()123Financial Report 2024 for the BSPC Joint Financing Mechanism (JFM) Contents A. Introductory Remarks and the Overall Result B. The Report in Detail 1. The BSPC Joint Financing Mechanism (JFM) 1.1 Financing of the BSPC 1.2 Basis for the JFM in 2024 1.3 Purpose of the JFM 1.4 Management of the JFM 2. Looking Back: JFM Result in 2023 3. Financial Result in 2024 3.1 Income in 2024 3.2 Result in 2024 and Implications for the 2025 Budget 3.2.1 Result by Budget Posts 3.2.2 Result by Expenditure Categories 3.3 Balance in 2024 3.4 Unused Means 3.5 Summary of the Financial Results in 2024 4. Proposed Budget Plan for 2025 Annex 1 Financial Result 2024 Annex 2 Proposed BSPC Budget Plan for 2025 Annex 3 Annex 3 of the Rules of Procedure ---------------------Baltic Sea Parliamentary Conference The Secretariat Unanimously approved by the BSPC Standing Committee in Brussels on 17 February 2025()223A.Introductory Remarks and the Overall Result The BSPC Budget for 2024 represents again a milestone in the BSPC’s financial governance. For the first time, the budget could be built starting from the very beginning upon the forward-looking foundations and contribution increases implemented in 2023. This foresight enabled comprehensive integration of these changes into the financial planning process from the outset. With € 246,000 in member contributions allocated for BSPC operations, the total expenditures for the year reached € 254,561. This expenditure exceeding the total member contributions was made possible following the Standing Committee’s decision to utilise, if necessary, up to 45 % of the unused funds from 2023. This agreement aimed to alleviate the extraordinary financial burdens of the host parliament and ensure the smooth execution of BSPC activities. Within this framework, it was also determined that the BSPC would cover the travel expenses of the youth participants at the Baltic Sea Parliamentary Youth Forum. Without this explicit decision to assume these costs, amounting to € 8,879, the budget would have closed with a modest surplus of € 318, reflecting precise and responsible fiscal management. Despite unanticipated additional costs associated with hosting the Annual Conference, savings in other areas balanced the budget. Moreover, previously unforeseen activities, such as a pivotal study visit to the Finnish border by Standing Committee members, were accommodated without undermining fiscal stability. Travel expenses for the Secretary General and costs of the Secretariat meetings were significantly lower than budgeted. Personnel costs adhered nearly exactly to the planned range, reaching 99 % of the allocation. As in the years before, the costs of technical and office equipment for the Secretariat had not yet been included in the JFM. Standing Committee meetings benefitted from the European Parliament’s financial support during the Winter Meeting, creating flexibility to reallocate funds to other essential activities. The working group budget was utilised at 95 % capacity, with additional costs for two sessions supported by the parliaments of Mecklenburg-Vorpommern and Norway, showcasing the spirit of collaboration among our member parliaments. In response to emerging conference costs crystallised during the year, the BSPC strategically absorbed higher expenditures than initially forecast. This aligns precisely with the intentions underpinning the 2023 contribution adjustments and statutory changes, affirming our commitment to financial agility. Information and communication costs were managed effectively, with any overages in one area balanced by underspending in another, resulting in expenditures at 94 % of the budget. The Standing Committee’s decision in Tallinn to allow up to 45 % of the 2023 reserves to cover necessary expenses further ensured financial stability. Taking a holistic view of the 2023 and 2024 budget years, the Joint Financing Mechanism achieved a cumulative reserve increase of € 40,338. As of the end of 2024, reserves()323stand at € 213,442, enabling—based on the decisions of the Standing Committee—the seamless transition of financial management from Mecklenburg-Vorpommern to Schleswig-Holstein at the beginning of 2025. Over the past decade, reserves have grown by € 154,130, a testament to prudent financial stewardship. This robust reserve ensures the BSPC’s operational independence for approximately one year, even in the face of unforeseen crises, such as the challenges posed by Russia’s illegal, unjustified, and unprovoked war of aggression against Ukraine. The Standing Committee’s November 2024 decisions in Tallinn reflected confidence in this financial strategy. These decisions include: • Maintaining nominal contributions for 2025, • Allowing up to 45 % of unused funds from 2023 to be utilised in 2024 if required, and • Allocating an additional € 40,000 from unused reserves for the 2025 Annual Conference, including the Baltic Sea Parliamentary Youth Forum, should costs exceed the 2025 budget. In conclusion, the 2024 budget underscores the critical importance of the contribution increases adopted in 2022. These funds have supported enhanced Annual Conference activities, facilitated additional politically significant initiatives, and enabled covering a significant part of the Secretariat costs under Paragraph 9 of the BSPC Statutes. By effectively managing resources, the BSPC has ensured its ability to respond to unforeseen challenges, support host parliaments to a greater extent in exceptional circumstances and solidify the future of the Baltic Sea Parliamentary Youth Forum as an integral part of the Annual Conference. This financial prudence exemplifies the BSPC’s shared commitment to sustainable, impactful governance and positions the BSPC for continued success in 2025 and beyond.