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Contents page Director-General’s report ............................................................................................................................ 3 Audited financial statements, notes to the accounts and schedules .............................................................................................................................................10 Certification of financial statements .....................................................................................................11 Letter of transmittal ..............................................................................................................................12 Opinion of the External Auditor ...........................................................................................................13 Statements Consolidated statement of income and expenditure and changes in fund balances: all sources of funds ............................ Statement I......................................14 Other WHO funds .................................................................................. Statement I.1...................................16 UN Trust funds – WHO programme activities ...................................... Statement I.2...................................18 Trust funds – WHO programme activities ............................................ Statement I.3...................................20 Other trust funds and associated entities – Non-WHO programme activities .......................................................................... Statement I.4...................................22 Transfers between funds ........................................................................ Statement I, Annex 1 ......................24 Eliminations ........................................................................................... Statement I, Annex 2 ......................25 Statement of assets, liabilities, and fund balances ................................. Statement II ....................................26 Statement of cash flow .......................................................................... Statement III ...................................27 Statement of appropriations ................................................................... Statement IV...................................28 Notes to the accounts ...................................................................................................................................29 Schedules Cash, deposits and securities ................................................................. Schedule 1 ......................................44 Cash, deposits and securities by sources of funds ................................. Schedule 2 ......................................45 Income and expenditure for the effective working regular budget ..................................................................................... Schedule 3 ......................................46 Assessed contributions – 2006-2007 and prior financial periods . ................................................................................ Schedule 4.a....................................47 Assessed contributions – Outstanding unpaid contributions repayment plans............................................................. Schedule 4.b ...................................52 Assessed contributions – Received in advance ..................................... Schedule 4.c....................................53
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Working Capital Fund & internal borrowing .........................................Schedule 5...................................... 55 Miscellaneous Income Account ............................................................Schedule 6...................................... 56 All extrabudgetary funds Summary of 2006-2007 income and expenditure ..................................Schedule 7...................................... 57 Special Account for Servicing Costs .....................................................Schedule 8...................................... 58 Real Estate Fund ....................................................................................Schedule 9...................................... 59 Terminal Payments Account ..................................................................Schedule 10.................................... 60 Supply services funds (trust funds) ........................................................Schedule 11.................................... 61 Staff Development Fund.........................................................................Schedule 12.................................... 62 Financial implementation by category of expenditure and sources of funds ...........................................................................Schedule 13.................................... 63 Glossary Glossary of budgetary and financial terms .................................................................................................... 64
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Director-General’s report I. Introduction I am pleased to present the Financial Report of WHO for the period 2006–2007. The Report is submitted in accordance with Article 34 of the Constitution and WHO’s Financial Regulations. The Financial Report for the biennium 2006–2007 has been prepared in accordance with United Nations System Accounting Standards and WHO’s Financial Regulations and Financial Rules. It covers the regular budget as adopted by the Health Assembly1/ and expenditure financed from other sources, which was considered by the Executive Board at its 120th session.2/ The Financial Report of WHO aims to provide transparency and accessibility of financial information for the Organization. The Financial Report is an important element in the overall framework of accountability and financial integrity of the Organization. It enables Member States and other partners and collaborators to see how their funds have been used. The assets and liabilities of the Organization are also detailed, and the cash flow is analysed, to enable readers to understand the financial status of the Organization. The statutory components of the Financial Report have been audited by the Organization’s External Auditor, whose opinion is included.
II. Financial highlights Financial highlights (US$ millions)
2006–2007
2004–2005
% Increase
Budget Regular budget: 2006–2007 effective working budget was appropriated by resolution WHA58.4 2006–2007 Voluntary contributions, as considered by the Executive Board a/ Total budget 915 2 755 3 670 880 1 944 2 824 4% 42% 30%
Income Regular budget Voluntary contributions Voluntary Fund for Health Promotion WHO trust funds and United Nations programmes Total income WHO programme activities Non-WHO programme activities b/ Total income 893 2 841 523 4 257 1 171 5 428 899 1 911 288 3 098 1 011 4 109 860 1 723 401 2 984 540 3 524 871 1 623 235 2 729 628 3 357 4% 65% 30% 43% 117% 54% 3% 18% 23% 14% 61% 22%
Expenditure Regular budget Voluntary contributions Voluntary Fund for Health Promotion WHO trust funds and United Nations programmes Total expenditure WHO programme activities Non-WHO programme activities b/ Total expenditure a/ b/
See document EB119/2006–EB120/2007/REC/2, summary record of the second meeting of the 120th session of the Board, section 2. Non-WHO programme activities include trust funds of various programmes and entities, such as the Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS); the International Agency for Research on Cancer (IARC); the Global Fund to Fight AIDS, Tuberculosis and Malaria; the International Computing Centre; and the Staff Health Insurance Fund.
1/
Resolution WHA58.4. See document EB119/2006–EB120/2007/REC/2, summary record of the second meeting of the 120th session of the Board, section 2.
2/
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The increase in income from voluntary contributions reflects the continually changing pattern of funding the Organization. In 2006–2007 the regular budget represented only 21% of the actual total income in 2006–2007, compared with 29% in 2004–2005. Total income in 2006–2007 for WHO programme activities was US$ 4257 million, which represented a 43% increase on US$ 2984 million income for 2004–2005. This higher level of income was the result of both an increase in contributions and the change in income recognition policy, following which income in 2006–2007 was recognized at signature of donor agreements rather than at cash receipt. This accounting policy change is consistent with the new International Public Sector Accounting Standards (IPSAS) being progressively implemented across the United Nations system. The higher level of income enabled WHO to meet the significantly increased programmatic activity that was planned for the biennium 2006–2007. The trend of rising income and expenditure/implementation highlighted in Figure 1 below is welcome in view of the increasing demands being made on the Organization.
Expenditure of US$ 3098 million was incurred in achieving the expected results for the biennium 2006–2007 against a total budget for WHO programme activities of US$ 3670 million, resulting in an overall financial implementation rate of 84%. Within this figure, the implementation rate for the regular budget was 98%. This is the highest rate achievable given the need to withhold some of the budget as a contingency in view of the possibility of non-payment of assessed contributions by some Member States, and in respect of which it was not prudent to increase borrowing. For voluntary contributions the rate achieved was 80%. The continuing growth in funding for the Organization is most encouraging, however the rate of implementation is lower than in previous bienniums. This is partially the result of a further accounting policy change, also part of the implementation of the new accounting standards, which changes the timing at which expenditure is recorded, moving it to the point at which goods and services are delivered, as opposed to when commitments are entered.
III. Financing the budget Total programme income increased by 43%. Voluntary contributions increased by 58%, which helped to offset the almost static regular budget. This has fundamentally shifted the overall funding structure of the Organization (see Figure 2 below).
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During the biennium, the evolution of voluntary contribution income was not always consistent. Timing of receipt of large contributions and significant shifts in income from certain United Nations trust funds can cause availability of resources to be uneven in terms of both timing and alignment with the approved programme budget. A full analysis of extrabudgetary resources for 2006–2007 is contained in the Annex to the Audited Financial Report for the biennium 2006–2007.1/ Member States continue to be an important source of voluntary contributions, which represented approximately 52% of all voluntary contributions income (or US$ 1422 million) during the biennium 2006–2007. However, this figure fell in percentage terms from approximately 63% (or US$ 1268 million) in 2004–2005, as illustrated in Figures 3 and 4 below. In United States dollar terms Member States’ contributions which increased compared with 2004–2005 but declined in relative terms compared with contributions from United Nations and intergovernmental organizations, under which the majority of the Organization’s partnership funds are recorded. These amounts were US$ 696 million in 2006–2007 and US$ 317 million in 2004–2005.
1/
Document A61/20 Add.1.
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Combining regular budget and voluntary contributions, Member States provided 54% of the total income in 2006–2007, compared with 71% in 2004–2005. This again highlights the shifting of the Organization’s donor base. Total contributions from Member States, including both regular budget assessments and voluntary contributions for the biennium 2006–2007 and for the biennium 2004–2005 are shown in Figures 5 and 6 below. These charts indicate that the Organization continues to rely heavily on a relatively small number of Member States as a major source of financing of the budget.
The regular budget is financed by assessed contributions and Miscellaneous Income. Net assessments in 2006–2007 were US$ 902 million, of which US$ 853 million were collected during the biennium, a collection rate of 95%, which is consistent with recent bienniums. In order to achieve the regular budget implementation rate of 98%, the Working Capital Fund of US$ 31 million was fully drawn down and was supplemented by US$ 1.8 million of internal borrowing. Although the overall implementation rate of 98% is an excellent achievement, it is a
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concern that in 2006–2007 US$ 49 million, or 5% of assessed contributions, were not paid. Total unpaid assessed contributions, including amounts due for previous financial periods, are US$ 140 million. Within this figure, long-term arrears stand at US$ 91 million. Discussions are continuing with those Member States with long-term arrears so that repayment plans may be put forward for consideration by the Health Assembly. I am pleased to note that a number of such repayment plans were approved during the biennium, and that as a result some Member States with longstanding arrears have recently resumed payments. I take this opportunity to encourage those Member States which experience difficulty in paying their arrears to discuss payment arrangements with the Secretariat so that their proposals may be submitted to the Health Assembly for its consideration. Miscellaneous Income is used to finance the regular budget by reducing the amount payable on assessed contributions. For 2006–2007 income under this account was US$ 53 million, of which, US$ 42 million were budgeted in order to finance in part the regular budget, to meet the requirements of the adjustment mechanism and the financial incentive scheme, and to set up costs for the global management system.
IV. Expenditure During 2006–2007, country and regional offices accounted for 62% of expenditure, and headquarters for 38%. This is unchanged from the previous biennium. Figure 7 below shows, as a percentage, expenditure from all sources of funds by office, i.e. headquarters and each regional office (including country offices) for 2006–2007 and for 2004–2005.
V. Liquidity management The financial stability of the Organization depends not only upon timely receipt of income but also on effective management of liquidity and foreign-exchange risk, and on appropriate investment and foreignexchange policies. In this regard, I receive advice from an expert advisory committee that regularly reviews performance and makes recommendations on the strategy to adopt in the light of market conditions, and given the paramount importance of preserving capital. Investment management operations Total cash and investments for the Organization at 31 December 2007 were US$ 2587 million, the investment of which is summarized in Schedule 1 of the Financial Report. The investments are primarily short term, being held in respect of programmes financed under the regular budget, and other resources, for which cash has yet to be expended. The interest earned on investments amounted to US$ 208 million. Of the total investment amount noted above, US$ 1135 million is related to non-WHO programme activities, of which US$ 443 million are held the Staff Health Insurance Fund and the Terminal Payments Account, and a further amount of US$ 692 million is invested on behalf of other non-WHO entities.
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Foreign currency hedging operations The value of certain non-United States dollar regular budget expenditures has been protected from the impact of the declining value of the dollar during the biennium. Protection is effected by entering forward currency and option contracts. A total of US$ 8 million resulting from the cash flow of these operations was credited against regular-budget expenditures in 2006–2007. However, the weaker dollar had a significant effect on its purchasing power for the biennium 2006–2007, especially against payments made in relation to the euro, Swiss franc and Danish kroner. Compared with 2004–2005, it is estimated that the United States dollar cost of non-dollar denominated expenditures was approximately US$ 50 million higher in 2006–2007. VI. Conclusion I have noted the comments made by the External Auditor in his long-form report to the Health Assembly. All the matters raised will be considered promptly by the Secretariat and appropriate action will be taken. It is noted that financial resources received through partnerships and other entities have increased considerably. This change, coupled with the continuing growth in WHO’s financial resources managed by the Organization, has created increased complexity. The introduction of new financial managerial and accounting systems during 2008, combined with the continuing modernization of the Organization’s accounting policies and procedures, and of its financial reporting, will further improve the overall quality of financial reporting.
Dr Margaret Chan Director-General
Geneva, 19 March 2008
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Audited financial statements, notes to the accounts and schedules 2006-2007
The Financial Report presents the overall financial position of the Organization as at 31 December 2007. The audited statements, notes and supporting schedules have been prepared in compliance with the requirements of the Financial Regulations, Financial Rules and the United Nations System Accounting Standards. The notes to the accounts are an integral part of the financial statements; the schedules provide further details and explanations in support of individual funds and special accounts administered by the Organization. Where appropriate, comparative figures are provided in respect of the previous biennium.
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Certification of financial statements
The attached statements, numbered I to IV, notes to the accounts and schedules 1 to 13, are approved.
Nicholas R. Jeffreys Comptroller
Dr Margaret Chan Director-General
19 March 2008
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28 March, 2008
LETTER OF TRANSMITTAL
The President of the World Health Assembly World Health Organization CH-1211 Geneva 27 Switzerland
Dear Sir/Madam,
I have the honour to present to the Sixty-First World Health Assembly my Report and Opinion on the Financial Statements of the World Health Organization for the biennium ended 31 December 2007. 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
Vinod Rai Comptroller and Auditor-General of India External Auditor
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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 13 and the supporting Notes of the World Health Organization for the financial period ended 31 December 2007. 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, the specialized agencies and the International Atomic Energy Agency and conforming with International Standards on Auditing. 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, and as considered by the auditor to be necessary in the circumstances, 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 2007 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 Regulation XIV of the Financial Regulations, I have also issued a long-form report on my audit of the World Health Organization’s financial statements.
