Contents -

A. Audited Accounts for 1957
B. Audited Accounts for the Expanded Program of Technical Assistance, 1958
C. European Commission for the Control of Foot - and - Mouth Disease - Audited Accounts for 1958
D. Amendments to the Financial Regulations (Publications Revolving Fund)
E. Repatriation grant equalization fund
F. Review of Common System of Salaries (Professional Officers and above)
G. Office Accommodation at Headquarters
H. Reimbursement of the Working Capital Fund
I. Service benefit fund
J. Financial Position of the Organization
K. Scale of Contributions
L. Contributions of New Members Nations and Associate Members
M. Financial implications of the Admission of New Member Nations and Associate Members
N. ETAP headquarters costs

638. The Conference considered the Financial Report and Statements of the Organization for the period ended 31 December 1957 and the report of the External Auditor thereon. It also noted the comments of the Finance Committee as submitted by the 29th Session of the Council and adopted the following resolution:

Resolution No. 79/59

THE CONFERENCE

Having examined the audited accounts for the financial year ended 31 December 1957 and the external auditor's report thereon, together with the comments of the Finance Committee and the Council,

Approves the audited accounts for the above mentioned period.

639. Since the fiscal period of ETAP remained on an annual basis, the final accounts for the year 1958 and the external auditor's report thereon, together with the comments of the Finance Committee, were presented to the Conference, which agreed to the Finance Committee's recommendation that the audited accounts for ETAP for 1958 be adopted and passed the following resolution:

Resolution No. 80/59

Audited Accounts for the Expanded Program of Technical Assistance for 1958

THE CONFERENCE

Having examined the audited accounts for the Expanded Program of Technical Assistance for the financial year 1958 and the external auditor's report thereon, together with the comments of the third session of the Finance Committee,

Approves the audited accounts for the above-mentioned period.

640. In accordance with the Financial Regulations of the European Commission for the Control of Foot - and - Mouth Disease, the accounts for the calendar year 1958 of that body and the external auditor's report thereon were examined by the third session of the Finance Committee and submitted to the Conference for its approval. Having examined the accounts, the Conference adopted the following resolution:

Resolution No. 81/59

European Commission for the Control of Foot - and - Mouth Disease - Audited Accounts for 1958

THE CONFERENCE

Having examined the audited accounts of the European Commission for the Control of Foot and - Mouth Disease and the external auditor's report thereon, together with the comments of the third session of the Finance Committee,

Approves the audited accounts for 1958 for the above - mentioned Commission.

641. The Thirty - First Session of the Council submitted proposals of the Finance Committee to reduce the capital of the Publications Revolving Fund and to limit provisions for expenditure on reprints and sales promotion. The Conference approved these recommendations and adopted the following resolution:

Resolution No. 82/59

Publications Revolving Fund

THE CONFERENCE

Taking account of the actual expenditures incurred by the Organization in the years 1956, 1957 and 1958 in respect of cost of reprints of publications and films and for sales promotion, and the level of capital required in the Publications Revolving Fund to meet such expenditures,

Amends Financial Regulation 6.9 to read as follows:

6.9 There shall be established a Publications Revolving Fund to which shall be credited all proceeds of sales of publications and films. The Fund shall be used only for the following purposes: (i) to meet the cost of reprinting those publications and reissuing those films of the Organization for the sale of which there is a demand; (ii) to promote, within a maxi . mum amount determined by the Conference, the sale of publications and films of the Organization. Any balance at the end of each financial period in excess of $10,000 as shown in the audited accounts of the Fund, shall be transferred to Miscellaneous Income of the financial period during, which the audit is completed; and

Approves the budget for the Publications Revolving Fund as follows:

642. By Resolution No. 68/53 the Seventh Session of the Conference authorized the Director - General to establish a Repatriation Grant Equalization Fund under Financial

Regulation 6.8. In the light of the experience gained in the five years of operation of the Fund, the Thirty - First Session of the Council concurred in the recommendations of the Finance Committee (a) to revise the procedure established by Resolution No. 68/53; and (b) to review this matter again and make such proposals as may be appropriate prior to the 1961 Session of the Conference.

Resolution No. 83/59

Repatriation Grant Equalization Fund

THE CONFERENCE

Observing that only once in the period 1954 - 58 had expenditure for Repatriation Grants exceeded the budget provision and that the balance in the Fund as at 1 January 1959 was $73,071,

Considering that the experience of the past five years justifies revising the procedure established by Resolution No. 68153 of the Seventh Session of the Conference,

Instructs the Director - General to transfer to Miscellaneous Income any excess above $50,000 which may remain in the Repatriation Grant Equalization Fund as shown it? the audited accounts for 1960 - 61.

