63 / 96
63
Figure 3: Breakdown of the 2012-13 expenditures of
KNOK 104.721
matter, and programmes with negative balance in ta-
ble 4 will be funded with contracted funding belonging
to 2014. There are no balances of MFA funding carried
over from the biennium 2012-13 into 2014. Transfer of
funds is related to unspent external funding on pro-
jects (prepayment from donors), and should not be
mixed with long term funding agreements on larger
programmes.
Programme
Expenditures versus funding and impact on funding reserves (MNOK)
Transfer
from 2011
Actual funding
2012-2013
Expenditure
2012-13
Variance (transfer
into 2014)
Marine: UNEP Shelf (A)
- 0,2
16,6
16,8
- 0,4
Management of the Marine Environment (B)
- 0,3
27,3
22,9
4,1
Green Economy and Natural Resources (C)
0,3
3,8
4,3
- 0,3
Polar and Cryoshpere
- 0,4
28,0
26,7
1,0
Capacity Building and Assessment
1,3
25,0
26,2
0,1
Communications and Outreach
1,4
7,0
7,8
0,6
TOTALS
2,1
107,7
104,7
5,2
Table 5: Expenditures versus funding 2012-13 and impact on funding reserves (MNOK)
11.3 Budget 2014
The budget for 2014 provides the basis for the MFA
work plan and is normally prepared in October/Novem-
ber and approved by the Board of Directors at the be-
ginning of December. The budget is based on the fund-
raising outlook at that time. Due to the challenges faced
related to GEF implementations and securing other ex-
ternal funding, a conservative budget for 2014 has been
prepared.
Therefore the Project Expenditure budget is reduced
from the 2013 MNOK 70.7 level down to MNOK 54.4 for
2014 mainly to minimize the consequences of any pro-
ject delays and reducing operational risks. Cost reduc-
tions in staffing and administration costs (see table 6)
may be needed to secure an increased solidity/equity by
MNOK 1.5 in 2014. Due to the high amount of prospects
and major challenges to balance the project budgets
with today’s staff rates, the rates remain unchanged in
2014.
11.2.3 Expenditures versus funding
Table 5 below shows how the funding balances at year-
ends relate to the project activity (expenditures) per
programme. The main task for project managers and
finance department is to monitor that all projects has
sufficient funding and can be delivered within these
frames. All projects have been reviewed regarding this