Vinod Rai Comptroller and Auditor-General of India External Auditor New Delhi, India 28 March, 2008
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Statement I Consolidated statement of income and expenditure and changes in fund balances: all sources of funds Financial period 2006-2007 (in thousands of US dollars) WHO programme activities (Statements I.2, I.3)
Reference
Voluntary Fund Regular for Health a/ Budget Promotion (Schedules 4,5) (A61/20 Add.1)
Other WHO funds (Statement I.1)
Non-WHO programme activities (Statement I.4)
Income: Assessed contributions: For the effective working budget (2006-2007) Adjustment mechanism (WHA58.4) Financial incentive scheme 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 Income from services rendered Interest income: - interest -shared exchange differential Other Total income Expenditure: WHO programme activities Non-WHO programme activities Total expenditure Excess (shortfall) of income over expenditure Provision for delays in the collection of assessed contributions Payment of assessed contributions of prior periods Savings on prior periods' unliquidated obligations Increase in Capital Assets Transfers between funds Adjustments to fund balances Total changes in fund balances Fund balances - 1 January 2006 Fund balances - 31 December 2007
Note 2.5
893 115 (8 655) (4 051) 880 409
9 114
6 9 120
2 760 875
312 949 1 158 152
Note 5 Note 13 Note 6
9 093 193 166 40 174 5 240 51 130 307 923
47 23 394 5 425 650 342 465 77 027 189 683 1 424 862
79 819
880 409 Notes 2.7, 9
2 840 694
898 626 898 626 (18 217)
1 911 442 1 911 442 929 252
280 340 44 146 324 486 (16 563)
332 797 1 009 733 332 797 9 668 1 009 733 415 129
Note 10
(49 499) 44 034
11 100 6 920 1 222 (9 702) 920 772 553 847 1 474 619 (41 906) (47) (40 496) 179 726 139 230
8 389 5 778 (811) 23 024 79 566 102 590
11 037
Annex 1
34 906 11 224 (13 033) (1 809)
(423) 425 743 569 447 995 190
Statement III Statement II Statement II
The accompanying notes and schedules are an integral part of the financial statements.
a/
Includes Working Capital Fund.
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Statement I (continued)
Members' equity in capital assets
Sub-totals
Eliminations (Statement I, Annex 2)
Totals 2004-2005 2006-2007
Income: 902 229 (8 655) (4 051) 6 889 529 902 229 (8 655) (4 051) 6 889 529 863 101 (12 364) (1 574) 849 163 Assessed contributions: For the effective working budget (2006-2007) Adjustment mechanism (WHA58.4) Financial incentive scheme New and formerly inactive Members Total assessed contributions Voluntary contributions: 3 073 824 1 158 152 (34 340) 3 039 484 1 158 152 1 935 864 535 951 WHO programme activities Non-WHO programme activities Other income: Revenue-producing activities Funds under inter-organization arrangements Income from services rendered Interest income: - interest - shared exchange differential Other Total income Expenditure: 3 423 205 1 053 879 4 477 084 1 319 269 (324 940) (43 013) (367 953) 3 098 265 1 010 866 4 109 131 1 319 269 2 728 670 627 842 3 356 512 WHO programme activities Non-WHO programme activities
9 140 23 394 193 166 202 445 5 240 241 463 5 796 353
(193 166)
(140 447) (367 953)
9 140 23 394 202 445 5 240 101 016 5 428 400
8 209 29 306 68 053 320 97 678 3 524 544
Total expenditure Excess (shortfall) of income 168 032 over expenditure (52 981) 44 948 26 846 4 987 6 031 Provision for delays in the collection of assessed contributions Payment of assessed contributions of prior periods Savings on prior periods' unliquidated obligations Increase in Capital Assets Transfers between funds Adjustments to fund balances
3 681
(49 499) 55 134 26 346 3 681 (10 983)
(49 499) 55 134 26 346 3 681 (10 983) 1 343 948 1 441 667 2 785 615
3 681 72 114 75 795
1 343 948 1 441 667 2 785 615
197 863 Total changes in fund balances 1 243 804 Fund balances - 1 January 2006 1 441 667 Fund balances - 31 December 2007
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Statement I.1 Other WHO funds Financial period 2006-2007 (in thousands of US dollars)
Reference
Miscellaneous income (Schedule 6, Note 8)
Real Estate Fund (Schedule 9)
Security Fund (Note 31)
Other funds (Note 27)
Revolving Sales Fund (Note 11)
Income: Assessed contributions: For the effective working budget (2006-2007) New and formerly inactive Members Total assessed contributions Other income: Revenue-producing activities Income from services rendered Interest income: - interest - shared exchange differential Other Total income Expenditure: WHO programme activities Non-WHO programme activities Total expenditure Excess (shortfall) of income over expenditure Payment of assessed contributions of prior periods Savings on prior periods' unliquidated obligations Transfers between funds Adjustment to fund balance Total changes in fund balances Fund balances - 1 January 2006 Fund balances - 31 December 2007
Note 2.5
6 6
Note 5 Note 6
643 25 681 5 240 4 348 35 275 461 7 304 8 408 235 14 702 14 937
750 265 12 220 13 235
7 700
7 700
Notes 2.7,9
15 005 5 375 5 375 15 005
7 542 1 176 8 718
6 764 6 764
35 275 Note 10 Annex 1
3 033
(68)
4 517
936
11 100 6 920 (41 906) (47) 11 389 2 432 13 821 3 033 1 142 4 175 (68) 229 161 4 470 5 956 10 426 936 4 651 5 587
Statement I Statement II Statement II
The accompanying notes and schedules are an integral part of the financial statements.
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Statement I.1 (continued)
Information Technology Fund (Note 32)
Special Account for Servicing Costs (Schedule 8)
Tax Terminal Equalization Payments Fund Account (Note 3) (Schedule 10)
Totals 2006-2007 2004-2005
Income: Assessed contributions: 9 114 9 114 9 114 6 9 120 4 626 4 626 For the effective working budget (2006-2007) New and formerly inactive Members Total assessed contributions Other income: Revenue-producing activities Income from services rendered Interest income: - interest - shared exchange differential Other Total income Expenditure: 24 483 24 483 226 546 11 334 226 546 11 334 26 261 26 261 280 340 44 146 324 486 237 100 32 385 269 485 WHO programme activities Non-WHO programme activities Total expenditure Excess (shortfall) of income over expenditure Payment of assessed contributions of prior periods Savings on prior periods' unliquidated obligations Transfers between funds Adjustment to fund balance
1 839 12 556 14 395
169 759 6 366
23 407 5 327
9 093 193 166 40 174 5 240 51 130 307 923
8 160 164 818 15 972 320 56 790 250 686
176 125
9 114
28 734
(10 088)
(50 421)
(2 220)
2 473
(16 563) 11 100 6 920 (41 906) (47)
(18 799) 12 204 5 992 (35 574)
(10 088) 19 346 9 258
(50 421) 92 267 41 846
(2 220) (2 706) (4 926)
2 473 56 409 58 882
(40 496) 179 726 139 230
(36 177) Total changes in fund balances 215 903 Fund balances - 1 January 2006 179 726 Fund balances - 31 December 2007
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Statement I.2 UN trust funds – WHO programme activities Financial period 2006-2007 (in thousands of US dollars)
Technical cooperation UN Development Programme UN Population Fund UN Environment Programme UN Drug Control Programme
Reference
Income: Other income: Funds under inter-organization arrangements Interest income Other Total income Expenditure: WHO programme activities Total expenditure Excess (shortfall) of income over expenditure Savings on prior periods' unliquidated obligations Transfers between funds Adjustment to fund balance Total changes in fund balances Fund balances - 1 January 2006 Fund balances - 31 December 2007
Note 2.5
Note 13
264
5 393 9
544
264 Notes 2.7,9
5 402
544
837 837 (573) 15 Annex 1
5 774 5 774 (372) 348 20
688 688 (144) 2
1 1 (1) 17
Statement I
(558) 2 020 1 462
(4) (2 989) (2 993)
(142) 20 (122)
16 20 36
Statement II
Statement II
The accompanying notes and schedules are an integral part of the financial statements.
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Statement I.2 (continued)
Technical cooperation UN Children's Fund
Supply services Other UN organizations Totals 2006-2007 2004-2005
Income: Other income: 14 766 2 427 23 394 9 14 766 2 427 23 403 29 306 32 (208) 29 130 Funds under inter-organization arrangements Interest income Other Total income Expenditure: 11 127 11 127 3 639 29 3 669 3 669 (1 242) 22 096 22 096 1 307 411 20 2 3 668 834 4 502 (1 240) 1 717 477 2 1 740 1 622 3 362 26 923 26 923 2 207 6 335 (1 444) 5 500 WHO programme activities Total expenditure Excess (shortfall) of income over expenditure Savings on prior periods' unliquidated obligations Transfers between funds Adjustment to fund balance
12 598 Total changes in fund balances (10 976) Fund balances - 1 January 2006 1 622 Fund balances - 31 December 2007
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Statement I.3 Trust funds – WHO programme activities Financial period 2006-2007 (in thousands of US dollars)
Technical cooperation Onchocerciasis Control Reference Programme a/
African Programme for Onchocerciasis Control a/
Sasakawa Health Trust Fund a/
TDR
a/b/
Income: Voluntary contributions: WHO programme activities Other income: Revenue-producing activities Interest income Other Total income Expenditure: WHO programme activities Total expenditure Excess (shortfall) of income over expenditure Savings on prior periods' unliquidated obligations Transfers between funds Adjustment to fund balance Total changes in fund balances Fund balances - 1 January 2006 Fund balances - 31 December 2007
Note 2.5
24 967
7 392
68 196
Note 5
31 115 3 118 979 381 26 358 8 230 838 2 339 257 70 792
Notes 2.7,9
24 729 24 729 118 146 Annex 1
6 700 6 700 1 530 354
73 712 73 712 (2 920) 3 313 200
1 629 3 635
(2 006) (1 742) 2 268 526 5 264 3 823 9 087 1 884 7 010 8 894
Statement I
593 18 796 19 389
Statement II
Statement II
The accompanying notes and schedules are an integral part of the financial statements.
a/
See Annex (doc A61/20 Add.1) for detailed financial statements. TDR: Trust Fund for the UNICEF/UNDP/World Bank/WHO Special Programme for Research and Training in Tropical Diseases. c/ HRP: Trust Fund for the UNDP/UNFPA/WHO/World Bank Special Programme of Research, Development and Research Training in Human Reproduction. b/
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Statement I.3 (continued)
Technical cooperation Associate Professional HRP a/c/ Officers Other technical cooperation funds
Supply services National health services and institutions
Totals 2006-2007 2004-2005
Income: Voluntary contributions: 41 369 2 456 41 983 126 586 312 949 269 228 WHO programme activities Other income: 16 1 094 42 479 52 2 508 8 41 991 126 586 47 5 425 641 319 062 49 2 203 (526) 270 954 Revenue-producing activities Interest income Other Total income Expenditure: 31 318 31 318 11 161 530 640 (813) 12 331 4 632 16 963 (1 941) 3 224 1 283 1 315 30 099 31 414 3 580 8 092 11 672 6 924 3 636 3 636 (1 128) 47 600 47 600 (5 609) 123 006 123 006 3 580 310 701 310 701 8 361 7 978 5 758 (813) 21 284 77 944 99 228 273 689 273 689 (2 735) 7 840 2 841 WHO programme activities Total expenditure Excess (shortfall) of income over expenditure Savings on prior periods' unliquidated obligations Transfers between funds Adjustment to fund balance 7 946 Total changes in fund balances 69 998 Fund balances - 1 January 2006 77 944 Fund balances - 31 December 2007
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Statement I.4 Other trust funds and associated entities - Non-WHO programme activities Financial period 2006-2007 (in thousands of US dollars)
Reference
Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS) (Note 14)
International Drug Purchase Facility UNITAID (Note 14)
International Agency for Research on Cancer (Note 14)
International Computing Centre (Note 14)
Staff Health Insurance (Notes 14, 15)
Income: Voluntary contributions: Non-WHO programme activities Other income: Interest income Other Total income Expenditure: Non-WHO programme activities Total expenditure Excess (shortfall) of income over expenditure Savings on prior periods' unliquidated obligations Transfers between funds Adjustment to fund balance Total changes in fund balances Fund balances - 1 January 2006 Fund balances - 31 December 2007
Note 2.5
522 587
368 889
66 922
21 034 473 544 094 Notes 2.7, 9
1 409 370 298
2 217 69 139
501 61 554 62 055
51 081 127 656 178 737
440 967 440 967 103 127 5 645 (423) Statement I
148 202 148 202 222 096
63 182 63 182 5 957 239
64 603 64 603 (2 548) 404
105 827 105 827 72 910
108 349 199 152 307 501
222 096
6 196 23 946
(2 144) 10 517 8 373
72 910 310 700 383 610
Statement II Statement II
222 096
30 142
The accompanying notes and schedules are an integral part of the financial statements.
