially available under each Program is reflected at the program level and in Annex VIII.




  1. The 2016/17 budget by Program and by cost category is summarized in tables 4 and 5 below. The program structure remains the same as in the biennium 2014/15, except for (i) Program 29 (New Conference Hall) which, following the completion of the construction, is not required in the biennium 2016/17, and (ii) Program 28 which now comprises Information Assurance (moved from Program 25 (Information and Communication Technology)) as well as Safety and Security. The comparison of the 2016/17 budget by Program with the 2014/15 Approved Budget and Budget after Transfers is provided in Annex I. Annex III, Table 13 contains the 2016/17 Budget by Program and Union.




  1. The budget is prepared on a modified accrual basis5 in accordance with the Organization’s Financial Regulations and Rules. WIPO’s budget continues to be presented and adopted by the Assemblies on a biennial basis. The IPSAS requirement for annual reporting of the Organization’s financial statements also requires the Organization to present its budget on an annual basis. For this purpose, annual budget figures are provided for both income and expenditure in Annex IX of this document.


Table 4. 2016/17 Proposed Budget by Program

(in thousands of Swiss francs)


Key priorities in the biennium


  1. Ensuring a more widespread and better use of the services provided by WIPO’s global registration systems, in particular, the PCT, Madrid and the Hague, remains a key priority in 2016/17. Appropriate and adequate resourcing of the Programs that deliver registration services, being the main foundation for the Organization’s long term financial sustainability, is key to ensuring that WIPO meets its treaty obligations and continues to satisfy applicants through high quality services. This will require meeting the challenges of the changing geographical composition of demand for such services, including the associated language skills requirements, and of the rapidly expanding membership of, in particular, the Madrid and the Hague Systems. Operational efficiency of the registration systems will also continue to be a priority as WIPO continues to move towards a fully electronic environment for the PCT, Madrid and the Hague.




  • The associated total resources for the Hague System are reflected in Program 31 (The Hague System) and the associated increases for the PCT and the Madrid Systems are reflected in Program 5 (PCT) and Program 6 (Madrid and Lisbon Systems).


  1. As the external environment increasingly presents threats to WIPO’s operations, WIPO’s contingency planning capabilities will be enhanced through the establishment of an Organizational Resilience Framework with a view to mitigating or minimizing, to the extent possible, the impact of disruptions to the Organization’s critical operations.



  • The associated total resources are reflected in Program 21 (Executive Management)




  1. The Organization is ever more dependent on reliable and effective ICT infrastructure and services. Global clients expect WIPO’s ICT services to be more responsive to their needs and increasingly reliable, accessible and secure against natural and man-made disasters including cyber attacks. Information security and business continuity therefore takes highest priority and will be the focus throughout the next biennium.



  • The associated increases in total resources are reflected in Programs 5 (PCT), Program 25 (ICTD) and 28 (Information Assurance, Safety and Security).




  1. Facilitating enhanced cooperation and agreement among Member States on the further development of a balanced international normative framework for IP will continue in 2016/17 based on the decisions by Member States. The planning assumption for 2016/17 includes up to three sessions of the Standing Committee on the Law of Patents (SCP) and the Standing Committee on the Law of Trademarks, Industrial Designs and Geographical Indications (SCT) and up to four sessions of the Standing Committee on Copyright and Related Rights (SCCR) and the Intergovernmental Committee on Intellectual Property and Genetic Resources, Traditional Knowledge and Folklore (IGC), reflected in Programs 1 (Patent Law), Program 2 (Trademark Law), Program 3 (Copyright and Related Rights) and 4 (Traditional Knowledge, Traditional Cultural Expressions and Genetic Resources).




  • A provision of 1 million Swiss francs has been made in the budget for the possibility of a Diplomatic Conference should Member States decide to convene one in the biennium 2016/17. The provision is reflected in “Unallocated”.




  1. Work will continue to encourage accession to and implementation of WIPO treaties, in particular, the Beijing Treaty, the Marrakesh Treaty, the WIPO Internet Treaties, the Singapore Treaty and the Patent Law Treaty.

  • The associated total resources are reflected in Programs 1 (Patent Law), Program 2 (Trademarks, Industrial designs and Geographical Indications) and Program 3 (Copyright and Related Rights).




