Financial report and audited financial statements for the year ended 31 December 2013

AFRICAN PROGRAMME FOR ONCHOCERCIASIS CONTROL and Audited Financial Statements for the year ended 31 December 2013 Ir' 1.1 ts .'#* qilgltd' I t. r.*.EE irc ;i! { LE lr :. {1 F* PROVISIONAT AGENDA ITEM 17 World Health 0rganizationwww.wha.int/ap*c ( The WHO African Programme for Onchocerciasis Control Financial Report and Audited Financial Statements for the year ended 31 December 2013 AFRICAN PROGRAMME FOR ONCHOCERCIASIS CONTROL Tab1e of contents Introduction Certification of the financial statements for the year ended 31 December 2013 Transmittal letter and opinion of the External Auditor Statement I: Statement of Financial Position Statement II: Statement of Financial Performance statement III: Statement of changes in Net Assets/Equity Statement IV: Statement of Cash Flows ' statement v: statement of comparison of Budget and Actual Amounts Notes to the Financial Statements . . ' 1. Basis ofpreparation and presentation 2. Significant accounting policies 2.1 Cash and cash equivalents .. ' 2.2 Accountsreceivables 2.3 DePosits . 2.4 Plant, property and Equipment (PP&E) 2.5 Accounts payable and accrued liabilities ' 2.6 EmPloYee benefits 2.7 Provision and contingent liabilities ' 2.8 Contingent assets 2.9 Revenue.... 2.10 ExPenses 2.11 Fund accounting 2.12 Segment RePorting 2.13 Statement of CashJlows . ' 2.14 Budget comParison to actuals ' 4 7 8 11 T2 13 13 14 15 15 16 16 16 76 16 77 77 18 18 18 18 18 79 79 19 !, o Gl E lrlo =Ul(, uo G' o tuoz lrt E lr| ul - E olt o zl! - ul E o 3 oz =lr oltl ts o :, o = c oAlllE :!oz - lt 6 oE s J o mF e o a a s(l c t.t(} e (} c (} l& :1, E a a g, Itr l&{ 2 3. Supporting information to the Statement of Financial Position 3.1 Cash and cash equivalents . .. 3.2 Accountsreceivables 3.3 Staffreceivables ... 3.4 Inter entity receivables 3.5 Deposits . 3.6 Property, Plant and Equipment 3.7 Accounts payables .... 3.8 Staffpayables . .. 3.9 Accrued staff benefits 3.10 Other current liabilities 4. Supporting information to the Statement of Financial Performance 4.1 APOC Trust Fund contributions. 4.2 Voluntary Contributions . . .. 4.3 Financial Revenlte 4.4 Other operating revenue 4.5 Finance Costs . 4.6 Expenses . 5. Utilization of Programme Budget . 6. Comparison of budget and actual amounts 7. Write-off and ex-gratia payments . 8. Related party and other senior management disclosures 9. Events after the reporting date . 10. Contingent liabilities, commitments and contingent assets 20 20 20 20 20 20 20 2t 27 22 28 29 29 29 29 29 29 30 31 31 JZ 71 32 c, oN G lrt!! =l!olrl o C, o ut oz lrt a ut tut EoE o 2rI =utt6 :<(, z z lr o ut E oD oz E oG uttr 6z zlr a 6 o o. * Js L * 4; dj # = u* sE(t z(? eu UJ E H ,{ u o otr o. il ,{g IL 3 Introduction Financial background The 2013 Financial Report of the World Health Organization-African Programme for Onchocer- ciasis control (WHO/APOC) will be presented to the 20th session of the loint Action Forum (JAF) in Decembe r 2O74.The statutory components of the financial report have been audited by the WHO external auditors, the Republic of the Philippines Commission on Audit, whose opinion is included in the Financial RePort. This is the second year in which the financial report is prepared based on the International Public Sector Accounting Standards (IPSAS). In accordance with IPSAS requirements, the Financial Report is prepared on an annual basis. In line with standard procedures, the lay out of this report is broken down into two main parts, the flrst part presents the financial statements and the second part presents the notes to the accounts and additional supporting information. The application of IpSAS has provided improved comparability of financial results both within periods and across entities;harmonization of procedures;transparency and accountability in the financial reporting. By adopting accounting standards that have been rigorously reviewed by independent third parties, ApOC financial statements can be viewed with increased confidence by its governing bodies and partners, as well as the international community at large. Financial highlights The Statement of Financial Performance reports total revenue of US$ 78,497,067 against total expenditure of USg 17 ,g07,767. The resulting net surplus amounts to US$ 583,294. The major contributor to the 2013 revenue is the APOC Trust Fund, administered by the World Bank for a total of US$ 16,666,400. Out of the total revenue recognized in 2013, an amount of US$ 1,500,000 is related to a pass through contribution from Sabine Vaccine Institute for Neglected Tropical Diseases (NTD) activities for the AFRO region. This income was offset by a correspondlng expenditure to ensure a zero effect on the surplus of the period. Full disclosure of the transaction is made in note 4.2 to the financial statements. G, oN G uto =ul{) ut o c, olrl o2u c 1ll ul - G olt oFz tu =ul Et-o s o = - lt ogl tsof oz eor utE s o2 -lt 6 o"g J o(.: * lJt$ c$ & r3 g a?& ul = m {$0 z4li t&4 4 The statement of changes in Net assets/Equity provides information on the fund balances for all funds as at 3l December 2013, the movement during 20i3 and the closing balance on 3l December, 2012. The total net assets/equity as at 3l December 2013 was (US$ 5,651,289) against (US$ 6,234,583) in 2012. The breakdown is shown in table below. Surplus (deficit) 2012201 3Funds: APOCTrust Fund Voluntary funds Contributions - others 4,833,7s3 1,430,2"t7 (11,915,259) 1,270,476 (164,521) (s22,661) 3,s63,277 't,594,738 (11,392,598) The negative balance inthe net assets/equity attributable to "Contributions -others"of USg 11,915,259 (US$ 11,3 92,598 as at 31 Decembe r 2012) arises primarily from the future unfunded liabilities for APOC staff health insurance (please refer to note 3.9). As a way of establishing a long term mechanism to fully cover this liability, changes to the staff health insurance contribution rates have been applied. Following the recent actuarial assessment, itisexpectedthattheliabilityof US$l0.Tmillionwillreachfutlfunding inZo3T.Inaddition,the full actuarial valuation for other staff benefits such as accrued annual leave, compensation for death and disability and termtnation benefits e.g. repatriation travel and grants are also recorded as a liability in the accounts, for a total liability of USg 1.6 million, of which USg 1.3 million is unfunded. Funding pians for both these liabilities must be regularly reviewed. The 2013 APoC approved budget was US$ 23,233,ooo.The implementation rate at the end of 2013 was 70% (Refer to statement V).In December 2013, the JAF 19 approved the 2014-15 budget of US$ 50,659,000, broken down into two annual components of USg 25,015,000 for Zo74 and US$ 25,644,000 for 2015. The Trust Fund Financial report indicates that, the funds available as at 31 December 2013 amount to US$ 16,O2O,567.During the last CSA meetin g(2a-2gJune 2014), the World Bank Representative reported some positive outcomes from the resources mobilization efforts during the first semester of 2074. Despite the positive outlook of resource mobilization efforts, the existing and newly announced pledges for 2074-75may not bridge the gap and hence more pledges are needed. Until such time as pledges are confirmed, the budget will not be fully funded. Technical operations highlights APoC operations in 2013 have been implemented within the context the 2012-2013 biennial budget deriving from the 2008-2015 Strategic Plan of Action and Budget. The amendments to the initial strategic plan 2008-2015 were submitted and finally approved by the JAF in 2011 to reflect the shift of activities from control to elimination of onchocerciasis. Activities in 2013 focused mainly in intenslfying community directed treatment with lvermectin (CDTI). lvlapping of onchocerciasis, and other Neglected Troplcal Diseases were key activitres of the year under review. In terms of geographic (community) and therapeutic coverage, and ln accordance wrth the biennial targets, a total of 181,709 communities distributed ivermectin Total Net Assets/Equity 583,294 (6,234s83) o oN EIt o E trt o ut a (l) oIt o2u E !n utE E ott o z!! =utk o o2 z IL o IJJ ts o5 oz tr oA IJIE oz z tr o o.q J() trF fi$ aflq) x !e ti,t q tr# tr ,4(, E L 5 andgg316,g49 persons were treate d.in24 countries. In