Contents
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VII. Constitutional and administrative matters
A. Statutory Report on Status of Conventions
and Agreements, and Amendments thereto
B.
Audited accounts
C. Scale of contributions 1982-83
D. Other financial and administrative
questions
A. Statutory Report on Status of Conventions and Agreements, and Amendments thereto
316. Pursuant to Rule XXI of the General Rules of the Organization, and in accordance with established practice, the Director-General submitted to the Conference the biennial Statutory Report reflecting the present status of conventions and agreements concluded within the framework of FAO of other multilateral treaties concluded outside its framework in respect of which the Director-General acts as Depositary, and of the Convention on the Privileges and Immunities of the Specialized Agencies as applied to FAO.
317. The Conference noted that the Statutory Report followed the same pattern as earlier reports, except that, in line with established practice of the United Nations, declarations and reservations made by parties to some conventions and agreements had also been introduced in the aforesaid document.
318. The Conference took note of the Statutory Report, which is contained in documents C 81/10 and C 81/10-Sup.1, as updated orally during the Conference Session.
319. With reference to the International Plant Protection Convention mentioned in paragraphs 22-24 of the Statutory Report, the Conference recalled that, when approving the amendments to the Convention by Resolution 14/79 at its Twentieth Session, it had urged the parties to the Convention to accept the revised text at the earliest possible time. The Conference noted, however, that only 22 acceptances had been received to date while at least a further 33 acceptances were still required for the entry into force of the revised text. In view of the importance of the Convention in strengthening international action against the spread of pests of plants and plant products in the context of international trade, the Conference reiterated its appeal to States that have not yet accepted the revised text of the Convention to deposit an instrument of acceptance as soon as possible.
320. The Conference expressed its appreciation for the quality of the External Auditor's Reports, which it considered well reasoned and pertinent.
321. The Conference noted the recommendations of the External Auditor and it endorsed the measures that the Director-General had already taken to deal with them.
322. The Conference adopted the following resolution:
AUDITED ACCOUNTS
THE CONFERENCE,
Having considered the reports of the Seventy-eighth and Eightieth Sessions of the Council, Having examined the following audited accounts and the External Auditor's Reports thereon:
| Regular Programme 1978-79 | C 81/5 |
| United Nations Development Programme 1979 and 1980 | C 81/6; C 81/6(a); C 81/6(a)-Corr.1 |
| World Food Programme 1979 and 1980 | C 81/7; C 81/7(a) |
Notes the recommendations of the External Auditor contained in
his Report and endorses the measures taken so far by the
Secretariat in response to these recommendations.
Adopts the above audited accounts.
(Adopted 25 November 1981)
C. Scale of contributions 1982-83
323. The Conference took note of the recommendation of the Seventy-ninth Session of the Council, which was in accordance with the decision of the Eighth Session of the Conference (1955) that the FAO Scale of Contributions for future biennia would be derived directly from the UN Scale of Assessments in force during the calendar year of each Conference Session.
324. The Conference was informed that both the proposed FAO Scale for 1982-83 and the 198081 Scale had been derived directly from the same UN Scale of Assessments, the UN Scale being in force for the three year period 1980-82. The proposed FAO Scale for 1982-83 was therefore the same as the current Scale, except for adjustments which arose from the admission by the Twenty-first Session of the Conference of five new Member Nations.
325. The Conference adopted the following resolution:
SCALE OF CONTRIBUTIONS 1982-83
THE CONFERENCE,
Having noted the recommendation of the Seventy-ninth Session of the Council,
Confirming that as in the past FAO should follow the United Nations Scale of Assessments subject to adaptation for the different membership of FAO,
1. Decides that the FAO Scale of Contributions for 1982-83 should be derived directly from the United Nations Scale of Assessments in force in 1981,
2. Adopts for use in 1982 and 1983 the Scale as set out in Appendix F of this report.
(Adopted 25 November 1981)
326. The delegate of Brazil, in expressing opposition to the resolution, proposed that the adaptation from the UN Scale to the FAO Scale to account for the differences in membership between the two Organizations, should not be made solely on an arithmetical basis, but rather by taking also into consideration economic and financial factors.
