Resolution A.969(24)

WORK PROGRAMME AND BUDGET FOR THE TWENTY-FOURTH FINANCIAL PERIOD 2006-2007

(Adopted on 28 November 2005)

A. WORK PROGRAMME AND BUDGET FOR 2006-2007

 

THE ASSEMBLY,

 

RECALLING Article 15 of the Convention on the International Maritime Organization, in particular paragraphs (f) and (g) concerning the functions of the Assembly in relation to the Organization’s work programme and budget,

 

RECALLING FURTHER resolution A.726(17) by which the revised assessment formula for apportioning the contributions of Member States to the Organization’s budget and amendments to the Rules of Procedure of the Assembly concerning enforcement of the payment of contributions were approved,

 

NOTING the provision of article III of the Financial Regulations with regard to the preparation of the programme budget estimates,

 

1. APPROVES the Organization’s work programme and budget for the twenty-fourth financial period 2006-2007, comprising major programmes which are divided into programmes and sub-programmes, capital investments and general operating expenses including the running costs of the Headquarters premises;

 

2. DECIDES that:

 

(a) For the financial period 2006-2007 appropriations are hereby voted for the following purposes:

 

 

(b) The appropriation voted in subparagraph (a) above shall be financed by:

 

• contributions from Member States after deductions for the estimated reimbursements from the Printing Fund for the costs associated with IMO publishing (estimated at £2,057,000 for the biennium);

 

• a transitional transfer from the Printing Fund following the closure of the Production Unit (estimated at £350,000 for the biennium);

 

• reimbursements of Technical Co-operation support costs (estimated at £600,000 for the biennium); and

 

• miscellaneous income (estimated at £736,000 for the biennium);

 

(c) Transfers of uncommitted balances of appropriations to the same major programme of the budget in the second calendar year, other than those authorized by article IV of the Financial Regulations, and transfer of appropriations between major programmes of the budget, shall be carried out only with the prior concurrence of the Council; and

 

(d) In respect of each of the calendar years 2006 and 2007 covered by the financial period, the approved meetings shall be as in appendix 1, the approved posts as in appendix 2, and the appropriations and assessments shall be those indicated under the relevant programme headings in appendix 3,

 

NOTING the provision in regulation 5.1 of the Organization’s Financial Regulations and Rules concerning the use of the Working Capital Fund to finance the approved appropriation pending receipt of contributions,

 

RECOGNIZING ALSO that exceptional and unforeseen circumstances could arise pending receipt of contributions and when the funds in the Working Capital Fund are insufficient to finance the approved appropriations,

 

3. AUTHORIZES the Secretary-General to draw upon the Printing Fund, the Headquarters Capital Fund, the Technical Co-operation Fund and the Termination Benefit Fund to finance the approved appropriations. Advances made from these Funds to finance budgetary appropriations during a financial period shall be reported to the Council immediately and reimbursed to each respective Fund as soon as, and to the extent that, income is available for that purpose;

 

RECOGNIZING further the provision in regulation 3.8 of the Organization’s Financial Regulations and Rules concerning supplementary estimates and the past practice of the Assembly in authorizing the Council to approve any necessary recalculation of the appropriations for the second year of the biennium,

 

RECOGNIZING ALSO that, in accordance with article IV of Financial Regulation 4.4, the Secretary-General may make transfers from one programme to another within the same major programme,

 

4. AUTHORIZES the Council, at its ninety-sixth session, to review the 2007 programme budget provisions and, if it decides it is necessary, to approve any appropriate recalculation of the 2007 appropriations and assessment figures in the light of the budgetary and exchange rate situation at that time;

 

5. INVITES the attention of the Council to the above-mentioned provisions;

 

6. REQUESTS the Secretary-General to ensure their application while endeavouring to effect the maximum economies in the budget;

 

7. REQUESTS ALSO the Council to keep under review the Organization’s financial framework during the 2006-2007 biennium and to report on the outcome to the twenty-fifth session of the Assembly.