order to strengthen CDTI performance, ApOC supported the improvement of training modules on CDTI and the tralning of 81,520 health professionals (all categories combined) from 22 countries in various areas. More than 47 million treatments and commodities were delivered for other health interventions using the network of community volunteers built by APOC within the remote communities. Treatment for LF, schistomiasis and soil transmitted helminthiases represents 85% (4O.6 million treatments) of the interventions delivered as these 3 diseases are co-endemic in many of the countries that reported treatment in 2012 As part of the current year's activities, the independent participatory monitoring exercise was carried out in a phase V-CDTI project and confirmed that communities are not only able to distribute some drugs and. commodities; but are also able to track their project performance and find solutions to implementation constraining issues. During this reporting period, APOC continued to provide technicai and financial support to 15 faculties of medicine as well as nursing and public health schools to integrate the teaching of CDTI strategy in their training curricula' Epidemiological evaluations using skin snip biopsy were conducted in 6 countries examining 77,298 persons in 310 villages. With regards to partnership and other Corporate Management Functions, several actions were taken by the ApOC Management under the guidance of the Committee of Sponsoring Agencies (CSA). Some of them are summarized here below: . The task force set up by the African Development Bank and the World Bank, has finalized the guidelines and tools to assess Government Counterpart Funding' The report was presented and endorsed bY the JAF19. . preparation of a concept note and its strategic plan for the post 2015 period during which APOC mandate will be extended to Lymphatic filariasis and other NTDs. . preparation of the revised Plan of action and Budgets for the transitional period 2074-2015' . Revision of criteria and guidelines for certification of elimination of onchocerciasis, and reinforcement of the collaboration wlth OEPA on onchocerciasls elimination. . Creation of a Transitional Task Force (TTF) to provide technical advice to APOC and AFRO on aspects of the eliminatlon target during the transition period 2074-75. . Review of the Technical Consultative Committee (TCC) membership. The APOC governing bodies ( CSA and JAF) as well as the wHo/AFRo Regional Committee agreed on the need for a joint approach to the elimination of Lymphatic filariasis (LF) and onchocer- ciasis (Oncho) given the specific interdependency of LF and Oncho. In this persoective, the APOC governing bodies approved the transformation of APOC into a new regional entity-Programme for Elimination of Negiected Diseases in Africa (PENDA) starting January 2016' The new entity will carry over all assets and liabilities from APOC and technlcally coo' iinate the implementation of onchocerciasis and lymphatic fiiariasis eliminatlon programmls as well as provide support to other preventive chemotherapy-neglected tropical diseases. ol, 06. E uto =uloua G, olrl oz ul E ul u - E oIL o -lu =lll E IA o2 z lr o 8I E o3 o - G oAuE s oz 2lr $& s -l a ts'Z g $?g ul(} il tr t ilJq a tf u fi( z g cr LT{ 6 Certification of the financial statements for the year ended 31 December ZO13 Certification of the financial statements for the year ended 3l December 2013 The financial statements for the year ended 3l December 2012, together with the notes to the statements and supporting schedules, have been reviewed ans are approved. ,v qY il{, Nicholas R. Jeffreys Comptroller 14 luly 2014 Dr Jean-Baptiste Roungou Director, WHO/APOC 'Z w E,g I i il !ii ua i I ii *' $ g. *, r & H i x , i li: $. t.l i t it r) t t fl: *. iit' I o o GI E ul o =t!o IrI o .'!, o tI, oz!t G ut luI c olr o z UJ - ul o s o - = lt o ut E of oz E o o. ulc s(, z =E a 0,. s Js €c - r} a -q(.; g u- ut E r o o. qI l& Opinion of the External Auditor Republic of the PhiliPPines COMMISSION ON AUDIT Commonwealth Avenue, Quezon City. Philippines LETTER OF TRANSMITTAL 19 August 2014 Dear Sir/lVladam, I have the honour to present to the Twentieth Session of the Joint Action Forum. the Extemal Auditor's Report and opinion on the financial statements of the African Proglamme for Onchocerciasis Control (APOC) for the financial year ended 31 December 2013' Yours sincereli, Maria Chairpersont Tan n on Audit Republic of the Philippines External Auditor The Chairperson of the Twentieth Session of the Joint Action Forum African Programme for Onchocerciasis Control Ouagadougou, Burkina Faso G i l ). :,. o o6. El|l o =ulolrl o d! o ut ozu G lrt U -F E olt ol-2 ul Elll k o oz = lt o ut E oI o - & otrlrlE 3(, z - TL o ocg Jc F I e € 1A s t$t) o {, o 4$tl t e E{{t(t, E z c CEu{ I r v: ) at li , I E I f| I t i i I :' i.I t:, I : :,, Opinion of the External Auditor (continued) The Joint Action Forum African Programme for Onchocerciasis Control Republic of the Philippines COMI\{ISSION ON AUDIT Commonwealth Avenue, Quezon City, philippines INDEPENDENT AUDITOR' S REPORT Report on the Financial Statements We have audited the- acco_mpanying financial statements of the African programme for onchocerciasis Control (APOC), which comprise the Statement of Financial posittn as at 3lDecember 2013, and the Statement of Financial Performance, Statement of Changes in NetAssets/Equity, Statement of Cash Flows and Comparison of Buiget and Actual Amounts for theyear then ended, and the Notes to the Financial Statements. Management's Re sponsibility for the Financial Stateme nts Management is responsible for the preparation and fair presentation of these financial statementsin accordance with lnternational Financial Reporting Standards (IPSAS) and for such internal control as management determines is necessary to enable the preparation of financial statementsthat are free from material misstatement, whether due to fraud o, "ro.. Audit or's Respons ib il ity Owresponsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Intemational Standards on Auditing. Those standards require.$at we comply with ethical requirements and plan and perform tlhe audit to obtain reasonable assurance about whether the financial statements a." f.ee f.om material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor,sjudgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. ln making those risk assessments, the auditor considersinternal control relevant to the entity's pr"paraiion and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but notfor.the purpose of expressing an opirrio, on the effectivenessof the entity,s internal cono.ol. Anaudit also includes evaluating the appropriateness of a""ourting policies used and the reasonableness of accounting estimates maai Uy management, u, *"ii as evaluating the overallpresentation of the financial statements. G, oN 4 UlE Elu olll o (l o ul az ut E lrl uIE E olr .D 2 Irl =E' EFo o2 z E o ut ts o3 o a E oA utE s(,2 z tr = o o.g -t* Fz *(.) *q frEL() o () z o &o{r UI E E trg otr4{() CE t& & l!'' v,:: w, P llx i} * sa v * s$,l, n, g i, 1l t t i ii L' : l:{ i \,. t { k 11r :: a l:: I ,:,,.i' G, oN Egt o =rt(, luo o o ulo2 ul E, ut ul - E oIL o 2 lrl =ul 1t-(r, soz Ztt a lrt tsa , o2 E o4 ulc 6z z lt 6 o s J trF z o 6 s sl c"lft x t"iZs + b 6 tr It 10 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion ln our opinion, the financial statements present fairly, in all material respects, the financial position of APOC as at 31 December 2013, and its financial performance, changes in net Lsets/equity, cash flows and comparison of budget and actual amounts for the year then ended' in accordance with IPSAS. Emphasis of Matter Without qualifuing our opinion, we draw attention to Note I to the financial statements that the ApOC Giveming bodiei approved the transformation of APOC into a new regional entity- programme for Elimination of Neglected Diseases in Africa (PENDA) starting from January ZO|Z. fire new entity will cany over all assets and liabilities from APOC and technically coordinate the implementation- of Onchocerciasis and Lymphatic filariasis elimination programmos. Report on Other Legal and Regulatory Requirements Further, in our opinion, the transactions of APOC that have come to our notice or which we have tested as