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XI. Administrative and financial matters

A. Audited accounts for 1958-59
B. Audited accounts for 1960 - European commission for the control of foot-and-mouth disease
C. Audited accounts for the expanded program of technical assistance (EPTA), 1959
D. Audited accounts for the expanded program of technical assistance (EPTA), 1960
E. Audited accounts for the united nations special fund, 1960
F. Level of the working capital fund
G. Reimbursement of the working capital fund
H. Review of common salary scale for professional category staff and above
I. Education grant
J. Staff compensation plan
K. Staff assessment plan and tax equalization fund
L. Scale of contributions 1962-63
M. Contributions and advances by new member and associate members
N. Headquarters agreement with the government of the republic of Italy
O. Biennial budgeting
P. Amendment to financial regulation IV.4 (b)
Q. Amendment to financial regulation IV.5 (a)
R. Amendment to financial regulation v (contributions from non-member nations)
S. Publications revolving fund
T. Distribution of publications to member governments

A. Audited accounts for 1958-59

RESOLUTION No. 30/61

Audited accounts for 1958-59

505. The Conference considered and approved the audited accounts of the Organization for the financial period 1958-59 ended 31 December 1959 and of the European Commission for the Control of Foot-and-Mouth Disease for the year ended 31 December 1959, and the Report of the External Auditor thereon, as submitted by the Thirty -Fourth Session of the Council and adopted the following resolution:

THE CONFERENCE

Having examined the audited accounts for the Regular Program for the thirteenth financial period ended 31 December 1959 and the accounts of the European Commission for the Control of Foot-and-Mouth Disease for the year 1959 and the External Auditor's Report thereon,

Adopts the audited accounts for 1958-59 for the Regular Program and of the European Commission for the Control of Foot-and-Mouth Disease for 1959.

B. Audited accounts for 1960 - European commission for the control of foot-and-mouth disease

RESOLUTION No. 31/61

European Commission for the Control of Foot-and-Mouth Disease, Audited accounts for 1960

506. The Conference considered and approved the audited accounts for the calendar year 1960 of the European Commission for the Control of Foot-and-Mouth Disease, and the Report of the External Auditor as submitted by the Thirty -Fifth Session of the Council, and adopted the following resolution:

THE CONFERENCE

Having examined the audited accounts for the European Commission for the Control of Foot-and-Mouth Disease for the financial year 1960 and the External Auditor's Report thereon, Adopts the audited accounts for the above-mentioned period.

C. Audited accounts for the expanded program of technical assistance (EPTA), 1959

RESOLUTION No. 32/61

Audited account, EPTA 1959

507. The Conference considered and approved the audited accounts for the Expanded Program of Technical Assistance for the year 1959 and the Report of the External Auditor thereon, as submitted by the Thirty -Fourth Session of the Council and adopted the following resolution:

THE CONFERENCE

Having examined the audited accounts for the Expanded Program of Technical Assistance for the financial year 1959 and the External Auditor's Report thereon,

Adopts the audited accounts for the above-mentioned period.

D. Audited accounts for the expanded program of technical assistance (EPTA), 1960

RESOLUTION No. 33/61

Audited accounts, EPTA 1960

508. The Conference considered and approved the financial statements of the Expanded Program of Technical Assistance for the year 1960 and the Report of the External Auditor thereon as submitted by the Thirty -Sixth Session of the Council and adopted the following resolution:

THE CONFERENCE

Having examined the audited accounts for the Expanded Program of Technical Assistance for the financial year 1960 and the External Auditor's Report thereon,

Adopts the audited accounts for the above-mentioned period.

E. Audited accounts for the united nations special fund, 1960

RESOLUTION No. 34/61

Audited accounts, United Nations Special Fund 1960

509. The Conference considered and approved the audited accounts of the United Nations Special Fund for 1960 and the External Auditor's Report thereon as submitted by the Thirty -Sixth Session of the Council and adopted the following resolution:

THE CONFERENCE

Having examined the audited accounts for the United Nations Special Fund for the financial year 1960 and the External Auditor's Report thereon,

Adopts the audited accounts for the above-mentioned period.

