World Health Organization ),)7<7+,5' :25/' +($/7+ $66(0%/< Provisional agenda item 14.1 A53/17* 31 March 2000
Financial Report and Audited Financial Statements for the period 1 January 1998 – 31 December 1999 and Report of the External Auditor to the World Health Assembly
_____________ *Information on income received and expenditure incurred during 1998-1999 under extrabudgetary sources of funds is contained in the Annex (document A53/17 Add.1), which accompanies and forms part of the Financial Report for the biennium.
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Financial Report and Audited Financial Statements for the Financial Period 1 January 1998 – 31 December 1999 and Report of the External Auditor to the World Health Assembly
CONTENTS DIRECTOR-GENERAL’S REPORT .................................................................................................................... AUDITED FINANCIAL STATEMENTS AND SCHEDULES AND NOTES TO THE ACCOUNTS ........... Certification of Financial Statements ................................................................................................................ Letter of transmittal........................................................................................................................................... Opinion of the External Auditor........................................................................................................................ Statement of Objectives and Activities and accounting policies....................................................................... Statement I: Consolidated statement of income and expenditure and changes in fund balances all sources of funds for the financial period 1998-1999........................................................ 4 6 7 8 9 10 12 14 16 18 20 22 25 26 29 30 32 50 51 52 53 59 60 63 64 66 68
Statement I.1: Consolidated statement of income and expenditure and changes in fund balances other WHO funds .................................................................................................................. Statement I.2: Consolidated statement of income and expenditure and changes in fund balances trust funds – inter-organization arrangements ...................................................................... Statement I.3: Consolidated statement of income and expenditure and changes in fund balances trust funds – WHO programme activities.............................................................................. Statement I.4: Consolidated statement of income and expenditure and changes in fund balances other trust funds and associated entities ................................................................................ Statement I, Annex 1 Annex 2 Statement II: Transfers between funds .......................................................................................................... Eliminations ............................................................................................................................. Statement of assets, liabilities and fund balances as at 31 December 1999 .............................
Statement III: Statement of cash flow for the financial period 1998-1999 ..................................................... Statement IV: Statement of Appropriations for the Financial Period 1998-1999 ........................................... Notes to the Accounts ....................................................................................................................................... Schedule 1(a): Cash, deposits and securities.................................................................................................... Schedule 1(b): Cash, deposits and securities by source of funds ..................................................................... Schedule 2: Schedule 3: Schedule 4: Schedule 5: Schedule 6: Schedule 7: Schedule 8: Schedule 9: Income and obligations for the effective working regular budget for 1998-1999.................... Assessed contributions – 1998-1999 and prior financial periods............................................. Working Capital Fund and internal borrowing ........................................................................ Casual Income Account ........................................................................................................... Voluntary Fund for Health Promotion ..................................................................................... Special Account for Servicing Costs........................................................................................ Real Estate Fund ...................................................................................................................... Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training...........................................................................................................................
A53/17 Page 3 Schedule 10: Schedule 11: Schedule 12: Terminal Payments Account .................................................................................................... Supply Services Funds (Trust Funds) ...................................................................................... Special Account for the WHO Renewal Fund ......................................................................... 69 70 72
FINANCIAL IMPLEMENTATION OF WHO’S PROGRAMME FOR 1998-1999......................................... Table I: Table II: Table III: Table IV: Table V: Table VI: Table VII: Table VIII: International health programme: expenditure by sources of funds ............................................. Effective working regular budget, sources of financing and financial outcome ......................... Financial implementation by appropriation section, programme and sources of funds for 1998-1999........................................................................................................................ Operation of the exchange rate facility: transfers from and transfers to casual income resulting from the effects of currency exchange rate fluctuations in 1998-1999 .................. Financial implementation by appropriation section, region and sources of funds for 1998-1999........................................................................................................................ Financial implementation by programme: 1998-1999 regular budget – regions and global and interregional activities ......................................................................................... Financial implementation by category of expenditure and sources of funds for 1998-1999 ...... Financial implementation of Director-General’s and Regional Directors’ Development Programme for 1998-1999 ....................................................................................................
73 74 75 76 82 84 86 92 93 99
GLOSSARY OF BUDGETARY AND FINANCIAL TERMS ............................................................................
***** REPORT OF THE EXTERNAL AUDITOR TO THE WORLD HEALTH ASSEMBLY............................... 101
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Director-General’s Report I am pleased, as Director-General, to present the Financial Report of WHO for the period 1998-1999, which provides an initial response to the Health Assembly’s request for improved transparency and accountability. The Report shows: • • • a significant increase in financial resources for health flowing through WHO; a static regular budget, although receipt of 85% of assessed contributions was the highest rate since 1985; a very significant and encouraging increase in extrabudgetary resources – we are working to ensure this trend will continue in 2000-2001.
The Financial Report for 1998-1999 has to reflect implementation of the Programme budget for the financial period 1998-1999 in accordance with the structure of that budget, adopted in 1997. The Report for the next biennium will follow the structure of the Programme budget 2000-2001, adopted in 1999, with a new strategic focus, mission and objectives to achieve the goals of WHO. Since I took office in July 1998, a process of change has begun. In May 1999 the Health Assembly called for further improvement in transparency, accountability and effectiveness of the financial system of WHO in accordance with best management practice. Proposed revised Financial Regulations will be considered by the Health Assembly in May 2000, the Financial Rules will be considered by the Executive Board in January 2001. Work on improving the transparency of our financial framework and management will continue throughout the biennium. Among changes already evident are: • • • revision of the presentation of this Report, for example, of the Casual Income Account; reallocation of over US$ 6 million of the regular budget from administration to priority health areas; modernization of the financial structure of the Voluntary Fund for Health Promotion in order to increase transparency and support accountability and programme implementation. In January 2000 I reported to the Executive Board on the changes that will apply as from the 2000-2001 biennium. These changes have been communicated to donors since the Fund has now been fully restructured; establishment in July 1998 of the WHO Renewal Fund in order to finance specific initiatives for change and reform, directed towards a more unified, effective and responsive Organization. Support of the fund by donors is very much appreciated. Investment of US$ 1.8 million in our global communications network is already paying dividends in terms of increased efficiency and our ability to work as “one WHO”; significant investment in efficiency and priority setting through a programme of mutually agreed separations in 1999. As a result of the separation agreements, the Organization will be able to redirect approximately US$ 22.5 million to priority areas in 2000-2001. The costs, around US$ 18 million, are to be financed from the Terminal Payments Account. This cost is not a drain on the regular budget for either 1998-1999 or 2000-2001. The remaining balance of the Terminal Payments Account will be adequate to meet future liabilities to staff that leave in the normal course of events.
•
•
Despite the increase in collection of assessed contributions I continue to be concerned about unpaid contributions. It is important that all Member States pay in full and on time so that the regular budget may be fully implemented. In 1998-1999 US$ 25 million of the regular budget could not be implemented because prospects for receipt of these funds were uncertain.
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I am pleased to report that since initiatives had been taken as early as 1992 to address the “millennium bug”, we were able to enter 2000 with our financial and related systems fully year-2000 compliant and operational. The financial outcome for 1998-1999 has been satisfactory, and I look forward to reporting further developments and improvements in the future. I would also like to express my appreciation to all staff for their contribution to this financial outcome.
Gro Harlem Brundtland, MD, MPH Director-General
Geneva, 28 March 2000
Financial highlights Income • up 13% to US$ 2.2 billion; US$ 1.8 billion for WHO programme activities
Expenditure • up 11% to US$ 2.0 billion; US$ 1.7 billion for WHO programme activities
Regular budget (assessed contributions): no increase • • • effective working budget US$ 838 million unpaid assessments US$ 165 million (US$ 71 million for earlier financial periods) shortfall in payments covered in part by Working Capital Fund and internal borrowing
Extrabudgetary resources (voluntary contributions): up 42% to US$ 936 million, including • • • Voluntary Fund for Health Promotion up 44% to US$ 650 million United Nations programmes and funds up 32% to US$ 90 million trust funds up 11% to US$ 191 million
Liquidity as at 31 December 1999: • • • • US$ 15 million cash committed for the regular budget for 1998-1999 US$ 42 million advance payments of assessed contributions for 2000-2001 significant increase in funds held for the Voluntary Fund for Health Promotion, UNAIDS and Staff Health Insurance Fund, which are not available for regular budget purposes cash, deposits and securities increased to US$ 1.1 billion.
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Audited Financial Statements and Schedules and Notes to the Accounts
This part of the Financial Report presents the overall financial position of the Organization at 31 December 1999. The relevant statements and supporting schedules have been prepared in compliance with the requirements of the Financial Regulations and the United Nations System Accounting Standards. The schedules provide background details and explanations in support of individual funds and special accounts administered by the Organization for the biennial financial period 1 January 1998 - 31 December 1999. Where appropriate, comparative figures are provided in respect of the previous biennium. The financial statements and schedules are preceded by the certification of financial statements, the opinion of the External Auditor, Statement of Objectives and Activities and Accounting Policies and are supported by Notes to the Accounts which are set out on pages 32 to 48.
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Certification of Financial Statements
The appended statements, numbered I to IV, schedules 1 to 12 and notes to the accounts, are approved:
Hilary F. Wild Director, Department of Financial Services
Gro Harlem Brundtland, MD, MPH Director-General
28 March 2000
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29 March 2000
The President of the World Health Assembly World Health Organization CH-1211 Geneva 27 Switzerland Dear Sir LETTER OF TRANSMITTAL I have the honour to present to the Fifty-third World Health Assembly my Report and Opinion on the Financial Statements of the World Health Organization for the financial period 1 January 1998 to 31 December 1999. In transmitting my Report I wish to advise that, in accordance with the World Health Organization‘s Financial Regulations, I have given the Director-General the opportunity to comment on my report and it is issued on the basis of the assurance that she does not have any significant comment.
Yours sincerely
S A FAKIE EXTERNAL AUDITOR AUDITOR-GENERAL OF THE REPUBLIC OF SOUTH AFRICA
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Opinion of the External Auditor
To the World Health Assembly We have audited the accompanying financial statements, comprising Statements I to IV, Schedules 1 to 12 and the supporting Notes of the World Health Organization for the financial period ended 31 December 1999. These financial statements are the responsibility of the Director-General. My responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Common Auditing Standards of the Panel of External Auditors of the United Nations, specialised agencies and the International Atomic Energy Agency. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Director-General, as well as evaluating the overall financial statement presentation. I believe that our audit provides a reasonable basis for the audit opinion. In my opinion, these financial statements present fairly, in all respects, the financial position of the World Health Organization as at 31 December 1999 and the results of operations and cash flows for the period then ended in accordance with the stated accounting policies set out in the Statement of Accounting Policies, which were applied on a basis consistent with that of the preceding financial period. Further, in my opinion, the transactions of the World Health Organization which we have tested as part of our audit have, in all significant respects, been in accordance with the Financial Regulations and Legislative Authority. In accordance with Article XII of the Financial Regulations, I have also issued a long-form Report on my audit of the World Health Organization‘s financial statements.
S A Fakie External Auditor Auditor-General of the Republic of South Africa Pretoria, Republic of South Africa 29 March 2000
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Financial Statements and Schedules for the period 1 January 1998 – 31 December 1999
I.
Statement of Objectives and Activities
1. The objective of the World Health Organization is the attainment by all peoples of the highest possible level of health. The 1998-1999 programme budget, adopted in 1997, was developed within the context of this objective and the policy for health for all. It was drawn up with special emphasis on the provision of primary health care, universally accessible to the people by means acceptable to them, with their full participation and at a cost which communities and countries could afford. Nutrition, safe water supply, communicable disease control and research in applying existing knowledge to the health problems of developing countries were identified as priority areas for action. After the Director-General took office in July 1998, some adjustments were made to the allocations, most notably a shift of resources from administrative to technical health areas. 2. The programme budget for 2000-2001 proposed by the new administration and adopted by the Health Assembly in May 1999 contains a new strategic focus, missions and goals to achieve the objectives of the Organization.
II.
Statement of Accounting Policies
General Accounting Policies 3. The accounting policies and financial reporting practices applied are based upon the WHO Financial Regulations and Financial Rules. In addition, as authorized by the Forty-ninth World Health Assembly, the financial statements, accompanying notes and schedules are in accordance with the United Nations System Accounting Standards (UNAS) and drawn up in the formats stated therein. The opening balances on 1 January 1996 contained in the comparative figures for 1996-1997 have not been adjusted to conform with those standards since 1996-1997 was the first financial period in which the UNAS standards had been applied in WHO. 4. As a consequence of the application in 1996-1997 of the United Nations System Accounting Standards, changes took place in WHO accounting policies and procedures and in the presentation of the financial statements. All such changes and their financial effects were disclosed. The major change was the adoption of accrual accounting for expenditures under all funds, whereas previous to 1996-1997 some funds were reported on a cash basis (Note 17).
Unit of account and general accounts presentation 5. The financial statements, schedules and accompanying tables are presented in US dollars. All assets and liabilities, including accounts receivable and payable, are maintained globally within the Organization’s books of account and are not segregated by source of funds.
Translation of transactions incurred and assets and liabilities held in currencies other than US dollars 6. Translation of transactions expressed in currencies other than US dollars is effected at the prevailing United Nations accounting rate of exchange applicable at the date of the transaction. However, imprest account expenditure transactions are accounted for at the accounting rate of exchange in effect at the date expenditures are recorded in the main accounts.
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7. Assets and liabilities held in other currencies at the end of the financial period are translated into US dollars at the United Nations accounting rates of exchange prevailing for the month of December of the closing year. However, when significant changes occur in the relationship between currencies at the end of a financial period, the exchange rates used to translate into US dollars funds held in such currencies as at 31 December are those in force on 1 January of the subsequent year. Since in fact there was no such substantial change in exchange rates on 1 January 2000, the rates of exchange used were in all cases those prevailing for the month of December 1999.
Accounting for exchange differential 8. Exchange rate gains and losses on the purchase and sale of currencies, in addition to the exchange differential arising from the revaluation of cash book balances, are adjusted against the funds and accounts which participate in the apportionment of interest under the WHO general investment plan (see Note 11). All other exchange differences are accounted for within casual income.
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Statement I Consolidated Statement of Income and Expenditure and Changes in Fund Balances All Sources of Funds for the Financial Period 1998-1999 (expressed in US dollars) Regular Budget & Working Capital Fund (Schedule 2,3,4; Note 40)
Reference INCOME: Assessed contributions: - For the effective working budget (1998-1999) - New and formerly inactive Members Total assessed contributions Voluntary contributions: - WHO programme activities - Non-WHO programme activities Other income: - Revenue-producing activities - Funds under inter-organization arrangements - Allocations from other funds - Income from services rendered - Interest income : received and apportioned - Interest income : accrued and unapportioned - Exchange rate facility - Other Total income EXPENDITURE: International health programme Other purposes Total expenditure EXCESS(SHORTFALL) OF INCOME OVER EXPENDITURE Provision for delays in the collection of assessed contributions Refund of advances to the Working Capital Fund Refund to Members of assessed contributions for current biennium Payment of assessed contributions of prior years Savings on unliquidated obligations Increase/(decrease) in Capital Assets Transfers between funds TOTAL CHANGES IN FUND BALANCES FUND BALANCES - 1 JANUARY 1998 FUND BALANCES - 31 DECEMBER 1999
Other WHO Funds (Statement I.1)
Voluntary Fund for Health Promotion (Schedule 6)
Trust Funds (Statement I.2, I.3, I.4)
Notes 1,2 Note 3
827 137 000
10 365 000 48 280 10 413 280
827 137 000
Notes 4,5 Note 6
6 059 352
627 544 745
186 115 098 207 995 540
Note 7 Note 8 Notes 9,10 Notes 11,12 Note 13 Note 14 Note 15
8 800 874
171 254 90 280 069
81 024 150 21 921 452 (5 232 900) 5 232 900 340 304 133 792 312
22 884 550
22 581 031 11 494 034 105 799 327
821 904 100
650 429 295
624 436 353
Notes 16-19 Note 20
812 096 069
77 369 868 31 628 271 108 998 139
562 231 351
276 650 186 282 830 165 559 480 351
812 096 069
562 231 351
9 808 031
24 794 173
88 197 944
64 956 002
Note 26
(93 817 232)
Note 27 Note 28 Note 29 Annex 1 Statement III Statement II Statement II
(16 256 760) 98 327 636
10 298 723 17 732 008 (31 773 760) 21 051 144 198 919 893 219 971 037 350 000 88 547 944 186 542 556 275 090 500
9 047 182 (350 000) 73 653 184 262 499 655 336 152 839
31 773 760 29 835 435 (92 946 123) (63 110 688)
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Statement I (continued)
Equity in Capital Assets (Note 44)
Sub-Totals
Eliminations (Statement I, Annex 2;Note 30)
Totals 1998-1999 1996-1997 (re-stated, Note 15) INCOME: Assessed contributions: 838 552 000 - For the effective working budget (1998-1999) 176 358 - New and formerly inactive Members 838 728 358 Total assessed contributions Voluntary contributions: - WHO programme activities - Non-WHO programme activities Other income: - Revenue-producing activities - Funds under inter-organization arrangements - Allocations from other funds - Income from services rendered - Interest income : received and apportioned - Interest income : accrued and unapportioned - Exchange rate facility - Other Total income EXPENDITURE: International health programme Other purposes Total expenditure EXCESS(SHORTFALL) OF INCOME OVER EXPENDITURE Provision for delays in the collection of assessed contributions Refund of advances to the Working Capital Fund Refund to Members of assessed contributions for current biennium Payment of assessed contributions of prior years Savings on unliquidated obligations Increase/(decrease) in Capital Assets Transfers between funds
837 502 000 48 280 837 550 280
837 502 000 48 280 837 550 280
819 719 195 207 995 540
(16 307 131)
803 412 064 207 995 540
581 524 374 182 982 082
8 972 128 90 280 069 81 024 150 67 387 033 11 494 034 106 139 631 2 230 562 060 (78 942 816) (62 635 685)
8 972 128 90 280 069 18 388 465 67 387 033 11 494 034 106 139 631 2 151 619 244
10 031 618 68 390 422 59 576 19 536 859 64 631 450 6 329 233 118 455 201 1 890 669 173
1 728 347 474 314 458 436 2 042 805 910
(65 277 945)
1 663 069 529 314 458 436 1 977 527 965
1 470 601 014 315 158 405 1 785 759 419
(65 277 945)
187 756 150
(13 664 871)
174 091 279
104 909 754
(93 817 232)
(93 817 232)
(126 028 910) (5 139 390)
9 618 284
(16 256 108 626 26 779 9 618
760) 359 190 284
(16 256 108 626 26 779 9 618
760) 359 190 284
189 141 425 19 728 996
9 618 284 55 169 240 64 787 524
222 705 991 610 185 221 832 891 212
(13 664 871)
209 041 120 610 185 221
182 611 875 TOTAL CHANGES IN FUND BALANCES 427 573 346 FUND BALANCES - 1 JANUARY 1998 610 185 221 FUND BALANCES - 31 DECEMBER 1999
(13 664 871)
819 226 341
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Statement I.1 Consolidated Statement of Income and Expenditure and Changes in Fund Balances Other WHO Funds for the Financial Period 1998-1999 (expressed in US dollars) Revolving Holding Account Casual Income Appropriated (Statement I, Revenues Reference INCOME: Assessed contributions: - For the effective working budget (1998-1999) - New and formerly inactive Members Total assessed contributions Voluntary contributions: - WHO programme activities Other income: - Revenue-producing activities - Allocations from other funds - Income from services rendered - Interest income - Exchange rate facility - Other Total income EXPENDITURE: International health programme Other purposes Total expenditure EXCESS(SHORTFALL) OF INCOME OVER EXPENDITURE Payment of assessed contributions of prior years Savings on unliquidated obligations Transfers between funds TOTAL CHANGES IN FUND BALANCES FUND BALANCES - 1 JANUARY 1998 FUND BALANCES - 31 DECEMBER 1999 Note 28 Note 29 Annex 1 Statement I Statement II Statement II 3 297 784 10 298 723 17 732 008 (36 651 406) (5 322 891) 30 148 404 24 825 513 (2 374 449) 6 221 897 3 847 448 9 503 914 9 503 914 15 517 000 25 020 914 (2 049 000) (11 452 397) 13 184 075 1 731 678 400 000 400 000 500 000 500 000 (6 803 647) (2 374 449) (9 403 397) 6 803 647 Notes 16-19 Note 20 12 374 449 12 374 449 10 626 429 10 626 429 1 003 904 1 003 904 Notes 9,10 Notes 11,12 Note 14 Note 15 7 676 300 5 232 900 340 304 3 297 784 10 000 000 1 223 032 7 807 551 1 045 370 Note 7 (10 000 000) 10 000 000 177 662 7 807 551 Notes 4,5 Note 2 Note 3 48 280 48 280 (Schedule 5) for Priority Programmes Annex 1; Note 41) Real Estate Fund (Schedule 8) Fund for Teaching and Laboratory Equipment (Schedule 9) Revolving Sales Fund (Note 42)
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Statement I.1 (continued)
Special Account for Concessions at Headquarters (Note 43)
Special Account for the WHO Renewal Fund (Schedule 12) Special Account for Servicing Costs (Schedule 7) Tax Equalization Fund (Note 2) Terminal Payments Account (Schedule 10) 1998-1999 Totals 1996-1997 INCOME: Assessed contributions: 10 365 000 10 365 000 48 280 10 365 000 10 413 280 10 445 000 176 358 10 621 358 - For the effective working budget (1998-1999) - New and formerly inactive Members Total assessed contributions Voluntary contributions: 6 059 352 6 059 352 - WHO programme activities Other income:
815 661 62 635 685 275 210 137 960 8 151 980 18 388 465 4 634 632
8 800 874 81 024 150 21 921 452 5 232 900 340 304
9 930 063 (14 547 000) 74 328 414 19 786 619 23 266 100 2 390 572 125 776 126
- Revenue-producing activities - Allocations from other funds - Income from services rendered - Interest income - Exchange rate facility - Other Total income EXPENDITURE:
1 090 871
6 197 312
70 787 665
10 365 000
23 023 097
133 792 312
4 287 864 428 215 428 215 4 287 864
59 703 651 5 683 770 59 703 651 5 683 770 14 889 857 14 889 857
77 369 868 31 628 271 108 998 139
58 841 208 37 692 925 96 534 133
International health programme Other purposes Total expenditure EXCESS(SHORTFALL) OF INCOME
662 656
1 909 448
11 084 014
4 681 230
8 133 240
24 794 173 10 298 723 17 732 008
29 241 993 6 222 171 15 702 049 (5 100 000)
OVER EXPENDITURE Payment of assessed contributions of prior years Savings on unliquidated obligations Transfers between funds
4 226 379 662 656 2 780 373 3 443 029 1 909 448 1 909 448 15 310 393 89 446 873 104 757 266 4 681 230 1 217 210 5 898 440 8 133 240 39 504 061 47 637 301
(31 773 760) 21 051 144 198 919 893 219 971 037
46 066 213 TOTAL CHANGES IN FUND BALANCES 152 853 680 FUND BALANCES - 1 JANUARY 1998 198 919 893 FUND BALANCES - 31 DECEMBER 1999
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Statement I.2 Consolidated Statement of Income and Expenditure and Changes in Fund Balances Trust Funds – Inter-organization Arrangements for the Financial Period 1998-1999 (expressed in US dollars)
Reference INCOME: Other income: - Funds under inter-organization arrangements - Interest income - Other Total income EXPENDITURE: International health programme
Technical Cooperation UN UN UN Development Population Environment Programme Fund Programme
UN Drug Control Programme
Note 8 Note 11
22 072 825 67 131 22 139 956
22 050 000 (121 543) 21 928 457
596 000
488 100 (279)
596 000
487 821
Note 16-19
21 389 830
21 040 088
508 373
726 154
Total expenditure EXCESS(SHORTFALL) OF INCOME OVER EXPENDITURE Savings on unliquidated obligations Note 29
21 389 830
21 040 088
508 373
726 154
750 126 99 307
888 369 321 371
87 627 2 331
(238 333) (2 142)
TOTAL CHANGES IN FUND BALANCES FUND BALANCES - 1 JANUARY 1998 FUND BALANCES - 31 DECEMBER 1999
Statement I Statement II Statement II
849 433 (2 118 330) (1 268 897)
1 209 740 (1 440 506) (230 766)
89 958 (110 579) (20 621)
(240 475) 69 671 (170 804)
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Statement I.2 (continued)
Technical Cooperation Other UN Funds Supply Services Other UN Organizations (Schedule 11) Totals Inter-organization arrangements 1998-1999 1996-1997 INCOME: Other income: - Funds under inter-organization arrangements - Interest income - Other Total income
3 320 103 11 230
41 753 041
90 280 069 11 230 (54 691) 90 236 608
68 390 422 37 180
3 331 333
41 753 041
68 427 602
3 220 465
40 070 949
86 955 859
EXPENDITURE: 69 057 252 International health programme
3 220 465
40 070 949
86 955 859
69 057 252
Total expenditure
110 868
1 682 092
3 280 749 420 867
EXCESS(SHORTFALL) OF INCOME (629 650) OVER EXPENDITURE 718 805 Savings on unliquidated obligations
110 868 867 181 978 049
1 682 092 (888 393) 793 699
3 701 616 (3 620 956) 80 660
89 155 TOTAL CHANGES IN FUND BALANCES (3 710 111) FUND BALANCES - 1 JANUARY 1998 (3 620 956) FUND BALANCES - 31 DECEMBER 1999
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Statement I.3 Consolidated Statement of Income and Expenditure and Changes in Fund Balances Trust Funds – WHO Programme Activities for the Financial Period 1998-1999 (expressed in US dollars) Technical Cooperation Trust Fund for the African Special Programme Onchocerciasis Programme for Sasakawa for Research and Control Onchocerciasis Health Training in Programme Control Trust Fund Tropical Diseases
Reference INCOME: Voluntary contributions: - WHO programme activities Other income: - Revenue-producing activities - Allocations from other funds - Interest income
Global Programme on AIDS
Notes 4,5
31 769 242
13 520 114
8 000 000
65 665 649
171 254 Notes 11,12 742 740 (28 270) 617 520 957 430 1 679 200
Total income EXPENDITURE: International health programme
742 740
31 912 226
14 137 634
8 957 430
67 344 849
Notes 16-19
5 349 628
32 232 148
18 619 715
10 675 816
61 792 095
Total expenditure EXCESS(SHORTFALL) OF INCOME OVER EXPENDITURE Savings on unliquidated obligations Transfers between funds TOTAL CHANGES IN FUND BALANCES FUND BALANCES - 1 JANUARY 1998 FUND BALANCES - 31 DECEMBER 1999 Note 29 Annex 1 Statement I Statement II Statement II
5 349 628
32 232 148
18 619 715
10 675 816
61 792 095
(4 606 888)
(319 922) 1 407 753
(4 482 081) (1 718 386) 9 411 240 370 (500 000)
5 552 754 1 910 686 150 000 7 613 440 (124 587) 7 488 853
(5 000 000) (9 606 888) 12 885 937 3 279 049 1 087 831 (2 647 115) (1 559 284)
(4 472 670) (1 978 016) 138 046 (4 334 624) 9 804 189 7 826 173
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Statement I.3 (continued)
Technical Cooperation Other Technical Cooperation funds
Supply Services National Health Services and Institutions (Schedule 9, 11) Totals Technical Cooperation and Supply Services 1998-1999 1996-1997 INCOME: Voluntary contributions: - WHO programme activities Other income: - Revenue-producing activities - Allocations from other funds - Interest income
Associate Professional Officers
9 261 873
47 338 616
10 559 604
186 115 098
166 197 307
171 254 107 000 183 731 4 259 351
101 555 59 576 5 524 690
9 368 873
47 522 347
10 559 604
190 545 703
171 883 128
Total income EXPENDITURE: International health programme
8 838 657
41 588 761
10 597 507
189 694 327
177 517 541
8 838 657
41 588 761
10 597 507
189 694 327
177 517 541
Total expenditure EXCESS(SHORTFALL) OF INCOME OVER EXPENDITURE Savings on unliquidated obligations Transfers between funds
530 216
5 933 586
(37 903)
851 376 3 568 220 (5 350 000) (930 404) 39 159 435 38 229 031
(5 634 413) 3 308 142 (39 594 334)
353 796 530 216 2 176 531 2 706 747 6 287 382 13 642 553 19 929 935
(353 796) (391 699) 3 283 881 2 892 182
(41 920 605) TOTAL CHANGES IN FUND BALANCES 81 080 040 FUND BALANCES - 1 JANUARY 1998 39 159 435 FUND BALANCES - 31 DECEMBER 1999
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Statement I.4 Consolidated Statement of Income and Expenditure and Changes in Fund Balances Other Trust Funds and Associated Entities for the Financial Period 1998-1999 (expressed in US dollars) Trust Fund Joint United Nations Programme on HIV/AIDS (UNAIDS) (Notes 20,39)
Reference INCOME: Voluntary contributions: - Non-WHO programme activities Other income: - Interest income: received and apportioned - Interest income: accrued and unapportioned - Other Total income EXPENDITURE: Other purposes Total expenditure EXCESS(SHORTFALL) OF INCOME OVER EXPENDITURE Savings on unliquidated obligations Transfers between funds TOTAL CHANGES IN FUND BALANCES FUND BALANCES - 1 JANUARY 1998 FUND BALANCES - 31 DECEMBER 1999 Note 29 Annex 1 Statement I Statement II Statement II
International Agency for Research on Cancer (Note 20)
International Computing Centre (Note 20)
Staff Health Insurance (Notes 20,21)
144 781 928
52 711 409
Notes 11,12
7 969 060 (1 169) 152 749 819 52 711 409 40 714 264 40 714 264
16 218 879 65 140 923 81 359 802
135 124 509 135 124 509
49 948 411 49 948 411
38 570 703 38 570 703
48 518 697 48 518 697
17 625 310 5 058 095 5 000 000 27 683 405 48 375 331 76 058 736
2 762 998
2 143 561
32 841 105
2 762 998 12 023 178 14 786 176
2 143 561 (774 474) 1 369 087
32 841 105 155 118 463 187 959 568
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Statement I.4 (continued)
Other funds (Notes 22-24)
Foundations (Notes 20, 25)
Interest AccruedUnapportioned (Note 13)
Totals Trust Funds Non-WHO programme activities 1998-1999 1996-1997 (re-stated, note 15) INCOME: Voluntary contributions: 182 982 082 - Non-WHO programme activities Other income: - Interest income: received and apportioned - Interest income: accrued and unapportioned - Other Total income EXPENDITURE: Other purposes Total expenditure EXCESS(SHORTFALL) OF INCOME OVER EXPENDITURE Savings on unliquidated obligations Transfers between funds
10 437 758
64 445
207 995 540
235 000
216 744
(6 329 233) 11 494 034
18 310 450 11 494 034 105 854 018 343 654 042
19 254 811 6 329 233 116 169 219 324 735 345
10 672 758
281 189
5 164 801
10 564 200 10 564 200
103 645 103 645
282 830 165 282 830 165
277 517 775 277 517 775
108 558
177 544
5 164 801
60 823 877 5 058 095 5 000 000
47 217 570
36 970 199
108 558 4 060 175 4 168 733
177 544 1 829 270 2 006 814
5 164 801 6 329 233 11 494 034
70 881 972 226 961 176 297 843 148
84 187 769 TOTAL CHANGES IN FUND BALANCES 142 773 407 FUND BALANCES - 1 JANUARY 1998 226 961 176 FUND BALANCES - 31 DECEMBER 1999
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Statement I, Annex 1 Transfers Between Funds Inter-fund transfers as detailed in the following table, were made during 1998-1999 (expressed in US dollars)
Reference
Regular Budget
Casual Income
Holding Account
Real Estate Fund
Revolving Sales Fund
Special Account for Servicing Costs
Appropriated for the effective working budget, 1998-1999 (Resolution WHA 50.25)
Schedule 5
(31 773 760)
16 256 760
15 517 000
Appropriated for Real Estate Fund (Resolution WHA 52.15) Schedules 5,8
(2 049 000)
2 049 000
Appropriated for the effective working budget, 2000-2001 (Resolution WHA 52.20)
Schedule 5
23 320 914
(25 020 914)
1 700 000
To cover costs of production and sales promotion of WHO publications, 1998-1999 (resolution WHA22.8)
Schedule 7
5 926 379
(5 926 379)
Surplus funds, 1998-1999 to casual income (resolution WHA22.8)
Schedule 5
(877 268)
877 268
Transfer of balances in Global Programme on Aids
Other programme transfers Total (31 773 760) 36 651 406 (9 503 914) 2 049 000 6 803 647 (4 226 379)
These transfers between Funds are necessary to reflect decisions by the Health Assembly and other Fund transfers and appropriations in accordance with established accounting practices.
