Onchocerciasis control programme status of funds statement as at 31 december 1992: opinion of the external auditor

Onchocerciasis Control Programme in West Africa Programme de Lutte contre I'Onchocercose en Afrique de I'Ouest rolNr prRoc\1lt%i.?,HylrrEE JpC - CCp coMIrEBcoNr".,Ililr..t?ocRAMME JOINT PROGRAMME COMMITTEE Fourteenth session Luxemboure. 7- l0 December 1993 JPCI4.l I ORIGINAL: ENGLISH September 1993 Provisional ae,enda item 8 ONCHOCERCIASIS CONTROL PROGRAMME STATUS OF FUNDS STATEMENT AS AT 3I DECEMBER 1992 OPINION OF THE EXTERNAL AUDITOR To : The Joint Programme Committee of the Onchocerciasis Control Programme I have examined the appended Status of Funds Statement and Annexes I and II of the Onchocerciasis Control Programme for the year ended 3l December 1992, 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. My examination included a general review of the accounting procedures and such tests of the accounting records and other supporting evidence as I considered necessary in the circumstances. As a result of my examination, I am of the opinion that the Statement and Annexes present fairly the financial position at 3l December 1992 and the results of the operations for the period then ended; that they were prepared in accordance with the stated accounting policies which were applied on a basis consistent with that of the preceding financial period; and that the transactions were in accordance with the legislative authority of the Onchocerciasis Control Programme and the Financial Regulations of the World Health Organization. I have no observations to make on these financial statements (signed) C.L. Press Director, International for Comptroller and Auditor General, United Kingdom External Auditor JPCl4.l I page 2 World Health Organization Avenue Appia Geneva, Switzerland ONCHOCERCIASIS CONTROL PROGRAMME STATUS OF FUNDS AS AT 3I DECEMBER 1992 (EXPRESSED IN US DOLLARS) Balance Brought Forward - I January 1992 Income Funds received including adjustments and refunds wHo World Bank (transfers from its Special Account for the Onchocerciasis Control Programme) Sub-total : Funds received Miscellaneous income Interest earned Sale of equipment and material Savings/(Deficit) on prior years unliquidated obligations Other, including refunds and rebates Sub-total : Miscellaneous income Total : Income Total : Funds available Obligations (See Annex I) Disbursements Unliquidated obligations (signed) John E. Morgan Chief, Accounts 7 376 757 500 000 30 000 000 30 500 000 r03 470 23 539 I 074 2r7 14r 390 | 342 6t6 3t 842 6t6 39 219 373 3t 716 197 Balance at 3l December 1992 (held by WHO) US$ 7 503 t76 The above status of funds statement together with Annex I, Summary of Expenditure, and Annex II, Explanatory Notes, are approved. 28 845 399 2 870 798 (signed) Edward E. Uhde Director, Division of Budget and Finance JPCr4.r l page 3 ANNEX I ONCHOCERCIASIS CONTROL PROGRAMME as at 3l December 1992 Summarv of Exoenditure bv Proeramme under the 1992 budeet (expressed in US dollars) Programme Activity Approved Budget Obligations Unobligated Balance l. Annual Costs l.l Office of the Director 1.2 Vector Control 1.3 Epidemiological Evaluation 1.4 Devolution 1.5 Onchocerciasis Chemotherapy Project 1.6 Administrative and Support Services I.6.1 Administration, Ouagadougou 1.6.2 Administration, Geneva 1.7 Meetings l.8 Biostatistics and Information Systems Total - Annual Costs 2. Caoital Items 2.1 Buildings 2.2 Furniture 2.3 Vehicles 2.4 Technical equipment 2.5 Data processing equipment 2 196 000s 2 155 665 727 000 22 36s 000 I 803 000 964 000a 743 449 2t 608 t72 t 626 766 t 237 051 (16 449) 7 56 828 176 234 (273 0st)b 40 335 b. (64 244) (58 577) 66 621 54 658 2 ss8 000 340 000 305 000 2 622 244 398 577 238 379 288 000 233 342 31 546 000 30 863 64s 682 355 l0 000 25 000 597 000 198 000 77 000 (5 e66) (28 277) 3r 012 46 430 tt 249 15 966 53 277 56s 988 r5r 570 65 75t Total - Capital ttems 907 000 852 552 54 448 Total - Onchocerciasis Control Programme 32 453 000 3t 7t6 197 736 803 a Original Programme budget, approved by JPCl2. The Chairman of the Committee of Sponsoring Agencies approved increases for Devolution (to US$ I 192 963) and the Onchocerciasis Chemotherapy Project (to US$ 2 446 485). The total Programme budget was unchanged. b As a result of the budget increases at a above, there was a deficit of US$ 44 088 on the Devolution programme and a saving of US$ 290 820 on the Onchocerciasis Chemotherapy Project. JPCl4.l I page 4 ANNEX II ONCHOCERCIASIS CONTROL PROGRAMME STATUS OF FUNDS AS AT 3I DECEMBER 1992 EXPLANATORY NOTES I. