FC 94/6 (b) |
Ninety-fourth Session |
Rome, 8 - 12 May 2000 |
Financial Outturn of the 1998-99 Biennium |
Statement I
Statement of Income and Expenditure and Changes in Reserves and Fund BalancesStatement II
Statement of Assets, Liabilities, Reserves and Fund BalancesStatement III
Statement of Cash FlowStatement IV
Status of Regular Programme Appropriations
Notes | Funds |
Total | |||
General and Related |
Trust and UNDP |
1998-99 | 1996-97 | ||
INCOME | |||||
Assessment on Member Nations | 4 | 637,324 | - | 637,324 | 629,400 |
Voluntary contributions | 5 | 33,458 | 430,820 | 464,278 | 358,700 |
Funds received under inter-organisational arrangement | 6 | 4,745 | 57,358 | 62,103 | 101,100 |
Jointly financed activities | 7 | 24,182 | - | 24,182 | 25,300 |
Services rendered | 12,097 | - | 12,097 | 5,600 | |
Miscellaneous | 8 | 61,530 | 10,602 | 72,132 | 64,000 |
Sundry | 9 | (11,615) | - | (11,615) | 13,400 |
761,721 | 498,780 | 1,260,501 | 1,197,500 | ||
EXPENDITURE | |||||
Regular Programme | 708,974 | - | 708,974 | 729,000 | |
Projects | - | 498,780 | 498,780 | 433,000 | |
10 | 708,974 | 498,780 | 1,207,754 | 1,162,000 | |
EXCESS (SHORTFALL) OF INCOME OVER EXPENDITURE |
52,747 | - | 52,747 | 35,500 | |
Redeployment and separation costs | 11 | (10,587) | - | (10,587) | - |
Amortisation of after service liabilities | 3 | (21,143) | - | (21,143) | - |
Staff related schemes | 20 | (25,634) | - | (25,634) | |
Provision for contributions | 12 | (14,489) | - | (14,489) | 58,700 |
Deferred Income | (5,048) | (5,048) | |||
Transfer of Support Costs | - | - | - | 1,900 | |
NET EXCESS (SHORTFALL) OF INCOME OVER EXPENDITURE | (24,154) | - | (24,154) | 96,100 | |
Transfers from/(to) Reserves | |||||
Working Capital Fund | 21 | (23,700) | - | (23,700) | 700 |
Special Reserve Account | 22 | (889) | - | (889) | 1,400 |
Fund balances, beginning of period | 27,600 | - | 27,600 | (70,600) | |
FUND BALANCES, END OF PERIOD | (21,143) | - | (21,143) | 27,600 | |
The accompanying notes are an integral part of the financial statements.
Notes | Funds | Total |
|||
General and Related | Trust and UNDP | 1998-99 | 1996-97 | ||
ASSETS | |||||
Cash and term deposits | 100,626 | 193,176 | 293,802 | 256,900 | |
Investments | 13 | 163,463 | - | 163,463 | 152,200 |
Contributions receivable | 14 | 169,409 | - | 169,409 | 154,000 |
Less: Provision for delays of contributions | 12 | (169,409) | (169,409) | (154,000) | |
Accounts receivable | 15 | 51,137 | 51,137 | 39,500 | |
315,226 | 193,176 | 508,402 | 448,600 | ||
LIABILITIES | |||||
Contributions received in advance | 16 | 457 | 131,277 | 131,734 | 160,200 |
Unliquidated Obligations | 17 | 39,177 | 71,004 | 110,181 | 59,400 |
Inter-fund balances | 18 | 9,105 | (9,105) | - | - |
Accounts payable | 19 | 58,733 | - | 58,733 | 26,000 |
Staff related schemes | 20 | 144,159 | - | 144,159 | 125,400 |
Deferred Income | 23 | 60,215 | - | 60,215 | 50,200 |
311,846 | 193,176 | 505,022 | 421,200 | ||
RESERVES AND FUND BALANCES | |||||
Working Capital Fund | 21 | 23,756 | - | 23,756 | - |
Special Reserve Account | 22 | 767 | - | 767 | (200) |
Fund Balances, end of period | 24 | (21,143) | - | (21,143) | 27,600 |
3,380 | - | 3,380 | 27,400 | ||
315,226 | 193,176 | 508,402 | 448,600 | ||
The accompanying notes are an integral part of the financial statements.