D. Other financial and administrative questions
Amendments to the provisions of the special reserve account
Headquarters accommodation
Regional office for the near east (RNEA)
Abolition of audited interim accounts 11
Status of contributions
Payment of contributions - Central African Republic
Replenishment of the working capital fund
Increase in the level of the working capital fund
Emoluments of the Director-General
Amendments to the provisions of the special reserve account
327. The Conference noted that the Council, at its Seventy-ninth Session, had examined the current validity, application and effectiveness of the provisions of the Special Reserve Account as established by Conference Resolution 27/77.
328. The Conference noted further that the Council had considered that, in the light of continued high inflation and currency instability, the current provisions were too restrictive. The Council had therefore recommended the following amendments to the Special Reserve Account to render it more effective and responsive to the needs of the Organization:
(i) the level of the Special Reserve Account be increased to five percent of the effective working budget;
(ii) the limitation on the use of the account to cover unbudgeted extra costs (presently two percent) be removed; and
(iii) approval for withdrawals in respect to unbudgeted costs be entrusted to the Programme and Finance Committees.
329. A few Member Nations could not support the proposals, believing that the current provisions were reasonable and provided adequate safeguards. Some other Member Nations, recognizing that the current provisions were inadequate and too restrictive for the efficient implementation of the approved Programme of Work, supported more flexible arrangements, including an increase in the level of the Special Reserve Account, to five percent of the effective working budget. Host of those Member Nations, however, considered that a ceiling should be set for the use of the Account to cover unbudgeted costs, and that the present arrangements for approval of such withdrawals concerning unbudgeted costs should be retained, i.e. should remain with the Council. It was also noted that the proposed changes might result in additional assessments on Member Nations.
330. The great majority of Member Nations, however, fully supported the proposals, which they considered to provide flexible, prompt and practical means to protect the integrity of the approved programme against unbudgeted inflation and currency instability which were beyond the control of the Director-General.
331. The Conference adopted the following Resolution:
SPECIAL RESERVE ACCOUNT
THE CONFERENCE,
Recalling its Resolution 27/77, whereby a Special Reserve Account was established, as of 31 December 1977, to assist in protecting the Organization's Programme of Work against the effects of unbudgeted extra costs that may arise in the 1978-79 biennium or in any subsequent biennia,
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 any given biennium,
Recognizing that implementation of the Organization's approved Programme of Work and Budget should not be placed in Jeopardy due to unbudgeted extra costs arising from adverse currency fluctuations and unbudgeted inflationary trends,
Taking into account the experience gained with respect to the magnitude of currency fluctuations and unbudgeted coats in comparison to the effective working budget total,
Noting that up to 30 September 1981 US$ 16 135 000 had been credited to the Special Reserve Account as savings on staff costs arising from currency fluctuations and that, provided the rate of exchange for the lira did not change substantially in the remainder of 1981, further amounts would be credited to the Account,
Considering that, provided Member Nations pay their contributions in good time, a cash surplus is expected,
Having examined the recommendations of the Council at its Seventy-ninth Session on measures to ensure the financing of such unbudgeted extra coats as may have to be met,
1. Authorizes the Director-General to use the funds in the Special Reserve Account:
(a) whenever the Working Capital Fund la 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 and approval by the Programme and Finance Committees, 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 without impairing the implementation of such programmes
(Adopted 25 November 1981)
332. The Conference endorsed the recommendations of the Council as outlined in the Council's report of its Eightieth Session. In particular, it noted with concern that the only developments so far were the possibility of the Host Government implementing one of the interim measures proposed by the Director-General namely the construction of some 60 rooms on the roof of building D. It welcomed on the other hand the statement made on World Food Day (16 October 1981) by the President of the Council of Ministers of Italy regarding the Host Government's good intentions concerning the construction of a new building complex.
