Part III. Working Capital Fund
Major Programme 296. Working Capital Fund
296.1. The Working Capital Fund is established for the following purposes, as defined in article19(1) of the Financial Regulations:
(a) to finance the budgetary expenditure pending receipt of contributions or other income; and
(b) in exceptional circumstances and subject to prior authorization of the Governing Body, to provide advances to meet contingencies and emergencies.
Level of the Working Capital Fund
296.2. The level of the Working Capital Fund was set at 35 million Swiss francs on 1January 1993 by the International Labour Conference at its 80th (1993) Session.
Refund of Withdrawals
296.3 Under the present provisions of article21.2 of the Financial Regulations, any excess of budgetary expenditure over budgetary income for the 1996-97 biennium would be financed by a withdrawal from the Working Capital Fund. Provision for reimbursement of this withdrawal would be made under this part of the budget for assessment on member States in 1999.
296.4 However, the Conference at its 82nd (1995) Session decided that article21.2 of the Financial Regulations be the subject of a derogation to allow for the introduction, on a trial basis for the 1994-95, 1996-97 and 1998-99 financial periods, of a system whereby a withdrawal from the Working Capital Fund to finance a cash deficit directly attributable to income shortfalls would be reimbursed in the following biennium or biennia from arrears of contributions received. The provisions of article21.2 described in paragraph296.3 above would apply only to that portion of a cash deficit which was attributable to an overspending of the expenditure budget on account of additional expenditure items authorized by the Governing Body.