  1. The IP Statistics Data Center will continue to make available all statistics to users worldwide. Special efforts will be made to collect and report new statistics on geographical indications and copyright-related activities and to further improve the user-friendliness of WIPO statistics. In the area of economic analysis, WIPO will continue to be a co-publisher of the Global Innovation Index (GII), seeking to contribute to the measurement of innovation and providing policymakers with a tool to benchmark innovation performance. WIPO’s World Intellectual Property Report series will equally continue, seeking to explore new themes and deepen the analysis on global IP topics provided to date. In addition, a new line of research on policy and performance in copyright- related industries will be established in 2016/17.




  • The associated increase in total resources is reflected in Program 16 (Economics and Statistics).




  1. Development continues to be a priority in the biennium 2016/17. This has resulted in the development share remaining stable at 21.3 per cent for the next biennium6.




  • This represents an absolute increase in estimated development expenditure of 5.2 per cent compared to the 2014/15 Approved Budget.




  1. The DA recommendations continue to guide WIPO development activities. Program linkages to the DA recommendations continue to be substantively reflected in each relevant Program narrative. DA projects have been mainstreamed, both in terms of substance and resources, in each Program in line with the Budgetary Process for Projects Proposed by the Committee on Development and Intellectual Property (CDIP) for the Implementation of the DA recommendations approved by the WIPO Assemblies in 20107.




  • A total of six DA Projects are proposed in the biennium 2016/178, subject to approval by the CDIP, with an associated total resource envelope of 2.5 million Swiss francs9.




  1. With the anticipated adoption by UN Member States of the Post 2015 Development Agenda and a new international climate change agreement, the UN is set to shift from negotiation to action. WIPO as a strongly committed member of the UN family, and embracing both the spirit and recommendations of the WIPO Development Agenda, will play its full part in the Global Partnership for Development to support implementation of all elements of the post 2015 Development Agenda.




  • The associated total resources are, primarily, reflected in Programs 9 (Africa, Arab, Asia and the Pacific, Latin America and the Caribbean Countries, Least Developed Countries), 10 (Transition and Developed Countries), 18 (IP and Global Challenges) and 20 (External Relations, Partnerships and External Offices).




  1. Enhancing access to, and use of, IP information by IP institutions and the public to promote innovation and creativity will continue. The global databases will be expanded in terms of their geographical coverage of national data collections, including for the Global Designs Database developed in the biennium 2014/15.




  • The associated increase in total resources is reflected in Program 13 (Global databases).




  1. Enhanced access to IP knowledge content will continue to be facilitated through the creation and/or strengthening of sustainable Technology Innovation Support Center (TICS) networks and special projects facilitating access to commercial databases.




  • The associated total resources are reflected in Program 14 (Services for Access to Information and Knowledge).



  1. The strengthening of the technical infrastructure of IP offices through the revised technical assistance model, focusing on sustainable results at the country level, will continue in 2016/17. In addition, a first version of the WCC (WIPO Copyright Connection) system will be made available to a first group of collective management organizations CMOs in developing countries or LDCs.




  • The associated increase in total resources is reflected in Program 15 (Business Solutions for IP Offices).




  1. Work in the area of copyright and related rights infrastructure, will focus on establishing the TAG of Excellence international quality assurance standard for (CMOs) as well as a TAG education program on the transparency, accountability and governance of CMOs. To complement the TAG-related activities, a new portal will be designed and developed to deliver many of WIPO’s copyright infrastructure projects via the Internet and in partnership with third parties. Work will also continue towards making the Accessible Books Consortium (ABC) the premier global entity for facilitating access to books by the print disabled around the world.




  • The associated total resources are reflected in Program 3 (Copyright and Related Rights).




  1. Improved delivery and coherence of WIPO’s technical cooperation in developing countries, least developed countries (LDCs) and countries with economies in transition will receive particular attention in 2016/17, building on progress made in developing national IP strategies in 2014/15. To this end, country plans, developed and maintained by the Regional Bureaus on the basis of the needs and realities of the recipient countries, and containing all projects and activities that will take place in each country, will be institutionalized. Technical cooperation will also increasingly be delivered through project-based approaches, leveraging the experience gained in recent years through the implementation of DA and other special development projects. A coherent planning and reporting of South-South activities at the Organizational level and interface with all internal and external stakeholders will also be ensured.