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Statement I, Annex 1 (continued)
Trust Fund for the Global Programme on AIDS
Voluntary Fund for Health Promotion
Trust Fund for the Special Programme for Research and Training in Tropical Diseases
UNAIDS
Other National Technical Health Cooperation Services and Funds Institutions
Sasakawa Health Trust Fund
Appropriated for the effective working budget, 1998-1999 (Resolution WHA 50.25)
Appropriated for Real Estate Fund (Resolution WHA 52.15)
Appropriated for the effective working budget, 2000-2001 (Resolution WHA 52.20)
To cover costs of production and sales promotion of WHO publications, 1998-1999 (resolution WHA22.8)
Surplus funds, 1998-1999 to casual income (resolution WHA22.8)
5 000 000
(5 000 000)
Transfer of balances in Global Programme on Aids
5 000 000
(350 000) (350 000)
(150 000) (150 000)
(5 000 000)
(353 796) (353 796)
353 796 353 796
500 000 Other programme transfers 500 000 Total
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Statement I, Annex 2 Eliminations (Note 30) (expressed in US dollars)
1. During the biennium income is transferred between funds, thus giving rise to a situation where that income and the related expenditure is accounted for twice. To reflect the net costs of programme delivery it is necessary to eliminate the double effect of these transfers. Originating Fund Regular Budget Receiving Fund Trust Fund for the Special Programme for Research and Training in Tropical Diseases Onchocerciasis Control Programme African Programme for Onchocerciasis Control Voluntary Fund for Health Promotion Trust Fund for the Special Programme for Research and Training in Tropical Diseases Onchocerciasis Control Programme Voluntary Fund for Health Promotion Trust Fund for the Special Programme for Research and Training in Tropical Diseases Trust Fund for the Special Programme for Research and Training in Tropical Diseases Trust Fund for the Special Programme for Research and Training in Tropical Diseases Income Expenditure
2 315 600 500 000 100 000 645 000 1 500 000 2 791 531 6 000 000
2 315 600 500 000 100 000 645 000 1 500 000 2 791 531 6 000 000
United Nations Development Programme
United Nations Population Fund African Programme for Onchocerciasis Control Onchocerciasis Control Programme
1 980 000
1 980 000
275 000
275 000
Sasakawa Trust Fund
200 000 16 307 131
200 000 16 307 131
These transfers are shown in the "Eliminations column" in Statement I as a reduction against income under voluntary contributions for WHO programme activities, with a corresponding reduction against expenditure under the heading, "International Health Programme". 2. It is also necessary to eliminate the double accounting of programme support costs (PSC) on income and expenditure. PSC are recorded both as income and expenditure in both the Voluntary Fund for Health Promotion and in the Special Account for Servicing Costs. Finally it is necessary to eliminate the income for Equity in Capital Assets, as it is recorded both in Casual Income and in Equity in Capital Assets. Income from services rendered International health programme Totals Programme support costs received Programme support costs charged against extra-budgetary funded activities 78 942 816 62 635 685 48 970 814 65 277 945 a/
a/ The difference between the income and expenditure eliminations of US$ 13,664,871 arises out of timing differences and is included in the Special Account for Servicing Costs balance in Schedule 7. Programme support costs earned in a biennium are not available for expenditure until the following biennium.
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Statement II Statement of Assets, Liabilities and Fund Balances as at 31 December 1999 (expressed in US dollars)
Reference ASSETS Cash At banks, in transit and in hand Deposits and securities Accounts receivable Prior financial Assessed contributions Members’ outstanding assessed contributions Less: Provision for delays in the collection of assessed contributions Net assessed contributions Sundry debtors Prepaid expenses Interest accrued and unapportioned Capital assets (Real property) Land and buildings: Headquarters Africa South-East Asia Eastern Mediterranean Western Pacific Total capital assets TOTAL ASSETS LIABILITIES AND FUND BALANCES Members’ contributions received in advance Unliquidated obligations WHO Programme Activities: Regular budget Other WHO funds Voluntary Fund for Health Promotion Inter-organization arrangements Trust funds Total unliquidated obligations - WHO programme activities Non-WHO Programme Activities: Trust Fund for the Joint United Nations Programme on HIV/AIDS International Computing Centre (ICC) Total unliquidated obligations Accounts payable Total liabilities Note 38 Note 36 Note 37 93 817 232 71 001 555 Statement I Note 33 Note 34 Note 13 Note 35 93 817 232 71 001 555 Schedule 3 1998-1999 periods Note 31 Schedule 1(a); Schedule 1(a)
1999
1997
52 613 523 998 663 672
35 627 034 738 385 743
164 818 787 164 818 787 37 396 672 315 598 11 494 034
179 676 194 179 676 194 31 764 145 528 067 6 329 233
41 597 370 8 261 740 1 483 295 9 988 361 3 456 758 64 787 524 1 165 271 023
41 597 370 8 261 740 1 487 947 365 425 3 456 758 55 169 240 867 803 462
42 111 903
20 851 491
78 116 934 16 820 773 74 362 449 15 115 042 40 969 148 225 384 346 28 083 734 3 331 510 256 799 590 33 468 318 332 379 811
83 147 148 11 421 165 52 655 872 6 777 611 30 514 524 184 516 320 33 612 529 1 607 587 219 736 436 17 030 314 257 618 241
A53/17 Page 27
Statement II (continued)
Reference
1999
1997
LIABILITIES AND FUND BALANCES (continued) Trust funds Technical cooperation and supply services funds Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS) International Computing Centre (ICC) Foundations and other trust funds Interest accrued and unapportioned Total trust funds Voluntary Fund for Health Promotion Internal Borrowing Advances secured against other WHO funds Other WHO funds Casual Income Account Holding Account Real Estate Fund Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training Revolving Sales Fund Special Account for Operation of Concessions at Headquarters Special Account for the WHO Renewal Fund Special Account for Servicing Costs Tax Equalization Fund Terminal Payments Account Total other WHO funds Members’ equity in capital assets (Real Property) Total fund balances TOTAL LIABILITIES AND FUND BALANCES Statement I Statement I.1 Statement I.1 Statement I.1 Statement I.1 Statement I.1 3 443 029 1 909 448 104 757 266 5 898 440 47 637 301 219 971 037 64 787 524 832 891 212 1 165 271 023 89 446 873 1 217 210 39 504 061 198 919 893 55 169 240 610 185 221 867 803 462 2 780 373 Statement I.1 Statement I.1 400 000 500 000 400 000 500 000 Statement I.1 Statement I.1 Statement I.1 28 672 961 25 020 914 1 731 678 36 370 301 15 517 000 13 184 075 Statement I (63 110 688) (92 946 123) Statement I Statement I.4 Statement I.4 Statement I.4 Statement I.4 76 058 736 1 369 087 208 921 291 11 494 034 336 152 839 275 090 500 48 375 331 (774 474) 173 031 086 6 329 233 262 499 655 186 542 556 Statement I.2; I.3 38 309 691 35 538 479
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Statement III Statement of Cash Flow for the Financial Period 1998-1999 (expressed in US dollars)
1998-1999 CASH FLOWS FROM OPERATING ACTIVITIES Total changes in fund balances (Statement I) (Increase)/decrease in accounts receivable - sundry debtors (Increase)/decrease in prepaid expenses (Increase)/decrease in interest accrued and unapportioned Increase/(decrease) in contributions received in advance Increase/(decrease) in unliquidated obligations Increase/(decrease) in accounts payable Less: Interest income Savings on liquidation of prior periods’ obligations Net eliminations of programme support costs (Statement I) Net cash from operating activities CASH FLOWS FROM INVESTING AND FINANCIAL ACTIVITIES (Increase)/decrease in deposits and securities Plus: Interest income Net cash from investing and financial activities CASH FLOWS FROM OTHER SOURCES: (Increase)/decrease in land and buildings Savings on liquidation of prior periods’ obligations Net cash from other sources NET INCREASE IN CASH CASH AT 1 JANUARY 1998 AND 1996 CASH AT 31 DECEMBER 1999 AND 1997 (9 618 284) 26 779 190 17 160 906 16 986 489 35 627 034 52 613 523 (260 277 929) 67 387 033 (192 890 896) 209 041 120 (5 632 527) 212 469 (5 164 801) 21 260 412 37 063 154 16 438 004 (67 387 033) (26 779 190) 13 664 871 192 716 479
1996-1997
182 611 875 867 451 (1 376) (6 329 233) (5 400 227) 101 995 275 (5 934 253) (64 631 450) (19 728 996)
183 449 066
(250 727 802) 64 631 450 (186 096 352)
52 295 19 728 996 19 781 291 17 134 005 18 493 029 35 627 034
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Statement IV Statement of Appropriations for the Financial Period 1998-1999 (expressed in US dollars)
Transfers Amounts approved by resolution Appropriation section WHA50.25 between sections made by the DirectorGeneral (Notes 49, 50) Transfers between sections as % of approved appropriations
Transfers from DirectorGeneral’s and Regional Directors’ Development programme Total transfers effected Exchange rate facility: net transfers to casual income (a) (resolution WHA50.25)
(1) 1. Governing bodies 2. Health policy and management Director-General’s and Regional Directors’ Development Programme 3. Health services development 4. Promotion and protection of health 5. Integrated control of disease 6. Administrative services EFFECTIVE WORKING BUDGET 7. Transfer to Tax Equalization Fund TOTAL
(2) 19 281 800 248 026 000 7 592 000 170 423 800 133 492 100 135 144 400 128 693 900 842 654 000 80 000 000 922 654 000
(3) (146 100) 5 502 200
(4) (0.76) 2.22
(5)
(6) (146 100)
(7) 9 300 (1 474 400)
2 124 781 (5 930 600)
7 626 981 (5 930 600) (7 368 459) (3 625 784) 10 386 262 (942 300)
(8 359 900) (4 396 000) 8 342 100 (942 300)
(4.91) (3.29) 6.17 (0.73)
991 441 770 216 2 044 162
(447 900) (250 800) (146 200) (2 922 900) (5 232 900)
(5 232 900)
(a)
Effective appropriations for 1998-1999 (column 8) take into account the net transfers during the biennium to the Casual Income Account required to cover the effects of favourable United Nations/WHO accounting rates of exchange against the US dollar (column 7), in respect of the currencies of the countries of location of headquarters and the regional offices under the exchange rate facility in accordance with the Financial Regulation 4.6. The operation of the facility during 1998-1999 resulted in transfers to casual income of $ 5 513 600, in respect of savings from more favourable rates of exchange. In addition, transfers from casual income were made in respect of charges from an unfavourable rate of exchange for one currency totalling $ 280 700. This resulted in a net saving of $ 5 232 900 during the biennium.
(b)
Including $ 2 315 600 transferred from the regular budget to the Trust Fund for the Special Programme for Research and Training in Tropical Diseases, $ 500 000 to the Onchocerciasis Control Programme and $ 100 000 to the African Programme for Onchocerciasis Control.
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Statement IV (continued)
Obligations (b) Effective appropriations (a) Liquidated Unliquidated Total
Unobligated balance of appropriations Appropriation section
(8) 19 145 000 254 178 581 1 661 400 162 607 441 129 615 516 145 384 462 124 828 700 837 421 100 80 000 000 917 421 100
(9) 17 617 832 233 338 965
(10) 657 224 16 460 155
(11) 18 275 056 249 799 120
(12) 869 944 4 379 461 1 661 400 1. Governing bodies
(1)
2. Health policy and management Director-General’s and Regional Directors’ Development Programme 3. Health services development 4. Promotion and protection of health 5. Integrated control of disease 6. Administrative services EFFECTIVE WORKING BUDGET 7. Transfer to Tax Equalization Fund
138 113 872 112 099 311 126 522 848 106 286 307 733 979 135 80 000 000 813 979 135
21 250 381 14 129 526 17 287 845 8 331 803 78 116 934
159 364 253 126 228 837 143 810 693 114 618 110 812 096 069 80 000 000
3 243 188 3 386 679 1 573 769 10 210 590 25 325 031
78 116 934
892 096 069
25 325 031
TOTAL
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Notes to the Accounts Consolidated Statement of Income and Expenditure and Changes in Fund Balances, All Sources of Funds for the Financial Period 1998-1999 (Statement I) Income Assessed contributions (Statement I)
1. Income from assessed contributions of Members and Associate Members for the effective working budget 1998-1999, is recorded when it is due, i.e., on an accrual basis. A provision is established for delays in collection of contributions amounting to 100% of the assessed contributions which remained outstanding at 31 December 1999 against such income. 2. In accordance with Health Assembly resolution WHA21.10 under which the Tax Equalization Fund was established, the assessed contributions of all Member States are reduced by the income generated by the staff income tax assessment plan. For those Member States which levy income tax on the income their nationals receive from WHO, the credit from the staff assessment plan is reduced by the estimated income tax to be reimbursed by the Organization to the staff concerned. In determining the reduction of assessed contribution to be applied to the Member States concerned, the Tax Equalization Fund is credited with the revenue from the staff income tax assessment, the credits being recorded in the name of individual Member States in proportion to their assessments for the financial period concerned. In 1998-1999, income credited to the Tax Equalization Fund was derived as follows: 1996-1997 US$ Staff Assessment (Appropriation Section 7 - see Statement IV) Less: Credits to Member States Statement I 80 000 000 69 555 000 10 445 000 1998-1999 US$ 80 000 000 69 635 000 10 365 000
3. Income from assessed contributions of new and formerly inactive Members is subject to Financial Regulation 5.10. Such income is recorded on a cash basis, i.e., as received, and is credited to casual income (Statements I and I.1). Voluntary Contributions (Statements I, I.1, I.3 and I.4)
4. Voluntary contributions for WHO programme activities are recorded on a cash basis, i.e., as received. These include contributions received for the Voluntary Fund for Health Promotion, the Onchocerciasis Control Programme, the African Programme for Onchocerciasis Control, the Sasakawa Health Trust Fund, the Trust Fund for the Special Programme for Research and Training in Tropical Diseases, the Associate Professional Officers Programme, other Trust Funds for technical cooperation, and Supply Services funds. 5. Contributions of goods or services in kind received by WHO are recorded both as income and expenditure in the Voluntary Fund for Health Promotion upon receipt of the goods or services at the value stated by the donor. 6. WHO administers other trust funds and entities which do not form part of WHO’s programme activities; contributions for these trust funds and entities are also recorded on a cash basis. They include the trust fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS), International Agency for Research on Cancer (IARC) and International Computing Centre (ICC), for each of which detailed financial reports are issued and audit certification is made to the governing body concerned. Also included under this classification are the trust fund for the WHO Staff Health Insurance (SHI), foundations and associated accounts under administration by the Organization (Note 20).
A53/17 Page 33 Other Income - WHO Funds Revenue-producing activities (Statements I and I.1)
7. Revenues comprise staff house rents and rental from WHO regional travel agents which are credited to the Real Estate Fund (Schedule 8); rentals from concessionaires at Headquarters, credited to the Special Account for Operation of Concessions at Headquarters; sale of WHO publications and other promotional material credited to the Revolving Sales Fund. Income is recorded on a cash basis. Funds under inter-organization arrangements (Statements I and I.2)
8. These represent cash drawings from the United Nations Development Programme, the United Nations Population Fund and other organizations and bodies of the United Nations system, for the financing of activities funded by those agencies for which WHO is executing or associated agency. Also included in income from this source are the disbursements made by the United Nations Development Programme acting as paying agent for WHO in field locations (Statement I.2). Income from services rendered
9. This comprises income from programme support costs levied against programme expenditure under extrabudgetary financed activities (Statement I.1). 10. Income earned during the financial period from programme support cost charges against expenditure financed from extrabudgetary resources is retained in the Special Account for Servicing Costs for use in the succeeding financial period. Interest income (Statements I, I.1, I.2, I.3, and I.4)
11. Interest received on funds invested on a pooled basis is apportioned monthly among these funds and other accounts which participate in the distribution, in proportion to their capital at the end of each month. Earnings on specific investments made for funds are credited directly to the funds concerned. Interest is adjusted by the exchange differential related to currency operations. 12. Interest earned and apportioned during the financial period to specific WHO accounts, trust funds and the Voluntary Fund for Health Promotion, is retained for use within those accounts and funds. 13. Interest accrued on investments at the end of the financial period is taken up as a single receivable in the accounts and is reflected in a separate trust fund for unapportioned interest. Apportionment among the funds and other accounts concerned takes place only upon receipt of interest. Exchange rate facility (Statements I, I.1 and IV)
14. As authorized by the Health Assembly in resolution WHA50.25, the net use of the exchange rate facility in 1998-1999 amounted to transfers of $ 5 232 900 from the regular budget to casual income, in respect of savings generated because the United Nations monthly accounting rates of exchange were more favourable than those set for the programme budget for the biennium.
