Reg 3: Program Review Board

by L. Paul Bremer

COALITION PROVISIONAL AUTHORITY REGULATION NUMBER 3

PROGRAM REVIEW BOARD

Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA),
and consistent with relevant U.N. Security Council resolutions, including Resolution
1483 (2003), and the laws and usages of war,

Noting the letter of May 8, 2003 from Permanent Representatives of the United States of
America and the United Kingdom of Great Britain and Northern Ireland to the President
of the United Nations Security Council (S/2003/538),

Underscoring that the Development Fund for Iraq shall be used in a transparent manner
to meet the humanitarian needs of the Iraqi people, for the economic reconstruction and
repair of Iraq's infrastructure, for the continued disarmament of Iraq, and for the costs of
Iraqi civilian administration, and for other purposes benefiting the people of Iraq,

Reaffirming that the CPA is committed to ensuring that all state- or regime-owned cash,
funds or realizable securities that have been seized by Coalition Forces in Iraq consistent
with the laws and usages of war, shall be used only to assist the Iraqi people and support
the reconstruction of Iraq,

Noting that paragraph 8 of Resolution 1483 (2003) requests the Secretary General to
appoint a Special Representative for Iraq whose responsibilities include, in coordination
with the Authority, assisting the people of Iraq,

I hereby promulgate the following:

Section 1
Establishment


There is hereby established as a part of the CPA an entity to be known as the
Program Review Board ("Board"). The Board shall report directly to the
Administrator of the CPA ("Administrator"). The Board shall carry out its
responsibilities, as defined in this Regulation, in a manner consistent with the CPA's
obligation to ensure that funds available to the CPA for providing relief to, and the
recovery of Iraq are managed in a transparent manner and consistent with applicable
law, for and on behalf of the Iraqi people. In addition, the Board shall, when and to
the extent appropriate, consult the Iraqi interim administration referred to in
paragraph 9 of Resolution 1483 (2003), and shall seek every opportunity to further
the CPA's objective of gradually transferring to the Iraqi interim administration the
responsibility of budgeting Iraq's financial resources. This Regulation establishes the
procedures applicable to the Board's operations.

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Section 2
Responsibilities


1) Administrator of the CPA (Administrator). Acting on behalf of the CPA, oversees
and controls the establishment and operations of the Board, for and on behalf of
the Iraqi people, and takes final action on budgets proposed by the Board as he
determines to be for the benefit of the people of Iraq, consistent with Resolution
1483 (2003) and applicable laws and regulations. Directly supervises the
Chairman of the Board.

2) Council for International Coordination. Advises the Board on matters relating to
international efforts to assist the people of Iraq in the relief, recovery and
development of their economy, including proposing specific projects for funding
consideration; coordinating technical assistance programs and other donor
activities; encouraging the global donor community to participate in this effort by
contributing to Iraq relief and recovery efforts; providing the Board with
information regarding the nature and scope of international assistance to Iraq; and,
as requested, making recommendations to the Board with regard to disbursements
from resources available for the relief and recovery of Iraq.

3) International Advisory and Monitoring Board of the Development Fund for Iraq
["IAMB"]. Advises the Board on matters relating to external audit processes,
financial reporting and internal control systems of the Development Fund for Iraq.

Section 3
Chairman of the Board


The Administrator shall appoint a Chairman of the Board, who shall preside over all
sessions of the Board, resolve all administrative matters relating to the execution of
this Regulation, cast the deciding vote in any matter on which the votes of the
Board's members are tied, forward to the Administrator all proposed actions on
behalf of the Board, and represent the Board in communications with individuals and
entities outside the CPA. The Chairman shall report directly to the Administrator.

Section 4
Membership of the Board


The Board shall consist of the Chairman and the following voting and nonvoting
members, and such other voting or nonvoting members as the Administrator may
appoint, consistent with the objective of furthering meaningful representation of the
Iraqi people and the Iraqi interim administration in the process of developing budgets
for the relief and recovery of Iraq.

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1) Voting members. The following members, or their designees, shall attend formal
sessions of the Board and vote on matters properly brought before the Board.

