Rapports, Archives: 64th Session - Appendix 12
Report of the EC/FAO meeting on the utilisation of Trust Fund MTF/INT/003/EEC 911100 (TFEU970089129) by EuFMD
FAO HQ, Rome, 25 February 2000.
Outcome
Dr Mario Boldrini, Secretary of the Commission between 1962 and 1978 recalled the context of the establishment of TF9111 in 1962. At that time FMD type SAT 1 was threatening to invade Europe through the Balkans. Considering the emergency situation, the Director of AGA Division, on the proposal of UK, asked the Director General of FAO to launch an appeal for funds to combat the disease by establishing a buffer zone. Fifteen countries responded to this appeal and the funds raised were placed in a special account which was the basis for the present TF.
No conditions were attached to the utilisation of the TF; instead importance was placed on prompt and efficient action to combat the disease. A Tripartite Group EC/FAO together with OIE was established to monitor the fund and since then this Tripartite Group decides on the activities to be carried out with the funds available. In 1964, the Common Market countries (5) requested FAO that the funds provided should be placed in a separate account. Two separate TF’s were then created, 911100 for EC countries and 909700 for non EC countries.
The Secretary reported on recent practices in the utilisation by EuFMD of the EC/FAO TF. Since 1994 the TF has been used for emergency action in Albania, Turkey, and the Caucasus. In addition to the emergency activities ( provision of vaccines, consultancies, missions etc...) the TF has also been used for activities carried out jointly between the EuFMD Commission and EC ( organisation of workshops, of meetings of the Tripartite Group and Research Group meetings). All expenditure under this TF was agreed prior to its being used and accounts of expenditure were provided to EC at Sessions of the Executive Committee and General Sessions of the Commission. Since 1987, no reimbursement has been made by EC with the exception of the costs for the vaccination campaign in Albania and Macedonia in 1996 which were partially reimbursed in 1997.
The representative of FAO Procurement Service ( AFSP) presented to EC the FAO procedures for tendering particularly in respect of vaccine supplies. A copy of the FAO Manual Section 502 regarding procurement was circulated to the participants. He explained that the criterion for choice of suppliers was not always the price but was also based on delivery time and/or other criteria. Technical specifications and the criteria for selection are decided jointly by Procurement service and technical divisions, always before despatch of the call for tenders. Bids are received sealed above a ceiling of $ 25,000, and open under this ceiling. A five person Purchase Committee is in charge of examining and selecting the offers.
The representative of Finance Division explained the FAO financial rules and their compatibility with those of EC was discussed. In general a 13% rate is applied as operating expenses by FAO. However for certain projects, - including the EuFMD activities carried out under the TF - a special rate of 6 % is applied. The continuation of this rate of charge was accepted by EC. The question related to pool charges was discussed at length and EC delegates explained that there many difficulties for them to accept these charges as a complement to the 6% operating charge rate. The Secretary suggested that no pool charges should be made to the EC/FAO TF and if these were essential they should be charged to TF 904200. This solution was not acceptable for Finance Division due to practical difficulties to implement it.
Concerning future expenses the Secretary proposed that
- A list of current activities which could be carried out under the TF be established. This was accepted by EC,
- A prior agreement will continue to be necessary for activities covered by the funds,
- The activities supported by EC should be executed within the frame work of a 4 year project. A first draft of the implementing agreement - based on another EC/FAO project already accepted by EC - was circulated to the participants at the time of the meeting to guide the discussion.
Conclusions and Recommendations
The following has been agreed between the EC and FAO representatives (subject to endorsement/agreement by their respective hierarchies and authorities):
- There was no clear procedure so far, either in FAO or in EC on how the EC/FAO TF should be used. This absence of clear procedures created difficulties in the past, in both organisations, and it was agreed that clarification was needed for the future.
- The future activities carried out by EuFMD under the financial support of EC will be executed in the framework of a four year renewable project. The initial project will cover the period 1 January 2000 - 31 December 2003 and the provisional budget is being set at $ 1 000 000.
- The balance of the TF 911100 as on 31 December 1999 will be considered as the first contribution of EC to the project. The provisional amounts to $ 611,000 (inclusive of the $ 25,000 corresponding to the interest for 1999 - the US $ 140,000 for the 1999 LOA with Vladimir has been calculated under expenditure 1999 although it is actually being paid in 2000).
- Full reimbursement to the TF up to the value of $ 1 million by EC will be made on an annual basis after receipt by EC of the annual technical and financial reports of EuFMD on the activities covered by the TF during the previous year.
- The technical reports as prepared by the Secretariat of EuFMD for the Sessions of the Executive Committee of the EuFMD Commission (held at least once a year ) and to the General Session of the EuFMD Commission (held every two years) will be accepted by EC as official reports in the framework of the current project.
- The financial reports as prepared by the Chief, Central Accounting and Control Service, Finance Division, FAO and presented by the Secretariat to the Sessions of the Executive Committee and to the Sessions of the Commission will be accepted as the official financial reports in the framework of the current project. In addition to this report, the itemised expenses under the Funds, as available under the new FAO Oracle system will be provided to the EC.
- The project is monitored by the Secretariat of EuFMD. It will undertake activities oriented to FMD control and prevention which are classified under two categories:
- emergency activities related to the outbreaks of FMD which threaten Europe
- routine activities which are oriented to reinforce the control measures in Europe and the surrounding countries.
- If exceptional expenses related to emergency activities are paid for by the trust fund and deplete it to a critical level within any given year, then a total or partial reimbursement can be envisaged immediately after these expenses on presentation of a technical and financial report related to this specific activity.
- FAO/EuFMD will inform EC in case of contracting with third parties (through letters of agreement, contracts, sub-contracts) in the framework of the project. The contractual document should be approved by EC prior to the signature.
Follow up and proposed timescale
The draft for implementing the Agreement is being amended by the Secretary and FAO Finance Division to incorporate the proposals from the meeting.....10 March 2000
This document should then be submitted to EC for Agreement... 20 March 2000
The document will be submitted to the 64th Session of the Executive Committee.....30-31 March 2000
When agreed by both parties and by the Executive Committee, the Agreement will be signed by FAO and EC and will serve as framework for future activities of EuFMD supported by EC.....April 2000