A53/17 Page 34 Other income - other (Statements I, I.1 and I.4)
15. This income includes: 1996-1997 US$ (a) Other WHO Funds (Statement I.1) Refunds and rebates Exchange differential Sale of staff housing in Windhoek, Namibia Sale of equipment and material Revenue from the Swiss Postal authorities Underground parking operations Statements I and I.1 873 362 134 987 214 035 258 804 408 025 501 359 2 390 572 1996-1997 (re-stated) a/ 1998-1999 US$ 430 906 (923 155) 189 515 18 033 625 005 340 304 1998-1999
(b) Other Trust Funds and Associated Entities Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS) International Computing Centre (ICC) Staff Health Insurance (SHI) Statement I.4 3 124 33 429 076 82 737 019 116 169 219 (1 169) 40 714 264 65 140 923 105 854 018
a/ In the 1996-1997 Financial Report the income for ICC and SHI was shown under voluntary contributions, non-WHO programme activities. As the nature of this income is not voluntary, it is fairer to show this income as Other Income. Accordingly, relevant 1996-1997 figures which are included for comparative purposes, have been restated. Expenditure 16. Expenditure under all funds administered by WHO for technical assistance, supply services and other WHO programmes is recorded on an accrual basis. With the exception of activities financed under interagency arrangements, e.g., United Nations Development Programme, United Nations Population Fund and other United Nations organizations, for which WHO is executing agency, obligations are established in accordance with Article IV of the Financial Regulations and Article V of the Financial Rules. For obligations against the aforesaid funds provided under interagency arrangements, obligations are set up and maintained in accordance with the financial regulations of the respective funding agencies. 17. The biennium 1996-1997 was the first financial period in which WHO recorded expenditure on an accrual basis for all funds. Prior to 1996-1997, several funds, notably the Voluntary Fund for Health Promotion, certain other trust funds and WHO funds had reported expenditure on a cash basis. The funds, which were previously cash funds for expenditure reporting purposes, and which now record expenditure on an accrual basis, are noted as follows: WHO Funds: Real Estate Fund Revolving Sales Fund Special Account for Operation of Concessions at Headquarters Special Account for Servicing Costs Terminal Payments Account Funds under Inter-Organization arrangements: United Nations Afghanistan Emergency Trust Fund United Nations Children’s Fund United Nations High Commissioner for Refugees
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Trust funds - Technical Cooperation: Associate Professional Officers Other Trust funds Supply Services: Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training General Voluntary Fund for Health Promotion 18. Expenditure reported in the Financial Report for 1998-1999 is based upon obligations incurred, i.e., disbursements made during the biennium and unliquidated obligations at the end of the financial period. 19. Expenditure for WHO programme activities in Statement I, covering technical cooperation and supply services, is shown under separate columns, such as regular budget and working capital fund, and each source of extrabudgetary funding, and is reported against the expenditure line “International health programme”. 20. Expenditure for non-WHO programme activities, or against funds or entities for which WHO has administrative responsibility or other relationship, is reported under the appropriate columnar heading against the expenditure line “Other purposes”. The WHO Trust Funds and Associated Entities (Statement I.4) concerned in respect of non-WHO programme activities include: Real Estate Fund Special Account for Concessions at Headquarters Tax Equalization Fund Terminal Payments Account Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS) International Agency for Research on Cancer (IARC) International Computing Centre (ICC) Staff Health Insurance (SHI) Special Fund for Compensation Due to Estates of Deceased Staff Members Other Funds Foundations
Detailed financial reports are issued separately by the Joint United Nations Programme on HIV/AIDS (UNAIDS), the International Agency for Research on Cancer (IARC) and the International Computing Centre (ICC). Each of these entities is subject to separate audit certification addressed to their respective governing body. Staff health insurance (Statement 1.4)
21. Income of the Staff Health Insurance Fund consists of contributions received in respect of active and retired staff (of which one third is paid by the participants and two thirds by the Organization) as well as interest earned on investments. In addition, the Organization pays a special contribution to finance the actuarial deficit for retired staff which was identified following an actuarial study in 1989. The final payment due in this respect was made in 1999. As a measure to ensure adequate funding for future claims of retired staff, a fixed percentage (currently 25%) of active staff contributions are set aside each year. The remaining 75% of contributions (known as first-tier contributions) are required to meet the current claims of active staff. If contributions are not sufficient for this purpose, any deficit must be met by an additional (second-tier) contribution payable by staff and the Organization in the office/region concerned throughout the following year. The balance of the fund at 31 December 1999, $ 187 959 568, is comprised as follows:
A53/17 Page 36
31 December 1997 US$ To meet statutory reserves: Settlement of outstanding claims (SHI rule 470.1) Future costs of retired staff (SHI rule 470.2) Reserve for major claims and cost of reinsurance (SHI rule 470.3) 7 416 115 116 175 000 31 527 348 155 118 463
31 December 1999 US$ 8 396 708 143 302 000 36 260 860 187 959 568
Other funds (Statements I and I.4) Special fund for compensation (Statement I.4)
22. This fund was set up by the Director-General in terms of Financial Regulation 6.5 for the payment of periodic benefits awarded under WHO compensation rules for service-incurred accidents and illnesses. It is financed by transfers of funds from the budgetary resources from which the staff member was financed; the credit of benefits received from the commercial accident and illness insurance policy established for this purpose, and interest earned. Due to estates of deceased staff members (Statement I.4)
23. These comprise balances due on account of deceased members of WHO staff, pending conclusion of legal and other successional formalities. Other trust funds held by WHO (Statement I.4)
24. These funds comprise balances held on behalf of interagency and other entities for the administration of which WHO acts as trustee. Foundations (Statement I.4)
25. These comprise foundations for which WHO holds funds in trust and is responsible for financial and administrative management. At 31 December 1999, they were: • • • • • • • • • Léon Bernard Foundation Darling Foundation Dr A.T. Shousha Foundation Jacques Parisot Foundation Ihsan Dogramaci Family Foundation Dr Comlan A.A. Quenum Prize Francesco Pocchiari Fellowship United Arab Emirates Health Foundation Down Syndrome Research Prize in the Eastern Mediterranean Region.
Provision for delays in the collection of assessed contributions (Statement I)
26. This provision relates to the assessed contributions of Members to the effective working budget under the approved regular programme budget for 1998-1999 which remained unpaid at 31 December 1999. The total amount of the provision corresponds to the total assessed contributions outstanding for Members as reflected in Schedule 3.
A53/17 Page 37 Refund to Members of assessed contributions for current biennium
27. Resolution WHA50.25 decided that the balance of casual income for 1997 remaining after meeting the provisions of the incentive scheme and the exchange rate facility be returned to Member States to apply to their assessments in 1999. The balance of casual income at 31 December 1997 was $ 16 256 760. Payment of assessed contributions of prior financial periods (Statement I)
28. Arrears of assessed contributions collected in 1998-1999 in respect of prior financial periods and their disposition are detailed as follows:
Financial Period 1974-1978 1986-1987 1988-1989 1990-1991 1992-1993 1994-1995 1996-1997
Internal Borrowing US$ 1 852 977 91 093 146 92 946 123 (Schedule 4)
Working Capital Fund US$ 22 819 726 623 4 632 071 5 381 513 (Schedule 4)
Casual Income US$ 51 183 43 560 174 202 1 339 240 8 690 538 10 298 723 (Schedule 5)
Amount US$ 51 183 43 560 174 202 22 819 1 339 240 2 579 600 104 415 755 108 626 359 (Schedule 3)
Savings on liquidation of obligations of prior financial periods (Statements I, I.1, I.2, I.3 and I.4)
29. These relate to the settlement in 1998-1999 of unliquidated obligations of prior financial periods, and the net savings that had accrued when settlement took place, or when obligations were no longer required. The savings reported relate to those funds under which accrual expenditure variances are dealt with by debit/credit to a casual or miscellaneous income account in the fund concerned. These funds and the income credited to each during the 1998-1999 biennium, comprise the following: Regular budget United Nations Development Programme United Nations Environment Programme United Nations International Drug Control Programme United Nations Population Fund United Nations Trust Fund for Assistance to Lebanon United Nations Afghanistan Emergency Trust Fund United Nations Sundry Trust and Voluntary Funds African Programme for Onchocerciasis Control Onchocerciasis Control Programme Trust Fund for the Special Programme for Research and Training in Tropical Diseases Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS) Sasakawa Health Trust Fund Net savings arising on settlement of unliquidated obligations in all other funds are credited to the obligation concerned.
A53/17 Page 38 Eliminations (Statement I - Annex 2)
30. In an operational environment such as that in WHO where programme activities under the regular budget and those under extrabudgetary sources of financing comprise a single entity, thus forming the international health programme, expenditure is consolidated in the Organization’s accounts and financial statements to reflect globally the costs of technical cooperation programme delivery. In terms of the consolidation concept and where, as in WHO, there are material transfers of financial resources between individual funds during the financial period, it is necessary, in order to reflect the net costs of overall programme delivery, to eliminate such transfers and thus avoid the effects of “double counting” of expenditures and corresponding income. In addition, it is necessary to eliminate the “double counting” effects between expenditures for programme support services charged against extrabudgetary funds and the corresponding support costs income received in the Special Account for Servicing Costs. Statement of Assets, Liabilities and Fund Balances as at 31 December 1999 (Statement II) Assets Cash, Deposits and Securities (Schedule 1(a))
Cash at banks, in transit and on hand at headquarters and in the regions 31. The aggregation of all the Organization’s cash funds, including cash, imprest and bank accounts, and funds in transit, reflects a balance of $ 52 613 523. Imprest account balances have not been adjusted to reflect disbursements reported too late for inclusion in the accounts of the closing year. These disbursements will be accounted for against the appropriate liquidation of the 1998-1999 obligations in the next biennium. Letters of credit
32. In addition to actual cash resources in hand, WHO had available to it at 31 December 1999 undrawn balances totalling $ 48 321 483 ($ 18 966 113 at 31 December 1997) under letters of credit received from the United States of America. These relate to the following activities: The US Agency for International Development • Under the Voluntary Fund for Health Promotion, $ 37 040 885. • Under the Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS), $ 10 200 000. The US Environmental Protection Agency • Under the Voluntary Fund for Health Promotion, $ 1 080 598. The funds available under these respective facilities are recorded in the accounts of the Organization only when actually drawn down, according to programme requirements as implementation of activities proceeds. As and when cash is received, this is recorded as income under the funds concerned. Accounts receivable
33. Sundry debtors - $ 37 396 672, as detailed below - comprising payments due from other international organizations, advances made to staff members in accordance with the regulations and rules of the Organization, deposit accounts and other debtors. This item includes certain expenses that will be charged against corresponding reserves for unliquidated obligations, or other appropriate accounts in 2000.
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31 December 1997 US$ Personal accounts of WHO staff - advances including standing advances Due from other United Nations organizations and agencies, institutions, governments and ministries, firms, corporations and other entities, for goods and services provided Clearance accounts – for processing in 2000 Other debtors Guarantee deposits 12 895 382
31 December 1999 US$ 16 300 243
10 479 419 7 928 564 399 365 61 415 31 764 145
8 775 521 11 276 973 983 966 59 969 37 396 672
Prepaid expenses
34. The amount of $ 315 598 represents disbursements made in respect of obligations against the next financial period and will be charged as expenditure in that period. Capital assets (Real property)
35. These assets refer to WHO properties at headquarters and in regional office locations which have been either purchased or constructed by the Organization or donated to it, and where the land upon which buildings have been erected is either owned by the Organization or has been made available to it by the host country concerned, at no cost or at a nominal annual ground rent. The value of capital assets represents the cost at the time of acquisition or construction, or, in the case of donated properties, the value advised by the donor. No adjustment is made for depreciation, appreciation or fluctuations in currencies; similarly, no adjustment in the value of land and buildings of the Regional Office for Africa in Brazzaville. In those regional office locations where WHO occupies premises made available to it by the host country concerned, either at no cost or on a rental basis, the costs of improvements or extensions to such premises which have been borne by WHO are not recorded as capital assets in the accounts of the Organization but are charged as expenditure. During 1998-1999, there were increases (decreases) in capital assets at the following locations, representing obligations incurred during 1998-1999: US$ Regional Office for the Eastern Mediterranean Construction of new regional office building in Cairo, resolutions WHA49.8, WHA50.11 Regional Office for South East Asia Addition of one floor to the regional office building, resolution WHA46.22 9 622 936 (4 652)
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At 31 December 1999, the cost of land and buildings at each location comprises the following:
Balance Location 1 January 1998 US$ Headquarters Regional Office for Africa African Region - other Total: Regional Office for Africa Regional Office for South-East Asia Regional Office for the Eastern Mediterranean Eastern Mediterranean Region - other Total: Regional Office for the Eastern Mediterranean Regional Office for the Western Pacific Total: Capital assets (Real property) 365 425 3 456 758 55 169 240 297 056 68 369 7 012 106 1 249 634 8 261 740 1 487 947 41 597 370
Increase US$
Decrease US$
Balance US$ 41 597 370
1998-1999 1998-1999 31 Dec 1999
8 261 740 (4 652) 1 483 295
9 622 936
9 988 361 3 456 758
9 622 936
(4 652)
64 787 524
Liabilities Members’ contributions received in advance
36. At 31 December 1999, 51 members had paid in advance or in part, their contributions to the effective working budget for 2000-2001 and future years. Contributions paid in advance at that date amounted to $ 42 111 903, and related to the following members, in the amounts and for the years indicated:
Member Country Angola Australia Bangladesh Belarus Benin Bhutan Botswana Burkina Faso Cambodia Canada Colombia Cook Islands Costa Rica
2000 US$ 33 691 203 540 1 630 61 920 136 510 2 150 5 354 145 11 000 450 52 650 85 30 618
2001 US$
Future years US$
Total US$ 33 691 203 540 1 630 62 353 136 510 2 150 5 354 145 11 000 450 52 650 85 30 618
433
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Members’ Contributions Received in Advance (continued)
Member Country Cuba Czech Republic Democratic People’s Republic of Korea Dominica Eritrea Estonia France Guatemala Haiti Kiribati Latvia Madagascar Malawi Malta Mauritius Mexico Micronesia (Federated States of) Mozambique Myanmar New Zealand Pakistan Qatar Republic of Korea Romania Saint Lucia Samoa Sao Tome and Principe Saudi Arabia Slovakia South Africa Swaziland Sweden Thailand Tonga Tunisia United Kingdom of Great Britain and Northern Ireland United Republic of Tanzania Zambia Total US$
2000 US$ 98 495 280 000 1 438 4 125 3 560 49 875 1 374 250 34 8 400 160 15 901 2 158 7 865 510 475 1 3 615 3 580 365 825 191 20 751 5 201 158 990 10 730 160 3 525 3 905 91 040 137 785 1 482 705 8 350 4 354 290 637 348 3 525 12 599 20 751 255 11 570 8 085 41 774 691
2001 US$
Future years US$
970
8 400
17 020
7 865
16 406
3 615 3 580
72 000 30 670
3 525 3 905 6 180 8 350
32 635 29 333
17 835
3 525
32 030
Total US$ 98 495 280 000 1 438 5 095 3 560 49 875 1 374 250 34 33 820 160 15 901 2 158 32 136 510 475 1 79 230 37 830 365 825 191 20 751 5 201 158 990 10 730 160 39 685 37 143 91 040 143 965 1 482 705 34 535 4 354 290 637 348 39 080 12 599 20 751 255 30 750 27 840 42 111 903
11 570 8 085 70 003
7 610 11 670 267 209
A53/17 Page 42 Unliquidated Obligations (Notes 16,17)
37. Obligations are established and maintained for the regular budget, other WHO funds, Voluntary Fund for Health Promotion and Trust Funds (other than under interagency arrangements with other United Nations organizations and agencies) in accordance with WHO Financial Regulations and Financial Rules. For interagency arrangements, the financial regulations of the respective organizations and agencies apply. Accounts payable
38. Accounts payable, $ 33 468 318, representing the firm liabilities of the Organization for goods supplied and services rendered for which suppliers’ invoices, staff claims and claims from contractors and other organizations had been received before year-end and their actual cost reflected in the expenditure accounts, but for which payment had not been made by 31 December 1999. These comprise the following: 31 Dec 1997 US$ Personal accounts of WHO Staff – proceeds of claims and other amounts due Due to other United Nations organizations and agencies, institutions, government ministries, firms, corporations and other entities, for goods and services received Due to United Nations Joint Staff Pension Fund for contributions and other payments outstanding Clearance accounts – for processing in 2000 1 467 131 31 Dec 1999 US$ 3 710 903
2 841 526 6 990 509 5 731 148 17 030 314
14 302 122 8 796 780 6 658 513 33 468 318
Fund Balances Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS)
39. In terms of Financial Regulation 6.5, the Director-General has established a trust fund for UNAIDS to record the financial operations of the programme. Since UNAIDS is a cosponsored interagency programme undertaken by UNICEF, UNDP, UNFPA, UNESCO, WHO and the World Bank, it is not considered part of WHO’s International Health Programme but as a separate entity. Accordingly, it appears in the WHO’s Consolidated Statement of Income and Expenditure and Changes in Fund Balances, Other Trust Funds and Associated Entities, Statement I.4 and its expenditure is included under “Other purposes”. It is reflected as a separate trust fund in the Statement of Assets, Liabilities and Fund Balances, Statement II. UNAIDS income is recorded on a cash basis; its expenditure on the basis of accrual accounting. The Executive Director of UNAIDS is responsible for presenting the UNAIDS Financial Report to the Programme Coordinating Board. The accounts and the financial report of UNAIDS are subject to WHO’s internal and external audit examination. The External Auditor will address a separate audit report and opinion for 1998-1999 to the Chairman of the Programme Coordinating Board of UNAIDS. Working Capital Fund/Internal Borrowing
40. At 31 December 1999, the Working Capital Fund of $ 31 000 000 had been fully withdrawn to finance regular budget implementation pending receipt of assessed contributions from Member States. A further amount of US $ 63 110 688 was internally borrowed against other available WHO funds. Holding Account
41. This account holds funds appropriated by the Health Assembly to help finance the regular budget for the next financial period. By resolution WHA52.20 the Health Assembly appropriated $ 23 320 914 of casual income and $ 1 700 000 from the reimbursement of estimated programme support costs by the United
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Nations Development Programme to help finance the 2000-2001 programme budget. These funds will be credited as income to the regular budget on 1 January 2000. Revolving Sales Fund
42. This account is credited with the proceeds from sale of publications, international certificates of vaccination, films, videos and other information material. Against it are charged the costs of producing additional copies of such items for sale. In 1998-1999, in accordance with resolution WHA22.8, an amount of $ 5 926 379 ($ 6 050 000 1996-1997) was transferred from the Revolving Sales Fund to the Special Account for Servicing Costs in order to finance, through the latter account, the cost of sales promotion and of staff engaged in sales for the financial period 2000-2001. Further, in accordance with resolution WHA22.8, an amount of $ 877 268 ($ 449 852 1996-1997) was transferred to casual income, leaving a balance of $ 500 000 in the Revolving Sales Fund. Special Account for Operation of Concessions at Headquarters
43. Established by the Director-General under the terms of Financial Regulation 6.5, this account is credited with all amounts paid by concessionaires for space, equipment and other facilities made available by the Organization. The cost of repairs, utilities, maintenance work and replacement of equipment are charged against the account. Members’ Equity in Capital Assets (Real Property)
44. The balance of $ 64 787 524 represents the value of capital assets (real property) at 31 December 1999 (Note 35). Non-expendable Equipment
45. In accordance with established accounting policy, non-expendable equipment, including furniture, computers and other office equipment and motor vehicles, is charged as expenditure on purchase. Nonexpendable equipment is recorded at cost. The total value at cost at 31 December 1999 was $ 94 414 035 ($ 100 750 903 at 31 December 1997). Due to the civil disturbances in Brazzaville, WHO’s fixtures, equipment and motor vehicles costing $ 2 064 150 were damaged or looted during the last quarter in 1997, and consequently these items were not included in the above figure. United Nations Joint Staff Pension Fund
46. WHO is a member organization participating in the United Nations Joint Staff Pension Fund (UNJSPF) which was established by the United Nations General Assembly to provide retirement, death, disability and related benefits. The Pension Fund is a funded defined benefit plan. The financial obligation of the Organization to the UNJSPF consists of its mandated contribution at the rate established by the United Nations General Assembly together with its share of any actuarial deficiency payments which might become payable pursuant to Article 26 of the Regulations of the Fund. Amounts written-off, administrative waivers, ex-gratia payments
47. During 1998-1999 there were fifteen cases of amounts written-off totalling $ 149 647.28; six cases of administrative waivers which amounted to $ 7 492.55 and no ex-gratia payments. Contingent Liabilities
48. At 31 December 1999, there were pending legal proceedings against the Organization of an immaterial nature on matters relating to rental at one field office and to one accident involving a WHO vehicle. In addition claims are being processed relating to rental at one field office, to the fraudulent purchase of vehicles and to illness contracted by a staff member while on duty travel. Finally, there were outstanding personnel matters before the ILO Administrative Tribunal. These are being contested by the Organization; the legal proceedings have not progressed sufficiently to determine the extent of any liability of the
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Organization with any degree of certainty. A contingent liability of $ 16 518 477 exists for mutually agreed separations (MAS) signed by staff members by 31 December 1999, who will leave during 2000.
Statement of Appropriations for the Financial Period 1998-1999 (Statement IV) Transfers between sections of the Appropriation Resolution
49. Paragraph C of the Appropriation Resolution for the financial period 1998-1999 (resolution WHA50.25) states the following: Notwithstanding the provisions of Financial Regulation 4.5, the Director-General is authorized to make transfers between those appropriation sections that constitute the effective working budget up to an amount not exceeding 10% of the amount appropriated for the section from which the transfer is made, this percentage being established in respect of section 2 exclusive of the provision made for the DirectorGeneral’s and Regional Directors’ Development Programme (US$ 7 592 000). The Director-General is also authorized to apply amounts not exceeding the provision for the Director-General’s and Regional Directors’ Development Programme to those sections of the effective working budget under which the programme expenditure will be incurred. All such transfers shall be reported in the financial report for the financial period 1998-1999. Any other transfers required shall be made and reported in accordance with the provisions of Financial Regulation 4.5. 50. All transfers between appropriation sections made by the Director-General during the 1998-1999 biennium were within the authority granted under the Appropriation Resolution and were effected in order to meet changing programme needs. However, an additional requirement under one allocation in a given section may frequently be offset by a reduced requirement under another allocation in the same appropriation section, thereby avoiding the need for a transfer. A consolidated record of transfers made by the DirectorGeneral is kept centrally at headquarters. The transfers made in the course of the implementation of the 1998-1999 programme budget are summarized as follows:
Appropriations Section 1- Governing bodies US$ The regions - in the African Region, increased cost of the Regional Committee - in the Western Pacific Region, increased costs for the Regional Committee offset by: - in the South-East Asia Region, savings under the cost of the Regional Committee - minor costing adjustments in the Eastern Mediterranean region Global and interregional activities - Reduced requirements for the Health Assembly Net transfers out (500 000) (146 100) 340 000
67 600
(50 300) (3 400)
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Appropriation Section 2 - Health policy and management US$ The regions
- funds from the Director-General’s and Regional Directors’ Development Programme, reprogrammed into this section: Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific 136 571 104 200 335 007 63 060 298 600 255 500
- in the African Region, increased requirements under the National Professional Officers scheme - in the South-East Asia Region, increased requirements for supplementary intercountry programmes (SEA/RC50/R2) - in the European Region, increased requirements for humanitarian assistance - in the Eastern Mediterranean Region, increases as per Joint Programme Review Missions offset by: - savings due to delays in recruitment of staff in the Western Pacific Region Global and interregional activities - activities financed from the Director-General’s Development Programme - savings under staff costs Net transfers in
3 280 500 2 984 800 211 300 1 409 700
(1 984 100)
931 843 (400 000) 7 626 981
Director-General’s and Regional Directors’ Development Programme The regions - activities under the Director-General’s and Regional Directors’ Development Programme, reprogrammed under relevant sections as reflected in Table VIII Global and interregional activities - activities implemented under the Director-General’s Development Programme, reprogrammed under relevant sections as reflected in Table VIII Net transfers out
(3 651 900)
(2 278 700) (5 930 600)
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Appropriation Section 3 - Health services development US$ The regions - funds from the Director-General’s and Regional Directors’ Development Programme, reprogrammed into this section: Africa South-East Asia Europe Eastern Mediterranean Western Pacific 375 241 90 600 110 000 345 400 22 200
offset by: - in the African Region, savings reprogrammed to priority programmes under other sections - in the South East Asia Region, reprogramming to other sections - in the European Region, reduced regional office requirements and shift of resources to other programmes - in the Eastern Mediterranean Region, reprogramming to other sections - in the Western Pacific Region, reduced requirements due to staff vacancies in many country programmes Global and interregional activities - activities financed from the Director-General’s Development Programme - savings under staff costs Net transfers out
(2 848 400) (2 265 600) (324 900) (1 194 700) (1 226 300)
48 000 (500 000) (7 368 459)
Appropriation Section 4 - Promotion and protection of health The regions - funds from the Director-General’s and Regional Directors’ Development Programme, reprogrammed into this section: Africa South-East Asia Europe Eastern Mediterranean Western Pacific 24 666 44 800 140 000 129 500 127 900
- in the European region, increased requirements for the Tobacco or Health programme
323 300
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offset by: US$ - in the African Region, savings reprogrammed to priority programmes under other sections - in the South-East Region, reprogramming for supplementary intercountry programmes (SEA/RC50/R2) and other savings - in the Eastern Mediterranean Region, reprogramming to other sections following Joint Programme Review Missions - in the Western Pacific Region, minor costing adjustments Global and interregional activities - activities financed from the Director-General’s Development Programme - increased requirements due to restructuring Net transfers out (788 600) (4 062 100) (1 209 700) (58 900)
303 350 1 400 000 (3 625 784)
Appropriation Section 5 - Integrated control of disease The regions - funds from the Director-General’s and Regional Directors’ Development Programme, reprogrammed into this section: Africa South-East Asia Europe Eastern Mediterranean Western Pacific 170 422 77 600 128 200 246 100 695 000
- in the African Region, minor costing adjustments within the intercountry programme - in the South-East Asia Region, increased requirements under country programmes, including Roll Back Malaria and Tuberculosis - in the Eastern Mediterranean Region, increased requirements - in the Western Pacific Region, increased activities in many diseaseoriented programmes at both country and intercountry levels offset by: - in the European Region, minor adjustments in the regional office structure Global and interregional activities - activities financed from the Director-General’s Development Programme - increased requirements due to restructuring Net transfers in
380 500
3 579 800 907 700 3 483 800
(209 700)
726 840 200 000 10 386 262
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Appropriation Section 6 - Administrative services US$ The regions - in the Eastern Mediterranean Regional Office, additional requirements offset by: - in the African Regional Office, savings in staff costs - in the South-East Asia Regional Office, savings in staff costs - in the Western Pacific Regional Office, savings in staff costs due to vacancies Global and interregional activities - savings under staff costs Net transfers out Overall net transfer (200 000) (942 300) (364 000) (186 600) (282 100)
90 400
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Schedule 1(a) Cash, Deposits and Securities as at 31 December 1999 (expressed in US dollars)
Funds in currencies other than US dollars are accounted at their dollar equivalent based on the Organization’s official rates of exchange. Deposits and securities are accounted at cost.
Cash at banks, in transit and on hand at headquarters and in the regions Deposits and securities held on behalf of the Organization, its special accounts and trust funds, including the various foundations administered by WHO Deposits in US dollars in French francs Securities Eurocommercial paper in US dollars Treasury bills, notes and bonds in US dollars Floating rate notes in US dollars Debentures of the World Bank and regional development banks in US dollars Debentures of the World Bank and regional development banks in Swiss francs Debentures in US dollars Debentures in Swiss francs Fixed-term deposits in US dollars Fixed-term deposits in Swiss francs Total cash and other liquid resources at 31 December 1999 36 926 649 181 894 665 2 999 950 53 638 780 3 946 227 74 631 620 32 741 004 16 000 000 4 901 961 590 762 734 220 082
52 613 523
590 982 816
407 680 856
a/
998 663 672 1 051 277 195
b/
a/ b/
The market value of the securities held was $ 399 075 925 The total revenue from deposits and securities for the financial period 1998-1999, taking into account an amount of $ 5 507 518 exchange differential (loss), was $ 76 073 539 (1996-1997: $ 67 084 297), of which $ 7 676 300 (1996-1997: $ 6 706 040) related to the regular budget and was credited to casual income. After taking into account an amount of $ 158 231 (1996-1997: $ 164 930) which related to WHO Treasury portfolio management costs, the balance of $ 68 239 008 (1996-1997: $ 60 213 327) was apportioned to other funds and special accounts
in accordance with Financial Regulations 6.7 and 9.3.