F. Level of the working capital fund

510. The Conference considered the level of the Working Capital Fund in relation to the proposed level of the budget for 1962. The Conference noted that this matter had been considered by the Thirty -Fifth Session of the Council, which had agreed with the Finance Committee that the present time was not opportune to recommend an increase in the level of the Fund, particularly as the Council felt that further consideration should be given to the relationship between the contingency item in the budget and the use of the Working Capital Fund.

511. The Council, had, however, welcomed the Finance Committee's proposal to take up the question of the level of the Working Capital Fund at its first session in the forthcoming biennium.

512. At the same time, the Thirty -Fifth Session of the Council had also endorsed a recommendation of the Finance Committee that, until a new level of the Fund had been determined, the cash surplus in the General Fund for the financial period 1958-59 amounting to $ 56,925, which in accordance with Council Resolution No. 8/34 had been withheld from release and distribution' be retained until the Twelfth Session of the Conference had the opportunity of reviewing the Finance Committee's findings and the Council's comments on the size and use of the Working Capital Fund.

513. The Conference endorsed the recommendations of the Council and adopted the following resolution:

RESOLUTION No. 35/61

Level of Working Capital Fund

THE CONFERENCE

Noting that the Thirty -Fourth Session of the Council authorized the Director-General to withhold the release and distribution of the cash surplus of the financial period 1958-59 amounting to $ 56,925 until a decision was taken by the Conference on the level of the Working Capital Fund, and

Further noting that the Finance Committee will consider the level of the Working Capital Fund at its 1962 Session, and present proposals thereon,

Authorizes the Director-General, notwithstanding Financial Regulation 6.1 (b), to continue to withhold the release and distribution of the above-mentioned cash surplus until the Twelfth Session of the Conference.

G. Reimbursement of the working capital fund

Amount withdrawn for special program in Africa and disposal of food surpluses
Amount withdrawn to meet additional pension fund contributions

Amount withdrawn for special program in Africa and disposal of food surpluses

514. By Resolutions Nos. 1/34 and 3/34, the Council at its Thirty -Fourth Session authorized the Director-General to make withdrawals from the Working Capital Fond as follows:

515. The Conference agreed with the recommendations of the Thirty -Fifth Session of the Council that the amounts withdrawn should be reimbursed by Member Nations in accordance with the 1960-61 Scale of Contributions and that the following Member Nations not included in the 1960-61 Scale of Contributions should also be assessed at the rates indicated below, the small extra amount to be received in this respect to be added to the Working Capital Fund:

516. The Conference accordingly adopted the following resolution:

RESOLUTION No. 36/61

Reimbursement of Working Capital Fund

THE CONFERENCE

Noting that the Council by its Resolutions Nos. 1/34 and 3/34 authorized withdrawals from the Working Capital Fund of: i. up to $80,000 for certain preliminary work in regard to the utilization of food surpluses and noting that an actual withdrawal of 5 37,000 took place under this authorization, and ii. $200,000 for a Special Program in Africa,

Decides that the above withdrawals from the Working Capital Fund totalling $237,000 shall be reimbursed by assessing Member Nations in accordance with the 1960-61 Scale of Contributions; and

Further noting that certain Member Nations of FAO during 1960-61 were not included in the 1960-61 Scale of Contributions,

Decides that these Member Nations shall also be assessed in accordance with their contribution percentage for 1960-61 and that the amounts thus received will be added to the Working Capital Fund.

Amount withdrawn to meet additional pension fund contributions

517. The Thirty -Fourth Session of the Council, in Resolution No. 5/34, authorized the Director-General to withdraw $ 75,000 from the Working Capital Fund to meet in 1961 the additional contributions by the Organization to the United Nations Joint Staff Pension Fund, resulting from. a revision of pensionable remuneration which became effective on 1 April 1961.