()4231. The BSPC Joint Financing Mechanism (JFM) 1.1 Financing of the BSPC The activities of the BSPC in 2024 were financed – as in the years before – through five channels: •Firstly, the costs for delegates appointed by the member parliaments and parliamentary organisations to participate in BSPC activities – such as the Standing Committee, the Annual Conference, Working Groups, etc. – were paid by the sending parliament or parliamentary organisation itself. •Secondly, the BSPC Secretariat's operating costs were covered by the BSPC Joint Financing Mechanism (JFM), which the BSPC established in 2007. The nominal budget of the JFM (total running costs) was € 112,000. In November 2022, the BSPC Standing Committee decided to increase the membership fees and asked the member parliaments to make these increased fees available for the year 2023. This decision considered that the membership fees of the member parliaments for running costs had remained unchanged since the introduction of the Joint Financial Mechanism in 2007 and should compensate for higher costs and inflation. It also considered that the membership fees of the suspended and withdrawn Russian parliaments to the amount of € 33,644 were dropped and had to be compensated. Furthermore, the new Rules of Procedure include the decision that the costs for the Secretariat of the BSPC (documents, personnel support, technical equipment) should in future be covered directly by the membership fees and not – as in the years before – only indirectly via the remuneration for the Secretary General or via a member parliament or a parliamentary organisation. The sum for these administrative tasks could be raised based on the new contributions up to € 166,000. That opened the possibility to cover such costs for the secretariat of the BSPC in a first step – from 2023 to an amount of € 30,000 – significantly by the BSPC budget. In addition, the financial resources now available have opened up room for manoeuvre regarding decisions about the future accommodations of the BSPC Secretariat. •Thirdly, the remuneration costs (which included in the past years until 2023 de facto nearly all costs for personnel and technical support as well as the Secretariat costs and equipment) of the BSPC Secretary General (€ 80,000) were covered by the BSPC Joint Financing Mechanism. Some additional personal costs incurred in connection with the budgetary management of the Joint Financing Mechanism were covered by the Parliament and the Land Mecklenburg-Vorpommern also in 2024. •Fourthly, the host parliament covered the main part of the costs for the 33rd Annual Conference in Helsingør, which also included the technical costs for the Drafting and Standing Committee meetings and the Baltic Sea Parliamentary Youth Forum. The BSPC Joint Financing Mechanism covered a lesser part of the()523conference costs and the costs for the moderator, some of the accommodation, and the travel of the Baltic Sea Parliamentary Youth Forum participants. •Fifthly, as for meetings in other BSPC bodies, - depending on the place of the meeting - the parliament hosting the meeting provides specific basic amenities, for instance a meeting room and technical equipment. In 2024, the European Parliament and the Parliaments of Denmark and Estonia regarding the SC meetings, Finland, Mecklenburg-Vorpommern and Norway in the context of the Working Group meetings as well as Mecklenburg-Vorpommern and Hamburg in the context of Secretariat meetings hosted by them, covered partly the costs of the meetings (i.e., for premises, technology, partly catering and necessary transports on site). However, it can be stated again: Based on the new budget fundament, these meeting costs in 2024 could again be covered mainly by the BSPC budget. That means that one of the main concerns of the BSPC budget could also be met in 2024 due to the financial resources now available: The necessary costs for committee meetings could essentially be covered by the BSPC budget. This relieves the burden on the host parliaments and makes it easier to approve the hosting of committee meetings and their organisation. This has already proven to be very helpful in 2023 and 2024 and will continue to have a positive impact in the future.()6231.2 Basis for the JFM in 2024 The BSPC Rules of Procedure adopted by the 20th BSPC in fall 2011 and amended by the 29th BSPC in 2020 – relevant in 2022 – include provisions by the JFM for the BSPC Secretariat. They have served as the formal basis for the JFM since 2012. For the years 2023 onwards, the budget is based on the new Statutes and Rules of Procedure, which were adopted by the BSPC at the 2022 Annual Conference on 14 June 2022 and which, according to the current decisions of the BSPC Standing Committee, were supplemented by further amendments at the 32nd Annual Conference in Berlin and the 33rd A n n u a l Conference in Helsingør. 1.3 Purpose of the JFM The joint financial resources for the BSPC Secretariat should be allocated to, but not limited to, •meeting costs for meetings and, if necessary, interpretation in various BSPC bodies, including the Annual Conference; •compilation and layout (only exceptionally printing) of the BSPC Conference Report and other joint documents from the BSPC working bodies; •information activities and maintenance of the website (www.bspc.net); •remuneration of the BSPC Secretary General comprising mandatory social fees; •operating costs for the Secretariat; •travelling expenses for the Secretariat to Standing Committee meetings, Secretariat meetings and other relevant internal and external meetings and conferences; •support for the funding of the Baltic Sea Parliamentary Youth Forum as a back-to-back event to the annual conferences by the parliaments organising the annual conference member parliaments. That does not exclude the possibility of financing other types of joint activities via the JFM. The Standing Committee decides, in its fall meeting, on the nominal sum of the contributions to the Joint Financing Mechanism in the following year – from 2023 on additionally based on preliminary budget planning. The BSPC Standing Committee decided to raise the contributions in its meeting on 21 November 2022, in accordance with Paragraph 11.3 of the BSPC Rules of Procedure. The BSPC Standing Committee stated that