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Schedule 1(b) Cash, Deposits and Securities by Source of Funds as at 31 December 1999 (expressed in US dollars) 1997 Accounts payable and receivable: Accounts payable Accounts receivable and prepaid expenses Unliquidated obligations: WHO Programme Activities: Inter-organization arrangements Other WHO funds Regular budget Trust funds Voluntary Fund for Health Promotion Non-WHO programme activities: International Computing Centre (ICC) Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS) Trust funds Less: Non-cash item - interest accrued and unapportioned Voluntary Fund for Health Promotion Internal borrowing Other WHO funds: Casual Income Account Holding Account Real Estate Fund Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training Revolving Sales Fund Special Account for Operation of Concessions at Headquarters Special Account for Servicing Costs Special Account for the WHO Renewal Fund Tax Equalization Fund Terminal Payments Account Members’ contributions received in advance Total 17 030 314 32 292 212 33 468 318 37 712 270 1999
(15 261 898)
(4 243 952)
6 777 611 11 421 165 83 147 148 30 514 524 52 655 872
184 516 320
15 115 042 16 820 773 78 116 934 40 969 148 74 362 449
225 384 346
1 607 587 33 612 529 262 499 655 6 329 233 256 170 422 186 542 556 (92 946 123) 35 220 116
3 331 510 28 083 734 336 152 839 11 494 034 324 658 805 275 090 500 (63 110 688) 31 415 244
36 370 301 15 517 000 13 184 075 400 000 500 000 2 780 373 89 446 873 1 217 210 39 504 061
28 672 961 25 020 914 1 731 678 400 000 500 000 3 443 029 104 757 266 1 909 448 5 898 440 47 637 301
198 919 893 20 851 491 774 012 777
219 971 037 42 111 903 1 051 277 195
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Schedule 2 Income and Obligations for the Effective Working Regular Budget for 1998-1999 (expressed in US dollars)
Income Net Assessments on Member States (Schedule 3) (i) Less: Provision for delays in collection of assessed contributions Contributions collected Less: Amounts transferred to Tax Equalization Fund to meet income tax reimbursements (ii)
Actual 837 502 000 93 817 232 743 684 768 10 365 000 733 319 768
Budget 837 502 000
837 502 000 10 365 000 827 137 000 2 900 000 12 617 000 842 654 000 5 232 900 837 421 100
Plus: Reimbursement of programme support costs by the United Nations Development Programme (resolution WHA50.25) Casual income appropriated (resolution WHA50.25) Contributions collected for the effective working budget Less: Exchange rate facility - net savings transferred to Casual Income Account (Statement IV)(resolution WHA50.25) Total Income for the effective working budget Expenditure Obligations for the effective working budget (Statement IV, Appropriation sections 1 to 6) (iii) Excess of obligations over income Financed from: - the Working Capital Fund - Internal borrowing 5 381 513 63 110 688
2 900 000 12 617 000 748 836 768 5 232 900 743 603 868
812 096 069 68 492 201 68 492 201
837 421 100 -
(i)
Assessed contributions for 1998-1999 Contributions collected: in 1998 in 1999 Total (Schedule 3) Shortfall in collection of contributions for 1998-1999 345 575 684 398 109 084
837 502 000
100.00% 41.26% 47.54%
743 684 768 93 817 232
88.80% 11.20%
(ii) Staff assessment (Appropriation section 7) Less: Credits to Members
80 000 000 69 635 000 10 365 000
(iii) Effective appropriations (Statement IV) Less: Obligations Unobligated balance of appropriations (Statement IV)
837 421 100 812 096 069 25 325 031
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Schedule 3 Assessed Contributions – 1998-1999 and Prior Financial Periods (expressed in US dollars) Following the introduction in WHO of the United Nations System Accounting Standards from 1996-1997, Assessed Contributions are reflected as income in the accounts on an accrual basis, with a corresponding provision for delays in collection of outstanding contributions.
Members , including Associate Members
Net
1998-1999 assessments Collected Balance during 1998-1999 outstanding 31 Dec-99
Assessments for prior financial periods Balance Collected or Balance outstanding 1 Jan-98 adjusted during 1998-1999 outstanding 31 Dec-99
Total outstanding
Assessments
Members assessed for the effective working budget Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Central African Republic Chad Chile China Colombia 54 420 52 600 1 024 410 58 600 83 580 50 230 6 175 110 255 320 11 869 160 7 333 260 552 500 142 420 149 850 81 640 73 750 1 469 160 8 637 330 44 250 48 570 44 040 71 140 62 790 81 910 12 707 650 162 240 414 320 50 230 46 050 46 050 96 270 23 502 610 50 220 46 050 46 050 874 790 6 927 850 844 110 874 790 6 927 850 844 110 8 331 617 44 250 48 570 44 040 42 395 41 860 81 910 5 405 190 162 240 414 320 50 230 13 680 46 050 75 911 23 502 610 50 220 46 050 46 050 42 105 140 016 243 700 42 105 32 459 160 107 557 243 540 153 607 289 590 20 359 32 370 655 851 69 856 105 295 41 585 46 809 655 851 69 856 105 295 41 585 46 809 20 359 32 370 7 302 460 9 922 470 9 922 470 7 302 460 28 745 20 930 40 745 582 350 40 745 160 785 421 565 28 745 442 495 4 418 4 418 142 420 149 850 81 640 42 540 31 210 1 469 160 305 713 2 317 190 551 192 1 786 286 551 192 530 904 31 210 2 000 064 305 713 11 869 160 3 658 110 3 675 150 552 500 180 562 3 637 010 180 562 3 580 3 633 430 3 675 150 4 185 930 52 600 1 024 410 58 600 83 580 50 230 6 175 110 255 320 256 724 2 169 182 2 192 710 100 330 467 437 1 790 156 394 1 701 745 2 190 920 206 624 7 876 855 2 446 240 54 420 164 130 490 163 640 218 060
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Schedule 3 (continued)
Members , including Associate Members
Net
1998-1999 assessments Collected Balance during 1998-1999 outstanding 31 Dec-99
Assessments for prior financial periods Balance Collected or Balance outstanding 1 Jan-98 adjusted during 1998-1999 outstanding 31 Dec-99
Total outstanding
Assessm ents
Comoros Congo Cook Islands Costa Rica C ô te d'Ivoire Croatia Cuba Cyprus Czech Republic Democratic People's Republic of Korea Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Honduras Hungary Iceland India Indonesia Iran (Islamic Republic of) Iraq Ireland
46 050 424 420 45 020 108 170 76 900 523 200 313 920 259 050 1 450 970 278 390 71 110 5 683 630 46 050 46 050 104 640 167 420 587 610 91 310 46 050 44 150 230 200 64 900 56 760 4 666 940 54 578 460 104 640 46 050 539 950 76 693 180 69 930 2 928 760 46 050 159 050 54 400 46 050 43 980 50 230 53 860 1 047 200 251 560 2 453 410 1 312 220 2 636 950 770 160 1 721 850 1 721 850 43 980 50 230 53 826 1 047 200 251 560 2 453 410 1 149 725 999 302 159 050 76 693 180 42 385 2 928 760 44 150 230 200 64 900 56 760 4 666 940 54 578 460 44 715 587 610 91 310 46 050 212 032 45 020 108 170 76 900 523 200 313 920 259 050 1 450 970 278 390 20 448 5 683 630
46 050 212 388
407 593 685 240
160 685 240
407 433
453 483 212 388
1 139 468
485 734
653 734
653 734
50 662 46 050 104 640 167 420 133 792 41 560 869 165 276 878 92 372 41 560 140 587 276 878 728 578 41 420
50 662 87 470 833 218 167 420
46 050
338 709 87 168
36 173 87 168
302 536
348 586
59 925 46 050 539 950 27 545 46 050 54 400 46 050
153 030 110 665 3 791 480
153 030 68 475 3 090 42 190 3 788 390
59 925 88 240 4 328 340 27 545
73 398 81 169 82 366 235 089 149 41 280
31 988 81 169 5 490 83 860 149 41 280
41 410 76 876 151 229
87 460 131 276 197 279
34
34
162 495 1 637 648 770 160 2 989 238 4 401 237 2 989 238 7 150 4 394 087
162 495 1 637 648 5 164 247
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Schedule 3 (continued)
Members , including Associate Members
Net
1998-1999 assessments Collected Balance during 1998-1999 outstanding 31 Dec-99
Assessments for prior financial periods Balance Collected or Balance outstanding 1 Jan-98 adjusted during 1998-1999 outstanding 31 Dec-99
Total outstanding
Assessm ents
Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Lao People ’s Democratic Republic Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia (Federated States of) Monaco Mongolia Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria Niue Norway Oman Pakistan
2 460 180 43 279 050 66 050 144 382 250 65 130 1 067 340 70 360 44 110 1 303 750 159 050 51 190 435 300 108 250 48 210 50 230 1 381 260 426 930 560 430 54 420 49 340 1 303 360 44 080 50 200 98 410 46 040 46 050 77 430 7 295 370 45 070 56 600 48 280 289 880 44 200 73 260 69 310 46 040 56 630 12 937 870 1 822 570 46 040 50 230 623 230 45 920 4 703 760 370 430 491 590
2 460 180 41 765 389 66 050 144 382 250 65 130 1 067 340 70 360 44 110 1 303 750 159 050 51 190 100 450 45 580 48 210 50 230 559 398 3 580 560 430 54 420 49 340 1 303 360 44 080 42 153 98 410 46 040 3 950 77 430 7 295 370 45 070 56 600 48 280 289 880 44 200 73 260 69 310 46 040 41 525 12 937 870 1 822 570 1 599 44 441 50 230 623 230 35 850 4 703 760 370 430 491 590 10 070 40 417 201 516 463 545 40 417 42 123 6 340 159 393 457 205 44 441 209 623 1 080 435 10 070 15 105 82 630 50 160 32 470 78 510 15 105 907 052 1 260 907 052 1 260 42 100 126 885 126 885 42 100 8 047 83 753 83 753 8 047 51 772 51 772 821 862 423 350 334 850 62 670 2 259 930 40 160 41 230 356 137 1 772 918 1 022 920 846 180 40 160 41 230 41 315 1 772 918 1 022 920 314 822 365 052 821 862 423 350 1 413 750 1 748 600 62 670 1 041 480 29 803 1 011 677 1 170 727 4 631 031 27 232 894 172 23 487 3 736 859 3 745 4 804 199 74 105 1 513 661 4 021 639 4 021 639 1 513 661
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Schedule 3 (continued)
Members , including Associate Members
Net
1998-1999 assessments Collected Balance during 1998-1999 outstanding 31 Dec-99
Assessments for prior financial periods Balance Collected or Balance outstanding 1 Jan-98 adjusted during 1998-1999 outstanding 31 Dec-99
Total outstanding
Assessm ents
Palau Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Republic of Korea Republic of Moldova Romania Russian Federation Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka Sudan Suriname Swaziland Sweden Switzerland Syrian Arab Republic Tajikistan Thailand The Former Yugoslav Republic of Macedonia Togo Tokelau Tonga
45 170 96 270 69 970 99 790 640 390 570 050 2 189 250 2 813 350 45 770 300 290 7 304 690 410 190 904 090 23 703 360 46 050 44 200 43 950 45 950 44 220 48 370 44 180 5 268 460 65 940 49 330 45 010 1 289 150 473 460 529 180 46 050 46 050 2 728 540 20 073 420 90 200 71 160 58 600 49 480 9 290 570 9 754 020 465 290 104 640 1 208 580 56 760 46 050 45 150 43 960
45 170 72 359 59 135 79 431 56 666 353 834 2 189 250 2 813 350 45 770 300 290 7 304 690 410 190 904 090 5 666 433 46 050 44 200 43 950 41 970 44 220 48 370 44 180 5 268 460 39 540 49 330 160 1 289 150 473 460 529 180 41 860 2 728 540 20 073 420 90 200 62 493 650 49 480 9 290 570 9 754 020 465 290 104 640 1 208 580 29 956 38 952 13 570 43 960 26 804 7 098 31 580 7 733 28 030 7 733 28 030 26 804 7 098 31 580 732 074 59 693 672 381 777 021 8 667 57 950 26 012 26 012 8 667 57 950 4 190 46 050 285 360 82 570 329 023 285 360 82 570 160 328 863 4 190 374 913 44 850 44 850 26 400 26 400 510 510 3 980 49 119 49 119 3 980 18 036 927 2 460 149 661 585 34 960 170 2 930 661 585 34 960 170 18 036 927 2 457 219 2 867 409 82 200 160 82 040 127 810 23 911 10 835 20 359 583 724 216 216 134 716 134 716 679 777 679 777 20 061 20 061 23 911 10 835 20 359 583 724 216 216
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Schedule 3 (continued)
Members , including Associate Members
Net
1998-1999 assessments Collected Balance during 1998-1999 outstanding 31 Dec-99
Assessments for prior financial periods Balance Collected or Balance outstanding 1 Jan-98 adjusted during 1998-1999 outstanding 31 Dec-99
Total outstanding
Assessments
Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom of Great Britain and Northern Ireland United Republic of Tanzania United States of America Uruguay Uzbekistan Vanuatu Venezuela Viet Nam Yemen Yugoslavia Zambia Zimbabwe Total - Members assessed for the effective working budget Members included in the undistributed reserve Total - Members included in the undistributed reserve New and formerly inactive Members Belarus (a) Ukraine (a) Total - new and formerly Inactive members Total - all members
196 720 234 500 3 338 630 159 050 44 240 57 450 5 721 790 1 527 310 41 907 670 53 580 216 743 160 364 140 694 810 44 290 2 063 520 69 240 73 720 556 690 48 470 78 360
191 065 234 500 3 338 630
5 655
78 767 705 000
78 767 705 000 1 300 33 910 28 477 160 990 450
5 655
159 050 44 240 57 450 5 721 790 1 527 310 41 907 670 53 580 181 042 791 190 278 549 980 44 290 2 063 520 69 240 73 720 556 690 48 470 42 735 35 625 35 700 369 173 862 144 830
991 750 33 910 28 477 160
1 149 500
34 198 950
2 107 39 764 549 314 472 41 250 1 344 634 117 162 4 892 542 41 340
2 107 39 764 549 314 472 41 250 971 816 99 320 5 360 41 340 35 625 372 818 17 842 4 887 182 2 436 338 91 562 5 443 872 35 700 369 173 862 144 830
837 502 000
743 684 768
93 817 232
173 819 813
108 626 359
65 193 454
159 010 686
908 361 4 948 020 5 856 381 837 502 000 743 684 768 93 817 232 179 676 194 48 280 48 280 108 674 639
908 361 4 899 740 5 808 101 71 001 555
908 361 4 899 740 5 808 101 164 818 787
(a) In addition to the unbudgeted amounts due from Belarus and Ukraine shown under the heading "New and formerly inactive Members", these members also owe budgeted contributions, as indicated on the previous pages.
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Schedule 4 Working Capital Fund and Internal Borrowing as at 31 December 1999 (expressed in US dollars)
The Working Capital Fund was established by Member States, by appropriating funds from Regular Budget, to finance regular budget implementation pending the receipt of assessed contributions from Members. Additionally, in accordance with Financial Regulations 5.1 and 6.3, should the Working Capital Fund be depleted, the Director-General is authorized to resort to internal borrowing. Internal borrowing is a mechanism by which funds that are made freely available (i.e., not subject to legal constraint) may be used to finance regular budget implementation pending the receipt of assessed contributions. Amounts borrowed are repaid from Members’ assessed contributions as they become available, first priority being accorded to reimbursement of internal borrowing.
1996-1997 Working Capital Fund Working Capital Fund established level (WHA48.21) Balance at 1 January 1996 and at 1 January 1998 Repayments Transfer from casual income: (Resolution WHA48.21) Arrears of contributions collected and applied as reimbursement of regular budget income deficit: 1990-1991 1994-1995 1996-1997 Total - Repayments Withdrawals Financing of regular budget pending receipt of assessed contributions Refund of amounts standing to the credit of each Member or Associate Member (Resolution WHA 48.21) Total - Withdrawals Balance at 31 December 1997 and at 31 December 1999 (Statement I) a/ As at 31 December, the Working Capital Fund was fully drawn down and the following amounts remained outstanding: 1990-1991 1994-1995 1996-1997 1998-1999 31 000 000 2 274 816 24 093 113 4 632 071
1998-1999 Working Capital Fund 31 000 000 Internal Borrowing
Internal Borrowing
31 000 000 (178 147 793)
(92 946 123)
5 000 000
428 546 4 342 915 178 147 793
22 819 726 623 4 632 071 92 946 123 92 946 123
9 771 461
178 147 793
5 381 513
4 632 071
92 946 123
5 381 513
63 110 688
5 139 390 9 771 461 a/ 92 946 123 (92 946 123) 5 381 513 a/ 63 110 688 (63 110 688)
2 251 997 23 366 490 5 381 513 31 000 000
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Schedule 5 Casual Income Account as at 31 December 1999 (expressed in US dollars)
In accordance with Financial Regulation 7.1 the Casual Income Account is credited with miscellaneous income arising from a number of sources including the following: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) any unobligated regular budget funded appropriation balances remaining at the end of the financial period; any unliquidated obligations remaining from the prior financial period, including net savings arising on the settlement of unliquidated obligations of that prior financial period; any interest earnings or investment income on surplus liquidity in the regular budget; any refunds or rebates of expenditure received after the end of the financial period to which the original expenditure related; any proceeds of insurance claims that are not required to replace the insured item, or otherwise compensate for the loss; the net proceeds generated on the sale of a capital asset after allowing for all costs of acquisition, or improvement, of any asset concerned; net income from the operation of the underground garage/parking at HQ; any net gains or losses that may have arisen under operation of the exchange rate facility, or application of the official United Nations rates of exchange, or in revaluation for accounting purposes of the Organization’s assets and liabilities; any payments of arrears of contribution due from Member States that are not required to repay borrowings from the working capital fund or internal borrowing in accordance with regulation 6.3; proceeds of the sale of equipment and material; net revenues from the operations of the revolving sales fund; other sundry income.
(ix) (x) (xi) (xii)
The use of funds available in the Casual Income Account is determined by the Health Assembly, includes the following: (i) WHA41.12 provides for part financing of the regular budget to be apportioned among Members in accordance with the financial incentive scheme. The amount available for appropriation is restricted to the interest earnings on contributions. The Real Estate Fund is funded from the Casual Income Account (WHA23.14).
(ii)
(iii) Any remaining balance is appropriated by the Health Assembly and may include a credit against assessments.
A summary of the Casual Income Account for 1998-1999 is shown on the next page, followed by a detailed comparative statement for the years 1996-1999.
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Schedule 5 (continued)
Casual Income Account Summary (expressed in US dollars)
Balance at 1 January 1998 Of which appropriated under resolutions prior to 1 January 1998 Transfer for priority country programmes (resolution WHA48.32) Exchange rate facility - Transfer to the 1998-1999 regular budget (resolution WHA50.25) To help finance the 1998-1999 budget (resolution WHA50.25) Balance Income 1998-1999 Total funds available Of which appropriated under resolutions during 1998-1999 To help finance the 2000-2001 budget (resolution WHA52.20) Transfer to Real Estate Fund (resolution WHA52.15) Balance available at 31 December 1999 (Statement I.1) 23 320 914 (2 049 000) 280 700 16 256 760 10 000 000
30 148 404
26 537 460 3 610 944 42 486 483 46 097 427
21 271 914 24 825 513
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Schedule 5 (continued) Comparative Statement of Casual Income Received and Utilized in 1996, 1997, 1998 and 1999 (expressed in US dollars)
1996 Balance as at 1 January Income received Exchange rate savings: 1996-1997 regular budget (resolution WHA48.32) 1998-1999 regular budget (resolution WHA50.25) Collection of arrears of contributions Assessments on new Members Assessments on formerly inactive Members Interest earned Refunds and rebates Exchange differential Sale of equipment and material Savings on unliquidated obligations Revenue from Swiss postal authorities and sundry Revolving Sales Fund - Income from sale of WHO publications (net after deduction of costs of production, sales promotion and distribution) Sale of capital assets Underground parking operations: Rentals collected Less: Garage security costs Total - Income received Utilization of casual income available Financing of regular budget Appropriated for priority country programmes (resolution WHA48.32) Appropriated for the financing of the WHO worldwide management information system (resolution WHA50.24) Exchange rate facility: Transfer to the 1998-1999 regular budget (resolution WHA50.25) Transfer to Working Capital Fund (resolution WHA48.21) Transfer to/(from) Real Estate Fund (WHA52.15) Total utilized for the year Balance as at 31 December 15 000 000 29 467 019 5 000 000 10 000 000 377 847 (198 350) 24 764 757 4 896 034 a/ 72 012 66 240 2 814 400 332 601 (509 661) 138 764 10 647 168 396 029 5 731 673 19 702 262
1997 29 467 019
1998 30 148 404
1999 23 320 914
17 534 427 2 504 838 1 326 137 a/ 38 106 48 280 3 891 640 540 761 644 648 120 040 5 054 881 11 996 1 663 927 233 064 213 595 92 157 12 955 406 450 6 012 373 197 842 (1 136 750) 97 358 4 776 602 17 583 1 257 878 a/ 3 008 762 9 040 845 a/
449 852 214 035 321 862 30 148 385
825 632
51 636
317 870 20 064 817
307 135 22 421 666
12 617 000
16 256 760 10 000 000
23 320 914
6 145 000
635 547
(354 847)
10 705 000 29 467 000 30 148 404 26 892 307 23 320 914
(2 049 000) 20 917 067 24 825 513
a/ 1988-1989 and prior years 1992-1993 1996-1997
369 196 4 526 838 4 896 034
341 886 984 251 1 326 137
258 545 999 333 1 257 878
10 400 339 907 8 690 538 9 040 845
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Schedule 6 Voluntary Fund for Health Promotion Summary of 1998-1999 Income and Expenditure by Special Account as at 31 December 1999 (expressed in US dollars) The operation of this fund is governed by World Health Assembly Resolution WHA29.31. Interest, Source and application of funds Balance 1 Jan-98 Contributions 1998-1999 adjustments and refunds 1998-1999 Special Account for Medical Research Special Account for Medical Research (Unspecified) Special Account for Medical Research (Specified) - Human Reproduction Special Account for Medical Research (Specified) - other Total - Special Account for Medical Research Special Account for Community Water Supply Special Account for Malaria Special Account for the Leprosy Programme Special Account for the Yaws Programme Special Account for Diarrhoeal Diseases and Acute Respiratory Infections Special Account for Disasters and Natural Catastrophes Special Account for the Global Programme for Vaccines and Immunization Special Account for Assistance to the Least Developed among Developing Countries Special Account for the Mental Health Programme Special Account for Reproductive Health Technical Support Special Account for Tuberculosis Special Account for Miscellaneous Designated Contributions Special Account for Miscellaneous Designated Contributions (Prevention of Blindness) Special Account for Miscellaneous Designated Contributions (Special Assistance to Cambodia, The Lao People’s Democratic Republic and Viet Nam) Special Account for Miscellaneous Designated Contributions (other) Total - Special Account for Miscellaneous Designated Contributions General Account for Undesignated Contributions Grand Total - Voluntary Fund for Health Promotion 97 885 186 542 556 28 890 630 894 819 9 530 19 884 476 487 868 902 74 362 449 562 231 351 136 305 275 090 500 95 504 601 283 996 382 7 070 806 221 810 420 19 738 790 241 549 210 145 022 579 94 537 070 281 726 014 7 002 616 220 054 843 19 643 512 239 698 355 143 567 345 305 (305) 967 226 2 270 368 68 495 1 755 577 95 278 1 850 855 1 455 234 3 699 152 7 506 324 9 237 882 16 561 971 377 646 1 036 614 6 128 837 17 633 129 581 754 3 340 013 6 710 591 20 973 142 6 604 089 4 131 767 2 298 848 5 755 741 210 422 4 197 692 337 493 4 535 185 3 729 826 406 749 569 35 600 159 971 1 130 441 788 23 192 475 184 563 136 5 541 686 131 601 750 31 426 379 163 028 129 50 269 168 30 154 376 35 013 804 1 847 345 35 378 579 7 104 774 42 483 353 24 532 172 11 232 705 18 087 526 765 103 20 301 554 2 017 123 22 318 677 7 766 657 1 407 033 564 199 7 561 222 2 892 554 24 433 32 448 324 753 562 23 337 095 21 109 937 911 800 (1 480) 1 101 337 1 002 500 (24 433) 24 553 881 590 460 7 304 773 18 367 668 3 275 902 237 510 2 875 004 3 426 736 27 829 783 827 970 10 179 777 21 794 404 6 937 374 488 311 21 819 877 3 210 587 956 168 885 850 95 729 656 434 90 351 746 785 1 190 962 387 833 31 559 266 810 491 23 897 447 3 185 551 27 082 998 5 674 592 63 032 3 208 5 580 71 820 Disbursements 1998-1999 Unliquidated obligations 31 Dec-99 Total obligations 1998-1999 Unobligated Balance 31 Dec-99
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Schedule 7 Special Account for Servicing Costs as at 31 December 1999 (expressed in US dollars)
In accordance with Financial Regulation 6.5 and as subsequently noted in resolution EB37.R26, this account was established in order to facilitate the budgeting and accounting of funds made available to the Organization to cover in part the costs of servicing activities financed from sources other than the regular budget, UNDP and UNFPA (i.e., from all other extrabudgetary resources). The account is credited with income from the following sources: (i) (ii) (iii) Under resolution WHA25.3, amounts received from UNDP in reimbursement for support costs are credited to the account and are used towards financing the regular budget; a/ Similarly, credits received from the United Nations Population Fund and other organizations and bodies of the United Nations system to cover support costs are passed to the account; Funds received for support costs from other extrabudgetary sources, including funds-in-trust arrangements with governments and other entities, and the Voluntary Fund for Health Promotion; Rental income in respect of office accommodation at headquarters utilized by staff financed from extrabudgetary funds is accounted for within the Special Account for Servicing Costs. Against this income are charged the maintenance costs of the office accommodation concerned; In accordance with resolution WHA22.8, the costs of promotion of the sales of WHO publications and of staff exclusively engaged in sales are financed by the Revolving Sales Fund through the Special Account for Servicing Costs; Also credited are interest earnings on the balances of funds in the Special Account.
