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OFFICIAL RECORDS OF THE WORLD HEALTH ORGANIZATION No. 200 FINANCIAL REPORT 1 JANUARY-31 DECEMBER 1971 Supplement to the Annual Report of the Director- General for 1971 AND REPORT OF THE EXTERNAL AUDITOR TO THE WORLD HEALTH ASSEMBLY WORLD HEALTH ORGANIZATION GENEVA 1972 The following abbreviations are used in volumes of the Official Records of the World Health Organization: ACABQ Advisory Committee on Administrative and Budgetary Questions ACAST Advisory Committee on the Application of Science and Technology to Development ACC Administrative Committee on Co- ordination CIOMS Council for International Organizations of Medical Sciences DANIDA Danish International Development Agency ECA Economic Commission for Africa ECAFE Economic Commission for Asia and the Far East ECE - Economic Commission for Europe ECLA - Economic Commission for Latin America FAO - Food and Agriculture Organizationof the United Nations IAEA - International Atomic Energy Agency IARC - International Agency for Research on Cancer IBRD - International Bank for Reconstruction and Development ICAO - International Civil Aviation Organization ILO - International Labour Organisation(Office) IMCO - Inter- Governmental Maritime ConsultativeOrganization ITU - International Telecommunication Union OAU - Organization of African Unity PAHO - Pan American Health Organization PASB - Pan American Sanitary Bureau SIDA - Swedish International Development Authority UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme UNDP /SF - United Nations Development Programme, Special Fund component UNDP /TA - United Nations Development Programme, Technical Assistance component UNESCO - United Nations Educational, Scientific and Cultural Organization UNESOB - United Nations Economic and Social Office in Beirut UNFPA - United Nations Fund for Population Activities UNICEF - United Nations Children's Fund UNITAR - United Nations Institute for Training and Research UNIDO - United Nations Industrial Development Organization UNRWA - United Nations Relief and Works Agency for Palestine Refugees in the Near East UNSCEAR - United Nations Scientific Committee on the Effects of Atomic Radiation USAID - United States Agency for International Development WHO - World Health Organization WMO - World Meteorological Organization The designations employed and the presentation of the material in the Official Records of the World Health Organization do not imply the expression of any opinion whatsoever on the part of the Director -General concerning the legal status of any country or territory or of its authorities, or concerning the delimitation of its frontiers. PRINTED IN SWITZERLAND CONTENTS Financial Report Page Letter of transmittal 2 Introduction 3 PART I: REGULAR AND SPECIAL FUNDS Explanatory notes 5 Exhibit I: Statement of assets and liabilities as at 31 December 1971 14 Exhibit II: Statement of appropriations, obligations and balances for the year 1971 16 Exhibit III: Consolidated statement of income and obligations incurred for the financial year 1971 and status of Working Capital Fund and special funds as at 31 December 1971 18 Schedule 1: Statement of income and obligations for the effective working budget for 1971 20 Schedule 2: Statement of outstanding contributions - 1971 budget and prior years 21 Schedule 3: Tax Equalization Fund 25 Schedule 4A: Trust funds 27 Schedule 4B: Trust funds: International Agency for Research on Cancer 28 Schedule 4C: Terminal Payments Account 29 Schedule 5A: Real Estate Fund 30 Schedule 5B: Special Account for Gifts to Equip and Furnish the European Regional Office 31 Schedule 5C: Construction of underground parking garage 32 Schedule 6: Working Capital Fund 33 Schedule 7: Holding Account 37 Schedule 8: Casual Income Account 38 Schedule 9: Revolving Sales Fund 39 Schedule 10: Voluntary Fund for Health Promotion 40 Schedule 11: Special Account for Servicing Costs 43 Schedule 12: Special Account for Operation of Concessions at Headquarters 44 Schedule 13: Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training 45 Schedule 14: Executive Board Special Fund 46 Schedule 15: Statement of obligations, 1971 47 ANNEX TO PART I: INTERNATIONAL AGENCY FOR RESEARCH ON CANCER Explanatorynotes 49 Exhibit IV: Statement of assets and liabilities as at 31 December 1971 51 Exhibit V: Statement of appropriations, obligations and balances for the year 1971 52 Exhibit VI: Consolidated statement of income and obligations incurred for the financial year 1971 and status of Working Capital Fund, Governing Council Special Fund, and Voluntary Designated Contributions Account as at 31 December 1971 53 Schedule 16 Statement of contributions, 1971 budget and prior years 54 Schedule 17 . Working Capital Fund 55 