82. The following table summarizes, in a simplified manner, the projected income and utilization of resources under all sources of funds in 2000-01 under the ZRG, RG and ZNG scenarios together with comparative information for 1998-99.
|Budgeted Income and Utilization of Resources|
|Amounts in US$ 000||
|Member Nations Net Assessed Contributions||
|Trust Fund Income||
|Total Estimated Income||
1 189 423
1 234 930
1 273 267
1 250 693
1 235 837
|Expenditure/Utilization of Resources|
|Programme of Work||
|Total Estimated Expenditure||
1 189 423
1 234 930
1 273 267
1 250 693
1 235 837
83. The programme of work in the preceding table comprises those activities that are proposed to be performed on the basis of expected contributions from Member Nations, Miscellaneous Income and Other Income, and is designed according to the expected availability of these resources. Trust Fund expenditure estimates are the Secretariat's forecast of the Trust Fund resources which are expected to be made available by donors.
84. Voluntary contributions falling under the category of Other Income comprise resources largely at the disposal of the Organization, and/or resources that are managed closely with the Regular Budget Appropriation. The Organization will continue to review the classification of voluntary contributions under Financial Regulation 6.7 to improve the presentation of an integrated programme of work, taking due account of Member Nations needs for the presentation of an integrated programme of work as well as financial reporting methods implemented in the new administrative systems.
|Source of Funds||US$ 000||US$ 000||US$ 000||US$ 000|
|Member Nations Net Assessed Contributions: Miscellaneous Income||638 300||643 104|
|Rental of Conference and Office Facilities||400||196|
|Interest Earnings||7 000||4 000|
|Less: discounts payable||(2 100)||(1 200)|
|Lapse of accrued liabilities||5 600||3 700|
|Contributions from New/ Associate Members||200||100|
|Surplus on the Publications Revolving Fund||200||0|
|Total Miscellaneous Income||11 700||6 896|
|Net Appropriation voted by the Conference||650 000||650 000|
|Voluntary Contributions under Financial Regulation 6.7:|
|a) To Other Income|
|World Bank||20 994||18 445|
|Other Financial Institutions||7 891||7 702|
|World Health Organization (CODEX)||1 019||969|
|Co-sponsors to TAC||2 999||2 999|
|Technical Support Services||7 641||6 842|
|Terminal Reports||1 993||700|
|Project Servicing Costs and Other Administrative Support Services||45 995||40 174|
|Reimbursements for Administrative Services to WFP||3 423||2 416|
|Government Counterpart Cash Contributions||2 020||1 670|
|Other Items (e.g. Miscellaneous Secondments)||2 013||1 628|
|Total Other Income||95 988||83 545|
|Resources Available for the Programme of Work||745 988||733 545|
|b) To Trust Fund Income|
|UNDP Projects - Total||124 000||61 070|
|Less: Project Servicing Costs||(11 300)||(5 552)|
|Emergency Projects - Total||42 924||172 424|
|Less: Direct Operating Costs||(2 924)||(3 324)|
|Other Trust Fund Projects||320 200||305 648|
|Less: Project Servicing Costs||(31 771)||(31 298)|
|Less: Technical Support Services||(5 694)||(5 583)|
|UNDP TSS/STS/SPPD Projects||8 000||8 000|
|Total Estimated Trust Fund Income||443 435||501 385|
|TOTAL ESTIMATED RESOURCES AVAILABLE||1 189 423||1 234 930|
85. The preceding table highlights the movements in budgetary resources. The decline in Miscellaneous Income is partly attributed to a reduction in the expected level of interest earnings which, in turn, reflects a combination of the foreseen payment patterns of Member Nations' net assessed contributions and the decline in rates of interest. In addition, a lower estimate for the lapsing of accrued liabilities is due to an expected improvement in the accuracy of unliquidated obligations at the end of 1999, arising from the implementation of Oracle.