(iv)
(v)
(vi)
a/
Income received in this account is reduced by the support costs credited by the Organization to subcontracting agencies, to trust funds and to sub-accounts in the Voluntary Fund for Health Promotion, for contributions to jointly financed activities executed under these sources of funds.
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Schedule 7 (continued)
1996-1997 Balance at 1 January 1996 and at 1 January 1998 Expenditure Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and interregional activities Cost and promotion of sales of WHO publications Total expenditure 71 493 063
1998-1999 89 446 873
3 468 107 170 676 2 760 602 1 731 295 1 194 301 1 834 671 30 176 462 5 678 391 47 014 505 24 478 558
8 294 221 3 180 470 3 027 116 1 926 490 779 753 2 892 215 35 152 825 4 450 561 59 703 651 29 743 222
Transfer to regular budget income in accordance with: Resolution WHA50.25 for 1998-1999 and Resolution WHA52.20 for 2000-2001 (2 900 000) (1 700 000) a/
Income Received from United Nations Development Programme Received from United Nations Population Fund Support costs of subcontracting agencies Support costs of trust and voluntary funds Received for programme support costs from: Trust funds and other arrangements Voluntary Fund for Health Promotion Received for rental of office accommodation at headquarters from: Trust funds and other arrangements Voluntary Fund for Health Promotion Transfer from Revolving Sales Fund Interest Total income Balance as at 31 December 1997 and 31 December 1999
2 543 757 1 012 191 165 505 (596 490) 13 723 483 35 027 756 1 925 404 989 949 6 050 000 7 026 760 67 868 315 89 446 873
1 748 192 714 463 (96 177) (188 637) 11 743 029 46 327 601 1 546 871 840 343 5 926 379 8 151 980 76 714 044 104 757 266
Allocated for technical and non-technical support activities in 1998-1999 and in 2000-2001
89 446 873
104 757 266
a/
Transfer of $ 1 700 000 for the 2000-2001 regular budget through the Holding Account (see Statement I, Annex 1).
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Schedule 8 Real Estate Fund as at 31 December 1999 (expressed in US dollars)
This fund was established by the Twenty-third World Health Assembly in resolution WHA23.l4. Under resolution WHA23.14 the costs of the real estate activities are funded by appropriations from casual income by the Health Assembly. The Real Estate Fund is also credited with receipts of rentals relating to real estate operations (other than rental for office accommodation, garage rentals and income from the operation of concessions at headquarters), and interest earned on balances in the Fund. The Fund is used to meet the costs of the construction of buildings or extensions to existing buildings; the acquisition of land which may be required; major repairs and alterations to the Organization’s existing office buildings; and maintenance and repairs and alterations to houses leased to staff by the Organization.
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Schedule 8 (continued)
Balance at 1 January 1998 Income Transfer to casual income - resolution WHA52.15 Rents collected Interest (2 049 000) 177 662 1 045 370 a/
13 184 075
(825 968) 12 358 107
Expenditure Headquarters: Renovation of the sub-basement at headquarters - resolution WHA48.22 Local Area Network (LAN) - resolution WHA48.22 Regional Office for Africa: Maintenance operations, staff housing - resolution WHA23.14, para. 3(i) Replacement of the air-conditioning system for the computer room and print shop in the Regional Office - resolution WHA48.22 Regional Office for the Americas: Replacement of the waterproofing of the windows and machine-house roof at the Regional Office - resolution WHA52.15 Regional Office for South-East Asia: Addition of one floor at the Regional Office - resolution WHA45.9. Renovation and restructuring of the internal structure of the Regional Office - resolution WHA48.22. Regional Office for Europe: Replacement of the local area network cabling infrastructure - resolution WHA23.14, paragraph 3(ii) Regional Office for the Eastern Mediterranean: Construction of a new Regional Office in Cairo - resolution WHA50.11 Balance at 31 December 1999 (23 687) 605 357 24 926 5 470
50 000 (4 652) 268 079
78 000 9 622 936 10 626 429 1 731 678
Of which:
Earmarked for construction, maintenance and repair costs authorized but not yet obligated Balance available for future authorizations
130 000 1 601 678
a/
Representing the amounts approved for six projects for the Regional Office for Africa by resolution WHA50.10 for a total of $ 1 654 000, for one project for the Regional Office for the Americas by resolution WHA47.25 for $ 250 000 and for one project for the Regional Office for South-East Asia for $ 145 000 by resolution WHA45.9.
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Schedule 9 Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training as at 31 December 1999 (expressed in US dollars)
This fund was established by the Nineteenth World Health Assembly (in resolution WHA19.7) for financing the purchase of teaching and laboratory equipment for education and training in medicine and the allied health sciences, at the request of Members and against advance deposits in national currencies required to cover the full estimated costs in the currencies of purchase.
Balance at 1 January 1998 Local currencies received (US dollar equivalent): Refunds for completed requests 39 946 114 958
400 000
Number of requests Bangladesh Egypt Libyan Arab Jamahiriya Malawi Myanmar Seychelles Sudan 2 13 3 1 1 1
Amount 78 478 498 546 111 172 294 32 583 13 689
Net receipts 38 532 383 588 111 172 294
36 807
(4 224) 13 689
20 528 734 762 212 239
(20 528) 522 523 522 523 400 000
Less: Transfers to the credit of Members’ trust funds for purchases Balance at 31 December 1999
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Schedule 10 Terminal Payments Account as at 31 December 1999 (expressed in US dollars)
This account was established in accordance with Financial Regulation 6.5, to provide for financing the terminal emoluments of staff members, including repatriation grant, accrued annual leave, repatriation travel, removal on repatriation, and other separation payments. It is funded by a budgetary provision set for the biennium 1998-1999 at 5% of staff net salaries and professional staff post adjustment. It applies to all staff, including those assigned to the Joint United Nations Programme on HIV/AIDS (UNAIDS) and the International Agency for Research on Cancer (IARC); it excludes however, those staff funded from UNDP and staff appointed under the Associate Professional Officers programme. In this way, it is ensured that each source of funds which participates under the scheme bears its appropriate share of the terminal emoluments paid to separating staff members. Interest earned on investments is also credited to the account. The account does not reflect the Organization’s full long-term liability for the terminal emoluments of staff members, of which on an ongoing basis the present value at 31 December 1999 is estimated at $ 79 million.
Balance at 1 January 1998 Income Provision for terminal payments Interest 18 388 465 4 634 632
39 504 061
23 023 097 62 527 158
Expenditure Repatriation grant Accrued annual leave Repatriation travel Removal on repatriation End-of-service grant Abolition of post and reduction-in-force indemnity Separation by mutual agreement Termination payment for reasons of health Balance at 31 December 1999 6 090 047 4 704 911 911 309 1 304 331 40 689 406 083 1 415 132 17 355 14 889 857 a/ 47 637 301
a/
Contingent Liability A Contingent liability of US $ 16,518,477 exists for mutually agreed separation agreements (MAS) signed by staff members by 31 December 1999, who will leave during 2000.
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Schedule 11 Supply Services Funds (Trust Funds) as at 31 December 1999 (expressed in US dollars)
These include funds deposited with the Organization, usually in local currencies, by governments and institutions for the purchase on their behalf of medical supplies, equipment and literature. Local currencies are accepted to the extent that they can be utilized by the Organization in its day-to-day operations and activities within a reasonable time. Funds are also received from, and supplies made available to, other organizations of the United Nations system for use in the health aspects of emergency operations and activities.
Details A. Countries Angola Bangladesh Belgium Benin Bhutan Bosnia and Herzegovina Brazil Burkina Faso Canada Central African Republic Chad Comoros Congo Democratic Republic of the Congo Egypt Finland Germany Ghana India Iran (Islamic Republic of) Italy Jamaica Libyan Arab Jamahiriya Luxembourg Madagascar Malawi Maldives Mauritania Myanmar
Balance 1 Jan 1998 2 295 983 2 759 21 824 73 206 31 142 10 896 1 608 18 214 6 359 52 805 40 289 7 537 3 719 146 494 837 594 52 2 628 32 548
Receipts 1998-1999
Expenditure 1998-1999 2 295 8 847 36 427 9 846
Balance 31 Dec 1999
10 787 50 224 9 846 (73 206)
2 923 2 759 35 621
24 026 57 985
18 484 18 214 57 985
31 142 10 896 7 150
92 105 1 518 036
1 408 290 (332) 146 1 208 341 5 133 (4 411) 967 280 231 88 097 125 88 990 13 379 40 693
6 359 52 805 92 105 150 035 7 869 3 719 429 810 (201) 4 463 1 661 17 402 71 903 21 049 2 790 8 011
1 143 314 4 338
9 172 2 462
265 085 160 000 125 110 039 6 997 48 704 (2 462)
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Schedule 11 (continued)
Details A. Countries (continued) Nepal Netherlands Niger Nigeria Oman Pakistan Papua New Guinea Philippines Portugal Qatar Republic of Korea Samoa Saudi Arabia Seychelles Sierra Leone Slovakia Solomon Islands South Africa Spain Sri Lanka Sudan Swaziland Sweden Switzerland Syrian Arab Republic Togo Tunisia Uganda United Republic of Tanzania United States of America Yemen Total - Countries B. Other sources South Pacific Commission Palestinian National Authority Total - Other sources C. United Nations sources United Nations United Nations Development Programme United Nations Educational, Scientific and Cultural Organization United Nations Population Fund World Bank Total - United Nations sources GRAND TOTAL
Balance 1 Jan 1998 2 676 10 135 25 744 11 848 188 586 385 1 192 019 545 1 340 12 551 212 6 231
Receipts 1998-1999 152 297 50 343
Expenditure 1998-1999 136 59 25 2 59 670 840 024 744 878 776 435
Balance 31 Dec 1999 18 133 1 454 8 970 (3 605) 151 790 386 080 545 524 24 405 212 6 699 44 000 5 126 5 887 181 45 709 11 357 72 031 658 23 677 6 166 30 488 42 451 2 406 338 2 249 549
56 171 633 639 (385) 1 366 709 (816) 59 540 (5) 22 570 44 000 164 12 8 298 128 274 897 776 172 306
2 172 648
47 686 (473) 22 570
5 126 55 893 875 45 030 38 052 28 72 031 259 11 063 3 032 6 166 13 461 42 685 2 481 789 3 043 839
214 12 9 297 155
280 897 470 493 001 28
399 28 045
15 431 3 032 67 870 83 116 1 491 204 8 828 697
84 897 82 882 1 415 753 8 034 407
486 540 1 162 338 1 648 878
410 478 762 570 1 173 048
76 062 399 768 475 830
(1 713 136)
37 464 612 1 218 202
35 414 574 1 218 202
336 902
46 000 749 935 28 808 (888 393) 2 155 446
2 200 000 870 227 41 753 041 51 436 326
2 634 897 803 276 40 070 949 50 072 694
46 000 315 038 95 759 793 699 3 519 078
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Schedule 12 Special Account for the WHO Renewal Fund as at 31 December 1999 (expressed in US dollars)
The Special Account for the WHO Renewal Fund was established by the Director-General in accordance with Financial Regulation 6.5 to finance for a period of three years from 1998 the specific initiatives for change developed in WHO which are aimed toward a more unified, effective and responsive Organization.
Balance at 1 January 1998 Income Contributions (extrabudgetary): Australia Austria Belgium Canada China Croatia Denmark Finland Iceland Ireland Japan Netherlands Norway Sweden Switzerland
-
United Kingdom of Great Britain and Northern Ireland Total contributions Interest
97 920 30 439 337 425 329 299 30 000 5 000 794 887 197 083 26 748 131 930 880 000 881 358 1 021 771 242 424 253 068 800 000 6 059 352 137 960 6 197 312
Expenditure Efficiency studies Global communications network Global programme on evidence for health policy Global staff management council Information technology project Management support development Meeting of WHO Country Representatives Partnerships for health sector development Planning and management for temporary staff Retreats of Executive Board and Cabinet Staff training Working group on policies and strategies to support WHO in health research Balance at 31 December 1999 162 339 1 856 329 206 341 50 607 344 238 67 572 647 887 504 916 12 864 251 404 133 526 49 841 4 287 864 1 909 448
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Financial Implementation of WHO’s Programme for 1998-1999
This part of the Financial Report shows the utilization of funds placed at the disposal of the Organization from all sources during the period. Information is provided on the financial implementation of the programme and where appropriate includes comparisons with the previous biennium and with the approved programme budget for 1998-1999.
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Table I International Health Programme Expenditure by Sources of Funds (expressed in thousands of US dollars)
This table indicates the level of expenditure (including programme support costs) incurred by sources of funds, both in absolute terms and in percentages of total expenditure, for 1998-1999 and the previous period 1996-1997. 1996-1997 % Expenditure by sources of funds Regular budget Other sources: Voluntary Fund for Health Promotion Special Account for the WHO Renewal Fund Trust Fund for the Global Programme on AIDS Trust Fund for the Special Programme for Research and Training in Tropical Diseases African Programme for Onchocerciasis Control Onchocerciasis Control Programme Sasakawa Health Trust Fund United Nations sources: United Nations Afghanistan Emergency Trust Fund United Nations Children’s Fund United Nations Development Programme United Nations Environment Programme United Nations High Commissioner for Refugees United Nations International Drug Control Programme United Nations Population Fund United Nations Trust Fund for Assistance to Lebanon United Nations sundry trust and voluntary funds Standard letters of agreement with governments as executing agency Standard letters of agreement between executing agencies Supply services trust funds Associate professional officers Other trust and reimbursable funds Special Account for Servicing Costs Revolving Sales Fund Programmes financed by appropriation from casual income Total - Other sources TOTAL - Expenditure by sources of funds Less: Eliminations (see Statement I, Annex 2) Transfers between technical cooperation programmes Programme support costs TOTAL - International Health Programme (15 190) (54 792) 1 470 601 (16 307) (48 971) 1 663 069 790 937 51.3 812 096 1998-1999 % 47.0
444 229 16 344 56 366 4 883 42 905 11 632 694 2 229 26 085 798 6 481 27 208 20 165 535 1 883 8 953 10 207 35 181 47 015 1 904 9 923 749 646 1 540 583
28.8 1.1 3.7 0.3 2.8 0.8
562 231 4 288 5 350 61 792 18 620 32 232 10 676 66 1 371 21 390 508 726 21 040 11 44 692 1 036 40 071 8 839 52 186 59 704 1 004 12 374 916 251 1 728 347
32.6 0.2 0.3 3.6 1.1 1.9 0.6
0.1 1.7 0.1
0.1 1.2
1.8
1.2
0.1 0.6 0.7 2.3 3.1 0.1 0.6 48.7 100.0
0.1 2.3 0.5 3.0 3.5 0.1 0.7 53.0 100.0
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Table II Effective Working Regular Budget, Sources of Financing and Financial Outcome (expressed in thousands of US dollars)
This table is divided into two parts: Part A, which indicates the total approved regular budget for the period under review and for the previous period, with the planned sources of financing; and Part B, which indicates the financial outcome of the budget and the resulting income deficit or surplus for each period. 1996-1997 A. APPROVED BUDGET AND ITS FINANCING Total approved budget To be financed as follows: Assessed contributions from Members for the effective working budget Reimbursement of programme support costs Casual income appropriated Total financing of budget B. FINANCIAL OUTCOME OF THE BUDGET Total approved budget Exchange rate facility - net transfers from/(to) Casual Income Account (resolution WHA50.25) Effective working budget Less: Total obligations incurred Unobligated balance of effective working budget (balance of appropriations) - becoming cash for credit to Casual Income Account when the outstanding underlying contributions are received INCOME DEFICIT Assessed contributions collected for the effective working budget Other income (reimbursement of programme support costs and casual income appropriated) Exchange rate facility - net transfers to Casual Income Account (resolution WHA50.25) Total budgetary income Total obligations incurred Income deficit a/ 702 078 733 320 842 654 842 654 842 654 842 654 1998-1999
828 107 3 600 10 947 842 654
827 137 2 900 12 617 842 654
(23 266) 819 388 790 937
(5 233) 837 421 812 096
28 451
25 325
14 547
15 517
(23 266) 693 359 (790 937) (97 578)
(5 233) 743 604 (812 096) (68 492) a/
Income deficit covered by a withdrawal of the available balance in the Working Capital Fund ($ 5 381 513), the remainder of $ 63 110 688 being secured by internal borrowing against other WHO funds pending receipt of outstanding contributions (Financial Regulation 5.1).
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Table III Financial Implementation by Appropriation Section, Programme and Sources of Funds for 1998-1999 (expressed in US dollars)
This table provides a detailed analysis of financial implementation during the biennium by appropriation section, programme and sources of funds.
Regular Budget Appropriation Section/Programme Approved Budget (1) Obligations Voluntary Fund for Health Promotion United Nations sources Other funds
Total
1 Governing bodies 1 Governing bodies 1.1 World Health Assembly 1.2 Executive Board 1.3 Regional Committees
8 910 436 5 570 998 3 793 622 18 275 056
15 743 251 404 886 049 1 153 196 1 153 196
8 926 179 5 822 402 4 679 671 19 428 252 19 428 252
Total - Section 1 2 Health policy and management 1 General Programme Development and Management 1.1 Executive management 1.2 Managerial process for WHO’s programme development: WHO response to Global change: Deputy RDs and Directors of Programme Management at Regional Offices: Staff development 1.3 Management and support to information systems 1.5 Coordination with other organizations: Mobilization of external health resources
19 145 000
18 275 056
16 936 281
51 176
1 700 225
18 687 682
16 312 435 14 778 339 12 339 183 60 366 238
209 413
378 874 9 458 788 1 211 1 211 575 787 575 787 2 444 017 13 981 904 1 533 222 684 186 2 217 408
16 900 722 24 237 127 16 307 206 76 132 737 13 354 033 16 277 668 29 631 701
1 522 795 1 783 384 3 267 121 8 040 186 11 307 307
2 Health, Science and Public Policy 2.1 Health in socioeconomic development 2.2 Research policy and strategy coordination
7 977 903 7 553 296 15 531 199
3 National Health Policies and Programmes Development and Management 3.1 Technical cooperation with countries 3.2 Collaboration with countries and peoples in greatest need 3.3 Procurement services (excluding drugs, biologicals and contraceptives) 3.4 Emergency and humanitarian action; relief and rehabilitation operation and emergency preparedness programme
88 617 686 6 256 402 7 390 682
6 646 817 4 759 530 361 042
2 845 421 516 960 912 458
98 109 924 11 893 934 8 303 140
7 674 834 109 939 604
42 524 342 53 930 689
3 715 633 4 076 675
49 721 214 53 996 053
103 636 023 221 943 021
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Table III (continued)
Regular Budget Appropriation Section/Programme Approved Budget (1) Obligations Voluntary Fund for Health Promotion United Nations sources Other funds
Total
4 Biomedical and Health Information and Trends 4.1 Epidemiology, statistics, trend assessment and country health information 4.2 Publishing, language and library services
25 497 468 38 464 611 63 962 079
2 713 436 2 713 436 69 734 816 4 653 673
988 172 6 409 768 7 397 940 77 593 305
29 199 076 44 874 379 74 073 455 401 780 914
Total - Section 2 3 Health services development 1 Organization and management of health systems based on primary health care 1.1 Health systems research and development 1.2 National health systems and policies 1.3 District health systems
255 839 981 249 799 120
4 177 924 35 282 540 34 514 579 73 975 043
862 975 2 509 162 1 865 558 5 237 695 9 512 292 9 512 292 18 650 018 18 650 018 1 498 264 1 976 994 27 317 3 502 575 36 902 580
2 093 907 6 447 457 8 541 364 197 347 197 347 9 464 9 464
532 860 769 426 218 776 1 521 062 3 113 031 232 160 3 345 191 261 858 1 238 588 1 500 446 1 217 132 332 125 1 549 257
5 573 759 40 655 035 43 046 370 89 275 164 62 031 113 2 705 259 64 736 372 30 333 586 2 288 237 32 621 823 14 411 233 7 901 059 3 985 313 26 297 605 212 930 964
2 Human Resources For Health 2.1 Human resources for health 2.2 Fellowships
49 208 443 2 473 099 51 681 542
3 Essential Drugs 3.1 Action programme on essential drugs 3.2 Procurement of drugs, biologicals and contraceptives
11 412 246 1 049 649 12 461 895
4 Quality of Care and Health Technology 4.1 Technology for health care 4.2 Drugs and biologicals, quality, safety and efficacy 4.3 Traditional medicine
11 695 837 5 591 940 3 957 996 21 245 773
Total - Section 3 4 Promotion and protection of health 1 Reproductive, Family and Community Health and Population issues 1.1 Reproductive health 1.2 Child health 1.3 Adolescent health 1.4 Women’s health 1.5 Ageing and health 1.6 Special programme of research, development and research training in human reproduction 1.7 Occupational health
162 607 441 159 364 253
8 748 175
7 915 956
17 065 148 1 110 664 1 942 458 1 850 775 2 416 550 1 250 112 2 741 987 28 377 694
8 360 977 137 850 1 147 015 3 411 679 663 091 26 713 187 351 855 40 785 654
13 332 054 38 417 436 148 194 699
5 095 923 794 883 666 816 386 773 144 693 382 741 20 709 7 492 538
43 854 102 2 081 814 4 192 437 5 843 926 3 224 334 34 346 040 3 114 551 96 657 204
6 000 000 20 001 318
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Table III (continued)
Regular Budget Appropriation Section/Programme Approved Budget (1) Obligations Voluntary Fund for Health Promotion United Nations sources Other funds
Total
2 Healthy Behaviour and Mental Health 2.1 Mental health 2.2 Substance abuse including alcohol and tobacco 2.3 Health promotion 2.4 Communications and public relations 2.5 Rehabilitation
7 996 759 6 220 101 12 561 547 8 773 182 2 261 367 37 812 956
5 385 062 7 781 849 4 961 046 354 181 1 351 571 19 833 709 3 147 560 1 316 754
1 030 221 22 816
994 590 1 223 119 745 488 554 759 257 362 3 775 318 1 670 732 195 830 507 192 2 373 754 923 558 292 492 329 759 644 871 240 831 2 431 511 16 073 121
14 376 411 16 255 290 18 290 897 9 682 122 3 870 300 62 475 020 15 231 680 6 478 451 507 192 22 217 323 29 196 502 8 895 825 16 167 380 13 040 447 5 515 469 72 815 623 254 165 170
1 053 037 186 491 71 811
3 Nutrition, Food Security and Safety 3.1 Nutrition 3.2 Food safety 3.3 Food aid
10 226 897 4 894 056
15 120 953 4 Environmental Health 4.1 Water supply and sanitation in human settlements 4.2 Environmental health in urban development 4.3 Assessment of environmental health hazards 4.4 Promotion of chemical safety 4.5 Incorporation of health concerns into environmental management 24 530 823 5 971 112 7 872 169 3 620 692 2 922 438 44 917 234 Total - Section 4 5 Integrated control of disease 1 Eradication/elimination of specific communicable diseases 1.1 Global eradication or elimination 1.2 Regional eradication and elimination 129 615 516 126 228 837
4 464 314 1 269 374 2 266 210 7 544 717 8 774 884 1 778 744 21 633 929 86 717 606
258 302 2 472 747 366 011 420 735
573 456 3 832 949 25 145 606
11 684 411 138 628 592 675 559 12 359 970 138 628 592
278 135
11 168 016
161 759 154 675 559 162 434 713 81 346 710 33 174 862 34 408 471
278 135 1 551 980
11 168 016 2 100 717 1 132 754 2 046 777
2 Control of Other Communicable Diseases 2.1 Vaccine-preventable diseases 2.2 Diarrhoeal and acute respiratory disease control 2.3 Tuberculosis 2.4 Emerging diseases including cholera and other epidemic diarrhoeas, zoonoses and antimicrobial resistance 2.5 Other communicable diseases 2.6 Control of tropical diseases 2.7 Special programme for research and training in tropical diseases 2.8 Prevention of blindness and deafness
16 935 323 7 318 592 11 328 877
60 758 690 24 723 516 21 032 817
10 963 734 10 315 163 33 244 965 7 627 472 29 905 889 101 357 459 2 395 581 2 041 257 310 465 2 181 929
8 491 4 060 014 437 831 1 500 000
1 396 643 19 656 523 61 846 558 61 899 964 3 707
22 684 031 64 588 974 193 547 737 66 106 010 4 226 893 500 083 688
114 134 218 228 307 511
7 558 316 150 083 643
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Table III (continued)
Regular Budget Appropriation Section/Programme Approved Budget (1) Obligations Voluntary Fund for Health Promotion United Nations sources Other funds
Total
3 Control of Noncommunicable Diseases 3.1 Control of noncommunicable diseases
17 316 505 17 316 505
1 937 855 1 937 855 368 873 958 7 836 451
951 912 951 912 162 203 571
20 206 272 20 206 272 682 724 673
Total - Section 5 6 Administrative services 1 Personnel 1.1 Personnel Services and Administration
145 384 462
143 810 693
16 233 037 16 233 037
9 182 125 9 182 125 2 391 2 391 20 946 888 20 946 888 12 066 982 12 066 982 2 391 501 005 42 195 995
25 415 162 25 415 162 95 507 475 95 507 475 35 893 859 35 893 859 156 816 496 501 005
2 General Administration 2.1 Administrative support to technical programmes
74 558 196 74 558 196
3 Budget and Finance 3.1 Budget and Finance
23 826 877 23 826 877
Total - Section 6 Programme Support Costs, UNDP and UNFPA Total Details of United Nations sources
124 828 700
114 618 110
837 421 100
812 096 069
562 231 351
46 884 910
307 135 144
1 728 347 474
United Nations Development Programme - UN System Support for Policy and Programme Development United Nations Development Programme - global, interregional and special activities Standard letters of agreement with a government as executing agency Standard letters of agreement between executing agencies United Nations Development Programme - Indicative Planning Figures United Nations Development Programme - Special Programme Resources United Nations Development Programme - Technical Support Services for UN Specialized Agencies United Nations Environment Programme United Nations International Drug Control Programme United Nations Population Fund United Nations Population Fund - Programme support costs United Nations Trust Fund for Assistance to Lebanon United Nations Afghanistan Emergency Trust Fund United Nations Sundry Trust and Voluntary Funds United Nations Children’s Fund Total - United Nations sources
330 774 4 699 217 692 380 1 036 261 16 089 658 231 865 38 316 508 373 726 154 20 539 083 501 005 10 509 66 390 44 274 1 370 651 46 884 910
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Table III (continued)
Regular Budget Appropriation Section/Programme Approved Budget (1) Obligations Voluntary Fund for Health Promotion United Nations sources Other funds
Total
Details of other funds African Programme for Onchocerciasis Control Special Account for Servicing Costs Trust Fund for the Special Programme for Research and Training in Tropical Diseases Associate Professional Officers Revolving Fund for teaching and laboratory equipment for medical education and training Trust Funds - Supplies Trust Funds Trust Fund for the Global Programme on AIDs Programmes Financed by Appropriations from Casual Income Onchocerciasis Control Programme Special Account for the WHO Renewal Fund Revolving Sales Fund Sasakawa Health Trust Fund Total - Other funds Less: Eliminations (see Statement I, Annex 2) Transfers between Technical Cooperation Programmes Income from Programme Support Costs Total - International Health Programme (16 307 131) (48 970 814) 1 663 069 529 18 619 715 59 703 651 61 792 095 8 838 657 595 762 50 072 694 41 588 761 5 349 628 12 374 449 32 232 148 4 287 864 1 003 904 10 675 816 307 135 144
(1) Approved Regular Programme Budget 1998-1999
The appropriations indicated under the column "Approved Budget" include the levels approved by the Health Assembly (total $ 842 654 000) in resolution WHA50.25, and take into account transfers made between sections by the Director-General in accordance with the authority vested in her in terms of the appropriation resolution and also transfers made from the Director-General’s and Regional Directors’ Development Programme. In addition, appropriation levels include the net transfers of $ 5 232 900 made to the Casual Income Account to record the effects of favourable exchange rate fluctuations during 1998-1999, in terms of the exchange rate facility approved under resolution WHA50.25. Effective appropriations for the biennium , i.e. the effective working budget, thus totalled $ 837 421 100 (see statement IV).