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Statement I.4 (continued)
The Global Fund to fight AIDS, Tuberculosis and Malaria (Note 14)
Other trust funds (Note 16)
Foundations (Note 17)
Totals 2006-2007 2004-2005
Income: Voluntary contributions: 195 000 4 718 36 1 158 152 535 951 Non-WHO programme activities Other income: 419 195 000 5 137 366 402 77 027 189 683 1 424 862 25 200 175 358 736 509 Interest income Other Total income Expenditure: 182 594 182 594 12 406 4 749 4 214 4 214 923 144 144 258 1 009 733 1 009 733 415 129 11 037 (423) 17 155 15 457 32 612 923 6 233 7 156 258 3 442 3 700 425 743 569 447 995 190 622 796 622 796 113 713 6 679 914 531 121 837 447 610 569 447 Non-WHO programme activities Total expenditure Excess (shortfall) of income over expenditure Savings on prior periods' unliquidated obligations Transfers between funds Adjustment to fund balance Total changes in fund balances Fund balances - 1 January 2006 Fund balances - 31 December 2007
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Statement I, Annex 1 Transfers between funds a/ (in thousands of US dollars)
Funds
Appropriated for the effective working budget, 2006-2007 (Financial Regulation 5.1 and Resolutions WHA58.4 & WHA60.8)
Other programme transfers
Total
Regular budget and Working Capital Fund Miscellaneous Income Trust Funds - Global Management System Voluntary Fund for Health Promotion TDR b/ HRP c/ OCP d/ UNFPA e/ Other Trust Funds Net transfers
(34 906) 41 906
(34 906) 41 906
(7 000)
(7 000)
(76)
640
20
(2 006)
200 (200)
(1 222) (200) (640)
(640) 2 006 (20) 76 -
2 006 (20) 76 -
a/
These transfers between funds were made to implement decisions by the Health Assembly, and other programme transfers are in accordance with established accounting practices. Figures within brackets denote the receiving fund and figures without brackets denote the originating fund. b/ Trust Fund for the UNICEF/UNDP/World Bank/WHO Special Programme for Research and Training in Tropical Diseases. c/ Trust Fund for the UNDP/UNFPA/WHO/World Bank Special Programme of Research, Development and Research Training in Human Reproduction. d/ Onchocerciasis Control Programme. e/ United Nations Population Fund.
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Statement I, Annex 2 Eliminations (in thousands of US dollars) Originating Fund Regular Budget Expenditure
Receiving Fund 1/ 1/ 2/ 1/ 1/
Income
1 797 150 7 304 3 257 9 850
TDR a/ African Programme for Onchocersiasis Control Real Estate Fund Security Fund Information Technology Fund HRP b/ Special Account for Servicing Costs TDR a/ Special Account for Servicing Costs Special Account for Servicing Costs Special Account for Servicing Costs
1 797 150 7 304 3 257 9 850 1 995 2 763 1 307 300 1 318 4 210
3/ 3/ 5/ 5/ 5/
United Nations Population Fund TDR a/ African Programme for Onchocerciasis Control
1 995 2 763 1 307 300
1/
3/
1/
4/
1/ 1/
3/ 4/
HRP b/ The Global Fund to fight AIDS, Tuberculosis and Malaria International Drug Purchase Facility - UNITAID UNAIDS
1 318 4 210
1/
4/
2/
4/
512 30 29 061 4 176
2/
Special Account for Servicing Costs HRP b/ Voluntary Fund for Health Promotion Special Account for Servicing Costs Special Account for Servicing Costs Terminal Payments Account Staff Health Insurance Staff Development Security Fund Information Technology Fund
512 30 29 061 4 176 603 23 407 93 664 12 220 11 445 2 706
4/
1/ 1/ 1/
3/ 3/ 4/
International Computing Centre All funds
603 23 407 93 664 12 220
2/
4/
c/ c/ c/
4/ 5/ 5/
Special Account for Servicing Costs
11 445 2 706
1/ 1/
5/ 5/
Voluntary Fund for Health Promotion and other funds - Programme support costs Total elimination of expenditures 155 878 367 953 1/
Special Account for Servicing Costs Total elimination of income
155 878 367 953
4/
Representing: 1. WHO programme activities c/ 2. Non-WHO programme activities Total elimination of expenditures c/
Representing: 324 940 43 013 367 953 3. WHO programme activities 4. Income from services rendered 5. Other Total elimination of income 34 340 193 166 140 447 367 953
Trust Fund for the UNICEF/UNDP/World Bank/WHO Special Programme for Research and Training in Tropical Diseases. Trust Fund for the UNDP/UNFPA/WHO/World Bank Special Programme of Research, Development and Research Training in Human Reproduction. All funds expenditure amounts to $ 129 292 076. This amount has been apportioned across items, WHO programme activities and non-WHO programme activities in the ratio of their respective expenditures. b/ c/
a/
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Statement II Statement of assets, liabilities and fund balances as at 31 December 2007 (in thousands of US dollars) 2005 (re-stated, note 33)
Reference
2007
Assets Cash at banks, in transit and on hand Deposits and securities Accounts receivable Assessed contributions receivable from Member States Less : Provision for delays in the collection of assessed contributions Net assessed contributions Voluntary Fund for Health Promotion Trust funds - WHO programme activities Trust funds - Non-WHO programme activities Interest receivable Sundry debtors Total accounts receivable Advances and prepaid expenses Construction in progress Capital assets Total assets
Schedule 1, Note 18 Schedule 1 Note 19 Schedule 4.a
102 979 2 483 722
96 186 1 701 251
Note 19 Note 19 Note 19 Note 19 Note 19
139 924 (139 924) 423 006 809 47 540 24 091 31 156 526 602
145 559 (145 559) -
17 718 39 690 57 408 40 888 26 510 76 307 1 998 550
Note 20 Note 22 Note 23
46 797 128 406 3 288 506
Liabilities and fund balances Liabilities Members' contributions received in advance Accounts payable Loans repayable Total liabilities Fund Balances Regular budget and Working Capital Fund Voluntary Fund for Health Promotion Other WHO funds Trust funds - WHO programme activities Trust funds - Non-WHO programme activities Total fund balances Members' equity in capital assets Total liabilities and fund balances
Note 25 Note 26 Note 22
59 299 395 175 48 417 502 891
50 328 476 726 29 829 556 883
Statement I
(1 809) 1 474 619 139 230 102 590 995 190 2 709 820 Statement I
(13 033) 553 847 179 726 79 566 569 447 1 369 553 72 114 1 998 550
75 795 3 288 506
The accompanying notes and schedules are an integral part of the financial statements.
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Statement III Statement of cash flow Financial period 2006-2007 (in thousands of US dollars)
2006-2007
2004-2005 (re-stated, note 33)
Cash flows from operating activities Total changes in fund balances (Statement I) (Increase)/decrease in accounts receivable (Increase)/decrease in advances and prepaid expenses Increase/(decrease) in contributions received in advance Increase/(decrease) in accounts payable Less : Interest income included in fund balances Net cash flows from operating activities Cash flows from investing and financing activities (Increase)/decrease in deposits and securities Increase/(decrease) in loans payable Plus : Interest income included in fund balances Less: (Increase)/decrease in interest receivable Net cash flows from investing and financing activities Cash flows from other sources (Increase)/decrease in land and buildings (Increase)/decrease in construction in progress Net cash flows from other sources Net increase/(decrease) in cash Cash as at 1 January 2006 and 2004 Cash as at 31 December 2007 and 2005
1 343 948 (462 822) (5 909) 8 971 (81 551) (207 685) 594 952
197 863 (1 401) (21 546) 3 642 175 813 (68 373) 285 998
(782 471) 18 588 207 685 (6 373) (562 571)
(358 721) 26 997 68 373 (12 789) (276 140)
(52 098) 26 510 (25 588) 6 793 96 186 102 979
(9 180) (23 620) (32 800) (22 942) 119 128 96 186
The accompanying notes and schedules are an integral part of the financial statements.
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Statement IV Statement of appropriations Financial period 2006-2007 (in thousands of US dollars)
Appropriation section 1. Essential health interventions 2. Health policies, systems and products 3. Determinants of health 4. Enabling programme delivery 5. WHO's core presence in countries 6. Other
Amounts approved by resolution WHA58.4
Transfers between sections made by the Director-General (Note 34)
Transfers between sections as % of approved appropriations
Effective appropriations
Expenditure (Note 34)
Unobligated balance of appropriations (Note 34)
238 343 164 913 96 156 251 770 128 624 35 509
(20 226) 6 990 (2 517) 6 113 9 516 124
(8.49) 4.24 (2.62) 2.43 7.40 0.35
218 117 171 903 93 639 257 883 138 140 35 633
214 316 169 049 90 523 254 409 135 051 35 278
3 801 2 854 3 116 3 474 3 089 355
Effective working budget
915 315
915 315
898 626
16 689
7. Transfer to Tax Equalization Fund Total
80 000 995 315
80 000 995 315
80 000 978 626 16 689
The accompanying notes and schedules are an integral part of the financial statements.
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Notes to the accounts 1. Statement of objectives 1.1 The objective of the World Health Organization, contained in Article 1 of the Constitution, is the "attainment by all peoples of the highest possible level of health". 1.2 In order to achieve this objective, the functions of the Organization have been established and are contained in Article 2 of the Constitution. 1.3 The Eleventh General Programme of Work, 2006-2015, approved by World Health Assembly resolution WHA59.4 provides the policy framework for the Programme Budget 2006-2007. 1.4 The Fifty-eighth World Health Assembly in May 2005 (WHA58.4) resolved to appropriate an Effective Working Budget of $ 915 million for the financial period 2006-2007. The Health Assembly also noted estimated expenditure of $ 2 398 million to be financed from voluntary contributions. This figure was subsequently revised upwards to $ 2 755 million as noted by the 120th Session of the Executive Board in January 2007.
2.
Statement of accounting policies 2.1 General accounting policies The accounting policies and financial reporting practices applied are based upon the WHO Financial Regulations and Financial Rules. Where the Regulations and Rules do not provide explicit provisions, the requirements of the United Nations System Accounting Standards (UNSAS) apply. The financial statements, accompanying notes and schedules are in accordance with the UNSAS and are drawn up on the basis of the formats defined therein. 2.2 Presentation of financial statements The financial statements, notes, schedules and accompanying tables are presented in US dollars. All assets and liabilities, including accounts receivable and payable, are pooled within the Organization’s books of account. 2.3 Currency translation Translation into US dollars of transactions expressed in other currencies is effected at the prevailing United Nations accounting rate of exchange, as 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. Assets and liabilities held in other currencies at the end of the year are also translated into US dollars at the United Nations accounting rate of exchange prevailing for the month of December of the closing year. However, when significant changes occur in the exchange rates at the end of the year, the rates used “as at 31 December” are those in force on 1 January of the subsequent year. In the current financial period, no substantial change occurred between the exchange rates in force at the end of 2007 and those in force on 1 January 2008. 2.4 Accounting for exchange differential Exchange rate gains and losses on the purchase and sale of currencies, revaluation of cash book balances, and all other exchange differences are adjusted against the funds and accounts participating in the apportionment of interest under the WHO general investment plan.
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2.5 Income Assessed contributions – Income from contributions from Members and Associate Members for the effective working budget 2006-2007 is recorded on an accrual basis as per the assessments approved by the World Health Assembly. In accordance with Financial Regulation 7.1, pending receipt of assessed contributions, implementation of the regular budget may be financed from the Working Capital Fund and thereafter by internal borrowing against available cash reserves of the Organization, excluding Trust Funds. A provision is established for delays in collection of contributions amounting to 100% of the assessed contributions outstanding at 31 December 2007. The total amount of the provision is shown in Statement I. When outstanding assessed contributions are paid, the amounts are credited first against any outstanding internal borrowing and then against any borrowing from the Working Capital Fund. In accordance with Financial Regulation 8.1 (h), any payments of arrears of contributions due from Member States that are not required to repay borrowings from internal borrowing and from the Working Capital Fund are credited to Miscellaneous Income. New and formerly inactive Members - Income from assessed contributions from new and formerly inactive Members is subject to Financial Regulation 6.12. Voluntary contributions – Voluntary contributions for WHO programme activities are recorded on an accrual basis (i.e. income is recognized upon signature of donor agreements on a yearly basis and not when it is received). Contributions in kind or in services – Contributions in kind or in services received by WHO are recorded upon receipt. They are treated both as income and expenditure in the Voluntary Fund for Health Promotion where they are recorded at a fair value based on estimates provided by the donor. Other non-WHO programme activity trust funds – For other trust funds and entities administered by WHO that do not form part of WHO’s programme activities, income is recorded on an accrual basis; except for the International Agency for Research on Cancer and the International Computing Centre. Revenue-producing activities – Income is recorded on a cash basis. Interest income – Interest income is recorded on an accrual basis. Interest earned on funds and accounts invested on a pooled basis is apportioned monthly in proportion to their capital at the end of each month. Earnings on investments made for specific funds are credited directly to the funds concerned. Interest is adjusted by the exchange differential arising from currency and revaluation operations. 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. 2.6 Tax Equalization Fund In accordance with Health Assembly resolution WHA21.10, under which the Tax Equalization Fund was established, the assessed contributions of all Members are reduced by the income generated by the staff assessment plan. In determining the reduction of assessed contributions to be applied to the Members concerned, the Tax Equalization Fund is credited with the revenue from the staff assessment plan, the credits being recorded in the name of individual Members, in proportion to their assessments for the biennium. For those Members that levy income tax on emoluments received from the Organization by their nationals or others liable to such taxes, the credit from the staff assessment plan is charged with the estimated amount to be levied by those Member States. Those amounts which have been charged are, in turn, used by the Organization to reimburse income tax paid by the staff concerned. 2.7 Expenditure In accordance with Financial Regulation IV and Financial Rule VI, expenditure (obligations) is recorded on an accrual basis (i.e. obligations are charged to expenditure during the current financial period for goods or services which are contractually due to be delivered during that period). For other trust funds and entities administered by WHO and which do not form part of WHO programme activities, expenditure is recorded on an accrual basis. That part of an obligation which has not yet been paid (i.e. an outstanding liability) is shown in the balance sheet as an accounts payable.
