1. Programme and Budget of the Council of Europe

2. Financial and administrative arrangements

2.1 Financial Regulations and Supplementary Provisions

2.1.1 Financial Regulations

2.1.2 Budget Committee

2.1.3 Treasurer

2.1.4 Internal Auditor

2.1.5 External Auditor

2.1.6 Audit Committee

2.1.7 Management Board of the Pension Reserve Fund

2.1.8 Tenders Board

2.2 Partial and Enlarged Agreements

2.3 Income and contributions

2.3.1 Contributions of member States

2.3.1.1 Obligatory contributions

2.3.1.2 Payment of contributions/unpaid contributions

2.3.2 Contributions of non-member States

2.3.3 Voluntary contributions/special accounts

2.3.3.1 General considerations

2.3.3.2 Administrative levy

2.4 Consultation of the Assembly in budgetary matters

2.5 Financial implications of decisions

2.6 Criteria for launching, discontinuing and evaluating projects

2.7 Evaluation

3. Council of Europe Offices

4. Reimbursement of travel and subsistence expenses to government experts and other persons travelling at the charge of Council of Europe budgets

5. Consultants

6. Staff Regulations

7. Conditions of service of the SG, DSG and the SG of the Assembly

8. Conditions of service of the judges of the European Court of Human Rights and of the Commissioner for Human Rights

9. Improving gender mainstreaming and gender balance

The Programme and Budget of the Organisation covers two consecutive financial years (“the biennium”). It presents for each financial year of the biennium the General Budget (Ordinary Budget, Extraordinary Budget, Budget of the European Youth Foundation, the Pensions reserve fund and any subsidiary budgets thereto) and the budgets of the partial and enlarged agreements. It is also includes information in respect of estimated voluntary contributions for each year.¹

The Programme sets the Organisation's objectives for the biennium, along with expected results and performance indicators. The Budget authorises the budgetary receipts and budgetary expenditure of the Organisation for the implementation of the Programme for each of the financial years of the biennium.

The SG proposes, and the CM approves, the Programme and Budget in accordance with the Financial Regulations.²

The CM approves the Programme for the biennium and the Budget for the first financial year, as well as the Budget for the second financial year on a provisional basis, before the beginning of the biennium. The CM approves the Budget and if applicable the revised Programme for the second financial year before 1 November of the first financial year in the biennium.³

The cycle for the adoption of the biennial Programme and Budget is set out in the attached calendar.

If the Programme and Budget cannot be adopted within the prescribed deadlines, the CM shall authorise the SG to incur expenditure on a monthly basis of an amount not exceeding one twelfth of the previous financial year’s Budget and to call contributions from each member State amounting to one third of its contribution to the previous financial year’s Budget.⁴

¹ Financial Regulations, Article 17

² Financial Regulations, Article 3

³ Financial Regulations, Article 23

⁴ Financial Regulations, Article 24

2.1 Financial Regulations and Supplementary Provisions

2.1.1 Financial Regulations

2.1.2 Budget Committee

2.1.3 Treasurer

2.1.4 Internal Auditor

2.1.5 External Auditor

2.1.6 Audit Committee

2.1.7 Management Board of the Pension Reserve Fund

2.1.8 Tenders Board

2.2 Partial and Enlarged Agreements

2.3 Income and contributions

2.3.1 Contributions of member States

2.3.1.1 Obligatory contributions

2.3.1.2 Payment of contributions/unpaid contributions

2.3.2 Contributions of non-member States

2.3.3 Voluntary contributions/special accounts

2.3.3.1 General considerations

2.3.3.2 Administrative levy

2.4 Consultation of the Assembly in budgetary matters

2.5 Financial implications of decisions

2.6 Criteria for launching, discontinuing and evaluating projects

2.7 Evaluation

2.1 Financial Regulations and Supplementary Provisions

2.1.1 Financial Regulations

The Financial Regulations are adopted by the CM. They contain inter alia the rules concerning the Programme and Budget, member States’ contributions and other income, the management of the funds, the financial statements and the budgetary management accounts as well as the Budget Committee, the External Auditor, the Internal Auditor, the Audit Committee and the Organisation's Treasurer.⁵

2.1.2 Budget Committee

In fulfilling its budgetary functions, the CM is assisted by a Budget Committee, made up of eleven independent experts appointed by the CM (of which five upon presentation by the five major contributors).⁶ The procedure for the appointment of the members is appended to the Financial Regulations.