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Table IV Operation of the Exchange Rate Facility: Transfers from and Transfers to Casual Income Resulting from the Effects of Currency Exchange Rate Fluctuations in 1998-1999 (expressed in US dollars)
As authorized in resolution WHA50.25 and in accordance with WHO Financial Regulation 4.6 the table below provides, by organizational level, appropriation section and programme, the breakdown of (a) the transfers from casual income in respect of additional costs, (b) the transfers to casual income in respect of savings (figures in brackets) and (c) the resultant net charge against casual income in 1998-1999 resulting from differences between the WHO budgetary rates of exchange and the United Nations/WHO accounting rates of exchange with respect to the relationship between the US dollar and the Swiss franc, CFA franc, the Indian rupee, the Danish krone, the Egyptian pound and the Philippine peso prevailing during the financial period 1998-1999.
Organizational Level Currency Budgetary rate of exchange Average accounting rate for 1998-1999 I. SUMMARY BY APPROPRIATION SECTION (a) Transfers from casual income (additional costs) (resolution WHA 50.25 para 1.E) 1. Governing bodies 2. Health policy and management 3. Health services development 4. Promotion and protection of health 5. Integrated control of disease 6. Administrative services Total – Transfers from casual income (b) Transfers to casual income (savings) (resolution WHA 50.25 para 1.E) 1. Governing bodies 2. Health policy and management 3. Health services development 4. Promotion and protection of health 5. Integrated control of disease 6. Administrative services Total – Transfers to casual income (c) Net savings credited to casual income
Global and interregional Swiss franc 1.480 1.477
Africa CFA franc 568 603
South-East Asia Indian rupee 35.50 41.48
Europe Danish krone 6.44 6.86
Eastern Mediterranean Egyptian pound 3.37 3.40
Western Pacific Philippine peso 26.20 39.92
Total
9 300 74 000 22 700 30 000 26 900 117 800 280 700
9 300 74 000 22 700 30 000 26 900 117 800 280 700
(158 100) (42 800) (31 900) (25 000) (652 900) (910 700) 280 700 (910 700)
(149 700) (32 400) (35 400) (17 400) (378 500) (613 400) (613 400)
(288 100) (79 200) (79 200) (21 600) (508 000) (976 100) (976 100)
(16 100) (4 600) (1 700) (1 200) (25 800) (49 400) (49 400)
(936 400) (311 600) (132 600) (107 900) (1 475 500) (2 964 000) (2 964 000)
(1 548 400) (470 600) (280 800) (173 100) (3 040 700) (5 513 600) (5 232 900)
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Table IV (continued)
Organizational Level II. DETAILS BY MAJOR PROGRAMME 1. Governing bodies Governing bodies Total – Appropriation section 1. 2. Health Policy and Management General programme development and management Health, science and public policy National health policies and programmes development and management Biomedical and health information and trends Total – Appropriation section 2. 3. Health services development Organization and management of health systems based on primary health care Human resources for health Essential drugs Quality of care and health technology Total – Appropriation section 3. 4. Promotion and protection of health Reproductive, family and community health and population issues Healthy behaviour and mental health Nutrition, food security and safety Environmental health Total – Appropriation section 4. 5. Integrated control of disease Eradication/elimination of specific communicable diseases Control of other communicable diseases Control of noncommunicable diseases Total – Appropriation section 5. 6. Administrative services Personnel General administration Budget and finance Total – Appropriation section 6.
Global and interregional
Africa
South-East Asia
Europe
Eastern Mediterranean
Western Pacific
Total
9 300 9 300 -
9 300 9 300
24 800 2 800 20 000 26 400 74 000
(55 400) (4 600) (23 800) (74 300) (158 100)
(101 100) (10 200) (31 200) (7 200) (149 700)
(68 400) (14 400) (50 400) (154 900) (288 100)
(6 600) (600) (2 800) (6 100) (16 100)
(498 100) (17 800) (128 300) (292 200) (936 400)
(704 800) (44 800) (216 500) (508 300) (1 474 400)
4 900 4 800 3 000 10 000 22 700
(6 200) (32 200) (2 100) (2 300) (42 800)
(10 800) (14 400) (3 600) (3 600) (32 400)
(21 600) (36 000) (7 200) (14 400) (79 200)
(1 000) (3 200) (200) (200) (4 600)
(53 400) (258 200) (311 600)
(88 100) (339 200) (10 100) (10 500) (447 900)
6 800 6 800 4 700 11 700 30 000
(3 400) (16 500) (5 100) (6 900) (31 900)
(3 600) (18 000) (3 600) (10 200) (35 400)
(10 800) (21 600) (7 200) (39 600) (79 200)
(200) (600) (200) (700) (1 700)
(35 600) (43 600) (17 800) (35 600) (132 600)
(46 800) (93 500) (29 200) (81 300) (250 800)
2 400 21 500 3 000 26 900
(22 700) (2 300) (25 000)
(17 400) (17 400)
(14 400) (7 200) (21 600)
(1 000) (200) (1 200)
(18 100) (72 000) (17 800) (107 900)
(15 700) (106 000) (24 500) (146 200)
14 800 78 500 24 500 117 800
(51 100) (511 400) (90 400) (652 900)
(54 200) (234 500) (89 800) (378 500)
(57 600) (364 000) (86 400) (508 000)
(2 600) (17 600) (5 600) (25 800)
(107 600) (1 042 100) (325 800) (1 475 500)
(258 300) (2 091 100) (573 500) (2 922 900)
Net savings credited to casual income
280 700
(910 700)
(613 400)
(976 100)
(49 400)
(2 964 000)
(5 232 900)
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Table V Financial Implementation by Appropriation Section, Region and Sources of Funds for 1998-1999 (expressed in US dollars) This table provides a detailed analysis of financial implementation during the biennium by appropriation section, region and for all sources of funds, and is presented in a format similar to the summaries contained in the programme budget (WHO document PB/98-99, pages 228-230).
Appropriation Section
Regular Budget
Voluntary Fund for Health Promotion
United Nations sources
Other funds
Total
1. Governing bodies Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and Interregional Activities
1 763 100 327 000 252 800 767 999 213 000 533 600 14 417 557 18 275 056
652 194 161 855 72 000 267 147 1 153 196
1 763 100 327 000 252 800 1 420 193 374 855 605 600 14 684 704 19 428 252
2. Health policy and management Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and Interregional Activities 60 782 071 19 752 912 31 244 000 18 678 890 25 856 600 16 488 200 76 996 447 249 799 120 3. Health services development Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and Interregional Activities 32 256 641 21 779 735 23 946 100 5 955 500 32 073 900 20 656 400 22 695 977 159 364 253 4. Promotion and protection of health Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and Interregional Activities 20 421 266 16 505 753 15 703 900 8 920 796 11 990 800 14 411 600 38 274 722 126 228 837 1 169 557 336 472 597 066 13 743 155 1 463 490 614 402 68 793 464 86 717 606 2 641 573 1 716 099 126 118 3 042 022 3 192 464 2 109 771 12 317 559 25 145 606 666 896 991 141 2 742 817 1 083 957 525 909 492 908 9 569 493 16 073 121 24 899 292 19 549 465 19 169 901 26 789 930 17 172 663 17 628 681 128 955 238 254 165 170 2 265 694 2 994 390 1 467 514 3 898 222 535 340 2 503 730 23 237 690 36 902 580 1 979 145 5 804 274 168 892 567 869 205 783 22 212 8 748 175 1 335 505 563 662 80 361 525 810 2 186 067 253 124 2 971 427 7 915 956 37 836 985 25 337 787 31 298 249 10 548 424 35 363 176 23 619 037 48 927 306 212 930 964 2 106 225 1 256 163 3 895 702 18 789 426 1 278 286 8 120 564 34 288 450 69 734 816 2 850 019 82 147 344 308 110 474 285 651 981 074 4 653 673 2 004 167 1 575 658 3 056 511 820 252 7 888 385 361 744 61 886 588 77 593 305 67 742 482 22 666 880 38 196 213 38 632 876 35 133 745 25 256 159 174 152 559 401 780 914
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Table V (continued)
Appropriation Section
Regular Budget
Voluntary Fund for Health Promotion
United Nations sources
Other funds
Total
5. Integrated control of disease Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and Interregional Activities 21 873 722 17 136 200 21 749 500 4 001 800 12 335 400 18 971 000 47 743 071 143 810 693 6. Administrative services Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and Interregional Activities 16 955 100 5 456 898 3 483 400 9 918 199 5 755 800 4 446 000 68 602 713 114 618 110 TOTALS Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and Interregional Activities Programme Support Costs, UNDP and UNFPA 154 051 900 80 958 498 96 379 700 48 243 184 88 225 500 75 506 800 268 730 487 812 096 069 Less: Eliminations (see Statement I, Annex 2) Transfers between Technical Cooperation Programmes Income from Programme Support Costs (16 307 131) (48 970 814) 1 663 069 529 196 960 152 8 934 433 35 553 957 43 199 011 20 941 959 22 244 757 234 397 082 562 231 351 9 260 825 1 798 246 8 077 399 3 630 541 3 870 807 3 100 587 16 645 500 501 005 46 884 910 72 697 878 4 992 675 20 573 101 4 082 554 18 097 643 9 761 138 176 930 155 307 135 144 432 970 755 96 683 852 160 584 157 99 155 290 131 135 909 110 613 282 696 703 224 501 005 1 728 347 474 6 849 585 781 872 2 277 978 783 394 1 745 413 2 487 092 27 270 661 42 195 995 23 804 685 6 238 770 5 761 378 10 701 593 7 501 213 6 933 092 95 875 765 156 816 496 191 418 676 4 347 408 29 593 675 6 768 208 17 664 843 11 006 061 108 075 087 368 873 958 1 790 088 2 147 007 75 319 499 382 3 324 655 7 836 451 61 841 725 1 080 342 12 415 434 216 947 5 590 014 6 094 270 74 964 839 162 203 571 276 924 211 22 563 950 65 905 616 11 062 274 35 590 257 36 570 713 234 107 652 682 724 673
2 391 2 391
Total - International Health Programme
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Table VI Financial Implementation by Programme 1998-1999 Regular Budget – Regions and Global and Interregional Activities (expressed in US dollars)
Programme
Africa
The Americas
South-East Asia
Europe
1.1
Governing bodies 63 877 1 763 100 1 763 100 327 000 327 000 630 740 252 800 252 800 772 382 704 122 767 999 699 544
1.1.1 World Health Assembly 1.1.2 Executive Board 1.1.3 Regional Committees
2.1
General programme development and management 989 547
2.1.1 Executive management 2.1.2 Managerial process for WHO’s programme development; WHO response to global change; Deputy Regional Directors and Directors of programme management at regional offices; Staff development 2.1.3 Management and support to information systems 2.1.5 Coordination with other organizations; Mobilization of external health resources
2 457 697 1 070 742 490 048 5 008 034
604 146 2 229 463 63 777 3 528 126 1 053 090 380 048 1 433 138 6 671 664 377 238 136 293 7 185 195 4 681 478 2 924 975 7 606 453
3 244 151 1 670 466 358 832 6 045 831 1 288 032 3 854 032 5 142 064 14 251 839 1 122 872 492 280 789 884 16 656 875 2 436 893 962 337 3 399 230
1 793 317 2 085 305 815 092 5 393 258 1 247 749 17 855 1 265 604 4 038 716 170 877 210 490 1 401 297 5 821 380 1 852 596 4 346 052 6 198 648
2.2
Health, science and public policy 1 024 339 419 225 1 443 564
2.2.1 Health in socioeconomic development 2.2.2 Research policy and strategy coordination
2.3
National health policies and programmes development and management 43 794 243 427 212 1 010 351 1 884 990 47 116 796
2.3.1 Technical cooperation with countries 2.3.2 Collaboration with countries and peoples in greatest need 2.3.3 Procurement services (excluding drugs, biologicals and contraceptives) 2.3.4 Emergency and humanitarian action; relief and rehabilitation operation and emergency preparedness programme
2.4
Biomedical and health information and trends 2 444 572 4 769 105 7 213 677
2.4.1 Epidemiology, statistics, trend assessment and country health information 2.4.2 Publishing, language and library services
3.1
Organization and management of health systems based on primary health care 1 351 852 4 441 075 5 459 625 11 252 552 16 394 232 14 200 16 380 032 262 588 1 206 501 6 355 994 7 825 083 427 322 1 754 131 855 609 3 037 062
3.1.1 Health systems research and development 3.1.2 National health systems and policies 3.1.3 District health systems
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Table VI (continued)
Global and Eastern Mediterranean Western Pacific Interregional Activities Total Programme
1.1 8 910 436 5 507 121 213 000 213 000 992 173 533 600 533 600 955 366 14 417 557 11 896 529 8 910 436 5 570 998 3 793 622 18 275 056 2.1 16 936 281
Governing bodies
1.1.1 World Health Assembly 1.1.2 Executive Board 1.1.3 Regional Committees
General programme development and management
2.1.1 Executive management 2.1.2 Managerial process for WHO’s programme development; WHO response to global change; Deputy Regional Directors and Directors of programme
3 181 063 1 033 319 768 976 5 975 531 794 913 419 468 1 214 381 11 004 774 330 535 615 736 361 172 12 312 217 1 401 212 4 953 259 6 354 471
1 655 087 1 060 898 138 402 3 809 753 237 790 534 977 772 767 8 856 450
3 376 974 5 628 146 9 704 056 30 605 705 2 331 990 1 927 691 4 259 681
16 312 435 14 778 339 12 339 183 60 366 238 2.2 7 977 903 7 553 296 15 531 199 2.3 88 617 686
management at regional offices; Staff development 2.1.3 Management and support to information systems 2.1.5 Coordination with other organizations; Mobilization of external health resources
Health, science and public policy
2.2.1 Health in socioeconomic development 2.2.2 Research policy and strategy coordination
National health policies and programmes development and management
2.3.1 Technical cooperation with countries 2.3.2 Collaboration with countries and peoples in greatest need 2.3.3 Procurement services (excluding drugs, biologicals and contraceptives) 2.3.4 Emergency and humanitarian action; relief and rehabilitation operation and emergency preparedness programme
4 204 906 355 025 353 121 9 564 596 1 242 393 1 098 691 2 341 084 4 329 562 2 748 077 11 282 545 11 438 324 19 410 192 30 848 516
6 256 402 7 390 682 7 674 834 109 939 604
2.4 25 497 468 38 464 611 63 962 079 3.1 416 894 19 622 209 20 039 103 61 335 7 833 369 1 221 907 9 116 611 1 643 733 3 667 432 999 235 6 310 400 4 177 924 35 282 540 34 514 579 73 975 043
Biomedical and health information and trends
2.4.1 Epidemiology, statistics, trend assessment and country health information 2.4.2 Publishing, language and library services
Organization and management of health systems based on primary health care
3.1.1 Health systems research and development 3.1.2 National health systems and policies 3.1.3 District health systems
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Table VI (continued)
Programme
Africa
The Americas
South-East Asia
Europe
3.2
Human resources for health 16 236 193 727 662 16 963 855 4 173 217 858 038 858 038 338 199 16 049 354 248 2 219 300 23 240 55 749 303 554 4 173 217 9 868 805 585 255 10 454 060 2 659 002 2 659 002 1 417 808 339 429 1 250 718 3 007 955 2 828 601 114 260 614 834 354 150 867 704 644 407 517 423 44 585 165 005 882 177 338 528 1 220 705 830 029 830 029 867 704
3.2.1 Human resources for health 3.2.2 Fellowships
3.3
Essential drugs 2 160 328 352 973 2 513 301
3.3.1 Action programme on essential drugs 3.3.2 Procurement of drugs, biologicals and contraceptives
3.4
Quality of care and health technology 947 305 33 464 546 164 1 526 933
3.4.1 Technology for health care 3.4.2 Drugs and biologicals, quality, safety and efficacy 3.4.3 Traditional medicine
4.1
Reproductive, family and community health and population issues 3 927 417 98 742 386 573 669 815 66 822 12 180 930 948 6 092 497 192 974 2 794 817 616 128 296 806 2 010 696 238 189 1 265 3 163 084 2 085 995 875 434 2 961 429 312 813 4 224 658 986 772 414 105 2 263 263 412 931 387 428 4 464 499 1 094 219 389 437 1 483 656 3 143 218 423 930 45 000 468 930 45 522 1 416 942 390 025 1 012 301 962 551 778 341
4.1.1 Reproductive health 4.1.2 Child health 4.1.3 Adolescent health 4.1.4 Women’s health 4.1.5 Ageing and health 4.1.6 Special programme of research, development and research training in human reproduction 4.1.7 Occupational health
4.2
Healthy behaviour and mental health 954 292 179 684 1 814 598 2 469 863 747 589 6 166 026
4.2.1 Mental health 4.2.2 Substance abuse including alcohol and tobacco 4.2.3 Health promotion 4.2.4 Communications and public relations 4.2.5 Rehabilitation
4.3
Nutrition, food security and safety 1 464 093 48 197 1 512 290
4.3.1 Nutrition 4.3.2 Food safety
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Table VI (continued)
Global and Eastern Mediterranean Western Pacific Interregional Activities Total Programme
3.2 6 751 387 478 600 7 229 987 1 571 795 1 571 795 2 501 481 688 717 42 817 3 233 015 1 697 905 40 084 95 184 69 350 140 711 664 589 136 582 1 231 553 2 638 318 1 446 745 6 679 913 320 823 7 000 736 1 900 735 1 900 735 1 406 765 4 616 751 22 231 4 638 982 1 432 319 696 676 2 128 995 4 216 575 4 530 330 870 695 9 617 600 4 300 773 316 915 608 951 946 605 886 724 1 237 932 398 152 2 441 386 717 147 80 768 1 392 625 343 082 212 532 2 746 154 770 626 507 357 1 277 983 418 601 2 666 517 664 534 1 162 180 2 154 839 529 824 287 613 4 798 990 1 025 542 594 452 1 619 994 442 977 8 740 877 3 667 861 3 074 257 1 962 975 4 000 952 624 940 13 330 985 3 362 492 2 434 179 5 796 671 49 208 443 2 473 099 51 681 542 3.3 11 412 246 1 049 649 12 461 895 3.4 11 695 837 5 591 940 3 957 996 21 245 773 4.1 17 065 148 1 110 664 1 942 458 1 850 775 2 416 550 1 250 112 2 741 987 28 377 694 4.2 7 996 759 6 220 101 12 561 547 8 773 182 2 261 367 37 812 956 4.3 10 226 897 4 894 056 15 120 953
Human resources for health
3.2.1 Human resources for health 3.2.2 Fellowships
Essential drugs
3.3.1 Action programme on essential drugs 3.3.2 Procurement of drugs, biologicals and contraceptives
Quality of care and health technology
3.4.1 Technology for health care 3.4.2 Drugs and biologicals, quality, safety and efficacy 3.4.3 Traditional medicine
Reproductive, family and community health and population issues
4.1.1 Reproductive health 4.1.2 Child health 4.1.3 Adolescent health 4.1.4 Women’s health 4.1.5 Ageing and health 4.1.6 Special programme of research, development and research training in human reproduction 4.1.7 Occupational health
Healthy behaviour and mental health
4.2.1 Mental health 4.2.2 Substance abuse including alcohol and tobacco 4.2.3 Health promotion 4.2.4 Communications and public relations 4.2.5 Rehabilitation
Nutrition, food security and safety
4.3.1 Nutrition 4.3.2 Food safety
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Table VI (continued)
Programme
Africa
The Americas
South-East Asia
Europe
4.4
Environmental health 5 283 338 711 101 482 608 142 136 31 270 6 650 453 7 586 423 311 607 44 962 356 569 3 039 374 818 301 296 950 1 256 398 11 700 6 318 325 3 216 654 487 359 582 693 458 950 785 431 5 531 087 1 410 399 431 633 1 842 032 1 544 446 909 151 2 600 344 1 182 164 7 907 241 2 547 075 6 618 846 3 588 111 10 888 775 065 14 608 941 2 170 690 2 170 690 775 584 775 584 3 297 637 3 297 637 1 383 677 1 383 677 80 958 498 17 229 015 2 678 453 2 678 453 481 022 481 022 2 449 642 2 449 642 552 736 552 736 96 379 700 2 564 942 947 202 947 202 1 357 045 1 357 045 6 589 165 6 589 165 1 971 989 1 971 989 48 243 184 1 517 689 3 891 706 462 267 27 389 489 656 907 782 47 940 219 607 25 470 1 191 831 172 312 74 367 910 273 1 389 377
4.4.1 Water supply and sanitation in human settlements 4.4.2 Environmental health in urban development 4.4.3 Assessment of environmental health hazards 4.4.4 Promotion of chemical safety 4.4.5 Incorporation of health concerns into environmental management
5.1
Eradication/elimination of specific communicable diseases 1 889 776 2 103 1 891 879
5.1.1 Global eradication or elimination 5.1.2 Regional eradication and elimination
5.2
Control of other communicable diseases 1 156 953 1 602 840 1 159 724 3 122 231 7 228 534 4 220 482 69 093 50 688 18 610 545
5.2.1 Vaccine-preventable diseases 5.2.2 Diarrhoeal and acute respiratory disease control 5.2.3 Tuberculosis 5.2.4 Emerging diseases including cholera and other epidemic diarrhoeas, zoonoses and antimicrobial resistance 5.2.5 Other communicable diseases 5.2.6 Control of tropical diseases 5.2.7 Special programme for research and training in tropical diseases 5.2.8 Prevention of blindness and deafness
5.3
Control of noncommunicable diseases 1 371 298 1 371 298
5.3.1 Control of noncommunicable diseases
6.1
Personnel 2 246 699 2 246 699
6.1.1 Personnel services and administration
6.2
General administration 11 271 484 11 271 484
6.2.1 Administrative support to technical programmes
6.3
Budget and finance 3 436 917 3 436 917 Total 154 051 900
6.3.1 Budget and finance
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Table VI (continued)
Global and Eastern Mediterranean Western Pacific Interregional Activities Total Programme
4.4 3 976 843 258 687 560 102 240 068 489 577 5 525 277 1 107 728 108 199 1 215 927 1 961 680 1 030 512 2 194 556 981 254 1 843 915 2 562 806 333 405 10 908 128 211 345 211 345 738 058 738 058 4 052 756 4 052 756 964 986 964 986 88 225 500 818 993 3 067 928 1 007 619 2 748 474 964 542 3 740 143 4 156 174 173 900 15 858 780 2 293 227 2 293 227 480 581 480 581 3 141 304 3 141 304 824 115 824 115 75 506 800 5 326 099 818 993 1 361 136 2 109 899 1 791 284 63 780 4 300 160 1 493 793 1 809 707 2 704 058 98 471 10 406 189 5 683 641 61 273 5 744 914 5 257 160 1 902 229 2 109 222 4 688 073 4 714 455 12 658 929 2 315 600 708 199 34 353 867 7 644 290 7 644 290 10 154 048 10 154 048 43 756 208 43 756 208 14 692 457 14 692 457 268 730 487 24 530 823 5 971 112 7 872 169 3 620 692 2 922 438 44 917 234 5.1 11 684 411 675 559 12 359 970 5.2 16 935 323 7 318 592 11 328 877 10 963 734 33 244 965 29 905 889 2 395 581 2 041 257 114 134 218 5.3 17 316 505 17 316 505 6.1 16 233 037 16 233 037 6.2 74 558 196 74 558 196 6.3 23 826 877 23 826 877 812 096 069
Environmental health
4.4.1 Water supply and sanitation in human settlements 4.4.2 Environmental health in urban development 4.4.3 Assessment of environmental health hazards 4.4.4 Promotion of chemical safety 4.4.5 Incorporation of health concerns into environmental management
Eradication/elimination of specific communicable diseases
5.1.1 Global eradication or elimination 5.1.2 Regional eradication and elimination
Control of other communicable diseases
5.2.1 Vaccine-preventable diseases 5.2.2 Diarrhoeal and acute respiratory disease control 5.2.3 Tuberculosis 5.2.4 Emerging diseases including cholera and other epidemic diarrhoeas, zoonoses and antimicrobial resistance 5.2.5 Other communicable diseases 5.2.6 Control of tropical diseases 5.2.7 Special programme for research and training in tropical diseases 5.2.8 Prevention of blindness and deafness
Control of noncommunicable diseases
5.3.1 Control of noncommunicable diseases
Personnel
6.1.1 Personnel services and administration
General administration
6.2.1 Administrative support to technical programmes
Budget and finance
6.3.1 Budget and finance
Total
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Table VII Financial Implementation by Category of Expenditure and Sources of Funds for 1998-1999 (expressed in thousands of US dollars and in percentages)
This table provides an analysis of financial implementation by category of expenditure and sources of funds, both in absolute terms and in percentages. Sources of funds Voluntary Fund Category of expenditure Regular Budget for Health Promotion % Salaries and common staff costs Short-term staff Consultants Temporary advisers Members of expert committees, study groups and scientific groups Governing body delegates and members Travel on official business Research contracts Contractual services for translation, printing, data processing, aerial operations and other purposes Supplies and materials, rental and maintenance of premises and equipment, stationery, utilities and communications Acquisition of furniture and equipment Acquisition and improvement of premises Fellowships and other educational activities Local cost subsidies Direct financial cooperation General project costs - The Americas Other expenditure, including programme support costs and joint activities with the United Nations Total 377 262 60 714 16 368 11 081 503 957 26 299 2 194 46.5 7.5 2.0 1.4 0.1 0.1 3.2 0.3 18 744 25 459 3.3 4.5 682 316 1.5 0.7 70 892 62 844 16 722 21 285 11 % 12.6 11.2 3.0 3.8 8 837 2 448 1 462 761 United Nations sources % 18.8 5.2 3.1 1.6 63 423 24 794 12 238 5 499 1 168 6 861 36 815 0.1 2.2 12.0 % 20.6 8.1 4.0 1.8 520 414 150 800 46 790 38 626 515 1 125 52 586 64 784 0.1 3.1 3.8 % 30.1 8.7 2.7 2.2 Other funds Total
62 396
7.7
58 048
10.3
7 926
16.9
28 241
9.2
156 611
9.1
101 424 28 797 285 57 700 38 227 801 20 673
12.5 3.5
156 402 19 409 184
27.8 3.5
6 134 544 (7)
13.1 1.2
59 648 39 601 2 623
19.4 12.9 0.9 2.5 9.2 (5.2)
323 608 88 351 3 085 83 545 168 189 974 (42 723)
18.7 5.1 0.2 4.8 9.7 0.1 (2.5)
7.1 4.7 0.1 2.5
16 434 96 412 75 (47 559)
2.9 17.2 (8.5)
1 652 5 406 98
3.5 11.5 0.2
7 759 28 144 (15 837)
6 415 812 096
0.8 100.0
46 869 562 231
8.4 100.0
10 626 46 885
22.7 100.0
7 157 307 135
2.3 100.0
71 067 1 728 347
4.1 100.0
Less: Eliminations (see Statement I, Annex 2) Transfers between technical cooperation programmes Programme support costs Total - International Health Programme (16 307) (48 971) 1 663 069
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Table VIII Financial implementation of Director-General’s and Regional Directors’ Development Programme for 1998-1999 (expressed in US dollars)
GLOBAL AND INTERREGIONAL ACTIVITIES Director-General’s Development Programme Executive management Renewing the Health-for-All strategy WHO’s 50th anniversary Commission on macroeconomics and health meeting (Geneva, 9 - 10 December 1999) Mediterranean centre for vulnerability reduction Emergency humanitarian action Study group on home care and nursing World Health Day 1998: Safe motherhood Consultative meeting on "Setting the WHO agenda for mental health" (Geneva, 28 - 29 April 1999) World No-Tobacco day 1998 (Rio de Janeiro, Brazil, 31 May 1998) Development of a new international growth reference for children International thyroid tissue bank project Buruli Ulcer Consultation on the global surveillance, diagnosis and therapy of human transmissible spongiform encephalopathies (Geneva, 9 - 11 February 1998) Orthopoxviruses (Smallpox and Monkeypox) Follow-up of antiretroviral treatments for HIV/AIDS Control of Tropical Diseases Total - Global and interregional activities AFRICA Director-General’s Development Programme National programme for traditional medicine (Benin) Subtotal Regional Directors’ Development Programme Health activities for peace in Senegal and The Gambia Opthalmological training Dangme-West district health insurance scheme (Ghana) Community health initiatives (The Gambia) Baseline survey on female genital mutilation (The Gambia) Cholera control (Burkina Faso) Emergency support (Democratic Republic of the Congo) Emergency assistance for train catastrophe (Cameroon) Assistance to refugees from Guinea-Bissau (Cape Verde) Need for emergency supply of injection streptomycin (Kenya) Financial support for yellow fever outbreak in Nimbow (Liberia) 6 000 2 400 9 845 10 110 10 000 11 316 20 000 30 000 10 000 15 000 11 900 30 000 30 000 7 468 292 844 213 653 171 956 147 553 50 000 47 467 100 000 40 703 49 538 81 977 30 000 145 836 71 564 75 882 39 563 386 708 1 952 712