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2.8 Savings on prior periods’ unliquidated obligations Unliquidated obligations relating to prior financial periods are settled during the current financial period in accordance with the Financial Regulations. Variances on settlement are debited/credited to the relevant fund. 2.9 Eliminations The accounts of the Organization incorporate programme activities under the regular budget and those under extrabudgetary sources of financing, other WHO funds and associated entities. In order to preserve fund integrity and for transparency, income and expenditure are recorded separately for each individual fund. Income can be transferred from one fund to another fund in which case the amount is recorded as expenditure in the originating fund and as income in the receiving fund. However, income and expenditure are also consolidated in the Organization’s accounts and financial statements to give an overall picture of the costs of WHO programme activities and of other entities administered by WHO. In such circumstances, consolidation produces a duplication of income and expenditure which must be eliminated in order to reflect the net costs of programme delivery. Programme support costs (PSC) are recorded both as income and expenditure through the accounting for extrabudgetary funds and the Special Account for Servicing Costs giving rise to duplication on consolidation which must also be eliminated. 2.10 Cash at banks, in transit and on hand Imprest account balances only reflect disbursements recorded up to 30 November 2007 in order to ensure a consistent cut off throughout the Organization. Disbursements that have not been accounted for in December 2007 will be accounted for against the liquidation of the relevant expenditure (obligations) and bank balances in 2008. 2.11 Deposits and securities Funds in currencies other than US dollars are accounted at their US dollar equivalent based on the United Nations accounting rate of exchange. Securities are accounted for at current market value. Market values are determined using the market price for a particular security on the last business day of the year. In accordance with Financial Regulation 11.1, funds not required for immediate use may be invested. All investments are carried out within the framework of investment policies approved by the Director-General. These policies are regularly reviewed by the Advisory Investment Committee, which includes external investment specialists. The Committee makes recommendations to the Director-General as and when the Committee considers it appropriate. The investment policy reflects the nature of the WHO funds, which may be held for the short-term, pending programme implementation, or for the longer term in order to meet liabilities under the Staff Health Insurance Fund and other long-term funds of the Organization. Investments are recorded at current market value and investment income is recorded on an accrual basis. However, for the structured investment products of which the calculation of interest rate will not be made until the end of the interest period, the income is recognized on a cash basis and the accrued interest is not recorded. 2.12 Capital assets and Members’ equity in capital assets The value of capital assets represents the cost at the time of acquisition or construction or, in the case of donated properties, the value as advised by the donor. No adjustment is made for depreciation. In certain regional office locations, WHO occupies premises made available 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 to expenditure. 2.13 Non-expendable equipment In accordance with established accounting policy, non-expendable equipment (including furniture, computers and other office equipment and motor vehicles) is charged to expenditure at cost. An inventory of nonexpendable equipment is maintained and the value disclosed in these notes. For reporting purposes, only those items with a cost value of $ 2 500 and above are included. 2.14 Working Capital Fund and internal borrowing Pending the receipt of assessed contributions, implementation of the regular budget may be financed from the Working Capital Fund and thereafter by internal borrowing against available cash reserves of the Organization, excluding trust funds. Amounts borrowed are repaid from the collection of arrears of assessed contributions which are credited first against any internal borrowing outstanding and then against any borrowing outstanding from the Working Capital Fund.
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2.15 Foreign exchange hedging In accordance with Financial Regulation 4.4, foreign exchange hedging seeks to maintain the level of the budget, irrespective of the effect of any fluctuation of currencies against the US dollar. The amounts available for hedging are approved by the World Health Assembly for the financial period concerned. The exact method of hedging is determined in accordance with the investment policy, which specifies permitted hedging instruments: namely forward foreign exchange and option contracts. The exchange rate to be protected and prevailing market conditions are also taken into account. Costs associated with the purchase of foreign currency options are recorded at the time of purchase and are expensed in the biennium to which they relate. Gains (losses) on forward contracts and any gains on option contracts are taken to income (or expenditure) when the contracts mature.
3.
Tax Equalization Fund In 2006-2007, income credited to the Tax Equalization Fund is derived as follows: 2006-2007 (US dollars)
2004-2005 (US dollars)
Staff Assessment (Statement IV, Appropriation Section 7) Less: Credits to Members Total
80 000 000 70 885 920 9 114 080
80 000 000 75 374 110 4 625 890
4.
Contributions in kind or in services Voluntary contributions include contributions in kind or in services amounting to $ 47.5 million for 2006-2007 ($ 51.7 million in 2004-2005). These amounts are recorded under the Voluntary Fund for Health Promotion.
5.
Revenue-producing activities Revenues comprise the following: rental from staff accommodation credited to the Real Estate Fund; rentals from concessionaires at Headquarters credited to the Special Account for Operation of Concessions; sale of WHO publications and other promotional material; income from rights and royalties credited to the Revolving Sales Fund; and revenue derived from patent policy credited to the Special Account for Income Derived from Patent Policy.
6.
Income from services rendered This item refers to income from programme support costs levied against programme expenditure under extrabudgetary financed activities and fees received from the provision of administrative services to other entities. Income earned is credited to the Special Account for Servicing Costs. Transfers to the Terminal Payments Account are also shown under this heading.
7.
Foreign exchange hedging transactions arising in 2006-2007 Exchange gains on foreign exchange hedging contracts in 2006-2007 amounted to $ 7.8 million ($ 29.6 million in 2004-2005). Summary of outstanding options as at 31 December 2007 (in relation to 2008-2009 hedging contracts) WHO has the option to sell: USD USD 327 000 000 147 000 000 and buy CHF if the market rate is lower than and buy EUR if the market rate is more than 1.1500 1.4000 at USD 1.00 = at USD 1.40 = CHF 1.15 EUR 1.00
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Net premiums paid on these contracts amounting to $ 7.8 million have been recorded as prepaid expenses as at 31 December 2007 ($ 16.1 million at 31 December 2005). Unrealized net gains on these contracts amounted to $ 21.1 million as at 31 December 2007 (unrealized net losses $ 3 million at 31 December 2005). Realized gains or losses on these contracts will be recorded on maturity of the contracts and applied during 2008-2009.
8.
Miscellaneous income - other This includes: 2006-2007 (US dollars)
2004-2005 (US dollars)
Refunds and rebates Exchange differential Sale of equipment and material Underground parking operations Settlement of Casual Income appropriated for priority programmes Total
813 575 2 656 361 149 463 634 252 94 522 4 348 173
602 211 988 231 167 120 307 637 (20 151) 2 045 048
9.
Expenditure Expenditure for WHO programme activities includes technical cooperation and supply services. Expenditure for non-WHO programme activities relates to funds or entities for which the Organization has administrative responsibility or some other interaction.
10. Payment of assessed contributions of prior years Arrears of assessed contributions collected in 2006-2007 in respect of the prior financial periods have been applied as follows: 2006-2007
2004-2005 (US dollars)
(US dollars)
Repayments on internal borrowing outstanding as at 1 January 2006 and 2004 Repayments of Working Capital Fund outstanding as at 1 January 2006 and 2004 Total repayments of borrowings Credited to Miscellaneous Income Total arrears of assessed contributions collected
13 033 602 31 000 000 44 033 602 11 100 252 55 133 854
1 743 968 31 000 000 32 743 968 12 203 848 44 947 816
11. Revolving Sales Fund In accordance with Health Assembly resolutions WHA22.8 and WHA55.9, this fund is credited with proceeds from the sale of publications, international certificates of vaccination, films, videos, DVD’s and other information material. The related costs of production and printing are charged to the fund.
12. Special Account for Operation of Concessions at Headquarters Established by the Director-General under the terms of the Financial Regulations, 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, administration of contracts and replacement of equipment are charged against the account.
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13. UN trust funds – WHO programme activities These represent cash drawings from the United Nations Development Programme, the United Nations Population Fund, the United Nations Children’s Fund and other organizations and bodies of the United Nations system. Such drawings are made in order to finance activities funded by those agencies for which WHO is the executing or associated agency.
14. Other trust funds and associated entities – Non-WHO programme activities In accordance with the Financial Regulations, the Director-General has established trust funds to record the financial operations of various programmes and entities that are not considered part of WHO programme activities. The funds included are: - Trust fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS) - International Agency for Research on Cancer (IARC) - International Computing Centre (ICC) For each of these funds, detailed financial reports are issued and are subject to audit by the WHO External Auditor. Trust funds not part of WHO programme activities also include the WHO Staff Health Insurance (SHI), the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFTAM) and the International Drug Purchase Facility - UNITAID. WHO provides administrative support and services to these entities and in 2006-2007 received fees of $ 8.8 million for the provision of such services.
15. Staff Health Insurance The income of the Staff Health Insurance Fund consists of contributions received in respect of both 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 order to ensure the adequate funding of future claims from retired staff, a fixed percentage (currently 25%) of active staff contributions is set aside each year. The remaining 75% of contributions are required to meet current claims from active staff. The balance of the fund at 31 December 2007, $ 383.6 million, is held to satisfy statutory reserves as follows: 31 December 2007 (US dollars)
31 December 2005 (US dollars)
Settlement of outstanding claims (SHI rule 470.1) Future costs of retired staff (SHI rule 470.2)a/ Reserve for major claims and cost of reinsurance (SHI rule 470.3) Total
17 887 917 306 451 000 59 270 822 383 609 739
14 676 678 272 031 000 23 992 623 310 700 301
16. Other trust funds Special Fund for Compensation This fund was set up by the Director-General under the Financial Regulations for the payment of periodic benefits awarded to staff members under WHO compensation rules for service-incurred accidents and illnesses. It is financed by funds allocated to cover the cost of employing the staff member in question; by the credit of benefits received from the commercial accident and illness insurance policy established for this purpose, and by any interest earned. Due to Estates of Deceased Staff Members These funds reflect balances due on accounts of deceased staff members, pending the conclusion of legal and other succession-related formalities.
The most recent actuarial valuation of the future cost of retired staff, dated July 2004, estimates an Accumulated Post-retirement Benefit Obligation (APBO) for retirees of $ 370.0 million.
a/
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Other Trust Funds held by WHO These funds relate to balances held on behalf of interagency and other entities for which WHO has responsibility as trustee.
17. Foundations This comprises foundations for which WHO holds funds in trust and is responsible for financial and administrative management. At 31 December 2007, the foundations were as follows: - Darling Foundation - Down Syndrome Research Prize in the Eastern Mediterranean Region - Dr A.T. Shousha Foundation - Dr Comlan A.A. Quenum Prize - Ihsan Dogramaci Family Health Foundation - Jacques Parisot Foundation - Léon Bernard Foundation - Professor Francesco Pocchiari Fellowship Prize - State of Kuwait Prize for the Control of Cancer, Cardiovascular Diseases and Diabetes in the Eastern Mediterranean Region - State of Kuwait Prize for Research in Health Promotion - United Arab Emirates Health Foundation
18. Cash, deposits and securities Cash, deposits and securities are held on behalf of the Organization, including the Voluntary Fund for Health Promotion, its special accounts and trust funds, and the various foundations and entities administered by WHO. Cash at banks, in transit and on hand This represents the aggregation of all the Organization’s liquid resources (including cash, bank accounts, and funds in transit) and amount to $ 103 million at 31 December 2007 ($ 96.2 million at 31 December 2005). Within this figure, imprest account disbursements which have not been accounted for in the financial period, amount to $ 72.6 million ($ 58.3 million at 31 December 2005). These disbursements will be accounted for against the liquidation of the appropriate unliquidated obligations and bank balances in 2008. Short-term fixed income in US dollars These are invested in cash and high quality, short dated, government, agency, and corporate bonds as defined in the approved investment policy. Long-term fixed income in US dollars These are invested in high quality, medium and long dated, government, agency, and corporate bonds. They represent funds managed for the Staff Health Insurance Fund and the Terminal Payments Account as defined in the approved investment policy. Equity investments in US dollars In accordance with approved investment policy, this portfolio represents funds managed for the Staff Health Insurance Fund. Total cash, deposits and securities as at 31 December 2007 This figure includes $ 1 071.3 million ($ 636.1 million at 31 December 2005) held by WHO on behalf of UNAIDS, International Agency for Research on Cancer, International Computing Centre, Staff Health Insurance, The Global Fund to fight AIDS, Tuberculosis and Malaria, International Drug Purchase Facility – UNITAID and Foundations. Interest receivable shown in Statement II is the amount of accrued interest from the Organization’s direct investments, mainly time deposits. The total earnings from cash, deposits and securities for 2006-2007 was $ 202.4 million ($ 68.1 million in 2004-2005) after taking into account an exchange differential gain of $ 6.4 million. $ 25.7 million of total earnings ($ 7.6 million in 2004-2005) related to the regular budget and was credited to Miscellaneous Income.