2.1.3 Treasurer

The SG appoints a high ranking official to the office of Treasurer. The Treasurer is responsible for safe custody and handling of the funds and assets of the Organisation. He or she also undertakes other responsibilities provided for in the Financial Regulations, particularly in matters of payment of expenditure and collection of receipts. ⁷

2.1.4 Internal Auditor

The SG appoints an Internal Auditor responsible for evaluating and contributing to the improvement of risk management, control, and governance processes. The Internal Auditor verifies that internal control is implemented in accordance with the provisions of the regulations and that appropriate administrative and financial management procedures are put in place.⁸

2.1.5 External Auditor

The CM appoints an External Auditor (a supreme audit institution of a member State), responsible inter alia for certifying the annual accounts of the Organisation and making observations with respect to the economy, efficiency and effectiveness of the financial procedures, the accounting system and the administration and management of the Organisation.⁹ The procedure for the appointment of the External Auditor is appended to the Financial Regulations.

The cycle for the approval of the annual accounts is set out in the attached calendar.

2.1.6 Audit Committee

The CM appoints an Audit Committee to exercise an independent appraisal of internal and external control systems and of follow-up given to Internal Oversight and External Audit recommendations.¹⁰ The complete terms of reference of the Audit Committee are set out in Resolution CM/Res(2011)1.

2.1.7 Management Board of the Pension Reserve Fund

The CM appoints the Management Board of the Pension Reserve Fund. The Board is responsible, subject to the control of the CM, for the management of the Fund. The Statute of the Fund and terms of reference of the Management Board are set out in Resolution Res(2006)1.¹¹

2.1.8 Tenders Board

The SG appoints a Tenders Board which is responsible for overseeing call for tenders under the conditions laid down in the Financial Regulations.¹²

2.2 Partial and Enlarged Agreements

See also II.B Committee of Ministers at Deputy level, Chapter 11 Partial Agreements.

These budgets comprise the supplementary expenditure entailed by an agreement, to be shared among the participating states, and the various receipts to be set off against it. For each financial year of the biennium, they provide for a contribution to the pension reserve fund and an annual lump-sum contribution to administrative expenditure foreseen under the Ordinary Budget, determined on the basis of the amount of administrative expenditure included in the Budget for the second financial year of the previous biennium.¹³

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2.3 Income and contributions

The income of the Organisation consists of obligatory contributions, voluntary contributions and miscellaneous receipts.

2.3.1 Contributions of member States

2.3.1.1 Obligatory contributions

In accordance with Article 38b of the Statute,¹⁴ member states’ contributions to the budgets are determined in accordance with Resolution Res(94)31 on the method of calculating the scales of member states' contributions to Council Budgets.

2.3.1.2 Payment of contributions/unpaid contributions

Article 39 of the Statute provides that the SG shall each year notify the government of each member of the amount of its contribution, and each member shall pay to the SG the amount of its contribution, which shall be deemed to be due on the date of its notification, not later than six months after that date.

The Financial Regulations set out practical modalities for payment of contributions in application of Article 39 of the Statute.¹⁵ In particular, they stipulate that each member state shall pay at least one third of its obligatory contributions in the course of the first two months of the year and the balance by the end of the period of six months referred to in Article 39 of the Statute (in general, by the end of June).

Member States that have not paid their entire contribution before the end of the period of six months are required to pay simple monthly interest of 0.5% on amounts remaining unpaid on the first day of each of the following six months, and 1% on amounts remaining unpaid on the first day of each month thereafter.

The CM is informed of the situation regarding unpaid contributions on a regular basis.

The CM has agreed that, apart from exceptional circumstances having prevented a member State from fulfilling its obligation, Article 9 of the Statute¹⁶ will be applied to any state which has failed to fulfil all or a substantial part of its financial obligation for a period of two years.¹⁷

2.3.2 Contributions of non-member States

Contributions of non-member States can concern partial agreements, Council of Europe conventions and voluntary contributions.

