Contents
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E. Amendments to financial regulations IV, VIII, IX, X, XI and XIV and to Rule XXXII GRO
A. Common Financial Regulations on Custody of Funds, Investment of Funds and Delegation of Authority
REGULATION VIII
Custody of Funds
8.1 The Director-General shall designate the bank or banks in which [ the ] funds in the custody of the Organization shall be kept [ and report all such depositories to the Finance Committee].
REGULATION IX
Investment of Funds
9.1 The Director-General may [make short-term investments of ] invest moneys not needed for immediate requirements [...], seeking, wherever practicable, the advice of the United Nations Investments Committee. The investment of moneys standing to the credit of any trust fund, reserve or special account shall be subject to any directives of the appropriate authority. [The Director-General may make long-term investments of moneys standing to the credit of Trust, Reserve or Special Funds as may be provided by the Conference or the Council in respect of each fund. The Director-General shall report to the Finance Committee periodically on any such investments.]
[9.2 The Director-General may, wherever practicable, seek the advice of the United Nations Investments Committee on such investments.]
9.2 At least once a year the Director-General shall include in the financial statements submitted to the Finance Committee a statement of the investments currently held.
9.3 Income from investments shall be credited to the fund or account from which the invested moneys derive unless otherwise provided in the regulations, rules or resolutions relating to that fund or account.
REGULATION XIV
Delegation of Authority
14.1 The Director-General may delegate to other officers of the Organization such authority [ of his powers ] as he considers necessary for the effective implementation of these Regulations.
B. Common Financial Regulations on Internal Control and The Accounts
REGULATION X
Internal Control
10.1 The Director-General shall:
(a) [in consultation with the Finance Committee] Establish detailed financial rules and procedures in order to ensure:
- (i) effective financial administration and the exercise of economy [;], and
- (ii) effective custody of the physical assets of the Organization;
(b) Except where advance or progress payments are specifically provided for in the contract, as may be required by normal commercial practice and the interests of the Organization, [cause] ensure that all payments [to be] are made on the basis of supporting vouchers and other documents which [ensure] show that [the] services or goods have been received [and that payment has] and have not previously been [made] paid for;
(c) Designate the officers who may receive moneys, incur commitments or obligations, and make payments on behalf of the Organization;
(d) Maintain an internal financial control and internal audit which shall provide [for] an effective current examination and/or review of financial transactions in order to ensure:
(i) the regularity of the receipt, custody, and [disposal] disbursement of all funds and [financial] other resources of the Organization;
(ii) the conformity of commitments or obligations and expenditures with the appropriations or other financial provisions voted by the Conference, or with the purposes, [and] rules and provisions relating to [Trust and other Special Funds]; the fund concerned, and
(iii) the economical use of the resources of the Organization.
10.2 [No] Commitments or obligations shall not be incurred and payments shall not be made [until allotments or other] unless an appropriate authorization[s] [have] has been made in writing under the authority of the Director-General.
10.3 The Director-General may [,under exceptional circumstances,] make such ex gratia payments as he deems to be necessary [in the interest[s] of the Organization, provided that]. A statement of such payments shall be submitted with the [annual] final and interim accounts.
[10.4 The Director-General shall make suitable arrangements under which the Organization will be protected against loss on account of the conduct of officials who may be entrusted by him with the custody and disbursement of funds of the Organization ]
10.4 [10.5] The Director-General may, after full investigation, authorize the writing-off of losses of cash, [stores, and] supplies, equipment and other assets, other than arrears of contributions [provided that a statement of all such amounts written off shall be submitted to the auditors with the interim or final accounts J. 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.
10.5 [10.6] The Director-General shall establish [detailed] rules [governing tenders to be invited by advertisements or other methods and procedures] for the procurement of equipment, supplies and other requirements:[.], including rules governing the invitation of tenders.
REGULATION XI
The Accounts
11.1 The Director-General shall maintain such accounts as are necessary and shall prepare [interim accounts at the end of the first calendar year of the financial period and] final accounts [at the end of the] for each financial period [.] showing: [Both the interim and final accounts shall show:]
(a) The income and expenditure of all funds;
(b) The status of appropriations, including:
(i) the original budget appropriations;
(ii) any supplementary appropriations;
(iii) [ii] the apropriations as modified by any transfers
(iv) [iii] credits, if any, other than the appropriations voted by the Conference, and [;]
(v) [iv] the amounts charged against [those]: the appropriation and [] or] against any other credits [;].
