Audit financial report for the financial period 1 January 2004-31 December 2004

t- *i- AFRICAN PROGRAM ME FOR ONC HOCERCIASIS @ CONTROL 19 July 2005 Audited Financial Report for the Financial period 1 January 2004- 31 December 2oo4 AFRTCAN PROGRAMME FOR ONCHOCERCTASIS CONTROL STATUS OF FUNDS IN WHO . FOR THE YEAR 2OO4(EXPRESSED IN US DoLLARS) BA,LANCE BROUGHT FORWARD _ 1 ]ANUARY 2OO4 FUNDS RECETVED INCLUDING AD]USTMENTS AND REFUNDSwoT!?-qflK (rRANSFras Fno,i-iii'specrAl AccouNr FoR rHEAFRTCAN PROGRAMME rON OTICTTOCEIL,AS,S CONTROL (APOC)) TNCOME chi ef 2 277 6s6 1_0 000 000 10 000 000 210 030 303 691 37 563 551 284 10 551 284 a2 828 940 ============= MTSCELLANEOUS INCOME TNTEREST EARNED SAVINGS (DEFTCTT)-ON PRIOR YEARS' UNLIQUIDATED OBLTGATTONSorHER, TNCLUDTNc' neruruoi -ar.ro-riL'6ares SUB-TOTAL: FUNDS RECEIVED SUB-TOTAL: MISCELLANEOUS INCOME TOTAL : INCOME TOTAL : FUNDS AVAILABLE EXPENDITURE (ANNEX 1) L2 639 829 BALANCE AT 31 DECEMBER 2OO4 (HELD BY WHO IN APOC TRUST TUruO) us$ 1-89 1_11 II / BREN ___:===--__ MARK WARREN comptroller a.i. 0: ! .) I(- )I t t U ntant lnE el ) 0" ANNEX 1. AFRICAN PROGRAMME FOR ONCHOCERCIASTS CONTROL SUMMARY OF EXPENDITURE TN WHO BY PROGRAMME ACTIVIW UNDER 2OO4 BUDGET FOR THE YEAR 2OO4 (EXPRESSED IN Us DoLLARS) PROGRAMME ACTTVIry ]. ANNUAL COSTS MANAGEMENT]-.1.1 COMMUNITY DIRECTED TREATMENT WITH IVERMECTINL.L.2 ADMTNTSTRATTVE sUPPoRT GENEVA (NDGO LTAISON) STATUTORY MEETING MACROFIL PRO]ECT TOTAL - ANNUAL COSTS 2 CAPITAL ITEMS OFFICE FURNITURE DATA PROCESSING EQUIPMENT TECHNTCAL EQUIPMENT TOTAL - CAPITAL ITEMS TOTAL - AFRTCAN PROGRAMME FOR ONCHOCERCIASTS 11- 865 854 tL 4L4 276 45L 578 APPROVED BUDGET EXPENDTTURE UNOBLTGATED BALANCE L.L (4 28 56 s10) 399)(r1,.21.3 88 000 l-70 000 700 000 92 s10 298 399 643 999 001 L2 823 854 L2 449 L84 374 670 2.t 2.2 2.3 45 000 15 000 30 000 22 059 s8 63s 109 951_ 22 94L(43 63s)(79 9s1) 90 000 1-90 64s (100 64s) L2 9L3 854 L2 639 829 274 025 ot d l;ilc'1 I, 1T ANNEX II AF'RICAN PROGRAMME FOR ONCHOCERCIASIS CONTROL STATUS OF FLINDS IN WHO for the yetr 2004 EXPLANATORY NOTES STATEMENT OF OBJECTIVES AND ACTTWTIES 1.1 The objective of the African Programme for Onchocerciasis Control (APOC) is to control onchocerciasis in those nineteen African countries that are outside the former Onchocerciasis Conkol Programme in West Africa (OCP) and so to eliminate onchocerciasis as a disease of public health and socio-endemic importance throughout the Continent of Africa. I To achieve this objective, APOC aims to establish sustainable community - directed ivermectin heatment in the endemic areas of the countries concerned, reinforced by vector contol in selected and isolated foci. To this end, the governance, managernent, operafions and donor fund raising for APOC is closely coordinated by the Committee of Sponsoring Agencies. The World Health Organization (WHO) is the Executing Agency of the Programme. In the field of operational research collaboration has been established with the Trust Fund for the TINICEF/LINDPAMorId Bank/WHO Special Programme for Research and Training in Tropical Diseases (TDR), to the benefit of onchocerciasis control throughout Africa. 2. STATEMENT OF ACCOTINTING POLICIES 2.L. General accounting policies. The accounts of APOC are maintained in accordance with the Financial Regulations and Financial Rules of WHO. The accounting policies and financial reporting practiJes applied in APOC are therefore based upon the WHO Financial Regulations and Financial Rules and, in so far as is not otherwise provided for in those FinanciaiRegulations and Financial Rules, on the United Nations System Accounting Standards G[NAS). 2.2. Presentation offinancial statements. The financial statements, schedules, notes and accompanylng tables are presented in US dollars. All assets and liabilities, including accounts receivable and payable, are maintained globally within WHO,s books of account. 2.3. Foreign currency translation. ,-.'1.. .,. Translation into US dollars of transactions expressed in other currencies is effected at the /'.,,',':r'-^ti;prevailing United Nations accounting rate of exchange, as applicable at the date of the li ".' ;'triinsaction. However, imprest account expenditure transactions are accounted for at theilr" ,:-l !. 1.,',. t''D \t .^. /'/' '--- \lt# u. r. r - a.\. -,1, - 1.2. 