part of our audit have, in all significant respects, been in accordance with the WHO Financial Regulations. In accordance with Regulation XIV of the Financial Regulations, we have also issued a Long- form Report on our audit of APOC. Maria Pulido Tan on Audit Republic of the PhiliPPines External Auditor Quezon City, PhiliPPines lE August 2014 r.Hl [l[il ortrca d ila cHllt*49oi t, l: ir lt' I African Programme for onchocerciasis control Statement I: Statement of Financial position For the year ended 3l December 2013 (in tIS doltars) Cash and cash equivalents Accounts receivable Staff receivables lnter-entity receivables Deposit Propery, plant and equipment -net TOTALASSETS Current liabilities 228,636 1,s00,29s 82,347 s,230,828 7,042,106 4,576 2U,137 288,713 7,330,919 480,471 't0,829 706,519 223,453 1,421,272 1 1,560,836 11,560,936 12,992,1O9 472,423 51,1 85 7,018,925 7,542,533 5,157 294,035 299,192 7,841,725 304,778 I 05,1 30 777,176 1,704,860 2,891,944 11,184,364 11,184,364 14,O76,3O9 3.1 3.2 3.3 3.4 Itlon-current assets 3.5 3.6 . .t: 3.7Accounts payables Staff payables Accrued staff benefits Other current liabilities Accrued staff benefits - non-current TOTAT LIABILITIES lfu n-current llabllitles''' 3.8 3.9 3. t0 3.9 20122013NoteASSETS LIABILITIES o oN ElllE - ut o ut o (, ollt ozlrl E{lt lrlE g, oIL o z ut =lrlk o 6 - = tt ort E a3 oz E, oElllE oz z lt 6 &.g J tcF e o o 0t {4({ 5fr ul() o o a,0 o lijg d {5 *5 2 &lr NET ASSETS/EQUITY APOC Trust Fund Voluntary funds Contributors - other 4,833,7s3 1,430,217 (11,g'.t5,2s9) (5,651,299) 3,563,277 't,594,738 (11,392,s98) 16,234,5931 TOTATUASIL|T|fiSAI{CINETA$SHTSTGQUr?Y 2330,s1, 7,g1,7A5 The statement of signifi€ant accounting policies and the accompanying notes form part of the financial statements. 11 African Programme for Onchocerciasis Control Statement II: Statement of Financial Performance For the year ended 3l December 2013 (in uS dollars) Trust Fund contributions Voluntary contributions Finance revenue Other operating revenue TOTAL REVENUE 4.1 4.2 4.3 4.4 16,666,400 1,599,575 181,361 43,725 1&491,061 7,48'1,994 6,252,329 634,011 2,262,451 349,949 874,897 9,898 42,238 17,9O7,767 21,580,836 't84,648 204,006 75,'173 22,O44,,663 EXPENSf,S 4-6 Staff and other personnel costs Transfers and grants to counterparts General operating exPenses Travel Equipment, vehicles and furniture Contractual services Depreciation Finance costs 4.5 8,373,1't4 4,952,899 2,986,696 2,686,857 1,151,262 872,067 9,898 21,032,793 2013Note 2012 Thestatementofsignificantaccountingpoliciesandtheaccompanyingnotesformpartofthefinancialstatements. C, o6t Egt o - ut outr o alI o - ul E ut u,tF Eolr o 2lll Elll k o oz 2lr aII E o3 a - E oc ulE s oz = lt 6 o E J F2 o() 9tt 3() & trl() oI(, o cslr gl 5 (, s s' ffi4 ,* g t& 12 REVENUE African Programme for Onchocerciasis Control Statement III: Statement of Changes in Net Assets/ Equity For the year ended 3l December 2013 (in uS dollars) 20132412 Surplus/(Deficit) APOCTrust Fund Voluntary funds Contributions - others 3,563,277 1,594,738 (11,392,598) 1,270,476 (1@,s21) (s22,661) 9,898 (1,s00,295) (31,162) 't,788,097 581 175,693 (e4,301) (70,6s7) ('t,481,407) 376,472 (827,081) (243,7871 472,423 4,833,753 1,430,217 (11,915,2s9) 1,O11,87O 9,898 1,024,602 (21,239) 48,674 (3,800,817) 21,165 (7,427) 406,521 't,528,963 (789,660) 222,21O 250,213 472r'rz' Tot l t{G The statement of 5ignificant accounting policie5 and the accompanying notes form part of the financial 5tatements. AsseBlEguity (O2:]4,5a31 533.29[ (5,651,289) African Programme for Onchocerciasis Control Statement IV: Statement of Cash Flows For the year ended 31. December 20L3 (inUS dollars) Surplus 583,294 l{on-cash moy€m€nts Depreciation (lncrease) /Decrease in Accounts receivables (lncrease)/Decrease in Staff receivable (l ncrease)/Decrease in Other receivables (lncrease)/Decrease in lnter entity receivables (lncrease)/Decrease in Deposit lncrease/(Decrease) in Accounts payables Increase/(Decrease) in Accrued staff payables lncrease/(Decrease) in Accrued staff benefits lncrease/(Decrease) in Other current liabilities lncrease/(Decrease) in Accrued staff benefits_ non-current Net cash flows from operating activities Net lncrease /(Decrease) in <ash and equivalents Cash and cash equivalents at beginning of year Cashandceshequivalcntsatendofyear 3.1 2?lg,6jf. 20122013Note The statement of significant a(counting policies and the accompanying notes form part ofthe financial statements. o oN E uto =llt() EI o o olrlazlll tr IT I{rF E olt o z ut =utk U' s o 7.( - lt olll E of oz c, oA utE s(, z z l! {J#& sJ G ,- o(} at, 6 s{J u {.t, () z o .E olt *t =sd#$ o c .L 13 c, oN G ut o =Ill(, ulo o, ou o2 ur G lrl lu aF E olt o z ut =u E at, 3o2 =lr o ut E of o - G, oA utE s oz 2 lt g J o h,"tr() # ffi sii $-! € & ij' d 14 African Programme for Onchocerciasis Control Statement V: Statement of Comparison of Budget and Actual Amounts For the year ended 3l December 2013 (in IJS dollars) To establish sustainable onchocer- ciasis control programmes in all African countries where they are needed 2 To implement onchocerciasis control activities in conjunction with other health interventions (co-implementation) 3 To determine when and where ivermectin treatment can be stopped and to provide guidance to countries on preParing to stop ivermectin treatment 4 To reduce the risk of transmission of onchocerciasis from former OCP countries whose ePide- miological and entomological situation has been brought under control. To ensure that governments ultimately take full responsibility for Onchocerciasis control. 8,M,NO 6,255,788 2,210,612 74% 1,309,000 937,254 371,746 72o/o 5,279,500 1,618,872 3,660,628 31% 666,100 384,817 281,283 58o/o 1,376,400 1355,720 20,680 98o/o 6,982,97O TOVo 5 6 To cease all APOC oPerations in Africa without jeopardizing the past achievements. 7 Mainstreaming gender in APOC operations. 8 To provide adequate human resources, materials and equipment at APOC Secretariat for efficient administration and management of the Programme 1,332,200 2,548,596 -'1,216,396 191Vo 359,O73 78,365 280,708 22% 4,444,327 3,070,618 1,373,709 690/o Programme budget utilization 23,233,000 16,250,030 1,657,737Basis differences l::: ..: '] i Plan of Action and Budget (PAB) Percentage implemen- tation Specific Objective Expenditure Balance The statement of significant accounting policies and the accompanying notes form part ofthe financial statements. Total Expenses (Statement ll) No Notes to the Financial Statements 1. Basis of preparation and presentation The financial statements of the African Programme for Onchocerciasis Control (APOC) have been prepared in accordance with International Public Sector Accounting Standards (lpSAS). They have been prepared using the historical cost convention. Where a specific matter is not covered by IPSAS, the appropriate International Financial Reporting Standards (IFRS) have been applied. These financial statements have been prepared under the assumption that ApOC is a going concern, will continue in operation, and will meet its mandate for the foreseeable future (lpSAS 1). The APOC Governing bodles approved the transformation of APOC into a new regional entity- Programme for Elimination of Neglected Diseases in Africa (PENDA) starting from January 2016. The new entity will carry over all assets and liabilities from APOC and technically coordinate the implementation of Onchocerciasis and Lymphatic filariasis elimination programmes. Functional currency dnd translation of foreign currencies The functional and reporting currency of the Organization is the United States dollar. Forelgn currency transactions are translated into United States dollars at the prevailing United Nations Operational Rates of Exchange, which approximates to the exchange rates at the date of the transacttons. The Operational Rates of Exchange are set once a month, and revised mid-month if there are significant exchange rate fluctuations relating to individual currencies. Assets and liabilities in currencies other than United States dollars are translated into United States dollars at the prevailing Operational Rates of Exchange ofthe first day ofthe subsequent month. The resulting gains or losses are accounted for in the Statement of Financial performance. Materialityl and the use of judgments and estimates