87th Session |
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Report II
Draft programme and budget 2000-01 and other financial questions
Second item on the agenda
International Labour Office Geneva
ISBN 92-2-110806-6
ISSN 0074-6681
1. This report deals with the draft Programme and Budget for 2000-01 as examined by the Governing Body at its 274th Session (March 1999).
2. The full material relating to the draft 2000-01 programme and budget appears on pages 1 to 23. This material should be read in conjunction with the Director-General's Programme and Budget proposals for 2000-01 as indicated in paragraph 2 on page 1.
3. The Governing Body's recommendations concerning the scales of assessment of contributions to the budget for the 2000-01 financial period, proposed amendments to the Financial Regulations and the composition of the Administrative Tribunal of the ILO, together with the related draft Conference resolutions, are set out on pages 24, 25 and 27 respectively.
Contents
Programme and Budget for 2000-01
Summary tables
Director-General's proposed expenditure budget for 2000-01 (Parts I to III) (table A)
Regular budget estimates and analysis of increases and decreases (table B)
Complementary budgetary information
Other financial and administrative questions
Scales of assessment of contributions to the budget for the 2000-01 financial period
Proposed amendments to the Financial Regulations
Composition of the Administrative Tribunal of the International Labour Organization
Annexes
Third report of the Programme, Financial and Administrative Committee of the Governing Body at its 274th Session blue (March 1999) (GB.274/9/3(Rev.1)) |
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Report of the Government members of the Committee on pink Allocations Matters (GB.274/9/4) |
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Proposed amendments to the Financial Regulations green (GB.274/PFA/7) |
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Composition of the Administrative Tribunal of the ILO golden (GB.274/PFA/14/2) |
Programme and Budget for 2000-01
Consideration of the Director-General's Programme and
Budget proposals for 2000-01 by the Programme,
Financial and Administrative Committee
and the Governing Body
1. The Director-General's Programme and Budget proposals for 2000-01 were submitted to the Governing Body at its 274th Session (March 1999) in documents GB.274/PFA/9/1 (Volume 1 -- Strategy and orientation) and GB.274/PFA/9/2 (Volume 2 -- Programme descriptions and budgetary information). Volume 1 is being reissued as a supplement to the present report and circulated to those recipients of the report to whom the proposals in question have not already been sent. During its discussion of the programme and budget, the Governing Body agreed that Volume 2 would not be reissued for the Conference but that financial tables, together with other budgetary information contained in Volume 2, be reproduced in the present report (pages 3 to 23).
2. The Director-General's proposals were considered in the first instance by the Programme, Financial and Administrative Committee of the Governing Body. The Committee's discussion of the proposals was recorded in its third report to the Governing Body, which is reproduced in Annex 1 to the present report.(1) The Governing Body accepted the recommendations of the Committee and decided to propose to the International Labour Conference a resolution related to the adoption of the programme and budget for the 67th financial period, ending 31 December 2001, and for the allocation of expenses among members in that period. The text of the proposed resolution is given below in paragraph 8.
3. It will be observed that budget presentation for the 2000-01 biennium is centred on four strategic objectives, namely, fundamental principles and rights, employment, social protection and social dialogue. A statement providing further details of the budget of expenditure will be submitted by the Director-General to the Governing Body at its 276th Session (November 1999), as required by article 15 of the Financial Regulations.
4. It will also be observed that the proposed resolution is incomplete as regards the final budget level. The Governing Body endorsed a provisional programme level of US$481,050,000 estimated at the 1998-99 budget exchange rate of 1.46 Swiss francs to the US dollar. The final exchange rate and the corresponding US dollar level of the budget and Swiss franc assessments will be determined by the Conference, on the recommendation of the Finance Committee of Government Representatives, at its forthcoming session.
5. The Director-General's proposed expenditure budget for 2000-01 (Parts I to III), which was endorsed by the Governing Body, is set out in table A on page 3 below.
6. Table B, which is set out on page 4 below, and is entitled "Regular budget estimates and analysis of increases and decreases", permits the identification of changes in programme level -- as distinct from changes due to cost increases and currency fluctuations. Column (B) shows the Director-General's proposals for 2000-01 costed in terms of constant 1998-99 US dollars, i.e. on the basis of cost levels and exchange rates used in preparing the 1998-99 programme and budget. These figures can thus be compared directly with those in column (A), which is headed "1998-99", so that programme increases and decreases in real terms can be readily identified. The figures in column (E) represent the 2000-01 budget proposals costed on the basis of estimated 2000-01 cost levels and the 1998-99 budget rate of exchange of 1.46 Swiss francs to the US dollar.
Recommendations of the Governing Body to the
Conference at its 87th Session (June 1999)
7. The Governing Body recommends to the Conference at its 87th Session (June 1999) that the final amount of the 2000-01 budget be based on the endorsed proposed expenditure budget of US$481,050,000 estimated at the 1998-99 budget exchange rate of 1.46 Swiss francs to the US dollar, to be revalued at the rate of exchange set by the Conference.
8. The Governing Body also recommends that the text of the related resolution to be adopted by the Conference should be as follows:
The General Conference of the International Labour Organization,
(a) In virtue of the Financial Regulations, adopts for the 67th financial period, ending 31 December 2001, the budget of expenditure of the International Labour Organization amounting to US$ ............ and the budget of income amounting to US$ ..........., which, at the budget rate of exchange of ........... Swiss francs to the US dollar, amounts to ........... Swiss francs, and resolves that the budget income, denominated in Swiss francs, shall be allocated among member States in accordance with the scale of contributions recommended by the Finance Committee of Government Representatives;
(b) Requests the Director-General to submit to the Governing Body at its 276th Session (November 1999) a statement as referred to in article 15 of the Financial Regulations, providing further details of the budget of expenditure.