Chairman
Director, Economic Policy
Director, Civil Affairs Policy;
Director, Agency for International Development, Iraq mission;
Director, Operations;
Director, Security Affairs;


Authorized representatives of

Commander of Coalition Forces
Iraqi Ministry of Finance
United Kingdom
Australia
Chairman, Council for International Coordination


a.
When taking action on any matter directly relating to the disposition of funds
appropriated by the U.S. Congress, the voting membership of the Board also
shall include authorized representatives of the U.S. Department of Defense,
U.S. Department of Treasury and U.S. Department of State. With approval of
the Administrator, a CPA Director who serves as a voting member may serve
concurrently as an authorized representative of the U.S. Departments of
Defense, Treasury or State.
b. The authorized representatives of the Iraqi Ministry of Finance, United
Kingdom, Australia and Chairman, Council for International Coordination,
who otherwise serve as voting members of the Board, shall serve as nonvoting
members when the Board is taking actions as described in subsection 4 (l)(a),
above.
2) Nonvoting members. The following members of the Board, or their designees, and
such other members as the Administrator may designate, are authorized to attend
all formal sessions of the Board:

CPA Comptroller
CPA General Counsel
Program Coordinator of the Board


Authorized representative of

U.S. Office of Management and Budget
U.S. Office of the Secretary of Defense
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International Monetary Fund

World Bank

U.N. Special Representative of the Secretary General for Iraq
International Advisory and Monitoring Board
Section 5
Program Review Committee and Staff

The Chairman of the Board shall establish a Program Review Committee and a staff
to assist the Board in carrying out its responsibilities under this Regulation. The
Board’s staff shall be headed by a Program Coordinator, who shall also serve as
Chairman of the Program Review Committee and a nonvoting member of the Board.

1) Program Review Committee (PRC). The PRC shall be composed of
individuals appointed by the Chairman of the Board, and should include
representatives of the Coalition allies, the Council for International
Coordination and the Iraqi Interim Administration (when established), and two
nonvoting observers representing the International Auditing and Monitoring
Board and the U.N. Special Representative of the Secretary General for Iraq.
The PRC shall initially review all funding requests for which the PRB is
responsible, categorize them, and make recommendations to the Board with
respect to the priority, source of funding, and manner of executing the
requirements. The PRC shall perform such other functions as the Chairman of
the Board may direct.

2) Staff. Under the direction of the Program Coordinator, the Board’s staff shall:

a.
Distribute procedures to all CPA staff elements and other non-CPA entities
regarding the process for submitting funding requests;
b. Create and maintain a database of all funding requests:
c.
Monitor and account for balances of all available funds subject to budgeting
by the Board under this Regulation;
d. Receive all funding requests and assist proponents as necessary to ensure
that applications contain all necessary information;
e.
Ensure that all spending requirements have undergone prior review at the
regional or ministerial level prior to submission;
f.
Ensure that spending requests are fully consistent with a comprehensive
budgetary framework;
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g. Distribute copies of all spending requirements and related information to all
members of the Board for consideration;
h. Coordinate with proponents regarding any requests by the Board for
additional information;
i.
Organize and prepare materials for sessions of the Board;
j.
Create, maintain and distribute, as appropriate, all official records of the
Program Review Committee and the Board.
Section 6
Duties of the Board

1) General. The Board shall be responsible for recommending expenditures of
resources from the Development Fund for Iraq and other resources identified in
subsection 6 (3) of this Regulation, in a manner that meets the interests of the
people of Iraq, furthers CPA's policy objectives, and comports fully with the
CPA's stewardship and financial management duties under applicable laws and
regulations, including United Nations Security Council Resolution 1483 (2003).
The Board shall not be responsible for overseeing the manner in which approved
spending requirements are executed.

2) Funding Plan. The Board shall be responsible for reviewing all identified
requirements for the resources for which the Board is responsible; prioritizing
these requirements; and integrating the prioritized requirements into a funding
plan that forecasts available resources, recommends allocations of those
resources, consistent with the purposes for which they are lawfully available and
the relative priorities of all identified spending requirements; and sets forth the
justification for the proposed expenditures and the recommended manner in
which the expenditures should be executed (i.e., by contract or otherwise). In
performing this function, the Board shall consider relevant information
concerning relief and recovery efforts in Iraq and related budgeting documents,
including the Iraqi Ministry of Finance budget of Iraqi resources.