  • The associated total resources are reflected in Programs 9 (Africa, Arab, Asia and the Pacific, Latin America and the Caribbean Countries, Least Developed Countries) and 10 (Transition and Developed Countries).




  1. The special focus on LDCs will be reinforced in order to respond to increasing individual and common needs. Special emphasis will be given to develop their national and technological IP capacity to assist in their main goals such as poverty alleviation and economic growth and other development policies. The DA project on Capacity-building in the Use of Appropriate Technology-specific Technical and Scientific Information as a solution for identified development challenges is the main vehicle of support in this area. Furthermore, WIPO will, in particular, continue supporting activities within the priority areas identified in the WIPO Deliverables, adopted on the occasion of the Fourth United Nations Conference on the LDCs (LDC IV) and designed to contribute towards the implementation of the Istanbul Programme of Action (IPoA).




  • The associated total resources are reflected in Programs 9 (Africa, Arab, Asia and the Pacific, Latin America and the Caribbean Countries, Least Developed Countries).




  1. In order to achieve a more integrated planning and delivery of WIPO training and capacity building activities, and to enhance quality and cost-effectiveness, the WIPO Academy embarked, in 2014/15, on a gradual and consistent reform process to reposition the Academy as the organization-wide vehicle for professional training and capacity-building. This process will continue in 2016/17.




  • The associated total resources are reflected in Program 11 (The WIPO Academy).




  1. Building upon initiatives launched in 2014/15 to enhance the value-add and further improve the productivity and efficiency of the External Offices, efforts will continue in 2016/17 to enhance the seamless integration of existing External Offices into all aspects of the functioning of the Organization. This will be supported by the roll-out of a standard Global Office system and architecture. This will be critical to ensuring that WIPO continues to evolve as a truly global Organization that is responsive to its Member States and stakeholders and is able to realize its ambitious goals of delivering its services more efficiently through closer co-operation.




  • The associated total resources are reflected in Program 20 (External Relations, Partnerships and External Offices). Should Member States agree on the opening of new External Offices in 2016/17, these could be funded from the provision of 1 million Swiss francs under non-personnel resources in “Unallocated”.




  1. Efforts to achieve an agile and smooth functioning Secretariat with a well-managed and appropriately skilled workforce which is effectively delivering results will continue to be pursued under Strategic Goal IX. Gender balance and geographical diversity will receive particular attention in the biennium. Further efforts will be made to develop managerial and leadership skills of women in the Organization, with a view to enabling them to take up positions at higher levels, while continuing the outreach to potential women candidates.  As regards geographical diversity, proactive and increased efforts will be made, with support from Member States, to reach out to potential candidates from countries that are not well represented among staff in the professional and higher categories. Following the implementation of the revised Staff Regulations and Rules (SRR), approved by the Coordination Committee in 2012 and 2013, including the strengthening of the internal justice system, an important focus area in 2016/17 will be conflict prevention and mitigation and the effective management of cases through the internal justice system. The Organization will also continue to engage with the Review of the UN common system compensation package.




  • The associated total resources are reflected in Program 23 (Human Resources Management and Development).




  1. With the adoption of the Language Policy by Member States in 2011, and the extension of the six-language cover to all documentation for WIPO Committees and Main Bodies in the 2012/13 biennium, similar coverage was extended to several Working Groups in the 2014/15 biennium. It is expected that the remaining Working Groups will be covered in the 2016/17 biennium. In order to contain translation costs, the network of external individual translators and translation companies has been strengthened to ensure the ‘right-sourcing’ of translation work and new technology tools have been deployed to improve the translation environment, build terminology databases and ensure quality control. The length and number of documents will also continue to be closely monitored. These rationalization measures have resulted in a containment of translation costs.




  • The associated total resources are reflected in Program 27 (Conference and Language Services). Part of the increase in the non-personnel budget approved for the Program in the 2014/15 biennium, is therefore estimated not to be required in 2016/17.




  1. The next biennium will be characterized by several changes in the banking and investment domain on account of the current advantageous banking facility provided to WIPO by the Swiss Federal Department of Finance coming to an end in December 2015 and the introduction of negative interest rates on Swiss franc deposits. There will therefore be a need to ensure a more active and yet prudent investment planning and management approach guided by a revised investment policy approved by Member States.




  • A provision of 2.4 million Swiss francs has been made in the non-personnel budget for the payment of the negative interest rates on WIPO deposits.