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies and reporting practices applied in the World Health Organization (WHO) reflect the requirements of the Financial Regulations and Financial Rules approved by the World Health Assembly. The status of funds Statement and Annex I are prepared on a basis consisrent with the accounting policies applied to the WHO consolidated financial statements. (a) (b) (c) (d) (e) (f) (e) The significant accounting policies are: The Onchocerciasis Control Programme (OCP) trust fund and supporting Annex I, Summary of Expenditure, are presented in US dollars. The current assets and liabilities of the OCP are maintained within the WHO Consolidated Statement of Assets and Liabilities. Disclosure of current assets and liabilities in the OCP status of funds statement is restricted to the balance of the fund and unliquidated obligations. Current assets and liabilities (including unliquidated obligations) in respect of OCP funds held in other currencies at the end of the financial period are usually translated into US dollars at the United Nations accounting rate of exchange prevailing on 3l December. However, when a substantial change occurs in the relationship between currencies at the end of a financial period, the exchange rates used to translate funds held in such currencies as at 3l December into US dollars are those in force on I January of the subsequent year. These rates are set by common agreement within the United Nations system prior to 3l December. Since in fact there was no substantial movement in exchange rates at the end of 1992, the rates of exchange used as at 3l December 1992 were those in force for that month. Stocks and equipment are charged in full to the OCP trust fund as expenditure in the year of purchase and recorded in the project and office inventories of the Programme. The value of the headquarters land and buildings owned by the OCP at Ouagadougou, as shown in the WHO Consolidated Statement of Assets and Liabilities, amounted to $ 650 347 at 3l December 1992. This value is equal to the cost at the time of construction. No adjustment has been made for depreciation, appreciation or fluctuation in currencies. Contributions in kind received by the OCP are noted in the accounts at the value stated by the donor. Income and expenditure items in currencies other than US dollars have been recorded at the UN operational rates of exchange prevailing at the date of each 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 accounts. (h) Exchange differences are included in miscellaneous income. IJPCI4.I I page 5 (i) Funds drau'n from the World Bank are taken into the OCP account when the WHO requests cash to be remitted. Other OCP income, including interest earned, is recorded on a cash basis (i.e. when actually received). OCP expenditure is recorded on an accrual basis (i.e. obligations for the current financial period are charged to expenditure whether paid or unpaid). (i) 2. BUDGET SITUATION The 1992 budget was drawn up at a rate of 285 CFA francs to the US dollar and implemented at an effective mean rate of 264 CFA francs. In spite of this the budget was underspent by US$ 736 803. 2.1. Savines Vector Control Prograntnte aclittit), (VCU) US$ 756 828 The Vector Control Programme, which accounts for over 600/o of the total budget, was able to make a substantial saving. Although the budget was exceeded for insecticides, aerial operations, miscellaneous supplies and consultants, this was offset by savings on travel, staff costs, operating costs and the national teams. Epidentiological evaluation US$ 176 234 A saving of almost 100/o was made on the approved budget. This saving related principally to staff costs, consultants and travel, whereas there was some overspending on operating costs, miscellaneous supplies and the national teams. Meetings US$ 66 621 There were fewer participants to the various meetings than anticipated at the time the budget was drawn up. Biostatistics and inforntation s-I's/er?ts US$ 54 658 Savings were made on all budget lines, execpt for contracts. Capital itents US$ 54 448 Savings were made on computer equipment, vehicles and technical equipment, which more than offset the additional spending on office equipment and buildings. Onchocerciasis Chentotherapy Proiect (OCT) US$ 290 820 An additional amount of US$ 250 485 was approved by the Committee of Sponsoring Agencies for this budget. However, fewer research contracts were signed than anticipated, thus creating a saving. 2.2. Over-exoenditures There were budget deficits on some activities, but all were absorbed within the overall budget. iJPCI4.I I page 6 Devolutiort US$ (44 088) A special increase in the budget of US$ 228 963 approved by the Committee of Sponsoring Agencies during the course of the year partly offset the deficit arising from a near twofold inirease in the number of fellowships awarded to students from Participating Countries. Adntinistration and Support Services US$ (122 821) (Ouagadougou and Geneva) Savings made on travel and supplies were more than offset by under-budgeting for staff costs. of lice of the Director us$ (16 449) The deficit was mainly due to expenditure on staff costs, miscellaneous supplies and operating costs being higher than expected. 3. LARVICIDE AND FUEL STOCKS Stocktaking of larvicide and aviation fuel in the Programme area at the end of 1992 showed a loss of US$ 301 965 for the year, principally due to theft and to losses incurred during larvicide application. This loss represents 5.50/o of the total value of the larvicides and fuel used in 1992, which is within the tolerated threshold of 5-70/o approved by the Joint Programme Committee at its seventh session in Accra in 1986. The loss represents 2.5o/o ol the total value of larvicides and fuel available to the field stations in 1992. 4. CONTRIBUTIONS IN KIND ln 1992, WHO recorded under the Voluntary Fund for Health Promotion, Special Account for Miscellaneous Designated Contributions (Other), a contribution for the Programme of US$ 7 200 000 from the pharmaceutical company Merck, Sharp and Dohme. This was received in the form of 2 400 000 ivermectin tablets, valued at US$ 3 each. I