1998-99 | 1996-97 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net excess (shortfall) of income over expenditure (Statement I) | (24,154) | 96,100 | ||
Adjustment for interest receivable | (65,340) | (26,500) | ||
(89,494) | 69,600 | |||
Increase in contributions receivable | (15,409) | 59,300 | ||
Increase in provision for contributions | 15,409 | (59,300) | ||
Increase in accounts receivable | (7,650) | (4,800) | ||
Decrease in contributions received in advance | (28,466) | 400 | ||
Increase in unliquidated obligations | 50,781 | (6,100) | ||
Increase in deferred income | 10,015 | 6,100 | ||
Increase in accounts payable | 32,733 | 5,500 | ||
Increase in staff related schemes | 18,759 | (5,900) | ||
(13,322) | 64,800 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Increase in investments | (11,263) | (18,500) | ||
(11,263) | (18,500) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Increase in Working Capital Fund | 56 | - | ||
Increase in Special Reserve Account | 78 | 500 | ||
Decrease in Support Costs | - | (1,900) | ||
Decrease in provisions | - | (13,500) | ||
Decrease in loans | - | (8,000) | ||
Interest received | 61,353 | 29,500 | ||
Interest paid | - | (400) | ||
61,487 | 6,200 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 36,902 | 52,500 | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 256,900 | 204,400 | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 293,802 | 256,900 | ||
The accompanying notes are an integral part of the financial statements.
Regular Programme and Donor Contributions | Support and Service Income | ||||||||||
Chapter | Budget |
Transfers |
Adjusted Budget |
Actual |
Deferred Income (note 23) |
Balance |
Adjusted Budget |
Actual |
Balance |
Total Balance |
|
1 | General Policy and Direction | 50,359 | 3,000 | 1,924 | |||||||
2 | Technical and Economic Programme | 292,906 | 286,754 | 4,533 | 2,860 | ||||||
3 | Development Support Programme | 118,029 | 124,029 | 65,980 | 58,861 | ||||||
4 | Technical Cooperation Programme | 89,447 | 29,413 | 60,215 | 0 | 56 | |||||
5 | Support Services | 57,496 | 59,264 | 8,600 | 7,187 | ||||||
6 | Common Services | 41,163 | 43,603 | 4,400 | 3,594 | ||||||
7 | Contingencies | 600 | 0 | 0 | 0 | ||||||
TOTAL EFFECTIVE BUDGET | 650,000 | 592,790 | 60,215 | 86,513 | 74,482 | ||||||
8 | Transfer to Tax Equalisation Fund | 91,780 | |||||||||
Staff Currency Variance | - | (10,532) | |||||||||
741,780 | 582,258 | 60,215 | 86,513 |
The accompanying notes are an integral part of the financial statements.
1. THE ORGANIZATION
The Food and Agriculture Organization (the Organization), was established on 16 October 1945. Its headquarters are in Rome, Italy. The purpose of the Organization is to raise levels of nutrition and standards of living; secure improvements in the efficiency of the production and distribution of all food and agricultural products; better the condition of rural populations; and thus contribute toward an expanding world economy and ensure humanity's freedom from hunger.
The Organization's Programme of Work (Regular Programme) is approved by the Conference of Member Nations. The related budget appropriations voted are financed by annual contributions based on an assessment on Member Nations and Associate Members by the Conference. Unutilised appropriations at the close of the financial period are cancelled, except for the Technical Cooperation Programme (TCP) appropriation which remains available for obligations during the financial period following that for which the funds were voted.
Voluntary contributions for special purposes, which are consistent with the policies, aims and activities of the Organization, may be accepted by the Director-General and Trust and Special Funds established accordingly. In addition, the Organization receives funds under an inter-organizational arrangement with the United Nations Development Programme (UNDP) to participate as an executing agency for UNDP technical cooperation projects or act as implementing agency for UNDP funded projects executed by other executing agencies. Voluntary contributions and funds received include payment towards recovering certain costs relating to technical, managerial and administrative services (support costs) which are a necessary part of extra-budgetary projects.
In agreement with the main multilateral financing agencies for agriculture, the Organization provides investment support services under jointly financed missions to individual countries, for which it receives reimbursement of an agreed share of costs. The Organization also renders technical, management and administrative services to the UN/FAO World Food Programme (WFP) on a cost reimbursement basis.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Period
The financial period is a biennium consisting of two consecutive calendar years.