86. The table also highlights a decline of US$ 12.4 million in Other Income, which has required a corresponding adjustment in the programme of work, or planned expenditure. The key factors underlying this reduction are:
|Extra-budgetary Field Programme (US$ million)|
|Source/Type of Activity||
|Government Cooperative Programme and Unilateral Trust Funds||118.2||107.6||107.6||108.0||110.0||113.8|
|Associate Professional Officers (APOs) Programme||16.1||14.2||11.8||13.0||13.2||13.8|
|Other Trust Funds||6.1||7.2||9.1||9.0||9.0||9.0|
|Trust Funds (non-emergency activities)||140.4||129.0||128.5||130.0||132.2||136.6|
|Sub-total UNDP and non-emergency Trust Funds||183.4||170.7||157.1||157.5||159.2||165.1|
|UNDP: Support for Policy and Programme Development (SPPD), Support for Technical Services (STS)||3.5||4.3||4.0||3.0||4.0||4.0|
|Trust Fund (emergency operations)||15.8||35.2||78.3||90.0||91.0||78.1|
|Total Extra-budgetary Field Programme||202.7||210.2||239.4||250.5||254.2||247.2|
87. Historical project delivery by funding source is shown in the preceding table and indicates that the total extra-budgetary field programme has increased from the low level of 1996.
88. The United Nations Development Programme (UNDP) project delivery for projects that are executed or implemented by FAO and thus earn Project Servicing Costs, has declined steadily from US$ 108.3 million in 1993 to US$ 28.6 million in 1998. Delivery in 2000-01 is expected to stabilize at about US$ 28 million per year. With regard to UNDP-funded SPPD and STS activities, the annual delivery has remained fairly stable between US$ 3.5 and US$ 4 million per year.
89. Non-emergency Trust Fund project delivery declined in both 1997 and 1998 to levels below US$ 130 million per year, after showing small increases in 1995 and 1996. It is expected that the Non-emergency Trust Fund delivery will recover during the 2000-01 biennium to levels similar to those reached during 1996.
90. Trust Fund Emergency activities, carried out by FAO's Special Relief Operations Service (TCOR), vary with circumstances. Between 1993 and 1995 work of the Emergency Centre for Locust Operations (ECLO) and the Screwworm Emergency Centre for North Africa (SECNA) resulted in expenditures of approximately US$ 30 million each year. As the work of these programmes declined, or was completed, emergency assistance delivery reached a low of US$ 15.8 million in 1996. The large increase in emergency programmes in both 1997 and 1998 is related to the Iraq Food for Oil programme which accounted for US$ 25.2 million of the US$ 35.2 million delivery in 1997 and US$ 66.9 million of the US$ 78.3 million delivery in 1998. The Iraq Food for Oil programme is expected to continue into the next biennium together with the provision of emergency supplies to conflict-affected areas in the Balkan states, with the result that the high levels of emergency activities are expected to continue throughout 2000-01. It may, therefore, be concluded from the preceding table that the current and the projected total extra-budgetary field programme reflects high levels of emergency assistance.
91. Non-emergency assistance has continued to show a steady decrease from a level of US$ 255.4 million in 1993 to US$ 157.1 million in 1998, with UNDP delivery having shown a particularly large reduction. A major consequence of the decline in non-emergency work is its impact on Project Servicing Costs and Other Administrative Support Services, under Other Income, which shows an estimated decline of US$ 5.8 million in 2000-01 versus the provision in 1998-99.
