GENERAL AGREEMENT ON TARIFFS AND TRADE

Transcription

1 GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED L/ July 1986 Limited Distribution ADMINISTRATIVE AND FINANCIAL QUESTIONS Final Position of the 1985 Budget of the GATT 1. In accordance with the CONTRACTING PARTIES' standing instructions regarding the reporting of any savings accrued at the end of the financial period, the Director-General's proposals for the appropriation of such savings, the financial position concerning the transfer of credits between sections of the budget, and any advances made from the Working Capital Fund, the Director-General submits the following information. I. EXPENDITURE BUDGET 2. The CONTRACTING PARTIES appropriated 57,540,000 for the financial year Total obligations incurred in 1985 amounted to 54,834,089 leaving an unencumbered balance of 2,705,911. This surplus is due to savings of 2,657,711 detailed in paragraphs 3 to 6 and to the nonutilization of the provision of 200,000 for unforeseen expenditure, partially offset by excess expenditure amounting to 151,800 referred to in paragraphs 7 and 8 below. It should be noted that the above-mentioned balance of 2,705,911 had to be used to reduce the overall deficit shown on the Surplus Account. 3. Savings were made on the following sections: Swiss francs Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 12 Section 14 Salaries and wages and official missions Common staff costs Common services Printing Representation and hospitality Public information Permanent equipment Commercial Policy Training Courses International Trade Centre UNCTAD/GATT 1,731, ,741 34,750 10,439 3,274 2,604 2,721 94, ,200 2,657,

2 Page 2 4. The savings reported above call for the following comments. In October 1985 the Director-General was in a position to foresee that actual expenditure would be substantially lower than the estimates for the year, thanks to the rigour with which funds were managed by the secretariat. Upon request of the Budget Committee, in view of the contributions receipt situation, further economy measures were taken. 5. Regarding the savings made on the sections covering "Salaries and Wages and Official Missions" and "Common Staff Costs" they are mainly due to the policy adopted by the Director-General to delay the recruitment for vacant posts and from difficulties encountered in the process of selection of candidates. Moreover an amount of 640,000 for provision for movements of the index governing the post adjustment system for the Professional staff was not used. Concerning the "Commercial Policy Training Courses" the major savings are due to the fact that there was one participant less than expected and that recruitment travel charges were lower than anticipated. Additional savings accrued in respect of common services, printing, representation and hospitality etc. ) 6. The saving of 625,200 in respect of contributions to the International Trade Centre resulted from the revision of the Centre's budget estimates due to exchange rate fluctuations and other savings. 7. Excess expenditure over approved appropriations of 151,800 was incurred on the following sections: Swiss francs Section 1 Forty-first session of the CONTRACTING PARTIES 36,286 Section 2 Meetings of the Council and other meetings 115, , The excess expenditure for the Forty-first session of the CONTRACTING PARTIES was mainly due to the fact that there were two meetings of that body in 1985 rather than one as budgeted. Additional costs were incurred because the meetings were held at the ILO headquarters instead of the International Conference Centre. The higher than anticipated expenditure for meetings of the Council and other meetings was due principally to a greater number of other meetings in 1985, particularly for the Senior Officials Group, and also to meetings held simultaneously, which require outside recruitment of interpreters to service meetings taking place at a time when GATT's regular interpreters are already occupied.

3 Page 3 9. Transfers between budgetary sections of 151,800 are necessary in order to cover excess expenditure over approved appropriations on the sections mentioned in paragraph 7 above by savings on other sections. Authority is sought to increase these appropriations accordingly as follows: FROM: TO: Part II: SECRETARIAT Part I: MEETINGS Section 4 - Common staff costs Section 1 - Forty-first session 3,777 of the CONTRACTING PARTIES 36,286 Section 5 - Common services 34,750 Section 2 - Meetings of the Council and other Meetings 115,514 Section 6 - Printing 10,439 Section 7 - Representation and Hospitality 3,274 Section 8 - Public Information 2,604 Section 9 - Permanent Equipment 2,721 PART IV - COMMERCIAL POLICY TRAINING COURSES Section 12 - Commercial Policy Training Courses 94, , ,800

4 Page 4 II. INCOME BUDGET 10. Amounts totalling 57,744,554 were credited as budgetary income in 1985, exceeding the approved estimates by 204,554 as follows: Approved estimates Income credited Excess/ (shortfall) of income a) Contributions assessed on contracting parties 56,500,000 56,500,000 b) Miscellaneous income 1,040,000 1,244, ,554 57,540,000 57,744, , The net excess of miscellaneous income, amounting to 204,554 resulted from a number of items, as follows: Excess/(shortfall) of income Interest on investments Sales of publications Savings on previous year's outstanding obligations (3,004) (24,338) (45,622) (72,964) Profit on exchange Refund of staff costs for staff employed at the Centre William Rappard on behalf of other occupants Overhead contribution in respect of trust funds Miscellaneous items Net excess 125,244 58,188 3,607 90, , ,554 III. SURPLUS ACCOUNT 12. As can be seen from Annex B, budgetary savings and excess income totalled 2,910,465 in 1985.

