FIRST ITEM ON THE AGENDA

Programme and Budget for 1996-97

Regular budget account and Working Capital Fund
as at 31 December 1997

Contents

Financial results for 1996-97

Working Capital Fund and Income Adjustment Account

Position in relation to paragraph 4 of article 13 of the Constitution

Appendix I:

Table 1. Regular budget income and expenditure for the financial period 1996-97

Table 2. Status of regular budget appropriations for the financial period 1996-97

Table 3. Assessed contributions of member States and amounts due by States for prior periods
of membership in the ILO -- Summary

Table 4. Assessed contributions of member States and amounts due by States for prior periods
of membership in the ILO -- Details

Table 5. Working Capital Fund and Income Adjustment Account

Appendix II: Additional expenditure items approved by the Governing Body

Financial results for 1996-97

1.  At its 82nd Session (June 1995) the International Labour Conference approved an expenditure budget for the 1996-97 financial period amounting to $579,500,000 and an income budget for the period for the same amount, which, at the budget rate of exchange for the period of 1.16 Swiss francs to the US dollar, resulted in assessed contributions of 672,220,000 Swiss francs. At its 264th Session (November 1995) the Governing Body approved budget adjustments reducing the spending level by $21,704,950 to $557,795,050. No adjustment was made to the income budget.

2.  Contributions received in respect of the current and earlier biennia are accounted for as budgetary income in US dollars at the 1996-97 ILO budget rate of exchange, and the Swiss franc expenditure is recorded in US dollars at the same rate of exchange. US dollar budgetary income and expenditure figures reported herein accordingly result from the conversion of Swiss franc income and expenditure to US dollars at the 1996-97 budget rate of exchange of 1.16 Swiss francs to the US dollar.

3.  During the financial period additional expenditure items totalling $438,900 were approved by the Governing Body. Details are provided in Appendix II.

4.  Table 2 of Appendix I compares 1996-97 expenditure by major programme with the approved budget and reduced spending level. Expenditure under Part I of the budget during 1996-97 amounted to $505,944,781. This was lower than the reduced spending level for Part I of $556,920,050 by $50,975,269.

5.  Regular budget income and expenditure for 1996-97 are summarized in table 1 of Appendix I. Total budgetary income for 1996-97, after reimbursement of the 1994-95 cash deficit of $44,224,898, was $526,481,700 or $53,018,300 less than the approved income budget. The excess of income over expenditure for the period amounted to $20,536,919. At its 85th Session (June 1997) the International Labour Conference decided that the sum of $21,704,950 (that is, 25,177,742 Swiss francs at the budget rate of exchange of 1.16 Swiss francs to the US dollar) should be carried forward from 1996-97 and treated as budgetary income for 1998. After taking this adjustment into account, there is a net cash shortfall of $1,168,031. In accordance with the Conference decision, arrears of contributions received in 1998-99 will be used to finance this deficit.

6. Expenditure was $50.9 million lower than the budget, due to three main factors:

(a) decisions by the ICSC resulting in lower than anticipated cost increases for staff costs ($29.9 million);

(b) improvements in efficiency, particularly with respect to the functioning of the International Labour Conference ($4.8 million); and service and support to meetings in general ($5.3 million);

(c) the financial restrictions imposed during the first seven months of the biennium due to uncertainties prevailing regarding the receipt of contributions ($10.9 million).

7.  With respect to staff costs, provision had been made in the budget for cost increases of 2.0 per cent in 1995 and 2.5 per cent in both 1996 and 1997 for Professional staff assigned to Geneva and for General Service staff. This provision was lower than the 3.0 per cent per annum inflation assumption agreed upon in common with other organizations of the United Nations system having headquarters or major offices in Geneva. During this period, the only increase in Geneva post adjustment rates was one of 0.96 per cent in July 1995. As for General Service staff, at its 264th Session (November 1995)⁽¹⁾  the Governing Body approved the recommendation of the ICSC on the implementation of a new salary scale, which resulted in a salary freeze for existing staff and a salary scale that was 7.4 per cent lower for new staff. These lower staff costs have been taken into account in the preparation of the 1998-99 programme and budget proposals, resulting in minimal provisions for increases in staff costs in the budget.

