GENERAL AGREEMENT 0N TARIFFS AND TRADE

Transcription

1 ON THE 1966 ACCOUNTS GENERAL AGREEMENT 0N TARIFFS AND TRADE DIRECTOR-GENERALS FINANCIAL REPORT RESTRICTED L/ August 1967 Limited Distribution Original: English and REPORT OF THE EXTENAL AUDITOR THEREON

2 DIRECTOR-GENERAL'S FINANCIAL REPORT ON THE 1966 ACCOUNTS L/2823 Page 2/3 I. The Director-General hereby submits his report on the accounts of the General Agreement on Tariffs and Trade for the financialyearended 31 December The annual accounts are presented in US dollars. The accounting records are kept in Swiss francs; the conversion of the 1966 accounts has been calculated at the rate of Swiss francs 4.32 to one US dollar. This rate has been applied since 1 January 1962in accordance with the decision taken by the Controller of the United Natlons, subsequently followed by the Geneva-based specialized agencies. GENERAL FUND 3. lncome and Expenditure Account (Statements 1 and 2) (i) (a) Contributions US dollars At the adoption ofincome the budget, 1966 contributions were assessed on contracting parties in the amount of Subsequently, additional contributions were assessed on contracting parties in respect of the InternationalTrade Centre in the amount of During 1966 the following contributions were assessed on two new contracting parties: Rwanda Guyyana Deduct:: Adjustment of the United Kingdom due to the accession to GATT of Guyana contribution US dollars 2,500 1, 507 2,233,000 93,350 3,171 2,329,521 Of the total assessed contributions for 1966, collections as at 31 December 1966 amounted to US$2,208,

3 Page 4 (ii) (b) Miscellaneous income For 1966 miscellaneous income amounted to US$49, against an estimate of US$44,000. The excess of income over the estimate was mainly due to the increased income from investments as a consequence of the high interest rates obtained on short-term investments in The details compared with those of 1964 and 1965 are as follows: Sale of publications Income from investments Profit on sale of securities Profit or loss on exchange Savings on previous years outstanding obligations Other income reported "Income 1964 US dollars 9, , , (416.28) 1, , , US dollars 7, , , , , , US dollars 8, , , , , , Interest earned on the Working Capital Fund is included in the above from investments. The following securities were realized in 1966: US$3,000-3½per cent Bonds, Commonwealth of Australia 1946, due 1 December "Other income" for 1966 includes the following: Bank interest on current accounts Staffleaned to various organizations Refund of prior year's expenditure Space rentals Work done for delegations and others Sale of waste paper US dollars 1, , , (a) As shown on Statement 2, obligations incurred in 1966 totalled US$2,464,791, of which US$106, were unliquidated as at 31 December Excess expenditure over the original budget

4 Page 5 appropriations of US$2,27,000 and the supplementary appropriations of US$93,350 in respect of the International Trade Centre amounted to US$94,441, of which the CONTRACTING PARTIES had authorized additional expenditure estimated at US$81,680 in respect of new salary scales for the professional category and above (L/2513 and L/2636). Excess expenditure over authorized credits of US$2,452,030 (US$2,277,000, US$93,350 and US$,81,60) thus amounted to US$12,761 and was covered by the authority granted to the Director-General under paragraph 5(b) of the Resolution of 17 November 1956 governing the use of the Working Capital Fund. This excess expenditure was due to (a) the very considerable number of temporary appointmentss which had to be made on an ad hoc basis all through the financial year, (b) the high cost of repatriation of a number of staff members upon separation, and (c) the exceptionally high number of documents reproduced and distributed. To meet the excess expenditure of US$949,414 referred to above the CONTRACTING PARTIES authorized the use of the. excess of actual 1966-miscellancous income over estimated income (a) (US$5,356.87), (b) the additional contributions assessed during 1966 (US$3,171), and (c) an amount- of US$85, from the Wrorking Capital Fund (Decision of 26 June documents L/2761 and C/M /41). (b) Subsidies to the two staff canteens in the form of free accommodation, electricity, heating, water supply, insurance premiums, etc. were charged to the relevant budget items in in addition, expenditure was incurred for the purchase of equipment-(us$795.75) and for overtime worked by the cafeteria staff during meetings (US$40.23). 4, Statement of Assets and Liabilities as at 31 December 1966 (Statement 3) (i) Assets (a) Contributors reseivable fromcontracting parties amounted to US$;158, as at 31 December These arrears concerned the following countrices