56 Schedule 18 . Governing Council Special Fund Schedule 19 Voluntary Designated Contributions Account 57 Schedule 20 Statement of obligations, 1971 58 III Page PART II: TECHNICAL ASSISTANCE COMPONENT OF THE UNITED NATIONS DEVELOPMENT PROGRAMME Explanatory notes 59 Exhibit VII: Statement of income and commitments incurred during 1971, and of assets and liabilities as at 31 December 1971 60 PART III: SPECIAL FUND COMPONENT OF THE UNITED NATIONS DEVELOPMENT PROGRAMME Explanatory notes 61 Exhibit VIII: Statement of income and commitments incurred during 1971, and of assets and liabilities as at 31 December 1971 62 Schedule 21: Summary statement of projects as at 31 December 1971 63 APPENDICES TO FINANCIAL REPORT 1. Obligations incurred in 1971 under the regular effective working budget, the Technical Assistance component of the United Nations Development Programme, the Voluntary Fund for Health Promotion, and other funds administered by the Organization 65 2. Implementation of the 1971 regular budget, by appropriation section 67 3. Implementation of the 1971 regular budget: Direct services to governments, by subject heading 69 4. Project costs for 1971 by subject heading, including cost of regional advisers, regional health officers, WHO and zone representatives: 1. Summary 77 2. Breakdown by region and country 78 5. Special Account for Medical Research - Specified activities:Total disbursements for 1971 130 Report of the External Auditor Letter of transmittal 132 I. Report on the audit of the accounts of WHO for the financial year 1971 133 II. Report on the audit relating to the operations of WHO under the Technical Assistance component of the United Nations Development Programme for the year 1971. 137 III. Report on the audit relating to the operations of WHO under the Special Fund component of the United Nations Development Programme for the year 1971 137 IV FINANCIAL REPORT LETTER OF TRANSMITTAL In accordance with the provisions of the Constitution,I have the honour to submit the financial statements of the World Health Organization in respect of the financial year 1 January to 31 December 1971. This report supplements and completes the Annual Report of the Director -General for 1971.1 Director -General 1 Off. Rec. Wld Hlth Org., 1972, No. 197. - 2 - I N T R O D U C T IO N The Financial Report of the World Health Organization for the financial year 1 January to 31 December 1971 is presented in three parts, Part I covering the activities financed from regular and special funds, including the trust fund for the International Agency for Research on Cancer, Part II the activities financed from funds provided under the Technical Assistance component of the United Nations Development Programme, and Part III the activities financed from the Special Fund component of the United Nations Development Programme. Explanatory notes are furnished at the beginning of each part of the report. In Part I of the report, the Statement of Assets and Liabilities (Exhibit I) and its supporting schedules show the financial position of the Organization at 31 December 1971, whilst Exhibits II and III reflect the Organization's activities for the year. Exhibit III is a consolidated statement of all funds and special accounts and shows all the transfers made between these funds or accounts during 1971. Exhibits IV, V and VI relate to the International Agency for Research on Cancer. The activities carried out during the year are reflected in financial terms in the appendices. In Part II of the report, Exhibit VII relates to the funds received from the Technical Assistance component of the United Nations Development Programme, and shows the assets and liabilities, the income received, the commitments incurred during 1971, and the balance as at 31 December. In Part III of the report, Exhibit VIII (with its supporting schedule) relates to projects financed from the Special Fund component of the United Nations Development Programme. - 3 - PART I REGULAR AND SPECIAL FUNDS Explanatory Notes ASSETS AND LIABILITIES (Exhibit I - page 14) Cash (Exhibit I- page 14) The total cash at banks, in transit and in hand amounted to $ 1 823 506. Funds in currencies other than US dollars are accounted for at their dollar equivalent, based on the Organization's official rates of exchange. Letter of credit (Exhibit I- page 14) The amount of $ 940 000 represents the undrawn balance of a letter of credit of $ 1 000 000 received in 1968 from the Government of the United States of America towards financing, through the Voluntary Fund for Health Promotion, the establishment of a national institute of public health at Saigon. Further withdrawals will be made to meet cash require- ments as the implementation of the project proceeds. Investments (Exhibit I- page