Materiality is central to APoC's financial statements. The organization's process for reviewing accounting materiality provides a systematic approach to the identification, analysis, evaluation, endorsement and periodic review of decislons taken involving the materiality of informatron, spanning a number of accounting areas. The financial statements inciude amounts based on judgments, estimates and assumptions by management. Changes in estimates are reflected in the period in which they become known. Financial statements In accordance with IPSAS 1, a complete set of financial statements have been prepared as follows: . Statement of Financiai Position; . Statement of Financiai Performance; . Statement of Changes in Net Assets/Equity; . Statement of Cash Flows; . Statement of Comparison of Budget and Actual Amounts; and ' Notes to the financial statements, comprisrng a summary of significant accounting policies and other relevant information. o o ol E uIE - ulo ut o G, o ulo - ul e, |rt lrlE E ott th zU =lIL r ah (, - <t =lt o tu a = az E oGlltE soz z lt 6 Q n"{ J e F t* a st:tr trl {^} o I o z, o s ) I omissionsormisstatementsof itemsarematerialif theycould,individuallyorcollectively,influencethedecisionsorassessmentsof users made on the basis ofthe financial statements. 15 2. Significant accounting policies 2.1Cash and cash equivalents Cash and cash equivalents are held at nomlnal value and comprise of cash on hand and cash at banks. 2. 2 Accounts re c e ivable s Accounts receivable are non-derivative financial assets with fixed or determinable payments that are not traded in an active market. Current receivables are for amounts due within twelve months of the reporting date, while non-current receivables are those that are due more than twelve months from the reporting date of the financial statements. Accounts receivable are recorded at their estimated net realizable value and not dlscounted as the effect of discounting is considered immaterial. An allowance for doubtful receivables is recognized when there is doubt that the receivable may be impaired. Impairment losses are recognized in the Statement of Financial Performance. 2.3 Deposits Deposits are classified as non-current assets as they are pald and held on account over the life ofthe contract. 2.4 Plant, Property and Equipment PPkE) property, plant & equipment (PP&E) with a value greater than US$ 5,000 are recognized as non- current assets in the Statement of Financial Position. They are initially recognized at cost, unless acquired through a non-exchange transaction, in which case they are recognized at fair value at the date of acquisition. PP&E are stated at historical cost,less accumulated depreciation and any impairment Iosses. APOC considers all its PP&E to be non-cash generating assets. Depreciation will be calculated (after the transition where it is applied) on a straight-line basis over the asset's useful life except for land which is not subject to depreciation. PP&E is reviewed annually for impairment to ensure that the carrying amount ls still considered to be recoverable. The estimated useful lives for PP&E classes are as follows: Buildings - Permanent Buildings - Mobile Fixtures and fittings Vehicles and transPort Office equipment Communications equiPment Audiovisual equiPment Computer equipment Network equipment Security equiPment Otherequipment 60 5 5 5 3 3 3 3 3 3 3 Asset class Estimated useful life G) o 6a E uto =ru(, lrl o G, ouozlll E ul lrl a E olt o 2 ut =ut Fo g o2 z tt ou E63 oz E oG ulE s(., Z 2 tr 6 o& E J otrt- e$ * *1 e 1.}$ * c) o tu E E t( 4fl0 ci o. z Ht(tr 16 I i The transitional provision has been applied in the initial recognition of pp&E which were purchased or donated before 01 January 2012. Except for land and building, all property, plant and equipment assets acquired prior to Ol January 2012 were expensed at the date of purchase and have not been recognized as assets in2072. As allowed under the transitional provision, other assets in the form of property, plant and equip- ment acquired during 20i3 were expensed at the date of purchase and have not been recognized as assets in 2013. 2.5 Accounts payable and accrued liabilities Accounts payables are financial liabilities for goods or seryices that have been received by ApoC, but not paid for. Accrued liabilities are financial liabilities for goods or services that have been received by ApOC and which have not yet been paid for or invoiced. Accounts payable and accrued liabilities are recognized at cost, as the effect of discounting is considered immaterial. 2.6 Employee benefits APoc recognizes the following categories of employee benefits: ' Short-term employee benefits which fall due wholly within 12 months after the end of the accounting period in which employees render the related service; . Post-employmentbenefits; . Other long-term employee benefits; and . Terminationbenefits. APOC 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 employees. The Pension Fund is a funded, multi-employer defined benefit plan. As specified in Article 3 (b) of the Regulatlons of the Fund, membership in the Fund shall be open to the specialized agencies and to any other international, intergovernmental organization which participates in the common system of salaries, allowances and other condi- tions of service of the United Nations and the specialized agencies. The plan exposes participating organizations to actuariai risks associated with the current and former employees of other organizations participating in the Fund, with the result that there is no consistent and reliable basis for allocating the obligation, plan assets, and costs to individual organizations participating in the plan. APOC and the UNJSPF, in line with the other participating organizations in the Fund, are not in a position to identify APoC's proportionate share of the defined benefit obligation, the plan assets and the costs associated with the plan with sufficient reliability for accounting purposes. Hence APoC has treated this plan as if it was a defined contribution plan in line with the requrrements of IPSAS 25. ApoC's contributions to the plan during the financial period are recognized as expenses in the statement of flnancial performance. o oN E uto =ulol|la (o olll ozgI G ul ulEF G o u. al, z ut =utk o s oz 2 tr olll E o5 oz E o4uc oz z lr sg s -.iotrF z,0() I en s(,1 u, TJ o \, o E"c tn B =qffi 15 * ddg lt{ 17 2.7 Provision and contingent liabilities Provisions are recognized for future liabilities and charges where APOC has a present legal or constructive obligation as a result of past events and it is probable that APOC will be required to settle the obligation. Other commitments, which do not meet the recognition criteria for liabilities, are disclosed in the notes to the financial statements as contingent liabilities when thelr existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events which are not whollywithinthe control of APOC. 2.8 Contingent assets Contingent assets will be disclosed when an event gives rise to a probable inflow of economic benefits or service potential and there is sufficient information to assess the probability of the inflow of economic benefits or service potential' 2.9 Revenue Revenue comprises gross inflows of economic benefits or service potential received and receivable by APOC during the year, which represents an increase in net assets. APOC recognizes revenue followingtheestablishedcriteriaofIPSAS23,"RevenuefromNon-ExchangeTransactions." Revenue malnly comprises contributions to the Trust Fund and voluntary contributions. Contributions to the trust funds managed by the world Bank are a major source of income for APOC's operations' Revenue from voluntary contributions is recorded when APOC gains control of the asset which is either when cash js received or a binding agreement is signed between APOC and the donor' ApOC considers that while there are restrictions on the use of contributions, these restrictions do not meet the definltion of a condition as described under IPSAS 23. 