Contents
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VIII. Administrative and financial matters
A.
Audited accounts
B. Scale of Contributions 1978-79
C. Working Capital Fund: Reimbursement of
Withdrawals in 1974-75
D. Allocation of Cash Surplus: Establishment
of Special Reserve Account
E. Emoluments of the Director-General
F.
Status of Contributions
G. Assessment of New Member Nations
332. The Conference expressed its appreciation for the quality of the External Auditor's Reports.
333. The Conference noted from the Auditor's Report on the World Food Programme Accounts for 1975 that expenditure for Technical Advisory, Administrative and Servicing costs had exceeded budgeted expenditure for 1975 by $149 584 and that this had led the External Auditor to qualify his certification on these accounts.
334. The Conference recognized that this excess was due to increases in staff costs on the one hand and to a higher level of Programme activity for handling commodities given to the Programme under the Food Aid Convention than was originally foreseen on the other, It was clarified that the Executive Director of the World Food Programme had sought retroactive CFA approval for this over-expenditure and that the CFA at its Second Session (November 1976) had given such retroactive approval.
335. The Conference shared the concern of the Committee on Food Aid in respect of the delays by governments receiving WFP aid in submitting quarterly progress reports and annual and terminal stores accounts, to which the External Auditor had referred in his report on the World Food Programme for 1976. The Conference stressed the importance of the Executive Director's following up on these matters to ensure that food aid is received by the people for whom it is intended, that shipments are not in excess of needs and that losses and deterioration are avoided.
336. The Conference noted from the Report of the External Auditor on the UNDP Accounts for 1976 that problems stemming mainly from the UNDP financial crisis had led to a qualified audit certificate on those accounts. The Conference stressed that the qualification was a serious matter and underlined the importance of maintaining strict financial controls. The Conference also cautioned against overly ambitious objectives in project documents and stressed the significance of coordinating the work between the Headquarters of UNDP and the Agencies, and between the Headquarters and the Field throughout the system.
337. The Conference also took note of the comments of the Council at its Seventy-Second Session (November 1977) on the Auditor's Report on the 1976 Regular Programme Accounts. It expressed concern at the deficiencies in financial control and the reported shortcomings in following up on management consultant advice. It noted the corrective measures that the Director-General had taken and encouraged him to pursue these with vigour.
338. The Conference adopted the following resolution:
Audited accounts
The Conference,
Having considered the report of the Seventieth and Seventy-Second Sessions of the Council:
Having examined the following audited accounts and the External Auditor's
Reports thereon:
| Regular Programme 1974-75 | C 77/5 |
| United Nations Development Programme 1975 and 1976 |
C 77/6 C 77/9 |
| World Food Programme 1975 and 1976 | C 77/7 C 77/8 |
Adopts the above audited accounts.
Adopted 29 November 1977
B. Scale of Contributions 1978-79
339. The Conference recalled that at its Eighth Session (1955), it decided that the FAO Scale of Contributions for future biennia would be derived directly from the United Nations Scale of Assessments in force during the calendar year of each Conference Session. On four occasions, however, commencing with the FAO scale for 1956-57, the Conference had adopted Scales derived from United Nations Scales of Assessment which were to come into force as of 1 January of the year following the Conference Session, since those new UN Scales incorporated important changes.
340. The Conference noted that the Fifth Committee of the General Assembly of the United Nations had recently recommended a revised Scale of Assessments for the United Nations for use in 1978-79 which was expected to be adopted by the General Assembly around mid December. That Scale reflected an earlier decision of the General Assembly to reduce the minimum rate of assessment, previously 0.02 percent, to 0.01 percent for 1978 and onwards .
341. In view of this important change, the consensus of the Conference was that the FAO Scale for 1978-79 should be derived directly from the UN Scale of Assessments for 197879 as recommended by the Fifth Committee of the General Assembly .
342. The Conference adopted the following resolution:
Scale of contributions 1978-79
The Conference,
Having noted the recommendations of the Seventy-First Session of the Council ,
Being aware, however, that subsequent to that Session of the Council, the Fifth Committee of the General Assembly of the United Nations had recommended for adoption by the General Assembly a Scale of Assessments for use in 1978-79 which incorporated, inter alia, a reduced minimum assessment rate of 0.01 percent.
Decides to adopt for use in 1978-79 the Scale of Contributions set out in Appendix G which is derived directly from the United Nations Scale of Assessments for 1978-79 as recommended by the Fifth Committee of the General Assembly of the United Nations .
Adopted 30 November 1977
C. Working Capital Fund: Reimbursement of Withdrawals in 1974-75
343. The Conference noted that the Council at its Seventieth Session had adopted a resolution postponing the allocation of a sum of $112 854 of the 1974-75 cash surplus, pending consideration by the Conference of the method in which the Working Capital Fund should be reimbursed in respect of a withdrawal in that amount made from the Working Capital Fund in 1974 to meet initial control measures in a livestock emergency in Turkey in late 1973.
344. The Conference d deaf that the amount withheld from the 1974-75 cash surplus be used to reimburse the Working Capital Fund and adopted the following resolution:
Reimbursement of working capital fund from cash surplus in 1974-75, for withdrawals made in 1974-75
The Conference,
Noting that the Director-General under the provisions of Conference Resolution 17/69 and acting on the recommendation of the Advisory Panel of Experts set up to advise him on initial control measures in livestock emergencies and after consultation with the Chairman of the Finance Committee, had withdrawn $150 000 from the Working Capital Fund to help contain an outbreak of Foot-and-Mouth Disease in Turkey in late 1973,
Noting that $112 854 had been expended out of this withdrawal,
Further noting that the Council has directed that the disposition of $112 854 of the cash surplus for 1974-75 be postponed pending review of the matter by the Conference,
Recalling that in accordance with Financial Regulation 6.5(b) advances made from the Working Capital Fund to finance emergency expenditures shall be reimbursed by such method as the Conference determines,
Decides that, notwithstanding the provisions of Financial Regulation 6.1(b), $112 854 of that surplus shall be withheld and used to reimburse the Working Capital Fund.
