PROGRAMME. BUDGETARY. FINANCIAL AND ADMINISTRATIVE MATTERS
Programme Evaluation Report 1992-931
125. The Council welcomed the first issue of the Programme Evaluation Report which, together with the Programme Implementation Report, replaced the former Reviews of the Regular and Field Programmes. It expressed satisfaction that the new reporting arrangement, decided upon by the last Conference, permitted an integrated coverage of Regular and Field Programme activities and also made a clear distinction between in-depth evaluation reporting and biennial performance reporting.
126. The Council also agreed on the merits of its being able to examine, at the same session, the Programme Evaluation Report, the Medium-term Plan and the proposals for the Summary Programme of Work and Budget.
127. The Council noted that the present Report had been examined by the Programme and Finance Committees at their last sessions in May 1993, and that the Programme Implementation Report for 1992-93 would be submitted to it at its November session, also through the Programme and Finance Committees.
128. The Council welcomed the Programme Evaluation Report as an informative and useful report, containing a candid assessment of implementation achievements and results under the selected programmes and topics. In its view, the Report represented an improvement over the former Reviews of the Regular and Field Programmes. Thus, the selected subjects were covered more comprehensively, analyses were more focused on results, and the conclusions and issues raised in the various chapters provided useful feedback for planning and implementation of the respective programmes and topics in future. It also appreciated the mix of programmes and topics covered, including small-scale fisheries and international trade, which presented a cross-section of various types of FAO programmes and operations. The Council expressed satisfaction with the significant achievements under the various programmes. Many members considered the performance creditable, particularly under a period when the Organization had faced financial constraints.
129. The Council agreed that the first issue of the Programme Evaluation Report presented a good basis for progressive improvements in the future issues. In this connection, several members pointed to specific areas where improvement would strengthen the evaluative quality of the Report. These included: clearer identification of the results and targets planned, including costs involved; more explicit analysis of gaps and deviations between the activities planned and the actual achievements, together with analysis of reasons, gender considerations, long-term impact and more cost-effectiveness oriented assessment; and further integration of field operations in analysing the Regular Programme based programme implementation. Some members also felt that future reports should further highlight inter-agency and other external cooperation in FAO's programme implementation. However, the Council recognized the complexities and cost involved in applying cost-benefit techniques to globally-based, service-oriented programmes implemented by FAO, and considered that improvements should be made progressively, keeping in view the cost benefit of such improvements.
130. The Council stressed the importance of evaluation as an essential means for accountability and for improving the relevance, efficiency and effectiveness of FAO programmes. It considered that the new Programme Evaluation Report represented an important contribution to strengthening FAO's internal evaluation system. It highlighted the importance of effective feedback from evaluation to
programme planning and implementation and suggested that relevant evaluations and reviews covered by the Report also be submitted to the respective technical committees of the Council for their in-depth technical consideration.
- Part One - In-depth Review of Selected Programmes
131. The Council generally welcomed the in-depth review of the three programmes, both in terms of the selection of topics and the content of the review. It appreciated the informative and impartial nature of these reviews, which also highlighted relevant issues and lessons. Many members considered, in particular, the review of small-scale fishery programmes as a model for future reviews, in terms of its critical but constructive analysis.
132. On the Sub-programme for Crop Protection (Chapter One), many members expressed their support, appreciating the balanced blend of FAO's global normative activities and a substantial field operation, covering both longer-term institution-building support and emergency operations. Similarly, the importance of the two Sub-programmes dealing with FAO's statistical activities (Chapter Two) was stressed by many members, who endorsed the suggestion of the review that work on socio economic development indicators, such as food security, malnutrition, poverty and environment, should be strengthened. A number of members expressed their interest and support, both as donor and recipient countries, to FAO's small-scale fisheries development programme (Chapter Three). The Council endorsed the suggested in-depth evaluation of the Programme, which could focus, inter alia, on the difficulties encountered in developing local pilot activities into full-scale programmes in various countries.
-Part Two - Evaluation of Field Programmes
133. The Council considered with particular interest the synthesis of 579 project evaluations conducted between 1985 and 1991 (Chapter Four). It appreciated the candour and the scope of analysis, which went beyond the syntheses presented in the former Review of Field Programmes. The findings of this analysis, especially as regarded various weaknesses, provided a good guide for future improvements in FAO's field operations, and the Council encouraged the Organization to pursue further measures on the lines mentioned in the concluding paragraph of the chapter.
134. At the same time, the Council expressed concern over some important weaknesses in various aspects of field operations as portrayed in the synthesis, especially those relating to project design. A number of members stressed, in this regard, the importance of upgrading skills in project design and evaluation, both for FAO staff and officials of member countries. Some members stressed the importance of a greater use of ex-post evaluations which were very few among the project evaluations covered, as well as the importance of paying greater attention to assessing long-term impact of projects, their cost-effectiveness, their sustainability and their replicability. Others stressed the need for multidisciplinary approaches to project planning.
