TARIFFS AND TRADE AGREEMENT GENERAL EXECUITVE SECRETARY'S FINANCIALREPORT EXTERNALAUDITOR THEREON REPORT OF THE CONTRACTING PARTIES RESTRICTED L/1267

Transcription

1 GENERAL AGREEMENT TARIFFS AND TRADE CONTRACTING PARTIES Seventeenth Session RESTRICTED 18 August 1960 limited Distribution EXECUITVE SECRETARY'S FINANCIALREPORT ON THE 1959 ACCOUNTS and REPORT OF THE EXTERNALAUDITOR THEREON

2 Page 2/3 EXECUTIVESECRETARY'S FINANCIAL REPORT ON THE 1959 ACCOUNTS 1. The Executive Secretary hereby submits his report on the accounts of the General Agreement on Tariffs and Trade for the financial year ending 31 December The annual accounts are presented in US dollars whilst the accounting records are kept in Swiss francs. The conversion of the 1959 accounts has been calculated au the rate of Swiss francs 4.30 to one US dollar. This rate was applied as from 1 January 1959 in accordance with the decision taken by the executive heads of the Geneva-based international organizations. GENERAL FUND 3. Income and Expenditure Account (Statements 1 and 2) (i) Income a) Contributions US dollars At the adoption of the income budget 1959 contributions were assessed on contracting parties in the amount of In the course of 1959 the following countries acceded provisionally to the Agreement: Israel$ Yugoslavia and Tunisia and were assessed on a ro rata basis in the amount of 560, , Total assessment of which the Working Capital Fund has been replenished by the amount of thus leaving for financing of the 1959 budget the amount of 563, , , b)miscellaneous Income As at 31 December 1959 collections on account of the total 1959 assessment amounted to US$46, leaving an outstanding balance of US$17,026.50, Statement of contributions as at 31 December 1959 is attached as Schedule C to the accounts. Miscellaneous Income For 1959 the miscellaneous income amounted to US$25, against an estimate of U13,000. The details compared with those of 1957 and 1958 are as follows:

3 Page US dollars 1958 US dollars 1959 US dollars Sale of publications 2, , , Income from investments 11, ,558, ,29 Other income 2, ,064,04 2, Profit on exchange ,202,86 2, Refund of prior year's expenditure , , , Interest earned on the Working Capital Fund is included in the above reported "Income from investments". "Other income" for 1959 Includes the following: US dollars (a) spece rentals (b) sale of equipment (c) fifth installment in respect of rent subsidy granted by Geneve authorities 1, (d) bank interest (e) reimbursement of 1959 expenditure (f) miscellaneous , (ii)expenditure Amounts of US$34,010 and US$18,600 respectively were transferred from 1958 Surplus and brought to account as Income in accordance with the following Decisions of the CONTRACTING PATIES: Resolution of 22 November 1958 and Decision of 30 May Advances withdrawn from the Working Capital Fund to finance excess-expenditure were authorized by Decisions of the CONTRACTINGPARTIES of 20 November 1959 and 3 June 1960 and amounted to US$8,375.,02, whilst the advance of US$31,950 which was withdrawn from the Working Capital Fund during 1958 was repaid by deduction from assessed contributions for Obligations incurred amounted to US$610, To meet these Obligations, the COTRACTING PARTIES raised the original budgetary appropriations of US$575,960 by the amount of US$34, according to the following Decisions of the CONTRACTING PARTIES:

4 Page 5 US dollars Decision of 30 May 1959 (doc.i/997 and SR.14/11) 18, decisionn of 20 November 1959 (doc.l/1111 and SR.15/18) 4., Decision of 3 J-une 1960 (doc.l/1202 and SR.16/10) 11,494,56 Total 34, Statement, of Assets and Liabilities as at 31 Decembar 1959 (Statement 3) (i)assets (ii) Contributions receivable from contracting parties amounted to US36, as at 31 December This amount was at 30 April 1960 decreased to US*33, These arrears concern eight countries, of which two owing US$19, have withdrawn from the Agreement. Liabilities Provision for contributions in arrears. US$36, covers all arrears as at 31 December 1959, Reserve for.. petrietion rants. 51,04. corresponds to the staff's eatitlement as at 31 December WORKING CAPITAL FUND 5. The principal of the Fund amounted to US$199,925 as at 31 December In each and short-term investments were held an amount of 1*$94, and in Iong-term investments an amount of US$ , The long-term investments will be converted into short-term investments as and when market conditions permit. (i) Assessment Advances (ii) During 1959 advances were assessed on the following countries: Switzerland, Cambodia, Israel, Tunisia and Yugoslavia totalling US* Of this amount were still outstanding as at 31 December the advances assessed on Israel, Tunisia and Yugoslavia in the amount of US$985 US$990 and US$990 respectively. Withdrawals a) An amount of US$50,000 was withdrawn on 18 February 1959 pending receipts of contributions for the current year. This amount was repaid on 19 May 1959, b) The following amounts were withdraw to finance supplementary appropriations to the budget:

5 Page 6 (iii) US$4,000 according to Decision of the CONTRACTING PARTIES of 20 November US$4, according to Decision of the CONTRACTING PARTIES of 3 June Replenishment of the Fund The income budget for 1961 will include the amount necessary for the repayment of the withdrawals mentioned under (ii) b) above. BUILDING FUND 6. Financed through the General Fund the remaining balance as at 31 December 1959 is shown as US$2, This amount is fully committed to cover expenditure in connexion with the transformations in the basement of the Villa le Bocage. 7. Expenditure incurred In connexion with the Fifteenth Sessior of the CONTRACTING PARTIES A summary of the clearing account with the Japanese Governmu nt is as Statement 4 of the Accounts. attached (Siled) E. Wlyndham White Executive Secretary (Signed} H. Ph. Sobels Head of Administrative and Financial Services

6 GENERAL AGREEMENT ON TARIFFS AND TRADE Income and Expenditure Account for the Year ended 31 December (in dollars) US Page 7 Statement1 EXPEND ITURE INCOME `,budget expenditure 610, Excess of incomeover expanditure 8, Contributions assessed on CONTRACTING PARTIES at the thirteenth session Assessed an countries acceded subsequent to the thirteenth session Less used In repayment of advances drawn from the working Capital Fund during , , , , , , Transfer of 1958 surplus In accordance with: Resolution of 22 Noyember 1958 Decision of the CONTRACTING PARTIES of 30 May 1959 Advances drawn from the workingg Capital Fund In assordance with Decisions of the CON7RACTING PARTIES of: 20 November June 1960 Miscellanoous: Sale of publjeations income from investments Other Income Profit on exchange Refund of prior years expenditure 34, , , , , , , , LI 52, , , ,1] (Signed) E. Wyndham White ExecutiveSecretary I have examined the above Ascount.. I have obtained all the Information anid explanations that l. have required and I certify, as the result of my audit, that In my opinion this Account is correct. (Signe d) E. G. Compton (Comptroller and Auditor General, Great Britain) External Auditor (Signed) H. Ph. Sobels Read of Administrative and FInancial Services

7 Page 8 Statement 2 GENERAL AGREEMENT. ON Statement of Budoetary (in US dollars) TARIFFS AND TRADE Exependiture1959 Original Appropriations Suppluemntary Appropriations Authorized Transfers Revised Appropriations Expenditure Incurred Obligations uniquidated as at 31 December 1959 Total Expenditure Balances Section 1. Fourteenth and fifteenth session of the CONTRACTING PARTIES and meeting of the. Intersessional Committee 2. Other Interaessional meetings Total Part I 30, , , , , (5,244.91) (3,427.36) 29, , , , , , , , PART II Section 1. Salaries and sages and official travel 2. Common staff costs 3. Common services 4. Printing 5. Hospital tty.. 6. Permanent' equipment Total Part II.. * 351, , , : 19, , , , , , ( ) 17, ''.0 (554.07) ( ) (481.97) 3O,094,56 3, , , , , , , , , , , , , , , , , , GRAND TOTAL 575, , _ 610, , , = = (Signed) E. Wyndham White Executive Secretary I have examined the above Statemont. 1 have obtained all the Information and explanations that I have required and [ certify as the result of my audit, that In my opinion this Statement is correct. (Signed). E.G. Compton (Comptroller and Auditor,Gpneral, Great Britain) ExternalAuditor (Signed),., H. Ph. Sobels... Head of Administrative and-.finansial -Services