333. The Conference agreed on the gravity of the problem and that concrete action would have to be initiated now in order to avoid a continuation of the present critical situation. It appreciated the unremitting efforts of the Director-General to obtain a positive response from the Host Government and in support of these, adopted the following Resolution:
HEADQUARTERS ACCOMMODATION
THE CONFERENCE,
Recognizing that the buildings made available by the Italian Government at Viale delle Terme di Caracalla have long proved insufficient for accommodating the Headquarters staff of the Organization and the World Food Programme, this having necessitated the construction of temporary office accommodation in 1965 and the renting of additional premises since 1969,
Recalling the solution to the problem of Headquarters accommodation identified by the Director-General and supported by the Council at its Seventy-ninth Session ,
1. Decides to establish, under Article VI.5 of the Constitution, a working party consisting of seven Member Nations, comprising a representative from each of the seven FAO regions,
2. Decides that the Working Party will comprise the following Member Nations:
Australia
Bangladesh
Colombia
Greece
Saudi Arabia
United States of America
Congo whose representatives should, in consultation with the
Director-General, act as a delegation for the purpose of meeting
the Italian Authorities at the highest level, with a view to
requesting, as a matter of urgency, the implementation of both
the interim and permanent solutions proposed by the
Director-General and endorsed by the Council at its Seventy-ninth
Session,
3. Authorizes the Director-General to convene meetings of the Working Party at such times as he may consider necessary or appropriate,
4. Requests the Working Party to report to the Council at its Eighty-second and Eighty-third Sessions and to the Conference at its Twenty-second Session on the progress made and on further steps that may be envisaged in order to achieve with the least possible delay a permanent solution to the accommodation problem.
(Adopted 25 November 1981)
Regional office for the near east (RNEA)
334. The Conference expressed its full satisfaction on the manner in which the Director-General had implemented Resolution 20/79 regarding the Regional Office for the Near East. It commended the speed and efficiency with which the arrangements had been effected while maintaining fully the quality and usefulness of services to the countries of the Region. It also noted with appreciation that the provisions made by the Director-General in the Programme of Work and Budget for 1982-83 would permit the Regional Office to continue to serve the needs and interests of the countries in the Region. The hope was expressed that the Regional Office would be able to operate again within the Region when more favourable circumstances permit.
Abolition of audited interim accounts 11
335. The Conference recalled that although the financial period of the Organization was two calendar years, the current Financial Regulations provided for the submission of interim accounts to the External Auditor for audit. It agreed that in the context of a biennial programme of work and budget cycle, the usefulness of audited interim accounts was limited.
336. The Conference agreed that, in order to take full advantage of biennial budgeting possibilities and to reduce expenses, the requirement for audited interim accounts be abolished, subject to the possibility of audited interim accounts being prepared in exceptional cases or where the nature of the account so warranted.
337. The Conference adopted the following Resolution:
AMENDMENT TO THE FINANCIAL REGULATIONS
THE CONFERENCE,
Noting that, although the financial period of the Organization was two calendar years, the current Financial Regulations provided for the submission of audited interim accounts to the External Auditor at the end of the first year of each biennium,
Recognizing that in the context of a biennial programme of work and budget the usefulness of audited interim accounts was limited,
Noting the Report of the Seventy-ninth Council Session on this question,
Decides that the Financial Regulations be amended as follows by deleting the words in square brackets and adding the words underlined:
Regulation X
Internal Control
10.3 The Director-General may make such ex gratia payments as he deems to be necessary. A statement of such payments shall be submitted with the final land interim/ accounts.
10.4 The Director-General may, after full investigation, authorize the writing-off of losses of cash, supplies, equipment and other assets, other than arrears of contributions. A statement of all such losses written off during the financial period shall be submitted to the External Auditor with the final /and interim/ accounts.
Regulation XI
The Accounts
11.2 Besides the final accounts for the financial period, the Director-General shall prepare, where the nature of the accounts so warrants, or in exceptional cases as decided by the Finance Committee, interim accounts at the end of each of the intervening years.
11.4 The final and any interim accounts of the Organization shall be presented in United States dollars. The accounting records may, however, be kept in such currency or currencies as the Director-General may deem necessary.
11.5 The final and any interim accounts shall be submitted to the External Auditor not later than 31 March following the end of the period to which they relate.
Regulation XII
External Audit Reporting
12.10 The External Auditor's reports shall be transmitted through the Finance Committee, together with the audited financial statements, to the Council in accordance with any directions given by the Finance Committee. The Council shall examine the financial statements and the audit reports and shall forward them to the Conference with such comments as it deems advisable. The report on /the/ any interim accounts shall be submitted to the Finance Committee.
