GENERAL AGREEMENT ON TARIFFS AND TRADE

Transcription

1 GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED L/ March 1987 Limited Distribution ADMINISTRATIVE AND FINANCIAL QUESTIONS Final Position of the 1986 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 59,592,580 for the financial year Total obligations incurred in 1986 amounted to 55,063,889 leaving an unencumbered balance of 4,528,691. This surplus is due to savings of 4,446,174 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 117,483 referred to in paragraphs 7 and 8 below. It should be noted that the above-mentioned balance of 4,528,691 had to be used to reduce the overall deficit shown on the Surplus Account mainly due to arrears in contributions. 3. Savings were made on the following sections: Swiss francs Section 3 - Salaries and wages 2,644,145 Section 4 Section 5 Section 6 Section 7 Section 8 Section 10 Section 13 Section 14 - Dispute settlement panels - Missions - Common staff costs - Common services - Printing - Permanent equipment - Commercial Policy Training Courses International Trade Centre UNCTAD/GATT 76,225 3, , , , ,086 4,446,

2 Page 2 4. The savings reported above are due in large measure to the efforts of the Director-General to maintain his policy of managing funds with the utmost rigour. 5. Savings made on the sections covering "Salaries and wages" as well as "Common staff costs" were heavily influenced by the strong decline in the US dollar vis-à-vis the Swiss franc, notwithstanding the implementation of the Remuneration Correction Factor (RCF) as from 1 September 1986, the purpose of which was to mitigate the effect of variations of exchange rates on take-home pay of staff in the Professional category and above. In addition, a number of vacant posts were not filled unless absolutely necessary. Under the section concerning "Common services", various savings were made possible as a result both of external factors, such as generally lower cost for heating, as well as economy measures in the secretariat. Also under the section of "Common services", savings were realized on the provision for electronic data processing through the International Computing Centre; they were due to the fall in the value of the US dollar against the Swiss franc and a partial non-utilization of the budgeted computer time. Concerning the "Commercial Policy Training Courses", significant savings were realized when less costly travel arrangements than originally foreseen were possible. 6. The savings of 423,086 in respect of contributions to the International Trade Centre were the result of the Centre's adoption of UN guidelines concerning budgetary reductions as well as the decline in exchange rate of the US dollar vis-à-vis the Swiss franc. 7. Excess expenditure over appropriations of 117,483 was incurred under the following sections: Swiss Section 1 - Forty-second session of the CONTRACTING PARTIES 12,374 Section 2 - Meetings of the Council and other meetings 98,051 Section 9 - Representation and hospitality 7, ,483 Francs 8. The excess expenditure for the Forty-second session of the CONTRACTING PARTIES was the result primarily of a larger number of interpreters needed for the Ministerial Meeting at Punta del Este in September than originally foreseen. The expenditure under Section 2 "Meetings of the Council and other meetings" was also in excess of provisions due to the higher than expected number of meetings, especially in respect of the Senior Officials Group as well as the Preparatory Committee meeting, prior to the above-mentioned Ministerial Meeting. With regard to Section 9 it will be recalled that the Committee on Budget, Finance and Administration was informed by the secretariat that an overspending of some 6,000 to 8,000 was foreseen on Representation and hospitality for working dinners with delegates in connection with the Preparatory Committee and Textiles Negotiations (see document L/6014, paragraph 23).

3 Page 3 9. Transfers between budgetary sections of 117,483 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: Part II: SECRETARIAT TO: Part I: MEETINGS Section 4 - Dispute settlement panels Section 5 - Missions 45,555 3,876 Section 8 - Printing 803 Section 10 - Permanent equipment 123 Section 1 - Forty-second session of the CONTRACTING PARTIES 12,374 Section 2 - Meetings of the Council and other Meetings 98,051 PART II - SECRETARIAT Section 9 - Representation and hospitality 7,058 PART IV - COMMERCIAL POLICY TRAINING COURSES Section 13 - Commercial Policy Training Courses 67, , ,483 ======== II. INCOME BUDGET 10. Amounts totalling 60,287,138 were credited as budgetary income in 1986, exceeding the approved estimates by 694,558. Approved estimates Income credited Excess of income Contributions assessed on contracting parties 58,700,000 58,700,000 Contributions assessed on contracting parties subsequent to the adoption of the scale of contributions 219,520 Miscellaneous income 892,580 1,367,618 59,592,580 60,287, , ,558

4 Page The net excess of miscellaneous income, amounting to 475,038 resulted from a number of items, as follows: Budget Actual Balance Interest on investments 250, ,771 1,771 Sale of publications 90, ,256 28,256 Profit or (loss) on exchange (150,000) 116, ,151 Savings on previous year's outstanding obligations 60, ,315 64,315 Refund of staff costs for staff employed at Centre William Rappard on behalf of other occupants 560, ,790 63,790 Rental of meeting rooms and office space at Centre William Rappard to others 20,000 16,980 (3,020) Others 62, ,355 53, ,580 1,367, ,038 III. SURPLUS ACCOUNT 12. As can be seen from Annex B, budgetary savings and excess income totalled 5,223,249 in A refund of 1,859,474 was made to the Working Capital Fund in respect of part of the advance of 2,421,054 made at 31 December 1985, the remainder of which, 561,580 was financed from a provision in the 1986 Budget. It was also necessary to increase the provision for outstanding contributions by 5,689,250. 9,148 were written off in respect of unrealized loss on outstanding contributions in US dollars and 15,000 due to the abrogation of a sales contract made in 1984 for a used printing machine. The machine was retrieved to GATT. 14. This led to a deficit at 31 December 1986 of 2,349,623 which was entirely covered by a transfer from the Working Capital Fund.