1. proposed expenditure budget for 2000-01 (Parts I to III) (table A)
2. Regular budget estimates and analysis of increases and decreases (table B)
Other financial and administrative questions
Scales of assessment of contributions to the budget
for the 2000-01 financial period
1. At its 274th Session (March 1999), the Governing Body decided, on the recommendation of the Government members of the Programme, Financial and Administrative Committee, to propose to the Conference at its 87th Session (June 1999) that it adopt the draft scale of assessments for 2000 as set out in column 3 of the appendix to the report of the Government members of the Committee on Allocation Matters.(2)
2. It will be for the Finance Committee of Government Representatives to consider the proposals put forward by the Governing Body concerning the draft scale of assessments for 2000 and to make appropriate proposals to the Conference.
Proposed amendments to the Financial Regulations
1. At its 274th Session (March 1999), the Programme, Financial and Administrative Committee considered a paper(3) on proposed amendments to the Financial Regulations required for the introduction of accrual accounting in the ILO in order to comply with the common accounting standards of the United Nations system.
2. During the same session, the Governing Body decided to endorse the Committee's proposal and to recommend to the Conference that it adopt a resolution in the following terms:
The General Conference of the International Labour Organization,
Recognizing that amendments to the Financial Regulations are required to enable the Organization to follow the common accounting standards of the United Nations system;
Decides to make the following amendments to the Financial Regulations:
(a) Paragraph 5 of article 10 shall read:
5. All contributions due in a financial period shall be recorded as income in that financial period, and shall be accounted for in United States dollars at the budget rate of exchange for that financial period.
(b) Paragraph 1 of article 17 shall read:
1. Expenditure charged against the appropriations of a financial period shall consist of payments made during the financial period and unliquidated obligations as at the last day of the financial period. Such portion of appropriations as may be required to meet these unliquidated obligations shall remain available for 12 months at the end of which any remaining balances shall be credited to miscellaneous income.
(c) The present paragraph 2 of article 17 shall be deleted.
(d) The present paragraph 3 of article 17 shall be renumbered as paragraph 2 and shall read:
2. Obligations which could not be charged to the appropriations of the preceding financial period may, if the Director-General should so decide, be charged to the appropriations of the current financial period. Nevertheless, there shall be included in the budget for each financial period an item entitled "Unpaid liabilities" to which may be charged any payments of a similar character which it would not be appropriate to pay from any other item of the budget. Payment of obligations due in respect of transactions covered by the budget of any financial period preceding the last financial period shall be subject to the prior authorization of the Governing Body.
(e) Paragraph 4 of article 17 shall be deleted.
(f) Article 18 shall read:
1. The excess or shortfall of income over expenditure in any complete financial period shall be calculated by deducting budgetary expenditure from budgetary income with a financial provision being made for delays in the payment of contributions. Such provision shall amount to 100 per cent of the contributions unpaid at the date of the financial statements at the end of the financial period.
2. Any such excess of income over expenditure, expressed in Swiss francs calculated at the budget rate of exchange for that financial period, shall be used to reduce the contributions of Members in the following way: Members which paid their ordinary contributions in the financial period in which this surplus accrued shall have their share of the surplus deducted from their contributions assessed for the second year of the succeeding financial period; other Members shall not be credited with their share until they have paid the contributions due from them for the financial period in which the surplus accrued. When they have done so, their share of such surplus shall be deducted from their contributions assessed for the first year of the next financial period for which a budget is adopted after such payment.
Composition
of the Administrative Tribuna l
of the International Labour Organization
At its 274th Session (March 1999), the Governing Body decided, on the recommendation of its Programme, Financial and Administrative Committee,(4) to propose to the International Labour Conference at its 87th Session (June 1999) that it approve changes in the composition of the Administrative Tribunal of the International Labour Organization and in the terms of office of one of its judges and that it adopt a resolution in the following terms:
The General Conference of the International Labour Organization,
Decides, in accordance with Article III of the Statute of the Administrative Tribunal of the International Labour Organization, to renew the term of office of Ms. Mella Carroll (Ireland) for a period of three years;
Expresses its appreciation to Mr. Mark Fernando for the services which he has rendered to the work of the Administrative Tribunal of the International Labour Organization over the last seven years;
Decides, in accordance with Article III of the Statute of the Administrative Tribunal of the International Labour Organization, to appoint as judge of the Administrative Tribunal, for a term of three years with effect from July 1999, Ms. Justice Ruma Pal (India).
1. See blue title page. This report for the Conference was prepared immediately after the 274th Session (March 1999) of the Governing Body so as to reach member States as early as possible in accordance with article 6 of the Financial Regulations. The discussion of the Programme, Financial and Administrative Committee's third report in the Governing Body will be reflected in the minutes of the 274th Session of the Governing Body, which were not available at the time of going to press.
2. GB.274/9/4, reproduced as Annex 2 to this report.
3. GB.274/PFA/7, reproduced as Annex 3 to this report.
4. GB.274/PFA/14/2, reproduced as Annex 4 to this report.
Third report of the Programme, Financial and Administrative Committee of the Governing Body at its 274th Session blue (March 1999) (GB.274/9/3(Rev.1)) |
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Report of the Government members of the Committee on pink Allocations Matters (GB.274/9/4) |
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Proposed amendments to the Financial Regulations green (GB.274/PFA/7) |
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Composition of the Administrative Tribunal of the ILO golden (GB.274/PFA/14/2) |
Updated by HK. Approved by RH. Last update: 26 January 2000.