8.  The savings under the Conference budget were largely a result of the reforms adopted by the Governing Body which affected the three sessions in 1996-97, including the Maritime Session in November 1996. A significant part of the savings were carried over in the approved Programme and Budget for 1998-99, which shows a reduction in real terms for the two regular sessions of the Conference of some $2.8 million.

9.  The savings realized under Major programme 220 (Relations, meetings and documentation), amounted to $5.3 million, principally due to reductions in staff, interpretation services and document distribution costs achieved through the use of more sophisticated computer methods for planning and production, revised working arrangements and other efficiencies. The savings achieved in 1996-97 are reflected in the significant reductions in the budget for 1998-99.

10.  In order to safeguard the financial position of the Office the Director-General introduced a wide range of measures in 1995. These were in force for some seven months in the 1996-97 biennium, and their effects were felt throughout the biennium. They included restrictions on the filling of vacancies and the recruitment of short-term staff, the reduction of staff, and measures to encourage early retirement. However, everything possible was done to realize the outputs specifically indicated in the programme and budget for the biennium 1996-97, including in particular research projects and publications. In consequence, much of the effect of the financial restrictions concerned ongoing or recurrent activities. For example, fewer activities to promote Conventions other than those directly relating to fundamental workers' rights were carried out. In most technical fields and in the regional departments, RBTC expenditure did not recover from the six- month period of restraint at the beginning of the biennium. A number of activities at the regional and country levels had to be reduced in scope or could no longer be organized in the remaining part of the biennium, and had to be deferred or cancelled.

Working Capital Fund and Income Adjustment Account

11.  Analyses of the movements of the Working Capital Fund and the Income Adjustment Account, including the composition of miscellaneous income credited to the latter account, are provided in table 5 of Appendix I.

Position in relation to paragraph 4 of article 13 of the Constitution

12.  Table 4 of Appendix I shows that, on 31 December 1997, the arrears of contributions of Afghanistan, Angola, Antigua and Barbuda, Armenia, Azerbaijan, Bosnia and Herzegovina, Central African Republic, Comoros, Congo, Georgia, Grenada, Guinea-Bissau, Equatorial Guinea, Haiti, Solomon Islands, Iraq, Kazakhstan, Kyrgyzstan, Latvia, Liberia, Republic of Moldova, Uzbekistan, Rwanda, Sao Tome and Principe, Sierra Leone, Somalia, Tajikistan, Chad, Togo, Turkmenistan and Yugoslavia⁽²⁾  equalled or exceeded the amount of the contributions due from them for the past two full years (1995-96). Each of these member States had therefore lost the right to vote, in accordance with the provisions of paragraph 4 of article 13 of the Constitution of the Organization.

13.  Cambodia, Cape Verde, Djibouti, Dominican Republic, Paraguay and Poland have been permitted to vote in accordance with paragraph 4 of article 13 of the Constitution of the Organization under financial arrangements approved by the International Labour Conference at its 82nd (1995), 85th (1997), 78th (1991), and 75th (1988) Sessions respectively.

Geneva, 11 March 1998.

Appendix I
 

Table 1.	Regular budget income and expenditure for the financial period 1996 - 97 (in US dollars) (1)
					Budget	Actual
					1996 - 97	1996 -97
Income
	Assessed contributions for the financial period 1996 -97				579 500 000	408 853 600
	Assessed contributions and other amounts due for previous financial periods
					-	117 628 100
Total Income					579 500 000	526 481 700 (2)
Expenditure
	Part I - Ordinary budget				578 625 000	505 944 781
	Part II - Unforeseen expenditure				875 000	-
Total Expenditure					579 500 000	505 944 781 (3 )
Excess of Income over Expenditure					-	20 536 919
	Less: Provision against future income				-	(21 704 950) (4)
Cash Surplus (Deficit) after provision					-	(1 168 031)
(1) US dollar income and expenditure figures result from the conversion of Swiss franc income and expenditure to US dollars at the ILO budget rate of exchange for 1996-97 of 1.16 Swiss francs to the US dollar.
(2) Actual income for the financial period 1996-97 is made up as follows:
				Assessed contributions
				for the financial	for previous
				period 1996 -97	financial periods	Total 1996 - 97
Received in Swiss francs
	- 1996			253 801 459	150 250 138	404 051 597
	- 1997			220 468 717	37 499 339	257 968 056
Total received				474 270 176	187 749 477	662 019 653
	Less: amounts used to reimburse the 1994 - 95 cash deficit			-	(51 300 881)	(51 300 881)
Total Income				474 270 176	136 448 596	610 718 772
Converted to US dollars at the ILO budget rate of exchange for 1996 - 97 of 1.16 Swiss francs to the US dollar				408 853 600	117 628 100	526 481 700
Details of income are provided in Table 4.
(3) Details of expenditure are provided in Table 2.
(4) Resolution of the 85th Session (June 1997) of the International Labour Conference which provided that the sum of 25,177,742 Swiss francs (US$21,704,950 at the 1996-97 budget rate of 1.16 Swiss francs to the US dollar) shall be taken out of any surplus in the 65th financial period and treated as income in the 66th period, and that any deficit arising from this action shall be financed from arrears of contributions subject to the resolution adopted by the General Conference at its 82nd Session (June 1995) concerning the utilization of arrears of contributions to cover budgetary deficits.