there is an urgent need to raise the previous annual contributions to the BSPC to adapt the BSPC's work opportunities to past developments and the current situation and make them compatible with the future. The main reasons for this were the discontinuation of contributions from the Russian Legislative Assemblies following their departure from the BSPC and the significant overall increase in costs since the introduction of the JFM. Therefore, the BSPC Standing Committee decided to fix the contributions to the BSPC for 2023 as follows:()723•€ 25,000 for the big national parliaments, •€ 10,000 for the other national parliaments, •€ 8,000 for the regional parliaments and agreed to kindly ask for the payment of these contributions already in 2023. The Annual Conference unanimously approved this on 29 August 2023 with the adoption of the amended Statutes and Rules of Procedure: https://www.bspc.net/statutes-and-rop-adopted-by-the-32-bspc/ After all member parliaments had approved the increased contributions by the end of June, the amount totalled € 246,000, also for the year 2024. 1.4 Management of the JFM All BSPC member parliaments contributed to the JFM according to a cost-sharing model described in Section 11 and Annex 3 of the aforementioned BSPC Statutes and Rules of Procedure. At the latest at the beginning of each year, a letter of request is sent to the member parliaments of the BSPC, asking them to remit their contributions to the JFM. Contributions are deposited in a dedicated account at the German Bundesbank. Since the BSPC budgetary affairs have been administratively located at the Parliament of Mecklenburg-Vorpommern, the receiving Landeszentralkasse Mecklenburg-Vorpommern administered the account. By letter of 20 December 2019 to the Secretary General of the BSPC, the Minister of Finance of the federal state Mecklenburg-Vorpommern agreed to the further handling of the budget implementation for BSPC funds by the State Central Treasury in the State Office for Finance until the closing date for bookings in December 2021. The State Parliament of Mecklenburg-Vorpommern has agreed in its plenary sessions on 30 January and 10 December 2020, 15 December 2021 and 15 December 2022 that the parliament will continue to perform the tasks associated with its involvement in the BSPC and support the work of the Baltic Sea Parliamentary Conference as before. The Minister of Finance of the federal state Mecklenburg-Vorpommern furthermore agreed with a letter of 22 December 2021 to the further handling of the budget implementation for BSPC funds till the end of December 2023 and additionally with a letter from 3 January 2024 to the further handling of the budget implementation for BSPC funds till 31 December 2025. To ensure a seamless transition of the BSPC Secretariat, including financial management, to Schleswig-Holstein following the next Annual Conference in Mariehamn, the BSPC Standing Committee has decided that the administrative handling of the BSPC’s financial affairs will be transferred from the responsible authorities of Mecklenburg-Vorpommern to the authorities of Schleswig-Holstein. Recognising the importance of executing this transition at the start of a financial year, the Standing Committee initiated the process well in advance. Accordingly, the Schleswig-Holstein State Parliament will assume responsibility for managing the BSPC’s finances from 1 January 2025. After the financial authorities of Schleswig-Holstein confirmed the prerequisites for managing the BSPC account as of 1 January 2025, all member parliaments were requested in a letter dated 19 December 2024 to transfer their contributions to the new BSPC account. Simultaneously, the unused funds amounting to €213,442 as of 31()823December 2024 (see 3.4 below) were transferred to the new BSPC account on 15 January 2025. The previous BSPC account will remain open until all contributions for 2025 have been received, after which it will be formally closed. On this occasion, sincere gratitude is extended to all those in Mecklenburg-Vorpommern who have contributed to the exemplary and efficient management of the BSPC's finances over the past decade: • The Landtag of Mecklenburg-Vorpommern, for its essential decisions to facilitate and support this work. • The Presidents and the Director of the Landtag for their unwavering and comprehensive support. • The dedicated staff of the Landtag for their outstanding commitment and diligent implementation of tasks. • The Finance Ministers and their teams, for granting the necessary approvals and ensuring the process ran smoothly. • The staff of the State Treasury for their consistent dedication to ensuring swift and effective financial processing. This exceptional level of cooperation and commitment has enabled the BSPC’s finances to be managed to such a high standard over the past ten years. The Secretary General has the right to administer and use the JFM. The right to authorise expenses on the JFM account is vested in the parliament administration. The account is subject to audit by the state. The request letter for contributions to the JFM in 2024 was issued on 29 December 2023. Members were kindly asked to remit their contributions by 22 February 2024. Most contributions to the JFM for 2024 were paid until 22 February 2024 (see Table 1 in Section 3.1). By letter from 31 October 2023, the Nordic national parliaments noted that from 2024, the contributions of the Nordic parliaments will be paid by the responsible Nordic national parliaments. Annex 3 of the BSPC Rules of Procedure lists the relative cost shares of the BSPC members' contributions to the JFM for 2024. 2. Looking Back: JFM Result in 2023 The BSPC budget for the year 2023 has been built on a future-oriented fundament, considering the new BSPC Statutes and Rules of Procedure. The BSPC Standing Committee, after intensive discussions in its meeting on 21 November 2022 in Berlin, decided to increase the membership fees and to ask the member parliaments to make these increased fees already available for the year 2023.