2007 represented a new cycle in terms of European Youth Forum management as a new Bureau began its mandate, and a new bi-annual Work Plan, for 2007-08, was put into implementation.

In terms of finances, a central focus must be put on budget execution over the year, which was well below the initial budget, mostly in relation to Programmes and Activities (€67.000 lower) but also due to lower employment costs (€80.000).

One of the reasons for this lower expenditure was, indeed, the fact that a new cycle was begun, and during the first semester a bigger focus was placed on interpreting the priorities set by the membership and planning the execution of the Work Plan; this duly resulted in less concrete activities during this period. It is also important to stress that during 2007 there were several changes within the European Youth Forum Secretariat, with eight staff members terminating their contracts during the year: this had an impact on the capacity to execute the activities planned for 2007, alongside a direct impact on employment costs.

The year also saw the start of the new Youth in Action Programme, which includes, within Action 4.2, support to the European Youth Forum - settled, for 2007, at a maximum of €2.240.000. A new budgetary structure was also introduced, facilitating a stronger connection between the Work Plan and the Budget.

The overall income of the Youth Forum was higher than in previous years and surpassed €2.940.000. Expenditure also reached a higher level, totalling €2.877.449. As a result, there was a surplus of almost €66.000.

In terms of overall expenditures, these are divided as follows:

The biggest portion of the budget refers to the running costs of the organisation. Most of the budget is included within the framework of administrative grants, from the EU (Youth in Action) and the Council of Europe (93%). The remainder refers mostly to costs not accepted within the framework of these agreements.

Besides this comparison on the overall budget, it is interesting to see how the total costs of the Youth Forum budget have been evolving over the last three years, referring to the amounts allocated within the aforementioned grants.

In terms of expenditure, the biggest portion of the Youth Forum budget is allocated to employment costs, representing 41,49% of the total costs. Mainly due to the personnel changes indicated above, there was a reduction of over €100.000 (-7,91%) on these costs from 2006 to 2007.

The costs for Statutory meetings were €40.000 lower, due to the the bi-annual Ordinary General Assembly having already taken place during 2006.

With regards to funds allocated to the execution of activities and actions foreseen in the YFJ Work Plan, namely related to Youth Policy Development and Youth Work Development, there was an increase, as compared to 2006, with a total of €732.433 in 2007 against €685.994: representing an increase of 6,77% on the total allocated funds between the two years.

The division, including the costs for statutory bodies and meetings, was as follows:

It is important to reiterate that the Youth Forum strives for correctness and clarity in its accounts, which is essential for both the members and the Forum’s partner institutions; hence, why the auditing procedures in place are so significant, both the internal audit and the consultancy role of the Financial Control Commission, and the external auditors, Ernst & Young (appointed by the GA in Vilnius for 2007-2008).

This propriety is of greater importance given that almost 80% (eighty per cent) of the Youth Forum income stems from annual grants from international institutions. 76% (seventy-six per cent) of the total income in 2007 came from the European Communities’ Budget, through a grant from DG Education and Culture, while around 4% (four per cent) was from Council of Europe grants.

These grants aim to support all European Youth Forum activity (from staff salaries to event costs) and are regulated by annual contracts.

Partnership projects also constitute an essential part of Youth Forum income, and such income includes the support of partner organisations for concrete activities, e.g. YFJ Member Organisations hosting YFJ meetings, or grants from foundations or other entities, such as the United Nations, Governments or Local Authorities.

Volunteer Time Contributions (VTCs)are an essential source of external funding, and which allow the YFJ to fulfill its co-funding requirements as per the European Commission. VTCs also represent the further recognition of volunteer work as an important contribution to society and to the work of youth organisations. These contributions today represent approximately 5% of the Youth Forum budget.

Alongside these positive developments in the YFJ Budget, it is important to note the work done in 2007 to improve relevant internal regulations, with a thorough revision of both the Working Rules for Youth Forum Staff and the Internal Financial Guidelines.