Table 2 .	Status of regular budget appropriations for the financial period 1996-97 (in US dollars)
Title		Appropriations (1)	Reduced spending level (2)	Expenditure
PART I - ORDINARY BUDGET
10	International Labour Conference	15 815 671	16 224 271	11 340 614
20	Governing Body	2 766 718	2 766 718	2 202 522
30	Major regional meetings	3 253 264	444 000	241 039
40	General management	9 488 450	9 488 450	8 474 275
50	International labour standards and human rights	23 808 796	23 478 356	21 138 093
60	Employment and Training	28 190 425	27 475 321	25 552 928
65	Enterprise and cooperative development	12 137 226	11 917 610	11 394 869
75	Turin Centre	5 130 000	5 130 000	5 130 000
80	Industrial relations and labour administration	12 803 716	12 596 612	11 386 367
85	Multinational enterprises	1 302 629	1 302 629	1 045 664
90	Working conditions and environment	20 384 037	19 958 076	19 032 115
100	Sectoral activities	17 672 696	14 182 696	11 129 302
110	Social security	8 269 579	8 154 102	7 463 068
115	International Social Security Association	724 600	-
120	Statistics	9 035 080	8 795 256	7 590 587
125	Development policies	7 936 235	7 793 053	6 947 967
130	International Institute for Labour Studies	6 021 750	5 921 750	5 441 616
140	Equality for women	871 013	871 013	683 653
145	Interdepartmental Activities	1 240 350	-
160	Personnel	18 751 715	18 825 165	17 917 020
170	Financial services	15 406 385	15 306 385	14 759 259
175	Internal administration	46 608 340	43 536 323	41 810 199
180	Publications	9 238 340	7 807 523	7 640 253
185	Information Technology and Communications	15 552 272	15 552 272	14 218 694
190	Library and documentation	9 571 250	9 571 250	8 664 240
200	Programming and management	6 356 931	6 085 155	5 669 291
210	Legal services	3 224 768	3 224 768	2 681 558
220	Relations, Meetings and Document Services	67 433 413	62 470 581	53 196 359
225	Employers' activities	5 805 717	5 549 652	4 944 073
230	Workers' activities	16 254 763	15 925 255	15 028 708
235	Public information	6 243 077	6 196 077	5 010 384
240	International relations	4 417 068	4 417 068	3 649 253
245	Active partnership and Technical cooperation	4 390 636	3 822 508	3 607 304
250	Field programmes in Africa	42 395 999	42 395 999	39 797 793
260	Field programmes in the Americas	37 403 162	37 403 162	34 231 475
265	Field programmes in Arab States	8 498 506	8 498 506	6 953 302
270	Field programmes in Asia and the Pacific	39 911 608	39 911 608	36 124 571
280	Field programmes in Europe and Central Asia	13 023 916	13 023 916	12 445 652
290	Other budgetary provisions	25 959 010	25 571 075	21 400 714
	Adjustment for staff turnover	(4 674 111)	(4 674 111)
TOTAL PART I		578 625 000	556 920 050	505 944 781
PART II - UNFORESEEN EXPENDITURE
	Unforeseen expenditure	875 000	875 000	-
PART III - WORKING CAPITAL FUND
	Working Capital Fund	-	-	-
TOTAL (PARTS I-III)		579 500 000	557 795 050	505 944 781
TOTAL 1994-95		466 510 000	466 510 000	425 071 658
(1) To improve the comparability of 1996-97 expenditure, appropriations have been adjusted between items to reflect the reorganization as presented in the 1998-99 budget and effected during 1996-97. The principal changes have been the merger of the former Employment (060) and Training (070) into a single department, Employment and Training (060) ; the transfer of the Printing and Typing programme and the Distribution sub-programme from Editorial and Document Services (180) to Relations, Meetings and Document Services (220); and finally the merger of the Promotion of Technical Cooperation (125.3) and Active Partnership (245) into one single programme, Active Partnership and Technical Cooperation (245) .
(2) Taking into account the net admustments to the Programme and Budget of US$ 21 704 950 as adopted by the Governing Body at its 264th session (November 1995)

