Contents -
C. Budget for the third financial year (1948)
Introductory Statement of the Committee on Financial Control
1. General
In considering the draft budget for 1948, the Committee was aware of the many difficult problems associated with the preparation for the first time of a detailed budget for a new international organization. While it has obviously been impossible to refer to previous experience, a number of decisions, necessarily more or less provisional, have had to be taken regarding the content, scope, and form of the budget.
The preliminary draft submitted to the Committee was the first attempt at making a Financial appraisal of the requirements of the Organization at a time when it is still in a development stage. Although the Committee felt that the form of presentation of the preliminary draft budget was not entirely satisfactory, it realized that a few years must elapse before, concurrently with the development of the Organization, a completely adequate presentations will be developed.
2. Expenditure
Being conscious of the present difficult Financial world situation, and in the desire to avoid increasing the contributions of member governments, the Committee reduced the preliminary estimates submitted by the Director-General from the proposed total of $5,317,931 to $5,000,000. In doing so, it endeavored to obtain the fullest possible information on the actual detailed requirements in order to make the maximum amount available for the substantive program of the Organization.
The Committee gave detailed examination to administrative and program casts, and was pleased to note the detailed budget as presented to the Conference, with all relevant justifications will be found in Document C47/9. the endeavors of the administration to reduce such casts. It drew attention, however, to the operation and maintenance expenses involved in the occupancy by FAO Headquarters of six different buildings, and hopes that it will be possible within the near future to obtain suitable accommodations in one single building.
The Committee made a careful review of the establishment and procedures of the Organization, and its comments on these matters are set forth in paragraph 7 of the Report of the Committee on Financial Control to the Third Session of the Conference (Document C47/9).
Certain modifications of the preliminary draft budget were suggested by the Committee. The budget as now submitted incorporates these modifications, and the Committee recommends its adoption by the Conference.
The Committee, in discussing the relationship between the work program of FAO and the limited funds available for its consummation, was aware that the First and Second Sessions of the Conference had already recommended a program which, even with unlimited funds, could be completed only after scores of years The Committee therefore wishes to stress the need for reappraisal of the urgency and importance of the many problems with which the Organization has been called upon to deal and for a determination of a priority of action in relation thereto. The Conference should study carefully the programs of action submitted by the Director-General and, in light of their Financial implications, make appropriate recommendations thereon.
In view of these limitations, the technical, divisions will not be in a position to employ all the highly-specialized experts needed for the variety of tasks eon fronting them. The Committee therefore feels that divisional staffs should he rather small, and that they should include officers of firsts lass general abilities capable of adapting themselves readily to changing assignments of varying character. Such officers should be skilled in securing from outside bodies specialized technical information and in correlating and adapting such information to the best use of member governments.
3. Income
As will be seen in the report of the Committee on Financial Control (Document C47/9), the Committee decided to recommends that the scale of member contributions should provisionally be retained as such. As will be seen on page 2 of the budget (Document C47/8), this scale of contributions totals $4,488,000, leaving therefore a deficiency of $512,000, to be partly offset by miscellaneous receipts. This situation results from the practice of reserving percentages of contributions for potential new members.
In order to cover this deficiency, and as a purely temporary expedient consistent with the draft Regulations to cover the Working Capital Fund proposed in paragraph 3 of its report to the Conference (Document C47/9), the Committee recommends that an allocation of $508,000 be reappropriated to the Third Year's income Budget out of the amount of $557,400 allocated to the Working Capital Fund under the budget of the Second Financial Year. This reappropriation would naturally- be reduced insofar as new members might be admitted by the forthcoming Conference.
4. Unforeseen Contingencies,
Because of currently existing food and Agriculture, problems, FAO may be called upon in 1948 to undertake commitments of an unforeseen emergency nature. The Organization has to carry out both normal and emergency obligations throughout any fiscal year without access to supplementary budget appropriations or other sources of income Its only recourse is to the Contingencies appropriation in the current budget. The Committee is of the opinion that in the event of such emergencies arising, FAO should not be faced with the impossibility of Acting beyond the means available in a Contingencies item on which requirements may be heavy.
While the Committee is reluctant to recommend any Special measures to meet the situation, it sees no other alternative than to suggest that the following be included in the resolution to be considered by the Conference when it adopts the budget for the Third Financial year:
"In the event that urgent and extraordinary emergencies arise during 1948 which were not f foreseen when the budget was authorized, and which in the judgment of the Director-General and the Executive Committee (or other body replacing it in the exercise of the functions of the Conference between its Sessions) require the expenditure of funds by FAO prior to the next session of the Conference, and that such funds cannot be supplied from the appropriation for Contingencies in the budget or by curtailment of the current budget program, the Executive Committee (or the body replacing it) shall have power during the Third Financial Year to approve an increase of the Contingencies appropriation to cover such emergency requirements and to make available to the Director-General, upon request, from the Working Capital Fund, such sums as may be required to Finance or aid in financing them, provided that no such authorization shall be granted if its effect would be to reduce the Working Capital Fund to an aggregate sum of less than $1,500,000."
