Hundred and Sixty-seventh Session. Rome, May 2017
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1 May 2017 FC 167/INF/2 E FINANCE COMMITTEE Hundred and Sixty-seventh Session Rome, May 2017 Report of the Executive Director on the Utilization of Contributions and Waivers of Costs (General Rules XII.4 and XIII.4 (h)) Queries on the substantive content of this document may be addressed to: Mr Nicholas Nelson Director, Finance and Treasury Division World Food Programme Tel: This document can be accessed using the Quick Response Code on this page; an FAO initiative to minimize its environmental impact and promote greener communications. Other documents can be consulted at
2 2 FC 167/INF/2 EXECUTIVE SUMMARY Information is provided to the Finance Committee and the Executive Board in accordance with General Rules XII.4 and XIII.4 (h) on i) the use of unrestricted cash resources to purchase commodities (General Rule XII.4); ii) contributions of commodities or services only from governments of developing countries, countries with economies in transition and other non-traditional donors (General Rule XIII.4 (f), and iii) waivers of indirect support costs for contributions in kind to cover direct support costs (General Rule XIII.4 (g)). GUIDANCE SOUGHT FROM THE FINANCE COMMITTEE The Finance Committee is invited to take note of this information document. Draft Advice In accordance with Article XIV of the General Regulations of WFP, the Finance Committee takes note of the Report of the Executive Director on the Utilization of Contributions and Waivers of Costs (General Rule XII.4 and XIII.4 (h)).
3 Executive Board Annual Session Rome, June 2017 Distribution: General Date: 28 April 2017 Original: English Agenda Item 6 WFP/EB.A/2017/6-K/1 Resource, Financial and Budgetary Matters For information Executive Board documents are available on WFP s Website ( Report of the Executive Director on the Utilization of Contributions and Waivers of Costs (General Rules XII.4 and XIII.4 (h)) Introduction 1. This report provides information to the Board in accordance with General Rules XII.4 and XIII.4 (h) on: i) the use of unrestricted cash resources to purchase commodities (General Rule XII.4); ii) contributions of only commodities or services from governments of developing countries, governments of countries with economies in transition and other non-traditional donors (General Rule XIII.4 (f)); and iii) waivers of indirect support costs (ISC) for in-kind contributions to cover direct support costs (General Rule XIII.4 (g)). Use of Unrestricted Cash Resources to Purchase Commodities in Developing Countries (General Rule XII.4) 2. Under General Rule XII.4, the Executive Director is responsible for making the optimum use of available resources in commodities, cash and services. The Executive Director may use unrestricted cash resources to purchase commodities as much as possible from developing countries and shall report such purchases to the Board. This document reports on the use of unrestricted cash resources for the development programme category. 3. In 2016, USD 6.4 million of unrestricted cash was available, compared to USD 3.3 million in Of this total, USD 2.7 million, or 43 percent, was utilized to purchase food from developing countries, down from USD 2.8 million and 87 percent in The remaining USD 3.6 million, or 57 percent, was used for purchases from developed countries, compared to USD 0.4 million or 13 percent in Details are shown in Table Further information on purchases of commodities from developing countries from all cash resources and under all programme categories is included in the Annual Performance Report for 2016 (WFP/EB.A/2017/4). Focal point: Mr N. Nelson Director Finance and Treasury Division tel.: World Food Programme, Via Cesare Giulio Viola, 68/70, Rome, Italy
4 WFP/EB.A/2017/6-K/1 2 TABLE 1: USE OF UNRESTRICTED CASH RESOURCES FOR THE PURCHASE OF COMMODITIES UNDER GENERAL RULE XII.4 IN 2016 DEVELOPMENT PROGRAMME CATEGORY (USD) Purchased from Developing countries Developed countries Argentina Belgium Benin Burkina Faso Canada China France Ghana India Indonesia Japan Liberia Mozambique Nepal Pakistan Russian Federation Rwanda Senegal South Africa United States of America Zambia Total GRAND TOTAL Percentage Total GRAND TOTAL Percentage
5 WFP/EB.A/2017/6-K/1 3 Contributions or Services from Governments of Developing Countries, Governments of Countries with Economies in Transition, and Other Non-Traditional Donors (General Rule XIII.4 (f)) 5. Many governments of developing countries or countries with economies in transition, and other non-traditional donors support WFP operations through in-kind contributions of commodities or services under General Rule XIII.4 (f). In 2016, the value of such contributions was USD million under twinning arrangements, up from USD million in In-kind commodities and services were matched with USD 79.4 million of cash contributions from other donors, up from USD 66.0 million in 2015, and USD 0.2 million from the Emerging Donor Matching Fund (EDMF), down from USD 2.4 million in There was no ISC waived on these contributions in ISC waived in 2015 on such contributions was USD 0.3 million. Donor TABLE 2: CONTRIBUTIONS MADE IN 2016 UNDER GENERAL RULE XIII.4 (f) (USD) Commodity/ service value Other costs and ISC covered by Other donor EDMF * ISC Waived Bangladesh Cambodia Ethiopia International Committee of the Red Cross Sudan Kenya Malawi Nepal Nicaragua Pakistan Sri Lanka Zambia Zimbabwe TOTAL TOTAL * The Emerging Donor Matching Fund provided finance for the associated costs of these contributions. Waivers of Indirect Support Costs for In-Kind Services and Non-Food Items (General Rule XIII.4 (g)) 6. WFP s operations were augmented through in-kind services and non-food items. In 2016, total contributions received for in-kind services and non-food items increased to USD 20.9 million, compared to USD 17.4 million in The total value of waivers of ISC granted in 2016 increased to USD 1.8 million, compared to USD 1.2 million in Table 3 provides the details by donor agency, recipient country, value and ISC waived.