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19. Accounts receivable At 31 December 2007, accounts receivable amounted to $ 526.6 ($ 57.4 million at 31 December 2005). The large increase in the accounts receivable is due to the revised accounting policy on income recognition effective 1 January 2006. In addition to accruing income on assessed contributions, income from Voluntary contributions is now also accrued under the revised income recognition policy. This means that income from voluntary contributions is recognized upon signature of donor agreements. As a result of this change in policy $ 423.8 million (detailed below) has been recognized as income during 2006-2007 for WHO programme activities and is shown as an accounts receivable at 31 December 2007. Sundry debtors (detailed below) comprise payments due from other international organisations, guarantee deposit accounts and other debtors. This item includes certain expenses that will be charged against accounts payable, or other appropriate accounts in 2008. 31 December 2007 (US dollars)
31 December 2005 (re-stated, note 33) (US dollars)
Accounts receivable WHO programme activities Voluntary Fund for Health Promotion Trust funds Total WHO programme activities Non-WHO programme activities – Trust funds Interest receivable Sundry debtors Due from other United Nations organizations and agencies, institutions, governments and ministries, firms, corporations and other entities, for goods and services provided Clearance accounts WHO/UNAIDS service clearance accounts with UNDP Other debtors Guarantee deposits Total Sundry debtors Total accounts receivable 423 006 453 809 103 423 815 556 47 539 712 24 090 954 17 718 263
10 798 756 9 258 835 8 248 872 2 454 345 395 173 31 155 981 526 602 203
15 164 082 5 512 012 17 124 102 1 635 088 254 707 39 689 991 57 408 254
20. Advances and prepaid expenses An amount of $ 35.1 million represents advances made to staff members in accordance with the regulations and rules of the Organization ($ 24.3 million at 31 December 2005) and an amount of $ 11.7 million represents prepaid expenses ($ 16.6 million at 31 December 2005), i.e. disbursements made in respect of obligations against the next financial period and will be charged as expenditure in that period.
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21. Letters of credit At 31 December 2007, in addition to actual cash resources on hand, undrawn balances under letters of credit received from the United States of America, amounted to $ 233.2 million ($ 139.7 million at 31 December 2005). These relate to the following activities: 31 December 2007 (US dollars)
31 December 2005 (US dollars)
The US Agency for International Development Voluntary Fund for Health Promotion Trust Fund for the Joint United Nations Programme on HIV/AIDS (UNAIDS) The US Environment Protection Agency Voluntary Fund for Health Promotion Total 2 392 119 233 206 993 1 567 169 139 656 990 196 198 179 34 616 695 125 939 821 12 150 000
22. Construction in progress and loan from the Swiss Confederation The World Health Assembly, in resolutions WHA55.8 and WHA56.13, authorized the Director-General to proceed with the construction of a new building at headquarters for WHO and UNAIDS at a cost estimated at CHF 66 million, of which WHO’s share was estimated at CHF 33 million. The Swiss Confederation has agreed to provide an interest-free loan to WHO and UNAIDS of CHF 59.8 million of which WHO’s share is CHF 29.9 million. The Health Assembly also approved the use of the Real Estate Fund for the repayment over a 50-year period of WHO’s share of the interest-free loan provided by the Swiss Confederation with effect from the first year of the completion of the building. The building was completed in November 2006. The amount under capital assets includes $ 51.2 million transferred from construction in progress which represents the expenditure incurred on the building up to 31 December 2007. The additional amount of $ 2.8 million above the loan amount from the Swiss Confederation has been financed equally by WHO and UNAIDS. The loan repayable $ 48.4 million at 31 December 2007 represents the total amount of the loan received from the Swiss Confederation.
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23. Capital assets These assets represent WHO and other trust fund properties at headquarters and in regional office locations. The properties have either been purchased, constructed or received as donations. The land upon which buildings have been erected is either owned by the Organization /trust fund or has been made available by the host country concerned, at no cost or at a nominal annual ground rent. The cost of land and buildings at each location comprises the following:
31 December 2005 (US dollars)
2006-2007 Additions Disposals (US dollars) (US dollars)
31 December 2007
(US dollars)
WHO offices Headquarters UNAIDS/WHO building Regional Office for Africa Regional Office Africa Region - other Total: Regional Office for Africa Regional Office for South-East Asia Regional Office for the Eastern Mediterranean Regional Office for the Western Pacific Total WHO IARC - Lyon Total 7 533 338 1 249 634 8 782 972 1 483 295 12 088 203 7 400 758 72 113 766 4 193 504 76 307 270 52 098 488 749 000 52 098 488 124 557 124 557 7 657 895 1 249 634 8 907 529 1 483 295 12 088 203 8 149 758 124 212 254 4 193 504 128 405 758 42 358 538 51 224 931 42 358 538 51 224 931
24. Non-expendable equipment The total value at cost at 31 December 2007 amounted to $ 83.9 million ($ 80.1 million at 31 December 2005).
25. Members’ contributions received in advance At 31 December 2007 some Members had, either in full or in part, made advance payments against their regular budget contributions for 2008 and future years. In addition, certain Members had received credits against assessed contributions for the current biennium, which will be offset against future assessments. In total, contributions received in advance at 31 December 2007 amounted to $ 59.3 million ($ 50.3 million at 31 December 2005).
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26. Accounts payable In accordance with the revision to Financial Regulation IV, effective 1 January 2006, unliquidated obligations have been replaced by accounts payable. The total accounts payable for WHO programme activities at 31 December 2007 is $ 294.4 million (detailed below). The reduction of $ 69 million reflects the new expenditure recognition policy in Financial Regulation 4.2 whereby obligations are charged to expenditure during the current financial period for goods or services which are contractually due to be delivered during that period. 31 December 2007 (US dollars)
31 December 2005 (re-stated, note 33) (US dollars)
Accounts payable WHO Programme Activities Regular budget Other WHO funds Voluntary Fund for Health Promotion Inter-organization arrangements Trust funds Total WHO programme activities Non-WHO Programme Activities Trust Fund for the Joint United Nations Programme on HIV/AIDS International Computing Centre The Global Fund to fight AIDS, Tuberculosis and Malaria International Drug Purchase Facility – UNITAID Trust funds, Foundations and other funds Total non-WHO programme activities Sub-total Programme Activities 36 826 972 5 185 624 27 862 597 8 232 270 2 188 600 80 296 063 374 652 753 4 932 109 70 896 711 434 208 503 39 926 284 2 574 389 23 463 929 37 241 743 19 668 743 196 721 695 2 396 667 38 327 842 294 356 690 43 539 187 18 605 709 205 574 509 7 659 237 87 933 150 363 311 792
Sundry accounts payable Personal accounts of WHO staff – proceeds of claims and other amounts due Due to other United Nations organizations and agencies, institutions, government and 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 UNAIDS/UNDP Operating Fund Clearance accounts Sub-total Sundry accounts payable Total accounts payable 4 827 567 20 522 523 395 175 276 5 860 180 4 280 693
9 834 776
10 138 489 17 354 328 5 652 834 5 090 885 42 517 229 476 725 732
27. Other WHO funds 31 December 2007 (US dollars)
31 December 2005 (US dollars)
Revolving Fund for Teaching and Laboratory Equipment Special Account for Concessions at Headquarters Special Account for Income Derived from Patent Policy Staff Development Fund Total
400 000 2 655 841 4 430 7 366 039 10 426 310
400 000 2 817 591 4 060 2 734 721 5 956 372
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28. United Nations Joint Staff Pension Fund 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 to staff. 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 any share of any actuarial deficiency payments under Article 26 of the Regulations of the Fund. Such deficiency payments are only payable if and when the United Nations General Assembly has invoked the provision of Article 26, following determination that there is a requirement for deficiency payments based on an assessment of the actuarial sufficiency of the Fund as of the valuation date. At the time of this report the United Nations General Assembly had not invoked this provision.
29. Administrative waivers, amounts written-off, cases of fraud, ex-gratia payments During 2006-2007, there was one administrative waiver for $ 5 040; thirteen cases of amounts written-off totalling $ 372 103; seven cases of proven fraud for $ 235 235; and one ex-gratia payments for $ 766. In addition, further cases have been reported and these are being investigated.
30. Contingent liabilities At 31 December 2007, there were pending legal proceedings against the Organization concerning: four accidents involving WHO vehicles; a rental issue at one WHO office; four alleged contractual obligations; one issue concerning alleged fraudulent fuel trafficking; and cases of alleged unlawful dismissal by 29 former staff members. In addition, there are several claims that are currently being processed; they involve four alleged contractual obligations, an alleged obligation due to one former staff member and one case relating to alleged ecological damage caused by the construction of the WHO/UNAIDS building. These claims are not deemed to be of material significance. Finally, there were outstanding personnel matters before the ILO Administrative Tribunal. These are currently being contested by the Organization. The legal proceedings have not progressed sufficiently to determine the extent of any liability of the Organization with any degree of certainty.
31. Security Fund In view of the increased importance attached to the provision of security for WHO staff, the Director-General established a Security Fund, under Financial Regulation 9.3, to record the income and expenditure related to provision of security coordination both through reimbursement of WHO’s share of the United Nations system costs and those pertaining to the Secretariat. This fund may be financed by way of appropriation from the regular budget and from other sources including the Special Account for Servicing Costs. Costs pertain to the provision of security services for staff in all locations who are engaged in work that is funded by both the regular budget and other sources.
32. Information Technology Fund The Information Technology Fund was established in 2002-2003 by the Director-General under Financial Regulation 9.3 to meet the current and future administrative information requirements of the Organization. This fund may be financed by way of appropriation from the regular budget and from other sources including the Special Account for Servicing Costs. This financing reflects the fact that the systems will support management of programmes funded by both the regular budget and extrabudgetary contributions.
33. Re-statement of 2004-2005 comparative figures The presentation of some figures in 2006-2007 has made it necessary to re-state relevant 2004-2005 figures for comparative purposes.