BUDGET FOR THE THIRD FINANCIAL YEAR ENDING 31 DECEMBER 1948
INCOME |
|
Net amount to be borne by members of the Organization |
$4,520,500 |
Work covered by Special Grants (United Nations Belief and Rehabilitation Administration) |
(ad memoria) |
Miscellaneous receipts: |
|
Sale of publications |
$1,000 |
Interest |
2,500 |
Miscellaneous receipts |
500 |
4,000 |
|
Reallocation from the appropriation to the Working Capital Fund for the Second Financial Year |
1 475,500 |
$5,000,000 |
1
EXPENDITURE |
|
Ordinary expenditure |
$5,000,000 |
Work covered by special grants |
(ad memoria) |
$5,000,000 |
INCOME BUDGET-THIRD FINANCIAL YEAR
Schedule of Contributions
Member Countries |
Amount ($) |
Austria |
2,500 |
Australia |
125,000 |
Belgium |
70,500 |
Bolivia |
11,000 |
Brazil |
130,000 |
Canada |
190,000 |
Chile |
43,000 |
China |
325,000 |
Colombia |
26,500 |
Cuba |
26,500 |
Czechoslovakia |
77,000 |
Denmark |
34,000 |
Dominican Republic |
2,500 |
Ecuador |
2,500 |
Egypt |
65,000 |
El Salvador |
2,500 |
Finland |
5,000 |
France |
284,500 |
Greece |
21,000 |
Guatemala |
2,500 |
Haiti |
2,500 |
Honduras |
2,500 |
Hungary |
7,500 |
Iceland |
2,500 |
India and Pakistan1 |
212,500 |
Iraq |
16,500 |
Ireland |
53,000 |
Italy |
106,000 |
Lebanon |
2,500 |
Liberia |
2,500 |
Luxembourg |
2,500 |
Mexico |
70,000 |
Netherlands |
76,000 |
New Zealand |
43,000 |
Nicaragua |
2,500 |
Norway |
34,000 |
Panama |
2,500 |
Paraguay |
2,500 |
Peru |
26,500 |
Philippine Republic |
13,500 |
Poland |
65,500 |
Portugal |
43,000 |
Siam |
15,000 |
Switzerland |
90,000 |
Syria |
10,000 |
Union of South Africa |
86,500 |
United Kingdom and Burma1 |
750,000 |
United States of America |
1,250,000 |
Uruguay |
22,000 |
Venezuela |
22,000 |
F.P.R. of Yugoslavia |
39,000 |
Total |
4,520,500 |
1 Pakistan having been admitted to membership, it was decided by the Conference that the Indian contribution for the Third Financial Year should be divided between both countries, the respective shares to be determined by agreement between them.
The same solution was adopted in the case of Burma and the United Kingdom. Here again, it applies only to next year.
EXPENDITURE ESTIMATES FOR THE THIRD FINANCIAL YEAR-1948
Budget Summary by Chapters
Chapter |
1946 Actual Expenditure |
1 1947 Budget Estimates |
1948 Budget Estimates |
I. Session of the Conference, Meetings of Committees, and technical, Conferences |
$ 323,851 |
$ 240,000 |
$ 315,603 |
II. Technical, Missions |
18,670 |
100,000 |
200,000 |
III. Salaries and Allowances |
568,938 |
2,622,500 |
2,748,880 |
IV. Staff Provident Fund |
33,806 |
294,000 |
330,000 |
V. Official Travel |
90,168 |
200,000 |
200,000 |
VI. Office and Operational Expenses |
186,408 |
454,500 |
393,400 |
VII. Printing |
44,075 |
220,000 |
237,117 |
VIII. Contingencies |
123,357 |
917,000 |
2 575,000 |
Total |
$1,389,273 |
$5,048,000 |
$5,000,000 |
1 The Executive Committee at its seventh session approved a plan of expenditure for 1947 in conformity with the recommendations of the Second Session of the Conference.
2 The Conference adopted a resolution amending the budget as presented for approval by increasing the appropriation under Chapter I from $290,603 to $315,603 and reducing the provision under Chapter VIII (Contingencies) from $600,000 to 575,000.