(c) [the assets and liabilities of the Organization.] Statements of assets and liabilities at the close of the financial period.
He shall also rive such other information as may be [appropriate] necessary to indicate the current financial position of the Organization.
[11.2] The accounts of the Organization shall be presented in United States dollars. The account books may be kept in such currency or currencies as the Director-General may deem necessary. The Director-General shall include in the interim or financial accounts information on currency collection and utilization.]
11.2 Besides the final accounts for the financial period, the Director General shall prepare interim accounts at the end of each of the intervening years.
11.3 Appropriate separate accounts shall be maintained [for] in respect of all Trust, Reserve, and other special funds.] trust funds, reserves and special accounts.
[11.4 The Director-General shall provide the Finance Committee and Council, as of 31 March and 30 September, with statements showing the financial position of the Organization. In addition, the Director-General shall present at each session of the Finance Committee and Council statements showing the current financial position.]
11.4 The final and 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 interim accounts for the first calendar year of the financial period shall be submitted by the Director-General to the external auditor by 31 March following the end of the calendar year.]
11.5 The final and interim accounts shall be submitted to the External Auditor not later than 31 March following the end of the period to which they relate
[11.6 The final accounts for the financial period shall be submitted by the Director-General to the external auditor by 31 March following the end of that financial period .]
C. Deletion
REGULATION IV
Appropriations
4.4(b) (iii) ["Notwithstanding the provisions of Financial Regulation 4.4(b)(i) and (ii) above, the Director-General may effect on his own authority between-chapter transfers of Allowances articles"]
D. Amendments to Rule XXVII-7 of the General Rules of the Organization
"7. The Finance Committee ..................... shall have, in particular, the following functions:
(i) [to consult with the Director-General and review his reports on the short- and long-term investments referred to in Financial Regulations 9.1] to consider reports on investments submitted by the Director-General in accordance with Financial Regulation 9.2, and to keep the Organization's investment policy under review,
"(1) to examine, on behalf of the Council, the audited accounts of the Organization, to review, in consultation with the Director-General reports [submitted by the Director-General, in accordance with Financial Regulation 11.4, consult with him] on the current financial position of the Organization submitted by the Director-General, and to report [annually] to the Council on these matters."
"(o) to examine [and approve] the report of the external auditor and to report to the Council on matters involving policy issues."
"(q) [to consult with the Director-General on, and] to keep under review, and consider any amendments to, the detailed financial rules and procedures referred to in Financial Regulation 10.1(a)."
F. Extract from report of sixty-first council session
Scale of Contributions 1974-75
141. The Council recalled that, at its Sixtieth Session, it had reviewed document CL 60/8 which had already been considered by the Twenty-Ninth Session of the Finance Committee (April 1973). The document summarized the provisions of the FAO Basic Texts and Conference decisions regarding the establishment of the FAO Scale of Contributions in past biennia, and also contained the text of three recent resolutions adopted by the UN General Assembly relating to the UN Scale of Assessments for 1974 and onwards. These Resolutions were reproduced in Appendix J to the Report of the Sixtieth Council Session.
142. The Council recalled that, because of the many unknowns existing at the time of the Finance Committee's Twenty-Ninth Session, the Committee had deferred making any recommendations to the Sixtieth Session of the Council on the Scale of Contributions to be adopted for 1974-75. The Committee had decided instead to return to this question at its Thirtieth Session by which time further information, including the Report of the UN Committee on Contributions, might be available.
143. With regard to the basis of the FAO Scale, the Council, in considering the Report of the Thirtieth Session of the Finance Committee, recalled that the Eighth Session of the Conference (1955) had considered 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 in the computation of an equitable scale of contributions."
and that, by Resolution 42/55, the Eighth Session of the Conference had also decided that the FAO Scale of Contributions would, in future, he derived directly from the Scale of Assessments as in force during the calendar year of the UN Conference Session, and would be applicable to the two following fiscal years.
