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VIII. Administrative and financial matters
A. Audited accounts
B.
Other financial and administrative questions
462. The Conference noted that the Council had reviewed the accounts and endorsed the recommendations of the External Auditor. It noted further that the Director-General had already taken measures to remedy the deficiencies mentioned in the External Auditor's report.
463. The Conference adopted the following resolution:
AUDITED ACCOUNTS
THE CONFERENCE,
Having considered the reports of the Seventy-fourth and Seventy-sixth Sessions of the Council,
Having examined the following audited accounts and the External Auditor's reports thereon:
| Regular Programme 1976-1977 | C 79/5 |
| United Nations Development Programme 1977 and 1978 | C 79/6 and Corr. I; C 79/6(a) and Corr. I |
| World Food Programme 1977 and 1978 | C 79/7, C 79/7(a) |
Adopts the above audited accounts.
(Adopted 27 November 1979)
Scale of Contributions 1980-81
464. The Conference noted that the UN General Assembly at its Thirty-fourth Session had approved a Scale of Assessments for 1980-82 which was based on the most recent and complete evaluation of Member States' capacity to pay.
465. The Conference agreed that, as in the past, the Organization should follow the UN Scale of Assessments, subject to adaptation for the different membership of FAO, and concurred with the recommendation of the Seventy-sixth Session of the Council that the FAO Scale for 1980-81 be derived directly from the UN Scale of Assessments for 1980-82.
466. Some members, while supporting the UN resolution, had reservations regarding the methodology used by the UN Committee on Contributions in developing the UN Scale of Assessments. These reservations had been set forth during the deliberations at the United Nations concerning adoption of the scale for 1980-82 as proposed by the Committee on Contributions.
467. Another member recalled that Resolution 42/55 of the Eighth FAO Conference, considered by the member to be an appropriate one, had provided that the FAO Scale of Contributions in future would be derived directly from the UN Scale of Assessments in force during the calendar year of the Conference session.
468. The Conference adopted the following resolution:
SCALE OF CONTRIBUTIONS 1980-81
THE CONFERENCE,
Having noted the recommendations of the Seventy-sixth Session of the Council,
Considering that the United Nations Scale of Assessments for 1980-82 is based on the most recent and complete evaluation of Member States capacity to pay,
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 1980-81 should be derived directly from the United Nations Scale of Assessments for 1980-82 as adopted by General Assembly Resolution 34/6A of 25 October 1979,
2. Adopts for use in 1980 and 1981 the Scale as set out in Appendix H of this report.
(Adopted 28 November 1979)
469. The delegate of Brazil, in expressing opposition to the draft resolution, explained that in the view of his country, being a developing one, the proposed Scale of Contributions, as derived directly from the UN Scale of Assessments and consequently redistributed among the Member Nations of FAO, did not fully reflect the capacity to pay of Member Nations. The delegate noted with concern that the new scale would result in his country's 1980-81 contribution being increased by more than 50 percent of its previous contribution.
B. Other financial and administrative questions
Working capital fund: reimbursement of withdrawals in 1978-79
Funding of special reserve account
Status of contributions
Payment of contributions: Nicaragua
Headquarters' accommodation
Examination of a comprehensive study prepared by the director-general on the activities and functioning of the FAO regional office for the near east, taking into account the views expressed during the seventy-fifth session of the council by some delegations, including the examination of its Location
Working capital fund: reimbursement of withdrawals in 1978-79
470. The Conference noted that, in accordance with Conference Resolution 17/69, as amended by Conference Resolution 33/75, the Director-General had withdrawn in June 1978 the sum of $350 000 from the Working Capital Fund for emergency action against desert locusts in the Red Sea area.
471. The Conference agreed that as the countries affected were all included in the category of least developed countries it would be unrealistic to expect reimbursement from these countries.
472. The Conference, noting that a cash surplus was expected in the 1978-79 biennium, decided that the reimbursement to the Working Capital Fund be made from this cash surplus and adopted the following resolution:
REIMBURSEMENT OF WORKING CAPITAL FUND FROM CASH SURPLUS 1978-79
THE CONFERENCE,
Noting that the Director-General under the provisions of Conference Resolution 17/69, as amended by Conference Resolution 33/75, and acting on the recommendation of the Advisory Panel of Experts set up to advise him on initial control activities against locusts and after consultation with the Chairman of the Finance Committee, had withdrawn $350 000 from the Working Capital Fund for emergency locust control operations in the Red Sea area,
Noting that $350 000 had been expended out of this withdrawal,
Further noting that, if Member Nations pay their contributions in good time, it is estimated that there will be a cash surplus in the 1978-79 biennium,
Recalling that in accordance with Financial Regulation 6.5(b) advances made from the Working Capital Fund to finance emergency expenditure shall be reimbursed by such method as the Conference determines,
Decides that, notwithstanding the provisions of Financial Regulation 6.1(b), $350 000 of that surplus shall be withheld and used to reimburse the Working Capital Fund.
