15 June 2013-14 June 2014
Annex: the Minister's analysis of the 15 October
to 14 June 2015 Budget
1. "The budget for the period of 15 October
2014 to 14 June 2015 is €55,820,000. This follows the four-month
transition budget that expires on 14 October 2014.
2. "As anticipated in my previous Explanatory
Memorandum, the overall budget for June 2014 to June 2015 (including
the transition period) is approximately €90m, which represents
a reduction of €20m on the 2013/14 allocation of €110m.
This delivers the overall savings we expected and so I support
this budget.
3. "An overview of the proposed eight month
budget is contained within the table below. For reference I have
included a breakdown for the preceding transition budget and the
allocation for 2013/14 annual allocation. Should the figures in
the final version of the Council Decision differ from those below,
I will write to the Committee with a revised breakdown accordingly.
| Budget Line
|
(Euros)
| 15 June 2014-14 October 2014
(Euros)
| 15 October 2014-14 June 2015
Euros
|
| Personnel | 76,974,709
| 25,112,609.60 | 38,245,877
|
| Missions | 2,116,635
| 506,300.00 | 1,233,424
|
| Running costs | 24,677,262
| 7,089,796.09 | 14,093,841
|
| Capital Costs | 2,608,714
| 473,331.67 | 1,040,249
|
| Representation | 104,000
| 34,667.00 | 69,400
|
| Contingencies | 3,518,680
| 783,295.64 | 1,137,747
|
| Total
| 110,000,000
| 34,000,000
| 55,820,000
|
"Personnel Costs - (€38,245,877):
· "Personnel costs account for approximately
70% of total expenditure. Under the new OPLAN, the maximum authorised
strength according to the EULEX Kosovo OPLAN is 800 international
staff and 800 local staff. In achieving this stream-lined workforce,
the mission has cut around 650 staff positions from the previous
total of around 2200. Within the new headcount, the number of
SITF staff will increase to 42 plus 19 staff in an SITF Proceedings
Planning Team. Overall savings for the twelve months from June
2014 are approximately €14m compared to 2013/14.
· "Missions Expenditure (€1,233,424):
· "This expenditure relates to the
costs incurred in implementing the mandate and includes transportation,
per diems and accommodation. In comparison to 2013/14, expenditure
for the year from June 2014 will be reduced by approximately €3.5m.
· "Running Costs (€14,093,841):
· "This covers a range of costs such
as transport, IT, communications and goods & services. Savings
for the year from June 2014 compared to the previous budget amount
to around €3m.
· "Transport: The largest cost
is for helicopter services (€0.5m per month). However, following
revision of the service contract, monthly expenditure will be
reduced by €200,000 compared to the transition budget. The
car fleet has been reduced to 916 from 987 vehicles in April 2014.
· "IT running costs: Expenditure
of €1,122,328 for the eight months from October is higher
than the transition budget in pro rata terms. However, this added
expense is due to the need for software maintenance and framework
contracts to support a range of equipment and systems which are
now out of warranty.
· "Communications: The post-October
allocation will be greater than the 4-month transition budget.
However, this is explained by additional maintenance costs for
an increased number of secure mobile phones and maintenance of
the phone interception system, the warranty for which has expired.
· "Premises rent and services:
A decrease in expenditure on office rents has not been secured
despite the down-sizing. This was not possible as significant
infrastructural costs would be incurred in preparing a new building
(not least as suitably equipped and secure facilities are limited
in Kosovo), and this expenditure would negate any savings in rent.
· "Security: External security
costs are in line with previous expenditure as the relocation
of staff to the North, an important step for EULEX's policy objectives,
will incur costs. The access control systems are now out of warranty
and therefore require a serving contract.
· "External Assistance & Outsourced
Services: Proposed expenditure on short-term expertise
for justice is €250,000 for October to June 2015.
This is a sizeable increase on the budget allocation of €40,000
for the transition period. This is due to framework contracts
for translation and services related to external expertise.
· "Training: October to June
2015 expenditure is €86,660 which represents a large increase
on the transition budget of €8000 for four months. This increase
is due to a need for additional training for staff in the north
and is a key recommendation of an inquiry into the death of a
staff member in the north last September; additional armoured
vehicle training is also required.
· "Capital Expenditure (€1,040,249)
o Proposed spend represents a marginal increase
on the transition budget in pro rata terms. Expenditure covers
a number of important purchases such as: a vehicle lift for the
vehicle workshop in Pristina; upgrades to residential security,
public address systems, and the establishment of an independent
water supply in Pristina.
· "Representation (€69,400):
o No change in pro rata terms.
4. "The UK contributes a large number of
secondees in strategic positions, including Special Adviser to
the Head of Mission, Deputy Head of the Strengthening Division,
the Head of Kosovo Special Prosecution Office (SPRK), Prosecutors
and Judges. We are taking steps to ensure that the UK retains
positions that will be relevant under the new mandate, while reducing
our footprint in the mission in proportion to the overall reduction
in staff numbers. UK officials will continue to evaluate closely
the impact of EULEX throughout the course of the mandate, which
should remain flexible and appropriate for its operating environment,
whilst maintaining value for money."
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