Basis of Preparation
The financial statements are prepared under the historical cost convention and in accordance with applicable accounting standards.
Income
Income is recognised when the Organization becomes entitled to it with the exception of voluntary contributions and funds received under inter-organizational arrangement. This income is recognised proportionately with the degree of project activity completed as measured in terms of expenditure.
Expenditure
Expenditure is recognised as costs are incurred.
Equipment, Furniture and Vehicles
The cost of equipment, furniture and vehicles is fully expensed in the year of purchase.
Foreign currencies
The financial statements are expressed in US dollars. Income and expenditure in currencies other than US dollars are translated into US dollars at the UN operational rates of exchange which approximate the market rate in effect at the date of the underlying transactions. Assets and liabilities in currencies other than US dollars are translated at the UN operational rate of exchange in effect at 31 December 1999. Exchange differences are taken to the income and expenditure account.
Investments
Investments are stated at the lower of cost and market value determined on a total portfolio basis.
3. CHANGE IN ACCOUNTING PRESENTATION
During the financial period the Organization implemented a new accounting system as a result of which certain transactions and balances are no longer grouped or classified in the same way as the past. In addition, in order to follow better the applicable accounting standards the presentation of the accounts of the Organization has been changed as follows:
(i) Deferred Income
The unutilised appropriation for the Technical Cooperation Programme is no longer treated as a deduction from assessment income but a charge to the General Fund.
(ii) End of Service and Retirement Benefits
Previously terminal payments not provided for under the Terminal Payments Fund and the costs of after service medical care were charged to expenditure on a cash paid, rather than accruals, basis. The resultant unrecorded liability for After Service Medical Care is being amortised over 30 years.
4. ASSESSMENT ON MEMBER NATIONS
1998/99 | 1996/97 | |||
1998/99 Regular Programme assessments | 641,200 | |||
less: Amount in respect of Tax Equalisation Fund | (2,500) | (2,200) | ||
Discounts on Contributions received | (976) | (3,400) | ||
TCP Appropriation transfers | - | (6,200) | ||
637,324 | 629,400 |
5. VOLUNTARY CONTRIBUTIONS
1998/99 | 1996/97 | |||
(a) General and Related Funds | ||||
|
33,458 | 32,100 | ||
(b) Trust Funds and UNDP |
||||
|
248,563 | 242,844 | ||
|
158,885 | 62,370 | ||
|
23,372 | 21,386 | ||
430,820 | 326,600 | |||
464,278 | 358,700 |
6. FUNDS RECEIVED UNDER INTER-ORGANIZATIONAL ARRANGEMENT
1998/99 | 1996/97 | |||
(a) General and Related Funds | ||||
|
4,745 | 16,300 | ||
(b) Trust Funds and UNDP |
||||
|
57,358 | 84,800 | ||
62,103 | 101,100 |
7. JOINTLY FINANCED ACTIVITIES
1998/99 | 1996/97 | |||
FAO/World Bank Cooperative Programme | 19,300 | |||
African Development Bank |
2,722 | 1,900 | ||
Asian Development Bank |
1,167 | 1,600 | ||
International Fund for Agricultural Development |
2,371 | 1,600 | ||
United Nations Capital Development Fund |
156 | 300 | ||
Others |
118 | 600 | ||
24,182 | 25,300 |
8. MISCELLANEOUS
1998/99 | 1996/97 | |||
(a) General and Related Funds: |
||||
|
49,423 | 15,800 | ||
|
5,799 | 4,900 | ||
|
- | (400) | ||
|
4,795 | 6,700 | ||
|
1,513 | 15,400 | ||
61,530 | 42,400 | |||
(b) Trust Funds and UNDP: | ||||
|
10,602 | 21,600 | ||
72,132 | 64,000 |
9. SUNDRY
1998/99 | 1996/97 | |||
Government cash contributions | 2,600 | |||
Information Products Revolving Fund |
2,262 | 1,700 | ||
Gains/(Losses) on exchange |
(17,002) | 9,100 | ||
Sundries |
2,174 | - | ||
(11,615) | 13,400 |
10. EXPENDITURE
1998/99 | 1996/97 | |||
(a) General and Related Funds: |
||||
Expenditure amounting to $709.0 million includes $632.5 million in respect of the 1998/99 appropriation; $50.2 million in respect of 1996/97 TCP appropriation; $24.2 million in respect of Jointly financed activities; and $2.1 million in respect of the Information Products Revolving Fund. | ||||
|
441,235 | 482,300 | ||
|
84,330 | 78,100 | ||
|
49,614 | 29,200 | ||
|
30,049 | 66,100 | ||
|
49,358 | 29,500 | ||
|
54,388 | 43,800 | ||
708,974 | 729,000 | |||
(b) Trust Funds and UNDP | ||||
|
112,282 | 186,200 | ||
|
75,038 | 17,600 | ||
|
42,850 | 26,300 | ||
|
26,102 | 27,900 | ||
|
173,814 | 97,600 | ||
|
25,625 | 43,300 | ||
|
37,931 | 33,000 | ||
|
5,138 | 1,100 | ||
498,780 | 433,000 | |||
1,207,754 | 1,162,000 |
11. REDEPLOYMENT AND SEPARATION COSTS
Conference Resolution 7/97 authorised the Director-General to spend up to $12 million for the purposes of meeting redeployment and separation costs over and above the net budgetary appropriations approved for 1998-99. The same resolution invited Members to also contribute voluntarily additional funds for this purpose and urged all Member Nations to pay their contributions promptly so as to reduce the burden on the accumulated deficit. As no voluntary contributions have been forthcoming for the purposes, the related costs incurred have been charged to the General Funds.