5 Page A refund of 2,876,673 was made to the Working Capital Fund in respect of part of the advance made at 31 December It was also necessary to increase the provision for outstanding contributions by 1,884,060. 9,148 were written off in respect of unrealized loss on outstanding contributions in US dollars and 58 in respect of irrecoverable debts. 14. This led to an accumulated deficit at 31 December 1985 of 2,421,054 which was entirely covered by transfer from the Working Capital Fund. Of this amount, 561,580, representing the 1984 operating deficit, was offset by an appropriation in the 1986 budget (see documents L/5840 and L/5881). IV. WORKING CAPITAL FUND 15. In accordance with the authority contained in document L/756, paragraph 10, of 27 November 1957, which stipulates that subsequent receipts of outstanding contributions are to be credited to the Working Capital Fund to the extent necessary to reimburse the advance made, 2,876,673 were repaid to the Working Capital Fund in respect of the part of the advance made in Taking into account the interest of 118,759 credited to it, the principal of the Fund amounted to 3,044,290 at 31 December From this amount, 2,421,054 had been transferred to offset the 1984 and 1985 deficits. POINT FOR DECISION: Paragraph 9

6 ANNEX A/ANNEXE A/ANEXO A STATEMENT OF OUTSTANDING OOWnHBUTIONS AS AT 31 DECEMBER 1985/EIAT DES ARRIERES DE OCWTOIBUriONS AU 31 DECEMBRE 1985 OCNERIBUCIONES PENDIENrES AL 31 DE DICUMBRE DE ) ~-~ 00 <J\ to o os oo Country/Pays/Pals US dollars/dollars des Etats-Unis/Dolares EEUU 1969/1972 Swiss francs/francs suisses/francoa sulzos 1973/ Total 1973/1985 Argentina/Argentine Bangladesh Belixe/BSlite/Ballce Berrln/Bénln Brazli/Brêstl/Brasil Burkina Faso Burundi Caneroon/Caneroun/Caiseriin Central African Republic/République centrafrl calne/republ lca Centroafricana Chad/Tchad Congo Côte d'ivoire Cuba Dnmlnlran Republ 1 c/république Dominicaine/ Republica Danlnicana.... Gabon/Gabon Garabla/Ganbie Ghana Greece/Grèce/Grecia Guyana/Guyane Haiti/Haïti/Haiti Kampuchea Kenya Madagascar Malawi -v_.. Maldives/Maldivas 1969/ , , , , , , /1972 6, , ,553 27, , ,586 33, , , , , ,751 36, ,800 49,920 90,425 62,849 15, , , , , ,835 57, , , ,666 36, , ,040 49, , ,567 90, , , ,646 62, ,603 15,354

7 ' Country/Pays/Pals US dollars/dollars des Etats-Unis/Dolares EEUU 1969/ /1981 9wiss francs/francs sulsses/francos sulzos Total 1973/1985 tttfterla/higêrla United States of America/Etats-Unis d'améri que/ 253, ,937 61, ,680 54, ,158 48,280 11, & 21,970 1/ 92,220 1/ 388, , , , , ,544 32, , , , , , , , , , , , , ,340 32,707 IDEAL 22,312 3,110,324 1,037,831 1,367,208 2,191, ,039 11,467,114 US$22,312 at 2.09 to US$1.- equlv aient to / dollars EU à 2,09 FS par dollar EU, équivalant à/ dôlares EE.UU a 2,09 FS por dol 1/ In conformity with the payment proposal approved by the CONTRACTING PARTIES In November ïh conformité avec la proposition de paiement approuvée par les PARTIES CONTRACTANTES en novenbre Eh conforraidad con la propuesta de pago aprobada por las PARTES CONTRATANTES en noviembre de ,632 11, mj r> OQ 0> m o --J 00

8 Page 8 Balance representing part of 1984 operating deficit not covered by transfer from the Working Capital Fund Balance of 1984 operating deficit covered by transfer from the Working Capital Fund ANNEX B SURPLUS ACCOUNT (in Swiss francs) (512,722) (48,858) Offset by provision in the 1986 Budget (561,580) Excess of 1985 miscellaneous income over estimated income 204,554 Unencumbered balance on the 1985 expenditure budget 2,705,911 2,910,465 Transfer from provision for contributions in arrears in respect of receipts of arrears in ,866,830 Adjustment to provision for contributions in arrears in respect of contributions due in US dollars 9,148 Repayment to Working Capital Fund Transfer to provision for contributions in arrears in respect of 1985 contributions in arrears 1,875,978 (2,876,673) (3,760,038) 4,786,443 Write-off of unrealized loss on outstanding contributions in US dollars (9,148) Transfer to accounts receivable to write-off irrecoverable debts (6,645,859) (58) (6,645,917) (1,859,474) Accumulated deficit at 31 December 1985 (2,421,054) Covered by transfers from Working Capital Fund ,858 2,372,196 2,421,054 Balance at 31 December 1985 Nil