Non-member States contribute to enlarged partial agreements to which they are member.

They also contribute to the costs relating to the functioning and operation of Council of Europe conventions to which they are Parties, when the conventions concerned provide follow-up mechanisms.

The reason is that member States of the Organisation already contribute to covering the costs of the conventions by means of their contribution to the Ordinary Budget.

The contribution of non-member States is governed by Resolution CM/Res(2013)7 concerning financial arrangements for the participation of non-member States in Council of Europe conventions.

The amount of the contribution is calculated in accordance with a specific method set out in Appendix to the resolution, in the absence of a specific provision in the relevant convention, with a minimum contribution of €10 000 - this amount will be adjusted annually according to inflation.

Every year the SG notifies the governments of the non-member States concerned of the amount of their contribution and, unless the CM decides otherwise, invites them to proceed to payment. The provisions of Article 10 of the Financial Regulations shall apply mutatis mutandis to the contribution of any contracting party to a Council of Europe convention which is not a member of the Council. Unless the CM decides otherwise, the contribution is be allocated to the General Budget.

Non member States can also make voluntary contributions (see below).

2.3.3 Voluntary contributions/special accounts

2.3.3.1 General considerations

The Financial Regulations provide that the SG may accept voluntary contributions, which are managed through special accounts. The purpose of these accounts must conform to the aims of the Council as set forth in its Statute.¹⁸

The general framework for the resource management and mobilisation strategy appears in document CM(2009)10 final.¹⁹

The Programme and Budget includes information in respect of estimated voluntary contributions for each financial year of the biennium. The SG reports on the activities carried out under special accounts in the framework of the annual accounts of the Organisation. A report of voluntary contributions received is distributed on a quarterly basis.

The rules for the opening and management of special accounts are adopted by the Deputies. These foresee that a special account may be opened for the Ordinary budget (one per vote), partial and enlarged agreements, joint programmes and other ad hoc purposes. All specifically identifiable items of expenditure arising from the activities financed by a special account shall be charged to that account, and receipts are subject to an administrative levy to cover general expenditure (associated administrative and logistical support costs), unless the CM decides otherwise.²⁰

Unspent appropriations on special accounts shall be automatically carried forward to the following financial year until the termination of the activity for which they were intended, at which point any remaining balance will be allocated in accordance with the donor's instructions or by decision of the CM.²¹

2.3.3.2 Administrative levy

Modalities in respect of the administrative levy are adopted and regularly updated by the Deputies. The current policy is set out in CM(2010)143.²² This foresees:

- the percentage levy in relation to the additional costs incurred for the processing of payments in respect of joint programmes and voluntary contributions is set at 2.3%;
- an annual levy per position financed by these contributions of €18 000 per position occupied by a staff member based in the Strasbourg, Paris or Brussels premises and €3 300 per position occupied by a staff member based in the Graz or Lisbon premises.

In the specific case of joint programmes, the total amounts levied are offset against the fixed percentage for administrative overheads specified in the general conditions of the grant contracts of the EU: "A fixed percentage not exceeding 7% of the total amount of direct eligible costs of the Action may be claimed as indirect costs to cover the administrative overheads incurred by the Beneficiary for the Action, ..."

2.4 Consultation of the Assembly in budgetary matters

Cf. II.E, Chapter 1.8 Consultation with the Assembly on budgetary matters.

2.5 Financial implications of decisions

Documents supporting the decision process should set out resource implications (financial and human).²³

In the Notes on the agenda, the Secretariat sets out whether financing is assured or not.