5 Page 6 Australia Burma Chad Chile Dahomey, Dominican Republic Ghana. Greece Guyana Haiti India Indonesia Italy Ivory.Coast Kenya Kuwait Malawi Mauritania Peru Rhodesia. Rwanda Trinidad and Tobago Tunisia Upper Volta Uruguay , , , , , , , , , , , _ _ 1, , , , , , , , , , , , , _ 7, , , , , , Total 1, , , , , , , , , , , , , , , , , , , (b) (c) Contributions receivable from countries having withdrawn from the Agreement Syria still owes US$5, in respect of 1950 and Miscellaneous accounts receivable Miscellaneous accounts receivable as at 31 December 1966 amouted to US$36,993.15, representing education grant advances of US$9,244.21, travel advances of US$3,937.27, prepaid 1967 expenditure of US$2, and other small items of US$7, Outstanding invoices in respect of sale of publications and services rendered amounted to US$13,182.71, of which invoices for US$11, were issued in 1966 and US$1, in 1965 and earlier.

6 (ii) Liabilities (a) Provision for contributions in arrears US$163, cover all contributions in arrears as at 31 December (b) Loans in respect of buildings L/2823 Page 7 Of the interest-free loan of US$220, (Swiss francs 951,50.25) granted by the Geneva authorities to finance the construction of the first Annex for the secretariats the balance to be reimbursed amounted to US$57, (Swiss francs 248,410.25) at 31 December As regards the construction of the second Annex, of the total loan of US$145,000 (Swiss francs 626,400) granted in 1965 by the FIPOI (Fondation Immobili3re pour les Organisations Internationales) at an interest of 3½ per cent, the balance to be reimbursed amounted to US$116,000 (Swiss francs 501,120) at 31 December WORKING CAPITAL FUND 5. The principal of the Working Capital Fund amounted to US$.353,509 as at 31 December In addition, an amount of US14, resulting from the revised assessment of advances to the Fund (document L/2482), and US$ resulting from the dissolution of the former Federation of Rhodesia and Nyasaland stood to the credit of Governments' accounts. US$8, were held in cash and US$90, in long-term investments. (i) Assessment of advances In accordance with the Decision of the CONTRACTING PARTIES (document 1/2482 adopted by the CONTRACTING PARTIES on 10 December 1965) the level of the Working Capital Fund was increased to US'.350,000 by the assessment of additional advances on contracting parties. Further advances of US$1,750 and US$1,759 were assessed on Rwanda and Guyana respectively. At 31 December 1966 eighteen contracting parties had not paid their shares, totalling US$11,909.96, (ii) Withdrawals In accordance with the Decision of the CONTRACTING PARTIES US$85, were advanced in 1966 to finance part of the supplementary budget appropriations. in addition, under the authority contained in document L/756, paragraph 10, dated 27 November 1957, US$39, were advanced to increase the

7 Page 8 provision for contributions in arrears as at 31 December (The authority stipulates that subsequent receipts on such outstanding contributions are to be credited to the Working Capital Fund to the extent necessary to reimburse the advance made.) Of these advances, totalling US$125,859,22, an amount of US$67, had been paid into the General Fund by 31 December 1966 leaving a balance due from the Working Capital Fund to the General Fund at that date of US$57, At 31 December 1966 a total of US$315, had been advanced. Of this amount US$19, will be repaid out of the 1967 budget, US$85, out of the 1968 budget and US$39, from receipts of contributions in arrears as referred to above. E. Wyndham White H.Ph. Sobels, Director-General Director, Administrative and Financial Division

8 Page 9 CERTIFICATE OF THE EXTERNAL AUDITOR ON THE ACCOUNTS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 1966 The appended Statements, numbered 1 to 3, have been examined in accordance with my directions. I have obtained all the information and explanations that I have required, and I certify, as a result of the audit, that, in my opinion, these Statements are correct. B.D. Fraser (Comptroller and Auditor General, Great Britain) External Auditor

9 Page 10/11 GENERAL AGREEMENT ON TARIFFS AND TRADE Income and Expenditure Account for the Year ended 31 December 1966 (in US dollars) Statement 1 EXPENDITURE 1966 budget expenditure 2,464, INCOME Contributions assessed on contracting parties 2,326, Additional contributions a subsequent to adoption of Miscellaneous: Sale of publications Income from investments Profit on exchange Savings on unliquidated Cther income sed on countries le of contributions obligations , , , , , , , Advance from. Working Capital Fund to finance supplementary Budget appropriations 85, ,464, ,464, E. Wyndham White Director-General Director, H.Ph. Sobels Administrative and Financial Division

