WORLD HEALTH ORGANIZATION EXECUTIVE BOARD 105th Session Provisional agenda item 7.4 EB105/23 30 November 1999
Casual income Report by the Director-General
ESTIMATED CASUAL INCOME AVAILABLE AS AT 31 DECEMBER 1999 1. Pursuant to Article 7.1 of the Financial Regulations, this account is credited with miscellaneous income arising from interest on funds deposited with banks, the sale of equipment and other property, exchange differential and other sundry revenues, including income from the operation of the underground garage at headquarters. Pursuant to Article IV of the Financial Regulations, the account is also credited with the unobligated balances of appropriations remaining at the end of the financial period when such balances become cash for credit to casual income, and as outstanding assessed contributions to the regular budget for the past financial periods are paid. 2. The Annex to this report shows the amounts of casual income available at year-end during the period 1995 to 1999 and the amounts used for the regular budget and other purposes. The amount indicated as the balance available as at 31 December 1999 is a tentative estimate; the actual amount at that date will be known only after completion in March 2000 of the financial report of the Organization for the biennium 1998-1999. The 1998-1999 financial report will be submitted to the Fifty-third World Health Assembly in May 2000. 3. Under the exchange rate facility and in accordance with Financial Regulation 4.6 and the appropriation resolution for 1998-1999 (resolution WHA50.25), additional costs or savings in the implementation of the current regular budget, on account of the currencies of the countries of location of the regional offices and headquarters, will be charged or credited to casual income. The operation of this facility for 1999 is expected to generate a net income of about US$ 5 million. 4. The depletion of the Working Capital Fund continues to be of much concern. Since 1994-1995 this account has not been fully restored to its authorized level of US$ 31 million and has not been functioning as originally expected by the Health Assembly. The situation concerning collection of assessed contributions has not shown any improvement, and the Working Capital Fund will continue to be fully exhausted unless new measures are taken. One of the causes of the depletion of the Working Capital Fund is the application of payments of arrears of contributions by Member States. Unless arrears of contributions received can be directly identified to drawings under t he Working Capital Fund corresponding to the biennium for which they both relate, arrears received are credited to casual income. This has had the effect of increasing the amount available for appropriation from casual income at the expense of replenishing the Working Capital Fund. This matter will be addressed as part of the proposals to reform the Financial Regulations and Rules.
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5. Based on current information it is estimated that at the end of the biennium on 31 December 1999, a balance of US$ 21.7 million will be available for appropriation by the Fifty-third World Health Assembly in May 2000. US $ Balance carried forward from 31 December 1997 Add: Estimated casual income for 1998-1999 Surplus from Real Estate Fund (resolution WHA52.15) Exchange rate savings 1998-1999 Collection of arrears of contributions Assessments on formerly inactive Members Interest earned Refunds and rebates Sale of equipment Savings on unliquidated obligations Revenue from Swiss Postal Authority Surplus from Revolving Sales Fund Underground parking Less: Amounts appropriated during 1998-1999 Net amount of casual income available from 1996-1997 returned to Member States, applied to their assessments for 1998-1999 (resolution WHA50.25) Balance of casual income returned to Member States in accordance with Financial Regulation 5.2 (resolution WHA52.20) Appropriation for priority programmes: Malaria (resolution WHA48.32) Eradication of poliomyelitis, Roll Back Malaria, Stop Tuberculosis Initiative, Initiative on HIV/AIDS and Sexually Transmitted Infections, Tobacco Free Initiative (resolution WHA52.20) Financial incentive scheme 2002-2003 (resolution WHA52.20) Estimated balance as at 31 December 1999, available for appropriation 10 000 000 2 049 000 5 000 000 10 194 040 48 280 4 500 000 500 000 175 000 17 000 000 1 956 1 300 000 350 000 41 118 276 71 266 680 US $ 30 148 404
16 256 760
2 765 347
15 000 000 5 555 567 49 577 674 21 689 006
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6. After setting aside the interest earnings credited to casual income for the incentive scheme (resolution WHA41.12) to be apportioned among Members, the Executive Board may wish to consider various options and subsequently recommend to the Fifty-third World Health Assembly appropriate use of the available funds of casual income. These options are: (a) to appropriate US$ 2 142 000 to finance the Real Estate Fund;
(b) to replenish the Working Capital Fund by US$ 10 194 040, an amount equivalent to the arrears of contributions credited to casual income, thus reflecting the proposed change in accounting treatment referred to in paragraph 4 above; (c) to return the balance of available casual income to Members to part finance contributions to the regular budget; (d) (e) to make the funds available for priority programme activities; to make the funds available for a combination of the four proposals above.
