FC 92/5(b)




Finance Committee



Ninety-second Session

Rome, 3 - 7 May 1999

Financial Position of the Organization
FAO Interim Accounts 1998


Table of Contents

I. Statement I

STATEMENT OF INCOME AND EXPENDITURE AND CHANGES IN RESERVES AND FUND BALANCES

for the period ended 31 December 1998

(US$'000)
  A. NOTES General and Related Funds Trust Funds and UNDP Total
INCOME:       1998 1996
Assessment on Member Nations 1 308,447 - 308,447 315,500
Voluntary contributions 2 15,099 209,957 225,056 178,500
Funds received under inter-organisational arrangements   4,237 28,391 32,628 50,800
Jointly financed activities 3 12,916 - 12,916 18,000
Services rendered   3,016 - 3,016 3,000
Miscellaneous 4 37,461 9,085 46,546 19,300
Sundry 5 (3,686)   (3,686) 14,700
           
    377,490 247,433 624,923 599,800
EXPENDITURE:          
Regular Programme   349,154 - 349,154 356,700
Projects     247,433 247,433 241,000
           
  6 349,154 247,433 596,587 597,700
           
EXCESS OF INCOME OVER EXPENDITURE   28,336 0 28,336 2,100
           
Provision for contributions 7 (14,453) 0 (14,453) 55,000
Amortisation of After-service Medical Scheme   (10,289)   (10,289)  
           
NET EXCESS OF INCOME OVER EXPENDITURE   3,594 0 3,594 57,100
           
Net Transfers from/(to) Reserves          
Support Costs       0 3,000
Working Capital Fund 15 (23,700) - (23,700) 700
Special Reserve Account 16 (29,747) - (29,747) (28,400)
Fund balances, beginning of period   27,609 0 27,609 (70,600)
           
FUND BALANCES, END OF PERIOD   (22,244) 0 (22,244) (38,200)
           

II. Statement II

STATEMENT OF ASSETS, LIABILITIES AND RESERVES AND FUND BALANCES

as at 31 December 1998

(US$'000)
  Notes General and Related Funds Trust Funds and UNDP Total
ASSETS       1998 1996
Cash and term deposits   102,882 190,154 293,036 243,700
Investments 8 140,973 - 140,973 141,500
Contributions receivable from Member Nations 9 168,340 - 168,340 158,400
less: Provision for delays of contributions 7 (168,340) - (168,340) (158,400)
Accounts receivable 10 33,778 30,973 64,751 42,500
           
    277,633 221,127 498,760 427,700
           
LIABILITIES          
Contributions received in advance 11 10,406 161,079 171,485 153,700
Unliquidated obligations   29,682 47,837 77,519 58,600
Inter-fund balances   (2,813) 2,813 0 -
Accounts payable 12 14,095 9,398 23,493 30,700
Deferred Income 13 60,254 - 60,254 48,100
Staff related schemes 14 134,857 - 134,857 146,600
           
    246,481 221,127 467,608 437,700
RESERVES AND FUND BALANCES          
Working Capital 15 23,756 - 23,756 0
Special Reserve 16 29,640 - 29,640 29,300
Fund Balances, end of period 17 (22,244) 0 (22,244) (38,200)
    31,152 0 31,152 (8,900)
           
Support Costs   0 - 0 (1,100)
           
    31,152 0 31,152 (10,000)
           
    277,633 221,127 498,760 427,700

Statement III

STATEMENT OF CASH FLOW

for the period ending 31 December 1998

(US$'000)
  1998 1996  
CASH FLOWS FROM OPERATING ACTIVITIES      
Net excess of income over expenditure (Statement I) 3,594 57,100  
Adjustment for interest receivable (26,500) (13,700)  
      (22,906) 43,400  
           
Increase in contributions receivable (14,340) 54,800  
Increase in accounts receivable (20,350) (7,200)  
Increase in provision for contributions 14,340 (54,800)  
           
Increase in deferred income 10,054 4,000  
Increase in contributions received in advance 11,285 (6,100)  
Decrease in accounts payable (2,498) 10,200  
Increase in unliquidated obligations 18,119 (6,900)  
Increase in staff related schemes 9,457 1,800  
           