()923This decision considered that the membership fees of the member parliaments for running costs had remained unchanged since the introduction of the Joint Financial Mechanism 2007 and since the introduction of the remuneration for the Secretary General in 2012 in their amount until the end of 2022. However, at the same time, the membership fees of the suspended and withdrawn Russian parliaments in the amount of € 33,644 were dropped. The decision considered the fact that several member parliaments still had to go through procedural approval processes, given the short-term nature of the implementation. The decision of the Standing Committee – after all member parliaments accepted this – provided an increase in contributions to a total of € 246,000. This corresponded to compensation for the discontinued Russian contributions and inflation compensation regarding the administrative costs since 2007. In the context of these discussions, it was also necessary to consider that the BSPC Annual Conference 2022 in Stockholm, after intensive discussions on the content of the previous Rules of Procedure, had adopted new Statutes and Rules of Procedure given the Russian invasion of Ukraine. The new Statutes and Rules of Procedure include the decision that the costs for the Secretariat of the BSPC (documents, personnel support, technical equipment) should in the future be covered directly by the membership fees and not – as in the years before – only indirectly via the remuneration for the Secretary General or, as in previous years, via a member parliament or a parliamentary organisation. Therefore, this decision of the BSPC had to be included in the overall considerations for the budget volume required in the future. The manifold support that the BSPC has received through the assumption of costs by some of its members and others has made it possible to increase the reserve funds. Notably, in 2022, with the fundamental challenges caused by the war in Ukraine, the range of discussions held throughout the year also made it clear that these funds are necessary to be able to adequately manage every option for the further course of cooperation. As 2023 was a year of transition in which a number of parliaments were still approving the increases, the budget was initially set at a lower amount, also to be able to take into account possible decisions regarding the seat of the Secretariat. As part of budget management, it was therefore necessary to take into account for a few months that not all contribution increases might be available in 2023. It was not until June 2023 that the entire increased contribution amount was available in full for this financial year. That also directly impacted the annual budget of the BSPC in 2024. Therefore, budget management in the first six months was geared towards being able to manage with the lower amount in 2023 if necessary. This was also made possible by the fact that the European Parliament had essentially covered the costs for the Standing Committee meeting in spring, that fewer travel expenses were incurred than planned due to various factors and that a further meeting, which had been additionally considered, was not held.()1023Due to this and the fact that some costs were not incurred in the amount anticipated, it was also possible to increase the reserve funds in 2023 significantly. The current surplus amount enables the BSPC to cope with basic unforeseen situations, cover future accommodation solutions for the Secretariat, and, if necessary, provide adequate support to host parliaments so that the Baltic Sea Parliamentary Youth Forum can continue as a back-to-back event to the annual conference. As of 31 December 2023, the total expenditure for the JFM in 2023 amounted to € 197,541, yielding a total budget surplus of € 48,499. All results had been significantly below expectations. The result for travel, for the very most part, fell below budget because meetings and events in 2023 were held in Germany. The result for Meeting Costs similarly was well below budget because they were covered more by hosting parliaments or the meetings were cancelled. The operating costs nearly matched expectations. Interpretation costs were lower than planned, especially because of no necessary technology for the meeting and the interpretation. Costs for documentation were below budget. The information/communication budget was only used for less than a quarter of the planned amount. The Standing Committee approved the Financial Report 2023 at its meeting on 4 March 2024 in Brussels. The Financial Report 2023 was published in the general information about the BSPC on the website in accordance with paragraph 11.9 BSPC Statutes and Rules of Procedure: https://www.bspc.net/budget-report-2023-mbj-v-04-04-2024/ 3. Financial Result in 2024 1.Income in 2024 As mentioned before, the BSPC Standing Committee, after intensive discussions in its digital meeting on 5 September and in its meeting on 21 November 2022 in Berlin, decided to increase the membership fees, which had remained unchanged since 2007, and to ask the member parliaments to make these increased fees available for the year 2023. The Annual Conference unanimously approved this on 29 August 2023 with the adoption of the amended Statutes and Rules of Procedure. The BSPC Standing Committee decided at its meeting on 12 November 2023 in Maribo to approve the contributions for 2024, staying the same as in 2023, and that the budget structure and plan of 2023 shall be upheld in 2024. The letter requesting contributions to the JFM in 2024 was issued on 29 December 2023. As of 31 December 2024, the total actual income was € 246,000 (see Table 1). The reason is the new membership fees. Table 1. BSPC Income in 2024, EUR()1123* By a letter from 31 October 2023, the Nordic national parliaments noted that from 2024, the contributions of the Nordic parliaments will be paid by the responsible Nordic national parliaments. 