ACTION BY THE EXECUTIVE BOARD 7. The Executive Board may wish to consider the following draft resolution. The actual amounts will be decided upon by the Fifty-third World Health Assembly in May 2000 on the basis of the final figures as shown in the financial report of the Organization for the financial period 1998-1999. The Executive Board, Having considered the report of the Director-General on casual income,1 RECOMMENDS to the Fifty-third World Health Assembly the adoption of the following resolution: The Fifty-third World Health Assembly DECIDES that the estimated amount available in casual income as at 31 December 1999 should be used:
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Document EB105/23.
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US $ (i) to part finance the 2002-2003 regular budget to be apportioned among Member States in accordance with the financial incentive scheme (resolution WHA41.12) from the estimated interest earnings in 1999 to finance the Real Estate Fund in accordance with proposals contained in document EB105/24 to replenish the Working Capital Fund by the amount of arrears of contributions credited to casual income to return the balance to Member States in 2000 to apply against their regular budget assessments
2 836 073 2 142 000
(ii) (iii)
10 194 040 6 516 893 21 689 006
(iv)
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ANNEX
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5
CASUAL INCOME, 1995-1999 (US dollars) Appropriated or utilized for Year Balance 1 January Regular budget for biennium (1) 1995 1996 1997 1998 1999 a
Other purposes (4) 1996-1997 1998-1999 1998-1999 1998-1999 2002-2003 29 073 552 9 269 000 (684 427) 8 130 709 9 820 291b
a
Casual income received during the year (5) 41 084 482 19 033 757 12 613 958 17 559 979 16 509 297b
Balance at 31 December
(2) 18 638 332 19 702 262 29 467 019 30 148 404 23 320 914
(3) 10 947 000 12 617 000 16 256 760 2 765 347 5 555 567
(6) 19 702 262 29 467 019 30 148 404 23 320 914 21 689 006b
Details of funds appropriated or utilized for other purposes as shown below: Transfer to Working Capital Fund (resolutions WHA47.20 and WHA48.21) 7 918 252 5 000 000 -
Year
Real Estate Fund
Programmes financed by appropriation from casual income 10 000 0001 6 145 0002 10 000 0001 15 000 0005
Usage of exchange rate facility (Financial Regulation 4.6) 13 464 300 (5 731 000) (17 534 471)3 (1 869 291) (3 130 709)b
Total column 4 above
1995 1996 1997 1998 1999 1 2 3 4 5
7 691 000 10 705 000 (2 049 000)4
29 073 552 9 269 000 (684 427) 8 170 709 9 820 291b
US$ 20 000 000 for malaria control activities in Africa (resolution WHA48.32). US$ 6 145 000 for WHO worldwide management information system (resolution WHA50.24). Net savings surrendered to casual income in respect of exchange rate facility in 1996-1997 was US$ 23 266 100. Surplus transferred to casual income (resolution WHA52.15).
US$ 15 000 000 for high priority programmes, including eradication of poliomyelitis, Roll Back Malaria, Stop Tuberculosis Initiative, Initiative on HIV/AIDS and Sexually Transmitted Infections, and Tobacco Free Initiative, applied appropriately and in a balanced manner (resolution WHA52.20). b
Estimated.
WORLD HEALTH ORGANIZATION EXECUTIVE BOARD 105th Session Provisional agenda item 7.4 EB105/23 Corr.1 14 January 2000
Casual income Report by the Director-General
CORRIGENDUM Page 2, paragraph 5, under subheading Less: Amounts appropriated during 1998-1999, please read: Financial incentive scheme 2000-2001 (resolution WHA52.20)
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