2accounting rate of exchange in effect at the date expenditures are recorded in the ma-in accounts. Assets and liabilities held in other currencies at the end of the financial period a-re also hanslated 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 a financial period, the rates used "as of 31 December" are those in force on 1 January of the subsequent year. [n the current financial period, no substantial change occurred between the exchange rates in force at the end of the financial period and those in force on I January 2005. 2.4. Interest income APOC funds are invested by WHO. Interest earned on funds in accounts invested on a pooled basis is apportioned monthly in proportion to the accounts' capital at the end of each month. Earnings on invesfrnents made for specific funds are credited directly to the funds concerned. lnterest is adjusted by the exchange differential arising from currency operations. lnterest earned and apportioned during the financial period to specific WHO/APOC accounts is retained for use within those accounts and funds. 2.5. Savings on unliquidated obligations, Unliquidated obligations relating to prior financial periods are settled during the current financial period in accordance with Financial Regulation 4.5. Variances on settlement are debited/credited to the relevant Trust Fund sub-accounts. 2.6. 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 at current rnarket 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 I 1.1, funds not required for immediate use may be invested. All invesfinents are carried out within the framework of investment policies approved by the Director-General of WHO. These policies are regularly reviewed by the WHO Advisory lnvestrnent Committee, which includes external investment specialists. The Committee makes recorlmendations to the Director- I General as and when the Committee considers it appropriate. The investrnent policy reflects the nature of the WHO fi.rnds, which may be held for the short term, pending programme t implementation, or for the longer term in order to meet liabilities under the WHO Staff Health Insurance Fund and other long-term funds of the Organrzation. Investments are recorded at current market value and investrent income is recorded on an accrual basis. APOC investments are shown on the balance sheet of WHO. 2.7. Non-expendable equipment, ln accordance with established accounting policy, non-expendable equipment (including fumiture, computers and other office equipment and motor vehicles) is charged to expenditure at cost. An inventory of non-expendable equipment is maintained and the value disclosed in these notes. ( (c 1) t. J2.8, fncome 2.9. Ewenditure APOC expenditure ( obligation, which has not sheet of WHO as an unliquidated obligation. obligations) is recordedlj on an accrual basis. That part of anyet been paid, i.e, an outftanding liability, is shown on the balance 3. NOTES TO THE s OF s 3.1. Unitcd Nations Jotnt Staffpension Fund 3.2 Staff Health fnsurance The balance of the WHO SHI fuhd as at 3l D satisfii statutory reserves, as follows: APoc staff are covered by wHo's Staff Health p*-"". Income of the wHo staffHtfl9 lnzurance (sHI) firnd consists of *ot iu"iiorfr"".ir"a for both active and retiredstaff (of which one-third is paid by the participants uli t-,ro-tniras by the organizatton), aswell as interest eamed on inveshrents. In oraLlo ;il the adequate funding of futureclaims from retired s3fi u fixed percentagr t"o"nui irlrl oractive staff contributions isset aside each year. The rerraining 75%;f contributiohs is required to meet current claimsfrom active staff. ecembfr 2004 (US$ 290,243,396) is hetd ro r :lt, J 431 Deoember 2404 .lI Decqnbet 2003 ll,ML,025 218,020,000 Setdcnoem of outstanding claims (SHI rule 470-l) Future cos6 of rctirad staff (SHI rule 470 -Z'1+ Reservc fu rnajor claims ard cost oI reinsurance (SHI rule a703) Balance 267 + fhc mo* rcent acararial rahation of fte fuore oost of rcdred staff, daod July 20O1, estimates ao AocumulabdPost-rctiremetrt B€,Defit Obligation (APBO) forretireee of $ 370 nrilliqg (Jurs 20ffi,52245 millioa) 3.3 Cash, depostb and securtties The managernent of cash, deposits and securities for APOC is cauied out by WHO 3.4 No nap e ndable e qu ipm ent The total value at cost at the qrd of the last financial perio4 on 3l Decernber'2004, was US$ 683,885 (31 Dece,mber 2003 - US$ 708,872)" Afurrinistrative Waivers, and Frauds There were no administlative waivers, frauds or other irregularities