2.70 Expenses Expenses are decreases in economic benefits or service potential during the reporting period in the form of outflows, consumption of assets, or incurrence of liabitities that result in decreases in net assets/equity. APOC recognizes expenses at the point where goods have been received or services rendered (delivery principie) and not when cash or its equivalent is paid' 2.11Fund accounting Fund accounting is a method of segregating resources into categories, (i.e. funds) to ldentify both the source and use of the funds. Establishment of such funds helps to ensure better reporting of revenue and expenses. APOC recognizes the following funds: . APOC Trust Fund - this fund summarizes revenue and expense funded from the World Bank trust fund. . Voluntary Funds - this fund summanizes revenue and expense for all other voluntary contributions. . Contributions - others - this fund represents the movement in the asset and liability accounts of APOC resulting from accrued staff benefits, property, plant and equipment, depreciation and finance revenue/exPenses. I I C, oN E ulo =lrl(, ul o (, o uI oz ul G lrl ut aF E ott o -llt - ut kFo g o2 = E o lrlt- o a oz E oG lrlE s() - z lt 6 oG s J o( Fz o o (f, 6 *() ui$ U = o Ll 5 z u IL 18 II i I I 2.12 Segment Reporting APOC does not have any segment to report. 2.13 Statement of Cashflows The Statement of Cash Flows (Statement IV) is prepared using the indirect method. 2.14 Budget comparison to actuals APoC's budget and financial statements are prepared using different accounting bases. Budgets within APOC are approved on a modified cash basis, rather than the fu1l accrual basis of IpSAS. In addition, budgets are prepared on a biennial basis while financial statements are prepared on an annual basis. As perthe requirements of IPSAS 24,Ihe actual amounts presented on a comparable basis to the budget shall, where the financial statements and the budget are not prepared on a comparable basis, be reconciled to the actual amounts presented in the financial statements, identifying separately any basis, timing and entity differences. Basis differences include the depreciation of assets, full recognition of provisions and other non-programme budget utilization. Presentation dlfferences may occur as a result of differences in formats and classlfication schemes adopted for presentation of financial statements and the budget. Timing differences represent the inclusion in APoC's financial accounts of programme budget expenses in other financial periods. As required by IPSAS 24,the reconciliation of actual expenses to budget with the statement of financial performance is provided in Statement V. o o G' Euo =utou o o a TI ozu E rt g E ott o 2 lu =IT art s oz z IL olrl E o3 oz E oAuc g(, z iElt {J & E J$ F 7" * eg (r1g (J tr u.t(, o u z o $( o at E ={ {, fr-{ * 19 o oN E lrt o =lrl(, UI o o a ut o2 ul E ul lrlEF G ott o zlrl - u k o g(, z z E olll a , !t - FEoc utE 62 z lt o o o.{ JU h c$ &d s gl$I t)2 o E ott gt E E &(, o Gr g TT 20 i I 3. Supporting information to the Statement of Financial Position 3.1. Cash and cash equivalents Cash and cash equivalents is comprised of cash and cash at banks. Cash and cash equivalents are held for the purpose of meeting the short-term cash requirements of APOC and eventually other WHO entities based in Ouagadougou, rather than for longer term investment purposes. The balances as at 3l December 2013 was US$ 228,636 (US$ 472,423 as at 3l December 2012). 3. 2 Ac counts r e c e ivable s As at 3l December 2013,total accounts receivable amountedto US$ 1,500,295.Accounts receivables consist of contributions from Sabine Vaccine Institute to AIRO-NTD for US$ 1,500,000 and other miscellaneous receivables of US$ 295' 3.3 Staff receivables According to WHO Staff Rules and Regulations, APOC's staff members are entitled to certain advances and entitlements including salary advances, education grant advances, rental and travel advances. The education grant balance represents advances made to stafffor the scholastic year 2073/74before submitting the final settlement claim' Salary and rental advances Travel advance recorvery Other employee receivable Education grant advance 18,944 14,378 8 49,017 3,216 20,739 1,051 26,179 3.4 Inter entitY receivables ApOC is a separate entity hosted by WHO through an administrative agreement. Global services such as payroll, income and award management, global procurement and payment are carried out by WHO on behalf of all hosted entities including APOC' 3.5 Deposits The deposits represent ApOC's guarantee deposits for utilities. As at 3l December 2013, total amount of deposit was US$ 4,576 (US$ 5,157 as at 31 December 2012)' 3.5 Property, Plant and EquiPment ApOC has invoked the transitional provision under IPSAS 17, which allows a period of up to five years before requiring fuil recognitlon of property, plant and equipment' All assets acquired during the year ZO13were expensed upon acquisition. APOC will come out of the transition period when the records on these categories of assets with a carrying amount above US$ 5,000, will be considered as meeting all the criteria for capitalization. 201 3 2012 TOTAL STAFF RECEIVABLE I As at 31 December 2013, the total value of land and buildings recognized (net of accumulated depreciation)was USg 284,t37 (USg 294,035 as at 3l December 2012). Net adjustments- Openning balance 20r3DepreciationlmpairementsDisposals2012 Land Buildings 56,495 237,540 299,423 1,11r 4,244 37,182 20,783 47,165 9,898 3.7 Accounts payables Accounts payable represent the total amount due to suppliers as at 3i December 2013. These amounts relate to various short-term liabilities as detailed below, 474,276 6,19s 4,259 6,571 3.8 Staff payables Staff payables represent the total amount outstanding to staff as at 31 December 2013. Staff payables include salaries held and to staff, pending the finalization of clearance certificate. It also include amounts deducted from the employees'monthly salaries in relation to travel claims not submitted within 60 days of travel date, as per the internal travel regulation and rules. 20122013 Payables to suppliers Non staff meeting Participants Travel Payables Salary held-net Bank returns - salaries Travel Deduction 20122013 (l, oN E UJ6 =ulI lrt o (, o IJJ o2 ut & IT uI e, olr o z u, =IIJ o s oz =lr olrl E o oz .E o4 ultr s oz z lr ; i., N; lll; : t: :. aa-. .t. I ::::: .1::.. .::' ':. ::: :: 56,495 227,642 TOTAL PROPERTY- APOC 29403s 9,898 294,737 TOTAL 48O,471 304,779 TOTAT [ilffi 105,130 , rii.,Hrr4r 11 f rxqlHirjtgr : ri rp'rEF. :t::+ 21 o o(tl Ggt o =lll(, ut o o alrlozlt E ul ut E olt o -Irl E utLto 6z zIL ogt o3 o2 E oGlltE s(,2 2 E 6 oL E J o FZ a 4.' w4' *$ t o t, 0 o * Ei E{ tc(, o Z, IEll{ 3.9 Accrued staff benefits Accrued staff benefits include Terminal payments (TP), Staff Health Insurance (SHI) Iiabilities, and the Special Fund for Compensation (SFFC). The Terminal Payment Fund is used for repatriation benefits and accrued annual leave. Staff Health Insurance liabilities represent the after service health benefits provided to previous staff members. The Special Fund for Compensation is used to setile liabilities due to service incurred upon death or disability. Accrued Staff benefits-Gurrent . :r;,ri: :ei$ ...,.,.:,.. lgfz T(,rALActRUEU', gfiIlEFlT+qURREt{T Accrued Staff bcncfits-non-cur"ent ' ', I 706,519 777,176 2013 2012 Terminal payments Special fund for comPensation Terminal payments Special fund for comPensation After service health insurance 694,s06 12,013 497,805 383,840 't0,679,'191 1,192,3'l'l 395,853 10,679,'t9'l 765,734 "t1,442 480,396 395,47s 10,308,493 1,246,'130 406,9't7 10,308,493 Total agcrued staff benefits- rtim currtat Acsued Staffibenefib- all ::: t1J60,856 '11'1811,364 . ,: 20ll 2A12 Terminal payments Special fund for comPensation After service health insurance Total accrued staff benefits- all 12,267,355 11,961,540 Terminal poymentsfund This fund was established to finance the terminal emoluments of staff members, including repatriation grants, accrued annual leave, repatriation travel and removal on repatriatlon' It is funded by a budgetary provislon set for 20112-2013 of salary and post adjustment. Liabilities arising from repatriation beneflts and annual leave are determined by independent consulting actuaries' However, the accrued leave is calculated on a walk-away basis and, therefore, is not discounted' The latest actuarial study (as at 3l December 2013) estimated the full terminal payment liabilityto be US$ 1,192,377 (shoic-term US$ 694,506 and long- term US$ 497,805).The total terminal payment liabitity includes the accrued Ieave liability computed by WHO. This calculation did not include costs for the end of service grant and separation by mutual agreement on abolishment of posts' Special Fund for ComPensotion In the event of death or disablement attributable to the performance of official duties of an eligible staff member, the Special Fund for Compensation (SFFC) covers all reasonable medical, hospital, and directly related costs, as well as funeral expenses' In addition, the Fund will also provide compensation to the disabled staff member (for the duration of the disability) or the survivlng familY members. 