Annex I
ADDITIONAL TERMS OF REFERENCE GOVERNING EXTERNAL AUDIT
5. The External Auditor shall certify the financial statements in the following terms: "I have examined the financial statements of the Organization for the /year/ financial period ended 31 December I have obtained all the information and explanations that I have required, and I certify, as a result of the audit, that, in my opinion, the financial statements are correct", adding, should it be necessary, "subject to the observations in my report."
(Adopted 25 November 1981)
338. The Conference was informed that the rate of receipt of contributions throughout much of 1981 had been lower than any on record, and often had been lower than the proportional share of budgeted appropriations. On 19 November 1981 only 83.37 percent of current assessments had been received, compared to 95.65 percent on the same date during the last Conference year, 1979, and 94.41 percent in 1977. Outstanding contributions of Member Nations on 19 November 1981 totalled $25873758 as listed in Appendix G.
339. The Conference noted that this deterioration in the pattern of payment of assessments by Member Nations had necessitated proposals for action to ensure that the Organization would have available cash resources for execution of the approved programme.
340. The Conference recognized that these financial problems would not exist if Member Nations honoured their obligations to the Organization as provided for in Financial Regulation 5.5. In accordance therewith, contributions were due and payable in full within 30 days of the receipt of the Director-General's communication requesting payment, or as of the first day of the calendar year to which they relate, whichever was later.
341. The Conference shared the deep concern expressed by the Council and appealed to all Member Nations to remit their contributions in accordance with the timing foreseen in the Financial Regulations. Timely receipt of payments from all Member Nations, especially the larger contributors, would provide sufficient funds for the cash flow requirements of the Organization and thus avoid interest costs which would arise if funds had to be borrowed to implement the programme.
Payment of contributions - Central African Republic
342. The Conference, noting, on the basis of information received from the Government of the Central African Republic that its failure to pay contributions had been due to conditions beyond its control, considered the proposal of the Government that it liquidate its arrears of contributions over a ten-year period commencing in 1981 in addition to paying each current contribution in the calendar year of assessment.
343. The Conference adopted the following resolution:
PAYMENT OF CONTRIBUTIONS - CENTRAL AFRICAN REPUBLIC
THE CONFERENCE,
Noting that the Government of the Central African Republic had made a proposal that it liquidate its arrears of contributions over a period of ten years commencing in 1981 in addition to paying each current contribution in the calendar year of assessment,
Decides that:
1. Nowithstanding Financial Regulation 5.5, the Central African Republic's arrears of contributions totalling $68 044.16 shall be settled through the payment of ten equal annual instalments of $6 804.42;
2. The first instalment together with the contribution assessed for 1981 shall be payable in 1981;
3. The annual payment of the instalments referred to above, together with the payment of each current contribution in the calendar year of assessment and any advances to the Working Capital Fund, shall be considered as fulfillment of the Central African Republic's financial obligations to the Organization.
(Adopted 12 November 1981)
Replenishment of the working capital fund
344. The Conference noted that at its Seventy-ninth Session the Council had adopted Resolution 1/79 authorizing the Director-General to withdraw from the Working Capital Fund up to $5 925 million to cover unbudgeted extra costs. It was expected that approximately $5.4 million would be required.
345. The Conference recalled that in accordance with Financial Regulation 6.5(b) advances made from the Working Capital Fund to finance expenditures not provided for in the budget should be reimbursed by such method as the Conference determined.
346. The Conference noted that if Member Nations paid their contributions promptly there would be sufficient cash surplus at 31 December 1981 to reimburse the amount withdrawn from the Working Capital Fund.
347. The Conference adopted the following Resolution:
REIMBURSEMENT OF WORKING CAPITAL FUND FROM CASH SURPLUS 1980-81
THE CONFERENCE,
Noting that the Director-General was authorized by Resolution 1/79 of the Seventy-ninth Session of the Council to withdraw an amount of up to $5 925 million from the Working Capital Fund to cover unbudgeted extra costs,
Noting that by 31 December 1981 it is expected that some $5.4 million will be required,
Further noting that if Member Nations pay their contributions promptly it is estimated that there will be a cash surplus in the 1980-81 biennium,
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), such portion of the surplus as is sufficient to cover the withdrawal shall be withheld and used to reimburse the Working Capital Fund.