3) Resources Subject to Funding Plan. In proposing funding plans for the relief and
recovery of Iraq, the Board shall be responsible for recommending disbursements
of:

a.
Funds appropriated for such purposes by the U.S. Congress;
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b. Iraqi property lawfully vested in the U.S. Treasury, to the extent that the
Secretary of Defense is designated with authority to use such property to
assist the Iraqi people and assist in the reconstruction of Iraq;
c.
Iraqi state- or regime-owned cash, funds, realizable securities, or other
state- or regime-owned movable property seized in Iraq consistent with the
laws and usages of war;
d. The Development Fund for Iraq.
4) Preparation and Submission of Funding Plans.

a.
Frequency. The Board shall submit funding plans at such times as the
Chairman determines necessary to ensure the prompt and effective delivery
of resources to Iraq, consistent with a comprehensive budgetary framework
for Iraq.
b. Development. The Board shall, with the concurrence of a majority of voting
members, prescribe such procedures as may be necessary to enable the
timely preparation of funding plans, including instructions for identifying
and submitting spending requirements to the Board for consideration, and
procedures for advising the Board of current relief and recovery activities in
Iraq.
c.
Content and Format. Funding plans submitted by the Board shall include (i)
a description of the amounts available within each source of funding subject
to planning by the Board, as identified in Section 6 (3) of this Regulation;
(ii) proposed funding requirements for each category of funding, prioritized
to reflect the relative importance and urgency of the each such requirement;
(iii) a recommendation as to the U.S. executive agency to which any funds
appropriated by the U.S. government should be apportioned; and (iv) a
recommendation as to the manner in which the prioritized spending
requirements should be executed (i.e., by contract or otherwise). The Board
shall submit proposed funding plans in a format to be approved by a
majority of the Board's voting members.
d. Consultation with International Financial Institutions ("IFIs"). To ensure
that proposed funding plans are developed in view of needs assessments
being undertaken by the IFIs, the IFIs should be given an opportunity to
consult with the Board and the PRC on projects of significant value.
e.
Approval. All proposed funding plans shall be submitted to the
Administrator for approval.
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f.
Publication. Approved funding plans shall be published in Arabic and
broadly disseminated to the Iraqi people in a form to be prescribed by the
Administrator.
5) Execution of Funding Plans. The Board shall propose principles and standards for
expending funds for the relief and recovery of Iraq in a fair, consistent and
transparent manner, through contracts or otherwise. In developing these proposed
principles and standards, the Board shall consider prevailing international
standards relating to procurement, including the codes and standards used by
international financial institutions. Upon approval by a majority of the Board's
voting members, the Chairman shall submit these principles and standards to the
Administrator for final approval.

6) In carrying out these functions, the Board shall ensure appropriate coordination
with the Special Representative of the Secretary General for Iraq, or his
designee(s), in accordance with Resolution 1483 (2003) and, when and to the
extent appropriate, shall consult the Iraqi interim administration referred to in
paragraph 9 of Resolution 1483 (2003).

Section 7
Board Sessions

1) General. The Board shall meet at such times and in such locations as directed by
the Chairman. The Board shall meet in formal session for the purpose of taking
official action on any matter within the Board's responsibility, as set forth in this
Regulation. At the Chairman's direction, the Board, or any part thereof, may meet
in informal session, in order to plan or prepare for formal sessions of the Board,
or carry out such other functions as the Chairman may prescribe, in furtherance of
the Board's responsibilities.

2) Attendance. Formal sessions of the Board shall be attended by voting and
nonvoting members and such other individuals as the Chairman may authorize.
Informal sessions of the Board shall be attended by such members and other
individuals as the Chairman may direct.

3) Quorum. The Board may take official actions only in formal sessions at which no
fewer than seventy percent of the voting members of the Board are present.

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