22 APOC accounts for the Special Fund for Compensation as a post-employment benefit. All gains and losses are immediately recognized upon adoption of IPSAS 25. Thereafter, gains and losses (unexpected changes in surplus or deficit) are recognized over time via the Corridor Method. Under this method, amounts up to 10% of the DBO are not recognized in expense, so as to allow gains and losses the reasonable possibility of offsetting one another over time. Gains and losses over 70% of the DBO are amortized over the average remaining service of active staff expected to receive each benefit. For accounting purposes, the plan is considered unfunded (tiability is not reduced by plan assets). The total actuarial liability at 31 December 2013 is USg 395,853 as compared to US$ 406,917 in 2012. Staff Health lnsurance fund APOC accounts for the After Service Health Insurance as a Post-Employment Benefit. AII gains and losses will be recognized upon adoption of IPSAS 25. Thereafter, gains and losses (unexpected changes in surplus or deficit) will be recognized over time via the Corridor Method. Under this method, amounts up to 10% of the deflned benefit obligation are not recognized in expense, so as to allow gains and losses the reasonable possibility of offsetting one another over time. Gains and losses over 70"/o of the defined benefit obligation are amortized over the average remaining service of active staff expected to receive each benefit. The Defined Benefit Obligations (DBOs) as of 3l December 2013 was determined by professional actuaries, based on personnel data and past payment experience provided to staff. At 31 December 2013 the unfunded defined benefit obligation amounted to USg 10,679,191for after-seryice heatth insurance. Further details on the Staff Health Insurance Fund can be found in the Staff Health Insurance Annual Report. c' oN E ur to =uto UI o c, o UJ oz tu tr lu utI E olr oFz UI =ulF Fo s(, z z l! o ul ts o = oz t-tr oc ul4 g oz = lt a :: .,, :l 23 g, o(tl E uto =ul(, rl o c, ot{ oz ul E Lr.l utt G olr o z ul =lll i(q 6 =zlr o EI o f o2 E or tut soz = lt o. E I o0fi* o(} o s 6E x lr a i& t,t =,{ o ta { u 1r Actuarial summary of terminal Payments, staff health insurance and special fund for compassation (US dollars) DBO as at 3 l December 2012 Service cost lnterest cost Actual Gross Benefit Payments for 201 3 Actual Administrative ExPenses Actual contributions by participants Actuarial (Gain)/Loss DBO as at 3l December 20'13 s92,333 109,363 16,079 (22,499) (83,426) 6l'1,850 6r 1,850 61r,850 611,850 109,363 16,079 (83,426) 1 16,136 .: 16,609,798 390,6@ 738,843 (43,788) (3,709) 65,1 93 (2,791,114) 14,965,887 6,850,513 (237,626) (t7,864) 494,837 250,596 (23,746) 310,308 17,716 7,644,734 277,566 7,943 8,154 (14,2s2) (17,423) 261,988 (14,2s2) 14,252 30,071 231,917 261,988 261,988 133,865 395,853 12,013 383,840 7,943 8,1 54 (12,909) 3,188 12,233 Rsr.onclliatbn,of Asrets ',. ,,,. ... Assets as at 31 Decembet 2012 Actual Gross Benefit Payments for 201 3 Actual Administrative ExPenses Organization Contributions during 201 3 Participant Contributions during 201 3 lncrease/Decrease in 470.1 reserve Expected Return on Assets Actuarial (Gain)/Loss Assets as at 31 December 2013 (22,499) 22,499 Reconlillation, qf Unf unded Statuc Active lnactive Gross Plan Assets Offset for APOC470.1 Reserve DBO Total Plan Assets Deficit/(Surplus) Unrecognized Gain/(Loss) Current Non-current ln 5,029,057 9,936,830 14,965,887 (7,920,'.ts1) 275 (7,644,734) 7,321,153 3,3s8,038 10,679,19'l 390,664 738,843 (310,308) 396,144 125,056 Annual Expense for CY 2Ol 3 Service Cost lnterest Cost Expected Return on Assets Recognition of (Gain)/Loss Expected Contributions during 201 4 Contributions by APOC Contributions by ParticiPants IotallxpenseRecognizedinStatementofFinanclal . 42,016 g19,199 Performance Terminal Payments(other than accrued leave) After Service Health lnsurance Special Fund for Compensation 116,136 : 521,200 12,23324 Reconciliation of Defined Benefit 6lr,85O 114,045 497,805 After-service heolth insuronce medicol sensitivity analysis Medical Sensitivity Analysis o o(\l tr UJo =u,lo UI o (, o IJI ozgt tr ul !r -F E olr oFz ut =ut Fo s a2 z lr o ut E of oz FE o o. ulE J s() z z lr 25 2013 Service Cost plus lnterest Cost Current Medical inflation Asssumption Minus 1% Current Medical infl ation Assumption Current Medical inflation Asssumption Plus 1% 890,000 1,129,507 1,442,000 31 .1 2.2013 Defined Benefit Obligation Actuarial methods and assumptions Each year the Organization identifies and selects assumptions and methods that will be used by the actuaries in the year-end valuation to determine the expense and contribution requirements for the Organization's employee benefits. Actuarial assumptions are required to be disclosed in the financial statements in accordance with IPSAS 25.In addition, each actuarial assumption is required to be disclosed in absolute terms. Terminal payments (other than accrued leave) The discount rate used is 3.70lo (increase from 3.0olo in the prior valuation). Based on the combined projected benefit payments for both plans and with weights of 75o/o on the Aon Hewitt AA Bond Universe yield curve and25o/o on the SIX Swiss Exchange yield curve as at 3l December 20'l 3. The resulting discount rate is rounded to the nearest 0.10lo Current Medical inflation Asssumption Minus l% Current Medical infl ation Assumption Current Medical inflation Asssumption PIus l% 12,696,011 14,965,887 17,8/;0,089 Europe, 2.9% (increase from 2.6Vo in prior valuation; the Americas,4.9% (increase form 4.lorbin prior valuation); Other countries,5.3% (increase from 4.5% in prior valuation). For Europe, beginning with the 3l December 2010 valuation, WHO adopted a yield curve approach to reflect the pattern of expected cash flows from the European major office. The rate is a weighted average of the 2.49Vo rate from the SIX Swiss Exchange curve and the 3.87oh rate from the Euro Zone curve, with a two-thirds weight on the former.The resulting rate is rounded to the nearest 0.1%. For the Americas and other Countriet the rates use the same methodology as for PAHO'S valuation of the ASHI. Beginning with the 31 December 20,l2 valuation, pAHO adopted a yield curve approach using the Aon Hewitt AA Bond Universe Curve.The resulting rates forThe Americas and Other Countries can differ due to different patterns of expected cash flows from those regions. Discount rate After-service health insurance Measurement date: All plans: 3l Decembre 2013 g, o Gl tr ulo =UJ(J ul o (? o UT oz IJ' G, lrl uI - E olt oFzlu =UJF Fo s(, z z lr o utF 6 , o2 E oG ll.l e s o =z lt 26 Measurement date: All plans: 31 Decembre 2013 Special Fund for Compensation Terminal payments (other than accrued leave) The discount rate is 3.7% (increase from 3.07o in the prior valuation). Based on the combined projected benefit payments for both plans and with weights of 75Vo on the Aon Hewitt AA Bond Universe yield curve and 25olo on the SIX Swiss Exchange yield curve as at 31 December 201 3. The resulting discount rate is rounded to the nearest 0.106 The inflation rate used is2.2o/o. Based on inflation rates of 2.5o/o for United States and I.37o for Switzerland with wei g hts of 7 5o/o and 25o/o, res pectively. The res u lti n I inflation rate is rounded to the nearest 0.17o Annt{'{l:salatyscale r,:,,, After-service health insurance Special Fund for ComPensation All plans: After-service health insurance: Europe 1.6%, the Americas 2.5%, Other Countries 2.5%. Based on the Aon Hewitt's Q4 201 3 1o-year forecast of global capital market assumptions. Rate for Europe is the average of rates for Switzerland (1.3%) and the rest of Europe (1 .8%), rounded