 

B. WORKING CAPITAL FUND

 

THE ASSEMBLY,

 

RECALLING resolution A.363(IX) by which the Working Capital Fund was established in the amount of $250,000 as of 1 January 1976 by means of advances assessed on Member States,

 

RECALLING FURTHER resolution A.508(XII) authorizing the transfer to the Working Capital Fund of $400,000 from the Printing Fund surplus, resolution A.552(13) authorizing the transfer to the Working Capital Fund of $350,000 from the General Fund cash surplus, resolution A.633(15)B increasing the level of the Working Capital Fund to £1.25 million by a transfer from the Exchange Reserve Fund, and resolution A.837(19) increasing the level of the Working Capital Fund to £2 million in two stages by the transfer of £375,000 in each year of the 1996-1997 biennium from the surpluses of the Printing Fund which arose at the end of 1995 and 1996,

 

NOTING that, after taking into account payments by new Members, the level of the Working Capital Fund presently stands at £2,005,955,

 

1. DECIDES that new Members shall be assessed for their advances to the Working Capital Fund on the basis only of the part assessed on Members on 1 January 1976;

 

2. AUTHORIZES the Secretary-General:

 

(a) To advance, from the Working Capital Fund, such sums as may be necessary to finance the appropriations for the years 2006 and 2007 pending receipt of contributions from Members; such amounts so advanced shall be reimbursed to the Working Capital Fund as soon as contributions are available;

 

(b) To advance, from the Working Capital Fund, such sums as may be necessary to finance additional expenditure arising from movements in the rate of exchange during 2006-2007 from the rate adopted for calculation of the appropriation; sums so advanced shall be returned to the Working Capital Fund as soon as possible and in a manner decided on by the Council; and

 

(c) With the prior agreement of the Council, to advance such sums as may be necessary to meet unforeseen or extraordinary expenses arising during the financial period 2006-2007, provided that such expenses are of a clearly exceptional nature and relate specifically to the approved work programme of the Organization and that the Council is assured that the relevant expenditure cannot be met by appropriate transfer action within the total budget approved for a calendar year;

 

3. REQUESTS the Secretary-General to report to the Council and the Assembly all advances made under the present resolution, and the relevant circumstances, and to submit supplementary estimates for reimbursement to the Working Capital Fund of advances made from it to meet unforeseen or extraordinary expenses.

 

C. PRINTING FUND

 

THE ASSEMBLY,

 

RECALLING that, in accordance with resolution A.100(IV), the disposal of any amount standing to the credit of the Printing Fund at the end of the financial period shall be decided by the Assembly,

 

RECALLING ALSO resolution A.307(VIII) of 17 December 1973, concerning the charging of expenditure to the Printing Fund,

 

RECALLING FURTHER resolution A.873(20) of 27 November 1997, by which the Assembly authorized the Secretary-General to transfer, at the beginning of each year from 1 January 2000, all surplus funds from the Printing Fund to the Technical Co-operation Fund, unless otherwise decided by the Assembly,

 

ALSO RECALLING resolution A.877(21) of 25 November 1999, by which the Assembly authorized the Secretary-General, with effect from the twenty-second financial period, to charge to the Printing Fund the attributable indirect costs associated with the printing of the Organization’s publications and show them in the Printing Fund accounts,

 

FURTHER RECALLING resolution A.906(22) of 29 November 2001, by which the Assembly decided that the direct costs associated with the Organization’s printing and publishing activities funded wholly by the regular budget would be reimbursed from the Printing Fund on a phased basis, namely 60% of the direct costs of the Publishing Service, including relevant financial services, for 2002-2003 and 100% of the direct costs for 2004-2005,

 

1. DECIDES that the reimbursements from the Printing Fund to the regular budget shall be shown in the Printing Fund accounts, including the transitional transfers from the Printing Fund during 2006 and 2007 to cover the shortfall in the reimbursements level following the closure of the Production Unit at the end of the calendar year 2005. In respect of each of the calendar years 2006 and 2007 covered by the financial period, the approved appropriations voted to meet the Organization’s printing and publishing activities financed from the Printing Fund shall be as shown in appendix 4, Table 1;

 

2. DECIDES ALSO that the amount standing to the credit of the Printing Fund at the end of the financial period 2004-2005 shall be carried forward to the Printing Fund for the financial period 2006-2007;

 

3. DECIDES FURTHER that the interest earnings accruing in the Printing Fund shall continue to be credited to the Printing Fund;

 

4. AUTHORIZES the Secretary-General:

 

(a) To transfer, on 1 January 2006, as a transitional measure following the closure of the Production Unit and to reduce assessments on Member States, £175,000 from the balance of the 2005 Printing Fund surplus to the General Fund, as noted in paragraph 2(b) of Part A of this resolution;

 

(b) To transfer, on 1 January 2007, as a transitional measure following the closure of the Production Unit and to reduce assessments on Member States, £175,000 from the balance of the 2006 Printing Fund surplus to the General Fund, as noted in paragraph 2(b) of Part A of this resolution;