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34. Statement of appropriations for the financial period 2006-2007 Transfers from the regular budget Expenditure figures for this period include transfers from the regular budget of $ 1.8 million to the UNICEF/UNDP/World Bank/WHO Special Programme for Research and Training in Tropical Diseases; of $ 0.15 million to the African Programme for Onchocerciasis Control; of $ 7.3 million to the Real Estate Fund; of $ 3.3 million to the Security Fund; and of $ 9.9 million to the Information Technology Fund. Unobligated balance of appropriations The unobligated balance of regular budget appropriations at the end of the financial period could either be funded in total, in part, or not at all depending on the extent to which assessed contributions have been collected. Any funded part of the unobligated balance of regular budget appropriations is credited to miscellaneous income. The unfunded part of the unobligated balance of regular budget appropriations represents the amount of the effective working budget that has not been implemented. The unfunded part is credited to miscellaneous income only when the underlying outstanding assessed contributions are collected. At 31 December 2007, the unobligated balance of regular budget appropriations of $ 16.7 million was all unfunded. Transfers between sections of the Appropriation Resolution Paragraph 3.1 of the Appropriation Resolution for the financial period 2006-2007 (resolution WHA58.4) states "notwithstanding the provisions of Financial Regulation 4.3, the Director-General is authorized to make transfers between appropriation sections of the effective working budget up to an amount not exceeding 10% of the amount appropriated for the section from which the transfer is made; all such transfers shall be reported in the financial report for the financial period 2006-2007; any other transfers required shall be made and reported in accordance with the provisions of Financial Regulation 4.3". All transfers between appropriation sections made by the Director-General during the 2006-2007 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 be frequently offset by a reduced requirement under another allocation in the same appropriation section, thereby avoiding the need for a transfer. The regular budget transfers made in the course of the implementation of the 2006-2007 programme budget are summarized as follows: 2006-2007 (US dollars)
Appropriation Section 1 - Essential health interventions Decrease: African Region Reprogramming to regional priorities and to meet actual requirements American Region Reprogramming to strengthen global priorities South-East Asia Region Decrease due to lower than anticipated capacity at country level, partly offset by increases for implementation of region-wide activities European Region Additional extrabudgetary funds available and regular budget funds redirected to other priority areas Eastern Mediterranean Region Transfer to reflect actual country level requirements Western Pacific Region Lower than anticipated costs of approved Country Plans of Action Global and interregional Reprogramming to strengthen global priorities Net decrease
(9 148 000) (206 000) (1 241 000) (1 156 000) (5 430 000) (1 274 000) (1 771 000) (20 226 000)
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Appropriation Section 2 - Health policies, systems and products Increase: African Region Reprogramming to regional priorities and to meet actual requirements Eastern Mediterranean Region Use of national languages in medical education and reflecting actual country level requirements Western Pacific Region Implementation variances Global and interregional Commission on Public Health, Innovation and Intellectual Property Decrease: American Region South-East Asia Region European Region Net increase
2 415 000 5 897 000 61 000 199 000
Reprogramming to strengthen global priorities Staffing adjustments to align with work plans and cost savings Savings due to reorganization
(160 000) (984 000) (438 000) 6 990 000
Appropriation Section 3 - Determinants of health Increase: South-East Asia Region Staffing adjustments to align with work plans, implementation variances, increase for region-wide activities Global and interregional Conference of the parties of the Framework Convention for Tobacco Control Decrease: African Region American Region European Region Eastern Mediterranean Region Western Pacific Region Net decrease
703 000 2 391 000
Reprogramming to regional priorities and to meet actual requirements Reprogramming to strengthen global priorities Cost savings and reduced requirements in work plans Reflecting updated needs of Member States at country level Lower than anticipated costs of approved Country Plans of Action partly offset by cost increases at Regional level
(3 870 000) (213 000) (670 000) (679 000) (179 000) (2 517 000)
Appropriation Section 4 - Enabling programme delivery Increase: South-East Asia Region Staffing adjustments to align with work plans and higher than anticipated staff costs European Region Strengthening IT connectivity for GSM, support to Member States Western Pacific Region Higher than anticipated costs of approved Country Plans of Action Global and interregional Strengthening the internal audit function and work on ethics, and covering costs of extraordinary governing body meetings Decrease: African Region American Region Eastern Mediterranean Region Net increase
1 874 000 936 000 138 000 5 411 000
Reprogramming to regional priorities and to meet actual requirements Reprogramming to strengthen global priorities Transfer to reflect actual country level requirements
(1 232 000) (124 000) (890 000) 6 113 000
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2006-2007 (US dollars)
Appropriation Section 5 - WHO's core presence in countries Increase: African Region Reprogramming to regional priorities and to meet actual requirements European Region Strengthening infrastructure, communications and security in country offices Eastern Mediterranean Region Transfer to reflect actual country level requirements Western Pacific Region Increased requirements in country offices due to decentralization Decrease: American Region South-East Asia Region Global and interregional Net increase
9 592 000 687 000 322 000 262 000
Reprogramming to strengthen global priorities Implementation variances due to vacant posts Reprogramming to strengthen global priorities
(106 000) (1 151 000) (90 000) 9 516 000
Appropriation Section 6 - Other Increase: Global and interregional Decrease: Eastern Mediterranean Region Net increase Overall net transfer
Costs related to UN joint security
132 000
Reprogramming to strengthen global priorities
(8 000) 124 000 -
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Schedule 1 Cash, deposits and securities as at 31 December 2007 (in thousands of US dollars)
2006-2007
2004-2005
Cash at banks, in transit and on hand Headquarters Regional and Country Offices Total cash at banks, in transit and on hand Deposits Bank deposits and call accounts in US dollars Total deposits Securities Short-term fixed income in US dollars Long-term fixed income in US dollars Equity investments in US dollars Total securities Total deposits and securities Total cash, deposits and securities as at 31 December 2007 and 31 December 2005 (Note 18)
568 102 411 102 979
15 549 80 637 96 186
1 567 915 1 567 915
934 856 934 856
573 145 274 976 67 686 915 807 2 483 722 2 586 701
474 313 237 750 54 332 766 395 1 701 251 1 797 437
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Schedule 2 Cash, deposits and securities by sources of funds as at 31 December 2007 (in thousands of US dollars)
2007
2005
Unliquidated obligations Inter-organization arrangements WHO programme activities Non-WHO programme activities - Trust funds, Foundations and other funds Total unliquidated obligations Internal borrowing - Regular budget Voluntary Fund for Health Promotion Other WHO funds Miscellaneous Income Real Estate Fund Security Fund Revolving Fund for Teaching and Laboratory Equipment Special Account for Operation of Concessions at Headquarters Special Account for Income Derived from Patent Policy Staff Development Fund Revolving Sales Fund Information Technology Fund Special Account for Servicing Costs Tax Equalization Fund Terminal Payments Account Total other WHO funds Trust funds Inter-organization arrangements WHO programme activities Non-WHO programme activities Total trust funds Accounts payable and receivable Accounts payable and deferred income Accounts receivable and prepaid expenses Total accounts payable and receivable New UNAIDS/WHO Building Construction in progress IARC capital assets Members' contributions received in advance Borrowings payable Total cash, deposits and securities (4 194) 59 299 48 417 2 586 701 20 522 (573 399) (552 877) (48 417) (26 510) (4 193) 50 328 29 829 1 797 437 42 517 (98 295) (55 778) 3 362 99 228 995 190 1 097 780 1 621 77 944 569 448 649 013 13 821 4 175 161 400 2 656 4 7 366 5 587 9 258 41 846 (4 926) 58 882 139 230 2 432 1 142 229 400 2 818 4 2 735 4 650 19 346 92 267 (2 706) 56 409 179 726 4 903 289 454 80 296 374 653 (1 809) 1 474 619 7 659 355 653 70 897 434 209 (13 034) 553 847
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Schedule 3 Income and expenditure for the effective working regular budget for 2006-2007 (in thousands of US dollars) Actual 2006-2007
Budget
Income: Members' net assessments (Schedule 4.a) Less: Provision for delays in collection of assessed contributions (Schedule 4.a) a/ Contributions collected (Includes amounts credited under the financial incentive scheme - Financial Regulation 6.5)
902 229 49 499 852 730 9 114 843 616
902 229 902 229 9 114 893 115
Less:
Amounts transferred to Tax Equalization Fund b/
Contributions collected for the effective working budget Plus: World Health Assembly Appropriations: Resolution WHA58.4 Miscellaneous income Total income for the effective working budget c/ Expenditure: Expenditure for the effective working budget (Statement IV, Appropriation sections 1 to 6) d/ Excess of expenditure over income Financed from: - the Working Capital Fund - Internal borrowing
22 200 865 816
22 200 915 315
898 626 32 810 31 000 1 810
915 315
32 810
a/ Assessed contributions for 2006-2007 Contributions collected: in 2006 in 2007 Total (Schedule 4.a) Shortfall in collection of contributions for 2006-2007 444 993 407 737
902 229
100.00% 49.32% 45.19%
852 730 49 499 2006-2007
94.51% 5.49% 2004-2005 80 000 75 374 4 626
b/ Transfer to Tax Equalization Fund (Statement IV, Appropriation section 7) Credits to Members Less: Amounts transferred to Tax Equalization Fund to meet Income Tax reimbursements c / Approved Budget and Planned Financing Total approved budget (Statement IV) To be financed as follows: Assessed contributions from Members for the effective working budget Miscellaneous income appropriated Total financing of budget d / Financial outcome of the budget Total approved budget Less: Total expenditure incurred Unobligated balance of appropriations - becoming cash for credit to Miscellaneous Income Account when the outstanding underlying contributions are received
80 000 70 886 9 114
915 315
880 111
893 115 22 200 915 315
858 475 21 636 880 111
915 315 898 626
880 111 871 163
16 689
8 948
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Schedule 4.a Assessed contributions – 2006-2007 and prior financial periods (in US dollars) 2006-2007 assessments Balance Collected outstanding Net during 31 December assessments 2006-2007 2007 17 860 44 660 678 780 44 660 8 940 26 800 8 538 180 17 860 14 218 400 7 671 860 44 660 116 100 267 940 89 320 89 320 160 760 9 547 400 8 940 17 860 8 940 80 380 26 800 107 180 13 602 140 303 660 151 840 17 860 8 940 17 860 71 460 25 123 320 8 940 8 940 8 940 1 991 660 18 335 660 1 384 340 8 940 8 940 8 940 267 940 89 320 330 460 384 040 348 320 1 634 400 17 860 44 660 678 780 44 660 8 940 26 800 8 538 180 17 860 14 218 400 7 671 860 44 660 109 050 267 940 89 320 89 320 9 547 400 8 940 17 860 8 940 78 820 26 800 107 180 13 602 140 303 660 151 840 17 860 7 838 17 860 71 460 25 123 320 Assessments of prior financial periods Balance Collected or Balance outstanding adjusted outstanding 1 January during 31 December 2006 2006-2007 2007 306 665 83 095 223 570
Members, including Associate Members Assessed Members 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 Comoros Congo Cook Islands Costa Rica Côte d'Ivoire Croatia Cuba Cyprus Czech Republic
Total outstanding 241 430
174 064 30 800 484 2 446 150
174 064 90 600 30 800 484 2 355 550 39 338 664 2 355 550
3 794 273 7 050
100 890
3 693 383
3 693 383 7 050
160 760
237 530 381
160 274 381
77 256
238 016
1 560
101 038
101 038
1 560
6 465 604
6 465 604
1 102 35 180 8 940 8 940 8 458 1 528 732 8 533 164 841 1 184 749 491 773 444 427 1 184 749 491 773 9 060 35 180 8 533 164 841
1 102
482 462 928 18 335 660 1 384 340 8 940
17 473 173 781 8 458 1 528 732
8 940 8 940 267 940 89 320 330 460 384 040 348 320 1 634 400
435 367
444 307 8 940
102 588 81 120 26 334
102 588 81 120 26 334
89 320
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Schedule 4.a (continued) 2006-2007 assessments Balance Collected outstanding Net during 31 December assessments 2006-2007 2007 89 320 26 800 8 940 6 412 580 8 940 8 940 312 600 169 700 1 071 740 196 500 17 860 8 940 107 180 35 720 35 720 4 760 300 56 574 060 80 380 8 940 26 800 77 364 300 35 720 4 733 520 8 940 267 940 26 800 8 940 8 940 26 800 44 660 1 125 320 303 660 3 760 020 1 268 220 1 402 200 142 900 3 125 900 4 170 860 43 629 560 71 460 173 874 320 98 240 223 280 80 380 8 940 1 446 860 8 940 6 412 580 4 650 312 600 154 234 1 071 740 196 500 17 860 8 940 107 180 35 720 35 720 4 760 300 56 574 060 80 380 26 800 77 364 300 35 720 4 733 520 8 940 267 940 13 440 8 940 13 400 44 660 1 125 320 303 660 3 760 020 1 268 220 1 100 71 450 3 125 900 2 851 997 43 629 560 71 460 173 874 320 98 240 223 280 80 380 8 940 1 446 860 89 320 26 800 Assessments of prior financial periods Balance Collected or Balance outstanding adjusted outstanding 1 January during 31 December 2006 2006-2007 2007 115 29 835 115 28 288 1 547 28 347
Members, including Associate Members Democratic People's Republic of Korea Democratic Republic of the Congo Democratic Republic of Timor-Leste 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 Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Kuwait
Total outstanding
4 290 8 940 15 466
4 290 12 260 1 019 572
4 290 138 515 12 260 881 057
4 290 21 200 881 057 15 466
8 019
8 019
8 940
10 663 4 439 163
10 633 180 018
30 4 259 145
8 970 4 259 145
4 290 13 360 8 940 13 400 25 760 222 590
4 290 25 760 222 590 13 360 231 530 13 400
14 454 1 401 100 71 450 1 318 863 862 282 6 398 801 651 934
14 454 862 282 426 579 651 934 1 401 100 6 043 672 1 318 863
5 972 222
3 890 488 4 290
2 795 123 4 290
1 095 365
1 095 365
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Schedule 4.a (continued)
Members, including Associate Members 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 Palau Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico
