Onchocerciasis Control Programme status of funds statement as at 31 December 1990: opinion of the external auditor

Onchocerciasis Control Programme in West Africa Programme de Lutte contre I'Onchocercose en Afrique de l'Orest. I I I JOINT PROGRAMME COMMITTEE Office of the Chairman JPC-CCP COMITE CONJOINT DU PROGRAMMEBureau du Prdsident JPC|Z.6 ORIGINAL: ENGLISH October 1p!1 JOINT PROGRAMME COMMITTEE Twelfth session Rivadh 1-4 Decenber 1991 Provisional a item I ONCHOCERCIASIS CONTROL PROGRAMME STATUS OF FLINDS STATEMENT AS AT 31 DECET,tsEB 1990 OPINION OF THE EXTERNAL AUDITOR To: The Joint Progra.me Connittee of theOnchocerciasis Control progranne I have exanined the appended Status of Funds Statenent and Annexes of theOnchocerciasis control Programme for the year ended l1 December 1990, in accordance withthe common Auditing Standards of the Panel of External Auditors of the United Nations, theSpecialized Agencies and the Internati-onal Atomic Enerry Agency. My exanj.nation includeda general review of the accounting procedures and such tests of the- accounting records andother supporting evidence as I considered necessary in the circunstances. As a result of ny examinati.on, I nm of the opinion that the StateEent and Annexespresent fairly the financial position at l1 Decenbe" ,ggO and the results of theoperations for the period then ended; that they were prepared in accordance with thestated accounting policies which were applied on a basis consistent with that of thepreceding financial period; and that the transactions were in accordance with thelegislative authority of the Onchocerciasis Control progrnmme and the Financj.alRegulations of the World Health Organization. r have no observations to nake on these financial statenents. (signed) C.L. PRESS Director, Internationalfor Conptroller and Auditor General United Kingdon E:<ternal Auditor 8 octouer t99t \ I I JPC72.6 page 2 l,iorld HeaIth Organization Avenue Appia Geneva, Switzerland ONCHOCERCIASIS CONTROL PROGRAMME AS AT 31 DECEMBER 1gg0(expressed in US dollars) Balance Brought Forward - 1 January 1990 Income Funds received including adjustnents and refundsBurkina Faso World Bank (transfers from its Special Account for theOnchocerciasis Control prograrrme) Sub-tota1: Funds received Miscellaneous income Interest earned Sale of equipnent and naterial,Savings/(Deficit) on prior years unliquidated obligationsRefunds and rebates Sub-total: Miscellaneous income Total: Income Total: Funds available Obligations (See Annex I) Disbursenents Unliquidated obligations Balance at 31 December 1990 (held bV WHO) US$ 62826 3 938 4zz 13 608 370 4s ott+ 24 500 000 zq-fi--61tr_ 987 080 39 909 7 352 457 75 415 _zfl;qT;.;- 27 000 476 40 508 846 30 432 360 LO 176 486 The above status of funds stateEent together with Annex I, Sunnary of Expenditure,Annex II, Explanatory Notes, are approved. and (sisned) John E. Morgan Chief, Accounts (signed) Edward E. llhdeDirector, Budget and Finance a t , JPEL2.6 page 3 ANNEX I ONCHOCERCIASIS CONTROL PROGRAMME as at 31 December 1990 Sunmary of Expenditure b-v Progrnmne under the 1990 Budset(expressed in US dollars) a Prograrone Activity Approved Budget 0bligations Unobligated Balance 1 7.6 Total - AnnuaL Costs 2. Capital Itens Costs Office of the Director Vector Control Epideniological Evaluation Socioecononic Developnent Onchocerciasis Chenotherapy Project Administration and Support Services 1.6.1 Administration, 0uagadougou t.6.2 Adninistration, Geneva Meetings Biostatistics and Infornation Systens 1 g1g 000 L 634 g3t 2 532 698 322 547 309 845 287 oOO 253 870 1 2L 1 1.1 1.2 1.3 1.4 1.5 182 000 582 ooo 406 ooo 147 ooo 2 417 000 340 000 305 000 589 587 8ss 581 245 4t 54 702 221 52 75 0oo 25 000 550 ooo 300 000 35 0oo 2.7 2.2 2.3 2.4 2.5 L t54 558 2L 555 762L 4|9 558 L27 634 27 442 L26 238(53 558) 25 366 t.7 1.8 284 069 33 130 (115 598) L7 353(4 845) 29 685 000 29 345 5o3 339 4gt Buildings Furniture Vehicles Technical equipnent Data processing equipnent 29 477 39 587)(52 855) 78 419(t7 245) Total - Capital Iteus Total - Onchocerciasis Control Progranne 1 085 0oo 1 086 857 (1 857) 30 770 000 30 432 360 337 64o t JPC72.6 page 4 ANNEX II ONCHOCERCIASIS CONTROL PROGRAMME AS AT 31 DECEMBER 1990 EXPLANATORY NOTES 1. Statement of sisnificant account ing policies The significant accounting policies and reporting practices applied in the WorldHea1th Organization (WHO) reflect the requirements of the Financial Regulations andFinancial Rules approved by the World Health Assenbly. The status of funds Statetrent andAnnex I are prepared on a basis consistent with the accounting policies applied to the WHgconsolidated financiaL statements. The significant accounting policies are : (a) The Onchocerciasis Control Progranme (OCP) trust fund and supporting Annex I, Sumnaryof E:<penditure, are presented in US dollars. (b) The current assets and liabilitles of the OCP are maintained within the tllHoConsolidated Statenent of Assets and Liabilities. Disclosure of current assets andIiabilities in the OCP status of funds statenent is restricted to the cash balance ofthe fund and unliquidated obligations. (c) Current assets and liabilities (including unliquidated obligations) in respect of gCpfunds held in other currencies at the end of the financial period are usuarrytranslated into US dollars at the United Nations accounting rate of exchangeprevaillng on l1 Decenber. However, when a substantLal change occurs in therelatlonship between currencies at the end of a financiar peiiod, the exchange rates used to translate funds held in such currencies as at l1 Dlcenber into US dollars arethose in force on 1 January of the subsequent year. Ttrese rates are set by common agreeEent