Table 3 . Assessed contributions of member States and amounts due by States for prior periods of membership in the ILO - Summary (in Swiss francs)
Details		Balance as at 1.1.96	(1)	Adjustments to balance	Assessed Contributions   1996 - 97	Total Amounts due	Amount received or credited					Balance due as at 31.12.97
							1996		1997	Total Income	Not credited to income
A. Assessed contributions for the financial period 1996 - 97:
1996:
- Assessed with the budget		-		-	336 110 000	336 110 000	253 783 460	(2)	6 745 192	260 528 652		75 581 348
- Assessed after adoption of the budget	(3)	-		-	17 999	17 999	17 999		-	17 999		-
Total 1996		-		-	336 127 999	336 127 999	253 801 459		6 745 192	260 546 651	-	75 581 348
1997:
- Assessed with the budget		-		-	336 110 000	336 110 000	-		213 689 914	213 689 914		198 001 434
- Assessed after adoption of the budget	(3)	-		-	33 611	33 611	-		33 611	33 611		-
Total 1997		-		-	336 143 611	336 143 611	-		213 723 525	213 723 525	-	198 001 434
Total assessed contributions for the financial period 1996-97		-		-	672 271 610	672 271 610	253 801 459		220 468 717	474 270 176	-	198 001 434
B Assessed contributions for previous financial periods due from member States		238 226 854		-	-	238 226 854	150 225 753		37 487 149	187 712 902	-	50 513 952
C Amounts due by States for prior periods of membership in the ILO		504 074		-	-	504 074	24 385		12 190	36 575	-	467 499
Total assessed contributions and other amounts due for previous financial periods		238 730 928		-	-	238 730 928	150 250 138		37 499 339	187 749 477	-	50 981 451
Total 1996-97		238 730 928		-	672 271 610	911 002 538	404 051 597		257 968 056	662 019 653	-	248 982 885
Total 1994-95		125 380 518		54 015	678 504 216	803 938 749	327 430 861		237 622 162	565 053 023	154 798	238 730 928
Total 1996-97 income in US dollars at the ILO budget rate of exchange (1.16 Swiss francs to the dollar)							348 320 342		222 386 255	570 706 597
Balance due in US dollars at the United Nations monthly accounting rate of exchange for December 1997 (1.42 Swiss francs to the dollar)												175 340 060
Notes to Table 3:	Assessed contributions of member States and amounts due by States for prior periods of membership of the ILO
1 Excludes assessed contributions for 1996
2 Includes credits to member States in respect of:
						1996	1997
The incentive scheme for 1994 and 1995 respectively						453 419	3 397 676
Cash surpluses for previous financial periods						1 718 283
50 per cent of the net premium for previous financial periods						1 034 439	1 528 629
Working Capital Fund annuities						1 102	-
				Total credits		3 207 243	4 926 305
3 Represents the contribution of Saint Kitts and Nevis which joined the Organization on 19 June 1996.