5 Page 5 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, a total amount of 2,421,054 was repaid to the Working Capital Fund in respect of the advance made in 1984, of which 561,580 were financed from a provision in the 1986 Budget and 1,859,474 from the 1986 Surplus Account. 16. Taking into account the interest of 101,521 credited to it, the principal of the Fund amounted to 3,224,561 at 31 December From this amount, 2,349,623 had been transferred to offset the 1986 deficit and 61,501 was advanced to the General Fund to cover cash shortfall. POINT FOR DECISION: Paragraph 9

6 STATEMENT OF OUTSTANDING CONTRIBUTIONS AS AT 31 DECEMBER 1986/ETAT DES ARRIERES DE CONTRIBUTIONS AU 31 DECEMBRE 1986 CONTRIBUCIONES PENDIENTES AL 31 DE DICIEMBRE DE 1986 Contracting Parties and Associated US dollars/dollars des Swiss francs/francs suisses/francos suizos Governments/Parties Contractantes et Etats-Unis/Dólares EEUU Gouvernements associés/partes 1969/ / Total Contratantes y Gobiernos asociados¹/ 1973/ , ,438 40, ,840 58,921 47, , , , , , , , , , ,106 40, , , , , , , , ,086 58, ,043 47, , , , ,691 L/6142 Page 6 ANNEX A/ANNEXE A/ANEXO A Bangladesh. Belize/Bélize/Belice Benin/Bénin Brazil/Brésil/Brasil Burkina Faso... Burundi.. Central African Republic/République centrafricaine/república Centroafricana.. Chad/Tchad.. Colombia/Colombie Congo Côte d'ivoire. Cuba.. Dominican Republic/République República Dominicana. Gabon/Gabón. Gambia/Gambie. Ghana Guyana/Guyane. Haiti/Haïti/Haiti.. Kampuchea.. Kenya Madagascar.. Malawi Maldives/Maldivas.. Mauritania/Mauritanie Mexico/Mexique/México Nicaragua.. Niger/Niger. 1969/1972 Dominicaine/ / , 815 6, , , , , , , , , ,756 33, , ,107 51,738 5,250 ¹/ 5, ,021 49, ,800 ¹/ 67,800

7 Contracting Parties and Associated US dollars/dollars des Swiss francs/francs suisses/francos suizos Governments/Parties Contractantes et Etats-Unis/Dólares EEUU Gouvernements associés/partes 1/ 1969/ / Total Contratantes y Gobiernos asociados1/ 1973/ ,312 3,940,575 1,198,069 1,706, ,102 7,738,466 17,165,512 US$22,312 at 1.68 to US$1.- equivalent to / dollars EU à 1,68 FS par dollar EU, équivalant à/ dólares EE.UU a 1,68 FS por dólar, que equivalen a 1/In conformity with the payment proposal approved by the CONTRACTING PARTIES in November 1982 En conformité avec la proposition de paiement approuvée par les PARTIES CONTRACTANTES en novembre 1982 En conformidad con la propuesta de pago aprobada por las PARTES CONTRATANTES en noviembre de ,484 17,202,996 L/6142Page 7 Nigeria/Nigéria 388, , ,520 1,533,570 Peru/Péou/Perú/66,470 92, , , , ,750 Philippines/Filipinas.. 120, , ,949 Romania/Roumanie/Rumania 422, ,640 Rwanda 2,823 2,82,3 Senegal/Sénégal. 114, ,708 Sierra Leone/Sierra Leona 353, ,180 Suriname..67, ,240 Tanzania/Tanzanie/Tanzania 107, ,939 Togo. 63, ,300 Trinidad and Tobago/Trinité-et-Tobago/ Trinidad y Tabago. 39,071 39,071 Tunisia/Tunisie/Túnez 23,920 23,920 Uganda/Ouganda. 177,328 60,840 67, ,658 United States of America/Etats-Unis d'amérique/ Estados Unidos de América 2,953,890 2,953,890 Zaire/Zaire , ,780 Zambia/Zambie 13,932 84,372

8 Page 8 Balance at 1 January 1986 ANNEX B SURPLUS ACCOUNT (in Swiss Francs) NIL Contributions assessed on contracting parties subsequent to the adoption of the 1986 scale of contributions: Mexico (L/6040) Hong Kong (L/6014) Offset by a reduction of contribution assessed on the United Kingdom 219, ,460 (618,460) Excess of 1986 miscellaneous income over estimated income 475,038 Unencumbered balance on the 1986 expenditure budget 4,528,691 5,223,249 Transfer from provision for contributions in arrears in respect of receipts of arrears in ,040,068 Adjustment to provision for contributions in arrears in respect of contributions due in US dollars 9,148 2,049,216 7,272,465 Repayment to Working Capital Fund (1,859,474) Transfer to provision for contribution in arrears in respect of 1986 contributions in arrears (7,738,466) Write-off of unrealized loss on outstanding contributions in US dollars (9,148) Write-off due to the abrogation of a sales contract made in 1984 for a used printing machine (15,000) (9,622,088) Accumulated deficit at 31 December 1986 (2,349,623) Covered by transfer from Working Capital Fund 2,349,623 Balance at 31 December 1986 NIL