135. During the debate a number of questions were raised on the methodological aspects of project evaluation, as well as those on the synthesis itself. The Council was informed, in particular, that: the coverage of 579 project evaluations represented the total number of project evaluations during the period, without involving any sampling; each project evaluation was based on the common evaluation methods as practised by the UN agencies and as applied by individual evaluation teams; and the synthesis represented the assessment of each individual evaluation team on the key aspects, with each team applying the broad common criterion in expressing its assessment. The Council noted with concern the weaknesses observed in project design which reportedly constituted a common problem across the UN agencies. It also noted that the main reason for the lack of ex-post evaluations was the absence of funding by donors for this purpose, and that FAO indeed maintained active collaboration with various UN agencies and some of the multilateral funding institutions.
- Part Three - In-depth Review of Thematic Topics
136. The Council welcomed the topic covered in Chapter five, FAO Activities in Support of the Development of International Trade and appreciated its informative and comprehensive coverage. It was suggested that the content of this chapter also merited consideration by a more specialized forum.
137. The Council recognized the impressive range of activities under the several FAO programmes concerned, representing a balanced mix of activities where FAO had comparative advantages. It expressed support for the Organization's efforts in promoting international trade, including the work on the Guidelines on International Agricultural Adjustment. It emphasized its appreciation for FAO's close collaboration with other international organizations, especially its support to GATT throughout the Uruguay Round of Multilateral Trade Negotiations. The Council expressed particular appreciation and support for the activities under the Codex Alimentarius Commission. It stressed the importance of continued cooperation between Codex and GATT, and called for further assistance to developing countries to facilitate their participation in the preparation of international standards and in their effective application so as to take full advantage of new international agreements on trade in food and agricultural products.
138. The Council expressed its appreciation for the concise and well focused Medium-term Plan document, which responded well to the Conference directives. It considered the Plan to be of particular strategic interest and supportive of the dialogue among Member Nations on the longer-term orientations and priorities of the Organization.
139. The Council recognized that the formulation of the Plan had benefited from an extensive process of consultations involving its own technical committees, i.e. the Committees on Agriculture, Fisheries and Forestry, as well as the cycle of FAO Regional Conferences held in 1992. The Council also noted that the Plan had been reviewed by the Programme Committee at its May 1993 session. The Council, therefore, had no difficulty in giving its overall endorsement to the substantive thrust of the document.
- Director-General's Introduction and Chapter 1: The Context of FAO's Action
140. The Council welcomed the policy message of the Director-General's Introduction, including the cautious assessment of resource prospects at a complex juncture in international cooperation, and the comprehensive coverage of issues in Chapter 1. In particular, the Council felt that the major challenges confronting the Organization had been well presented and it could generally concur with the responses outlined.
141. The Council supported especially the link between the Regular and Field Programmes and welcomed the emphasis on FAO's assistance to building up national capacities. It welcomed the intention to accord greater importance to the role of the private sector and to broaden FAO's partnership with other key actors in the development process, such as non-governmental organizations. The Council commented selectively on a number of important management issues addressed in the Plan.
142. The Council discussed the requirements of the countries with economies in transition, especially those of Eastern Europe, in their efforts to establish viable market-based economic systems. It agreed that because of the Organization's universality and the impact of developments in these countries on policy concerns of global significance, FAO should be prepared to respond to future requests for assistance stemming from these countries.
143. The Council stressed, however, that this assistance should not negatively affect FAO's capacity to meet the requirements of other regions and expressed the hope that additional resources would be available to enable FAO to shoulder this growing responsibility. The Council underlined that FAO's action in this sub-region should, in any event, continue to be primarily of a catalytic and "qualitative" nature, ranging from supporting the transfer of appropriate technologies in specialized fields, to assisting these countries to adjust to the standards of more advanced economies in Western Europe and other regions, through the provision of direct advice on highly-focused subjects. It was also suggested that FAO could usefully assist in the exchange of experiences among the concerned countries themselves. The Council urged that attention be given to refining present FAO priorities in the region and to adjusting its programmes to the new situations.
- Chapter 2: Cross-sectoral Priorities
144. The Council agreed that the reorientation of major cross-sectoral priorities in the Plan had been significantly influenced by the impact of UNCED (the United Nations Conference on Environment and Development) and ICN (the International Conference on Nutrition). Accordingly, the chapter now addressed the following five priorities: environment and sustainable development; policy advice; people in development; poverty alleviation, nutrition and food security; and economic and technical cooperation among developing countries (E and TCDC).
145. In connection with environment and sustainable development, the Council stressed that, within its mandate, FAO was uniquely qualified to conduct the comparative analysis of trade-offs between often conflicting short- and long-term objectives and to advise Member Nations on the related policy options. The Council also underlined that poverty alleviation indeed remained a basic mission of FAO, underpinning a broad range of activities, in which people's participation was an essential element in bringing about the necessary changes in attitudes and policies to uproot poverty.
146. The Council reiterated the great importance of FAO actively supporting the initiatives of Member Nations regarding economic and technical cooperation among developing countries, and urged the Organization to accelerate efforts and to further pursue innovative approaches in strengthening the capacity of developing countries to fully exploit ECDC/TCDC potentials.