to the nearest 0.1%. Rate for the Americas and Other Countries is based on the 3l December 201 1 valuation of the United Nations Joint Staff Pension Fund (UNJSPF). The inflation rate used is2.2o/o. Based on inflation rates of 2.5o/o f or U n ited States a nd 1 .30/o for Switzerla nd with wei g hts of 7 5o/o and 25olo, respectively. Th e resu lti n g inflation rate is rounded to the nearest 0.17o General inflation, plus 0.5olo per year productivity increases, plus merit increases. Productivity and merit increases are set equal to those from the 3 1 December 201 1 valuation of the United Nations Joint Staff Pension Fund. Not applicable Calculated using the projected unit credit method with service prorated, and an attribution period from the "entry on duty date"to separation. Not applicable Not applicable Rqgional grou$ingr for allrFtrpoies d6epl claims Gosts Terminal payments (other than accrued leave): Not applicable The Regional Office for Europe, headquarters, lnternational Computing Centre, IARC, UNAIDS, and the lnternational Drug Purchasing Facility (UNITAID), are grouped as Europe, the Regional Office for the Americas constitutes the Americas; and the African Region, the Eastern Mediterranean Region, the African Programme for Onchocerciasis (APOC), the South-East Asia Region, and the Western Pacific Region, are grouped as Other Countries. Special Fund for ComPensation: Repatrlirtl'on traval and rcmoYal{n rcpatrl*dgn Terminal payments (other than accrued leave): After-service health insurance Special Fund for ComPensation Annual general inflation Measurement date: All plans:31 Decembre 2013 Terminal payments (other than accrued leave): After-service health insurance: Special Fund for Compensation: Accrued leave Terminal payments (other than accrued leave): After-service health insurance: Special Fund for Compensation: Using the projected unit credit method with accrual rate proration Not applicable Not applicable The liability is set equal to the walk-away liability - that is, as if all staff separated immediately. Not applicable Not applicable Termina! payments (other than accrued leave): After-service health insurance Special Fund for Compensation These benefits are termination benefits under IPSAS 25 and, therefore, are excluded from the valuation. Not applicable Not applicable United Nations Joint Stoff Pension Fund The Pension Fund's Regulations state that the Pension Board shall have an actuarial valuation made of the Fund at least once every three years by the Consulting Actuary. The practice of the Pension Board has been to carry out an actuarial valuation every two years using the Open Group Aggregate Method. The primary purpose of the actuarial valuation is to determine whether the current and estimated future assets of the Pension Fund will be sufficient to meet its liabilities. WHO's financial obligatlon to the UNJSPF consists of its mandated contribution, at the rate established by the United Nations General Assembly (currently at7.9%for participants and 15.8% for member organizations) together with any share of any actuarial deficiency payments under Article 26 of the Regulations of the Pension 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 Penslon Fund of the valuation date. Each member organization shall contribute to this deficiency an amount proportionate to the total contributions which each paid during the three years preceding the valuation date. The actuarial valuation performed as of 3l December 2011revealed an actuarial deficit of 1.8% (0.38% in the 2009 valuatlon) of pensionable remuneration, implying that the theoretical contribution rate required to achieve balance as of 31 December 2011 was 25.57% of pensionable remuneration, compared to the actual contribution rate of 23%.The actuarial deflcit was primarily attributable to the Iower than expected lnvestment experience in recent years. The next actuarial valuation will be conducted as of 31 December 2013. grant in case of death *bolltloX,ri(Angt e c"Or*irnA 6, G, oN tr ul a0 =uta ul o (i, oII oz ul tr IJJ urEF G olr o z u,t =ll.lL Fo s oz z II o u! E o :) oz FE o o. uttr ;< oz z lr ', 27 At 31 December 2011, the funded ratio of actuarial assets to actuarial llabilities, assuming no future pension adjustments, was 130% (140% in the 2009 valuation). The funded ratio was 86% (97% in the 2009 valuation) when the current system of pension adjustments was taken into account. After assessing the actuarial sufficiency of the Funds, the Consulting Actuary concluded that there was no requirement, as of 31 December 2011, for deficiency payments under Article 26 ofthe Regulations ofthe Fund as the actuarial value of assets exceeded the actuarial value of all accrued liabilities under the Fund. In addition, the market value of assets also exceeded the actuarial value of all accrued liabilities as of the valuation date. At the time of this report, the General Assembly has not invoked the provision of Article 26. In July 2012, the Pension Board noted in its Report of the fifty-nlnth session to the General Assembly that an increase in the normal age of retirement for new participants of the Fund to 65 is expected to significantly reduce the deficit and would potentially cover half of the current deficit of 7.87%.In December 2072 andApril 2013, the General Assembly authorized an increase to age 65 in the normal retirement age and in the mandatory age of separation respectively for new participants to the Fund, with effect not later than form l January 2014. The related change to the Pension Fund's Reguiations was approved by the General Assembly in December 2013 ' The increase in the normal retirement age will be reflected in the actuarial valuation of the Fund as of 31 December 2013. The United Nations Board of Auditors carries out an annual audit of the UNJSPF and reports to the UNJSPF Pension Board on the audit every year. The UNISPF publishes quarterly reports on its investments and these can be viewed by visiting the UNJSPF at www.unjspf.org. 3.10 Other curre nt liabilitie s Other current liabilities represent goods and services received at 31 December 2013, but not yet invoiced, as well as pension payable. The total amount as at 3l December 2013 was USS 223,453 (US$ 1,704,860, as at 3l December 2O\2) f) oN E ulE =lll(, u o C, a ul o2 ut E uI utE E olt o zu =lll E o g o2 z lr o ut E o e oz Fc oG ITtr J s o2 2 lt s -J0 !* (} o 6$ c,)& (.) t * l;; =€ ={] * ;t. 4 tr iL 1{ 28 4. Supporting information to the Statement of Financial Performance 4.1 APOC Trust Fund Contributions APOC Trust Fund is the principal funding source for APOC operations. An amount of USg 16,666,400 was released in 2013 based on the Memorandum of Understanding (MOU) signed by the World Bank and WHO as part of the budget approved in the "Final Communique" adopted by the Joint Action Forum (lAF) for the year 2013. The "Final Communique" is considered as a legal binding document to recognize income before cash is actually received. The International Bank for Reconstruction and Development (World Bank) is the administrator of the Trust Fund for APOC - Phase II Trust Fund. The activities of the trust fund are executed by WHO and funds are disbursed by IBRD as administrator of grant to WHO. As per the 2013 independent auditor's report and statement of receipts, disbursements and Fund balance, an amount of US$ 16,020,567 is held bythe World Bank. The balance with IBRD represents amounts paid into the trust fund (or generated by the investment of available funds in the trust fund) and managed by IBRD, but not yet disbursed to ApOC. 4.2 Voluntary Contributions As at 31 December 2013, total revenue of US$ 7,599,575 was recorded from two voluntary contribu- tors, Sabine Vaccine Institute and University of South Florida (USg 184,648 as at 3l December 2012). The contribution of USD 1,500,000 from the Sabine Vaccine Institute in 2013 was expensed in 2013 as the funds were transferred to AFRO 4.3 Finance Revenue Finance revenue is comprised of interest allocation, actuarial gains, realized and unrealized gain or loss. Total revenue as at 31 December 2013 was US$ 181,361 (US$ 204,006 as at 3i December 2012) 4.4 Other opelating revenue Other operating revenue consists of rental income, discount earned, gain on sale and disposal of assets, and other miscellaneous items. 