12. PROVISION FOR CONTRIBUTIONS
1998/99 | 1996/97 | |||
At 1 January 1998 | ||||
|
14,489 | (58,700) | ||
|
1,008 | - | ||
15,497 | (58,700) | |||
|
(88) | (500) | ||
At 31 December 1999 | 169,409 | 154,000 |
The reduction in the provision for contributions is explained in Note 3(i)
13. INVESTMENTS
1998/99 | 1996/97 | |||
(a) General and Related Funds: |
163,463 | 152,200 |
The investments of the General and Related Funds are held by Northern Trust Company and managed by the Fiduciary Trust Company. The investments above include $19.3 million held on behalf of the UN/FAO World Food Programme in respect of its share of the investments earmarked for its staff related schemes and have a market value of $244.1 million. See also note 20.
14. CONTRIBUTIONS RECEIVABLE
1998/99 | 1996/97 | |||
Assessment on Member Nations | 136,700 | |||
Government cash contributions |
5,702 | 4,700 | ||
Working Capital Fund |
1,614 | 1,600 | ||
Special Reserve Account |
10,874 | 11,000 | ||
169,409 | 154,000 |
15. ACCOUNTS RECEIVABLE
1998/99 | 1996/97 | |||
Accounts Receivable advances and prepayments | 21,617 | 19,500 | ||
Other UN and non UN organizations | 22,214 | 8,800 | ||
Accrued interest | 2,113 | 6,100 | ||
Others | 5,193 | 5,100 | ||
51,137 | 39,500 |
16. CONTRIBUTIONS RECEIVED IN ADVANCE
1998/99 | 1996/97 | |||
(a) General and Related Funds: | ||||
|
457 | 2,300 | ||
(b) Trust and UNDP Funds: |
||||
|
111,940 | 158,300 | ||
|
19,337 | (400) | ||
131,277 | 157,900 | |||
131,734 | 160,200 |
17. UNLIQUIDATED OBLIGATIONS
Unliquidated obligations include liabilities for the cost of personnel services incurred and contracts and purchase orders entered into at 31 December 1999. The increase in the amount outstanding at the end of the financial period is mainly attributable to an increase by some $44.9 million in the accrued expenditures of the Office of Special Relief Operations in respect of relief operations in Iraq.
18. INTER-FUND BALANCES
Inter-fund balances arise mainly from disbursements and reimbursements in the normal course of operations by the General Fund on behalf of Trust and UNDP Funds and vice versa.
19. ACCOUNTS PAYABLE
1998/99 | 1996/97 | |||
Payroll accrual | - | 7,100 | ||
Field disbursements | 9,232 | 7,900 | ||
Other UN agencies | 19,305 | - | ||
Pension and medical schemes | 2,644 | 2,200 | ||
Staff fiduciary accounts | 12,197 | - | ||
Others | 15,355 | 8,800 | ||
58,733 | 26,000 |
The amount payable to other UN agencies is discussed in Note 13. Staff fiduciary accounts were previously disclosed under Staff Related Schemes.