10 Page 12 GENERALAGREEMENT ON TARIFFSAND TRADE Statement of Budgetary Expenditure 1966 (in US dollars) Statement 2 Original Appropriations Supplementary Appropriations Authorized Transfers Revised Appropriations Expenditure Incurred Obligations Unliquidated as at 31 December 1966 Total Expenditure Balances PART I - MEETINGS Section 1. PART II Section Twenty-third session of the CONTRACTNG PARTIES 2. Meetings of the Council anc other meetings 3. Trade Negotiations Conference SECRETARLIAT Total PART I 1. Salaries and wages and official travel 2. Common staff costs 3. Common services 4. Printing - 5. Representation and hospitality 6. Permanent equipment Total PART II 20, , , ,468, , , , , , ,092, , , , , , _, 9_,_41.0 (9,504.31) (7, ) (16,916.09) 4, , ( ) (7,945.08) 17, , , , , ,573, , , , , , ,297, , , , , ,570, , , , , , ,197, , , , , , , , , , , , , , , 573, , , , , , ,297, PART 11 - BUILDINGS Section 1. Annuity to Canton of Geneva in respect of first annex 2. Annuity to FIPOI in respect of second annex Total PART III 23, , , (351.85) (451.12) (802.97) 23, , , , , , , , , PARTIV - WORKING Section 1. CAPITAL FUND Reimbursement of withdrawal 48, (.23) 43, , , GRAND TOTAL 2, == === = - 93, , ,464, ,357, , ,464, E. Wyndham White Director-General Director, H.Ph. Sobels Administrative and Financial Division

11 Cash in hand Cash at Banks and Postal Cheque Account Investments (Schedule A) ASSETS Contributions receivable from contracting parties Contributions receivable from contracting parties having withdrawn from the Agreement Miscellaneous accounts receivable Due from Working Capital Fund Buildings : First Annex Construction cost Deduct : Amortization Second Annex : Construction cost Deduct : Amortization 158, , , , , , GENERAL AGREEMENT ONTARIFFS TRADE Statement of Assets and Liabilities as at 31 December 1966 (in US dollars) , , , , , , , GENERAL FUND Miscellaneous accounts payable Contributions paid in advance Loans in respect of Buildings : First Annex : Loan from Geneva authorities Deduct : Reimbursement Second Annex : Loan from "Fondation Immobili3re pour les Organisations Internationalesn Deduct : Reimbursement Advance from Working Capital Fund Reserve for 1966 obligations outstanding as at 31 December 1966 : Per Statement 2 LIABILITIES 220, ,740,74 145, , , , L2823 Page 13 Statement 3 18, , , , , , Provision for contributions in arrears : Balance as at 1 January 1966 Deduct : Receipts of arrears during 1966 Surplus: Add :1966 contributions in arrears Advance from Working Capital Fund Transfer to provision for contributions in arrears 123, , ,448,17 39,946,09 39, , NIL 623, Cash at Banks Investments (Schedule B) Accounts receivable : 8, , WORKING CAPITAL FUND Accounts payable : Due to General Fund Due to Zambia Due to contracting parties (document L/2324) (document L/2482) 57, , , Advance Due from General Fund : Advance withdrawn to finance construction of second Annex Advances to finance supplementary budget appropriations : in 1965 in 1966 Advance to cover increase of provision for contributions in arrears assessed on contracting parties 129, , , , , , , principal of Fund : Brought forward as at 1 January 1966: Sums held to the credit of GATT Advances made by contracting parties Add : Additional assessment on contracting parties Additional assessment on new members in , , , , , , E. Wyndham White Director-General H.Ph. Sobels Director, Administrative and Financial Division

12 L/2523 Page 14/15 Schedule A GENERAL AGREEMENT ON TARIFFS AND TRADE GENERAL FUND Investments held on 31 December 1966 (in US dollars) (at cost) SF. 27, % US$ Bonds, Union of South Africa 1954, due 1 March 1966/69 10, /8% Bonds, City of Montreal 1955, due 1 October 1973 can$ 20, /2% Bonds, International Bank for Reconstruction and Development 1954, due 1 June , , , Market value as at 31 December in accordance with Certificate received from Lloyds Bank (Europe) Limited, Geneva...; 31,722.00

13 Extension Loan L/2823 Page 16 GENERAL AGREEMENT ON TARIFFS AND TRADE WORKING CAPITAL FUND Investments held on 31 December 1966 (at cost) (in US dollars) SF % Bonds. Congo Belge 1953, due 15 November 1967/78 SF. 13, % Bonds. Union of South Africa 1954, due 1 March 1966/67 SF. 30, % Bonds, Union of South Africa 1952, due 15 September 1964/70 US$ 25,.00 4% Bonds, city of Montreal due 1 October 1968/72 Can$ 40, /2% Bonds, InternationalBank for Reconstruction and Development 1954, due 1 June 1969 US$ 13, /8% Bonds, City of Montreal 1955, due 1 October 1973 US$ 2, % Bonds, Republic of Peru due 1 January 1997 Schedule B , , , , , Market value as at: 31 December 1966, in accordance with Certilficate received from Lloyds Bank (Europe) LmIted, Geneva