643. The Director - General reported to the Conference on the action arising out of the recommendation of the Administrative Committee on Co - ordination to re - examine the basic salary scale of the staff in the Professional category and above. The Conference noted that a study was contemplated which would include an examination of the current difficulties, if any, with which the United Nations and the specialized agencies were faced, and a review of the principles on which salary scales for the international civil service were based and their relationship to developments in general community salary standards. The Conference noted that the selection of a suitable person to undertake the study was receiving active consideration and that the Director - General would keep the Finance Committee and the Council informed of developments.

644. The Conference noted with satisfaction the progress in the negotiations with the Italian Government for the addition of a new wing to the Headquarters site, which it was expected would be ready for occupancy by July 1961. The Conference again expressed its appreciation to the Government of the Italian Republic.

645. The. Twenty - Ninth Session of the Council (October/November 1958) approved the reclassification of Rome for post adjustment purposes to Class 3, effective January 1958. This entailed costs amounting to $220,000 in the biennium 1958 - 59. The Director - General had recommended and the Council approved that part of these costs should be met by savings from within the 1958 - 59 budget and the balance by an advance from the Working Capital Fund of $128,846. This balance represented the exact amount of the 1957 Regular Program surplus. As only the Conference had authority to set aside the Financial Regulations, the Council authorized the Director - General to withdraw the amount of $128,846 from the Working Capital Fund and recommended to the Conference the repayment to the Working Capital Fund by application of the 1957 cash surplus,

646. The Conference agreed with the Council's recommendation and adopted the following resolution:

Resolution No. 84/59

Reimbursement of the Working Capital Fund

THE CONFERENCE

Noting that the Council has authorized an advance from the Working Capital Fund of an amount of $128,846 to cover part of the increased staff - costs in 1958 - 59 arising from a revision in the post adjustment for Rome, and

Noting further that the Council has directed that disposition of the cash surplus for 1957 be postponed pending review of the matter by the Conference,

Decides that, notwithstanding Financial Regulation 6.1 (b), the advance from the Working Capital Fund shall be reimbursed by application of the 1957 cash surplus, amounting to $128,846.

647. The new employment conditions which the Salary Review Committee had recommended and which were adopted by the Twenty - Sixth Session of the Council (Resolution No. 12/26) for application in FAO, provide, inter alia, for a service benefit. The Thirty - First Session of the Council endorsed the recommendation of the Finance Committee that a Service Benefit Fund should be established under Financial Regulation 6.8. After consideration of the matter, the Conference adopted the following resolution:

Resolution No. 85/59

Service Benefit Fund

THE CONFERENCE

Noting that the Technical Assistance Board at its Fortieth Session decided that the service benefit payable to certain technical assistance field personnel should be funded, and

Noting that at its Forty - Third Session the Board agreed that the Organizations participatingin the Expanded Program of Technical Assistance may consolidate into a single fund the contributions toward future Payments of service benefits to all entitled staff, regardless of the funds from which their salaries are paid,

Approves the establishment of a single Service Benefit Reserve Fund for all entitled FAO staff members, regardless of the source from which their emoluments are paid.

648. The Conference considered the report of the Third Session of the Finance Committee and noted with satisfaction that the income of the Organization for the biennium 1958 - 59 was expected to meet the budgeted expenditure. It noted with concern, however, that several Member Governments were in arrears with their contributions, as shown in the following table.

649. The Conference appealed to Member Governments with contributions in arrears as well as to those that had not yet paid their current contributions to settle their obligations to the Organization as quickly as possible.

650. The Conference examined the proposed Scale of Contributions for the biennium 1960 - 61 which the Council had examined at its Thirty - First Session in accordance with Rule XXV.3 (i) of the Rules adopted by the Conference. The scale was derived from the United Nations Scale of Contributions of 1959 - 60 - 61 after adjustments had been made for differences in membership between the United Nations and FAO. Following the Council's recommendations, the Conference adopted the following resolution:

Resolution No. 86/59

Scale of Contributions

THE CONFERENCE

Having considered the report submitted by the Council on the proposed Scale of Contributions for 1960 - 61,

Taking into account Resolution No. 56/57 of the Ninth Session of the Conference,

Adopts for use in 1960 and 1961 the scale set out in Appendix I, which is derived from the United Nations Scale of Assessments for 1959, 1960 and 1961.