20. STAFF RELATED SCHEMES
1998/99 | 1996/97 | |||
General and Related Funds | ||||
Staff fiduciary accounts |
- | 11,400 | ||
Separation Payments |
97,130 | 93,900 | ||
Compensation Payments |
21,551 | 18,100 | ||
Terminal Payments |
- | 2,000 | ||
After Service Medical Care |
25,478 | - | ||
144,159 | 125,400 |
Conference Resolution 10/99 approved, inter alia, that (i) any income generated from the investments held in respect of the Separation Payments Scheme and Staff Compensation Plan be applied to ensure the adequacy of those funds to extinguish the respective liabilities, (ii) should there be an excess in the investment income then this should in principle be earmarked for the After Service Medical Care liability (see note 24). The amount of the investment income so transferred to the Scheme and Plan amounted to $25.6 million and an actuarial review will determine the eventual earmarking, if any, to After Service Medical Care liability.
Staff fiduciary accounts
Staff fiduciary accounts represent funds related to the operation of the contributory medical and insurance arrangements for staff. The funds are used for related purposes such as settling claims received after the expiry of the medical and insurance contracts.
Separation Payments
The Separation Payments are due to General Service category staff at Headquarters who are entitled to receive a separation payment equivalent to 1/13.5 of yearly salary for each year of service completed after 1 January 1975. Separation Payments are subject to actuarial review to ascertain the liabilities and recommend rates of contribution. The valuation method used is the projected unit cost method. The details of the last actuarial valuation as at 31 December 1997 are as follows:
1997 | ||||
Principal actuarial assumptions to determine cost of benefits: |
||||
(i) Annual interest rate |
8.5% | |||
(ii) Future rate of salary inflation |
5.5% | |||
Actuarial present value of benefit obligation |
80.5 |
Compensation Payments
Compensation Payments are due to staff members and their dependants in case of death, injury or illness attributable to the performance of official duties and, in certain circumstances, to supplement the disability and survivors' pensions paid by the United Nations Joint Staff Pension Fund. Compensation Payments are subject to actuarial review to ascertain the liabilities and recommend rates of contribution. The valuation method used is the one-year cost method. The details of the last review as at 31 December 1997 are as follows:
1997 | ||||
Principal actuarial assumptions to determine cost of expected claims: | ||||
(i) Annual interest rate |
8.5% | |||
(ii) Annual cost-of-living increases in benefits |
5.5% | |||
(iii) Annual increases in pensionable remuneration |
6.5% | |||
Actuarial present value of expected claims |
17.9 |
After Service Medical Care
The After Service Medical Care Plan provides for worldwide coverage for necessary medical expenses of eligible former staff members and their dependants. After Service Medical Care is subject to actuarial review to ascertain the related liabilities and recommend rates of contribution. The valuation method used is the projected unit credit method. The details of the last review as at 31 December 1997 are as follows:
1997 | ||||
(i) Interest rate | 8.5% | |||
(ii) Salary Inflation rate |
5.5% | |||
(iii) Medical Inflation rate |
7.0% | |||
Actuarial present value of expected claims |
195.1 |
Terminal Payments
Terminal Payments relate to payment of accrued annual leave, repatriation grant, termination indemnity, the cost of repatriation travel and the removal of household goods for all eligible staff. Terminal Payments are subject to actuarial review to ascertain the related liabilities and recommend rates of contribution. The valuation method used is the aggregate cost method. The details of the last valuation as at 31 December 1997 are as follows:
1997 | ||||
(i) Annual interest rate | ||||
(ii) Future rate of salary inflation |
5.5% | |||
Actuarial present value of benefit obligation |
22.4 |
Pensions
The Organisation is a member of the United Nations Joint Staff Pension Fund (UNJSPF) established by the General Assembly of the United Nations to provide retirement, death disability and related benefits to staff of member organizations. The scheme is of the defined benefit type and the Organization's obligation is limited to specified contributions to the Fund.
21. WORKING CAPITAL FUND
1998/99 | 1996/97 | |||
At 1 January 1998 | 700 | |||
Receipts from Member Nations |
10 | - | ||
Transfer from General Fund | 23,746 | (700) | ||
At 31 December 1999 | 23,756 | - |
The purpose of the Working Capital Fund is to advance moneys on a reimbursable basis to the General Fund in order to finance budgetary expenditures pending receipt of contributions to the budget; finance emergency expenditures not provided for in the current budget; and make loans for such purposes as the Council may authorise in specific cases. The authorised level of the Working Capital Fund is $25 million in accordance with Conference resolution 15/91 of which the amount paid up is $23.7 million.