92. The anticipated extra-budgetary operational activities are largely handled by TCO, the regional operations branches and, to a small degree, by the technical units at Headquarters. They are broken down by major geographic areas in the following table (including global and interregional, which are largely handled by TCO). These forecasts reflect known facts regarding ongoing projects and reasonable expectations for projects in the pipeline.
|Programme and Major Programme||and Inter-||Pacific||East||America/|
|TOTAL CHAPTER 1||96||0||801||0||0||0||897|
|2.1.1||Natural Resources||298||6 913||2 350||25 847||1 270||7 440||44 118|
|2.1.2||Crops||9 199||31 884||45 985||130 137||17 637||11 070||245 912|
|2.1.3||Livestock||2 183||4 879||11 857||2 210||0||2 411||23 540|
|2.1.4||Agricultural Support Systems||302||2 893||3 720||508||2 139||1 391||10 953|
|2.1.5||Agricultural Applications of Isotopes and Biotechnology||0||460||0||0||77||0||537|
|2.1||Agricultural Production and Support Systems||11 982||47 029||63 912||158 702||21 123||22 312||325 060|
|2.2.1||Nutrition||3 818||1 475||476||0||0||429||6 198|
|2.2.2||Food and Agricultural Information||59||688||883||549||0||1 000||3 179|
|2.2.3||Food and Agricultural Monitoring, Assessments and Outlooks||0||1 470||0||0||0||0||1 470|
|2.2.4||Agriculture, Food Security and Trade Policy||80||1 380||882||431||0||0||2 773|
|2.2||Food and Agriculture Policy and Development||3 957||5 013||2 241||980||0||1 429||13 620|
|2.3.1||Fisheries Information||1 047||0||0||292||0||482||1 821|
|2.3.2||Fisheries Resources and Aquaculture||1 639||7 959||4 408||5 055||0||163||19 224|
|2.3.3||Fisheries Exploitation and Utilization||400||255||0||159||3 099||0||3 913|
|2.3.4||Fisheries Policy||1 751||13 050||0||197||3 137||0||18 135|
|2.3||Fisheries||4 837||21 264||4 408||5 703||6 236||645||43 093|
|2.4.1||Forest Resources||1 368||14 057||15 609||3 169||519||4 133||38 855|
|2.4.2||Forest Products||1 435||238||1 012||0||0||0||2 685|
|2.4.3||Forestry Policy and Planning||3 320||5 243||1 679||0||886||9 677||20 805|
|2.4||Forestry||6 123||19 538||18 300||3 169||1 405||13 810||62 345|
|2.5.1||Research, Natural Resources Management and Technology Transfer||1 208||6 323||2 866||2 767||98||1 462||14 724|
|2.5.2||Women and Population||1 287||815||1 740||57||0||0||3 899|
|2.5.3||Rural Development||80||3 553||2 395||1 499||91||4 303||11 921|
|2.5.6||Food Production in Support of Food Security in LIFDCs||908||4 044||1 841||0||124||1 669||8 586|
|2.5||Contributions to Sustainable Development and Special Programme Thrusts||3 483||14 821||8 842||4 323||313||7 434||39 216|
|TOTAL CHAPTER 2||30 382||107 665||97 703||172 877||29 077||45 630||483 334|
|3.1.1||Coordination of Policy Assistance and Related Capacity Building||304||0||0||0||0||0||304|
|3.1.2||Policy Assistance to Various Regions||0||988||55||817||0||9 993||11 853|
|3.1.3||Legal Assistance to Member Nations||126||381||0||0||0||0||507|
|3.1||Policy Assistance||430||1 369||55||817||0||9 993||12 664|
|3.2.1||FAO/World Bank Cooperative Programme||50||0||0||0||0||0||50|
|3.2.2||Investment Support Programme||616||0||0||0||0||0||616|
|3.2||Support to Investment||666||0||0||0||0||0||666|
|3.3.1||Field Operations in Various Regions||0||0||78||0||0||0||78|
|3.3.3||Emergency Response Operations||106||66||0||0||0||0||172|
|3.5.1||Multilateral and Bilateral Agencies||1 337||0||0||0||0||0||1 337|
|TOTAL CHAPTER 3||2 539||1 525||192||905||0||9 993||15 154|
|6.0.0||Common Services||1 000||0||0||0||0||1 000||2 000|
|TOTAL CHAPTER 6||1 000||0||0||0||0||1 000||2 000|
|GRAND TOTAL||34 017||109 190||98 696||173 782||29 077||56 623||501 385|
93. Significant efficiency savings of the past three biennia have made it possible for the Organization to reprogramme substantial resources to new thrusts and priorities. This has been achieved despite reductions in the Organization's net budget level in both real and nominal terms since 1992-93 and notwithstanding large reductions in Other Income, particularly funding from Project Servicing Costs and Other Administrative Support Services.
