Regular Programme Contributions as at 31 October 2009

The cumulative rate of receipts of 71.58 percent is slightly higher than last month’s figure and about the same as the rate at end-October last year. Outstanding 2009 contributions amount to USD 135 million, of which USD 109 million due from the United States, USD 6.4 million from Spain, USD 5.7 million from Korea, and USD 5.1 million from Mexico (all amounts consolidated). Prior years’ unpaid assessments stand at USD 36.2 million (consolidated).The outlook for the rest of the year, therefore, remains as reported last month. The Organization requires an average USD 44 million each month for Regular Programme outflows and the updated forecast continues to indicate a requirement for external borrowing in December 2009 to ensure adequate liquidity for Regular Programme activities, unless there are significant payments of arrears or 2009 assessments.

Delays in payment of current assessments and non-payment of arrears have serious consequences as the Organization is forced to use its statutory reserves to pay for operating expenses and, when these reserves are depleted, to approach the banking sector to negotiate loans. The Secretariat in recent years has intensified its efforts both at Headquarters and in FAO field offices to remind Member Nations of their obligations to pay current contributions and arrears.

Only timely payment by Members of their assessments can ensure that FAO meets the operating cash requirements for the Programme of Work without recourse to statutory reserves or to external borrowing.

The impact of delays in payment by Member Nations of assessed contributions and ways to improve the Organization’s cash shortage situation have been discussed by the Finance Committee at each of its recent past Sessions¹.
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1. Main documents recently discussed by the FC in this regard:
128th Session of FC: 27-31 July 2009 (Measures to Encourage Timely Payment of Contributions)
126th Session of FC: 11-15 May 2009 (Measures to Encourage Timely Payment of Contributions)
123rd Session of FC: 6-10 October 2008 (Measures to Encourage Timely Payment of Contributions)
118 th Session of the FC: 17-25 May 2007 (Measures to Improve the Organization’s Cash Shortage Situation)115th Session of the FC: 25-29 September 2006 (Measures to Improve the Organization’s Cash Shortage Situation)
110th Session of the FC: 19-23 September 2005 (Acceptance of Local Currency from Developing Countries in Payment of Assessed Contributions)
109th Session of FC: 9-13 May 2005 (Incentive Scheme to encourage Prompt Payment of Contributions-Analysis of Impact of Zero Discount Rate)
108th Session of FC: 27 September – 1 October 2004 (Analysis of Contributions Received and proposals for Improvement)

Table 1: Cumulative Percentage Receipt of Current R.P. Assessments

Table 1 below details the cumulative percentage rate of receipts of Regular Programme contributions by quarter over the past four years. 4th quarter 2009 is as at 31 October 2009.
The graph reflects actual percentage rate of receipts versus a hypothetical even rate of receipt of 25% per quarter (as represented by the red line).

Table 2: Cumulative Receipts of Current Regular Programme Assessments in 2009

Table 2 shows the total cumulative USD and Euro receipts by month for 2009, the total amounts of assessed contributions billed to Member Nations, and the shortfall of unpaid contributions.