Adopted 29 November 1977
D. Allocation of Cash Surplus: Establishment of Special Reserve Account
345. The Conference concurred with the Council that it was necessary to ensure that the Organization's Programme of Work and Budget be protected against unbudgeted extra costs due to adverse currency fluctuations and unbudgeted inflationary trends (see also in this connexion Resolution 3/77 on the Prevention of Food Losses).
346. It accordingly decided that a Special Reserve Account be established as of 31 December 1977 to assist in protecting the Organization's Programmes of Work against the effects of such unbudgeted extra costs in the 1978-79 biennium and in subsequent biennia and adopted the following resolution:
Establishment of a special reserve account
The Conference,
Recalling its Resolutions 6/73 and 35/75,
Conscious of the need to ensure that adequate cash resources are available to the Organization to finance the Programmes of Work approved by the Conference for 1978-79 and subsequent biennia,
Recognizing that unbudgeted extra costs due to adverse currency fluctuations and unbudgeted inflationary trends may have a serious impact on the Organization's Programme of Work and Budget,
Having considered the recommendations of the Council at its Seventy-First Session on measures to ensure the financing of such unbudgeted extra costs as may have to be met,
1. Decides to establish a Special Reserve Account as of 31 December 1977 to assist in protecting the Organization's Programmes of Work against the effects of unbudgeted extra costs that may arise in the 1978-79 biennium or in any subsequent biennia,
2. Authorizes the Director-General to use the funds in the Special Reserve Account:
(a) whenever the Working Capital Fund is insufficient to finance budgetary expenditure pending receipt of contributions from Member Nations to the budget; such advances to be reimbursed from subsequent receipts of contributions as soon as possible;
(b) to finance unbudgeted extra costs due to movements of currency exchange rates;
(c) subject to prior review by the Finance Committee and approval by the Council, to finance unbudgeted extra costs of approved programmes due to unforeseen inflationary trends, to the extent that such costs cannot be met through budgetary savings, up to an amount equivalent to 2 percent of the total effective working budget of the relevant biennium;
Adopted 30 November 1977
E. Emoluments of the Director-General
347. The Conference endorsed the Council's recommendation that the emoluments of the Director-General should be brought in line with those of Executive Heads of other agencies.
348. The Conference also agreed with the Council's recommendation that the Director-General's representation allowance required adjustment to bring it in line with Executive Heads of other agencies.
349. The Conference accordingly adopted the following resolution:
Emoluments of the director-general
The Conference,
Recalling that it had fixed the salary and allowances of the Director-General at its Eighteenth Session in accordance with operative paragraphs 2 and 3 of Resolution 40/75,
Noting that the General Assembly of the United Nations, at its Thirty-First Session, approved certain recommendations of the International Civil Service Commission affecting the salaries and allowances of staff in the Professional and higher categories,
Noting further that the Council, at its Seventieth Session, authorized the Director-General to amend the FAO Staff Regulations to give effect to the recommendation of the International Civil Service Commission, in the form in which they had been approved by the General Assembly of the United Nations and with the same effective date, and that this effective date was 1 January 1977,
Considering that the changes in entitlements of staff in the Professional and higher categories which were introduced in FAO with effect from 1 January 1977 should be applied retroactively to the Director-General,
Considering also that in FAO the representation allowance of the Director-General had been established on 1 January 1976 at US$ 15 000, whilst as at 1 January 1977 it stood at US$ 22 500 in the United Nations and US$ 20 000 in ILO and Unesco,
Decides that:
1. The annual salary of the Director-General be retroactively adjusted from 1 January 1977 to the following amounts: gross salary US$99 350; net salary US$53 200 at the dependency rate, or US$48 080 at the single rate; post adjustment for one class US$2 200 at the dependency rate, or US$1 988 at the single rate;
2. The system of allowances and benefits applicable to the Director-General be amended from 1 January 1977 in the same way as that of staff in the Professional and higher categories;
3. The representation allowance of the Director-General be increased to US$20 000 effective 1 January 1977.
Adopted 29 November 1977
350. The Conference noted that the Council at its Seventy-Second Session had reported that a large part of the membership was not meeting the provisions of Financial Regulation 5.5 which required Member Nations, in practice, to pay their contributions by mid-February each year. It therefore appealed to all Member Nations to meet their commitments promptly and urged those whose fiscal year did not correspond with the calendar year used by FAO, to anticipate the necessary budgetary provisions in order to permit them to settle their obligations to the Organization when due. Such an adjustment would represent a one-time problem for the Member Nations concerned, while failure to do so would mean that the Organization could be faced with financial difficulties in future years.
G. Assessment of New Member Nations
351. In accordance with the provisions of Article XVIII-3 of the Constitution, Rule XIX-3 GRO and Financial Regulation V.8, the Conference decided that the contributions to be paid by the newly admitted Member Nations for 1977 and the advances due from them to the Working Capital Fund in accordance with Financial Regulation VI.2(b) (ii) would be as follows:
Contribution due |
Advance due to |
|
| $ | $ | |
| Angola | 4 080 | 1 300 |
| Comoros | 4 080 | 1 300 |
| Democratic People's Republic of Korea |
12 240 | 3 900 |
| Djibouti | 4 080 | 1 300 |
| Mozambique | 4 080 | 1 300 |
| Namibia | 4 080 | 1 300 |
| Sao Tome & Principe | 4 080 | 1 300 |
| Seychelles | 4 080 | 1 300 |
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