94. Some of the efficiency measures implemented in prior biennia are being further pursued. These include input-oriented economies such as the ongoing efforts at reducing the number of director-level posts in 2000-01 (mainly in FAORs), expansion of the partnership programmes, the implementation of cheaper and better forms of communication between locations and cost reductions through more rigorous means of tendering.
95. Further savings in 2000-01 will focus on process-oriented change. They will necessitate changes in policies, procedures and ways of working, with the aim of streamlining operational and administrative functions, which will lead to changes in organizational structures. They will include further modifications to the delegation of authority conferred on officials of the Organization, whilst ensuring that acceptable levels of internal control and stewardship of resources are retained.
96. The recent "Phase 1" implementation of new administrative systems has provided an opportunity for reviewing procedures and ways of working. However, the implementation of process-oriented savings requires extensive internal discussion and evaluation, and sometimes involves prior agreement with third parties. Given the lack of operational experience with Oracle so far, the implementation of such changes in 2000-01 is not devoid of risks.
97. It is recalled that the existing Headquarters MSUs are to be replaced by a centralized management support structure, reporting to the Assistant Director-General, AF, providing personnel servicing and financial transaction processing support to all Headquarters departments and divisions. The full details of this restructuring will require further scrutiny and approval in accordance with established internal procedures and the impact of these new arrangements on the work of AFF and AFP may also have to be further considered in this context. Despite the additional internal effort required to finalize the arrangements and modalities of this restructuring, the biennial savings from these arrangements are estimated at approximately US$ 7 million under the ZRG scenario and US$ 7.5 million under the ZNG scenario.
98. A significant adjustment to the Headquarters Field Operations Division (TCO), including the abolition of the Fellowships and Reports Branch and the assumption of its functions in TCOC (which will be renamed Project Operations Coordination, Reports and Support Branch) will also yield considerable savings in 2000-01.
99. It is also recalled that additional potential synergies between the regional office technical departmental groups, operations branches and the MSUs are being studied and that related economies are already reflected under ZNG.
100. The 2000-01 ZRG proposals also include structural changes in GI Department, particularly in GII and GIL. In the case of GIL, the proposals include the proposed phasing out of the AGRIS processing centre in Vienna from 2000, with the function being achieved through more economical and effective means.
101. The proposed Organization Chart effective 1 January 2000 is attached to the back of this document. It includes the impact of the organizational changes noted above. Although the revised Organization chart takes account of numerous changes to the structure of AF Department, further changes in AF are likely, to take account of the impact of new working arrangements under Oracle. The chart also reflects two further organizational changes but which have minimal impact on the 2000-01 budgetary proposals:
102. The incorporation of Support Costs and Other Income within the budget, and the implementation of a new framework for FAO publications and documents, led to the inclusion of a number of non-Regular Programme positions in the total establishment for 1998-99. The adoption of a zero nominal growth (ZNG) budget in 1998-99 brought the total 1998-99 establishment down to 3 599 posts, of which 3 387 are funded by the Regular Programme and the balance from Other Income.
103. The Administration and Finance Department (AF) has made further proposals in the Programme of Work and Budget 2000-01 involving consolidation of the communications functions within the Information Systems and Technology Division (AFI). Although the proposals are cost neutral for AF, five professional posts and 26 general service posts are proposed for transfer from the divisional budgets to the Information Technology (IT) Pool account as part of this restructuring, thus integrating all posts dealing with telecommunications in all its forms.