- Chapter 3: Programme Priorities
147. The Council generally supported the medium-term objectives and priorities outlined under the three Major Programmes of Agriculture, Fisheries and Forestry. It underlined more particularly the need for positive reallocation of resources to be accorded to forestry activities, in view of the central importance of conservation and improved management of forests in a context of unprecedented environmental threats, linked to rapid deforestation and desertification. The emphasis on responsible fishing and the importance of ongoing related FAO activities were also widely supported.
148. Among the various sectoral priorities, the Council singled out the continued active FAO role in the preservation and management of plant and animal genetic resources; its key normative activities, many with important dimensions facilitating trade, such as Codex standards and the implementation of the International Plant Protection Convention (IPPC); FAO's support to agricultural research and technology transfer; and the promotion of promising techniques such as Integrated Pest Management (IPM). FAO's unique contribution to the assembly of statistics and dissemination of information - including through the full-scale establishment of WAICENT - was also emphasized.
149. In the course of the debate it was recalled that, as considered by the Programme Committee, the Plan should have given more adequate attention to the impending problems of severe water shortages in many regions of the world. The importance of improved range management and pasture utilization, particularly in dry areas, also required more comprehensive approaches by the Organization, within the context of overall natural resources conservation objectives.
- Chapter 4: Regional Issues and Priorities
150. The Council considered that this chapter provided a balanced view of the main issues affecting agricultural and rural development in the different regions and felt that the proposed priorities constituted an appropriate response by the Organization. The extent and pressing nature of the requirements for assistance of the Africa Region were specially highlighted.
151. While noting that no projections had been included in this version of the Medium-term Plan, in the light of diverging opinions on the matter at the last Conference, the Council in general agreed on the usefulness of purely indicative resource projections for future versions.
152. The Council recognized that the Fiftieth Anniversary of the founding of FAO in Quebec City, Canada, on 16 October 1945 would be celebrated during the period of coverage of the Medium-term Plan.
153. In this connection, the Council welcomed the offer by Canada to mark this important event by a number of initiatives, which would include:
154. The representative of Canada advised the Council that fuller details on these proposals would be announced at the Twenty-seventh Session of the Conference. The Council expressed its appreciation to the Government of Canada for its initiative, and looked forward to further consultations among Member Nations on this important event.
155. The Council reiterated its broad endorsement of the Medium-term Plan and looked forward to its fruitful consideration by the Conference.
Summary Programme of Work and Budget 1994-953
156. The Council expressed its appreciation for the improved format and clarity of the document, which it considered appropriate to the scope of its discussion. The Secretariat undertook to supply as usual, more details on key features of the proposals and on proposed activities that would be available in the full Programme of Work and Budget.
157. The Council observed that the proposals had been the object of the usual process of consultations. This process had begun with the consideration of an Outline Programme of Work and Budget by a joint meeting of the Programme and Finance Committees in February 1993, followed by the discussion of previews of proposals, as relating to their respective sectors, by the Committees on Agriculture, Fisheries and Forestry. Finally, the Summary itself had been the object of a full review by the Programme and Finance Committees in May 1993, according to their respective terms of reference. The Council recalled that these committees had recommended that the Council request the Director-General to proceed with the preparation of the full Programme of Work and Budget on the basis of the Summary.
158. The Council agreed mat the policy context which had influenced the formulation of proposals was particularly well described in the Director-General's Introduction.
159. The Council stressed that this context focused on the need to address competing demands. The Council highlighted the multiple challenges confronting the Organization, stemming inter alia from the combination of continued population growth, the acute economic and social problems experienced by many least developed countries and the unprecedented environmental pressures on scarce natural resources. FAO had a key role in the implementation of the results of two major conferences, Agenda 21 of UNCED and the Plan of Action of the ICN. Yet, given the considerable pressures on public finances, the Council also recognized that budgetary restraints were a prevalent concern of Governments.
160. The Council agreed that the Director-General's proposals were aimed at permitting the Organization to respond to the priorities, especially those arising from the follow-up to UNCED and to the ICN, and to maintain the important role of FAO in the solution of world food and agricultural problems. At the same time, the Council considered that the programme proposals evidenced realism, bearing in mind both external and internal factors affecting the Organization.
161. The Council noted in particular the acute economic and financial problems experienced by many Member Nations, which were constrained in their efforts to meet their contributions. This had led the Director-General not to propose any net programme increase to the Programme of Work for 1992-93 of US$676.9 million, as unanimously approved by the last Conference and implemented during the current biennium.
162. In addition, the Council recognized that the proposals reflected the impact of sharply reduced Support Cost income. The Council noted that the total number of established posts under Support Cost funding - which had reached a high level in earlier periods of steady expansion of field activities -had been drastically reduced in recent years. It was further noted that the proposed transfers to the Regular Budget of posts hitherto under Support Cost funding were limited to those essential for continuation of activities or functions required under the Regular Programme. Some members expressed concern about the rationale for such transfers and sought further justification in the full Programme of Work and Budget.