3.2 Result in 2024 and Implications for the 2025 Budget 3.2.1 Result by Budget Positions The budget disposition for the JFM in 2024, once more confirmed by the Standing Committee on 4 March 2024, appears in the Budget column in Annex 1. Financial Contributions to the BSPC Joint Financing Mechanism in 2024, in Euro “Big” CountriesSharePaidDenmark25 00025 000 (17.01.)*Finland25 00025 000 (01.02.)*Germany (Bundestag)25 00025 000 (22.02.)Norway25 00025 000 (20.02.)*Poland (Sejm + Senate)25 00025 000 (15.+20.02.)Sweden25 00025 000 (22.02.)*“Small” CountriesEstonia10 00010 000 (07.05.)Iceland10 00010 000 (10.06.)*Latvia10 00010 000 (05.01.)Lithuania10 00010 000 (17.01.)Regional Parliaments Bremen8 0008 000 (22.02.)Faroe Islands8 0008 000 (17.01.)*Greenland8 0008 000 (17.01.)*Hamburg8 0008 000 (05.01.)Mecklenburg-Vorpommern8 0008 000 (19.02.)Schleswig-Holstein8 0008 000 (22.02.)Åland Islands8 0008 000 (14.03.)*Sum246 000246 000()1223As of 31 December 2024, the total expenditure for the JFM in 2024 amounts to € 254,561. This means a deficit of € 8,561 compared to the budget plan. The distribution of expenditures by budget positions appears in the Result column in Annex 1. Some comments concerning the results and possible implications for the budget plan in 2024 will further explain the distribution and size of expenditures by budget positions in Annex 1. In Section 1, Secretariat, the result is some € 8,600 lower than expected. The travel costs in post 1.1, the Meeting costs in 1.2, and the Operating Costs in 1.3 have been below the budget proposal. The meetings of the Secretariat are held in English only. Travel costs have been reduced by 29 % and meeting costs by 18 % - due to the fact that the choice of some locations where the meetings took place significantly reduced costs. The personnel costs and rent nearly match the proposal. The budget allocation and distribution for budget Section 1 in the 2024 budget proposal had to take into account the new para 10.3 of the BSPC Statutes and Rules of Procedure which had been adopted by the annual conference on 14 June 2022. Therefore, the budget started in 2023 to cover the operating costs of the Secretariat by the BSPC contributions. The proposal provided that in a first step, currently fixed incurred running costs are covered. That was maintained in 2024 in the same way as in 2023. Section 2, Standing Committee: The result falls below the budgeted amount by nearly € 10,500. The budget funds in 2.1 and rent and equipment funds in 2.2 were used for three regular meetings in Brussels, Copenhagen, and Tallinn – because the meetings took place in the parliaments, the costs to be incurred were considerably lower than the planning had to be based on – and a Study Trip by members of the Standing Committee to the Finnish borderline. The lower expenditure compared to the budget was primarily possible in this form because the European Parliament made its premises available for the meeting. Therefore, costs were not incurred for premises, technical equipment, and the main part of the catering. As a decision to hold an additional meeting this year cannot be ruled out, from a budgetary point of view, the planning approach of 2024 should also be maintained in 2025. Furthermore, the planning must take into account the fact that not every meeting can take place in a parliament without incurring costs for premises and technical equipment. Section 3, Working Groups, shows a result of € 1,231 lower than budgeted. The meeting costs were for the three meetings of the Working Group on Energy Security, Self-sustainability, Resilience, and Connectivity (3.1) in Helsinki, Greifswald, and Bergen. There were lower costs for technical support (3.2) because the Finnish parliament and other institutions provided premises and technical support. The costs for the interim report of € 3,739 (3.3) could be kept below budget because of a reduced volume and more digital links than planned, as well as more extensive preparatory work. In addition, the hosting parliaments, covered further costs that exceeded the BSPC's budget plan for these meetings.()1323The 2025 budget should continue to be prepared for meetings in such a way that the former practice of paying for the entire settlements through contributions from the BSPC budget can be sustained - taking into account cost increases in the meantime -, thereby facilitating the possibility of holding such meetings so that not only experts can be consulted, but exemplary projects and best practices can also be presented and visited on-site to a greater extent. The costs also vary depending on the conference location. For this reason, as in previous years, average values, including prices raised in the meantime for regular meetings, are used, which can be expected to cover the costs incurred. Section 4, 33rd BSPC Helsingør, shows a result that is some € 28,916 higher than budgeted. The main reason for this was that the meeting costs for the conference have risen in a way that could not be foreseen or planned due to programme items that were desired by all and considered important and very welcome. This could only be partially offset by lower costs for external experts. Therefore, covering part of the additional costs through the BSPC was fully in line with the objectives and purpose of the JFM, especially since these additional expenses could be offset by reduced expenses in other chapters that are mutually coverable with this chapter. The Standing Committee had decided in its meeting on 24 November 2024 in Tallinn that the BSPC would also assume the travel costs for the young participants of the Baltic Sea Parliamentary Youth Forum to the amount of € 8,879, independent of whether the draft budget for the support of the BSPYF in 4.4 or the budget size in total would be exceeded by, for example, this sum. Regarding the BSPYF, the BSPC, therefore, also covered the costs of the moderator, the travel costs and half of the accommodation of the youth participants. The host parliament and hosting institutions covered the costs for the catering and dinner for the BSPYF and the other half of the accommodation. Since the Baltic Sea