FC 93/8





Finance Committee



Ninety-Third Session

Rome, 13 - 17 September 1999

Financial Position as at 31 May 1999 (Part I) and Status of Contributions as at 30 June 1999 (Part II)1

Table of Contents

I. PART I - FINANCIAL POSITION AS AT 31 MAY 1999

A. EXPENDITURE AND OUTSTANDING OBLIGATIONS INCURRED AS AT 31 MAY 1999 AGAINST THE 1998-99 APPROPRIATIONS AND CREDITS

1. Expenditure and outstanding obligations for the first seventeen months of the Programme of Work of 1998-99, excluding Technical Cooperation (Chapter IV), were as follows:

Seventeen months
to 31.5.99
US$'000 		to 31.5.97
US$'000
Total programme of Work (as per Conference resolution 7/97)
Less: Technical Cooperation Programme Appropriation
Add: Other Income

Expenditure to 31 May 1999
Outstanding Obligations at 31 May 1999
Expenditure and Obligations Sub-total
Balance at 31 May 1999 available for further obligations



410,823
147,493
650,000
89,447
97,100
657,653


558,316
99,337		 650,000
\87,613
0
562,387
374,678
133,543
508,221
54,166

 

2. The position of the Technical Cooperation programme at 31 May 1999 was as follows

at 31.5.99
US$'000		 at 31.5.97
US$'000
Appropriation (as per Conference resolution 7/17)
Funds set aside for approved projects
Balance of appropriation available		 89,447
42,560
46,887		 87,613
53,420
34,193

B. STATUS OF WORKING CAPITAL FUND AND SPECIAL RESERVE ACCOUNT AS AT 31 MAY 1999

Working Capital Fund

3. The authorised level of the Working Capital Fund is $25 million. The balance at 31 May 1999 was $23.8 million.

Special Reserve Account

4. The authorised level of the Special Reserve Account is set by Conference Resolution 13/81 at 5% of the effective working budget for the subsequent biennium. In the first seventeen months of this biennium, $0.1 million of the related special assessments were received leaving an outstanding balance of $10.9 million at 31 May 1999. In the same period, net losses on exchange of $3.3 million were realised. The Special Reserve Account balance at 31 May 1999 was $28.6 million.

C. 1999 CASHFLOW FORECAST

5. The 1999 cashflow forecast (see Appendix A) assumes full spending of the net 1998-99 Programme of Work, excluding TCP. It is expected that the Working Capital will have to be advanced to the General Fund in late August to finance budgetary expenditure until receipt of contributions from the major donor expected in November.

D. STATUS OF TRUST FUND DELIVERY AS AT 31 MAY 1999

6. Delivery information

  Five months
to 31/5/99
(US$'000)		 Five months
to 31/5/98
(US$'000)
Delivery including commitments 95,429 109,397
Percentage of annual budget spent/committed 35.5% 41%
Project servicing costs as percentage of expenditure 11.3% 11.9%

7. Delivery by division:

TCO 82.0% 85.0%
Others 18.0% 15.0%
  100.0% 100.0%

E. STATUS OF UNDP DELIVERY AS AT 31 MAY 1999

8. The comparative delivery for the first five months of 1999 and 1998, including the Administrative and operational services (AOS) costs for the UNDP Programme, are as follows:

 

31/5/99
(US$'000)

31/5/98
(US$'000)

Disbursements

5,810

8,083

Commitments

4,025

7,374

TOTAL

9,835

15,457

Project Servicing/Administrative
and Operational Services (AOS) Costs

0.5

0.8

II. PART II - COLLECTION OF ASSESSED CONTRIBUTIONS - OUTSTANDING AND IN ARREARS AS AT 30 JUNE 1999

 

1999 1998
(for comparison)
9. Amounts outstanding on 1 January

Current Assessments2
Contributions in arrears
Total

Working Capital Fund
Special Reserve Account

US$
320,400,000.00
151,418,359.12
471,818,359.12

1,614,125.00
10,769,145.91

US$
320,400,000.00
136,160,133.13
456,560,133.13

1,620,800.00
10,841,776.91

10. Receipts 1 January to 30 June
Current Assessments
Contributions in arrears
Total

Working Capital Fund
Special Reserve Account		 168,183,584.89
11,573,326.32
179,756,911.21

0.00
0.00 		147,492,160.20
5,148,008.97
152,640,169.17

0.00
8,400.00

11. Amounts outstanding at 30 June
Current Assessments
Contributions in arrears
Total

Working Capital Fund
Special Reserve Account		 152,216,415.11
139,845,032.80
292,061,447.91