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Table VIII (continued)
Assistance to the handicapped in Tera (Niger) Donation to Mahwalala Red Cross community clinic (Swaziland) National review commission on health (Zimbabwe) Assistance to cholera epidemic (Burundi) National forum on collaboration with government and nongovernmental organizations (Cape Verde) Support to health delivery service in Ga rural district (Ghana) Support to community health initiative (Guinea) Assistance to community health initiatives (Guinea) Support to national consultant (Mozambique) Assistance to Hlatikulu hospital (Swaziland) Support to sick people in need (Zimbabwe) Support to the 1st medicine thesis (Ndjamena, 9-13 February 1999) Study tour, Faculty of health sciences (Niger) Support to the medical school (Senegal) Promotion of quality nursing/midwifery education and services (Swaziland) Collaborative support for health with Emory University (Uganda) Grant to the Dorothy Duncan Centre Braille library, Harare Sponsorship to the Department of Dentistry, University of Zimbabwe Support to train two optometry students in South Africa (Zimbabwe) Support to work for the elderly (Lesotho) Support to the national medical and pharmaceutical day (Côte d'Ivoire) Support to Chiwarira hospital (Zimbabwe) Study tour on basic sanitation (Zimbabwe) Support for replacing immunization materials after depot fire outbreak (Rwanda) Support to HIV perinatal transmission (The Gambia) Emergency situation (Lesotho) Fight against HIV/AIDS (Lesotho) Assistance to the Society for Women against AIDS (Senegal) HIV/AIDS theme group (South Africa) Assistance to AIDS affected children and orphans (Zimbabwe) Aids prevention and support organization (Zimbabwe) Oral health conference (Lesotho) National consensus conference on cerebral-spinal meningitis epidemics management (Algeria) Meningitis epidemic (Democratic Republic of the Congo) Subtotal Total - Africa THE AMERICAS Regional Directors’ Development Programme Support to International Society for Equity in Health Participation in the PAS Code 75th Anniversary Commemoration (Cuba) Support to countries affected by Hurricane Floyd Total - The Americas
3 800 20 000 26 095 2 720 5 000 9 850 10 313 100 000 10 000 12 451 10 000 10 000 4 125 20 000 54 887 10 500 30 000 500 5 000 9 822 5 000 3 000 6 844 34 959 2 002 10 000 2 536 10 000 20 997 1 003 1 000 9 563 12 000 66 362 676 900 706 900
25 000 29 000 50 200 104 200
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Table VIII (continued)
SOUTH-EAST ASIA Director-General’s Development Programme Health telematics project (Bhutan) Emergency assistance to East Timor (Indonesia) Subtotal Regional Directors’ Development Programme Relief work to the people of Orissa affected by the super cyclone during October 1999 (India) Support to East Timor operation in Dili, Darwin and Jakarta (Indonesia) Emergency health assistance for victims of flood (Bangladesh) Health telematics project (Bhutan) Strengthening the infrastructure of the Institute of Community Health (Myanmar) Development of evaluation indicators for health-promoting hospitals Accreditation of institutions of higher education of health personnel to ensure academic standards and social accountability Strengthening the activities of the Nursing Council (Nepal) Development and establishment of a "Centre for combating counterfeit drugs" (Thailand) Regional consultation on development of traditional medicine in South-East Asia (New Delhi, 14-17 September 1999) Curriculum development and hands-on training in traditional medicine (Myanmar) 2nd scientific working group meeting on operational research in reproductive health Participation in the WHO International Conference on Tobacco and Health (Kobe, Japan 14-18 November 1999) Establishment of an electronic library and electronic connection between teaching institutes (Myanmar) Biregional workshop on health impacts of haze-related air pollution Airport rodent control research (Thailand) Proposal for strengthening surveillance of noncommunicable diseases "Strengthening smoking control programmes" initiated by national committee on smoking control (Indonesia) Thalassaemia and health awareness campaign (Maldives) Subtotal Total - South-East Asia EUROPE Director-General’s Development Programme Earthquake (Turkey) Subtotal 56 254 56 254 50 000 140 548 10 798 1 254 5 000 6 287 7 765 29 985 20 015 13 548 8 000 18 058 10 005 10 000 6 737 19 180 25 800 11 621 20 999 415 600 548 000 80 517 51 883 132 400
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Table VIII (continued)
Regional Directors’ Development Programme Emergency relief - floods and sodium cyanide spill (Kyrgyzstan) Humanitarian assistance, WHO office, Moscow Humanitarian relief support to Kosovo refugees and humanitarian crisis in the South Balkans Global poliomyelitis eradication (Turkey) Control of typhoid fever outbreak in the Osh region (Kyrgyzstan) Prevention and control of malaria (Kyrgyzstan) Earthquake (Turkey) Support to sustainable health system reforms in Armenia, Azerbaijan and Georgia Interregional meeting on qualitative approaches to investigating maternal deaths (Copenhagen, 13-15 December 1999) Subtotal Total-Europe EASTERN MEDITERRANEAN Regional Directors’ Development Programme Intercountry meeting on computer software (Alexandria, Egypt, 26-28 September 1999) Regional initiative on national health accounts (Tunisia, 25-29 November 1999) General research projects Burden of disease study (Lebanon) Burden of diseases and cost effectiveness meeting (Morocco, 1-4 December 1999) Support to Medical University of Gezira (Sudan) Health systems research study (Iran) Quality control laboratory (Iraq) 36th International conference on medicine’s history 17th Conference on "Future health care in Egypt" (Alexandria, 13-15 April 1999) Support for the repair of hospitals (Iraq) Supplies and equipment for environmental and occupational health (Iran) 1st Regional cystic fibrosis conference and 7th Jordan Paediatric Society Conference (Jordan) Conference of Jordan Society of Anaesthesia Intensive Care (Amman, 12 - 14 May 1999) 16th Meeting of Egyptian Society of Surgeons Meeting on health-for-all policy (Alexandria, 19-21 July 1999) Private medical education (Pakistan) Medical education workshop (Lebanon, 5-6 May 1999) Arabization of medical education "Embriology and anatomy of nervous system" 16th Summer meeting of the Egyptian Society of Surgeons (Cairo, 23-25 September 1998) Development of technical guidelines and codes on health technology 26th Pharmaceutical Conference (Cairo, 8-10 December 1999) Health laboratory technology support Laboratory publications (plasma fractionation and ethics manual) Regional meeting of directors of blood transfusion services (Teheran, 16-20 October 1999) Intercountry meeting on follow up achievements of the safe motherhood initiative in EMR (Sana’a, 3-6 May 1998) 16 300 30 563 55 000 134 734 38 137 23 866 1 000 20 576 1 000 1 500 18 050 110 000 500 2 000 3 000 31 890 14 081 6 293 35 352 1 474 57 353 1 500 8 214 17 601 14 016 21 013 50 949 95 285 146 441 30 000 11 320 12 563 23 746 12 151 2 545 385 000 441 254
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Table VIII (continued)
Intercountry workshop on development national capacity in safe motherhood surveillance and neonatal health (Cairo, 26-29 April 1999) Contribution to Neonatal Society (Iran) Conference on guidelines for adolescent health education (Istanbul, Turkey, 2-4 September 1998) 12th medical conference (Kuwait City, 18 - 22 October 1999) Seminar on public health and occupational medicine (Karachi, 17 - 19 December 1999) Meeting of the Islamic Organization (Istanbul, Turkey, 29 August - 1 September 1998) World No-Tobacco Day WHO 50th anniversary exhibit (Geneva, 11-15 May 1998) World Health Day 1998 "Health-for-All" Newsletter (Lebanon) 4th Gulf Water conference (Manama, 13-18 February 1999) Demonstration project on sea water desalination module using solar and electrical energies Joint WHO/AAEA workshop on medical preparedness and coordination meeting (Cairo, 19-23 November 1999) Tuberculosis control strategy of directly observed treatment (Cairo, 5-7 December 1998) 3rd Arabic Conference on Tuberculosis (Amman, 7-9 November 1999) Support for outbreak of meningitis (Sudan) Training activity for focal points from the populous countries Training manual on communicable disease surveillance 4th IEA Regional scientific meeting (Tunis, 18-21 November 1998) Conference of International Federation for Infection (Cairo, 10 - 13 September 1999) EMRO/TDR/CTD small grants scheme for control oriented research in tropical diseases Project for cutaneous leishmaniasis Community-based preventive programme for oral health for pre-school children in Damascus Total - Eastern Mediterranean
8 734 558 1 470 6 000 3 000 6 000 500 5 570 26 141 4 000 1 500 10 000 33 414 1 500 1 500 69 203 20 670 5 000 1 991 2 320 99 939 30 777 13 200 1 018 000
WESTERN PACIFIC Director-General’s Development Programme Emergency assistance to Taiwan (China) Subtotal Regional Directors’ Development Programme Training courses to strengthen disaster preparedness and management (China) Courses on human emergency management (Philippines) Emergency relief assistance Symposium on Health Informatics and Telematics and the 9th World Congress on Medical Informatics (Seoul, 17-22 August 1998) Triple blood bags and screening test kits (Philippines) 4th International Symposium on Biological Monitoring in Occupational and Environmental Health (Seoul, 23-25 September 1998) Drinking water surveillance (Cambodia) 55 000 69 300 46 000 35 200 22 200 13 100 99 700 50 000 50 000
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Table VIII (continued)
Underground water supply system of a high school (Papua New Guinea) Supplementary immunization and surveillance activities of poliomyelitis eradication X-ray films, tuberculin and vehicle for tuberculosis control (China) Dengue control (Cambodia) Cholera, dengue and viral hepatitis control Meeting on the control of communicable diseases in Guangdong, Heinan, Hong Kong and Macao (Hong Kong, China, 2-4 June 1998) 3rd SEAR/WPR biregional meeting on control of communicable diseases (Chiang Mai, Thailand, 18-20 November 1998) Malaria control (Cambodia) Subtotal Total - Western Pacific Total Director-General Total Regional Directors Grand total
16 700 150 000 173 900 49 900 208 600 18 600 9 500 84 500 1 052 200 1 102 200 2 221 366 3 651 900 5 873 266
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GLOSSARY OF BUDGETARY AND FINANCIAL TERMS Term Accrual Accounting Definition The method of recording transactions by which income is reflected in the accounts in the period in which it is due and expenditure is reflected in the accounts in the period in which it has been incurred. Authorization of extrabudgetary funds for expenditure. Amount voted by the Health Assembly for a specified purpose for a financial period, against which obligations may be incurred up to the amount so voted. ASSESSMENTS are made against Member States on the basis of the Health Assembly Appropriation Resolution, using the United Nations scale of assessments, modified to take into account the different membership of WHO. After application of credits from the Tax Equalization Fund, credits due to Members under the financial incentive scheme and casual income appropriated by the Health Assembly to reduce contributions, the resulting net assessments are payable by Member States. A plan in financial terms for the carrying out of a programme of activities in a specified period. The effective working budget represents the approved regular budget, after the transfers between appropriation sections and application of the exchange rate facility, against which the Director-General is authorized to incur obligations. This facility was established by the Health Assembly to cover losses on foreign exchange in order to maintain the level of the regular budget so that the activities that are represented by the programme budget approved by the Health Assembly may be carried out, irrespective of the effect of currency fluctuations. The Health Assembly approves the limit within which the facility must operate. The facility operates by generating a charge against available casual income to finance the net additional costs of the regular budget resulting from differences between the rates of exchange used to calculate the budget and the United Nations accounting rates of exchange prevailing during the financial period. This mechanism is applied to the currencies of the respective countries of location of the regional offices and headquarters. Similarly, any net savings resulting from more favourable accounting rates of exchange in relation of these currencies are transferred to casual income. Expenditure for a financial period is the total amount of obligations, which is the sum of the disbursements and unliquidated obligations made against the appropriation or allocation of the period. The method of accounting under which each fund is maintained as a distinct financial and accounting entity, with a separate self-balancing group of accounts.
Allocation Appropriation
Assessments
Budget Effective Working Budget
Exchange Rate Facility
Expenditure
Fund Accounting
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Term Internal Borrowing
Definition A mechanism by which, after the working capital fund has been fully utilized, otherwise available funds are used to finance regular budget implementation pending the receipt of assessed contributions. Internal borrowings are repaid when Member States pay their assessed contributions. A commitment or undertaking creating a liability against the resources of the Organization. That part of an obligation which has not been paid, i.e., an outstanding liability. The balance remaining from within an unliquidated obligation after payment of all liabilities under that obligation. That part of an appropriation or allocation which has not been obligated. The unobligated regular budget appropriation balance at the end of the financial period could either be funded in part, in total or not at all depending on the status of collection of assessed contributions. Any unobligated funded balance of the regular budget appropriations is credited to casual income. The unfunded part of the regular budget appropriation unobligated balance is credited to casual income only when the underlying outstanding assessed contributions are collected. A fund established by the Health Assembly consisting of regular budget funds set aside for that purpose and used to finance regular budget implementation pending receipt of assessed contributions. Withdrawals from the fund are reimbursed when Member States pay their assessed contributions.
Obligation Unliquidated obligation Savings on Unliquidated Obligations Unobligated Balance Unobligated balance of Regular Budget appropriations
Working Capital Fund
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REPORT OF THE EXTERNAL AUDITOR ON THE ACCOUNTS OF THE WORLD HEALTH ORGANIZATION FOR THE FINANCIAL PERIOD 1 JANUARY 1998 TO 31 DECEMBER 1999
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REPORT OF THE EXTERNAL AUDITOR ON THE ACCOUNTS OF THE WORLD HEALTH ORGANIZATION FOR THE FINANCIAL PERIOD 1 JANUARY 1998 TO 31 DECEMBER 1999 INTRODUCTION 1. The audit of the World Health Organization (WHO) was assigned to the Auditor-General of the Republic of South Africa for the 1996-1997 and 1998-1999 bienniums in terms of Resolution WHA48.18 of the Fortyeighth meeting of the World Health Assembly. AUDIT OBJECTIVE AND TERMS OF REFERENCE 2. The scope of the audit in the UN environment is somewhat wider than that associated with many private sector bodies. It has as its objectives both the expression of an opinion on the financial statements of the World Health Organization and the compliance of transactions with the Financial Regulations and Legislative Authority, as well as reporting on the matters set out in Article XII of the Financial Regulations and the Additional Terms of Reference Governing the External Audit of the World Health Organization set out in the Appendix thereto. AUDIT APPROACH AND MODUS OPERANDI 3. The audit was conducted in conformity with the Common Auditing Standards of the Panel of External Auditors of the United Nations, the Specialized Agencies and the International Atomic Energy Agency. Audit work was carried out at headquarters, regional and country offices and encompassed, inter alia, the following: • • • • • A strategic planning phase to ensure an effective, efficient and comprehensive audit. The follow-up of certain matters which had previously been reported. Substantive and analytical procedures to test transactions and balances. Procedures to test the compliance of transactions with the Financial Rules and Regulations. Value added work including a follow-up computer audit of general controls and a review of treasury and cash management.
4. The audit for the 1998-1999 biennium also included an examination of the accounts of the Onchocerciasis Control Programme, the African Programme for Onchocerciasis Control, the Trust Fund for the Special Programme in Tropical Diseases, the International Agency for Research on Cancer, the International Computing Centre and the Trust Fund for the United Nations Programme on HIV/AIDS. 5. The funds advanced by the United Nations Development Programme and the United Nations Population Fund were subject to audit to the extent that they were material to my examination of the accounts of the World Health Organization. PURPOSE OF THE REPORT 6. The purpose of this report is to bring to the attention of the World Health Assembly, at an appropriate level of aggregation, important matters relating to the audit work conducted in the 1998-1999 biennium. My findings are reported under the following headings: • • • • • • • • Communication and accountability Financial situation Management matters and reform Financial statements and accounting Regional and country offices Treasury and cash management General controls in the computerised environment Environmental management
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COMMUNICATION AND ACCOUNTABILITY Audit Committee
7. In pursuance of the initiative taken by the Executive Board to establish an Audit Committee at its 103rd session in resolution EB103.R8, the inaugural meeting took place on 21 January 2000. 8. The Audit Committee provides a unique forum for a frank and constructive working relationship inter alia between the External Auditor and representatives of the Executive Board. It is submitted that the matters for discussion can be determined on a needs basis for each meeting and that the External Auditor should be empowered to raise any matter that was provided for in the mandate of the Audit Committee, at his or her discretion. The members of the Audit Committee have unique responsibilities and in that capacity, a need might arise for direct communication between them and the External Auditor. 9. I look forward to a constructive and fruitful relationship with this important committee in furthering the achievement of improved accountability. Audit Steering Committee
10. Further to our communication with the governing bodies, regular meetings were held with senior members of the Secretariat. This contributed significantly to strengthening the cooperation and interface between the external audit team and the Secretariat, which in turn improves the efficiency and quality of the audit. The Audit Steering Committee provides a forum where key issues with regard to audit matters can be communicated at a functional level and at an early stage. This provides for due process and the timely implementation of follow-up actions where required, as well a forum in which different viewpoints can be exchanged constructively. The initiative of the Director-General to establish such a committee is appreciated. Internal audit and oversight
11. During the financial period, liaison with the Office of Internal Audit and Oversight (IAO) continued and reliance was placed on the audit work performed by IAO to the extent that it related to the audit objectives and focus of the external audit mandate. Reporting
12. The findings from the audit were thoroughly discussed with the management concerned and a high level of cooperation was experienced. This included a three tier approach to the reporting process as outlined below, which has proved to be timely and effective: • • • Informal queries were raised at an operational level and included verbal and written communication. Formal management letters, detailing our findings and recommendations, were directed to the regional directors, directors of related entities and the Executive Director in respect of the audits completed at regional offices, related entities and headquarters respectively. A draft version of this report was submitted to the Director-General to afford her the opportunity to provide comments before transmission to the President of the World Health Assembly.
13. Furthermore, the external audit report will be presented to the Audit Committee for deliberation prior to the Fifty-third World Health Assembly. FINANCIAL SITUATION Internal borrowing
14. In accordance with the Financial Regulations, the deficit on the regular budget of USD 68 492 201 (19961997: USD 97 578 194) was financed through advances from the Working Capital Fund to an amount of USD 5 381 513 (1996-1997: USD 4 632 071) and the remainder of USD 63 110 688 (1996-1997: USD 92 946 123), was secured against the internal borrowing facility.
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Outstanding assessed contributions
15. The trend in the level of outstanding contributions was reported on in the interim to the Fifty-second World Health Assembly and the effect that the arrears of assessed contributions may have on the work programme and the financial situation. 16. While the trend over the last year has indicated an improvement, the importance of the timely payment of contributions is inescapable and members should continue to be alert to the potential effects of late payment, some of which are discussed in the paragraphs which follow. 17. The assessed contributions for the 1998-1999 biennium amounted to USD 837 502 000. These were due and payable in two equal installments of USD 418 751 000 on the first day of the 1998 and 1999 years. Amounts of USD 326 377 216 (78 per cent) and USD 354 195 332 (85 per cent) had been collected in respect of the 1998 and 1999 assessments at 31 December 1998 and 1999 respectively. This shows an improvement of 7 per cent in the collection rate achieved in 1999 over 1998. 18. However, approximately 59 per cent of the assessed contributions due on 1 January 1998 were received in the last six months of 1998, whilst 66 per cent of the assessed contributions due on 1 January 1999 were received within the corresponding period in 1999. The amount collected within each quarter of the 1998 and 1999 years is indicated in figure 1 as a percentage of the total amount assessed for the respective year.
Figure 1:
Assessed contributions received per quarter during the 1998-1999 biennium as a percentage of the total assessed amount
40 30 % 20 10 1998 0 1999 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
19. A comparison of the regular budget’s cumulative funds available, obligations established and disbursements made during the 1998-1999 biennium is presented in figure 2, while table 1 in its turn, provides an analysis of the total obligations established and the balance of unliquidated obligations at 31 December 1999 per office.
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Figure 2:
Cumulative funds available, obligations established and disbursements made during the 1998-1999 biennium
1000 800 600 400 200 0 USD Millions
Jan-98
Feb-98
Mar-98
Apr-98
May-98
Cumulative funds available
Jun-98
Jul-98
Aug-98
Sep-98
Oct-98
Nov-98
Cumulative disbursements
Dec-98
Jan-99
Feb-99
Mar-99
Apr-99
May-99
Jun-99
Cumulative obligations
Jul-99
Aug-99
Sep-99
Oct-99
Nov-99
Dec-99
Table 1:
Analysis of the total obligations established and the balance of unliquidated obligations at 31 December 1999 per office Total obligations established USD 154 051 900 80 958 498 88 225 500 48 243 184 96 379 700 75 506 800 268 730 487 812 096 069
Office
Unliquidated obligations USD
Unliquidated obligations as a percentage of total unliquidated obligations 18 4 14 4 21 15 24 100
Unliquidated obligations as a percentage of total obligations established 9 3 13 7 17 16 7 10
AFRO AMRO EMRO EURO SEARO WPRO HQ TOTAL
14 149 203 2 827 362 11 273 249 3 328 028 15 977 905 11 740 672 18 820 515 78 116 934
20. The effect of late payments on the financial situation and programme implementation is influenced by various financial and technical variables. During the 1998-1999 biennium and as reflected in figure 2, the cumulative disbursements exceeded the cumulative funds available in the months of November, 1998 and of March, May, June, October and November, 1999 and the internal borrowing facility was used in order to fund the World Health Organization’s activities after depletion of the Working Capital Fund. A significant deterioration in the collection of assessed contributions in the future could potentially contribute to the following: • • The cumulative disbursements could exceed the cumulative funds available. The non-implementation of planned activities.