163. The Council observed that the above context had also led to proposed reduced allocations for many valuable technical activities and, in particular, net overall reductions for the Major Programmes Forestry and Fisheries. The Council shared in this connection the strong concerns expressed by its own technical committees and by the Programme and Finance Committees. It recalled that these concerns had been particularly pronounced with regard to forestry. The Council, therefore, requested the Director-General to make every effort to redress these aspects in the full Programme of Work and Budget which would be submitted to the Twenty-seventh Session of the Conference in 1993.
164. The large majority of members reiterated the importance they attached to the Technical Cooperation Programme (TCP). They expressed regret that the Conference Resolution 9/89 on the increase in allocation for TCP could not be fulfilled. They noted with concern that the proposal to cover the cost of the TCP coordinating unit within the level of the TCP appropriation would effectively reduce the resources available for projects. They strongly urged that the programme level be at least maintained in the full Programme of Work and Budget.
165. The Council gave its broad endorsement to the priorities and substantive thrust of the proposals. It considered that these were in general consonant with the expected active FAO involvement in the implementation of Agenda 21 of UNCED and the Plan of Action adopted by the ICN, and consistent with the orientations of the Medium-term Plan. The Council stressed that within its mandate, FAO was uniquely placed to pursue, inter alia, the promotion of sustainable agriculture and rural development in Member Nations.
166. Bearing in mind its preceding discussion of the reports of its technical committees and of the Medium-term Plan, members of the Council reaffirmed the importance of a wide range of substantive activities and priorities to which they attached special importance. In particular, the Council reiterated the key role of FAO in the conservation and management of plant and animal genetic resources, the relevance of FAO information dissemination activities, and the importance of FAO long-standing assistance to Member Nations in such areas as agricultural research and training and extension. Establishing a centre for farm animal diversity and preparing for the International Technical Conference on Plant Genetic Resources were stressed.
167. The Council stressed again the central importance of FAO fisheries programmes, especially in the light of recent initiatives on Responsible Fishing, and expressed the hope that substantial progress on a Flagging Agreement as part of the Code of Conduct on Responsible Fishing would be made by the time of the Conference. The Council emphasized the formidable requirements for forest conservation and the role of forests in sustainable development, as well as the fight against desertification.
168. The Council also agreed with the priority given to the countries in transition to market-based economic systems in Central and Eastern Europe and the corresponding increase in resources for the
Regional Office for Europe, while reiterating its expectation that this should not be at the expense of the extensive requirements of other regions.
169. The Council was informed that it had proved possible to reduce the estimates of cost increases from the preliminary figure mentioned in the Outline Programme of Work and Budget, i.e. from US$85 million to US$81 million. The Council was also informed that these estimates would be further reviewed during the formulation of the full Programme of Work and Budget. While the Council stressed the importance of adequate provision for approved programmes, the hope was also expressed that more refined and updated information on cost increases could lead to an even lower figure.
- (b) Proposed Method of Funding
170. The Council considered the proposed method of funding, based on the partial use of the substantial arrears payments expected in 1994-95, which would contribute to reducing substantially the call on contributions from Member Nations.
171. One member expressed its opposition to the proposed use of its arrears payments for financing the Programme of Work and Budget, while suggesting instead that these arrears payments be used in connection with a special spending plan approved by all Member Nations. This member also drew attention to the implications of the proposal for the longer term, when no substantial arrears payments would be available, which could lead to an eventual abrupt rise in assessments. This latter view was shared by a few other members. Some members also indicated that due to the uncertainty of substantial payment of arrears, in relation to earlier indications of obligations to be met, this method of funding would expose the implementation of the Programme of Work to some risk.
172. Most members, however, welcomed the proposed funding arrangement, especially in view of its impact on assessments. They recalled that arrears payments had always effectively been used to fund obligations incurred in the implementation of each Programme of Work.
173. While recognizing the extraordinary level of payment of arrears expected in the 1994-95 biennium, the Council stressed that arrears payments were part of the normal financial life of the Organization and that arrears constituted a collective asset owned by the whole FAO membership. In this connection, the Council noted the provisions of Financial Regulation 6.1(a), according to which all receipts from contributions of Member Nations, whether current or arrears, were credited to the General Fund. The same regulation required that all general expenditures be made from the General Fund.
174. The Council observed that the proposed Summary Programme of Work and Budget had been prepared on the basis of a lapse factor of three percent, as approved by the FAO Conference at its Twenty-fifth Session in 1989. Some members felt that the lapse factor should be increased to bring it closer to current vacancy rates. On the other hand, many members stressed that the lapse factor should reflect fortuitous savings as opposed to forced savings, and that the lapse deduction should not be an impediment to the execution of approved programmes. The Council looked forward to further consideration of this issue during discussions on the full Programme of Work and Budget.