Contingent liabilitics As of 31 December 2004, there were no legal proceedings pending against the Programme" 3.5 3.6 I , rqt ( ( t ' l.: J 5 ANNEX ITI I BUDGET SITUATION T\e2004 budget, which was prepared at the rate of 550 Francs CFA to 1 US dollar was executed at an average rate of 532 Francs CFA to 1 US dollar. At the end of 2004, an unobligated amount of US$ 274,025 remained which represented 2.12% of the total approved budget for 2004 of US$ 12,913,854. The analysis of expenditure compared to budget for 2004 is shown below under headings II Savings and III Over- expenditure. II Savings Ir. 1. Management : community Directed rreatment us$ 451,57g with Ivermectin (CDT[) The unobligated balance under this section of the approved budget is 3.81% of the amount approved. This balance results mainly from a number of country CDTI projects which were not implernented during the year 2004. This non-implementation was due to: i) civil unrest in counhies like Burundi (Rutana, Bururi CDTI projects) and South Sudan(East Equatoria, West Bahr el Ghazal, Upper Nile CDTI projects). The insecurity situation hindered the implementation of the onchocerciaisis control activities planned and budgeted for 2004; ii) the post-war situation in countries like Angola (Bengo, Huila, Kuando-Kubango CDTI projects) and Liberia (Southeastern CDTI project) created long delays in the implementation of the budgeted funds;iii) the co-endemicity of Loa loa and onchocerciasis in some projects in Democratic Republic of Congo and Cameroon, lead to the suspension of the implementation of CDTI activities in these projects while waiting for the completion of Rapid Epidemiological Assessment (REA) and /or Rapid Assessment Procedure for Loa-loa (RApLbA) exercises; iv) the non-compliance of some projects with the financial rules of WHO/APOC delayed the transfer of funds to those projects, or necessitated a complete suspension of funding. v) the development of post-APOC sustainability plans by the country projects which have benefited from five years of financing from APOC Trust Funds has-always been a very long process delaying funding by APOC of more than I 7 CDTI projecis which were within the budget approved for 2004. II.2. Macrofil project US$ 56,001 The unobligated balance under this section of the approved budget is 8%. This was due to the balance which was not claimed by TDR Macrofil iniOOq. ,,1! / I a 'l , ( l{ ( I 6 II.3. Office furniture us$ 22 941 Saving of 50.98 o/o for this budget line item was due to the recovery of furniture for the Office of the Translator from equipment donated by OCP, as well as the repair/refurbishment of some of the fumiture previously earmarked for replacement. Also furniture for the office of the Information officer was not required, as the recruitment did not take place. IIII. Over - Expendtture III.1. Management: Administrative support Geneva (NGDO Liaison office) (us$ 4,510) The budget deficit is 5.13%. This results from duty travel, specifically for the participation of the NGDO Coordinator in the JAF 10 meeting in Kinshasq and for the replacement of his laptop. III.2. Statutory Meetings (us$ 128,399) This budget line itern has been overspent by 75.53% due to:(i) the increase in the number of days of the Technical Consultative Committee (TCC) meetings from five days to six days;(ii) the use of invited experts by the TCC to comply with the increasing number of project reports to be studied;(iii) the participation of some national coordinators in the TCC meetings to facilitate better understanding of the way activities and reporting should be done (capacity building);(iv) the participation of invited experts to the tenth Joint Action Forum (JAF) session in Kinshasa (DRC) to assist APOC management deal with special issues;(v) special technical assistance given by APOC to the National Onchocerciasis Task Force (NOTFy DRC for the preparation of JAF10. III.3. Data processing equipment (US$ 43,635) This deficit occurred due to the need to replace computers which were over five years old and which were therefore no longer suitable for the latest software. ln addition, newly recruited staff (Finance Officer, Translator, Information System Officer) were provided with computers. III.4. Technical Equipment (us$79,9s1) The deficit against this budget line item is due to the allocation of funds made for the purchase of GPN equipment. ( t I *i N \\?r rll o