  1. Absorption into operations of the new modules and capabilities of the ERP system will intensify in 2016/17, resulting in the need to support and sustain a complex and fully integrated ERP system in a cost-effective and service–oriented manner. Outsourcing of support, maintenance and technical development under a robust management and quality assurance framework will remain a key strategy.




  • A provision of 1.6 million Swiss francs has been made for the increased ERP footprint under the non-personnel budget of Program 22 (Program and Resource Management).




  1. Further improvements have been made to the measurements metrics, i.e. performance indicators, baselines and targets in line with the recommendations made by the independent validation carried out by the Internal Oversight Division (IOD) and the call for improvements made by Member States in respect of the Program Performance Report (PPR). Baselines in the Program and Budget have, to the extent possible, been aligned with the performance data in the 2014 PPR.10




  1. The implementation of a structured and periodical Risk Management process across the Organization has resulted in improved planning and understanding of events that could hinder the achievement of Expected Results. All Programs now undertake risk assessments as part of biennial planning and annual work planning. Throughout this document, the key risks and mitigation strategies for each Program are detailed at the end of each Program narrative.



Table 5. 2016/17 Proposed Budget by Object of Expenditure

(in thousands of Swiss francs)


Notes:

  1. The 2014/15 Budget after Transfers reflects transfers to address needs during the 2014/15 biennium in line with Financial Regulation 5.5: “The Director General may make transfers from one program of the program and budget to another for any given financial period, up to the limit of five per cent of the amount corresponding to the biennial appropriation of the receiving program, or to one per cent of the total budget, whichever is higher, when such transfers are necessary to ensure the proper functioning of the services”. The 2014/15 Budget after Transfers is as of March 31, 2015.

  2. Changes in cost categories between the biennium 2014/15 and 2016/17are explained in the section “Cost Category Changes” below.


NON-PERSONNEL RESOURCES





  1. The increase in non-personnel resources in 2016/17 amounts to 22.8 million Swiss francs, or 10 per cent, compared to the Approved Budget for 2014/15. However, compared to the 2012/13 non-personnel Approved Budget11, the non-personnel budget for 2016/17 represents an increase of 4.9 per cent only.




  1. The increase in non-personnel costs has been enabled through a conscious strategy of moving to a more flexible resourcing model resulting in a containment of personnel costs.




  1. The increase in non-personnel costs is driven primarily by:






  • Additional estimated translation costs of 4.2 million Swiss francs (reflected in Program 5 – The PCT System)



  • Expanding membership of the Madrid System and enhancement of the operational efficiencies of the system



  • Additional estimated non-personnel resources requirements for the Madrid System of 2.5 million Swiss francs (reflected in Program 6 – Madrid and Lisbon Systems)



  • Increased dependencies on Information and Communication Technologies, and need for enhanced PCT resilience and ICT security



  • Additional estimated non-personnel resources requirements of 1.4 million Swiss francs (reflected under Program 5 – The PCT System), 6.9 million Swiss francs (reflected in Program 25 – Information and Communication Technology) and 3.9 million Swiss francs (reflected in Program 28 – Information Assurance, Safety and Security)



  • Increased ERP footprint in operations



  • Additional estimated non-personnel resources requirements of 1.6 million Swiss francs (reflected under Program 22 – Program and Resource Management)



  • Negative interest rates on Swiss franc deposits



  • Estimated non-personnel resources requirements of 2.4 million Swiss francs (reflected under Program 22 – Program and Resource Management)




  1. The Secretariat has budgeted for requirements related to renovations, transformations and/or modernization of premises within the regular budget of Program 24 (General Support Services).




  1. Cost efficiency measures identified in the biennium 2014/15 are baselined into the Program and Budget 2016/17 (i.e. travel cost and contract efficiencies, reduction in printing costs, right sourcing of translation, etc). Further cost efficiency measures will continue to be identified and implemented during the biennium, including through the Geneva International Collaboration Group, an informal group of Geneva-based international organizations established in 2014. The Group aims at achieving economies of scale in areas including insurance, conference and printing services and host country services.