Table 4. Assessed contributions of member States and amounts due by States for prior periods of membership in the ILO - Details (in Swiss francs)
	1996-97 assessed contributions														Amounts due for previous financial periods
	1996							1997
States (French alphabetical order)	Assessed contributions		(1)	Amount received or credited				Assessed contributions		(1)	Amount received or credited in 1997		Balance due as at 31.12.97		Balance due as at 1.1.96	Amount received or credited		Balance due as at 31.12.97		Total due as at 31.12.97
	%	Amount		In 1996		In 1997		%	Amount							In 1996	In 1997
Afghanistan (4)	0.0100	33 611		0		0		0.01	33 611		0		67 222		33 822	0	0	33 822		101 044
South Africa	0.3180	1 068 830		1 068 830		0		0.31	1 041 941		1 041 941		0		0	0	0	0		0
Albania (2)	0.0100	33 611		33 611		0		0.01	33 611		840		32 771		0	0	0	0		32 771
Algeria	0.1578	530 382		530 382		0		0.16	537 776		537 776		0		0	0	0	0		0
Germany	8.9174	29 972 273		29 972 273		0		8.93	30 014 623		30 014 623		0		0	0	0	0		0
Angola (4)	0.0100	33 611		1 240		0		0.01	33 611		0		65 982		102 108	0	0	102 108		168 090
Antigua and Barbuda (4)	0.0100	33 611		0		0		0.01	33 611		0		67 222		130 579	0	0	130 579		197 801
Saudi Arabia	0.7100	2 386 381		2 386 381		0		0.70	2 352 770		2 352 770		0		0	0	0	0		0
Argentina	0.4734	1 591 145		20 682		0		0.47	1 579 717		0		3 150 180		3 652 976	2 069 015	597 411	986 550		4 136 730
Armenia (4)	0.0542	182 172		0		0		0.05	168 055		0		350 227		1 328 308	0	0	1 328 308		1 678 535
Australia	1.4595	4 905 525		4 905 525		0		1.46	4 907 206		4 907 206		0		0	0	0	0		0
Austria	0.8530	2 867 018		2 867 018		0		0.86	2 890 546		2 890 546		0		0	0	0	0		0
Azerbaijan (4)	0.1159	389 551		0		0		0.11	369 721		0		759 272		2 608 873	0	0	2 608 873		3 368 145
Bahamas	0.0197	66 214		66 214		0		0.02	67 222		67 222		0		0	0	0	0		0
Bahrain	0.0197	66 214		66 214		0		0.02	67 222		59		67 163		101 466	101 466	0	0		67 163
Bangladesh	0.0100	33 611		33 611		0		0.01	33 611		33 611		0		0	0	0	0		0
Barbados	0.0100	33 611		33 611		0		0.01	33 611		33 611		0		0	0	0	0		0
Belarus	0.2885	969 677		40 911		0		0.27	907 497		0		1 836 263		4 123 088	0	2 804 428	1 318 660		3 154 923
Belgium	0.9936	3 339 589		3 339 589		0		0.99	3 327 489		3 327 489		0		0	0	0	0		0
Belize	0.0100	33 611		122		33 489		0.01	33 611		33 611		0		0	0	0	0		0
Benin	0.0100	33 611		33 611		0		0.01	33 611		33 611		0		0	0	0	0		0
Bolivia	0.0100	33 611		0		0		0.01	33 611		0		67 222		8 405	0	0	8 405		75 627
Bosnia and Herzegovina (4)	0.0123	41 342		0		0		0.01	33 611		0		74 953		343 967	0	0	343 967		418 920
Botswana	0.0100	33 611		33 611		0		0.01	33 611		33 611		0		0	0	0	0		0
Brazil	1.5976	5 369 693		178 520		0		1.60	5 377 760		0		10 568 933		9 768 215	4 520 854	2 186 400	3 060 961		13 629 894
Bulgaria	0.0814	273 593		4 785		203 703		0.08	268 888		0		333 993		139 552	100 000	39 552	0		333 993
Burkina Faso	0.0100	33 611		1 240		31 647		0.01	33 611		0		34 335		75 443	71 557	3 886	0		34 335
Burundi	0.0100	33 611		109		0		0.01	33 611		1 107		66 006		0	0	0	0		66 006
Cambodia (3)	0.0100	33 611		33 611		0		0.01	33 611		0		33 611		526 316	39 690	0	486 626		520 237
Cameroon	0.0100	33 611		0		4 810		0.01	33 611		0		62 412		86 962	23 746	63 216	0		62 412
Canada	3.0596	10 283 622		10 283 622		0		3.07	10 318 577		10 318 577		0		0	0	0	0		0
Cape Verde (3)	0.0100	33 611		1 240		0		0.01	33 611		33 611		32 371		98 419	0	0	98 419		130 790
Central African Republic (4)	0.0100	33 611		1 240		0		0.01	33 611		0		65 982		69 962	0	4 913	65 049		131 031
Chile	0.0789	265 191		265 191		0		0.08	268 888		268 888		0		255 126	255 126	0	0		0
China	0.7248	2 436 125		2 436 125		0		0.73	2 453 603		2 453 603		0		0	0</