104. Furthermore, a proposed transformation of the editorial services pool into a centrally-managed and funded provision for core multilingual editorial services to technical departments to be placed in the GII Division is cost neutral from a staffing viewpoint. It entails the transfer of six professional posts and eight general service posts from the hitherto Editorial Services pool account to the GII budget.
105. As noted above, the details of the restructuring of the Headquarters MSUs are still being worked out. Nevertheless, the ZRG scenario envisages the net abolition of nine professional and 42 general service posts. In addition, the ZNG scenario tentatively foresees the abolition of a further five general service posts, so as to maximize economies in administrative areas.
106. Potential for economies has been identified in three out of the four Regional Office Operations branches (namely RAF, RAP and RNE) where the benefit of experience in decentralized operations and foreseen levels of field programme delivery will make it possible to abolish 8 professional and 10 general service posts. As noted above, further restructuring and post abolitions may be recognized following completion of the review of the responsibilities and modalities for providing administrative and technical support to field programme operations in the regions, but no specific abolitions can be identified at this stage.
107. The following table summarizes the evolution of established posts from the 1998-99 approved budget to the proposals for the Programme of Work and Budget 2000-01. The transfer of posts between Pools and Other Funds and Regular Programme related to the AFI/AFS and GII pool restructuring, the impact of Headquarters MSU restructuring and abolitions in Regional Office Operations branches, are shown separately from the impact of the remaining programme changes.
Evolution of Posts (ZRG)
|Category||1998-99 Approved Budget||AFI/AFS and GII Pool Restructuring||MSU Restructuring||Regional Operations (Volume Reductions)||Other Programme Changes||Overall ZRG Change||PWB 2000-01 Proposals|
|Regular Programme (RP):|
|General Service||1 091||(18)||(42)||0||(29)||(89)||1 002|
|Total||1 987||(17)||(51)||0||(26)||(94)||1 893|
|Regional/Sub-regional and Liaison Offices|
|Total Regular Programme|
|International Professional||1 271||1||(9)||(8)||14||(2)||1 269|
|General Service||2 051||(18)||(42)||(10)||(28)||(98)||1 953|
|Total||3 387||(17)||(51)||(18)||(14)||(100)||3 287|
|Pools and Other Funds:|
|Grand Total All Funds|
|International Professional||1 354||0||(9)||(8)||13||(4)||1 350|
|General Service||2 180||0||(42)||(10)||(30)||(82)||2 098|
|Grand Total||3 599||0||(51)||(18)||(17)||(86)||3 513|
|1||Regional Office 1998-99 approved budgets includes 8 outposted TCI posts, while the Programme of Work and Budget 2000-01 proposal includes 11 outposted TCI posts.|
108. Despite efforts made to "protect" general service posts, the proposals will mean a significant reduction in the number of such posts during the biennium. However, continuing pressure on resources and the need to accelerate the organizational changes described above made further reductions necessary. Fortunately, in the short term, most general service staff whose posts have been cut can be accommodated through redeployment to vacancies which arise during this period because of the relatively high rate of mandatory and early retirement of this category and the freeze on recruitment of general service staff, which has been in place since 1994. This should allow these adjustments to take place without large scale loss of jobs and hardship to staff members.
109. Within the other programme changes referred to above, 56 new posts and 70 post abolitions are proposed under the Regular Programme. The following table lists all new posts and abolitions to the Regular Budget falling under the column "other programme changes" in the table above.