651. The Conference adopted the following resolution:

Resolution No. 87/59

Contributions of New Member Nations and Associate Members for 1960 - 61

THE CONFERENCE

Having regard to Article XVIII.2 of the Constitution,

Decides that the contributions to be paid by the new Member Nations for the financial period 7960 - 61 shall be at the following rates:

Decides that the contributions at the full rate as listed above for Cyprus, Togo, Cameroon, Nigeria and Somalia shall become payable as at the beginning of the quarter in which they submit appropriate instruments confirming their desire to be members of the Organization and their acceptance of the obligations of the Constitution;

Decides further that for the interim period during which the following nations will enjoy as a transitional measure the status of Associate Member, their assessment shall be at the following rates:

Decides that effective with the deposit of instruments referred to above, their advances to the Working Capital Fund shall be as follows:

652. The Conference noted that the contributions of the new Member Nations and Associate Members of the Organization were estimated at $100,000 for the 1960 - 61 biennium, and that the cost of servicing them for the same biennium was estimated as follows:

653. The Finance Committee had recommended that, in order to provide budgetary coverage for the additional expenditure, the budget appropriations should be increased by $96,000 and the estimate of Miscellaneous Income increased by $100,000. By so doing, the amount to be assessed to Member Governments would be slightly reduced from the level recommended by the Council at its Thirty - First Session. The Finance Committee had pointed out that the increase in Miscellaneous Income recommended above would be covered in part by the contributions of the Associate Members which, in accordance with Financial Regulation 7.1 were credited to Miscellaneous Income. In order that the full sum be covered, the Finance Committee had recommended that, exceptionally, the contributions of all the new members should accrue to Miscellaneous Income and not be included in the Scale of Contributions for 1960 - 61.

654. The Conference accepted the recommendation of the Finance Committee and passed the following resolution:

Resolution No. 88/59

Additional Income and Additional Expenditure of the Organization in Connection with the Admission of New
Member Nations and Associate Members

THE CONFERENCE

Noting that the servicing of twelve new Member Nations and Associate Members involves the Organization in unexpected expenditures,

Recognizing that no provision could be made by the Director - General for this expenditure because at the time of the preparation of the budget and its review by the Finance Committee and Council the applications for membership had not been received,

Decides that, as an exceptional measure, the contributions of all new Member Nations and Associate Members should not be included in the Scale of Contributions for 1960 - 51 but should be additional to the scale of assessments and should accrue to Miscellaneous Income, thus increasing the estimated Miscellaneous Income of the Organization for 1960 - 61 by $100,000.

655. The Conference noted that the contributions of the new full members would be included in the scale of contributions for 1962 - 63 and that the Director - General, in preparing his budget estimates for the ensuing financial period, would take account of the cost of servicing the full membership of the Organization.

656. The Conference examined the reports of the Twenty - Ninth and Thirty - First Sessions of the Council on the financing of the administrative and operational services costs under ETAP, together with a progress report from the Director - General on the action taken by the Economic and Social Council and the Technical Assistance Committee at their summer sessions in 1959, which had culminated in ECOSOC Resolution 737 (XXVIII). The Conference noted that in this Resolution ECOSOC had decided, as an interim solution, that the lump sum allocation for 1960 should not exceed the corresponding 1959 allocation; for 1961, it should be an amount half - way between the 1960 allocation and the equivalent of 12 percent of the 1959 project allocations including local costs assessments; and for 1962, it should be the equivalent of 12 percent of the 1959 project allocations including local costs assessments. In of the Organization's two - year budget cycle, ECOSOC had made an exception for FAO for the year 1961 and agreed that the lump sum allocation should be the same for 1961 as for 1960.

657. The Conference noted that the adoption of the 12 percent formula in 1962 would mean an annual loss of income to FAO under the Regular Program budget of well over $300,000 as compared with the lump sum allocation for the years 1959 to 1961.

658. Some members felt that the administrative and operational services costs relating to ETAP should gradually, be assumed by, the participating organizations as Part of their Regular Program budgets, stressing at the same time the interim nature of the solution adopted by ECOSOC at its Twenty Eighth Session. However, the majority of the delegates agreed with the position taken by the FAO Council at its Twenty - Ninth Session, namely, that ETAP should continue to bear these costs as hitherto. It was further pointed out that the absorption of the full administrative and operational services costs in the Regular Program budget would in effect mean that countries hitherto contributing to these costs in local currency and services would in future have to pay for them in convertible currency. The Director General was instructed by the Conference to convey its views to the Secretary - General of the United Nations and to maintain this position at future discussions of the Technical Assistance Committee and the Economic and Social Council.

659. The Conference noted that the Director - General, in preparing his 1962 - 63 budget estimates, would have to take into account the decision already taken by the Economic and Social Council regarding the lump sum allocation from ETAP for 1962 and any future decision regarding 1963.

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