2006-2007 assessments Balance Collected outstanding Net during 31 December assessments 2006-2007 2007 8 940 17 360 133 980 214 360 8 940 8 940 1 178 920 214 360 687 700 26 800 8 940 1 813 020 8 940 17 860 125 040 8 940 8 940 98 240 16 817 360 8 940 26 800 8 940 419 760 8 940 89 320 53 600 8 940 35 720 15 093 640 1 973 780 8 940 8 940 375 120 8 940 6 064 260 625 180 491 220 8 940 169 700 26 800 107 180 821 680 848 460 4 117 260 4 197 640 8 940 17 360 133 980 206 317 8 940 8 940 1 136 673 214 360 687 700 26 800 8 940 1 813 020 8 940 9 498 125 040 8 940 49 744 16 817 360 4 743 26 800 8 940 419 760 8 940 88 400 53 600 3 642 35 720 15 093 640 1 973 780 8 940 8 940 254 508 175 6 064 260 625 180 491 220 121 090 13 400 107 180 88 699 840 804 4 117 260 4 197 640 8 940
Assessments of prior financial periods Balance Collected or Balance outstanding adjusted outstanding 1 January during 31 December 2006 2006-2007 2007 1 233 412 28 457 1 204 955
Total outstanding 1 213 895
8 043
41 339 318 683 612 791 103 020
41 339 318 683 612 791 103 020
8 043
42 247
42 247
4 290
4 290
8 362 8 940 48 496 2 234 146 4 197 2 234 146 8 507 1 981 4 217 1 981 4 290
8 362 13 230 48 496
4 197
920 5 298 103 821 103 821
920 5 298
137 812 120 612 8 765 4 276
137 812 4 276 120 612 8 765
8 940 48 610 13 400 732 981 7 656
250 031 8 236 49 540 60 379 107 296 1 259 195 368 559
250 031 8 236 49 540 60 379 107 296 1 259 195 368 559
8 940 48 610 13 400 732 981 7 656
8 940
8 580
8 580
17 520
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Schedule 4.a (continued) 2006-2007 assessments Balance Collected outstanding Net during 31 December assessments 2006-2007 2007 571 600 16 040 360 8 940 84 850 535 880 9 824 280 8 940 8 940 17 860 8 940 8 940 26 800 8 940 6 367 920 44 660 84 850 17 860 8 940 3 465 300 455 500 732 360 8 940 8 940 2 651 100 22 506 500 151 840 71 460 8 940 17 860 8 913 300 10 690 600 339 380 8 940 1 866 620 53 600 8 940 8 940 8 940 196 500 285 800 3 309 540 44 660 8 940 53 600 348 320 571 600 16 040 360 8 940 374 535 880 9 824 280 8 940 8 940 8 981 5 199 8 940 26 800 8 940 6 367 920 44 660 84 850 17 860 4 470 3 465 300 455 500 732 360 84 476 Assessments of prior financial periods Balance Collected or Balance outstanding adjusted outstanding 1 January during 31 December 2006 2006-2007 2007 4 609 110 2 950 023 4 609 110 445 000
Members, including Associate Members Qatar Republic of Korea Republic of Moldova Republic of Serbia a/ 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 Serbia and Montenegro a/ 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 Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine
Total outstanding
2 505 023
2 505 023 84 476
8 879 3 741
12 220
12 220
8 879 3 741
81 560 4 470
81 560 4 470
8 940 8 940 2 651 100 22 506 500 151 840 71 460 8 940 17 860 8 913 300 10 690 600 339 380 8 940 1 866 620 53 600 8 940 8 940 8 940 196 500 234 355 3 309 540 44 660 8 940 53 600 348 320
4 290 400 224
4 290 400 224
13 230 409 164
30 150 112 292
30 150 112 292
101 610
469 074
71 615
397 459
397 459
25 760 1 029 4 390
25 760 1 029 4 390 9 969 13 330
51 445 1 259 014 247 802 1 011 212
51 445 1 011 212
32 309 438
3 373 168
28 936 270
28 936 270
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Schedule 4.a (continued) 2006-2007 assessments Balance Collected outstanding Net during 31 December assessments 2006-2007 2007 2 098 820 2 098 820 Assessments of prior financial periods Balance Collected or Balance outstanding adjusted outstanding 1 January during 31 December 2006 2006-2007 2007
Members, including Associate Members 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 Zambia Zimbabwe Total - Assessed Members
Total outstanding
54 722 940 53 600 202 841 140 428 700 125 040 8 940 1 527 240 187 560 53 600 17 860 62 520 902 229 080
54 722 940 53 600 169 065 119 214 350 84 594 8 940 763 620 187 560 53 553 1 919
33 776 021 214 350 40 446 763 620 47 15 941 62 520 49 498 854
22 028 626 937 519 40 421 734 000
22 028 626 937 519 40 421 734 000
33 776 021 214 350 40 446 763 620 47 15 941 62 520
852 730 226
137 389 574
52 678 502
84 711 072
134 209 926
New and formerly inactive Members Belarus b/ Republic of Montenegro c/ Ukraine b/ Total - New and formerly inactive Members Former Members Yugoslavia (up to 2001) Total - all Members 902 235 040 852 736 186 49 498 854
363 344 5 960 5 960 2 273 680 5 960 5 960 2 637 024
181 672 2 273 680 2 455 352
181 672
181 672
181 672
181 672
5 532 592 145 559 190 55 133 854
5 532 592 90 425 336
5 532 592 139 924 190
Republic of Serbia continued the membership of Serbia and Montenegro after the declaration of independence of the Republic of Montenegro on 3 June 2006. 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 in this schedule under "Assessed Members". c/ Republic of Montenegro is a new Member which did not contribute to the effective Working Budget in 2006-2007. b/
a/
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Schedule 4.b Assessed contributions – Outstanding unpaid contributions repayment plans (in US dollars)
Certain Member States with outstanding unpaid contributions from prior years have agreed to repayment plans under which the Member States concerned commit to make annual payments towards the arrears, in addition to paying their current year assessment. These special arrangements are approved by Health Assembly resolutions, and specify the number of years over which the concerned Member State must pay the outstanding contributions. In the event that minimum payments are not made according to the agreed plan, the Member State’s voting privileges are suspended in accordance with Article 7 of the Constitution. The Members concerned, are listed below, together with summary information concerning the terms of the approved payment plans:
Member States Afghanistan Armenia Azerbaijan Belarus Central African Republic Dominican Republic Georgia Iraq Kazakhstan Republic of Moldova Tajikistan Turkmenistan Ukraine Total
Resolution WHA59.6 WHA59.7 WHA55.5 WHA45.23 WHA59.8 WHA59.9 WHA58.8 WHA58.9 WHA56.11 WHA58.10 WHA58.11 WHA59.10 WHA57.6
Payment period 2007-2020 2006-2023 2003-2011 1997-2006 2006-2010 2006-2020 2006-2020 2006-2020 2003-2012 2006-2020 2006-2015 2006-2015 2004-2018
Payments received during 2006-2007 0 90 600 100 890 181 672 0 138 515 180 018 426 579 2 795 123 445 000 71 615 247 802 5 646 848 10 324 662
Balance outstanding a/ 232 500 2 355 550 3 693 383 181 672 164 841 881 057 4 259 145 5 972 222 1 095 365 2 505 023 397 459 1 011 212 28 936 270 51 685 699
a/
In addition to the minimum annual payments in respect of arrears, the Member States concerned must also pay their current year assessed contributions.
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Schedule 4.c Assessed contributions – Received in advance (in US dollars) Members, including Associate Members Albania Algeria Angola Australia Bahrain Bangladesh Belize Benin Bhutan Brazil Bulgaria Burkina Faso Cameroon Canada China Colombia Congo Costa Rica Croatia Cuba Cyprus Czech Republic Democratic People's Republic of Korea Democratic Republic of Timor-Leste Denmark Estonia Ethiopia Fiji Finland France Gabon Georgia Ghana Guatemala Guyana Honduras Hungary Iceland Indonesia Ireland Italy Japan Kazakhstan Kenya Kiribati Kuwait Lao People's Democratic Republic Latvia Lesotho Liberia Luxembourg Madagascar 2008 assessments Net Collected or adjusted assessments during 2006-2007 27 870 394 760 13 940 8 299 650 153 260 46 440 4 650 4 650 4 650 4 068 790 92 890 9 290 41 800 13 826 710 12 387 010 487 640 4 650 148 620 232 210 250 790 204 350 1 305 020 32 510 4 650 3 432 530 74 310 13 940 13 940 2 619 330 30 476 640 37 160 13 940 18 580 148 620 4 650 23 220 1 133 190 171 840 747 720 2 066 670 23 590 200 77 211 670 134 680 46 440 4 650 845 250 1 950 83 600 4 650 4 650 394 760 9 290 27 870 3 471 44 102 835 1 116 953 60 689 4 650 1 639 522 92 890 9 290 41 800 13 826 710 8 037 214 811 4 650 41 562 1 835 49 210 25 7 642 5 870 4 650 3 432 530 74 310 13 940 237 35 820 309 979 37 160 78 6 279 485 147 40 144 934 1 708 3 243 22 380 435 307 317 562 134 680 12 205 349 9 407 141 42 206 4 650 4 650 4 823 1 248
Balance 391 289 13 896 8 196 815 152 144 45 487 4 590 3 961 2 429 268
12 378 973 272 829 107 058 230 375 201 580 204 325 1 297 378 26 640
13 703 2 583 510 30 166 661 13 862 12 301 148 135 4 503 23 180 988 256 170 132 744 477 2 044 290 23 154 893 76 894 108 34 235 4 301 835 843 1 809 41 394
389 937 8 042
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Schedule 4.c (continued) 2008 assessments Net Collected or adjusted assessments during 2006-2007 4 650 882 400 4 650 78 950 4 650 13 940 4 650 4 650 27 870 13 940 1 188 920 9 290 4 650 3 632 230 339 030 274 010 23 220 10 092 780 4 650 325 100 4 650 4 650 4 650 13 940 4 650 3 474 330 18 580 1 611 540 292 590 445 850 1 366 170 13 784 920 74 310 4 650 9 290 4 974 410 5 647 810 4 650 863 820 23 220 4 650 125 400 1 766 940 4 650 13 940 1 402 550 30 849 550 27 870 4 650 68 44 075 4 650 895 240 70 14 4 650 27 870 10 1 188 920 3 4 650 21 708 3 745 14 536 4 560 39 842 63 2 349 25 55 4 650 69 4 650 2 475 381 6 490 26 075 1 431 5 297 1 366 170 54 259 74 310 22 9 290 26 047 69 510 316 863 820 23 220 4 650 1 091 8 704 24 376 13 646 30 849 550 19 937 219 58 412 892
Members, including Associate Members Malawi Malaysia Maldives Malta Mauritania Monaco Mongolia Mozambique Namibia Nepal New Zealand Nicaragua Niger Norway Oman Pakistan Paraguay Republic of Korea Republic of Moldova Romania Rwanda Saint Kitts and Nevis Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Singapore Slovakia Slovenia South Africa Spain Sri Lanka Suriname Swaziland Sweden Switzerland Tajikistan Thailand The Former Yugoslav Republic of Macedonia Tonga Trinidad and Tobago Turkey Tuvalu Uganda United Arab Emirates United Kingdom of Great Britain and Northern Ireland United Republic of Tanzania Vanuatu Total - Members contributions received in advance for 2008
Balance 4 582 838 325 78 055 4 410 13 870 4 636
13 930 9 287 3 610 522 335 285 259 474 18 660 10 052 938 4 587 322 751 4 625 4 595 13 871 998 949 12 090 1 585 465 291 159 440 553 13 730 661 4 628 4 948 363 5 578 300 4 334
124 309 1 758 236 4 626 13 564 1 388 904 7 933 4 431
Members contributions received in advance for 2009-2010 were USD 886 496.
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Schedule 5 Working Capital Fund and internal borrowing as at 31 December 2007 (in thousands of US dollars)
In accordance with Financial Regulation VII, pending the receipt of assessed contributions, implementation of the Regular Budget may be financed from the Working Capital Fund and thereafter by internal borrowing against available cash reserves of the Organization, excluding trust funds. Amounts borrowed are repaid from the collection of arrears of assessed contributions and are credited first against any internal borrowing outstanding and then against any borrowing outstanding from the Working Capital Fund. Resolution WHA58.4 maintains the level of the Working Capital Fund at $ 31 million.
2006-2007 Working Capital Fund Internal borrowing Working Capital Fund
2004-2005 Internal borrowing
Opening balance as at: 1 January 2006 and 1 January 2004 Repayments Collection of arrears of assessed contributions Sub total Withdrawals Financing of Regular Budget pending receipt of assessed contributions Balance as at: 31 December 2007 and 31 December 2005 (Statement I)
(13 033)
(1 744)
31 000 31 000
13 033
31 000 31 000
1 744
31 000
1 809
31 000
13 033
(1 809)
(13 033)
Borrowing as at: 31 December 2007 and 31 December 2005 Working Capital Fund Internal borrowing Total
31 000 1 809 32 809
31 000 13 033 44 033
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Schedule 6 Miscellaneous Income Account as at 31 December 2007 (in thousands of US dollars)
The Miscellaneous Income Account is credited with income arising from a number of sources in accordance with Financial Regulation VIII.
2006-2007
Balance as at 1 January 2006 Income 2006-2007 Sub total Less: Appropriation resolutions for the financial period 2006-2007 Resolution WHA58.4 Financing of the regular budget Adjustment mechanism Financial incentive scheme Resolution WHA60.8 Global management system Sub total Balance as at 31 December 2007
2 432 53 295 55 727
22 200 8 655 4 051
7 000 41 906 13 821
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Schedule 7 All extrabudgetary funds Summary of 2006-2007 income and expenditure as at 31 December 2007 (in thousands of US dollars)
Balance 1 January 2006 Voluntary Fund for Health Promotion (Statement 1) Trust funds Inter-organization arrangements - Technical cooperation United Nations Children's Fund United Nations Development Programme United Nations Environment Programme United Nations International Drug Control Programme United Nations Population Fund Inter-organization arrangements - Supply services Iraq Programme (UN SCR 1472 and 1476) United Nations United Nations Children's Fund United Nations Development Programme United Nations Population Fund World Bank Total - Inter-organization arrangements (Statement 1.2) WHO programme activities - Technical cooperation Onchocerciasis Control Programme African Programme for Onchocerciasis Control Sasakawa Health Trust Fund c/ TDR HRP d/
Income
a/
2006-2007 2 840 694
Adjustments (8 480)
b/
Expenditure Balance 2006-2007 31 December 2007 1 911 442 1 474 619
553 847
834 2 020 20 20 (2 989)
14 766 264 544 5 402
29 15 2 17 368
11 127 837 688 1 5 774
4 502 1 462 (122) 36 (2 993)
(1) 25 32 (127) 1 845 1 622 2 214 38 118 23 403
1 25 29 1 767 38 1 810 432 22 096 153 3 362 3 320
2 268 3 823 7 010 18 796 4 632 3 224 30 098 7 896 197 77 944 79 566 633 413
118 26 358 8 230 70 792 42 480 2 508 41 991 126 244 341 319 062 342 465 3 183 159
(1 860) 3 635 354 3 513 1 170 (813) 6 924
24 729 6 700 73 712 31 318 3 636 47 600 122 547 459
526 9 087 8 894 19 389 16 964 1 283 31 413 11 593 79 99 228 102 590 1 577 209
Associate Professional Officers Other trust funds WHO programme activities - Supply services Countries and Nongovernmental Organizations Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training Total - WHO programme activities (Statement 1.3) Total - Trust funds Total - Extrabudgetary funds
12 923 13 355 4 875
310 701 332 797 2 244 239
a/
Includes cash contributions, pledges recorded as income and due in 2006-2007, refunds, interest and other revenue. Includes transfers between funds, adjustments to fund balances and savings on prior periods’ unliquidated obligations. c/ Trust Fund for the UNICEF/UNDP/World Bank/WHO Special Programme for Research and Training in Tropical Diseases. d/ Trust Fund for the UNDP/UNFPA/WHO/World Bank Special Programme of Research, Development and Research Training in Human Reproduction. b/
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Schedule 8 Special Account for Servicing Costs as at 31 December 2007 (in thousands of US dollars)
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 (i.e. from extrabudgetary resources). The Account is credited with income from the following sources: (i) Funds received from the United Nations Development Fund, the United Nations Population Fund and other organizations and bodies of the United Nations system to cover support costs; (ii) Under Resolution WHA34.17, 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; and (iii) Interest earned on the balance of the fund.
