Two main principles guide NSPA’s finances. First of all, NSPA works on a no profit, no loss basis, although using commercial business processes in many of its dealings. Secondly, costs incurred in the support of a weapon system are allocated to the customers using this principle. To achieve this, NSPA’s finances are organised in terms of specific projects or programmes.
NSPA works with two types of budget – one for operational activities and another for administrative activities.
Operational budgets contain credits for the creation, increase, modification and repair of stocks and equipment, for the purchase of supplies, for indirect services, and to cover corresponding transportation costs.
Administrative budgets contain credits for expenditure resulting from the internal functioning of NSPA, such as salaries, recurring expenditure for utilities, building maintenance and other operating costs, and capital expenditure for facilities, IT and communication equipment and project-specific investment items.
Each country participating in a Programme or project contributes to the administrative costs according to an approved administrative cost-sharing formula agreed by the participants.
Following a North Atlantic Council decision, NSPA complies with the International Public Sector Accounting Standards (IPSAS).
NSPA’s financial accounts and practices are subject to regular review by both internal auditors and the International Board of Auditors for NATO (IBAN).
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