 

(c) To transfer, on 1 January 2006, £700,000 from the balance of the 2005 Printing Fund surplus to the Headquarters Capital Fund, as noted in paragraph 1(a) of Part D of this resolution;

 

(d) To transfer, on 1 January 2007, £700,000 from the balance of the 2006 Printing Fund surplus to the Headquarters Capital Fund, as noted in paragraph 1(b) of Part D of this resolution;

 

(e) To transfer, on 1 January 2006, £2,400,000 from the balance of the 2005 Printing Fund surplus to the Technical Co-operation Fund, as noted in paragraph 1(a) of Part E of this resolution;

 

(f) To transfer, on 1 January 2007, £2,400,000 from the balance of the 2006 Printing Fund surplus to the Technical Co-operation Fund, as noted in paragraph 1(b) of Part E of this resolution;

 

(g) To transfer, on 1 January 2006, £300,000 from the balance of the 2005 Printing Fund surplus to the Termination Benefit Fund, as noted in paragraph 1(a) of Part F of this resolution;

 

(h) To transfer, on 1 January 2007, £300,000 from the balance of the 2006 Printing Fund surplus to the Termination Benefit Fund, as noted in paragraph 1(b) of Part F of this resolution;

 

(i) To transfer, on 1 January 2006, £65,000 from the balance of the 2005 Printing Fund surplus to the Training and Development Fund, as noted in paragraph 1(a) of Part G of this resolution; and

 

(j) To transfer, on 1 January 2007, £65,000 from the balance of the 2006 Printing Fund surplus to the Training and Development Fund, as noted in paragraph 1(b) of Part G of this resolution.

 

D. HEADQUARTERS CAPITAL FUND

 

THE ASSEMBLY,

 

RECALLING that the Assembly decided at its eighteenth regular session, in resolution A.778(18), to establish the Headquarters Capital Fund by transferring the balance held in the Headquarters Installation Fund and by transfers from the Printing Fund of £500,000 in 1994 and £250,000 in 1995,

 

RECALLING ALSO that the Headquarters Capital Fund was established with effect from 1 January 1994 with the primary purpose of meeting the capital expenditure necessary for efficient operation of the Organization and for fulfilling the Organization’s liabilities under the terms of the Lease for the Headquarters building between the Organization and the United Kingdom Government, and with the scope to include:

 

(a) expenditure on repairs to, or replacement of, apparatus and machinery for the Headquarters building (other than regular, planned maintenance costs);

 

(b) purchase and installation of office automation equipment, office furniture and equipment, telecommunications equipment and document production machinery;

 

(c) official vehicles;

 

(d) other items of capital equipment, which relate to the primary purpose of the Fund; and

 

(e) expenditure on the design, installation and implementation of office automation systems, including related training needs,

 

RECALLING FURTHER the Assembly’s decision that the Fund should be replenished from time to time by such transfers from other funds of the Organization as might be approved by the Assembly or by the transfer of such funds from the Organization’s regular budget as might be approved by the Assembly,

 

RECALLING ALSO that the Fund has enabled the planning for, and implementation of, major capital programmes since 1994, notably in the field of office automation and communications necessary to improve the Organization’s efficiency and effectiveness,

 

NOTING that the Council, at its ninety-fourth session in June 2005, agreed in principle to the planned Headquarters building refurbishment, to be carried out in two phases,

 

NOTING ALSO that the funding limit on phase 1 of the Headquarters building refurbishment programme is set at £25 million,

 

WELCOMES the Host Government’s offer to share a greater part of the costs of the proposed refurbishment works on the basis of a 90:10 cost-sharing formula in place of the present 80:20 cost-sharing provision in the Lease Agreement, respectively between the Host Government and the Organization, and its acceptance that the Organization’s contribution to phase 1 of £2.5 million will be paid over the next two biennia,

 

NOTING ALSO that the capital expenditure programme for the next biennium indicates that fresh transfers of funds are required to rebuild the base of the Fund,

 

1. AUTHORIZES the Secretary-General:

 

(a) To transfer £700,000 from the surplus of the Printing Fund on 1 January 2006 to the Headquarters Capital Fund; and

 

(b) To transfer £700,000 from the surplus of the Printing Fund on 1 January 2007 to the Headquarters Capital Fund;

 

2. DECIDES that the income arising from investments of the Headquarters Capital Fund shall continue to be credited to the Headquarters Capital Fund;

 

3. DECIDES ALSO that the appropriations voted to meet the Organization’s capital investment programme financed from the Headquarters Capital Fund including the financing of the planned Headquarters building refurbishment shall be as shown in appendix 4, Table 2.

