Appendix 26
FINANCIAL AND ADMINISTRATIVE REPORT
1. The funding of activities of the Commission is derived from annual contributions of member countries, to Trust Fund MTF/INT/011/MUL, and from the financial support of the European Commission to the EUFMD, through an 8 m€ agreement (2005-9) which is handled through Trust Fund MTF/INT/003/EEC. A third TF, for additional contributions by member states for specific actions, , is maintained but has not received a contribution in > 6 years. This TF could be useful should MS or non-members wish to support certain actions, parallel to the situation of activities supported by the EC. 2. The Financial report for MTF/INT/011/MUL for 2007 (Final) is provided (ref) and for 2008 is provided in Statement 1. Financial Report for the EC TF is included in Statement 3. 3. The EC TF receives finance in instalments, and the financial report and request for the 3rd instalment is attached for information. 4. The annual administrative budget for biennium 2008-9 was set at the 37th Session in 2007, at US$528,890 (equivalent to 401,956€ at 1/1/07), to be provided by the MS through their annual contributions in 2008 and 2009. The goals agreed at the 74th Session were to maintain a year end balance of US$100,000 as a contingency, as far as possible. This target was almost met in 2007, but cannot be maintained as a result of the impact of US$ depreciation, presuming the US$ does not regain its position (ie rise by >20%). 5. The 2008-9 budget agreement, compared to 2006-7, was based on a 4% rise in costs as a result of inflation, but did not take into account possible effects of depreciation of US$ against the euro. Since salaries and other costs are adjusted to the €, this makes the Commission’s budget vulnerable to depreciation of the US$. 6. Administrative Expenditure in 2007 was US$570,183, against an agreed figure of US$ 548,890, (being US$ 503, 890 at the 36th Session plus a agreement by the 74th Executive Committee of US$45,000 for additional workshops). 7. As a result of the deprecation of the US$ (19% between 1/12007 and June 6th 2007) , the predicted financial situation at end of 2008 is a deficit of US$ >30,000 rising to almost US$90,000 in 2009. 8. For information, if adjusted for US$ depreciation, the 2008-9 budget would now be 628,000 US$. 9. Several options are presented below to address the financial situation, for decision by the Executive Committee. Of these, Option 2 (contributions in €) could raise issues from member countries and Option 3 is an option that relies mainly on third parties.
76th Session of the Executive Committee of the European Commission for the Control
of Foot-and-Mouth Disease
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