6 WFP/EB.A/2017/6-K/1 4 TABLE 3: WAIVERS OF ISC IN RESPECT OF CONTRIBUTIONS IN-KIND TO COVER DIRECT SUPPORT COSTS UNDER GENERAL RULE XIII.4 (g) IN 2016 (USD) Donor Recipient country/region Value ISC waived Australian Civilian Corps (ACC) Lebanon Canada's Civilian Reserve (CANADEM) Central African Republic Ethiopia Haiti Headquarters Rome Nigeria South Sudan Tajikistan Crisis Management Centre (CMC) Sierra Leone Danish Emergency Management Agency (DEMA) Haiti Danish Refugee Council (DRC) Bangkok Regional Bureau Central African Republic Djibouti Haiti Malawi Mozambique Nigeria South Sudan Switzerland Ericsson Response Haiti German Federal Agency for Technical Relief (THW) Icelandic Crisis Response Unit (ICRU) Information Management and Mine Action Programs Inc. Haiti Headquarters Rome Headquarters Rome Cairo Regional Bureau Lesotho Nairobi Regional Bureau Johannesburg Regional Bureau Syrian Arab Republic Irish Aid Djibouti Ghana Haiti Jordan Nigeria Syrian Arabic Republic
7 WFP/EB.A/2017/6-K/1 5 TABLE 3: WAIVERS OF ISC IN RESPECT OF CONTRIBUTIONS IN-KIND TO COVER DIRECT SUPPORT COSTS UNDER GENERAL RULE XIII.4 (g) IN 2016 (USD) Donor Recipient country/region Value ISC waived Timor-Leste Turkey United Arab Emirates MasterCard Lebanon Norwegian Refugee Council (NRC) Armenia Burundi Cairo Regional Bureau Cameroon Chad Democratic Republic of the Congo Democratic Republic of the Congo Ethiopia Haiti Headquarters Rome Iraq Lao People s Democratic Republic Malawi Niger Nigeria Pakistan Sierra Leone Zimbabwe PostNL Headquarters Rome Quintiq Headquarters Rome RedR Australia Bangkok Regional Bureau Central African Republic Ethiopia Fiji Headquarters Rome Johannesburg Regional Bureau Lao People s Democratic Republic Papua New Guinea Switzerland
8 WFP/EB.A/2017/6-K/1 6 TABLE 3: WAIVERS OF ISC IN RESPECT OF CONTRIBUTIONS IN-KIND TO COVER DIRECT SUPPORT COSTS UNDER GENERAL RULE XIII.4 (g) IN 2016 (USD) Donor Recipient country/region Value ISC waived Syrian Arabic Republic Timor-Leste Uganda Ukraine United Arab Emirates Zimbabwe Renault Trucks Headquarters Rome Royal DSM N.V (DSM) Headquarters Rome Stop Hunger Headquarters Rome Swedish Civil Contingencies Agency (MSB) Swiss Agency for Development and Cooperation (SDC) Algeria Cameroon Central African Republic Chad Ethiopia Headquarters Rome Iraq Lebanon Mozambique Nairobi Regional Bureau Nigeria Somalia South Sudan Swaziland Ukraine Ukraine Zimbabwe Afghanistan Bangkok Regional Bureau Colombia Democratic Republic of the Congo Ecuador Haiti Johannesburg Regional Bureau Jordan Madagascar
9 WFP/EB.A/2017/6-K/1 7 TABLE 3: WAIVERS OF ISC IN RESPECT OF CONTRIBUTIONS IN-KIND TO COVER DIRECT SUPPORT COSTS UNDER GENERAL RULE XIII.4 (g) IN 2016 (USD) Donor Recipient country/region Value ISC waived United Kingdom's Department for International Development (DFID) Madagascar Myanmar Nairobi Regional Bureau Nepal Niger Pakistan Somalia Sudan Syrian Arabic Republic Uganda United Arab Emirates Ethiopia Sierra Leone UPS Haiti USAID Liberia TOTAL TOTAL
10 WFP/EB.A/2017/6-K/1 8 Acronyms Used in the Document DSC direct support costs EDMF Emerging Donor Matching Fund ISC indirect support costs F-EBA E
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