Parliamentary Youth Forum shall be established as a permanent back-to-back event to the annual conference, the agreement is that not only the host parliament and the CBSS cover the costs but also continue to fund that event at least partly through the BSPC contributions. Only in that way can it be guaranteed that further hosts will also be able to manage holding it. In Section 5, Information/Communication, the result falls below the budgeted amount by nearly € 1,261. Only 6 % of the funds for information and communication were not used. One reason was that in 2023, regularly necessary means for the publication of the four rapporteur reports were not as high as expected. The former costs for personnel support of the website had been reduced and partly covered by 1.3.2. in the frame of a permanent contract. Based on a comprehensive technical analysis, it is necessary to continue updating technical aspects of the BSPC website to ensure its continued proper operation. This will be reflected in the budgeted means for 2025. Section 6, BSPC Secretary General, remains unchanged. In summary, it can be concluded that the results in total nearly meet the expectations. Due to the specific situation in 2024, there are much lower travel costs (Secretary()1423General) (1.1), lower costs for the Secretariat meetings (1.2), lower costs for the Standing Committee, lower costs for the Working Group (3.) as well as higher costs for the Conference (4.) and higher costs for the BSPYF, based on a respective decision. Lower costs have also been incurred for information and communication (5.) The deficit of € 8,561 reduces the unused means. The overall disposition of the proposed 2025 budget must take into account the new Statutes and Rules of Procedure of the BSPC, agreed in 2022 in Stockholm, as well as raised prices and inflation. It should also open up the possibility of covering the costs of future meetings primarily through contributions to the BSPC. For the case that unforeseeable costs will exceed the plan, and to open the possibility to support the hosting parliament regarding the conference even more in this year, the Standing Committee agreed and decided at its meeting on 4 November 2024 in Tallinn, - to maintain the nominal contributions to the Joint Financing Mechanism for 2025, - to uphold the current budget structure and plan in 2025 with the proviso that up to € 40,000 can be used additionally from the unused means for expenses in Chapter 4 for the 34th Annual Conference 2025, including the BSPYF, insofar as these costs exceed the 2025 budget. 3.2.2 Result by Expenditure Categories The distribution of expenditures by major categories appears in Table 2 below: Table 2. Expenditures in 2024 by Major Categories, EURMost of the results are below or near the expectations. The result for travel, for the very most part, fell below budget because several meetings and events in 2024 were held in CategoryBudget PostsBudget 2024Result 31.12.2024Travel1.12000014218Meeting Costs1.2, 2.1, 3.1, 4.15400071182Operating Costs1.3.1, 1.3.2, 1.3.3, 1.3.43000029585Interpretation, incl. equipment & technical support2.2, 3.2, 4.2170009171Documentation and Expertise 3.3, 4.3, 5.2 2000016409Information/Communication5.1, 5.31000010918Baltic Sea Parliamentary Youth Forum4.41500023078Subtotal166000174561Secretary General6.8000080000Sum total246000254561()1523Germany and Denmark and because of further cost-reducing effects and the increased possibility of taking part in meetings digitally. The result for Meeting Costs is well above budget as a result of the higher costs for the conference. Therefore, a higher proportion of the conference costs was also borne by BSPC. The operating costs nearly met expectations. Interpretation costs were lower than planned, particularly because the technology for the meeting and the interpretation was not necessary to the extent expected. Documentation costs are below budget. The information/communication budget was a little bit higher than planned. The background and reasons for that have been explained further in the previous sections. The overall result shows that higher financial support can be managed for upcoming parliaments hosting the annual conference and in the funding of the Baltic Sea Parliamentary Youth Forum. These considerations have been the basis for the Standing Committee's decision on the 2025 budget. 3.3 Balance in 2024 The balance of the JFM in 2024, as of 31 December 2024, is shown in Table 3. Table 3. Balance of the JFM in 2024, EURThe Income column indicates the nominal income for 2024. The total result shows a deficit of € 8,561. This has been explained in the sections above.3.4 Unused Means The principles for using the unused means (“Reserve Fund”) are laid down in the BSPC Rules of Procedure from 2011. The Rules state that “If additional resources are needed for organising events, the Standing Committee, after receiving an application from the BSPC Secretary, shall decide on the possibility of granting additional funding”. Moreover, “The Standing Committee shall decide on the BSPC budget reserve fund and its use”. The BSPC Standing Committee has agreed (31 January 2013) on the following procedure for authorising withdrawals from the Reserve Fund in accordance with certain provisions: IncomeExpenditureBalance246000254561-8561()1623A rapporteur/BSPC member who wants to examine the possibility of using the Reserve Fund contacts the BSPC Secretary General for deliberations. The Secretary General then raises the issue with the BSPC Chairmanship, which approves the use of the Reserve Fund. The Chairmanship and Secretary General also report to the Standing Committee about any uses of the Reserve Fund (cf. para 11.6 in the Rules of Procedure). The Standing Committee agreed in Hamburg (14 November 2021), digitally (16 November 2020), in Berlin (11 November 2019), Trondheim (13 November 2018), Mariehamn (17 November 2017), and in Hamburg (15 November 2016) that contributions do not have to be raised with a view to the next year because of the current