175. A few members reiterated their view that the figure of US$645.6 million, approved in Conference Resolution 4/91 as the net base budgetary appropriation, should have constituted the basis for developing proposals for the 1994-95 biennium, and corresponded more closely to the likely receipt of contributions.
176. A few other members reserved their position on the budget level, as they wished to see a more complete picture of all aspects at the Conference.
177. The large majority of the Council, however, recalled their unequivocal position that the base level for the 1994-95 biennium should be the Programme of Work of US$676.9 million, as unanimously approved by the last Conference in 1991. They recalled the conclusions of the Twenty-sixth Session of the Conference that the solution adopted for the 1992-93 biennium should not set a precedent for future Programmes of Work and Budget, and that Member Nations reserved their right to consider future Programme of Work and Budget proposals on their merit. They emphasized that the solution adopted by the Conference after considerable consultations did not leave room for any ambiguity. Many members stressed, in this connection, that a higher level would have been warranted in view of the demands placed on the Organization, but that they would go along with the proposed level for the sake of consensus.
178. The Council recognized the potential impact of the currency factor on the eventual budget level to be adopted by the Conference. Current exchange rates between the US Dollar and the Italian Lira of about 1 500, would permit a reduction of some US$55 million.
179. In the light of its debate and taking all points into account, the Council agreed that the proposals in the Summary Programme of Work and Budget embodied a package, which had been framed with the intent of keeping FAO on a firm course throughout the forthcoming biennium, while reducing the burden on Member Nations in terms of assessed contributions. At the same time, the Council stated its expectation that the Director-General would find it possible to redress a number of net reductions affecting technical and economic programmes and the TCP, when formulating the full Programme of Work and Budget.
180. Accordingly, the Council invited the Director-General to proceed to finalize his proposals for the full Programme of Work and Budget on the basis of the Summary and the Council's reactions to it. The Council looked forward to further dialogue among Member Nations culminating in their uniting over the approval of the Programme of Work and Budget for 1994-95 by the next FAO Conference, as the Organization prepared to celebrate the fiftieth anniversary of its founding.
Support Cost Arrangements for FAO Trust Fund Programmes4
181. The Council recalled that at its Hundred and Second Session (November 1992), it had reviewed the report of the Director-General, based upon a report of an external consultant on the cost incurred by the Organization in support of Trust Fund projects. The Council also recalled that it had looked into a proposed new methodology for obtaining reimbursement. The Council had generally welcomed the proposals as a basis for the development of the new support cost arrangements, and had invited the Director-General to submit his proposals for the implementation of a new support cost
regime for Trust Funds, through the Programme and Finance Committees at their spring session in 1993, to the Hundred and Third Session of the Council.
182. The Director-General had previously submitted his proposals to the Programme and Finance Committees at their joint meeting in May 1993.5 The Committees had reviewed these proposals and noted, in particular, that the proposed arrangements were not merely aimed at increasing the level of support cost reimbursement and thus reducing the contribution of the Regular Programme, which could have been achieved simply by increasing the percentage rate of reimbursement, but were primarily aimed at:
Accordingly, they had commended the proposals of the Director-General for the consideration and eventual endorsement of the Council at its Hundred and Third Session.
183. The Council recalled and emphasized the conclusion of the FAO Review, which had stated that FAO's field programmes were the essential vehicle for the maintenance of the relevance of FAO's Regular Programme. It was also recalled that the Group of Experts on Field Operations had concluded that one of the reasons for a lack of good technical support was that insufficient resources were provided by UNDP and Trust Fund donors to support project implementation.
184. The Council recognized that the Director-General's proposals as contained in CL 103/6 took account of its major concerns as expressed at its last session. In particular, the Council agreed that the proposals were in line with the principle that support costs should be borne to a reasonable extent by Trust Funds, while recognizing the complementarity of Trust Funds to Regular Programme activities.
185. Most members accordingly supported the Director-General's proposals. They considered that the proposed system could contribute not only to the revitalization of the Field Programme, but also to its development in meeting tomorrow's demands and challenges.
186. While some members stated that the objective should remain full cost recovery, they indicated their preparedness to support the Director-General's proposals, wherein the fixed indirect cost of central support services would continue to be absorbed by the Regular Programme, considering that the new approach was aimed at a substantial improvement over the current regime. Some members continued to express reservations concerning any subsidy from the Regular Programme, while others considered it proper and essential.
187. The Council noted with satisfaction that the introduction of the proposed arrangements was linked to efforts to streamline procedures and to minimize costs, so as to remain competitive and encouraged the Secretariat to pursue this course. However, some members were concerned with the consequences of the new arrangements on the increased support cost of Trust Funds, which could lead to a decline in the volume of Trust Fund activities, and could damage FAO's competitiveness in
implementation. The Council recognized that, with a given volume of Trust Fund resources, the new arrangements would result in a lower amount of project services being delivered, but it was also stated that the new arrangements would ensure a higher quality of delivery which was considered to be an essential prerequisite of effective technical assistance.
188. The Council particularly welcomed the progress made through this study for an analytical approach to costs, and further recognized that the Director-General's proposals would, if adopted, make transparency a permanent feature of the new regime.
