Working Capital and Reserve Fund of the Expanded Programme of Technical Assistance

XI. RESOLUTIONS ADOPTED ON THE REPORTS OF THE SECOND COMMITTEE
1022. Working Capital and Reserve Fund of the Expanded Programme of Technical Assistance

The General Assembly, Having considered the part of the report of the Economic and Social Council relating to the Working Capital and Reserve Fund of the Expanded Programme of Technical Assistance,[1]

1. Approves the recommendation of the Economic and Social Council in resolution 623 B II (XXII) of 9 August 1956 that the regulations concerning the Working Capital and Reserve Fund be amended as set forth in the annex to the present resolution;

2. Decides to amend accordingly section B of General Assembly resolution 831 (IX) of 26 November 1954.

632nd plenary meeting,
21 December 1956.

ANNEX

Amendments to Economic and Social Council resolutions 521 A (XVII) of 5 April 1954 and 542 B II (XVIII) of 29 July 1954, as approved by the Council in resolution 623 B II (XXII) of 9 August 1956

A. Replace paragraphs 5 (a), (b) and (c) of resolution 521 A (XVII) by the following text:

"(a) The Working Capital and Reserve Fund shall be maintained as a continuing operating reserve for the following purposes:

"(i) To make advances against firm pledges of contributions to finance the technical assistance programme as approved by the Technical Assistance Committee; sums so advanced shall be reimbursed as soon as receipts from contributions are available for the purpose; provided that advances against pledges shall be reviewed periodically by the Technical Assistance Committee to determine whether the advances shall continue or be repaid from other resources of the programme;

"(ii) To improve and facilitate currency management;

"(iii) To make advances to participating organizations to provide working balances in their bank accounts;

"(iv) To make advances to finance commitments which may be duly authorized by the Executive Chairman of the Technical Assistance Board under authority given to him to meet urgent needs which may arise during the implementation of the annual programme; provided that the repayment of such advances shall constitute a priority charge against the resources of the following year;

"(v) To provide funds to cover forward contractual commitments and to meet residual liquidating liabilities; each participating organization shall limit its forward contractual commitments and residual liquidating liabilities to its pro rata share of the Working Capital and Reserve Fund, based on the allocations authorized for the current year;

"(vi) For such other purposes as may be approved by the Technical Assistance Committee from time to time;

"(b) The size of the Working Capital and Reserve Fund shall be determined from time to time by the Technical Assistance Committee;

"(c) The Technical Assistance Board shall report annually to the Technical Assistance Committee on the advances outstanding at the end of the period."

B. Replace paragraphs 1 (b) (v) and (vii) of resolution 542 B II (XVIII) by the following text:

"(v) Subject to the confirmation of the General Assembly, the Technical Assistance Committee shall authorize the allocation of funds to each of the participating organizations in proportion to their share in the approved over-all programme. These funds shall be drawn from the net financial resources, after setting aside the expenses of the secretariat of the Technical Assistance Board and such amounts as may be required to reimburse the Working Capital and Reserve Fund for withdrawals during the preceding year to finance obligations for urgent needs authorized by the Executive Chairman of the Technical Assistance Board under paragraph (vii) below;

"(vii) Any extraordinary requests submitted by a Government for modification of the programme received subsequent to the approval of the annual programme by the Technical Assistance Committee may be approved by the Technical Assistance Board and reported to the Technical Assistance Committee at its next meeting. Should it not be possible to effect necessary increases and decreases within the programme of the country concerned, the Executive Chairman of the Technical Assistance Board may authorize participating organizations to enter into commitments to meet urgent needs within limits fixed annually by the Technical Assistance Committee but not to exceed 5 per cent of the estimated resources for the year. The Technical Assistance Board shall report to the Technical Assistance Committee annually, beginning with the session in November 1957, all allocations made under this provision, together with the circumstances relating thereto. The Technical Assistance Committee shall review those allocations, and make such recommendations as it deems appropriate."

---

[1] Ibid., Eleventh Session, Supplement No. 3 (A/3154), chapter III, section VI, para. 239.