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A. Financial position of the organization
B. Replenishment of the working capital fund
C. Increase of level of the working capital fund
D. Audited accounts for 1955 and 1956
E. Scale of contributions
F. Biennial budgeting
G. Staff matters
H. Staff compensation plan
I. Conference facilities
J. Office accommodation at headquarters
K. Report of the UN advisory committee on administrative and budgetary questions on its visit to FAO

535. The Conference considered the report of the Twenty-Fourth session of the Finance Committee submitted by the Council, on the financial position of the Organization and while noting with satisfaction that the over-all financial position of the Organization was sound, also noted that among the contributions in arrears, and in respect of 1957, were several large amounts, the non-receipt of which before the end of the year would create a deficit situation in 1957.

536. The Conference observed that in so far as one Member Government was concerned, the outstanding arrears were such that the Member Government was deprived of its voting rights during the current session of the Conference. The Conference appealed to Member Governments with arrears of contributions and with unpaid contributions in respect of 1957 to make speedy arrangements for the payment of the amounts due and instructed the Director-General when advising Member Governments of the amounts of their contribution, to draw attention to the necessity of complying with the provisions of Financial Regulation 5.4.

537. The Council at its Twenty-Sixth Session approved the implementation in FAO of the United Nations Salary Review Committee's recommendations and of the introduction of a new General Service salary scale at Headquarters. The total costs amounted to approximately $ 312,000. Of this sum, $ 41,000 was provided for by the Director-General General from savings introduced in 1957 in accordance with the recommendations of the then Chairman of the Program Committee and of the Finance Committee. 'file Council authorized the Director-General to withdraw the balance of $ 271,000 from the Working Capital Fund.

538. When authorizing the withdrawal of the $ 271,000 from the Working Capital Fund, the Council noted that the following surpluses were available: $219,146.76 from 1955 and $ 218,984.18 from 1956 operations.

539. In accordance with the Financial Regulations, advances from the Working Capital Fund authorized by the Council shall be reimbursed by such method as the Conference determines. The Council recommended that instead of releasing the 1955 surplus to Member Governments, that surplus, together with an amount of $ 51,553.24 from the 1956 surplus should be used to reimburse the Working Capital Fund for the amount of $ 271,000.

540. One Member Government proposed that the withdrawal should be reimbursed by an additional assessment in line with the suggestion of the UN Advisory Committee on Administrative and Budgetary Questions which had " noted instances in FAO of an unorthodox use of budgetary surpluses ". However, the Conference agreed with the Finance Committee that the utilization of the surpluses to repay the advance from the Working Capital Fund was the most practical method and of less inconvenience to Member Governments than any other way. The Conference therefore passed the following Resolution:

Resolution No. 53/57

Replenishment of the Working Capital Fund

The Conference

Noting that the Council had authorized an advance from the Working Capital Fund of an amount of $271,000 to cover the balance of the increased staff costs in 1957; and

Noting further that in accordance with Financial Regulation 6.5 (b) advances from the Working Capital Fund under Financial Regulation 6.2 (a) (ii) shall be reimbursed by such method as the Conference determines:

Decides that notwithstanding Financial Regulation 6.1 (b) this advance be reimbursed as follows:

By application of the 1955, surplus amounting to $219,446.76; and by application of $51,553.24 from the 1956 surplus.

541. Consequent upon the Director- General's budgetary proposals, the Conference considered the level of the Working Capital Fund of the Organization. It had before it the report of the Twenty-Sixth Session of the Council which had agreed with the view of the Twenty-Third Session of the Finance Committee, that the present level of the Working Capital Fund of $ 1,750.000 established when the budget was approximately $ 5,000,000 could be considered below a safe minimum on a budget of about $ 8,000,000.

542. The Director-General proposed to the Finance Committee that the Working Capital Fund be increased from the present $ 1,750,000 to $ 2,000,000. The Conference agreed with the Council that it would not be necessary to increase the Working Capital Fund to the full $ 2,000,000 proposed by the Director-General and decided to increase the Fund to $ 1,900,000 that is an increase of $ 150,000.

543. The Conference noted that Financial Regulation 6.2 (b) provided that there shall be a re-assessment if the Conference decides to change the level of the Working Capital Fund which would be made on I January 1958 in accordance with the contribution scale of that year. However, at the same time the surplus of 1956 becomes releasable in accordance with Financial Regulation 6.1 (b). This surplus amounts to $ 218,984.18. An amount of $51.553.24 had been used to reimburse the Working Capital Fund for the advance approved by the Council to cover increased salary and allowances costs Resolution No. 53/57) leaving an amount of $ 167,430.94 available to liquidate the advances required from most Member Governments on the increased level of the Fund. Therefore, in most instances no additional payments will have to be made. The Conference took note of the Director-General's reservation that should his experience in 1958 and in particular in 1959 be unfavorable, he would feel it incumbent upon him to recommend again that the level of the Working Capital Fund should be increased to the full $ 2,000,000 which he originally proposed.