 

E. TECHNICAL CO-OPERATION FUND

 

THE ASSEMBLY,

 

RECALLING resolution A.593(14) of 20 November 1985, by which the Technical Co-operation Fund was established, and which resolved that the interest should be used to assist the Technical Co-operation Programme of the Organization in accordance with proposals approved by the Assembly,

 

RECALLING ALSO resolution A.837(19) of 23 November 1995, by which the funds from the Technical Co-operation Fund were drawn down and converted into pounds sterling for the application of technical co-operation activities, and which enables the level of the funds to be increased through donor contributions and by such transfers from other funds of the Organization as may be approved by the Assembly,

 

RECALLING FURTHER resolution A.873(20) of 27 November 1997, by which the Assembly authorized the Secretary-General to transfer, at the beginning of each year from 1 January 2000, all surplus funds from the Printing Fund to the Technical Co-operation Fund, unless otherwise decided by the Assembly,

 

RECALLING ALSO resolution A.837(19) of 23 November 1995, by which the Assembly requested the Secretary-General to submit a programme for the projected use of the Technical Co-operation Fund during the 1996-1997 biennium and the rules governing the operation of the Fund to the Council at its seventy-sixth session for the Council’s consideration and approval,

 

NOTING that, in accordance with Rule 14 of the Rules of Operation of the Technical Co-operation Fund, the Secretariat reports annually to the Committee and the Council on progress made in the delivery of the Integrated Technical Co-operation Programme (ITCP) components that are being supported with the Technical Co-operation Fund resources,

 

NOTING with concern the continued decline of the extra-budgetary funds donated to the Organization for technical assistance and the very low level of funds available to finance the ITCP of the Organization,

 

RECOGNIZING the need to finance a core programme of technical co-operation to assist developing countries in their endeavour to implement the various instruments adopted by the Organization,

 

1. AUTHORIZES the Secretary-General to transfer from the surplus of the Printing Fund to the Technical Co-operation Fund:

 

(a) £2,400,000 on 1 January 2006; and

 

(b) £2,400,000 on 1 January 2007;

 

2. DECIDES that the income arising from investments of the Technical Co-operation Fund shall continue to be credited to the Technical Co-operation Fund;

 

3. REQUESTS the Secretary-General to submit programmes of technical co-operation activities, indicating outputs and end results arising from the use of the Fund’s resources, to the Technical Co-operation Committee during the 2006-2007 biennium.

 

F. TERMINATION BENEFIT FUND

 

THE ASSEMBLY,

 

NOTING the Organization’s liability for termination indemnity and repatriation grants of approximately £5 million as at 31 December 1999,

 

RECALLING resolution A.837(19) establishing the Termination Benefit Fund by an initial transfer of £900,000 from the cash surplus of the General Fund on 1 January 1996, in order to meet the costs associated with payment of termination benefit to the staff of the Organization,

 

RECALLING ALSO the decision of the Assembly that the Fund should be replenished as necessary by such transfers from other funds of the Organization or from the Organization’s regular budget as might be approved by the Assembly, and that the Fund should be administered in accordance with the Organization’s Financial Regulations and Rules,

 

RECALLING FURTHER the decision of the Assembly at its twenty-second session, by resolution A.906(22), that the scope of the Fund should be widened to allow the financing of the additional costs of temporary assistance required to replace staff on long-term sick leave,

 

NOTING also that, after taking into account payments to former staff members in connection with separation from service, the level of the Termination Benefit Fund presently stands at approximately £580,000,

 

1. AUTHORIZES the Secretary-General:

 

(a) To transfer £300,000 from the surplus of the Printing Fund on 1 January 2006 to the Termination Benefit Fund; and

 

(b) To transfer £300,000 from the surplus of the Printing Fund on 1 January 2007 to the Termination Benefit Fund;

 

2. DECIDES that income arising from investments of the Termination Benefit Fund shall be credited to the Termination Benefit Fund;

 

3. DECIDES ALSO that the appropriations voted to meet the Organization’s activities financed from the Termination Benefit Fund shall be as shown in appendix 5, Table 1.

 

G. TRAINING AND DEVELOPMENT FUND

 

THE ASSEMBLY,