518. In authorizing this withdrawal, the Council recommended the adoption of the Director-General's proposal that the withdrawn amount of $ 75,000 be reimbursed to the Working Capital Fund from the excess of Miscellaneous Income for 1960-61. The Conference agreed with the recommendation of the Council and adopted the following resolution:

RESOLUTION No. 37/61

Reimbursement of Working Capital Fund

THE CONFERENCE

Noting that the Council at its Thirty -Fourth Session authorized a withdrawal from the Working Capital Fund of $75,000 to meet the unbudgeted expenditure resulting from a revision of pensionable remuneration, and

Further noting that Miscellaneous Income in 1960-61 is expected to exceed substantially the original estimate,

Decides that, notwithstanding the provisions of Financial Regulations 5.2 (a) and 6.1 (b), an amount of $75,000 from the excess Miscellaneous Income of 196061 shall be used to reimburse the Working Capital Fund.

H. Review of common salary scale for professional category staff and above

Salary and emoluments of the director-general

519. The Conference recalled that the Director-General had reported already to the Tenth Session of the Conference on the action arising out of the recommendations of the Administrative Committee on Co-ordination to re-examine the basic salary scale of the staff in the Professional category and above. Since that time the International Civil Service Advisory Board had reviewed a study prepared by the Organizations adhering to the common system of salaries and allowances and had formulated recommendations. These recommendations led to the submission of proposals for a revised salary scale for the Professional category and above which the Secretary-General submitted to the General Assembly of the United Nations and the executive heads of the specialized agencies were submitting to their governing and legislative bodies, taking into account as well the recommendations of the Expert Committee on Post Adjustments. The Director-General presented the proposals in Document C 61/43. 37

520. The Conference noted that the Finance Committee and the Council had reviewed these proposals and recommended their adoption in FAO.

521. The Conference, appreciative of the equity and the administrative need of these measures, confirmed that there should be continued conformity with the policy established at its Sixth Session that the Organization should follow closely the United Nations in matters affecting salaries and allowances of staff, and endorsed the general principles of the joint proposals of the executive heads as submitted to the General Assembly. It approved, therefore, the following resolution, as recommended by the Council at its Thirty -Fifth Session:

RESOLUTION No. 38/61

Revision of salary scales of Professional category and above

THE CONFERENCE

Noting that proposals have been placed before the General Assembly of the United Nations concerning the revision of the salary scales for the Professional category staff and above,

Authorized the Director-General to introduce such a revision in FAO to the extent that it is approved by the General Assembly of the United Nations and with the same effective date as in the United Nations.

Salary and emoluments of the director-general

522. The Conference, noting that in conjunction with the proposed new salary scales for the Professional category and above a comparable adjustment in the salary and emoluments of the Director-General would be desirable, approved a net salary of $ 24,000 for the Director-General. This change, together with the revised salary of $19,500 approved by the Council for the Deputy Director-General, would become effective at the same time as the revision in the Professional scale, on the basis of a reclassification of Rome to "Class O "for post adjustment purposes, i.e. with neither plus nor minus adjustments. The new salary rates would remain subject to post adjustments in the same manner as the Professional salary scale.

523. In this connection the Conference noted that the wording of Rule XXXII.1 (b) of the General Rules of the Organization specified that the conditions of appointment of the Director-General were determined by the Conference "on the occasion of each appointment. "It also noted that the conditions of appointment of the Director-General are laid down in a contract signed by himself and by the Chairman of the Conference and that in accordance with the law of contracts the terms of such contract may be modified at any time by mutual agreement of the parties concerned. The Conference also came to the conclusion that the drafters of paragraph I (b) of Rule XXXII of the General Rules of the Organization had included the words "on the occasion of each appointment"in order to specify that the terms and conditions of appointment had necessarily to be considered at the time of appointment and not because it was intended to prevent the Conference from changing these conditions during the term of office of the Director-General should the circumstances so warrant.