544. The Conference passed the following Resolution:

Resolution No. 54/57

Increase of Level of the Working Capital Fund

The Conference

Having considered the present level of the Working Capital Fund in relation to the Budget;

Taking into account the necessity of ensuring the financial stability of the Organization;

Decides that the level of the Working Capital Fund shall be raised to $1,900,000 as from 1 January 1953.

545. The Conference considered the comments of the Finance Committee as submitted by the Council with regard to the Audited Accounts for 1955 and 1956 and the External Auditor's reports thereon and adopted the following Resolution:

Resolution No. 55/57

Audited Accounts for 1955 and 1956

The Conference

Having examined the Audited Accounts for the financial years ended 31 December 1955 and 31 December 1956 and the External Auditor's reports thereon, together with the comments of the Twenty-Second and Twenty-Fourth Sessions of the Finance Committee;

Approved the Audited Accounts for the above mentioned periods.

546. The Conference noted that, in accordance with the decision of its Eighth Session, the Director-General had submitted to the Council at its Twenty-Sixth Session and the Council had adopted for recommendation to the Conference, a scale of contributions for the Organization for 1958 and 1959, which was derived from the scale of assessments of the United Nations for 1956, 1957 and 1958. When the matter was discussed in the Council, a number of countries pointed out that a number of inequities had remained in the United Nations scale due to the fact that the contributions of the governments which are not members of the United Nations, which are assessed for special United Nations activities in which they participate' had not been adjusted after admission of new members to the United Nations; furthermore, the percentage contributions of some new members had not been definitely fixed at the time of the Council Session. the Council had, therefore, requested the Director-General to approach the United Nations, for the data necessary to eliminate these inequities. In lieu of the information requested by the Director-General, the Chairman of the United Nations Committee on Contributions had transmitted the proposed new 1958 United Nations Scale.

547. Since the proposed scale for 1958 of the United Nations corrects for most of the countries the inequities they had objected to at the last Council Session and in view of the fact that the present session of the Conference admitted three new Member Countries to the Organization' the Conference decided, as an exceptional measure, to adopt for application during the financial year 1958-59 the proposed 1958 UN Scale instead of the UN Scale in force during the calendar year 1957 as required by the decision it had taken at its Eighth Session. An important consequence of the adoption of the 1958 UN Scale was the reduction of the maximum assessment from 33.1/3%, as it stood under the 1957 UN Scale, to 32.51%.

548. The Conference therefore adopted the following Resolution:

Resolution No. 56/57

Scale of Contributions

The Conference

Having considered the report submitted by the Council on the proposed scale of contributions for 1958-59;

Taking note of the Report of the Committee on Contributions of the United Nations (document A/3714 of the General Assembly of the United Nations) as reported by the Director-General;

Taking into account that the 1957 Scale of Contributions of the United Nations does not contain the assessment of several new UN Member countries which are members of FAO, and has been revised in other ways;

Adopts for use in 1958 and 1959 the scale set out in Appendix G to this Report which is derived from tire proposed United Nations Scale of Assessments for 1958 as reported in document A/3714 referred to above, it being understood that in future the Scale of Contributions is once again to be based on the United Nations Scale of Assessments in force during the calendar year of the Conference Session.

549. In adopting this resolution the Conference noted the request of certain Member Governments (particularly Spain and Viet Nam) that appropriate consideration be given to the special problems which arise in computing their shares of the Scale of Contributions.

550. The Conference considered the reports of the Finance Committee and the Council on the subject of biennial budgeting on the basis of a study carried out by the Director-General, submitted in accordance with Resolution No. 41/55 of its Eighth Session. It agreed with the proposal for the adoption of a biennial budgeting system which is expected to greatly facilitate the work involved in the preparation and presentation of the Program of Work and would, in addition, allow the Director-General greater flexibility in its execution. It considered that it was of paramount importance, however' to ensure that the approved Program of Work would continue to be implemented in accordance with the decisions taken thereon. and that financial measures were necessary to control the rate of expenditure and to ensure that there would be no undue concentration of expenditures in one of the two years.