2.6 Criteria for launching, discontinuing and evaluating projects

At the Third Summit in Warsaw (16 and 17 May 2005), it was decided that "The Council of Europe shall pursue its core objective of preserving and promoting human rights, democracy and the rule of law. All its activities must contribute to this fundamental objective."²⁴ As a follow-up, the Deputies approved criteria for launching, discontinuing and evaluating projects, set out in document CM(2006)101 final.²⁵

2.7 Evaluation

The Evaluation Policy appears in document CM(2008)156.²⁶

⁵ Financial Regulations, Article 1

⁶ Financial Regulations, Article 25

⁷ Financial Regulations, Articles 30 and 32

⁸ Financial Regulations, Article 66

⁹ Financial Regulations, Articles 69-72

¹⁰ Financial Regulations, Article 73

¹¹ Cf. Resolution Res(2006)1, as amended by Resolution CM/Res(2008)50, CM/Del/Dec(2011)1105/11.1abd and CM/Del/Dec(2012)1153/11.1/Part3B

¹² Financial Regulations, Articles 40-42

¹³ Financial Regulations, Article 21

¹⁴ Article 38b. The expenses of the Secretariat and all other common expenses shall be shared between all members in such proportions as shall be determined by the Committee on the basis of the population of members. The contributions of an associate member shall be determined by the Committee.

¹⁵ Financial Regulations, Article 10

¹⁶ Article 9: The Committee of Ministers may suspend the right of representation on the Committee and on the Parliamentary Assembly of a member which has failed to fulfil its financial obligation during such period as the obligation remains unfulfilled.

¹⁷ Decision taken at the 95th Session of the Committee of Ministers (10 November 1994).

¹⁸ Financial Regulations, Articles 4 and 11

¹⁹ CM/Del/Dec(2009)1050/11.1

²⁰ Cf. CM/Del/Dec(89)431/42a, Appendix 7, amended by CM/Del/Dec(2005)951/11.1 and CM/Del/Dec(2006)978/11.10

²¹ Financial Regulations, Article 11

²² Cf. CM/Del/Dec(2010)1099/11.5

²³ Cf. CM(2011)96 final and CM(2000)159 rev

²⁴ Cf. CM(2005)79 final and CM(2005)80 final

²⁵ Cf. CM/Del/Dec(2007)984/1.9

²⁶ Cf. CM/Del/Dec(2008)1042/1.6

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Council offices in member States and non-member States as well as offices in charge of liaison with one or more international organisations or institutions are established by a decision of the CM. The rules governing such offices and their terms of reference are set out in Resolution CM/Res(2010)5 on the status of Council of Europe Offices.

The consent of the CM should be given prior to the appointment of special representatives to fulfil political missions in the spirit of reinforcing democratic stability.²⁷

²⁷ Cf. CM(99)64 - Approved at the 668th Deputies’ meeting (CM/Del/Dec(99)668/1.5)

The CM adopts the rules concerning the reimbursement of travel and subsistence expenses and fixes the rates of daily allowances when adopting the budget.

Rules are adopted for the following categories:²⁸

· Government experts and other persons
· Deputies
· Members of the European Committee for Social Rights
· Members of the European Committee for the Prevention of Torture
· Experts assisting the CPT
· Members of the Administrative Tribunal
· Data Protection Commissioner
· Members of the Committee of Experts of the European Charter for Regional or Minority Languages, members of the European Commission against Racism and Intolerance, members and additional members of the Advisory Committee for the Framework Convention for the Protection of National Minorities, and members of the group of Experts on Action against Trafficking in Human Beings
· Members of the Congress

²⁸ Cf. CM/Del/Dec(2010)1089/11.3, as amended by CM/Del/Dec(2013)1162/11.4

The framework for the use of consultants is laid down in Resolution Res(2004)25 on service contracts of consultants. Outsourcing is gouverned by Resolution Res(2004)26 on outsourcing contracts to external service providers.