524. In the circumstances the Conference decided to amend paragraph I (b) of Rule XXXII of the General Rules of the Organization by deleting the words shown in square brackets in the text below:

I. Education grant

525. The Conference, noting that the Thirty -Fifth Session of the Council had approved a revision of the formula governing the payment of the Education Grant, approved the following resolution:

RESOLUTION No. 39/61
Education Grant

THE CONFERENCE

Noting that the Council has approved a revision of the formula governing the payment of the Education Grant,

Noting that the Education Grant forms a part of the common system of remuneration of staff of the United Nations and the specialized agencies, and

Further noting that the same revision is being considered by the General Assembly of tire United Nations,

Authorizes the Director-General to introduce the revised terms of the Education Grant to the extent that they are approved by the General Assembly of the United Nations and with the same effective date as in the United Nations.

J. Staff compensation plan

526. The Conference adopted the following resolution:

RESOLUTION No. 40/61

Staff Compensation Plan

THE CONFERENCE

Noting that the United Nations and specialized agencies which follow the scheme of the common Staff Compensation Plan have agreed that certain awards under the Plan should be based on the new pensionable remuneration,

Noting that the Finance Committee recommended an amendment of the funding of the Plan in accordance with actuarial advice,

Decides to amend paragraph (iv) of Resolution No. 49/55 of the Eighth Session of the Conference to read:

527. The Conference also decided to delegate to the Council the administration of the Staff Compensation Plan in future.

K. Staff assessment plan and tax equalization fund

528. In considering the proposals of the Director-General in C 61/44 for the introduction in the Organization of a Staff Assessment Plan (already authorized in principle by the Fifth Session of the Conference) and of a Tax Equalization Fund comparable to that maintained by the United Nations, the Conference noted from the Report of the Thirty -Sixth Session of the Council that the Council and the Finance Committee had concurred that these steps were necessary and desirable in view of recent developments in personnel and pension fund administration.

529. The Conference agreed with the joint views of the executive heads of the organizations under the United Nations common system that it was essential, in connection with the revision of base salary scales for the Professional and higher categories, to look toward the adoption as early as possible of a common system of gross salaries and simultaneously of a common schedule of rates for staff assessment. The Conference also agreed on the desirability of adopting a Tax Equalization Fund. However it considered that the timing of the introduction of the Tax Equalization Fund should be left to the judgment of the Director-General, depending on the relative advantages which would derive from such a plan in absorbing the impact of any national income tax which may be levied on the remuneration paid to staff members by the Organization. The Conference further agreed that the Staff Assessment Plan should be introduced in any case not later than I January 1964.

530. The Conference noted the observations of the Finance Committee that while both the Staff Assessment Plan and the Tax Equalization Fund would require certain modifications in budgetary presentation, there would be no effect on the net amount of contributions payable by Member Nations except where a Member Nation levied tax on the remuneration paid to staff members by FAO. In such a case, the credits of the Member Nations in the Fund would be reduced correspondingly.

531. The Conference approved following resolution, recommended by the Council:

RESOLUTION No. 41/61

Staff Assessment Plan and Tax Equalization Fund

THE CONFERENCE

Agreeing with the Director-General's intention of adopting, as of I January 1964 (or as of another earlier date depending on action taken by the United Nations General Assembly with respect to salaries and related matters), a system of gross salaries rather than net salaries, and of introducing the staff assessment scheme already authorized in principle by the Fifth Session of the Conference,

Approves the adoption by the Organization of the same schedule of staff assessment rates and the same basis of application of those rates, as are approved by the General Assembly of the United Nations for United Nations staff:

Authorizes the establishment of a Tax Equalization Fund to which will be credited income from the Staff Assessment Plan and from which credits will be provided against the contributions assessed to Member Governments, on the same basis as applies in principle in the United Nations;

Authorizes the Director-General to determine, in the light of action by the United Nations and other agencies under the common system and of other pertinent developments, whether the Staff Assessment Plan and the Tax Equalization Fund (or the Staff Assessment Plan alone) shall be placed into effect as of I January 1964, or as of such earlier date after the General Assembly has acted as the Director-General considers that it will be technically feasible to put both these measures (or the Staff Assessment Plan alone) into operation;