8 Cash at banks Investments (Schedule A) Contributions receivable from contracting parties Miscellaneous accounts receivable Due from Working Capital Fund Cash at banks investments (Schedule B) Miseallaneous accounts receivable ASSETS ASSETS Advance withdrawn to finance supplementary budget approprations in accordance with: Decision of 20 November 1959 Decision of 3 June 1960 Construction expenditure: New wing: Incurred 1957 n 1958 I 1959 Offices In the basement: Incurred in 1959 Due from General Fund,----(Signed). E. Wyndham White Executive Secretary 4, , Statement of Assets GENERAL AGREEMENT ON TARIFFS AND TRADE 15; , , , , , , , , , , m ,9.34 1, ,919,23 2, , , , and. Liabilities as at 31 December 1959 (in US dollars) WORKING GENERAL FUND Accounts payabl e Subscription fees received In advance Due to Building Fund Reserve for obligations outstanding as at 31 December 1959 Provision for contributions in arrears: Balance as at 1 January 1959 Add: Contributions In arrears In respect of 1959 LIABILITIES Deduct: Receipts during 1959, transferred to surplus Reserve for repatriation grant Surplus: Brought forward as at 1 January 1959 Transferred to Income Add: Excess of Income over expenditure (Statement 1) Transfer from provision for contributions In arrears Deduct: Transfer to provision for contributions tn arrears CAPITAL FUND Accounts payable: Due to General Fund Principal of Fund BUILDING FUND Principal of Fund as adopted under Resolution of 17 November 1956 I have examined the above Statemest of Asseis and Liabilities. I have obtained all the Information and explanations that I have required and I certify, as the result of my audit, that In my opinion this Statement Is correct. (Signed) E. G. Compton (Comptroller and Auditor General, Great Britain) - External Auditor LIABILITIES (Signed) 60, , H. Ph. Sobels Head of Administrative and Financial Servieces - Page 9 Statement 3 52, , , ,026,50 45, , , , , , , ,750,00 17, , , , ,300.02

9 GENERAL AGREEMENT OF TARIFFS Final Account of AND TRADE Expenditure incurred in connexion with the looting of BOP's In Tokyo (in US dollars) Fifteenth Session of the CONTRACTING PARTIES and the Third Page 10/11 Statement4 Expenses Incurred by GATT secretariat Miscellaneous expenditures Balance In favour of the Japanese government 43, , , Cost based on Geneva 18, Miscellaneous receipts 4, Payment received from the Japanese Government 30,000,00 52, (Signed) E. Wyndham White Executive Secretary H. Ph. Sobels Head of Administrative and Financial Services i have examined the above Account. I have obtained from the Executive Secretary certified copies of the vouchers In respect of the expenditure Incurred In connexion with the meetings In Tokyo, the original vouchers having been passed to the Japanese Government for their retention; I have also been provided with the details of the estimated cost based an Geneva; and I certify, as the result of my audit, that In my opinion this Account Is correct. _ E.G. i Compton (ComptrolIor and Auditor General, great Britain) External Audito,,

10 Page 12 Schedule A GENERAL AGREEMENT ON TAR IFFS AND TRADE. GENERAL FUND.. dollars) SF. 27, % Bonds, Union of South Africa 1954, due 1 March 1966/69 * 35, ½%; Bonds, International Bank for and Development 1954, due 15 April 1964/72 * 8, US: 10, Can's 20,000,00 US$ 35, /4 % Bonds, Kingdom of Sweden 1954, due 1 May 1964/ % Bonds, City of Nontreal 1955, due 1 October 1973 Reconstruct ion 3½ % Bones, International Bank for Reconstruction and Development 1954, due 1 June /4 $ Bonds, Kingdom of Norway, Extension Loan, due 1 October , , , , , , Market value as at 31 December 1959, In accordance with Certificate received from Lloyds Bank (Foreign) Limited, Geneva...7, ,530.23

11 Geneva...135, , SF. 5, " 10, , , , US: 25, Can.$ 40, US$ 13, , O2, , % Bonds, Congo Belge 1953 due 15 November 1967/78 3 % Bonds, International Bank for Reconstruction and Development 1953, due 1 December 1963/68 4 % Bonds, Union of South Africa 1954, due 1 March 1966/69 3 3/4 % Bonds, Kingdom of Sweden 1954, due 30 November 1964/69 4 % Bonds, Union of South Africa 1952, due 15 September 1964/70 4 $ Bonds, City of Montreal 1954, due 1 October 1968/72 32 % Bonds, International Bank for Reconstruction and Development 1954, due 1 June /8 Bonds, City of Montreal 1955, due 1 October ½ % Bonds, Commonwealth of Australia 1946, due 1 December % Bonds, Republic of Peru Extension Loan, due 1 January /16 % Deposit Account with Lloyds Bank (Foreign) Ltd. Geneva Market value as at 31 December 1959, In accordance with Certificate received from Lloydi Bank (Foreign) Limited, 2, , a, , , , , , , , , , GENERAL AGREEMENT ON TARIFFS AND TRADE Page 13 Schedule B WORKING CAPITAL FUND Investments held on 31 December 1959 (at cost) (In US dollars