22. SPECIAL RESERVE ACCOUNT
1998/99 | 1996/97 | ||||
At 1 January 1998 | 700 | ||||
Receipts from Member Nations |
78 | 500 | |||
Exchange differences on translation of foreign currencies | (17,002) |
9,100 |
|||
Currency variance on staff standard costs |
10,532 | 1,500 | |||
Transfer from General Fund |
7,359 | (12,000) | |||
At 31 December 1999 | 767 | (200) |
The purpose of the Special Reserve Account is to protect the Organization's Programme of Work against the effects of unbudgeted extra costs arising from adverse currency fluctuations and unbudgeted inflationary trends. The authorised level of the Special Reserve Account is set by Conference Resolution 13/81 at 5% of the effective working budget for the respective subsequent biennium. Net gains or losses on exchange in addition to the currency variance on staff standard costs are charged to the Special Reserve Account. The currency variance on staff standard costs represents the difference between staff costs expressed in US Dollars at the budget rate for the biennium (Lire 1690 to $1) and the UN operational rates at the time of payment.
23. DEFERRED INCOME
1998/99 | 1996/97 | ||||||
At 1 January 1998 | 44,100 | ||||||
Add: 1998/99 Regular Programme assessment relating to TCP appropriation |
87,310 | 85,500 | |||||
Less: Transferred to income in respect of expenditures incurred against: |
|||||||
(i) 1996/97 TCP appropriation |
(50,182) | (44,100) | |||||
(ii) 1998/99 TCP appropriation |
(27,113) | (35,300) | |||||
At 31 December 1999 | 60,215 | 50,200 |
24. FUND BALANCES, END OF PERIOD
1998/99 | 1996/97 | |||
General Fund: |
||||
Balance |
(21,143) | 27,600 | ||
Information Products Revolving Fund |
- | - | ||
(21,143) | 27,600 |
25. UNRECORDED END OF SERVICE AND RETIREMENT BENEFITS
At 31 December 1999 the estimated unrecorded liabilities for terminal payments and after service medical care amounted to some $16.4 million and $170 million respectively.
26. CONTINGENT LIABILITIES
FAO received an assessment for garbage collection tax from the Rome Municipality for 1995 of the Lire equivalent of $1.1 million representing an increase of 425% from the previous year. By Note Verbale of June 1995, FAO informed the Italian Permanent Representation of the impossibility of accepting such a request due to both legal and financial considerations. As of the end of 1999 the total garbage tax assessed on FAO amounted to $5.2 million which resulted in a contingent liability of $3.9 million since $1.3 million had already been accounted for. FAO has a legal obligation under provisions of relevant treaties to pay that portion of garbage collection tax that corresponds to the cost of the service rendered. Therefore, pending conclusion of an agreement with all parties involved, any amount charged by the Rome Municipality for garbage services rendered constitutes a potential liability for the Organization. Despite repeated efforts and discussions with Italian Authorities, the matter remains substantially unresolved.
27. FINANCIAL INSTRUMENTS
In November 1999, the Organization entered into a forward exchange contract for the purchase of its Euro requirements for the 2000/01 biennium. The total liability under this contract is $312 million payable in instalments of $13 million per month from January 2000 to December 2001. Based on the UN operational rate of exchange prevailing at 31 December 1999 (Euro 0.993 to $1), the dollar equivalent of the Euro to be purchased amounted to $296 million. The unrealised exchange difference at that date amounted to $16 million.
28. OTHER DISCLOSURES
Equipment, Furniture and Vehicles
The historical cost of fully expended FAO equipment, furniture and vehicles at the end of the biennium was as follows:
80
1998/99 | 1996/97 | |||
General and Related Funds |
48,999 | 50,300 | ||
Trust and UNDP Funds |
101,915 | 104,000 | ||
150,914 | 154,300 |
Voluntary Contributions-in-kind
The Headquarters premises in Rome are provided rent-free by the Host Country in accordance to the Headquarters agreement. It is estimated that the commercial rental value of the Headquarters and Field property is approximately $14.7 and $1.3 million per year respectively.
Non-convertible Currencies
At 31 December 1999, cash balances held in non-convertible currencies amounted to $3.0 million (1996/97 - $5.5 million).