144. Some members proposed that it would he more appropriate for the Organization to develop its own Scale of Contributions hearing in mind the situation of the developing countries and the special role FAO had to play with regard to them, rather than basing its Scale on that of the United Nations. This procedure, it was suggested, would be compatible with the objectives set out in the Preamble to the Constitution of the Organization.
145. The Council, however, agreed that the FAO Scale of contributions should continue to he derives from the UN Scale of Assessments. It recognized that the UN Scales, as recommended by the committee on Contributions and as adopted by the General Assembly, took into account the wishes of Member Governments concerning the various problems and difficulties involved in the computation of equitable Scales and that, as such, the UN Scale represented the most suitable basis for determining FAO Scales of Contributions. This method of establishing the FAO Scale of Contributions was also consonant with past recommendations of the UN General Assembly and ECOSOC that the Specialized Agencies bring their Scales into harmony with the United Nations Scale.
146. In view of the foregoing, the Council took note of the possible FAO Scale of Contributions for 1974-75 which had been derived from the UN Scale of Assessments in force in 1973 and which was attached as Appendix P to the Report of the Thirtieth Session of the Finance Committee.
147. The Council, however, recalled that the Conference in adopting Scales for the 1956-57, 1958-59 and 1962-63 biennia had, because of substantial changes in the membership of the United Nations, decided to base those Scales on the UN Scale of Assessments for the calendar years following that of the Conference Session.
148. The Council, recognizing that the proposed UN Scale of Assessments for 1974-76 reflected not only substantial changes in membership in that Organization but also important modifications arising from the implementation of the three General Assembly resolutions referred to in para. 141 above, concurred with the Finance Committee that in the circumstances, it would be appropriate to base the FAO Scale of Contributions for 1974-75 on the UN Scale for 1974-76.
149. As to the basis of preparing the United Nations Scale itself, the Council noted the summary contained in para.11 of Appendix P to the Report of the Thirtieth Session of the Finance Committee
150. It further noted from pare. 8 of Appendix Q to the same Report, that the UN Committee on Contributions in preparing the proposed UN Scale of Assessments for 1974-76 had changed "the elements of the low per capita income allowance formula so as to adjust it to the changing world economic conditions" as requested in UN General Assembly Resolution 2961 C (XXVII) referred to in para.141 above.
151. The Council then considered the questions of principle arising from General Assembly Resolutions 2961 B and D (XXVII), also referred to in para.141 above, namely:
(a) whether, in principle, the maximum rate of contribution should be reduced to 25 percent as was to be the case in the United Nations as a consequence of UN General Assembly Resolution 2961 B (XXVII) of 13 December 1972;
(b) whether it would be appropriate that the minimum rate of assessment in FAO, for 1974 and onwards, be reduced from 0.04 percent to 0.02 percent as was to be the case in the United Nations as a consequence of UN General Assembly Resolution 2961 P (XXVII) of 13 December 1972.
152. The Council concurred with the following recommendations of the Thirtieth Session of the Finance Committee with regard to these questions of principle:
(a) that, as a matter of principle, the maximum contribution of any one Member Nation shall not exceed 25 percent of the total. On no account however should the percentage contributions of present Member Nations he increased over their present rates of assessment as a consequence of reducing the rate of assessment of the maximum contributor;
(b) that new assessments appearing in the FAO Scale for 1974-75 and future biennia, (over and above those members assessed in the 1972-73 Scale of Contributions as adopted by the Sixteenth Session of the Conference) be utilized to the extent necessary to reduce to 25 percent the percentage contribution of the Member Nation paying the maximum contribution.
(c) that the minimum rate of assessment of Member Nations in the FAO Scale of Contributions should henceforth he 0.02 percent compared to the present 0.04 percent. As heretofore the coefficient to allow for differences in membership between the UN and FAO should be applied to all rates of assessment other than the minimum and maximum rates.
153. The Council then examined the Scale of Contributions for 1974-75 recommended by the Thirtieth Session of the Finance Committee which reflected the principles recommended above. This Scale is based on the UN Scale of Assessments proposed by the UN Committee on Contributions for 1974-76.
154. The Council noted that the rate of assessment of the maximum contributor was reduced to 25 percent in application of Recommendations (a) and (b) contained in para. 152 above. This reduction was achieved without consequential increases in the present rate of assessment of other Member Nations.