(Adopted 27 November 1979)
Funding of special reserve account
473. The Conference noted that as a result of the weakening of the US dollar additional unbudgeted costs would be likely to reach some $3.5 million for the biennium.
474. In accordance with Conference Resolution 27/77, these costs would be charged to the Special Reserve Account leaving a balance on the account at 31 December 1979 of about $1.5 million.
475. The Conference recalled that, in accordance with Conference Resolution 27/77, the level of the Special Reserve Account should be equivalent to 2.5 percent of the total effective working budget for the biennium. In the event that the balance in the account at the end of the prior biennium should not attain the level of 2.5 percent of the effective working budget, proposals would have to be submitted through the Finance Committee and Council concerning ways and means of bringing the Special Reserve Account up to that level.
476. The Conference, noting that a cash surplus was expected in the 1978-79 biennium, decided that the funds required to raise the Special Reserve Account to the level of 2.5 per cent of the 1980-81 Budget be obtained from this cash surplus and adopted the following resolution:
REPLENISHMENT OF THE SPECIAL RESERVE ACCOUNT
THE CONFERENCE,
Recalling that at its Nineteenth Session it established a Special Reserve Account to assist in protecting the Organization's programmes of work against the effects of unbudgeted extra costs that may arise in the 1978-79 biennium or in any subsequent biennia due to adverse currency fluctuations and unbudgeted inflationary trends,
Noting that up to 30 September 1979 $2 496 000 had been withdrawn from the account to cover unbudgeted extra costs arising from currency fluctuations,
Noting further that, provided the rate of exchange for the lira did not change substantially in the remainder of 1979, further amounts would have to be withdrawn,
Considering that in accordance with Conference Resolution 27/77, the level of the Special Reserve Account should be raised to a level calculated on the basis of 2.5 percent of the 1980-81 effective working budget at the lira rate as decided by the Conference,
Considering also that, provided Member Nations pay their contributions in good time, a cash surplus is expected,
Decides that, notwithstanding the provisions of Financial Regulation 6.1(b), such portion of this cash surplus as is required to bring the level of the Special Reserve Account to 2.5 percent of the 1980-81 effective working budget shall be withheld and credited to the Special Reserve Account.
(Adopted 27 November 1979)
477. The Conference noted that the Council at its Seventy-sixth Session had reported on the status of contributions due from Member Nations and appealed especially to those Member Nations with outstanding arrears and/or current assessments to liquidate their obligations as soon as possible. It also appealed to all Member Nations to arrange for early payment of their assessments in 1980 and 1981.
Payment of contributions: Nicaragua
478. The Conference considered the proposals of the Government of Nicaragua that it liquidate its outstanding contributions over a ten-year period in addition to paying each current contribution in the Calendar year of assessment commencing in 1979.
479. The Conference adopted the following resolution:
PAYMENT OF CONTRIBUTIONS - NICARAGUA
THE CONFERENCE,
Noting that the Government of Nicaragua had made a proposal that it liquidate its arrears of contributions over a period of ten years in addition to paying each current contribution in the calendar year of assessment, commencing in 1979,
Decides that:
1. Notwithstanding Financial Regulation 5.5, Nicaragua's arrears of contributions totalling $38 811.00 shall be settled through the payment of ten equal annual instalments of $3 881.10.
2. The first instalment together with the contribution assessed for 1979 shall be payable in 1979.
(Adopted 15 November 1979)
480. The Conference was informed of the latest position regarding the restructuring of Building D and the likely date of its delivery to the Organization. Based on the current rate of progress the Organization might be able to release Building G by the end of May or June 1980.
481. The Conference noted, however, that the Organizations would still have to continue occupying Building F, for which the current annual rent amounted to approximately US $600 000 which was subject to annual increases of approximately 10 percent. Thus, even if the Host Government were to continue its generous voluntary contribution of 300 million lire a year (approximately $360 000), a further S240 000 per annum, approximately would still be required. This shortfall would increase yearly as the rent for the building increased.