Authorizes the Director-General to place the Tax Equalization Fund into effect at a later date than the Staff Assessment Plan in which case income from the Staff Assessment Plan will be credited during the intervening period to Miscellaneous Income and the assessed contributions of the Member States determined accordingly;

Directs that if, as a result of action by the Director-General in line with this Resolution, changes are required in the budget for 1962-63, such changes shall be subject to review by the Finance Committee and approval by the Council;

Directs further that the detailed implementation of the Staff Assessment Plan and the Tax Equalization Fund, and the appropriate related amendments required in the Financial Rules, be reviewed by the Director-General with the Finance Committee;

Decides that the gross salary system and the Staff Assessment Plan should be applicable to Headquarters, Regional Office and field project personnel charged to trust funds or other funds outside the Regular Program budget, but that such income from Staff assessment should be credited to the fund concerned;

Decides that for General Service staff the Director-General should determine the specific date of application to such staff of the gross salary and staff assessment provisions, on the basis of the particular circumstances in each locality,

Requests that the Finance Committee examine periodically with the Director-General the consequences and implications of these measures in the light of the Organization's experience and of the action taken by the United Nations and other agencies under the common system.

L. Scale of contributions 1962-63

532. The Conference examined the proposed Scales of Contributions for the biennium 1962-63 which the Thirty -Fifth Session of the Council had submitted for its consideration. The Conference also had before it a scale derived from the proposed United Nations Scale for 1962, 1963 and 1964 (United Nations General Assembly document, Sixteenth Session, Supplement No. 10, A/4775). The Conference again recognized that the United Nations Committee on Contributions is the most qualified body for assessing Member Governments' ability to pay as well as all the other factors entering into the computation of an equitable Scale of Contributions. The Conference considered that, as this body had been responsible for the preparation of the United Nations proposed scale for 1962, 1963 and 1964, it would be logical to base the FAO Scale on the latest information available and so avoid having the FAO Scale out of line with the United Nations Scale for the next biennium.

533. The Conference consequently adopted the following resolution:

RESOLUTION NO. 42/61

Scale Of Contributions 1962 63

THE CONFERENCE

Having considered the reports of the Finance Committee and of the Thirty -Fifth Session of the Council,

Noting that the United Nations Committee on Contributions had recommended a new United Nations Scale of Contributions for 1962, 1963 and /964 based on the most recent evaluation of the Member Governments' ability to pay, which Scale also includes the assessments for 21 Member Nations which in the meantime have joined FAO,

Decides, notwithstanding Resolution No. 42/55 of the Eighth Session of the Conference, to adopt for use in 1962 and 1963 the Scale of Contributions set out in Appendix G which is derived from the proposed United Nations Scale of Contributions for 1962, 1963 and 1964.

M. Contributions and advances by new member and associate members

Advance of new pull members to the working capital fund

534. In accordance with the provisions of Article XVIII.3 of the Constitution, Rule XIX.3 of the General Rules of the Organization and Financial Regulation VI.2 (b) (iii), the Conference decided that the additional contribution for 1961 from the following Associate Members that have become full Members - Chad, Gabon, Madagascar, Mali and Senegal - shall be $ 369.02. This represents the difference between the full contribution of 0.04 percent and the Associate Membership contribution of 0.024 percent for the last quarter of 1961.

535. In accordance with the provisions of the same Article, Rule and Financial Regulation, the Conference decided that the contribution to be paid by the newly-admitted Member Nations for the year 1961 shall be as follows:

536. Again, in accordance with the same Article, Rule and Financial Regulation referred to in paragraph 534 above, the Conference decided that the contributions from the following new Associate Members - British Guiana, Jamaica, Mauritius and Tanganyika - shall be $ 550.

Advance of new pull members to the working capital fund

537. Based on the adopted Scale of Contributions the advances of the new Member Nations to the Working Capital Fund are as follows:

N. Headquarters agreement with the government of the republic of Italy

538. The Conference took note of the need for certain amendments to be made in the Headquarters Agreement between the Organization and the Government of the Republic of Italy, to provide for the extension of the Extra-Territorial Zone of Headquarters made necessary not only to afford extra-territoriality in respect of the construction of the third wing to the present buildings, but also to extend the present boundary delimitations so as to enable the extended compound to be enclosed in a suitable manner.