155. It further noted that all Members now assessed at the present minimum rate of 0.04 percent would he assessed at 0.02 percent in the new FAO Scale as a consequence of Recommendation (c) in para. 152 above.
156. In conclusion, the Council proposed that the Conference adopt for 1974-75 the Scale of Contributions set out in Appendix to this Report which had been derived directly from the proposed UN Scale of Assessments for 1974-76, subject to any adjustments that might arise from the admission of new Members at the Seventeenth Session of the Conference and such adjustments as may he required should the Twenty-Eighth Session of the UN General Assembly amend the Scale proposed by the UN Committee on Contributions.
157. The Council accordingly recommended the following draft resolution for adoption by the Conference:
Draft Resolution for the Conference
Scale of Contributions 1974-75
THE CONFERENCE
Having considered the Report of the Sixty-First Session of the Council,
Decides to adopt for use in 1974-75 the Scale of Contributions set out in Appendix ... which is derived directly from the United Nations Scale of Assessments for 1974-76.
G. Scale of contributions 1974-75
(1972-73 Scale shown for comparative purposes)
|
Member Nation |
Scale |
Scale 1972-73 % |
|
Afghanistan |
0.02 |
0.04 |
|
Albania a/ |
0.02 |
- |
|
Algeria |
0.10 |
0.11 |
|
Argentina |
1.06 |
1.06 |
|
Australia |
1.83 |
1.84 |
|
Austria |
0.71 |
0.69 |
|
Bahrain |
0.02 |
0.04 |
|
Bangladesh a/ b/ |
0.13 |
- |
|
Barbados |
0.02 |
0.04 |
|
Belgium |
1.34 |
1.31 |
|
Bolivia |
0.02 |
0.04 |
|
Botswana |
0.02 |
0.04 |
|
Brazil |
0.98 |
1.00 |
|
Bulgaria |
0.18 |
0.23 |
|
Burma |
0.04 |
0.06 |
|
Burundi |
0.02 |
0.04 |
|
Cameroon |
0.02 |
0.04 |
|
Canada |
4.05 |
3.86 |
|
Central African Rep. |
0.02 |
0.04 |
|
Chad |
0.02 |
0.04 |
|
Chile |
0.18 |
0.25 |
|
China c/ |
7.01 |
- |
|
Columbia |
0.20 |
0.24 |
|
Congo, P.R. of |
0.02 |
0.04 |
|
Costa Rica |
0.02 |
0.04 |
|
Cuba |
0.14 |
0.20 |
|
Cyprus |
0.02 |
0.04 |
|
Czechoslovakia |
1.13 |
1.13 |
|
Dahomey |
0.02 |
0.04 |
|
Denmark |
0.80 |
0.78 |
|
Dominican Rep. |
0.02 |
0.04 |
|
Ecuador |
0.02 |
0.04 |
|
Egypt |
0.15 |
0.23 |
|
El Salvador |
0.02 |
0.04 |
|
Ethiopia |
0.02 |
0.04 |
|
Fiji |
0.02 |
0.04 |
|
Finland |
0 53 |
0.56 |
|
France |
7 47 |
7.51 |
|
Gabon |
0.02 |
0.04 |
|
Gambia, The |
0.02 |
0.04 |
|
Germany, F.R. of |
9.05 |
8.52 |
|
Ghana |
0.05 |
0.09 |
|
Greece |
0.41 |
0.36 |
|
Guatemala |
0.04 |
0.06 |
|
Guinea |
0.02 |
0.04 |
|
Guinea-Bissau a/ d/ |
0.02 |
- |
|
Guyana |
0.02 |
0.04 |
|
Haiti |
0.02 |
0.04 |
|
Honduras |
0.02 |
0.04 |
|
Hungary |
0.42 |
0.60 |
|
Iceland |
0.02 |
0.04 |
|
India |
1.53 |