1,614,125.00
10,769,145.91		 172,907,839.80
131,012,124.16
303,919,963.96

1,620,800.00
10,833,376.91

 

Current Assessments

12. The following statistics show the cumulative month-end percentages of 1999 assessments received during the first six months of 1999, compared to receipts during the previous four years:

Percentages of Current Assessments Received (Cumulative - year to date)

 

1999 1998 1997 1996 1995
January
February
March
April
May
June
July
August
September
October
November
December 		9.36
12.27
46.74
50.55
51.71
52.49





 14.56
26.51
38.04
44.45
45.12
46.03
51.32
51.54
51.88
57.09
92.62
93.37		 12.43
25.81
53.84
55.66
57.43
61.81
62.39
68.89
69.57
75.00
75.17
96.00		 7.72
15.78
38.39
46.71
48.28
48.34
53.62
69.12
69.40
70.70
70.81
92.95 		7.88
32.06
40.24
40.44
52.41
54.70
58.15
60.97
64.14
64.60
65.79
70.82

 

13. The position of the 1999 assessments of Member Nations at 30 June 1999, compared to the same date during the four preceding years was as follows:

Number of Member Nations

1999 1998 1997 1996 1995
Paid in full
Part paid
No payment
Total		 54
22
99
175 		50
29
96
175 		53
27
94
174		 51
22
101
174		 47
19
103
169

 

Contributions in arrears

14. The position of Member Nations with arrears of contributions at 30 June 1999 was as follows:

Number of Member Nations

With arrears at 1 January 1999 106

Arrears paid in full
Arrears partially paid
No payment

 21
10
75
With arrears at 30 June 1999 85

 

15. Additional information regarding arrears due at 30 June 1999

Replenishment of the Special Reserve Account and Advances to the Working Capital Fund

16. The position of Member Nations with arrears due to the above reserve funds at 30 June 1999 was as follows:

 

  Special Reserve Account Working Capital Fund
Number of Member Nations    
With arrears at 1 January 1999
Arrears paid in full
Arrears partially paid
No payment
With arrears at 30 June 1999		 23
0
0
23
23 		28
0
0
28
28

 

FC 93-8a - Appendix A

 

CASHFLOW FORECAST ACTUAL JANUARY TO MAY AND PROJECTED JUNE TO DECEMBER 1999

(US$ millions)
  January February March April May June July August September October November December TOTAL
CASH BALANCE                          
at beginning of the month 104.7 101.8 73.9 151.4 154.2 124.1 104.8 89.0 64.9 44.0 46.0 112.5 104.7
Receipts 36.2 11.3 114.2 13.9 7.6 8.3 17.8 3.4 10.9 30.6 92.8 12.5 359.5
Disbursements (39.1) (39.2) (36.7) (11.1) (37.7) (27.6) (33.6) (27.5) (31.8) (28.6) (26.3) (43.1) (382.3)
CASH BALANCE                          
at month-end 101.8 73.9 151.4 154.2 124.1 104.8 89.0 64.9 44.0 46.0 112.5 81.9 81.9
REPRESENTED BY:                          
General Fund:                          
Cash 34.8 6.9 84.2 87.2 57.8 38.9 23.4 (0.8) (21.3) (19.1) 47.8 17.5 17.5
Investments 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8
Total Unrestricted Funds 36.6 8.7 86.0 89.0 59.6 40.7 25.2 1.0 (19.5) (17.3) 49.6 19.3 19.3
Restricted Funds:                          
Working Capital Fund 23.8 23.8 23.8 23.8 23.8 23.8 23.8 23.8 23.8 23.8 23.8 23.8 23.8
Special
Reserve
Account		 29.6 29.6 29.4 29.3 28.6 28.3 28.0 27.7 27.4 27.1 26.8 26.5 26.5
Fiduciary Funds 11.8 11.8 12.2 12.1 12.1 12.0 12.0 12.4 12.3 12.4 12.3 12.3 12.3
TOTAL CASH BALANCE 101.8 73.9 151.4 154.2 124.1 104.8 89.0 64.9 44.0 46.0 112.5 81.9 81.9

 

1 As a result of Oracle conversion issues, the FC paper 93/8(a) on the Financial Position as at 30 June 1999 for the upcoming session in September has been changed to Financial Position as at 31 May 1999. In view of the fact that the Council has already reviewed the status of contributions as at 16 May 1999 at its last session, information regarding the status of contributions as at 31 May 1999 would add little value to what has already been communicated. Accordingly, the contributions position is as at 30 June with the usual update as of the date of the discussion.

2 Of which US$1,250,000.00 relates to the Tax Equalization Fund.