21. Figure 3 indicates the increase in the arrears of assessed contributions over the past three bienniums and the efforts made to collect these arrears should be encouraged.
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Figure 3:
Arrears in assessed contributions
250 000 000 200 000 000 150 000 000 1998-1999 biennium 1996-1997 biennium 100 000 000 50 000 000 0 31/12/95 31/12/97 Biennium 31/12/99 1994-1995 biennium 1984-93
USD
MANAGEMENT MATTERS AND REFORM Programme implementation, monitoring and evaluation
22. In prior years, the possible areas for improvement and planned developments to improve programme implementation, monitoring and evaluation were reported to the World Health Assembly. The follow-up work carried out during the final audit indicated that progress has been made in this regard. The Director-General has indicated that this has focused on the key elements of strategic programme budgeting, monitoring and evaluation processes and includes inter alia the following: • Standardised business rules and procedures for programme implementation and monitoring were developed and implemented from January 2000. These included the following: • Operational work plans in all clusters and regions. Work plans linked to expected results in the Programme Budget 2000-2001. A common minimum data set, including benchmarks and performance indicators. The activity management system (AMS) will serve as the basis for preparing and monitoring work plans where it is available. Progress towards the achievement of expected results will be monitored technically and financially on a continuous basis.
• • •
As from January 2000, all obligating documents require an AMS code in order to be accepted for processing, thus enabling the Secretariat to systematically account for its financial transactions in terms of programme outputs and products for the first time. This is a prerequisite for moving towards an integrated planning process for the 2002-2003 biennium, based on total resources. Guidelines for preparing the Proposed Programme Budget 2002-2003 have been prepared with the object of subsequent evaluation in mind. A project to develop a unified system for programme evaluations. In the interim, certain areas were selected by the Director-General where in-depth evaluations will be performed during 2000. A fully integrated planning, monitoring, evaluation and reporting system will be operational in the 2002-2003 biennium.
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Revision of the WHO Manual
23. The WHO Manual, which outlines the administrative practices and procedures of the Organization has become progressively outdated. This has been recognised by management and the responsibility for the updating of various sections is vested in the different programmes and departments concerned. 24. During 1999, requests were made by the Budget and Management Reform Services at headquarters to programmes and departments for a special updating effort and a Working Group on the WHO Manual also met on four occasions. However, by March 2000 progress had been limited and no detailed timetable for the revision process was available. 25. The Secretariat has indicated that it expects to have made considerable short-term improvements by the end of 2000, but recognises that more fundamental change will follow the wider reform of the World Health Organization in both financial and human resource management. FINANCIAL STATEMENTS AND ACCOUNTING Disclosure in the Financial Report and Audited Financial Statements
26. As noted in the report to the Fifty-first World Health Assembly, compliance with the United Nations System Accounting Standards has contributed to the significant improvement in the disclosure and understandability of the financial statements. The continued efforts by the Secretariat to improve the presentation of financial information, as reflected in the Financial Report and Audited Financial Statements for the 1998-1999 biennium, is to be commended. Procurement
27. In the Interim Report of the External Auditor to the Fifty-second World Health Assembly it was reported that when goods are delivered to headquarters, a receiving report is completed confirming the receipt of the goods. However, when goods are delivered to the regions, the receiving report is kept at the regional office concerned. This creates a risk that payments could be made in respect of goods which have not been received. 28. This matter was subject to follow-up during the final audit and it was observed that this shortcoming had not yet been addressed either through forwarding the receiving reports to headquarters as evidence that goods were received, or by an alternative compensating control. 29. The Secretariat has indicated that although it is expected that the shortcoming will be eliminated in the longer term, compensating controls will be implemented in the interim. Recording and valuation of inventory
30. In compliance with the revised United Nations System Accounting Standards, the World Health Organization disclosed the value of non-expendable equipment, including furniture, computers and other office equipment and motor vehicles for the first time, in a note to the financial statements for the 19961997 biennium. The United Nations System Accounting Standards provide that the method of valuation (cost or valuation) should be clearly stated in a note to the financial statements. The World Health Organization applies the cost method. As mentioned in the previous report, certain shortcomings, detailed below, were identified which the Secretariat undertook to address in a realistic timeframe. 31. Inventory items are recorded in various independent inventory systems by the respective regional and country offices as well as related entities after being charged to expenditure in full on purchase. Audits conducted during the 1998-1999 biennium, revealed certain weaknesses in the internal controls relating to these systems. It is submitted that control would be significantly strengthened by the introduction of an integrated inventory system, that can be reconciled with the accounting records. The Secretariat has indicated that in the short-term, procedures for recording inventory will be tightened in order to support reconciliation with the accounting records and that integrated systems are being considered in the long-term.
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32. Although the method of valuation was communicated by headquarters, there was no clear definition of cost and consequently regions have applied different interpretations. The situation was further complicated by the need to value inventory items purchased prior to the revision of the accounting standards. 33. The Secretariat has undertaken to remind Regional Offices of the detailed provisions for the calculation of costs. It is recommended that these be carefully reviewed to ensure that adequate guidance is provided to ensure consistency. For example, the following may be considered: • • • Whether the obligation or the disbursement should be used in determining cost. Whether transport and insurance expenses should be included in cost. The valuation method to be used where inventory items have been obtained for no consideration or where it is impossible to determine the original cost.
Accounting policies in respect of investments
34. Bearing in mind the continued efforts by the Secretariat to improve the presentation of financial information, it is recommended that the accounting policies be revisited to give effect to the realisation of foreign exchange gains and losses and the amortisation of premiums and discounts within the ambit of the United Nations System Accounting Standards. The effects of the recommended changes in accounting policies are illustrated below: • Long-term investments have been made in bonds for the staff health insurance fund to the value of CHF 56,8 million. The book value of the investment is reflected as USD 41,5 million, which is based on the exchange rate on the date of purchase. A more appropriate accounting treatment could be to apply the exchange rate applicable at the last day of a particular financial period. The application of this accounting policy would mean that dependent on the change in the exchange rate, unrealised gains or losses will be recorded. These unrealised gains and losses do not represent actual gains or losses, but rather show what the position would be if the securities concerned were sold at the last day of a particular financial period. If the exchange rate at 31 December 1999 is applied, the investment would be shown as USD 35,8 million. The difference of USD 5,7 million represents an unrealised foreign exchange loss that is currently not accounted for as such. Certain long-term financial instruments such as bonds, were purchased for the staff health insurance fund at either a premium or a discount on their nominal value. The current investment strategy is to hold such bonds to maturity and they are reflected at purchase price in the accounting records, as a result of which neither the premiums nor the discounts are accounted for. Had they been accounted for, an unrealised net discount of USD 3,1 million would have been reflected in the accounting records at 31 December 1999.
•
The Secretariat has advised that since these investments are part of the staff health insurance fund, a longterm view is taken. Provision for delays in assessed contributions
35. A provision for delays in the collection of assessed contributions amounting to 100 per cent of the assessed contributions outstanding at the biennium end has been made in the financial statements as at 31 December 1999. Whilst we are in agreement with the accounting policy to provide for the delays in assessed contributions, the level of 100 per cent appears to be conservative and even unrealistic, in terms of past experience. 36. Although the ruling United Nations System Accounting Standards make allowance for a full provision, they were amended in October 1999 to encourage revision and the Secretariat has undertaken to review the level of the provision in the 2000-2001 financial period. REGIONAL AND COUNTRY OFFICES 37. The importance of the regional and country offices is underscored by the level of the budgeted expenditure which made up approximately two thirds of the total regular budget during the 1998-1999 biennium. An increased focus was placed on the work performed by country offices and it appeared overall, that while many country offices were taking steps to develop and implement improved systems and procedures, there
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was often a low level of coordination amongst one another on aspects which appear to lend themselves to transversal solutions. It is expected that further audit work will be carried out in this regard in the future. Plans of action
38. The reviews of the plans of action indicated that while some were of a particularly high standard, certain instances were identified where they had not been compiled in a timely manner. The comprehensiveness of information pertaining to, inter alia, the setting of specific programme targets, the estimation of the staff time required and the identification of indicators for monitoring, could also be improved. The Secretariat has indicated that the planned introduction of a fully integrated planning, monitoring, evaluation and reporting system is expected to bring a noticeable improvement in this area in 2000-2001. Allotment control and review of unliquidated obligations
39. The improvement in allotment control was reported to the Fifty-second World Health Assembly and compliance with the relevant procedures was again subjected to audit work at regional offices. Although appropriations were not exceeded, the audit procedures conducted in this regard revealed cases where some allotments were temporarily exceeded by obligations. 40. The audits at regional offices included a review of the unliquidated obligations recorded in the accounts of the World Health Organization for the 1996-1997 biennium. The net savings that relate to the settlement of unliquidated obligations, disclosed at the end of the previous biennium, are recorded and disclosed in the financial statements as savings on unliquidated obligations. To allow for comparison, the net savings recorded in respect of the unliquidated obligations disclosed at the end of the previous two bienniums for the regular budget is provided. 41. As at 31 December 1997, the balance of unliquidated obligations for the Regular Budget amounted to USD 83 147 148. The savings recorded against that balance as at 31 December 1999 amounted to USD 17 732 008, representing 21 per cent of the balance. The comparative figures for the 1994-1995 biennium reflected unliquidated obligations of USD 95 636 523 and savings of USD 15 702 049 as at 31 December 1997, representing 16 per cent of the total. 42. Whilst the balance of unliquidated obligations is decreasing, the comparison between the savings on unliquidated obligations for the 1996-1997 biennium with the savings of the 1994-1995 biennium, reveals a 5 per cent increase in the savings on unliquidated obligations of USD 2 029 959. 43. Regular reviews conducted at the regional offices during the biennium revealed instances where obligations previously established, were cancelled as they were no longer required. These regular reviews of unliquidated obligations and the cancellation of individual obligations that are no longer required are encouraged. It is recommended that regional offices continue to be reminded that obligations established at the end of a biennium and disclosed in the financial statement must represent valid liabilities. The Secretariat has advised that in the review of the Financial Regulations and Rules underway, focus is being given to strengthening measures for the accounting and management of unliquidated obligations. Local cost subsidies
44. It is a requirement that in instances where local cost subsidies are paid, the relevant governmental financial reports should be received and certified by the World Health Representative or the technical officer at the regional office. At the end of the 1996-1997 biennium, it was reported to the Fifty-first World Health Assembly that the audit tests of regional office’s activities revealed a significant number of outstanding statements of expenditure that prevents proper accountability in respect of local cost subsidies which have been paid by the regional offices. 45. During the 1998-1999 biennium various initiatives were taken by the regional and country offices to improve accountability in respect of local cost subsidies and to obtain the outstanding financial reports in a timely manner. The continued strengthening of procedures to actively follow-up on outstanding financial reports and to improve accountability in respect of local cost subsidies paid by the regional and country offices is encouraged. The cooperation of recipients remains imperative in ensuring the success of initiatives taken in this regard.
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Fellowships
46. Utilisation and termination reports are the key elements in evaluating the success of the fellowship programme. It was again noted that regional and country offices did not conduct the follow-up and monitoring procedures in accordance with the WHO Manual since a significant number of fellows did not submit the required reports during and at the end of their fellowships. However, the Secretariat noted that fellows who are recommended by Member States are responsible to provide reports and there is therefore a shared responsibility between the Secretariat and fellows in this regard. Personal accounts
47. The total balance of the personal accounts has increased since 31 December 1997. The increase may be partially attributed to inadequate follow-up actions by regional offices, while the follow-up process was further hampered by field employees not always responding in a timely manner to requests for documentation by regional offices. Asset management
48. Various recommendations were made to improve asset management at regional and country offices. Recommendations made included, inter alia, the following: • • • Inventory listings should be updated within a reasonable period after the issue of inventory items. The monitoring of vehicle usage should be improved. Obsolete vehicles and inventory should be disposed of in a timely manner.
Cash and bank management
49. The total amount of cash on hand, at banks and in transit amounted to approximately USD 52,6 million at 31 December 1999, of which approximately USD 36,5 million related to imprest accounts. 50. The audit of the imprest accounting system included a review of the internal control measures and a scrutiny of the imprest accounts, thereby determining whether they were properly prepared, reviewed and recorded in accordance with the prescribed requirements. 51. Certain imprest accounts were maintained with balances that were either in excess of, or inadequate to meet the operational needs at the date that the reviews were conducted and recommendations were made regarding the formal arrangements in this regard. 52. Although certain imprest accounts were identified during the biennium where the respective reconciliations and journalisations were not performed in a timely manner, the improvement at the end of the biennium has been noted and regional and country offices are encouraged to continue with their efforts in this regard. 53. Recommendations were also made regarding the closure of inactive imprest accounts. Human resource management
54. Key findings pertaining to human resource management included, inter alia, the following: • • • Country offices did not have formal training programmes for the development of the skills and potential of their personnel, funds were not budgeted and training appeared to be inadequate. The prescribed performance evaluations of the work performed by consultants were not conducted on the termination of their contracts in many instances. This is likely to detract from effective decisionmaking especially with regard to the further use of these services. The use of short-term staff presents a largely similar situation and it may be useful to extend the provisions relating to consultants with regard to performance evaluation to include this category of staff as well.
The Secretariat has provided the assurance that the review of human resources policies and practices that is currently in progress will also address the above-mentioned matters.
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Operational cost of country offices
55. The Secretariat is to be credited with the fresh look which is being taken in respect of country offices and it is noted that one of the strategic objectives of the World Health Organization is to invest more funds in technical projects rather than on operational matters. The relationship between budgeted operational cost and the total regular budget for some country offices was nevertheless still expected to increase from the 1996-1997 biennium to the 2000-2001 biennium. A norm or benchmark relating to a realistic level of operational cost at country offices to the total regular budget allocation is not currently available and could perhaps be attributed to differing individual circumstances. It is suggested that it may be a worthwhile exercise to compare the levels at various country offices to encourage management by exception, bearing in mind that the regular budget allocation is but one part of the resources available. TREASURY AND CASH MANAGEMENT Scope and approach
56. A high-level risk based review was performed on the more significant treasury and cash management functions. The treasury processes were reviewed against generally accepted good practice in three main categories, namely risk management, high-level operational control and low-level operational control. A combination of observation, inquiry and limited compliance testing was performed during the review. The Secretariat’s initiatives
57. The Secretariat has recently identified the need to re-engineer the treasury function in order to improve the return on investments within certain risk parameters and has taken the following steps: • • Discussions were held with the bankers on the Advisory Investment Committee to obtain their views on future strategy, policy and mechanisms to monitor the performance of especially the external asset managers. Following a recent actuarial study of the staff health insurance scheme, asset-liability modeling is being considered to align future liabilities with investment activities.
In addition, the Secretariat has now agreed on new organisational arrangements and has commissioned external advice on processes as part of its management reform activities. A comprehensive list of planned actions and timescales on how management intends to re-engineer the detail of the treasury processes was not yet available at the time of finalising this report. The Secretariat has advised that this is planned. 58. Furthermore, the Secretariat has noted the following further comments on treasury and cash management and indicated that it will be taking up the recommendations below. Funds available for investment
59. The total funds received by the World Health Organization is of the order of USD 2 billion per biennium. Receipts which are not immediately required to fund the regular budget and extra budgetary expenditure, the staff health insurance fund and other specific funds which the World Health Organization holds, have to be invested. Details regarding the source of these funds, of which USD 57 million relates to the regular budget, are set out in Schedule 1(b) of the Financial Report and Audited Financial Statements. 60. A graphical illustration of the total funds invested, fixed term deposits and other investments, during the 24 months ended 31 December 1999, is as follows:
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Figure 4:
Total funds invested, fixed term deposits and other investments, during the 24 months ended 31 December 1999 Total
1200
1000
Am ount (USD m illion)
800
600
Other investments Fixed-term deposits
400
200
0
Jan
Mar -96
Ma y-
Jul-
Se p-
No v-
Jan
Mar -97
Ma y-
Jul-
Se p-
No v-
Jan
Mar -98
Ma y-
Jul-
Se p-
No v-
Jan
Mar -99
Ma y-
Jul-
Se p-
No v-
M onth-
Asset allocation
61. In terms of the investment policy, the World Health Organization is only allowed to invest in certain types of financial instruments. Investments in currencies other than USD are accounted for at their USD equivalent based on the official rates of exchange. Deposits and securities are accounted for at cost and are held mainly in Eurodollar fixed term deposits, treasury bills and notes, the staff health insurance portfolio and in call accounts. Advisory Investment Committee
62. In terms of the Financial Rules, an advisory committee shall assist the Director-General in framing broad investment policies. The mandate of the Advisory Investment Committee (AIC) is not clearly formulated and regularly updated. Consequently, it was difficult to evaluate the extent to which the committee is discharging its responsibilities and it is recommended that its mandate be reviewed as well as its composition and the conditions applicable to its members. Investment policy
63. The broad investment guidelines are embodied in the investment policy and strategy. Although this serves as the key instrument directing operational investment practices and decisions, it was last updated in December 1998. It is suggested that this should take place more frequently in order to keep track of developments in the external environment. Risk management
64. A certain level of exposure to risk is inevitable in any investment environment. The responsibility for carrying out effective risk management is not formally defined and in place.
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65. Pertinent information should also be generated to allow for the monitoring of risks and investments. Although a monthly statement is prepared, it is submitted that the information could be improved with reference, inter alia, to the following and would provide a better opportunity to improve performance and identify corrective actions, where necessary: • • • • • • Commentary on investing activities, including the aggregate return on investments. Commentary on the performance of external asset managers. Valuations and market exposure per product type. Credit exposure per counter-party. Market exposure not hedged. Forward-liquidity requirements.
Code of conduct
66. While the Staff Regulations and Rules do provide for the treasury environment, consideration may be given to strengthening these provisions inter alia, with the disclosure of potential conflicts of interest, the formal recording of favours, gifts and any form of remuneration received, or monitoring mechanisms. The Secretariat indicated that this will be addressed within the human resources review. Internal performance measurement
67. At 31 December 1999, 59 per cent of the investments were being managed internally. These investments were mainly term deposits, current and call accounts and the overnight investment at the US Federal Reserve Bank. 68. There were no formal performance objectives, either in terms of return on investments or other effectiveness norms, set for the treasury function. Consequently, an assessment of actual performance against objectives could not be carried out to evaluate performance. Performance of the external asset managers
69. At 31 December 1999, 41 per cent of the total investments were being managed by external asset managers, the bulk of which was held by two major banks in the amounts of USD 362 million and USD 55 million respectively. The appointment letters of the external asset managers or their predecessors, date from the early eighties in many cases and are not standardised, for example with regard to the fee structure and performance assessment. Furthermore, fees are not being calculated on the same basis and a number of agreements have simply been concluded by way of a letter. 70. Although meetings are held with the external asset managers to discuss their portfolios’ performance, more regular and formal evaluation against appropriate benchmarks is recommended. Cash flow budget
71. Treasury staff currently obtain a statement of available balances on all the bank accounts on a daily basis. In addition, they maintain a cumulative list of funds required, based on the maturity dates of fixed-term investments and material known commitments. These lists, coupled with their experience of the high-level funding needs, drive the level of investment in fixed-term deposits. The review revealed that although this approach to cash flow management is informal, it appeared to be effective in ensuring that funds are available for the programme activities. However, the existing approach is conservative and does not take account of all variables, while the total funds available for investment is continually growing. If the World Health Organization could estimate its future cash flows more accurately and align its investment products and timing more finely, it could potentially earn additional investment income without compromising the functioning of its core business processes.
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Bank reconciliations
72. The World Health Organization maintains forty-eight bank accounts that are being administered and reconciled at headquarters. Thirty bank reconciliations relating to the months of November and December 1999 had not yet been completed on 22 February 2000. It was noted that a large number of the bank reconciliations were not done on a monthly basis and in approximately ten cases, where there were not many transactions, only on a six-monthly basis. One account carried a balance of USD 55 000 had been inactive for at least a year and had earned no interest over this period. 73. It is submitted that rationalising the number of bank accounts would facilitate control and promote regular monitoring and performance. GENERAL CONTROLS IN THE COMPUTERISED ENVIRONMENT 74. In the interim report to the Fifty-second World Health Assembly, it was reported that a computer audit was carried out in respect of the general controls within the AFI System. The audit had revealed that adequate general control measures within the information technology environment, to ensure the effective and continuous operation of the data processing function, had not been implemented throughout in respect of the following identified focus areas: • • • • • Organisational structure and operating procedures. Programme change controls. Logical access controls. Physical access and environment controls. Contingency planning.
75. It was further reported that the Informatics Technology Strategy review project was reviewing the areas identified during the audit where controls can be improved. 76. General controls are the foundation for the controls of all application systems in a computerised information systems environment and contribute to the effective operation of programmed procedures, including controls over the design, implementation, security, use and amendment of computer programs and files. The adequacy and effectiveness of these controls therefore influences the risk of compromising application controls. 77. Due to the importance of general controls as well as their effect on the extent of reliance audit can place on application controls, a follow-up audit was performed during October 1999, with the objective of determining the effectiveness of the corrective steps taken in respect of the shortcomings previously identified. The follow-up audit revealed that the majority of weaknesses identified had not yet been addressed and identified further areas where improvements could be effected. Broadly, these included: • • • • • • • • Formal IT policies, procedures and plans did not exist in all cases. An appropriate individual had not been allocated the function and trained to perform the duties of information security officer. The World Health Organization still depended heavily on short-term staff to perform critical IT functions or operate as backup for permanent personnel performing critical IT functions. A formal service-level agreement between the World Health Organization and the International Computer Centre (ICC) did not exist. Although system, user, programme and test documentation existed, it was either not complete or not up to date. Quality assurance was not involved in the programme change process and a formal change control committee did not exist. Users also did not sign off programme change control forms as proof of their satisfaction with changes. The programmers had access to production programs and data. Library management software had also not been implemented and programme changes were not logged and reviewed. A formal, documented system development life cycle (SDLC) methodology did not exist.
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• • • • • • • • • • • • • • • •
Various logical access control weaknesses still existed, which compromised data integrity and confidentiality. Formal physical security control measures were still not in place within the network room in the WHO building. A disaster recovery plan (DRP) did not exist.
78. The following salient comments were included in the Secretariat’s comprehensive response: A security and a network policy will be prepared during the current year. An Information Technology Security Officer is to be appointed in the near future. Steps have been taken towards a more appropriate staff arrangement and will continue to be built upon. After the appointment of the Technology Security Officer, a full Security Audit will be performed internally and it is expected that appropriate measures will be put in place within the next six months. The value of a service level agreement will be discussed with ICC. The new systems are well documented, however, the documentation of the core AFI system, which is more than 20 years old, has become increasingly outdated. The considerable resources required to address this matter will rather be invested in future developments. The quality assurance is entrusted to each programmer/analyst and the supervisor, which is considered to be adequate. A more formal change control and test procedure will be elaborated. More clearly defined roles and responsibilities and segregation of duties will be implemented. A SDLC methodology is not considered necessary as no development of the AFI is taking place. The security system currently implemented follows the recommendations given by ICC and is considered adequate and in line with the needs and resources of the Organization. Formal physical security control measures will be addressed with the development of the security and network policies. The major outstanding security issue has been addressed by ensuring that the doors to the network room are automatically locked. The part of the AFI which relies on the ICC mainframe facilities, does indeed have a disaster recovery plan.
79. It has been noted by the Secretariat that the issues raised will take time and financial resources to address. While the response is encouraging, the actions taken and those planned to be taken do not fully address the risks highlighted in the report. It is recommended that the general controls within the computerised environment receive enhanced attention. The Secretariat recognises the need for development in this area and has indicated that it will take this forward in a cost effective manner as systems are renewed. ENVIRONMENTAL MANAGEMENT 80. Environmental management and disclosure is of increasing importance in sound corporate governance, as well as to users of financial reports and stakeholders in general. A number of important international developments have taken place both in the field of standard setting, as well as from the perspective of accounting, auditing and disclosure. Recently developed auditing methodology provides for the audit of financial disclosure, compliance and performance with regard to the environment. 81. The International Organization for Standardisation in its ISO14001, highlights inter alia the following aspects which could be addressed in setting an environmental policy: • • • A framework for the setting and reviewing of environmental targets. Management´s commitment with regard to continual improvement and compliance with specific environmental legislation and regulations. Other aspects such as impact assessment, conservation of resources and relevant aspects of the functions of the organization.
82. Furthermore, the documented environmental management system could, in terms of ISO 14001, address planning, implementation, awareness training, communication, emergency preparedness, management review and corrective action in order to be an effective management tool.
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83. Enquiries were made during the course of the audit regarding the existence or development of an environmental management policy for the World Health Organization. In this regard, the Secretariat has highlighted its application of the Geneva waste disposal provisions, as well as several important examples of health programme areas where environmental issues form a key part of the work of the World Health Organization. 84. Bearing in mind the foregoing, it is suggested that the Secretariat should consider ensuring that an environmental policy is developed and communicated globally. The Secretariat has indicated that it will develop and communicate an appropriate environmental policy. ACKNOWLEDGEMENT 85. The audit of World Health Organization was assigned to the Auditor-General of the Republic of South Africa for the 2000-2001 and 2002-2003 bienniums, in terms of Resolution WHA 52.8 of the Fifty-second meeting of the World Health Assembly. I look forward to this continuing participation in the process of renewal and reform of the World Health Organization and the opportunity to take forward the many constructive issues, which are currently under development or in process. 86. I wish to record my appreciation for the cooperation and assistance extended by the Director-General, the Regional Directors and the staff of the World Health Organization during my audit.
S A Fakie External Auditor Auditor-General of the Republic of South Africa Pretoria, Republic of South Africa 29 March 2000