482. The delegate of the Host Government informed the Conference that, although the Government had met its legal obligations by making available Building D and had made a special contribution for a number of years on a voluntary basis, it would examine the possibilities of continuing this special voluntary contribution. He also said that it would take positive steps in connexion with the proposed new building complex for FAO which, in addition, could serve to house WFP, WFC and eventually IFAD, thus providing a permanent solution to the accommodation problem.
483. The Conference expressed its appreciation for the generous support rendered by the Italian Government. It agreed on the need to study as a possible permanent solution to the headquarters' accommodation problem the construction of a new building complex and urged that the Director-General continue to pursue his efforts in this direction. It noted that the Director-General would report on progress made to the next session of the Finance Committee in May 1980.
484. The Conference, after hearing a statement by the Director-General and declarations from representatives of the Near East Region and of the various groups of Member Nations, expressed its warm appreciation to the Director-General and to the Member Nations concerned for the constructive spirit of cooperation in which this item had been dealt with and adopted unanimously the following resolution:
REGIONAL OFFICE FOR THE NEAR EAST
THE CONFERENCE,
Firmly convinced for the need to promote fruitful and harmonious cooperation in the field of food and agriculture, including fisheries and forestry, between all countries of the Near East Region,
Recognizing the past contributions to this end made by the Regional Office for the Near East in its present location,
Deeply concerned, however, by the fact that, since April 1979, the operations. of the Organization in the Near East Region and, in particular, those of the Regional Office for the Near East, have been seriously impaired,
Acknowledging the responsibility of the Conference to decide on the establishment and location or relocation of the Regional Offices of the Organization,
Considering, however, that, in principle, the views of the countries of any region concerning the location of the FAO Regional Office should have primary importance,
Being responsive and sympathetic to the views of the majority of Member Nations in the Near East Region,
Having reviewed the detailed and objective information provided by the Director-General in document C 79/25-Rev. 1,
Considering that, in present circumstances, it would be in the best interest of all member countries, and particularly those of the Near East Region, to find a solution which could respect the interest of all Member Nations, while giving due acknowledgement to the views of the majority of the Member Nations of the Near East Region,
1. Decides that, henceforth and until decided otherwise by the Conference, the Cairo head quarters of the Regional Office for the Near East will be closed;
2. Requests the Director-General, using his best and unfettered judgement, to
determine which regional activities of the organization in the Near East should, in the
circumstances, be terminated and which should continue to be carried out from another
location or locations, particularly those in other countries within the region and the
Rome headquarters of the
Organization, as appropriate and feasible;
3. Further requests the Director-General, acting in accordance with the relevant rules and regulations, of the organization, to take all necessary measures for the implementation of this resolution, including the separation of locally recruited General Service staff, the retention, termination or redeployment of other staff as appropriate, the withdrawal and redistribution of equipment and supplies, and the transfer of the archives and bank deposits of RNEA to the Rome headquarters of the Organization;
4. Accepts with appreciation the generous offer of Member Nations of the region to finance the additional cost of these measures by providing, on a voluntary basis, the sum of US$ 1 million as a Trust Fund to be administered by the Director-General;
5. Authorizes the Director-General, in order to implement these measures and in addition to the voluntary funds mentioned in paragraph 4 above, to make the necessary adjustments in the approved 1980-81 Regular Programme budget intended to cover the activities of the Regional Office for the Near East and other regional activities of the Organization in the Near East;
6. Calls upon all Member Nations, especially those within the Near East Region, to provide their full cooperation to the Director-General, to the staff of the Organization, and to the Member Nations concerned, to ensure the smooth and effective implementation of this resolution, in particular during the interim period which will elapse until all measures which the Director General will consider it necessary to take have become fully effective.
(Adopted 28 November 1979)
485. Subsequent to the adoption of this resolution, the delegate of the Kingdom of Saudi Arabia, speaking on behalf of the great majority of Member Nations of the Near East Region, explained that they had joined in the unanimous approval of the proposed text in order to demonstrate their dedication to the aims and objectives of the Organization and to the ideals of international cooperation. At the same time, however, they wished to reaffirm that such action in no way altered their firm determination to defend their cause, for which they expected to receive the comprehension and support of the whole international community.
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