189. Several members expressed reservations about the applicability of the new proposals due to their complexity and the difficulties of internal accounting monitoring. They were concerned about the possible consequences of the implementation of the new arrangements, such as certain administrative tasks which could become more cumbersome, difficulties in resources programming for Trust Fund donors and for FAO and the possible impact on the type of activities undertaken through Trust Funds. It was indicated that this was the price of the additional transparency associated with the new arrangements and that the greater the pursuit of accuracy in details, the more complex would they have to be. In the light of these concerns, the Council requested the Director-General to consider ways in which the arrangements could be simplified without loss of the benefits of the proposed approach.
190. The Council noted that the approach followed that of the UNDP successor arrangements for agency support costs in the methodology for determining the cost of support and in the use of differential rates for the various services. Similarly, it endorsed the separate identification of Technical Support Services from the Administrative and Operational Support rates. The Council also noted the importance of taking into account the capacity for national execution of recipient countries when adopting support cost arrangements for Technical Cooperation projects.
191. The Council expressed the hope that the support cost methodologies to be used by agencies of the United Nations system would be harmonized. It recognized that FAO had made important progress in developing new Trust Fund support cost reimbursement arrangements. Some members expressed concern that, in the absence of a common approach by the UN System, a higher level of reimbursement for FAO might reduce its competitiveness and stressed the difficulties of inter-institutional collaboration which might result from different arrangements. Other members felt that the FAO proposals would indeed help Member Nations and secretariats of other Specialized Agencies in developing new support cost arrangements which they could apply. The Council noted that the other agencies had been kept fully informed through the Administrative Committee on Coordination (ACC) subsidiary machinery and encouraged further inter-agency consultations in order to obtain a full understanding, on the part of all concerned, of the FAO proposals.
192. The Council agreed that special consideration needed to be given to unilateral Trust Funds from developing countries, particularly from the least developed countries, and to the Associate Professional Officer programme, and that specific arrangements were warranted for these two categories of Trust Funds. In this context, it asked that criteria be developed for the application of such arrangements.
193. The Council concluded by indicating its general support for the Director-General's proposals which would contribute to the revitalization and qualitative enhancement of the Organization's field programmes, while balancing the financial contributions of the respective sources of funds. It requested the Director-General to review and revise his proposals in the light of the views expressed by the Council and to submit his revised proposals to the Twenty-seventh Session of the Conference in November 1993.
Reports of the Sixty-sixth and Sixty-seventh Sessions of the Programme Committee6
194. The Council noted that the Programme Committee had focused its work on a number of key documents such as the Outline and Summary Programmes of Work and Budget 1994-95, the Programme Evaluation Report 1992-93 and the Medium-term Plan 1994-99, the results of which had facilitated its own consideration of these questions.
195. In addition, the Council noted that the Programme Committee had reviewed a number of JIU (Joint Inspection Unit) reports.
Reports of the Seventy-fifth and Seventy-sixth Sessions of the Finance Committee7
196. The Council reviewed the reports of the two sessions of the Finance Committee.
197. The Council noted the comments of the Finance Committee and approved the Annual Report of the Budgetary Performance to Member Nations for the year 1992.
- Scale of Contributions 1994-959
198. The Council noted that in accordance with the decision of the Eighth Session of the Conference (1955), the FAO Scale of Contributions for the years 1994-95 had been derived directly from the UN Scale of Assessments, in this case the one in force during the year 1993, as established by General Assembly Resolution 46/221A adopted on 20 December 1991, and subsequent amendments.
199. The Council accordingly recommended the following draft Resolution for adoption by the Conference:
THE CONFERENCE,
Having noted the recommendations of the Hundred and Third Session of the Council,
Confirming that as in the past FAO should follow the UN Scale of Assessments subject to adaptation for the different membership of FAO,
1. Decides that the FAO Scale of Contributions for 1994-95 should be derived directly from the UN Scale of Assessments in force during 1993;
2. Adopts for use in 1994 and 1995 the Scale as set out in Appendix G of this report.
200. The Council noted that the Scale of Contributions, as set out in Appendix G. was provisional and would be finalized at the time of the forthcoming session of the Conference.
- Extension of Terminal Payments Fund Coverage10
201. The Council endorsed the approval given by the Finance Committee to the extension, in the short term, of the coverage of the Terminal Payments Fund to cover a portion of the costs of separation of staff occupying any Support Cost-funded post. It also noted that, in order to determine a long-term solution to the funding of the costs of separation, the Committee had requested a detailed review of the costs of separation, including an actuarial evaluation.
- Staff Post Adjustment Problems Resulting from Italian Lira Devaluation11
202. The Council noted with concern the comments of the Finance Committee on the problems of professional staff remuneration in Rome, as well as the additional background information on the matter which had been presented by the Secretariat at the request of the Finance Committee. The Council took note of the statistics presented to demonstrate the losses sustained by staff since the 1990 place-to-place cost-of-living survey, coupled with the declines since the September 1992 devaluation of the lira. The Council was also informed of the significant impact on the Organization's competitive position as an employer of high quality staff.