539. The Conference also noted that a Boundary Commission had been set up comprising members of the appropriate Italian authorities and representatives of the Organization and that it is hoped to finalize the amendments to the Headquarters Agreement during 1962.

540. Since the Conference only meets again at the end of 1963, it authorized the Council to ratify the amended Headquarters Agreement when the present negotiations have been completed.

O. Biennial budgeting

541. The Conference took note of the Director-General's report on the experience gained in the operation of the biennial budgeting system. It also noted the views of the Finance Committee that the biennial budgeting system is working satisfactorily from all points of view.

P. Amendment to financial regulation IV.4 (b)

542. The Conference considered the methods of budgeting for Allowances and was of the opinion that the current procedure should be continued, since it permitted the inclusion in the several chapters of an important element of their costs.

543. It recalled that the Tenth Session of the Conference had endorsed the procedure long in force in the Organization whereby the Director-General transferred Allowances from chapter to chapter on his own authority. This endorsement was included in the budget resolution for 1960-61 (Resolution No. 53/59)

544. The Conference decided to give formal recognition to the practice and adopted 39 a new financial regulation as follows:

(new wording underlined)

Q. Amendment to financial regulation IV.5 (a)

545. The Conference noted that the Council at its Thirty -Fifth Session (C 61/39) 40 had given thorough and exhaustive consideration to the relationship of Financial Regulation 4.5 (a) and General Rule XXIV.3 (k), on the relative authority of the Council and of the Director-General in respect of the creation of new posts.

546. The Conference concurred in the view of the Council that the relationship between the two provisions had been correctly interpreted in a statement by the Chairman of the Finance Committee as follows:

547. The Conference also approved, as recommended by the Council, that Financial Regulation 4.5 (a) should be amended as follows so as to remove a textual ambiguity (the words between square brackets to be deleted and the words underlined to be added):

R. Amendment to financial regulation v (contributions from non-member nations)

548. The Conference adopted the following resolution:

RESOLUTION No. 43/61

Contributions from Non-Member Nations (Commodity groups and Article XIV bodies)

THE CONFERENCE

Considering the amendment which the Tenth Session of the Conference made to the Statement of Principles governing conventions and agreements, commissions and committees, by the insertion of a provision in paragraph 32 of the Statement of Principles, to the effect that non-Member Nations of the Organization that become members of Commodity study groups or of bodies established by conventions or agreements concluded under Article XIV of the Constitution shall ordinarily be required to contribute toward the expenses incurred by the Organization with respect to the activities of these groups or bodies,

Having examined the draft amendment to the Financial Regulations which the Thirty -Sixth Session of the Council submitted to the Conference at the request of the latter,

Decides to amend Financial Regulation V by the insertion of the following provision to be numbered paragraph 9, the present paragraph 9 being renumbered 10:

(Adopted 23/11/1961)

S. Publications revolving fund

549. The Conference adopted the following resolution:

RESOLUTION No. 44/61

Publications Revolving Fund

THE CONFERENCE

Approves the Budget for the 196263 biennium for the Publications Revolving Fund as presented by the Director-General and contained in Annex XII to the 1962-63 Program of Work and Budget (Document C 61/3) including an allocation not exceeding $15,000 for sales promotion purposes in the biennium 1962-63.

T. Distribution of publications to member governments

550. While in principle accepting the Director-General's proposal in Document C 61/45 that hereafter a formula based upon percentage of contribution should be used to determine Member Nations' maximum entitlements to copies of FAO priced publications, the Conference decided, before this is fully applied, to ask the Director-General to make a systematic study of the distribution to and use of publications in member countries.

551. Pending a report to its Twelfth Session upon such a survey, the Conference decided to apply the new formula, so as to give some increase, in respect only of Member Nations paying contributions of 0.25 percent or less, while continuing the 1960-61 quotas for the others.

552. The proposal was endorsed to continue procedures already associated with the quota system as follows:

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