(Adopted 25 November 1981)
Increase in the level of the working capital fund
348. The Conference noted that as a result of the highly unsatisfactory status of contributions, the Organization was experiencing financial problems. The Conference strongly stressed the obligation on Member Nations under the Financial Regulations to pay each year's assessment within 30 days of receipt of the Director-General's communication or on 1 January of the calendar year to which they relate, whichever was the later. Nonpayment or delays would penalize those who met their obligations promptly.
349. The Conference considered the proposal to raise the level of the Working Capital Fund, which would be used as the first resort to cover any deficit in the cash flow of the Organization resulting from delays in the receipt of contributions. Some Member Nations could not support the proposal which they believed might result in additional assessments on Member Nations and reserves which would not directly benefit the programme of the Organization. The majority of Member Nations, taking into account the pattern of payments contributions, including the intentions of the major contributor, supported the proposal which was considered a prudent and necessary measure to ensure full implementation of the approved programme.
350. The Conference noted that the new assessment to finance the increase in the Working Capital Fund to $13.25 million might be offset at least to some extent by the cash surplus which, according to current estimates, could still become available at the end of the current biennium.
351. The Conference adopted the following Resolution:
LEVEL OF THE WORKING CAPITAL FUND
THE CONFERENCE,
Recalling its Resolution 34/75, by which the level of the Working Capital Fund was fixed at $6 500000,
Also recalling its Resolution 33/75, by which the Director-General was authorized to withdraw up to $1 000.000 from the Working Capital Fund for financing initial emergency measures for the control of livestock diseases and desert locusts,
Regretting that in spite of the repeated appeals of the Council, the rate of receipts of contributions to the Budget has seriously deteriorated in comparison with previous biennia, and that to some extent this may reflect a continuing pattern,
Considering that the Working Capital Fund should be the first source of finance for budgetary expenditures pending receipt of contributions and that other methods should, as far as possible, be used only when serious cash flow problems occur despite withdrawals from the Working Capital Fund,
Noting that the present level of the Working Capital Fund constitutes only two percent of the present Budget level and that this percentage is much lower than in other comparable Organizations,
Having examined the recommendations made by the Council at its Eightieth Session,
Decides that as from 1 January 1982, the authorized level of the Working Capital Fund shall be $13 250 000 and that:
(a) Member Nations shall be reassessed in accordance with the provisions of Financial Regulation 6.2(b) (iv) and (v) as from 1 January 1982 on the basis of the Scale of Contributions for 1982-83;
(b) Notwithstanding the provisions of Financial Regulation 6.1(b), the portion of each Member Nation's share in any 1980-81 cash surplus as may be needed to bring up its advance to the Working Capital Fund after reassessment to the required level, shall be withheld and applied towards such advance as of 1 January 1982.
(Adopted 25 November 1981)
Emoluments of the Director-General
352. The Conference endorsed the Council's recommendation that the emoluments of the Director-General be brought in line with those of Executive Heads of organizations within the United Nations system. It also agreed that provision should be made for the automatic adjustment in the future of the Director-General's salary and allowances in line with those approved for staff in the Professional and higher categories.
353. 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 Nineteenth Session in accordance with operative paragraphs 1, 2 and 3 of Resolution 28/77,
Noting that the General Assembly of the United Nations, at its Thirty-fifth 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 recommendations 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,
Considering that the changes in entitlements of staff in the Professional and higher categories which were introduced in FAO with effect from 1 January 1981 should be applied retroactively to the Director-General, and that provision should be made whereby such changes in entitlements as in the future be introduced for the Professional and higher categories would automatically apply to the Director-General,
Considering also that in FAO the representation allowance of the Director-General had not been changed since it was established on 1 January 1977 at US $ 20.000.
Decides that:
1. The annual salary of the Director-General be retroactively adjusted from 1 January 1981 to the following amounts: gross salary US $125.400; net salary US $ 66.817 at the dependency rate, or US $ 60.177 at the single rate; post adjustment for one index point US $ 550 at the dependency rate, or US $ 496 at the single rate.
2. The system of allowances and benefits applicable to the Director-General be amended from 1 January 1981 in the same way as that of staff in the Professional and higher categories;
3. In the future the salary and allowances of the Director-General shall be adjusted in line with any revision of salaries and allowances of staff in the Professional and higher categories;
4. The representation allowance of the Director-General be increased to US $ 24.000 effective 1 January 1981.
(Adopted 25 November 1981)
Contents
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