surplus and that the same contributions as in previous years shall be paid. The Standing Committee in Riga (6 November 2015) agreed that the surplus could be used to develop a new website, draw up contracts to support the Secretariat with its work, special projects regarding the BSPC Silver Jubilee - i.e., a special brochure - and to cover unforeseen meeting costs, which might exceed original budget plan positions. The Standing Committee meetings in Liepāja and Riga (28 August 2016) agreed that the unused means could be used to finance the mission to Minsk of the Standing Committee (~€ 10,000) and a 2nd edition of the Silver Jubilee brochure. The digital Standing Committee on 16 November 2020 decided that, should the planned funds have been fully used at the end of the year, the costs for the seminar on 1 February 2021 and the publication on 30 years of the BSPC would be financed from the current budget surplus. There were no further considerations in this regard at that time. In 2016, the funds of the JFM were transferred from the Nordea Bank account to the Landeszentralkasse Mecklenburg-Vorpommern, which has administered the account since then. On 26 June 2015, € 168,821 were transferred into the new account. The current amount of the unused means is mainly due to the exceptional situation that five years earlier, no remuneration had to be paid for the Secretary General for one year and the state parliament of Mecklenburg-Vorpommern provided additional personnel support and due to the aforementioned savings in 2020 - 2022 because of the COVID-19 pandemic and some exceptional cost-reducing effects in 2023. On 31 December 2020, the amount of the unused means was € 129,712. On 31 December 2021, the amount of the unused means was € 143,531. On 31 December 2022, the amount of the unused means was € 173,504. On 31 December 2023, the amount of the unused means was € 222,003. On 31 December 2024, the amount of the unused means was € 213,442. This list makes it clear that the surpluses were not generated linearly through consistent spending cuts, but were only possible because the BSPC did not have to bear any Secretariat costs at all until two years ago. This was only made possible by the amendment of the rules of procedure in 2022, introduced and planned in stages, and has since been used for office rental and other personnel support costs. Until then, the Nordic Council and, subsequently, the Mecklenburg-Vorpommern state parliament had covered the running Secretariat costs over several years, and from 2018, the majority of the Secretary General's salary was used to finance these costs. At the same time, this was only possible because a member parliament had covered the costs of budget management and the associated personnel and management costs for the entire period()1723without invoicing them. In this regard, and in view of the change in budget management, for which this will also apply in the future, sincere thanks go to the state parliament of Mecklenburg-Vorpommern for the associated expenses. A crucial factor in the significant increase in reserve funds was that the current Secretary General did not claim any financial resources for his work for a year at the beginning of his term of office and this was not compensated for by other personnel support costs, so that the reserve funds increased by € 80,000 in one year. Significant increases were also recorded during the COVID period due to reduced travel and event costs and during the subsequent transition of the budget to the increased contribution situation and the adjusted rules of procedure, in a time frame in which the contribution increases could not yet be fully incorporated into the planning. 3.5 Summary of the Financial Result in 2024 As of 31 December 2024, the total expenditure for the JFM in 2024 amounts to € 254,561, yielding a total budget deficit of € 8,561. In summary, it can be concluded that the results are nearly exactly the expectations. There were much lower costs for the Secretary (1.), lower costs for the Standing Committee (2.), lower costs for the Working Group meetings (3.), higher costs for the Conference (4.), lower costs have been incurred for the technical support for the website (5.). Also, the total running costs taken all together nearly met the plans. The generated surplus opens up the possibility for the BSPC to support hosting parliaments more extensively if necessary, the retention of the Baltic Sea Parliamentary Youth Forum in connection with the annual conferences, to gradually and consistently implement the new regulations in the Statutes and Rules of Procedure, and to be prepared for future challenges in the years to come. 4. Proposed Budget Plan for 2025 The proposed budget plan for 2025 is found in Annex 2. On 4 November 2024, the BSPC Standing Committee decided, based on the outflows of funds that had occurred up to that point and those that were still identifiable, - to maintain the nominal contributions to the Joint Financing Mechanism for 2025, - to uphold the current budget structure and plan in 2025 with the proviso that up to € 40,000 can be used additionally from the unused means for expenses in Chapter 4 for the 34th Annual Conference 2025, including the BSPYF, insofar as these costs exceed the 2025 budget. In this respect, when drawing up the 2025 budget, it had to be taken into account that the funds made available by the increased contributions - despite the surpluses in 2023 - must be planned in full to consider the objectives and principles of the BSPC and its Statutes and Rules of Procedure and to be able to make cost-relevant decisions in areas that are discussed intensively in the Standing Committee and on which decisions are()1823expected to be made in 2025. The current reserve funds also make it possible to respond adequately to higher conference costs for the hosting parliament to again plan the Baltic Sea Parliamentary Youth Forum as a back-to-back event to the Annual Conference and to adequately meet unforeseen fundamental developments. Based on the included budget plan for 2025, the BSPC is well-prepared for all upcoming decisions.