14 Page 37 GENERAL AGREEMENT ON TARIFFS TRADE Statement of Contributions as at 31 December 1966 (in US dollars) Schedule C Amount assessed 1948/ , / ,124, ,187, ,341,601. 1,755, ,329, Total 13, Collecticnst , , , , , , , , , , , , , , , ,070, , , , ,115, , , , ,261, , ,67, , ,208, , , , , , , , , , , , , ,232,59 1, ,31 1,167, ,324, ,766, ,289, , ,793, ,119, ,178, ,352, ,41, ,208, ,092,772,99 Percentage 59.26% 100% % 99.23% 94.79% 98.77% on December , , , , , ,624,76 Percentage 0.74% 0.50% 0.59% 0,9% 5.21%i 1.23%

15 Page 18/19 REPORT OF THE EXTERNAL AUDITOR ON THE ACCOUNTS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE FOR THE YEAR ENDED 31 DECEMBER In accordance with the Decision of the CONTRACTING PARTIES, the Financial Regulations and Rules of the United Nations are, as far as appropriate and for the time being, applied to the financial administration of the secretariat to the General Agreement on Tariffs and Trade. My examination has been carried out in accordance with those regulations and rules and with the financial Resolutions and Decisions of the CONTRACTIG PARTIES. OUTTURN 2. The CONTRACTING PARTIES originally appropriated US$2,277,000 for 1966 but subsequently increased this by US$93,350, matohod by increased contributions, to provide for the expanding activities of the International Trade Centre. Total authorized appropriations were thus US$2,370,350 but in the outcome expenditure (US$2,464,791) exceeded this by US$94,441. The CONTRACTING PARTIES had, however, without making actual appropriations, authorized the implementation of improved salary scales in line with those agreed for the United Nations, the extra cost to be met from savings or through transfer between budget items or, if this should prove impossible, by recourse to the Working Capital Fund. Supplementary appropriations to meet the whole of the US$94,441 excess, together with transfers between Sections, as shown in Statement 2, were approved by the Council at their meeting in June 1967 (C/M/41). 3. Provision was Ode for the budget appropriations of US$2,370,350 to be financed from contributions of US$2,326,350 and miscellaneous income of US$44,000. At their meeting in June 1967 the Council approved the financing of the supplementary appropriations of US$94,441, as follows: (a) from the excess of actual miscellaneous income over estimated miscellaneous income, US$5, (b) from additional contributions assessed during 1966, US$3, and (c) by an advance from the Working Capital Fund of US$85, CONTRIBUTIONS OUTSTANDING (Statement 3 and Schedule C) 4. Contributions outstanding including those from countries having withdrawn from the Agreement) increased by $39,946.09, from US$123, at 31 December 1965 to US$163, at 31 December The amount of 1966 contributions unpaid at the end of the year was US$121, representing

16 Page per cent of the assessed contributions: the corresponding figure for the previous year was US$,78, (4.5 per cent). Details of the contributions in arrear are given in paragraph 4 of the -Director-General's Financial Report. LIQUID FUNDS (Statement 3) 5. As stated in paragraphs2 and 3 above, approval was given to recourse to the Working Capital Fund to the extent of US$85, to cover the balance of excess expenditure in Afurther advance from the Fund of $39, was also required to cover the increase in the a.nunt of contributions-outstanding referred to in paragraph 4 above. The liquid resources of the Fund were, however, insufficient to meet these demands. as stated in paragraph 5 of the Director-General's Financial Report, of these advances totalling US$125,859.22, an amount of US$67, had been paid into the General Fund by 31 December 1966 leaving a balance of US$57, due front the Working Capital Fund to the General Fund. At the same time, the liquid resources of the General Fund-were also inadequate. The cash balance of US$95,54.33 at 31 December 1966 was largely the result of two special arrangements made to meet the situation: (i) b contracing party paid $100,000 in 1966 on account of its 1967 contributions; and (ii) sone $40,000 of the $106, obligations outstanding at 31 December 1966 were accounted for by invoices due for payment in 1966 but delayed until 1967 by agreement with the creditors. Proposals for improving the overall liquidity position at the end of the year have been put forward by the Director-General (1/2752, dated 21 February 1967) at the request of the Committee on Budget, Finance and Administration. The proposals include means of reducing calls upon the Working Capital Fund to finance supplementary expenses and of increasing; the level of the Fund. SUPPLIES, EQUIPMENT AND STOCK RECORDS 6. Test exminations of the supplies, equipment and stock records maintained by the organization have been carried out by my officers with satisfactory results. 7. I wish to record my appreciation of the willing co-operation given by the officers of the organization during as, audit. 1 August B.D. Fraser (Comptroller and auditor General, Great Britain) External auditor