3,161 39,200  
           
CASH FLOWS FROM INVESTING ACTIVITIES:      
           
Decrease in investments 11,227 (7,800)  
           
  11,227 (7,800)  
           
CASH FLOWS FROM FINANCING ACTIVITIES      
Increase in W.C.F. 56 0  
Increase in S.R.A. 93 200  
Decrease in loans 0 (8,000)  
Interest Received 21,599 16,000  
Interest Paid 0 (300)  
           
  21,748 7,900  
NET INCREASE IN CASH AND CASH EQUIVALENTS 36,136 39,300  
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 256,900 204,400  
CASH AND CASH EQUIVALENTS AT END OF PERIOD 293,036 243,700  

 

Statement IV

A. STATUS OF REGULAR PROGRAMME APPROPRIATIONS

FOR THE PERIOD ENDED 31 DECEMBER 1998

(US$'000)

   

Appropriations and Credits

      
 

Chapter

 Original Budget Transfers Modified Budget Other Income(a) Total Expenditure Deferred Income Unutilized Balance
1

General Policy and Direction

 50,359   50,359 3,200 53,559 24,140   29,419
2 Technical and Economic Programmes 292,906   292,906 7,300 300,206 139,877   160,329
3 Development Support Programmes 118,029   118,029 73,600 191,629 91,119   100,510
4 Technical Cooperation programme 89,447   89,447 (10,600) 78,847 4,881 39,769 34,197
5 Support Services 57,496   57,496 8,600 66,096 33,514   32,582
6 Common Services 41,163   41,163 4,400 45,563 23,800   21,763
7 Contigencies 600   600 0 600 0   600
  TOTAL EFFECTIVE WORKING BUDGET 650,000 0 650,000 86,500 736,500 317,331 39,769 379,400
8 Transfer to Tax Equalisation Fund 91,780 (91,780) 0     0   0
  Currency variance           (3,429)   3,429
 

Undistributed Staff cost variance

           4,402   (4,402)
    741,780 (91,780) 650,000 86,500(b) 736,500 318,304 39,769 378,427
                   
(b) The Other Income received in 1998 was US$35,268

 

NOTES TO THE ACCOUNTS

(US$'000)
    General and Related Funds Trust Funds and UNDP TOTAL
         
1

ASSESSMENT ON MEMBER NATIONS

      
         
  1998 Regular Programme assessment 320,400   320,400
  Less: Amount in respect of Tax Equalisation Fund (1,250)   (1,250)
  TCP Appropriation in respect of 1998 (43,655)   (43,655)
    275,495   275,495
  Add: Amounts transferred from deferred income      
  in respect of expenditures against:      
  (i) 1996/97 TCP appropriation 29,684   29,684
  (ii) 1998/99 TCP appropriation 3,886   3,886
    309,065   309,065
  Less: Discounts of Contributions (618)   (618)
    308,447   308,447
2 VOLUNTARY CONTRIBUTIONS      
         
  Government sponsored schemes   111,748 111,748
  Non-Government sponsored schemes   85,974 85,974
  Jointly-Financed schemes   10,657 10,657
  Multidonor projects   1,578 1,578
  Support Costs 15,099 0 15,099
    15,099 209,957 225,056
3 JOINTLY FINANCED ACTIVITIES      
         
  FAO/World Bank Cooperative Programme 9,429   9,429
  Investment Support Programme:      
  African Development Bank 1,515   1,515
  Asian Development Bank 362   362
  International Fund for Agricultural Development 1,044   1,044
  United Nations Capital Development Fund 128   128
  Others 438   438
    12,916   12,916
4 MISCELLANEOUS      
         
  Investment Income 29,838 0 29,838
  Bank Interest and Investment Income 2,567 9,085 11,652
  Lapse of Accrued liabilities 4,795 0 4,795
  Others 261 0 261
    37,461 9,085 46,546
         