The CM adopts the Staff Regulations which are regularly updated. The SG is responsible to the CM for the work of the Secretariat.²⁹

The Staff Regulations require specific information, consultation or authorisation of the CM in the following areas:

- Appendix II - Regulations on appointments:

Article 25 - Procedure for appointment to grades A6 and A7 (the non-publication of a vacancy at grade A6 or A7 requires the agreement of the CM; the SG makes an appointment after an informal exchange of views with the CM; and in the case of the Secretary to the CM and the Internal Auditor the appointment becomes effective only after approval by the CM);
Article 27 - Appointment to posts in the Private Office of the SG (before appointing the Head of the Private Office, the SG shall inform the CM of his or her intentions);
Article 28 - Supernumerary transfer (for A6 and A7 staff, the SG may make a supernumerary transfer after an informal exchange of views with the CM);

- Appendix III - Regulations on the Table of Posts:

Article 1 - Definition of the Table of Posts (approved annually by the CM when voting the budget);
Article 2 - Permanent transfers of posts from one department to another, regradings and suppression of posts (posts of grades A7or A6 may be transferred permanently within the Table of Posts with the prior consent of the CM; the SG informs the CM of other changes within the Table of Posts in the framework of the next budget);
Article 3 - Secondment of officials to another department (secondment of grade A7 or A6 officials within the Table of Posts requires the prior consent of the CM; a list of other secondments within the table of posts at the time of the presentation of the draft budget is appended to the said draft);
Article 4 – Exceptions (any other measure constituting a departure from the Table of Posts may be taken only with the prior consent of the CM);

- Appendix IV – Regulations governing staff salaries and allowances (approval of the annual adjustment in application of the remuneration adjustment procedure adopted by the CM);³⁰
- Appendix XI - Statute of the Administrative Tribunal:

Article 1 - Membership of the Tribunal (the Court appoints one judge (the Chair of the Tribunal) and his/her deputy and the CM appoints two judges and two deputies).

The relations between the Staff Committee and the CM are laid down in Appendix I - Regulations on Staff participation.

In this context, the Chairperson of the Staff Committee is authorised to attend meetings and follow the proceedings of the GR-PBA on a regular basis, it being understood that the existing provisions on relations between staff and the CM, as set out in the Article 7 of the Regulations on staff participation, remained valid.³¹

On questions of salary scales and pensions, the CM is assisted by the Co-ordinating Committee on Remuneration (CCR), which reports to the Councils of the Co-ordinated Organisations.³² The Regulations concerning the co-ordination system are adopted by the CM. They are set out in document CM(2004)14,³³ as amended by decision CM/Del/Dec(2007)1009/11.4.

²⁹ Article 37 of the Statute

³⁰ Cf. CM/Del/Dec(2012)1145/11.1

³¹ Cf. CM/Del/Dec(2002)780/1.4

³² North Atlantic Treaty Organisation (NATO), Organisation for Economic Co-operation and Development (OECD), Council of Europe, Western European Union (WEU), European Space Agency (ESA), European Centre for Medium Range Weather Forecasts (ECMWF) and EUMETSAT

³³ Cf. CM/Del/Dec(2004)892/11.5

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The conditions of service of the SG, DSG and the SG of the Assembly is laid down in Resolution Res(71)8. The basic annual salaries provided for in Article 1, paragraph (a) of that Resolution are revised annually, on the basis of the CCR salary adjustment method. The regulations governing the pension scheme and temporary leaving allowance applicable to these specially appointed officials are laid down in Resolution CM/Res(2012)48.

The status and conditions of service of judges of the Court and of the Commissioner are set out in Resolution CM/Res(2009)5 as amended by Resolution CM/Res(2013)4.

The Deputies have agreed on a number of measures in order to improve gender mainstreaming, strengthen the work on gender equality within the structures of the CM, and ensure balanced participation in selection processes for different bodies, entities and committees of the Council and within the member States. These include in particular,

- CM’s Message to Steering Committees of the Council of Europe on gender mainstreaming (628th meeting, 15-16 April 1998)
- Recommendation Rec(81)6 on the participation of women and men in an equitable proportion in committees and other bodies set up in the Council of Europe
- Recommendation Rec(2003)3 on balanced participation of women and men in political and public decision making
- Recommendation CM/Rec(2007)17 on gender equality standards and mechanisms
- CM Declaration on making gender equality a reality (119th Session, Madrid, 12 May 2009).

The SG is required to prepare an annual report on the follow-up given to the above as well as on the implementation of the gender equality policy in the Council, including within Council bodies, entities and committees to be presented to the CM.³⁴

³⁴ Cf. CM/Del/Dec(2008)1040/4.5