4.5 Finance Costs The Finance cost component is comprised of investment management costs, exchange gain or loss, rounding differences, and actuarial interest. The total finance cost as at December 2013 is broken down as follows: lnvestment management Exchange gain/loss Rounding differences Actuarial interest 23 17,982 0 24,233 20122013 Total Finance Costs 42,238 c, o6l tr uIE =l!o ut o (, o ut ozlll c ut utE tr oIl at z ut =ut 3 ah 3 oz z It o ut ts o5 o =<( E oc ulE s oz z E iT aa s s + a il} 4 + E{ ini r"} il E(J Z flr:ffir f 4{ c fi" tr 4{ i: 4 29 c, oN G lrltr =UIo UJ o (' o ur o2 lr,t tr u,l ur I IE oII tt, z ut =ll,l F ah J 6z 2 lr o ul E o , o2 Ftr oo ulE s oz =IL 4.5 Expenses Staff and other personnel costs: Thls amount ls equal to the total cost of employing staff at all locations and includes charges for base salary post adjustment and any other types of entitle- ments (e.g. pensions and insurances) paid by APOC. Staff costs also include the movement in the ASHI actuarial liability which is recognized in the Statement of Financial Performance as well as other SHI costs Transfers and grants to counterparts: This represents non exchange contracts signed with national counterparts (mainly health ministries) to perform activities which are ln line with APOC programme budget. Funds are expensed at the point of time when the funds are transferred to the contractual partner and APOC has no on-going involvement. These expenditures are mostly referred to as "Direct Financial Cooperation-DFC". General operating expenses: This amount represents expenses for general operations to support the programme; it includes utilities, telecommunication (fixed telephone, mobile phone, internet and global network expenses), and rents. Travel: The cost of travel for APOC staff, non-staff participants in meetings, consultants and representatives of Member States paid by APOC is included in the total travel costs. Travel expenses include airfare, per diem and other travel-related costs. This does not include statutory travel for home leave and education grant which is accounted for under staff costs. Equipment, vehicles and furniture: As APOC opted for the transitional provision under IPSAS 17, the full cost of equipment; vehicles and furniture are expensed at the point of delivery. Contractual services: This represents expenses for service providers. The main components are for agreements for performance of work or consulting contracts given to individuais to perform activities on behalf of APOC. Medical research activities, costs for special service agreements are also considered to be contractual services. Depreciation: Depreciation is the expense resulting from the systematic allocation of the depre- ciable amounts of property, plant and equipment over their useful lives. This relates principally to APOC's buildings. Finance costs: The Finance cost component is comprised of Investment management costs, exchange gain or loss, rounding differences, and actuarial interests. 30 5. Utilization of Programme Budget In December 2010, the Joint Action Forum (JAF) meeting approved the budget appropriation resolution for 2072-2013 in which it noted the total budget of US$ 47,776,158. Out of the total amount approved, US$ 23,943,158 was allocated to the year 2072 and US$ 23,233,O00 to the year 2013. The Programme of Action and Budget approved is meant to be funded by the Trust Fund contributions. There is no approved budget for other funds, but they are managed in accordance with WHO financial rules and regulations. However, financial statements cover all APOC activlties. The implementation rate at the end of the year is 7O% as compared to the total approved budget. This implementation rate seems to be very low because the total approved budget was not actu- ally made available to APOC for activity implementatlon. The implementation rate per objective varies from 22% to 797%. Objectives 7 and 3 have shown a particular low level of absorption capacity due to lack of clear targets to be achieved and therefore lack of itemized list of activities to be carried out in order to achieve targets. Only objective 6 did have a budget overrun with 191% implementation rate. 6. Comparison of budget and actual amounts APOC's planning and budgeting process uses the results-based framework and the implementa- tion of the approved budget is measured. on expenses incurred during the budget period using the modified cash basis. On the other hand, financial statements are prepared using different accounting bases. The full accrual accounting basis is used in preparing the five main statements in the financial report. According to IPSAS 24 requirements, the actual amounts presented on a comparable basis to the budget shall, where the financial statements and the budget are not prepared on a comparable basis, be reconciled to the actual amounts presented in the financial statements, identifying separately any basis, timing, presentation and entity differences. Basis differences are the source of discrepancy between the budget and actual amounts for APOC as reflected in the statement V. The 1.5 million from Sabine contribution that was transferred to AFRO and expensed in 2013, ls one of the items making up the difference. Presentation differences results from differences in the format and classrfication schemes in the Statement of Cash Flow and the Statement of Comparison of Budget and Actual Amounts. Actual amount on a comparable basis (StatementV) Basis differences (16,2s0,030) Presentation differences 1,657/37 14,348,506 1,657,737 14,348,506 201 3 -- (16,250,030) o oN c ul6 =uto UJ o o o ut ozu G II tu - E ott o 2 ut =ut o s oz =E o ut E o5 oz G ocuE s(, z - E # =,J €t- G * 6/; (J trl uI o * (.1 0 4 tiJ =4tr H q 31 ACTUAL TNTHE STATEMENT tV (243,787) m 7. Write-off and ex-gratia payments During the year 2013,there was no administrative waiver orwrite-off for unrecoverable receivable. Similarly, no ex-gratia payment was made during the year. 8. Related party and other senior management disclosures The APOC Director is the only staff member considered to be key management personnel. The aggregate remuneration paid to the key management personnel was US$ 3 27,530 which includes: compensation and post adjustment (US$ 220,S60), entitlements such as representation and other allowances, asslgnment grants, rental subsidy, personal effects shipment costs (US$ 47,906), pension and health plan (US$ 58,764).The total outstanding advances against entitlements are USg 12,149. During the year under review, no loans were granted to key management personnel which are not widely available to persons who are outside the group of key management. 9. Events after the reporting date The reporting date for these financial statements is 31 December 2013. On the date of signing of these accounts, there was no material event (favourable or unfavourable) that occurred between the balance sheet date and the date when the financial statements were authorized for issue that would have an impact on the financial statements. 10. Contingent liabilities, commitments and contingent assets Contingent Liability As at 31st December 2013, there was no pending case or claim that could eventually be considered as contingent liability. O p e rati ng Le ase s Co m m it m e nts APOC has no lease arrangement. Contingent ossefs There was no event that will give rise to a probable inflow of economic benefits to be considered as contingent assets. However, APOC Nlanagement is still following up on the request for title on deed 856 pertaining to the land adjacent to the mdn buiiding. A positive outcome on this case might give rise to a flow of economic benefits in the future. In this perspective and as per IPSAS 19, the title on deed 856 can be considered a contingent asset. a, oN G luo =uto tu o C, ol|l oz ut E tu ut - Eolt o 2lll E ul o g o2 -lr o ut E o3 ctz Gor lutr s oz =E # =.5: + *.v '= .$ ,jl #$ lll(.) flY iE ul k{tr(t q3 ec a rJ tr ii; 32 oo o E 3 I o I ! ! E -t I o o African Programme for Onchocerciasis Control (APOC) Warld He alth Qrg anization B.P. 549 - Ouagadougou - BURKINA FASO Tel: +226-5O 34 29 53 / 50 34 29 59 / 50 34 29 60 Fax: +226-50 34 28 75 / 50 34 26 48 d.fuapoc@who.int www.who.int/apoc (@ -?s- World Health 0rganization AFRICAN PROGRAMME FOR ONCHOCERCIASIS CONTROL