RESULTS BASED BUDGETING Manual Book

RESULTS BASED BUDGETING Manual Book
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    RREESSUULLTTSS BBAASSEEDD BBUUDDGGEETTIINNGG Manual May 2005 Version 3.1 (English)

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    3 TABLE OF CONTENTS RESULTS BASED BUDGETING: INTRODUCTION ..............................................................4 PRACTICAL APPLICATION OF RESULTS BASED BUDGETING.........................................6 TRAINING MANUAL .................................................................

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    4 RESULTS BASED BUDGETING: INTRODUCTION Definition Results-based budgeting is a Budget process in which (a) Budget formulation revolves around a set of predefined objectives and Expected Results, (b) Expected Results justify the resource requirements which are derived from and linked to ou...

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    5 Commitment of the Secretary General In his document setting out his priorities for 2005, (CM(2004)59), the Secretary General has stated his general commitment to reform of the Organisation management structure, and to Results Based Budget-ing in particular. Draft Budget Presentation 2006 ...

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    6 PRACTICAL APPLICATION OF RESULTS BASED BUDGETING In Practise the following guidelines should be followed Coherent objective-setting . drawing a clear distinction between the objectives and the activities which are necessary to achieve them; . considering major external factors and condi...

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    7 TRAINING MANUAL This manual accompanies the RBB training. It serves as a post-course reference for applying the tech-niques and approaches learnt during the training course. The manual is aimed at Council of Europe man-agers and members of their respective teams involved in the preparation ...

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    8 THE BUDGET CYCLE The Secretary General is required, each year, to submit his budgetary proposals to the Committee of Ministers for their approval. Each Directorate/Service/administrative unit is required to identify their expected results for Activity Areas for the budget year, be they ong...

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    9 THE RBB LOGICAL FRAMEWORK What is the RBB Logical Framework method? The Logical Framework method analyses and presents objectives in a systematic and logical way. It re-quires causal relationships to be established between the different levels of objectives, and identifies the effects of t...

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    10 LIMITATIONS OF THE METHOD The Logical Framework method has proved its usefulness in helping those who prepare and implement budgets to better structure and formulate their budget proposals and to set them out in a clear, coherent way. If the idea is misconceived or if the logic is poor, th...

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    11 STAKEHOLDERS Stakeholders are persons, groups or institutions with an interest in, or influence over, the degree of suc-cess of implementation of the budget. They can be divided into four categories: beneficiaries, partners, resource providers and target groups. Beneficiaries Those who ...

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    12 THE PLANNING PHASE – BUILDING THE LOGFRAME The four columns included within the Logframes are as follows: 1. Hierarchy of Objectives 2. Performance Indicators 3. Sources of Verification 4. Assumptions First Column: Hierarchy of Objectives The four levels of objectives are defined as ...

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    13 Second Column: Performance Indicators Performance Indicators describe the tangible effects of the expected results. The cost centre manager uses how you will Performance Indicators to describe, assess or measure the effects of the implementation of the budget in terms of quality, quantity ...

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    14 However, the work load to collect information and the cost involved should be commensurate with the scale of the operation. A cost centre manager might discover that it is in fact too expensive, or too com-plicated to verify a particular performance indicator. In this case, the Performance ...

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    15 THE EVALUATION PHASE Evaluation is a systematic and objective assessment of the implementation of a budget. The three key principles, which determine the quality of the implementation of a budget, also guide the evaluation process: Coherent objective setting Practicability Measurable...

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    16 APPENDIX I - GLOSSARY Activities The actions to be carried out in order to attain Expected Results (e.g. organ-ising seminars, providing legislative assistance, paying invoices, producing reports etc.). Assumptions External factors that might affect implementation and long-term sustaina...

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    17 Results Based Budget-ing (RBB) Budget process in which (a) Budget formulation revolves around a set of predefined objectives and expected results, (b) Expected Results justify the resource requirements which are derived from and linked to outputs required to achieve such results and (c)...

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    18 APPENDIX II – EXTRACTS FROM RBB HELP FUNCTION IN THE IT TOOL How to develop a Logframe? Step Box How Quality Check 1 Activity Area Objective Define, what you can and want to achieve in your Activity Area Only one Activity Area objective Is it realistic to achieve this objective wit...

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    19 Examples of how to improve Expected Results and Performance Indicators Example How to improve? Expected Result: "to promote bilateral co-operation in support of edu-cational reform" Expected Result: "Bi-lateral co-operation in support of educational re-form has increased&qu...

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    20 Examples of Sources of Verification Example Sources of Verification Performance Indicator: At the end of the year, in 80% of the priority countries at least two relevant activities have been undertaken and communicated in the national Reports from the countries Press/media review (quest...

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    21 APPENDIX III – LOGFRAME CHECKLIST 1. The Activity Area has one single objective. 2. The Activity Area objective is not a re-formulation of the expected results. 3. The relation between the Activity Area objective and the strategic objective(s) is evident. 4. The Activity Area objectiv...

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