|Regular Programme-funded New Posts and Abolitions (excluding divisional transfers within Headquarters and changes pertaining to AFI/AFS and GII pool transfers, the Headquarters MSU restructuring, and the reductions in the Regional Operations branches)|
|Unit||New Posts||Abolished Posts|
|Grade||Post Title||Grade||Post Title|
|SAD||P-3||Liaison Officer (transferred from Other Funds)|
|AGL||P-4||Technical Officer (Soil Management)||P-3||Technical Officer (Data Processing/Biometrics)|
|ESD||P-5||FIVIMS Coordinator||G-5||Statistical Clerk|
|FI||P-4||Fisheries Analyst (Fishing Capacity)||G-4||Documents Clerk|
|Fishery Industry Officer (Trade Analysis)
Fishery Information Officer
|FO||P-4||Electronic Information Storage and Dissemination Systems Manager||G-6||Meetings Assistant|
|P-2||Meetings Officer||G-3||Statistical Clerk (to RAP)|
|SDD||P-3||Publications Officer||G-6||Reference Assistant|
|SDA||P-4||Rural Development Officer||P-3||Land Tenure Institutions Officer (to SAFR)|
|G-5||Clerk||P-3||Land Administration Officer (to RLC)|
|SDR||P-5||Senior Extension Education and Communications Officer (to RAP)|
|G-6||Development Communication Assistant|
|TCD||G-6||Liaison Assistant||P-4||Programme Officer (2 posts)|
|G-3||Registry Clerk||G-6||Documentation Assistant|
|P-5||Animal Production Officer|
|G-5||Secretary (2 posts)|
|TCO||P-4||Food Security Officer||P-5||Chief, TCOC|
|P-4||Project Operations Officer|
|P-3||Fellowships Officer (Study Tours)|
|G-4||Fellowships Clerk (3 posts)|
|G-3||Bilingual Typist (3 posts)|
|G-4||Accounting Clerk (4 posts)|
|AFP||P-3||Personnel Officer (Health Benefits)||P-3||Personnel Officer|
|AFS||G-4||Painter Foreman||G-6||Supervisor Distribution Unit|
|G-4||Blacksmith Foreman||G-5||Purchasing Clerk|
|G-4||Mason Foreman||G-5||Assistant Security Supervisor|
|G-4||Electrician Foreman||G-3||Records Clerk|
|G-4||Fire and Safety Clerk||G-3||Lead Blacksmith|
|G-3||Distribution Clerk||G-3||Lead Mason|
|G-3||Senior Guard (5 posts)||G-2||Painter|
|G-2||Guard (2 posts)|
|GID||P-4||Assistant Executive Co-ordinator (WFD Special Events)||P-4||Information Technology Officer|
|GII||P-5||Chief, Media Relations||P-5||Chief, GIII|
|P-4||Chief, Sales and Marketing Group
(transferred from Other Funds)
|P-3||Editor Cerestronic (Arabic)||G-5||Film and Video Technician|
|G-4||Production Clerk (Cerestronic)|
|GIL||P-4||Agris & FAO Documentation Officer||P-5||Senior Process Officer (AGRIS)|
|P-4||Hypermedia Systems Officer||G-5||Operations Clerk|
|P-2||Information Systems Officer||G-4||Clerk Stenographer|
|P-2||Information Management Specialist (AGRIS)|
|G-4||Information Systems Clerk (AGRIS)|
|G-3||Information Systems Clerk (AGRIS)|
|OCD||P-4||Information Technology Officer|
|RAF||P-2||Information Management Specialist||G-6||Personnel Assistant|
|G-3||Operations Clerk (2 posts)||G-1||Telephone Operator|
|SAFR||P-3||Land Tenure Institutions Officer (from SDA)|
|RAP||P-5||Senior Extension Education and Communications Officer (from SDR)|
|P-4||Water Resources Development Conservation Officer|
|P-2||Information Management Specialist|
|G-4||Statistical Clerk (from FO)|
|SAPA||G-5||Information Resources Clerk||G-4||Clerk-Stenographer (2 posts)|
|RLC||P-3||Land Administration Officer (from SDA)|
|P-2||Information Management Specialist|
|G-4||Help Desk Technician|
|RNE||P-2||Information Management Specialist||P-3||Water Resources Officer|
|SNEA||G-5||Information Resources Clerk|