551. The Conference was furthermore of the opinion that the institution of the system of biennial budgeting further emphasized the need for the periodic reviews undertaken by the Program Committee and the Finance Committee, and further decided that the External Auditor's annual examination of the Organization's accounts and his report thereon should he continued, at least during the first financial period (1958/59) after which the position could be reviewed in the light of the experience gained. The Conference further decided to introduce the following new Financial Regulation 4.5:

552. It also maintained the principle established at the Eighth Session that annual contributions of Member Nations shall be assessed on the basis of half the biennial budget less miscellaneous income. Measures should also be taken for the continuation of the submission of annual figures to the United Nations for inclusion in the tables of comparative budgets of the United Nations and the Specialized Agencies.

553. The Conference requested the Director-General and the Council to report to the next Conference Session on the Organization's experience in the implementation of the system of biennial budgeting.

554. The Conference also noted that, in conformity with Rule XXII-2 of the Rules of Procedure, the Director-General, in accordance with the decision of the Council, had given due notice to Member Governments of the consequential amendments to the Constitution, Rules of Procedure and Financial Regulations necessary for the institution of the system of biennial budgeting.

555. In the light of the above considerations the Conference therefore adopted the following Resolution:

Resolution No. 57/57

Biennial Budgeting

The Conference

Having considered the reports of the Finance Committee and the Council on the implications of the adoption of a biennial budgeting system and the required revision in the Constitution, the Rules of Procedure and the Financial Regulations on the basis of a study carried out by the Director-General in accordance with Resolution No. 41/55 of its Eighth Session;

Approves the adoption of such a biennial budgeting system to come into force as from the financial period 1958-1959;

Further approves the consequential amendments to the Constitution, Rules of Procedure and the Financial Regulations appearing in Appendix I to this Report;

Decides that the annual contributions of Member Nations shall be assessed on the basis of half the biennal budget less miscellaneous income;

Requests the Director-General to report to the next Session of the Conference, through the Council, on the Organization's experience in the implementation of the system;

Further requests the Program Committee and the Finance Committee to pay close attention, during their periodic reviews, to ensure that in the implementation of a system of biennial budgeting a balanced Program of Work is carried out in accordance with the Conference decisions and the Rules of Procedure and the Financial Regulations.

556. The Conference noted the action taken by the Council on matters affecting staff morale. It further noted the desire of some Members that the Council should continue to pay close attention to questions relating to the recruitment and retention of the Organization's personnel.

557. The Conference approved the continuation of the arrangements relating to the funding of the Plan as authorized at its Eighth Session by Resolution No. 49/55, and as endorsed by the Finance Committee and the Twenty-Sixth Session of the Council.

558. The Conference approved the proposal of the Director-General as concurred in by the Finance Committee and endorsed by the Twenty-Sixth Session of the Council to abolish the Conference Facilities Account as of 31 December 1957, and to include the expenditure and income of the facilities in the general budget of the Organization as from I January 1958. It therefore adopted the following Resolution:

Resolution No. 58/57

Abolition of Conference Facilities Account

The Conference

Having reviewed the status of the Conference Facilities Account;

Noting that the use of tire facilities by outside bodies had tended to decline end that the original considerations which prompted the establishment of e separate Conference Facilities Account no longer apply to the extent anticipated;

Reaffirming the general principles, eligibility criteria, and minimum standards followed heretofore by the Director-General in making the Conference facilities available to outside organizations agencies and in establishing appropriate rates;

Recognizing that as of 31 December 1957 the Conference Facilities Account is expected to show a deficit;

Decides that the Conference Facilities Account shall be closed as at 31 December 1957;

Further decides that in the future expenses and income relating to the Conference facilities of the Organization shall be included in appropriate chapters of the budget;

Further decides that the balance of the Conference Facilities Replacement Account be utilized to offset in part such deficit, that the balance of the deficit be met to the extent possible from any surplus income available at the end of 1957; and that if such surplus is not sufficient the balance be met from savings in the 1958-59 program;

Authorizes the Director-General to continue applying such principles, criteria and standards, consulting the Council and the Finance Committee as appropriate on the policies and rates governing outside use of Conference facilities.

559. The Conference noted with satisfaction the progresse made in the negotiations with the Italian Government on means to alleviate the insufficiency of presently available space at the Haedquarters' site and expressed its appreciation to the Government of the Italian Republic. It approved the action taken in this respect by the Twenty-Sixth Session of the Council with respect to the Director-General's proposals to utilize some additional space in the Headquarters buildings, partly on a temporary basis and partly on a permanent basis, to overcome the period between the beginning of 1958 and the completion of the proposed new wing.

560. The Conference took cognizance of the note circulated by the Director-General on the Report formally submitted by the UN Advisory Committee on Administrative and Budgetary Questions to the 12th Session of the General Assembly, on the study that the Committee had carried out at FAO Headquarters on administrative and budgetary coordination between the United Nations and the Specialized Agencies, including questions relating to the administration of the Expanded Program of Technical Assistance.

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