203. The Council noted further that the special measure adopted by the International Civil Service Commission (ICSC) was deemed, according to the data presented, to have done little to provide any relief to staff or to improve the Organization's ability to recruit and retain staff. In light of the foregoing, the Council agreed to mandate the Secretariat to pursue this issue with the ICSC by providing additional information at its next session, to permit the ICSC to evaluate the situation in greater detail.
204. In this context, the idea was put forward of suggesting that the ICSC take into account the non-local share of staff expenditure. As the latest cost-of-living survey was dated April 1990, the Council suggested that it would be useful to have a new in-depth survey.
- Payment by the European Economic Community to Cover Administrative and Other Expenses arising out of its Membership in the Organization12
205. The Council noted that the Finance Committee had requested that a series of reasoned options be presented to the Committee at its next session for determining the methodology for the calculation of the "administrative expenses", indicating various possible options that could be considered. Some members stressed that any methodology should be consistent with the provisions of the Constitution and, in particular, Article XVIII.6, and that the total sum should reflect the real expenditure caused to FAO by the Member Organization.
Financial Position of the Organization: Collection of Assessed Contributions (Outstanding and in Arrears)13
- Status of Contributions to the Budget
206. The Council considered the financial position of the Organization which compared favourably with that of recent years. Satisfaction was expressed for the rate of receipt of current contributions this year, as well as for the substantial arrears payments that had been received. While appreciating the often difficult financial situations of some countries, emphasis was nonetheless placed on the importance for all Member Nations, irrespective of size, to honour their financial obligations toward the Organization, in accordance with the provisions of the regulations.
207. The Council noted the status of contributions at 22 June 1993 compared with the same date in 1992, as well as the details of amounts received from each Member Nation during 1993 and of outstanding contributions, as shown in Appendix H to this Report.
| (for comparison) | ||
|
1993 |
1992 |
|
|
$ |
$ |
|
|
Amounts outstanding at 1 January |
||
|
Current Assessmentsa |
317 330 000.00 |
317 330 000.00 |
|
Contributions in arrears |
150 237 185.89 |
155 112 065.27 |
|
Total |
467 567 185.89 |
472 442 065.27 |
|
Receipts 1 January to 22 June |
||
|
Current Assessments |
170 383 221.70 |
182 377 732.70 |
|
Contributions in arrears |
19 920 035.54 |
7 581 214.66 |
|
Total |
190 303 257.24 |
189 958 947.36 |
|
Amounts outstanding at 22 June |
||
|
Current Assessments |
146 946 778.30 |
134 952 267.30 |
|
Contributions in arrears |
130 317 150.35 |
147 530 850.61 |
|
Total |
277 263 928.65 |
282 483 117.91 |
aOf which US$550 000.00 relates to the Tax Equalization Fund.
- Current Assessments (Appendix H sets out details of receipts and of amounts outstanding)
208. The month-end cumulative percentages of 1993 assessments received during nearly six months of 1993, as compared to receipts during the preceding four years, was shown in the following statistics.
Percentages of Current Assessed Contributions Received |
||||||||
|
(Cumulative - Year to Date) |
||||||||
|
1993 |
1992 |
1991 |
1990 |
1989 |
||||
|
% |
% |
% |
% |
% |
||||
|
January |
6.06 |
6.08 |
6.29 |
13.33 |
9.81 |
|||
|
February |
12.20 |
29.08 |
30.57 |
27.33 |
24.28 |
|||
|
March |
27.75 |
35.01 |
35.41 |
35.55 |
31.25 |
|||
|
April |
53.10 |
42.76 |
36.88 |
39.16 |
34.60 |
|||
|
May |
53.14 |
43.89 |
43.66 |
45.98 |
41.31 |
|||
|
June |
53.69a |
57.66 |
46.18 |
46.27 |
45.82 |
|||
|
July |
59.65 |
48.26 |
48.51 |
48.24 |
||||
|
August |
63.01 |
51.34 |
49.29 |
48.38 |
||||
|
September |
63.02 |
51.94 |
52.70 |
62.73 |
||||
|
October |
64.05 |
78.73 |
66.31 |
65.75 |
||||
|
November |
|
89.53 |
79.18 |
79.77 |
67.70 |
|||
|
December |
90.72 |
92.28 |
88.10 |
74.83 |
||||
aReceipts at 22 June; all other figures are at month-end.
209. At 22 June 1993 the position of the Member Nation (and the number with arrears outstanding), with comparative figures at the same date during four preceding years was as follows:
Number of Member Nations | |||||||
Current Assessment | Arrears |
||||||
| |||||||
|
% |
Paid in full |
part |
no |
||||
|
Receieved |
paid |
payment |
total |
||||
1993 |
53.69 |
34 |
15 |
110 |
159 |
85 |
|
1992 |
57.47 |
33 |
22 |
105 |
160 |
77 |
|
1991 |
45.05 |
38 |
21 |
98 |
157 |
80 |
|
1990 |
46.18 |
43 |
19 |
95 |
157 |
60 |
|
1989 |
43.58 |
36 |
23 |
99 |
158 |
61 |
|
| |||||||
210. The Council was informed that receipts at 22 June 1993 of the 1993 assessments were lower than those at the same date in 1992, although the situation compared favourably with any of the other three years in consideration.