within the United Nations systen prior to 31 Deceuber. This practice wasfollowed in previous years in order to provide a Dore realistic value of the currentassets and liabilities concerned at the time of closure of the account. However,since there was no substantial novenent in exchange rates at the end of 1990, ttrerates of exchange used at 11 December 1990 were those in force on that date. (d) Except for land and buildings, the assets of the OCP, including expendable and non- expendable stocks and equipnent, are not reflected in the WHo Consolidated Statementof Assets and Liabilities. Instead, such itens are charged in full to the OCp trustfund as expenditure in the year of purchase and recorded in the project and officeinventories of the Programme. (e) Ttre value of the headquarters land and buildings owned by the OCp at ouagadougou, shown in the t{HO consolidated statenent of Assets and Liabirities, enounted toS550 347 at 31 Decenber 1!!0. This value is equal to the cosr at the tine ofconstruction. No adjustment has been nade for depreciation, appreciation orfluctuation in currencies. as (f) Accounts receivable and payabte by WHO are Eaintained within the organi.zation's single set of accounts which i.s not segregated by source of funds. As a consequence, no OCP receivable and payable accounts are included in the balance of the trustfund. { 1 (g) (h) JPC72.6 page 5 Annex II Contributions in kind received by the OCP are noted in the accounts at the value stated by the donor. Income and expenditure items in currencies other than US dollars have been recordedat the UN operationaL rates of exchange prevailing at the date of each transactj-on. Exchange differences are incruded in niscerLaneous income. Funds drawn from the World Bank are taken into the OCP account when the WHO requests cash to be remitted. Other OCP incone, including interest earned, i.s recorded on acash basis (i.e. when actually received). OCP expenditure is recorded on an accrual basis (i.e. obligations for the curyentfinancial period are charged to expenditure whether paid or unpaid). a (r) (i) (k) 2. Budget situation The year 1990 concluded with a budgetary surplus of US $337 640 in spite of anunfavourable exchange rate between the US dollar and the CFA franc: the budget had beenprepared at the rate of cFA 338 to the US do}Iar, and inplenented at an actual averagerate of cFA 274. Ttre downward trend of the US dollar entailed over-expenditures onsalaries and allowances under virtually all progra.mes of activity. Explanations areprovided as follows: 2.7 Savings Vector Control progra^mne activity (VCU) While over-expendltures were incurred nainly under salaries and alrowances, andinsecticides. savings were nade especially on aerial operations, duty travel, andcontractual services, resulting in an overall unobrigated barance ofUS $126 238 under VCU. iasis Chenotheraov (ocr) t t I'Jhile over-expenditures were incurred mainly under consultants/temporary advisers,savings were nade under duty travel and under research cont,racts, resulting in anoverall unobrigated barance of US $284 059. Savings under research contracts weredue nainly to the fact that, as in 1!8p, one "orpr-iy continued to fund preclinicarwork at no cost to the Prograrnme arthough it had beln budgeted for, and to deferralof other preclinical work until 1991. Other savinFs Savings totalling US $85 938 were made in the following progrn.me activities: (a) Office of Programnre Director - US $27 442.Savings were uainly on teEporary staff, duty travel, supplies and naintenance ofequipnent, whlch nore than offset over-expenditure under salaries and allowances. (b) Bi,ostatistics and Infornarion Systems - US $33 130.Savings were-nainly on duty travel, supplies and naintenance of equipment, whichnore than offset over-expenditure under salaries and allowances, contractualservices and data processing equipnent. JPCLZ.6 page 5 Annex II (c) Socioeconomic Developnenr - US $25 356.Savings were on salaries and allowances, consultants and duty travel, which more than offset over-expenditure under contractual services. 2.2 Over-expenditures Epidemiological evaluation l'lhile savings were nade, especially on duty travel, the decision to intensifyivernectin distribution entailed added expenditures on consultants, supplies and traintenance of equipEent, as well as on National Teans, resulting in total over- expenditure of US $53 558. Adninistrative and support services A net over-expenditure of US S98 345 was nainly due to increases in salaries and allowances expressed in US doIlars. 3. Stocks of Larvicides and Fuel The stocktaklng of the larvicides and aviation fuel in the Progranne area showed aloss of US $190 15t for 1990 due to theft, pilferage and operationai losses. Ttrese losses represent 4.tF of the total value of lanricides ana aviation fuel expended during 1990, which is less than the pernissible tolerance of 5l to 7l approved by JpC.7 in Accra in1986. rn terms of all stocks, these rosses reprlsent approxinateLy 2.21 of the total varue of fuer and larvicides availabre to field stations in 1990. 4. Contributions in Kind During 1990, WttO recorded under the Voluntary Fund for Hea1th Promotion, in theSpecial Account for Miscellaneous Designated Contrlbutions (Other), the receipt of690 000 iver:oectj.n tablets which had been donated to the Progranne by the pharmaceutical cotrpany Merck, Sharp & Dohne, and valued by then at US $3 each, total US $2 OZO OOO. out of the 690 000 tablets recorded, 520 OOO were received in 1p!O and 17O OOO in late1989, the latter havtng been referred to in the Er<planatory Notes to the certified statenents-of account for the year ended l1 Decenber f989. 1r ,t t ll I I