FAO Conference resolutions

Resolution

6/73

AUTHORITY TO TRANSFER CERTAIN AMOUNTS TO A SUSPENSE

ACCOUNT

THE CONFERENCE

Aware

of the serious impact on the Organization's Programme of Work and Budget for 1972-73 of unbudgeted extra costs due mainly to movements of currency exchange rates and to inflationary trends,

Having considered

the recommendations of the

Council

at its Sixtieth Session as regards measures to ensure the financing of such unbudgeted extra costs as may have to be met during the 1974-75 biennium as a result of continuing pressures in these areas,

Conscious

of the need to ensure that adequate cash resources are available to the Organization to finance the Programme of Work approved by the

Conference

for 1974-75.

Authorizes

the

Director-General

to transfer funds not to exceed $4 million to a suspense account for the purpose of meeting in 1974-75 such unbudgeted extra costs and cash needs, as follows:

(i)

Notwithstanding the provisions of Financial Regulation 6.1(b), the cash surplus of the 1970-71 biennium withheld in accordance with Conference Resolution 24/71, and any cash surplus which may materialize in the 1972-73 biennium, shall be transferred, as necessary, to such suspense account;

(ii)

Notwithstanding the provisions of Financial Regulation 6.1(a), payment of the balance of the 1973 assessment of the maximum contributor, if not received until 1974, shall be transferred as necessary to such Suspense Account; and

(iii)

Notwithstanding the provisions of Financial Regulation 5.2(a), Miscellaneous Income of the 1974-75 biennium shall be transferred, as necessary, to such suspense account; amounts not so transferred shall remain in the Miscellaneous Income Account.

Further

authorizes

the

Director-General

to use the funds in the suspense account:

(i)

Whenever the Working Capital Fund is insufficient to finance budgetary expenditure, to advance monies to the General Fund to finance such expenditure pending receipt of contributions from Member Nations to the budget such advances to be reimbursed from subsequent receipts of contributions as soon as feasible; and

(ii)

Subject to prior

Finance Committee

review and

Council

approval:

(a)

to finance unbudgeted extra costs due to movements of currency exchange rates, and

(b)

to finance unbudgeted extra costs due to unforeseen inflationary trends to the extent that such costs cannot be met through budgetary savings, up to a total amount of $2 million; funds so used under (a) and (b) shall not be reimbursed to the suspense account;

Decides

that at the end of 1975 the suspense account shall be closed and the unused portion of this account transferred to cash surplus.

(Adopted

28 November 1973

)

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