()1923ANNEX 1 BSPC Secretariat/31.12.2024 Financial Result 2024 (Euro) Budget PostResult 2023Budget 2024Result as per 31.12.2024Comments1. Secretariat (3 meetings)3 meetings held1.1 Travel (Secretary) to all BSPC meetings + other relevant meetings/events 131922000014218 (71%)1.2 Secretariat meeting costs 526060004915 (82%)Sec Berlin: 2169 Sec Riga: 2096 Sec Hamburg: 6501.3 Operating Costs1.3.1 Rent for Secretarial Premises672570006725 (96%)Jan-Dec1.3.2 Personnel Costs163991700016127 (95%)Jan-Dec1.3.3 Additional Personnel Costs563760006733 (112%)1.3.2 +1.3.3: 22860 (99%)1.3.4 Technical equipment--Subtotal472135600048718 (87%)2. Standing Committee (4 meetings)3 meetings, 1 Study Trip2.1 Meeting Costs135741800013321 (74%)SC Brussels: 2281 SC Copenhagen: 3083 SC Study Trip Oulu: 4085 SC Tallinn: 38722.2 Interpretation, incl. technical and organisational support, equipment4210600098 (2%)SC Tallinn bus shuttleSubtotal69042400013419 (56%)3. Working Group (3 meetings)3 meetings held3.1 Meeting Costs, incl. external experts1211115000015133 (101%)WG Helsinki: 4482 WG Greifswald: 3382 WG Bergen: 72693.2 Interpretation, incl. technical and organisational support, equipment81830002897 (97%)WG Greifswald: 2618 WG Bergen: 3276 NOK3.3 Documentation/Report216750003739 (75%) Personnel support & layout interim reportSubtotal150962300021769 (95%)4. 33rd BSPC, Helsingør, 20244.1 Meeting Costs 29761500037813 (252%)Dinner 25.08.: 145.000 DKK Meeting package 27.08.: 137.000 DKK4.2 Interpretation, incl. technical and organisational support, equipment724280006176 (77%)Organisational support & equipment: 5876 Support DC: 300()2023* The concrete amount of all contributions is: € 246,000 The detailed ratio of revenue to expenditure is as follows: € 254,561: € 246,000 = 103.48 % (rounded: 103 %) Deficit 2024: € 8,561 (Surplus 2023: € 48,499) Unused means per 31 December 2024: € 213,442 (2023: € 222,003) 4.3 Conference Report ENG 432750004849 (97%) Layout 4.4 Baltic Sea Parliamentary Youth Forum122311500023078 (154%)Moderator BSPYF: 40.000 DKK Accommodation: 66.000 DKK Subtotal267764300071916 (167%)5. Information/Communication5.1 BSPC Public Relations Work127550008655 (173%)Business cards SG: 175 Media wall: 2449 Articles website: 1035 Photographers: 49965.2 Layout of Reports 4497100007821 (78%)6 layouts5.3 Technical Preservation Website Functionality490050002263 (45%)Technical support, domainSubtotal106722000018739 (94%)Total Running Costs 117541166000174561 (105%)6. BSPC Secretary 800008000080000 (100%)RemunerationGrand Total197541246000*254561 (103 %)*()2123ANNEX 2 BSPC Budget Plan 2025 - approved by the SC in Tallinn on 4 November 2024, for confirmation by the SC in Brussels on 17 February 2025 BSPC Budget Plan for 2025 (Euro) Budget PostProposal 2025Comment1. Secretariat 3 meetings held1.Travel (Secretary) to all BSPC meetings plus other relevant meetings/events20,000The amount reverts to the pre-pandemic budget between 2007 and 2020, without including cost increases in the meantime.2.Secretariat meeting costs6,0003.Operating costs 3.1.Rent for secretarial premises 3.2.Personnel costs 3.3.Additional personnel support by contracts for individual services 3.4.Technical equipment and office costs 7,000 17,000 6,000 0,0001.3.1-1.3.3: starting to cover operating costs of the Secretariat via the BSPC contributions based on Para 10.3 of the BSPC Statutes and RoP adopted on 14 June 2022; 1.3.4: in 2024 still covered by renumeration for administrative reasons (see 6.1)Subtotal56,0002. Standing Committee (4 meetings)In 2024 3 meetings + Study Trip2.1 Meeting costs18,000Experts, facilities if necessary, catering, interpretation to English if necessary2.2 Technical and organisational support, equipment6,000Subtotal24,0003. WG on Energy Security, Self-sustainability, Resilience, and Connectivity (ESSRC (3 meetings)In 2024 3 meetings held3.1 Meeting costs15,000Experts, facilities if necessary, catering, interpretation to English if necessary3.2 Technical and organisational support, equipment3,0003.3 Final Report5,000Text and layout compilation surveySubtotal23,0004. 34th BSPC Mariehamn 4.1 Meeting costs15,000Experts 4.2 Technical and organisational support, equipment8,000Translation4.3 Conference report 5,000Text & layout4.4 Baltic Sea Parliamentary Youth Forum: proportionate support for the host parliament and the CBSS 15,000Technical and organisational support, equipment, catering()2223Unused means per 31 December 2024: € 213,442 (2023: € 222,003; deficit 2024: € 8,561)Budget Plan 2025 by Major Expenditure Categories Subtotal43,0005. Information/Communication5.1 BSPC public relations work5,000Staff support website management5.2 Layout of reports10,0005.3 Technical preservation website functionality5,000Necessary web platform updates, backups, sync with local development environment and code updates to preserve website functionality, technical improvement Subtotal20,000Total Running Costs 166,0006. BSPC Secretary80,000Remuneration Grand Total246,000*CategoryBudget PostsResult 2024Nominal allocation 2025Travel1.114,21820,000Meeting Costs1.2, 2.1, 3.1, 4.171,18254,000Operating Costs1.3.1, 1.3.2, 1.3.3, 1.3.42958530,000Interpretation, incl. technical and organisational support, equipment2.2, 3.2, 4.29,17117,000Documentation and Expertise3.3, 4.3, 5.2 16,40920,000Information/Communication5.1, 5.310,91810,000Baltic Sea Parliamentary Youth Forum4.423,07815,000Subtotal174,561166,000Secretary General680,00080,000Sum total254,561246,000()2323ANNEX 3 Joint Financing Mechanism of the BSPC Secretariat Shares of Contributions to the JFM The cost shares of the contribution or the BSPC members to the JFM are listed below: BSPC Member ParliamentShare in €*Denmark Finland Germany Norway Poland Sweden Estonia Iceland Latvia Lithuania Bremen Faroe Islands Greenland Hamburg Mecklenburg-Vorpommern Schleswig-Holstein Åland Islands25.000 25.000 25.000 25.000 25.000 25.000 10.000 10.000 10.000 10.000 8.000 8.000 8.000 8.000 8.000 8.000 8.000Total246.000