Cost category changes


  1. The changes in cost categories for 2016/1712 are as follows:




  1. A new cost category “Finance Cost” has been created following the recommendation of the External Auditor to report separately the interest payments on the loan on the New Building (budgeted in Program 24) and bank charges, including the payment of negative interest rates on Swiss franc deposits (budgeted in Program 22). As a result, an increase of 6.4 million Swiss francs can be observed under “Finance Costs” partially offset by a decrease of 3.5 million Swiss francs under “Premises and Maintenance” (the interest payments on the loan were previously budgeted under the latter cost category). In 2016 /17, the former “Admin and Bank Charges” cost category is therefore replaced by “Finance Costs”.




  1. The new cost category “Representation and other operating expenses”, groups representation costs and other operating expenses (budgeted in 2014/15 under “Admin and Bank Charges”). This results in an increase of 0.3 million Swiss francs for 2016/17.




  1. The former cost category “Course Fellowships” has been renamed “Training and related travel grants” to better distinguish the nature of this expenditure from the “WIPO Fellowships”. Although the decrease in this category compared to the 2014/15 Budget after Transfers amounts to 0.8 million Swiss francs, the decrease compared to the 2014/15 Approved Budget amounts only to 0.2 million Swiss francs. The observed changes reflect a redistribution of resources within the WIPO Academy and Program 3 (Copyright and Related Rights).




  1. The increase in “Other Contractual Services” of 21.4 million, or 21.6 per cent, compared to the 2014/15 Budget after Transfers primarily relates to the increase in PCT translation volumes, the need for enhanced PCT resilience, increased dependencies on ICT and information security. The latter also results in an increase in “Supplies and Materials” (notably the increased cost of software and licenses).




  1. Increased operational needs under the international registration systems result in increased resources of 0.7 million Swiss francs budgeted for “WIPO Fellowships” in 2016/17 compared to the 2014/15 Budget after Transfers.




  1. The decrease of 0.5 million in budgeted resources under “Conferences” is due to the provision for two diplomatic conferences in 2014/15 under Programs 2 and 4, as compared to a provision for one possible diplomatic conference in 2016/17 budgeted under “Unallocated Non-personnel”.




  1. In the biennium 2016/17 internships are no longer budgeted centrally in Program 23 (Human Resources Management and Development) but have been decentralized to Programs. The budgeted provision for 2016/17 represents an increase of 0.1 million Swiss francs compared to the 2014/15 Approved Budget which reflects a more realistic planning assumption based on expected needs.

PERSONNEL COSTS



Methodology


  1. A change in the costing methodology has been adopted for the personnel resources budget by moving from a methodology based on average standard costs to actuals based costing.  The new methodology is aimed at enhancing the solidity of personnel cost assumptions based on the actual entitlements of incumbents on board.




  1. While costs for occupied positions are based on the latest available UN salary and pensionable remuneration scales, benefits and entitlements (in line with the applicable policies and applicable entitlements), the cost for positions that are vacant is based on average standard costs.




  1. The implementation of the new methodology has been facilitated by the ERP at the planning stage and will enable the Secretariat to better monitor actual personnel expenditure at position level during implementation.


Planning Assumptions


  • For occupied positions the costing of salaries for 2016/17 takes into account the step increment (within grade) as per the applicable International Civil Service Commission (ICSC) salary scale at the time of costing and the Staff Regulations and Rules (SRR);




  • The exchange rate and post adjustment multiplier (PAM) are applied as of February 2015, where applicable (for salaries of professional and higher categories);




  • USD/CHF is applied at a 1:1 ratio for pensionable remunerations at the applicable ICSC salary scale at the time of costing;




  • Benefits and entitlements are estimated at position level as per latest payroll information for occupied positions. An average cost has been determined for vacant positions;




  • Provisions for home leave have been decreased to take into account the estimated savings of approximately 4 million Swiss francs for the biennium resulting from the full implementation of the new policy on home leave;




  • No new positions are foreseen in 2016/17. An overall vacancy rate of 3 per cent has been applied to the overall costing based on the assumption that productivity improvements and automation will result in the non-filling of 20 posts during the biennium without affecting the achievement of Expected Results. Recruitments will also be prudently managed to ensure that an additional 10 positions remain vacant at any point in time;




  • Provisions for ASHI have been maintained at 6.0 per cent for fixed term and continuing positions;




  • Other Staff Costs include the budgeted biennial provisions for Professional Accident Insurance (PAI) (900,000 Swiss francs), the Closed Pension Fund (700,000 Swiss francs), litigation costs (400,000 Swiss francs) and the WIPO Rewards and Recognition Program (120,000 Swiss francs); the latter was introduced in 2014;