211. However, only 34 Member Nations had paid their current assessments in full, while a further 15 had made a partial payment, leaving 110 Member Nations who had made no cash payment at all during 1993.
- Contributions in Arrears (Appendix H sets out details of amounts outstanding)
212. At 22 June 1993, a total amount of US$130 317 150.35 of arrears of contributions remained, of which US$96 065 363.86 overdue from the largest contributor. Fifty-three Member Nations had made cash payments as at 22 June 1993, of which sixteen had paid their arrears in full. Amounts of more than US$1 million were due from eight Member Nations, totalling US$120 473 564.86 and representing 92.45 percent of the arrears outstanding.
- Replenishment of the Special Reserve Account and Advances to the Working Capital Fund
213. Of the total amounts outstanding at 1 January 1993 of US$22 566 178 and US$1 997 442 respectively, fifty-four Member Nations had made cash payments as at 22 June 1993, leaving balances of US$16 212 282 and US$1 825 542 respectively, outstanding on 22 June 1993.
- Need for all Member Nations to pay Current Assessments and Arrears
214. The Council expressed concern that, notwithstanding the Director-General's appeals to Member Nations for payment of their arrears and outstanding contributions, 125 Member Nations had made no payment or only partial payment of 1993 assessed contributions, and 85 Member Nations still owed arrears for 1992 and prior years. Furthermore, 35 Member Nations owed arrears of contributions in such amounts as could cause them to lose their right to vote at the Twenty-seventh Session of the Conference in November 1993.
215. The Council urged therefore that all Member Nations pay their outstanding arrears and current assessed contributions in full as soon as possible, in order to enable the Organization to continue to fulfil its mandate.
216. The Council noted that the cash flow forecast assumed full spending of the Programme of Work for the biennium 1992-93, excluding TCP (Technical Cooperation Programme), and that receipts were based on historical patterns and specific information received from Member Nations. The Council noted that the Organization was not expected to have to resort to borrowing, although it could be necessary to draw down advances from the Working Capital Fund and the Special Reserve Account in September and October 1993 to cover budgetary expenditure pending receipt of contributions.
Revised Calendar of FAO Governing Bodies and Other Main Sessions 1992-9315
217. The Council approved the Revised Calendar of FAO Governing Bodies and Other Main Sessions 1992-93, as given in Appendix I to this Report.
Appointment of Representatives of the FAO Conference to the Staff Pension Committee16
218. The Council was informed that Miss D. Maung (Myanmar), member of the FAO Staff Pension Committee, appointed by the Conference to the FAO Staff Pension Committee at its Twenty-sixth Session in 1991 for a three-year term 1 January 1992 to 31 December 1994, had been transferred from Rome to another assignment.
219. Under authority delegated by the Eighth Session of the Conference, the Council decided that the unexpired term of this member of the Committee should be completed by Mr Pinit Korsieporn, Alternate Permanent Representative of Thailand to FAO.
1 C 93/4; CL 103/17 paras 2.6-2.29 and 3.17-3.18; CL 103/PV/9; CL 103/PV/19.
2 C 93/23; CL 103/17 paras 2.30-2.59; CL 103/PV/10; CL 103/PV/19.
3 CL 103/3; CL 103/17 paras 1.1-1.15, 2.60-2.110 and 3.22-3.34; CL 103/PV/11; CL 103/PV/12;
CL 103/PV/19.
4 CL 103/6; CL 103/6-Corr.l (A/E/S only); CL 103/17 paras 1.16-1.20; CL 103/PV/13;
CL 103/PV/19.
5 CL 103/17.
6 CL 103/4; CL 103/17; CL 103/PV/13; CL 103/PV/19.
7 CL 103/4; CL 103/17; CL 103/PV/14; CL 103/PV/19.
8 CL 103/17 paras 3.8-3.16.
9 CL 103/17 paras 3.64-3.68; CL 103/PV/14; CL 103/PV/15; CL 103/PV/19.
10 CL 103/17 paras 3.69-3.74.
11 CL 103/4 paras 1.41-1.46; CL 103/17 paras 3.89-3.98; CL 103/LIM/5; CL 103/PV/14; CL 103/PV/19.
12 CL 103/17 paras 3.120-3.129.
13 CL 103/17 paras 3.38-3.46; CL 103/LIM/l; CL 103/PV/14; CL 103/PV/19.
14 CL 103/17 paras 3.53-3.61; CL 103/LIM/4; CL 103/PV14; CL 103/PV/19.
15 CL 103/14; CL 103/PV/17; CL 103/PV/19.
16 CL 103/INF/17; CL 103/PV/17; CL 103/PV/19.
