Income and expenditure
The budgeted income for 2000–2001, including a withdrawal of CHF 14 million from the Reserve Account, was CHF 336.9 million.
Actual income amounted to CHF 334.5 million (as against CHF 359.1 million 1998–1999), or 0.72 per cent less than the amount budgeted. The following table details the budgeted and actual income.
Total expenditure amounted to CHF 332.2 million (as against CHF 329.8 million in 1998–1999), or 1.66 per cent less than the amount budgeted. Details are given in the table below. When lower than budgeted income in the amount of CHF 2.4 million and the cancellation of CHF 865 500 worth of bad debts are taken into account, the surplus of income over expenditure amounts to CHF 2.3 million (as against CHF 29.3 million in 1998–1999); this amount has been transferred to the Reserve Account.
Technical cooperation projects
In 2001, total
expenditure for UNDP projects amounted to USD 4.4 million, and for trust fund projects to USD 9.9 million. Overall expenditure was thus USD 14.3 million. The corresponding support costs income amounted to USD 0.7 million or CHF 1.2 million. Cash contributions for trust funds were received for a total of USD 15.5 million.
Cash and term deposits
As most of the contributors to the Union’s budget paid their contributions on time, liquidity remained satisfactory throughout the biennium. Contributions for 2002 paid in advance amounted to CHF 70.6 million. It was not, therefore, necessary to request funds from the Government of the Swiss Confederation. The funds available were invested during the biennium, and income from interest amounted to CHF 7.1 million.
Bad debts amounting to a total of CHF 865 500 were written off by corresponding withdrawals from the Reserve for Debtors’ Accounts.
The main indicators show the Union’s financial situation to be sound, despite accounts receivable amounting to CHF 58.7 million at the end of 2001. The Reserve for Debtors’ Accounts stands at CHF 52.5 million, providing 89.6 per cent coverage of all arrears.
Capital Funds and Reserve Account
The 2001 Council approved the establishment of a working capital fund for information technologies, to which the sum of CHF 3.95 million was allocated from the Reserve Account. The 2001 Council also approved the transfer of CHF 4.75 million from the Reserve Account to the Buildings Maintenance Fund.
Working Capital Fund ended the year 2001 with a balance of CHF 32.6 million as against 32.4 million on 1 January 2001.
The Special Fund for Technical Cooperation is based on voluntary contributions to meet the telecommunication needs of the developing countries and urgent requests for assistance they submit to the Union. The related project financing was USD 2.3 million from the Special Fund and from ITU TELECOM surpluses. The capital of the Special Fund at 31 December 2001 was USD 13.9 million.
The Reserve Account is maintained mainly from unused appropriations. On 31 December 2001, the balance in the Reserve Account stood at CHF 17.6 million (as against CHF 38.4 million in 1999), including CHF 2 million for cost-recovery activities, which are identified separately within the Reserve Account.
Although ITU’s financial situation is healthy, some indicators reveal the limitations of the current financial framework. A less rigid financial system, permitting a better grasp of the effects of variations in external factors and
elements, should make it possible to guarantee greater financial stability for the Union.