  • Provisions for reclassification are budgeted at the level of 1.5 million Swiss francs in “Unallocated (Personnel)” based on actual reclassification costs in 2014/15;




  • The 2014/15 biennium will see the near completion of the regularization of long serving temporary staff and continuing functions, establishing a solid base for the Organization’s personnel needs. In the upcoming biennia, the emphasis will be on ensuring that increasing demands are met through more innovative and sustainable resourcing models. A provision of 800,000 Swiss francs has been earmarked in “Unallocated (Personnel)” for the remaining regularization of continuing functions, within the framework of the 156 regularization posts approved in principle by Member States at their Assemblies in 2010 (reference document WO/CC/63/5). A total of 41 regularizations are currently pending;




  • In order to enable the Secretariat to better monitor and control overtime expenses, the estimated overtime costs are budgeted in a separate provision in “Unallocated (Personnel)”. On the basis of past expenditure patterns, the provision amounts to 2 million Swiss francs. The overtime costs will be closely monitored in coordination with Program 23 (Human Resources Management and Development) and concerned Program areas.




  1. Based on the above planning assumptions, the increase in personnel costs in 2016/17 has been contained at 9.6 million Swiss francs, or 2.1 percent, compared to the 2014/15 Approved Budget. Compared to the 2014/15 Budget after Transfers, the increase amounts to 10.3 million or 2.3 per cent. The share of budgeted personnel costs compared to the total budget has decreased from 66.3 per cent in 2014/15 to 64.6 per cent in 2016/17. This is the result of a conscious strategy to contain personnel costs as well as the share of the personnel cost of the total expenditure of the Organization and move towards a more agile and flexible workforce which can easily adapt to business needs.




  1. The overall increase in 2016/17 under “Posts”13 compared to the 2014/15 Approved Budget relates primarily to statutory increases. It also reflects completed regularizations offset by a reduction under “Temporary Staff”14.




  1. The net reduction under “Other Staff Costs” is due to estimated savings of 400,000 Swiss francs in respect of Professional Accident Insurance (PAI), partly offset by an increase of 50,000 Swiss francs for the Closed Pension Fund and an increase of approximately 120,000 Swiss francs under the WIPO Rewards and Recognition program.




  1. The net increase under “Unallocated (Personnel)” is mainly due to the provisioning of overtime expenses of 2 million Swiss francs, previously budgeted under “Posts”, partly offset by an overall reduction of 500,000 Swiss francs for reclassifications and approximately 500,000 Swiss francs for regularizations as compared to the 2014/15 Approved Budget.


Chart 4. Cost Structure Evolution 1990/91-2016/17



DEVELOPMENT ACTIVITIES AND DEVELOPMENT AGENDA RESOURCES





  1. Development continues to be a priority in the biennium 2016/17 reflected by a stable development share of 21.3 per cent in the next biennium. The absolute increase in development expenditure in 2016/17 represents 7.6 million Swiss francs, or 5.2 per cent, compared to the 2014/15 Approved Budget. The table below provides details of the development expenditure for 2016/17 by Program. Expenditure is qualified as development expenditure, only where the beneficiary is a developing country and the equivalent expenditure is not available for developed countries. These amounts exclude foregone revenues resulting from the fee reductions accorded under the international registration systems for applicants from developing countries15. If such expenditure were to be included, the overall figure for development expenditure would be higher.


Table 6. Development Expenditures in 2016/17 by Program

(in thousands of Swiss francs)


  1. The methodology applied to estimate the development share of the budget for 2016/17 is fully in line and consistent with the methodology adopted in 2014/15.




  1. A total of 2.5 million Swiss francs have been specifically earmarked within the budget for 2016/17 for the implementation of DA projects, subject to approval by the CDIP. 


Table 7. Development Agenda Projects in 2016/17

(in thousands of Swiss francs)

*Subject to CDIP approval. Total estimated cost of the project is 540,000 Swiss francs. Implementation timeframe: 2016-2018.

**Subject to CDIP approval. Total estimated cost of the project is 800,000 Swiss francs. Implementation timeframe: 2016-2018.

***Subject to CDIP approval.




Share with your friends:
1   2   3   4   5   6   7   8   9   ...   39




The database is protected by copyright ©essaydocs.org 2020
send message

    Main page