1.94 |
|
Indonesia |
0.24 |
0.35 |
|
Iran |
0.25 |
0.28 |
|
Iraq |
0.06 |
0.09 |
|
Ireland |
0.19 |
0.19 |
|
Israel |
0.27 |
0.25 |
|
Italy |
4.59 |
4.43 |
|
Ivory Coast |
0.02 |
0.04 |
|
Jamaica |
0.02 |
0.04 |
|
Japan |
9.11 |
6.76 |
|
Jordan |
0.02 |
0.04 |
|
Kenya |
0.02 |
0.04 |
|
Khmer Rep. |
0.02 |
0.04 |
|
Korea, Rep. of b/ |
0.14 |
0.14 |
|
Kuwait |
0.11 |
0.10 |
|
Laos |
0.02 |
0.04 |
|
Lebanon |
0.04 |
0.06 |
|
Lesotho |
0.02 |
0.04 |
|
Liberia |
0.02 |
0.04 |
|
Libya |
0.14 |
0.09 |
|
Luxembourg |
0.05 |
0.06 |
|
Madagascar |
0.02 |
0.04 |
|
Malawi |
0.02 |
0.04 |
|
Malaysia |
0.09 |
0.12 |
|
Maldives |
0.02 |
0.04 |
|
Mali |
0.02 |
0.04 |
|
Malta |
0.02 |
0.04 |
|
Mauritania |
0.02 |
0.04 |
|
Mauritius |
0.02 |
0.04 |
|
Mexico |
1.10 |
1.10 |
|
Mongolia a/ |
0.02 |
- |
|
Morocco |
0.08 |
0.11 |
|
Nepal |
0.02 |
0.04 |
|
Netherlands |
1.58 |
1.48 |
|
New Zealand |
0.36 |
0.40 |
|
Nicaragua |
0.02 |
0.04 |
|
Niger |
0.02 |
0.04 |
|
Nigeria |
0.13 |
0.15 |
|
Norway |
0.55 |
0.54 |
|
Oman |
0.02 |
0.04 |
|
Pakistan |
0.18 e/ |
0.43 |
|
Panama |
0.02 |
0.04 |
|
Paraguay |
0.02 |
0.04 |
|
Peru |
0.09 |
0.12 |
|
Philippines |
0.23 |
0.39 |
|
Poland |
1.60 |
1.77 |
|
Portugal |
0.19 |
0.20 |
|
Qatar |
0.02 |
0.04 |
|
Romania |
0.38 |
0.45 |
|
Rwanda |
0.02 . |
0.04 |
|
Saudi Arabia |
0.08 |
0.09 |
|
Senegal |
0.02 |
0.04 |
|
Sierra Leone |
0.02 |
0.04 |
|
Somalia |
0.02 |
0.04 |
|
Spain |
1.26 |
1.30 |
|
Sri Lanka |
0.04 |
0.06 |
|
Sudan, The |
0.02 |
0.04 |
|
Swaziland |
0.02 |
0.04 |
|
Sweden |
1.66 |
1.57 |
|
Switzerland b/ |
1.04 |
1.05 |
|
Syria |
0.02 |
0.04 |
|
Tanzania |
0.02 |
0.04 |
|
Thailand |
0.14 |
0.16 |
|
Togo |
0.02 |
0.04 |
|
Trinidad & Tobago |
0.02 |
0.04 |
|
Tunisia |
0 02 |
0 04 |
|
Turkey |
0 37 |
0 44 |
|
Uganda |
0.02 |
0 04 |
|
United Arab Emirates a/ |
0.02 |
- |
|
United Kingdom |
6.77 |
7 39 |
|
U.S.A. |
25.00 |
31 52 |
|
Upper Volta |
0.02 |
0.04 |
|
Uruguay |
0.08 |
0 09 |
|
Venezuela |
0.41 |
0 51 |
|
Vietnam, Rep. of b/ |
0 08 |
0 09 |
|
Yemen Arab Rep. |
0.02 |
0 04 |
|
Yemen, P.D. Rep. |
0.02 |
0 04 |
|
Yugoslavia |
0 43 |
0.48 |
|
Zaire |
0.02 |
0.04 |
|
Zambia |
0.02 |
0.04 |
|
100.00 |
100.00 |
a/ Members admitted at Seventeenth Session of Conference, November 1973.
b/ Not members of the United Nations. Their contributions are based on the percentage rates at which they contribute to certain UN activities.
c/ Resumed membership as from 1 April 1973.
d/ Not a member of the United Nations. The Conference decided that for 1974-75, the minimum assessment rate of 0.02 percent would be appropriate.
e/ Assessment rate excluding Bangladesh.
Contents
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