Official Document of the Pan American Health Organization No. 331 FINANCIAL REPORT OF THE DIRECTOR and REPORT OF THE EXTERNAL AUDITOR 1 January 2006 - 31 December 2007 Pan American Health Organization Regional Office of the World Health Organization ISBN 978 92 75 17331 2 1 Contents Page Director’s Comments........................................................................................................................................................................... 3 Letter of Transmittal............................................................................................................................................................................. 15 Certification of Financial Statements.................................................................................................................................................... 16 Opinion of the External Auditor ........................................................................................................................................................... 17 Introduction .......................................................................................................................................................................................... 18 PART I Pan American Health Organization: Financial Statements Statement I Statement of Income and Expenditure and Changes in Fund Balances for the Financial Period 2006-2007 .............................................................................................................................. 22 Statement II Statement of Assets, Liabilities, and Reserves and Fund Balances as of 31 December 2007 ............................................................................................................................................ 32 Statement III Statement of Cash Flow for the Financial Period 2006-2007............................................................................ 34 Statement IV Statement of Regular Budget Appropriation for the Financial Period 2006-2007............................................. 35 Notes Explanatory Notes to Financial Statements....................................................................................................... 36 Schedule 1 Statement of Assessed Quota Contributions Due from Member and Participating States and Associate Members, 2006-2007 Assessments and Prior Years ......................................................................... 48 Schedule 2 Statement of Advances from Governments and Institutions for Procurement as of 31 December 2007 ............................................................................................................................................ 52 Schedule 3 Statement of the Revolving Fund for the Expanded Program on Immunization as of 31 December 2007 ............................................................................................................................................ 53 Schedule 4 Statement of the Regional Revolving Fund for Strategic Public Health Supplies as of 31 December 2007 ............................................................................................................................................ 55 Schedule 5 Statement of Voluntary Contributions Special Fund for Natural Disaster Relief as of 31 December 2007 ............................................................................................................................................ 56 Schedule 6 Statement of Trust Funds as of 31 December 2007........................................................................................... 61 Caribbean Epidemiology Center: Financial Statements Statement V Statement of Income and Expenditure and Changes in Fund Balances for the Financial Period 2006-2007 .............................................................................................................................. 90 Statement VI Statement of Assets, Liabilities, and Reserves and Fund Balances as of 31 December 2007 ............................................................................................................................................ 93 Statement VII Statement of Cash Flow for the Financial Period 2006-2007............................................................................ 94 2 Notes Explanatory Notes to Financial Statements....................................................................................................... 95 Schedule 7 Statement of Assessed Quota Contributions Due from Members, 2006-2007 Assessments and Prior Years ........................................................................................................................................................ 99 Schedule 8 Statement of Trust Funds as of 31 December 2007......................................................................................... 103 Caribbean Food and Nutrition Institute: Financial Statements Statement VIII Statement of Income and Expenditure and Changes in Fund Balances for the Financial Period 2006-2007 ............................................................................................................................ 108 Statement IX Statement of Assets, Liabilities, and Reserves and Fund Balances as of 31 December 2007 .......................................................................................................................................... 110 Statement X Statement of Cash Flow for the Financial Period 2006-2007.......................................................................... 111 Notes Explanatory Notes to Financial Statements..................................................................................................... 112 Schedule 9 Statement of Assessed Quota Contributions Due from Members, 2006-2007 Assessments and Prior Years ...................................................................................................................................................... 114 Schedule 10 Statement of Trust Funds as of 31 December 2007......................................................................................... 117 Report of the External Auditor ....................................................................................................................................................... 119 PART II Institute of Nutrition of Central America and Panama: Financial Statements Certification of Financial Statements.................................................................................................................................................. 166 Opinion of the External Auditor ........................................................................................................................................................ 167 Statement XI Statement of Income and Expenditure and Changes in Fund Balances for the Financial Period 2006-2007 ............................................................................................................................ 168 Statement XII Statement of Assets, Liabilities, and Reserves and Fund Balances for the Financial Period 2006-2007 ............................................................................................................................ 172 Statement XIII Statement of Cash Flow for the Financial Period 2006-2007.......................................................................... 173 Notes Explanatory Notes to Financial Statements..................................................................................................... 174 Schedule 11 Statement of Assessed Quota Contributions Due from Members, 2006-2007 Assessments and Prior Years ...................................................................................................................................................... 184 Schedule 12 Statement of Trust Funds as of 31 December 2007......................................................................................... 185 Report of the External Auditor ...................................................................................................................................................... 191 3 Director’s Comments 1. Overview During the 2006-2007 biennium, the Pan American Health Organization (PAHO) mobilized significantly greater financial resources which enabled the Organization to strengthen its efforts to improve public health, promote well-being, reduce inequalities and social exclusion, and contribute to the health of the people of the Americas. With the increased financial resources, the Organization also provided a more comprehensive response to countries’ needs and continued to promote Health for All, while moving forward in its efforts to tackle the unfinished agenda, protect health achievements, and respond to the challenges in public health faced by the Member States. The Organization’s total funding reached $1.16 billion, $359 million greater than 2004-2005, and the highest level of income for the Organization in any biennium. This increased income resulted from (1) the payment of Member States’ quota arrearages, (2) the greater mobilization of voluntary contributions for public health, (3) the increase in procurement of essential public health vaccines and supplies on behalf of the Member States, and (4) the increased funding from the World Health Organization for the Region of the Americas. The Organization received the highest level of quota assessment payments in over ten years with current 2006-2007 biennium quota assessment