Income and expenditure 2006-2007 2004-2005
Balance as at 1 January 2006 and 1 January 2004 Income United Nations Programmes Support costs of subcontracting agencies Programme support costs Rental of office accommodation at headquarters from trust funds and other arrangements Interest Total income Balance Expenditure Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and interregional activities Total expenditure Balance as at 31 December 2007 and 31 December 2005
92 267
136 103
333 25 168 188 1 213 6 366 176 125 268 392
345 148 949 404 4 675 154 373 290 476
34 498 2 320 19 525 13 500 20 000 13 500 123 203 226 546 41 846
26 805 869 6 910 14 101 18 110 10 219 121 195 198 209 92 267
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Schedule 9 Real Estate Fund as at 31 December 2007 (in thousands of US dollars)
This fund was established by the Twenty-third World Health Assembly in resolution WHA23.l4. The Real Estate Fund, under the Financial Regulations and Financial Rules, is funded by appropriation from the regular budget. 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 of and alterations to the Organization’s existing office buildings and maintenance and repairs of and alterations to houses leased to staff by the Organization. Specific Health Assembly authorization is required for acquisition of land and construction of buildings or building extensions. a/ 2006-2007
Balance as at 1 January 2006 Income Appropriation from regular budget Rents collected Interest Total income Expenditure Headquarters: Construction of new UNAIDS/WHO building - WHA 56.13 WHO share of loan repayment for new UNAIDS/WHO building - WHA 56.13 Major repairs of and alterations to existing office buildings Regional Office for Africa: Construction of new housing facilities - WHA 56.14 Maintenance, repairs and alternations to staff houses Construction of new conference room and office space - WHA 56.14 Major repairs of and alterations to existing office buildings Regional Office for the Americas: Major repairs of and alterations to existing office buildings Regional Office for South-East Asia: Major repairs of and alterations to existing office buildings Regional Office for Europe: Major repairs of and alterations to existing office buildings Regional Office for the Eastern Mediterranean: Major repairs of and alterations to existing office buildings Maintenance, repairs and alternations to staff houses Regional Office for the Western Pacific: Extension of existing building and construction of new building - WHA 55.8 Total expenditure Balance as at 31 December 2007 b/
1 142
7 304 643 461 8 408
1 404 544 593 113 412 12 61 484 294 674 85 (50)
749 5 375 4 175
a/ b/
See note 22 regarding the construction of a new building at Headquarters. This balance has been allocated to planned projects.
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Schedule 10 Terminal Payments Account as at 31 December 2007 (in thousands of US dollars)
This account was established 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 2006-2007 at 2.5% of fixed term staff net salaries and professional staff post adjustment. As confirmed by the Executive Board in January 2007, the staff rules governing the types of appointments of staff have been amended effective 1 July 2007. As a result, temporary staff appointed under Staff Rule 420.4 are entitled to terminal payment benefits and therefore, from 1 July 2007, the budgetary provision of 2.5% has been extended to temporary staff net salaries and professional staff post adjustment. This rate applies to all staff, including those assigned to the Joint United Nations Programme on HIV/AIDS (UNAIDS); the International Agency for Research on Cancer (IARC); the International Computing Centre (ICC); the African Programme for Onchocerciasis Control (APOC); the Global Fund to fight AIDS, Tuberculosis and Malaria (TGF); and the International Drug Purchase Facility (UNITAID). It excludes, however, those staff funded from UNDP and staff appointed under the Associate/Junior 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 and other entities full long-term liability for the terminal emoluments of staff members, of which the present value at 31 December 2007 is estimated at $ 163 million.
2006-2007
2004-2005
Balance as at 1 January 2006 and 1 January 2004 Income Provision for terminal payments Interest Total income Expenditure Repatriation grant Accrued annual leave Repatriation travel Removal on repatriation End-of-service grant Abolition of posts Separation by mutual agreement Termination for reason of health Total expenditure Balance as at 31 December 2007 and 31 December 2005
56 409
52 911
23 407 5 327 28 734
15 120 2 280 17 400
6 331 6 448 1 343 2 713 236 1 290 7 755 145 26 261 58 882
5 061 4 849 1 332 985 194 804 582 95 13 902 56 409
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Schedule 11 Supply services funds (trust funds) as at 31 December 2007 (in thousands of US dollars)
These include funds deposited with the Organization, usually in local currencies, by governments and institutions for the purchase of medical supplies, equipment and literature on their behalf. 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.
Balance 1 January 2006
Receipts 2006-2007
Expenditure 2006-2007
Balance 31 December 2007
Countries United Nations sources Iraq (SCR 986) Other Total - United Nations sources Total
7 896
126 244
122 546
11 594
(1) 1 718 1 717 9 613
1 2 426 2 427 128 671
3 669 3 669 126 215
475 475 12 069
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Schedule 12 Staff Development Fund as at 31 December 2007 (in thousands of US dollars)
In 2004, the Director-General established the Staff Development Fund to permit sustainable investment in the area of staff development. It is funded by a budgetary provision set for the biennium 2006-2007 at 2% of fixed term staff costs. The funds are allocated by the Global Learning Committee against 6 learning priorities.
Income and expenditure 2006-2007
2004-2005
Balance as at 1 January 2006 and 1 January 2004 Income Provision for staff development Total income Expenditure Africa The Americas South-East Asia Europe Eastern Mediterranean Western Pacific Global and interregional activities Total expenditure Balance as at 31 December 2007 and 31 December 2005
2 735
12 173 12 173
10 271 10 271
1 073 790 759 703 613 512 3 092 7 542 7 366
554 972 439 761 513 431 3 866 7 536 2 735
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Schedule 13 Financial implementation by category of expenditure and sources of funds Financial period 2006-2007 (in thousands of US dollars)
Sources of funds Voluntary Fund Special Account for Servicing Costs Other funds including United Nations sources Total
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, translation, printing, data processing, and other operations Supplies and materials, rental and maintenance of premises and equipment, stationery, utilities and communications Supplies and services in kind Acquisition of furniture and equipment Acquisition and improvement of premises Fellowships and other educational activities Direct financial cooperation General project costs - The Americas Other expenditure, including programme support costs and joint activities with the United Nations
542 446 74 553 3 041 6 754 340 380 21 503 590
% 60.3 8.3 0.3 0.8 0.0 0.0 2.4 0.1
239 884 282 720 27 328 61 654 135 3 74 635 11 934
% 12.5 14.9 1.4 3.2
99 156 32 378 270 162 866 265 4 316 6
% 43.7 14.3 0.1 0.1 0.4 0.1 1.9
53 829 19 821 2 034 10 528 2 9 603 26 710
% 13.9 5.1 0.5 2.7 0.0 2.5 6.9
935 315 409 472 32 673 79 098 1 343 648 110 057 39 240
% 27.4 12.0 1.0 2.3
3.9 0.6
3.2 1.1
56 489
6.3
306 660
16.1
8 705
3.8
54 036
14.1
425 890
12.4
58 913 17 630 1 628 28 737 41 424 42 657
6.6 2.0 0.2 3.2 4.6 4.7
279 364 47 547 46 349 6 449 43 600 330 140 26 551
14.6 2.5 2.4 0.3 2.3 17.3 1.4
43 201 14 420 1 734 366 514 13 349
19.1 6.4 0.8 0.2 0.2 5.9
148 226 5 444
38.4 1.4
529 704 47 547 83 843 9 811 81 376 391 186 86 438
15.5 1.4 2.4 0.3 2.4 11.4 2.5
8 673 19 108 3 881
2.2 4.9 1.0
1 541 898 626
0.2 100.0
126 489 1 911 442
6.6 100.0
6 838 226 546
3.0 100.0
24 696 386 591
6.4 100.0
159 564 3 423 205 (324 940) 3 098 265
4.7 100.0
Sub total Eliminations (see Statement I) Total - WHO programme activities
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Glossary of budgetary and financial terms 2006-2007 This glossary of budgetary and financial terms provides an explanation of the main terms used in the two documents that present the WHO financial framework. The Programme Budget is approved by the Health Assembly and is a plan in programmatic terms for the work of the Organization in the biennium. The Financial Report, which is audited on a biennial basis, provides information on the actual income and expenditure of the Organization and shows the assets and liabilities at the end of each year. The report of the External Auditor is presented along with the Financial Report and enables Member States and other readers of the Financial Report to know that an independent audit has taken place and whether there are any significant issues that require attention. The External Auditor also gives an opinion on whether the Financial Report for the biennium presents fairly, in all respects, the financial position of the Organization. Account: a formal record of an asset, liability, revenue or expense in which the effects of transactions are indicated in terms of money or some other unit of measurement. Accounting, cash basis of: the method of recording transactions by which income and expenditure and other costs are recorded on the basis of actual collection or disbursement of cash in a given period. Accounts payable: accounts showing amounts due to be paid to creditors. Accrual basis of accounting: the accrual basis of accounting for revenue in each financial period means that income is recognized when it is due and not when it is received. Accrual of expenditure in each financial period means that costs are recognized when obligations arise or liabilities are incurred and not when payments are made. Appropriation: an amount voted by the Health Assembly for a specified purpose and for a financial period. This represents a ceiling, a maximum figure against which regular budget obligations may be incurred. Effective appropriation: represents the amount of the appropriation after taking into account any transfers which the DirectorGeneral is authorized to make between appropriation sections. Appropriation resolution: a resolution by the Health Assembly approving the regular budget appropriations for a financial period and their financing. The appropriation resolution also notes the amount of the expenditure in the Programme Budget to be financed from voluntary contributions. Assessment, scale of: a scale established by the Health Assembly to apportion the amount required for the regular budget net assessments of the Organization for a given period among Member States. Budget: a plan in financial terms for the carrying out of a programme of activities in a specific period. A programme budget focuses upon the work to be undertaken and the objectives sought through that work: it emphasizes the ends to be achieved and translates them into the costs required for their implementation. Decisions relate both to resource levels, financing and to results to be achieved. Budget, effective working: represents that part of the approved regular budget against which the Director-General is authorized to incur obligations. Budget, working: the working budget comprises allocations from the regular budget and voluntary contributions and represents that part of the programme budget that has been allocated as adjusted by transfers between appropriation sections and/or Offices. Disbursements: payments in cash. Exchange rate hedging: this mechanism seeks to maintain the level of the budget so that the activities represented by the budget approved by the Health Assembly may be carried out irrespective of the effect of any fluctuation of currencies against the US dollar. Expenditure: amounts charged against income in a given period, whether disbursed or not, against appropriations or voluntary contributions.
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Fund accounting: 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. Imprest account: a fund or an account established with a fixed amount and maintained at that level by periodic replenishments of the sums disbursed. Generally, imprest accounts are used for making payments in Country Office locations. Internal borrowing: a mechanism by which, once the Working Capital Fund has been fully utilized, other available funds are used in order to finance regular budget implementation pending the receipt of assessed contributions. Internal borrowing is reimbursed when Member States pay their arrears of assessed contributions. Liability: a present obligation of the Organization arising from past events, the settlement of which is expected to result in an outflow of resources from the Organization. These include: i. Contributions or payments received in advance; ii. Borrowings payable within one year; iii. Unliquidated obligations; iv. Accounts payable, including inter-fund balances payable and other accounts payable; v. Other funds and special accounts; vi. Other liabilities; and vii. Borrowings payable after one year. Obligation: an engagement involving a liability against the resources of the current financial period. Obligation, unliquidated: an obligation or that part of an obligation which has not been settled. Revolving fund: a fund established so that income from specific activities may be used to cover the costs of those activities. Any surplus may be carried forward to a future period. Savings on unliquidated obligations and accounts payable: the balance remaining within unliquidated obligations or accounts payable after payment of all liabilities under those obligations. Tax equalization fund: a fund which is credited with the revenue from the staff assessment plan for each Member State and which is reduced by refunds to staff for income taxes levied by Member States on the emoluments of their nationals or others liable to such taxes. Unobligated balance: that part of an appropriation, contribution or allotment which has not been obligated. The unobligated balance of regular budget appropriations at the end of the financial period could either be funded in total, in part, or not at all depending on the extent to which assessed contributions have been collected. Any funded part of the unobligated balance of regular budget appropriations is credited to miscellaneous income. The unfunded part of the unobligated balance of regular budget appropriations represents the amount of the budget appropriations that cannot be implemented. The unfunded part is credited to miscellaneous income only when the underlying outstanding assessed contributions are collected. Working capital fund: a fund established by the Health Assembly for the purpose of financing regular budget implementation pending the receipt of assessed contributions. Withdrawals from the fund are reimbursed when Member States eventually pay their arrears of assessed contributions.