5 SUNDRY      
         
  Government Cash Contributions 1,072   1,072
  Publications Revolving Fund 924   924
  Gains/(Losses) on exchange (5,682)   (5,682)
    (3,686)   (3,686)
6 EXPENDITURE      
  Expenditure includes $318,304,000 in respect of the 1998/99 appropriation (see Statement IV); $29,684,000 in respect of 1996/97 TCP appropriation and $1,166,000 in respect of the Publications Revolving Fund and is made up as follows:      
  Staff salaries 218,755 83,553 302,308
  Other Human Resources 53,346 9,135 62,481
  Official Travel 14,389 12,205 26,594
  Publications 6,972 0 6,972
  General Operating Expenses 29,330 14,455 43,785
  Purchases of equipment 17,825 90,210 108,035
  Training 0 21,327 21,327
  Contracts 0 16,340 16,340
  Sundries 8,537 208 8,745
    349,154 247,433 596,587
7 PROVISION FOR CONTRIBUTIONS      
         
  At 1 January 1998 153,967   153,967
  (a) Credited to Statement of income and expenditure      
  Assessment on Member Nations 14,273   14,273
  Government Cash Contributions 180   180
    14,453   14,453
  (b) Other amounts (80)   (80)
  At 31 December 1998 168,340   168,340
         
8 INVESTMENTS      
  Compensation Plan Reserve 21,004   21,004
  Separation Payments Scheme 111,135   111,135
  After Service Medical Scheme 7,010   7,010
  General Fund 1,824   1,824
    140,973   140,973
  The market value of investments at 31.2.98 totalled $185,443,000.      
         
9 CONTRIBUTIONS RECEIVABLE      
         
  Assessments on Member Nations 151,003   151,003
  Government Cash Contributions 4,846   4,846
  Working Capital Fund 1,614   1,614
  Special Reserve Account 10,877   10,877
    168,340   168,340
10 ACCOUNTS RECEIVABLE      
         
  Salary and Other Advances 12,737 2,835 15,572
  Deposits and Prepayments 789 0 789
  Other UN and non-UN Organisation 13,595 24,402 37,997
  Accrued Interest Receivable 159 1,040 1,199
  Others 6,498 2,696 9,194
    33,778 30,973 64,751
11 CONTRIBUTIONS RECEIVED IN ADVANCE      
         
  Assessments on Member Nations 10,406 0 10,406
  Voluntary contributions 0 161,114 161,114
  Funds received under inter-organisational arrangements 0 (35) (35)
    10,406 161,079 171,485
12 ACCOUNTS PAYABLE      
         
  Payroll Accruals 1,109 737 1,846
  Field disbursements 4,041 4,492 8,533
  Pension and Medical Schemes 2,078 363 2,441
  Others 6,867 3,806 10,673
    14,095 9,398 23,493
13 DEFERRED INCOME      
         
  At 1 January 1998 50,169   50,169
  Add: 1998/99 PWB assessment relating to TCP appropriation 43,655   43,655
  Less: (i) 1996/97 TCP appropriation (29,684)   (29,684)
  (ii) 1998/99 TCP appropriation (3,886)   (3,886)
  At 31 December 1998 60,254   60,254
         
14 STAFF RELATED SCHEMES      
         
  Separation Payments Scheme 75,145   75,145
  Compensation Plan 17,293   17,293
  After-service Medical 12,422   12,422
  Staff fiduciary accounts 11,802   11,802
  Terminal Payments fund (920)   (920)
  Other participating agencies 19,115   19,115
    134,857   134,857
         
15 WORKING CAPITAL FUND      
         
  At 1 January 1998 49   49
  Receipts from Member Nations 7   7
  Net transfers from General Fund: 23,700   23,700
  At 31 December 1998 23,756   23,756
         
16 SPECIAL RESERVE ACCOUNT      
         
  At 1 January 1998 (179)   (179)
  Receipts from Member Nations 72   72
  Net transfers from General Fund: 32,000   32,000
  Exchange differences on translation of foreign currencies (5,682)   (5,682)
  Currency variance on staff standard costs 3,429   3,429
    29,747   29,747
  At 31 December 1998 29,640   29,640
         
17 FUND BALANCES      
         
  General Fund (22,002)   (22,002)
  Publications Revolving Fund (242)   (242)
    (22,244)   (22,244)