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS EXPENDITURE BUDGET-THIRD FINANCIAL YEAR
(By Program)
Salaries |
Meetings |
Travel |
Printing |
Total |
1948 Compared with 1947 |
||||||||||||
|
1947 |
1948 |
1947 |
1948 |
1947 |
1948 |
1947 |
1948 |
1947 |
1948 |
Increase |
Decrease |
|||||
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||
Director-General and Staff |
56,850 |
56,850 |
17,600 |
15,296 |
74,450 |
72,146 |
2,304 |
||||||||||
Senior Executive Officer |
25,700 |
23,455 |
8,000 |
7,550 |
33,700 |
31,005 |
2,695 |
||||||||||
Regional Advisers and their Assets |
106,800 |
107,175 |
14,000 |
120,800 |
107,175 |
13,625 |
|||||||||||
Common Program and Technical Services: |
|||||||||||||||||
Inter-Divisional Co-ordination |
11,350 |
26,555 |
950 |
1,968 |
12,300 |
28,523 |
16,223 |
||||||||||
External Relations - Governments |
22,700 |
22,495 |
4,000 |
8,540 |
26,700 |
31,035 |
4,335 |
||||||||||
External Relations - UN and Internal Org. |
13,600 |
13,695 |
2,800 |
6,264 |
16,400 |
19,959 |
3,559 |
||||||||||
Secretariat - Conference and Exec. Comm. |
9,500 |
9,600 |
1,800 |
3,940 |
11,300 |
13,540 |
2,240 |
||||||||||
Documents and Languages Branch |
194,190 |
157,525 |
450 |
690 |
194,640 |
158,215 |
36,425 |
||||||||||
Library |
49,350 |
42,440 |
49,350 |
42,440 |
6,910 |
||||||||||||
Technical Divisions: |
|||||||||||||||||
Agriculture |
232,210 |
203,805 |
38,000 |
35,375 |
12,000 |
18,320 |
31,270 |
30,900 |
313,480 |
288,400 |
25,080 |
||||||
Economics, Marketing, and Statistics |
600,000 |
581,340 |
22,000 |
28,195 |
48,000 |
31,402 |
50,316 |
75,040 |
720,316 |
715,977 |
4,339 |
||||||
Fisheries |
147,200 |
139,590 |
17,600 |
17,600 |
12,000 |
16,390 |
7,550 |
22,785 |
184,350 |
196,365 |
12,015 |
||||||
Forestry and Forest Products |
185,350 |
185,207 |
18,400 |
24,576 |
30,400 |
28,426 |
46,590 |
51,650 |
280,740 |
289,859 |
9,119 |
||||||
Information |
154,600 |
148,430 |
5,400 |
20,000 |
19,296 |
47,969 |
21,450 |
227,969 |
189,176 |
38.793 |
|||||||
Nutrition |
150,000 |
148,465 |
24,900 |
26,183 |
8,000 |
12,716 |
1,350 |
15,425 |
184,250 |
202,789 |
18,539 |
||||||
Rural Welfare |
50.000 |
50,000 |
3,140 |
6,660 |
12,420 |
50,000 |
72,220 |
22,220 |
|||||||||
Officers for Regional Work Service |
140,000 |
140,000 |
140,000 |
||||||||||||||
I.E.F.C. |
194,000 |
3,200 |
197,200 |
197,200 |
|||||||||||||
Administrative Services: |
|||||||||||||||||
Budget and Finance |
49,925 |
51,230 |
1,000 |
1,550 |
50,925 |
52,780 |
1,855 |
||||||||||
Personnel |
36,350 |
41,585 |
1,500 |
1,840 |
37,850 |
43,425 |
5,575 |
||||||||||
Internal Services - Office Management |
275,930 |
202,140 |
1,500 |
1,890 |
34,955 |
312,385 |
204,030 |
108,355 |
|||||||||
Document Distribution and Sales |
17,300 |
22,105 |
17,300 |
22,105 |
4,805 |
||||||||||||
Reserve |
13,700 |
25,000 |
12,800 |
17,262 |
7,447 |
26,500 |
49,709 |
23,209 |
|||||||||
TOTAL |
$2,582,905 |
$2,373,687 |
$140,000 |
$160,069 |
$200,000 |
$200,000 |
$220,000 |
$237,117 |
$3,142,905 |
$2,970,873 |
|||||||
Estimated Savings, unfilled posts (deduct) |
517,905 |
517,905 |
517,905 |
||||||||||||||
TOTAL |
$2,065,000 |
$2,373,687 |
$140,000 |
$160,069 |
$200,000 |
$200,000 |
$220,000 |
$237,117 |
$2,625,000 |
$2,970,873 |
|||||||
Undistributed Items: |
|||||||||||||||||
Sessions of Conferences and Committees |
100,000 |
155,534 |
55,534 |
||||||||||||||
Technical Missions |
100,000 |
200,000 |
100,000 |
||||||||||||||
Allowances, Temporary Appointment, etc. |
557,500 |
375,193 |
182,307 |
||||||||||||||
Staff Provident Fund |
294,000 |
330,000 |
36,000 |
||||||||||||||
Office and Operational Expenses |
454,500 |
393,400 |
61,100 |
||||||||||||||
Contingencies |
917,000 |
575,000 |
342,000 |
||||||||||||||
Total (Increase and Decrease) |
$973,133 |
$1,021,133 |
|||||||||||||||
TOTAL |
$5,048,000 |
$5,000,0000 |
48,000 |
Contents -