12 Page 14/15 GENERAL AGREEMENT ON TARIFFS AND TRADE Statement of Contributions as at December 1959 (in US dollars) 1948/1949 Amounts assessed 92, , ,721, (a) (a) (b) 304, , , , , , , TOTAL 563, ,830, Collections: , , , , , , , , , , , , , , , , , ,000.0) 18, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,793, Percentage % % % % % % % $ % % % % Outstanding on 31 December , , , ?, , Percentage 4.06 % 4.13 % 0.86 % % % 3.02 % 0.96% (a) These figures do not include contributions from three countries (Korea, Philippines and Uruguay) which had not become contracting parties as at 31 December (b) This figure does not include contributions from two countries (Korea and Philippines) which had not become contracting parties as at 31 December 1953.

13 Page 16/17 REPORT OF THE EXTERNAL AUDITOR ON THE ACCOUNTS OF THE ENDED 31 DECEMBER GENERAL AGREEMENT ON TARIFFS AND TRADE FOR THE YEAR GENERAL 1. The General Agreement on Tariffs and Trade has not yet formulated its own financial regulations and the Financial Regulations of the United Nations have been applied. as far as appropriate. 'lly examination has been carried out in accordance with those regulations and with the financial Resolutions and Decisions of the CONTRACTING PARTIES. OUTTURN 2. The statement of budgetary expenditure (Statement 2) shows that obligations incurred amounted to US$610, or US$34, more than the original budget provision of US$575,960. Details of the excess expenditure are shown below: PART I Section 1. Excess Expenditure Saving (in US dollars) Fourteenth and fifteenth session of the CONTRACTING PARTIES and meeting of the Intersessional Committee 1, PART II 2. Other intersessional meetings 1, Section 1. Salaries and wages and official travel 26, Common staff costs 15, Common services 17, Printing 4, Hospitality Permanent equipment , , Net excess expenditure US$34,094,56

14 Page The CONTRACTINIG PARTIES were informed by the Executive Secretary in My 1959 and by the Budget Working Party in November 1959 of the anticipated excess expenditure and it was. pointed out that, as a result of the heavy work programme and the numerous meetings of the Committees on Expansion of Trade, expenditure on some budget items and, in particular, on recruitment of temporary staff (Part II, Section 1) and reproduction and distribution of documents (Part II, Section 3) would considerably exceed the original estimates. 4. Supplementary appropriations of US$18,600 and US$4,000 were authorized by the CONTRACTING PARTIES on 30 May 1959 and 20 November 1959 respectively, and the budgetary position as at 31 December 1959 showed excess expenditure of US$33, offset by savings of US$21,510.31, i.e. a net excess of US$ The CONTRACTING PARTIES, by Decision of 3 June 1960, approved the transfer of the savings of US$21, between sections of the budget and authorized a further supplementary appropriation to meet the nat excess of US$11; The supplementary appropriations amounting in all to US$34, were met as follows: (in US dollars) Additional contributions 2, Transfer from 1958 surplus 18, Advances drawn from the Working Capital Fund 8, Excess of miscellaneous income over estimate (US$13,000) 12,841 o27 less transfer to provision for contributions in arrest 8, , , EXPENDITUREINCURRED IN CONNEXION WITH THEFIFTEENTH SESSION OF THECONTRACTING PARTIES AND THE THIRD MEETING OF THE COMMITTEE ON BALANCE-OF-PAYMENTSRESTRICTIONS IN TOKYO 6. Statement 4 of the Accounts shows that the extra cost of this conference held in Tokyo over and above what it would have cost had it been held in Geneva was US$21,843.20, ite. expenditure incurred (net) US$39, less cost based on Geneva US$18, The extra cost of US$21, has been reimbursed by the Japanese Government, and the cost based on Geneva (U18,121.53) has been included in Statement 2 under Part I, Section 1 of the GATT budget wish to record my appreciation of the willing co-operation of the officers of the Organization during my examination. -(Signed) E.G. Compton (Comptroller and Auditor General, 4 August External Auditor Great Britain)