Chapter

APPENDIX VII (i) BALANCE SHEET, STATEMENT OF INCOME AND EXPENDITURE AND SUPPORTING SCHEDULES

Author(s):
International Monetary Fund
Published Date:
September 1951
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Letter of Transmittal

July 12,1951

My dear Mr. Chairman:

In accordance with Section 20(b) of the By-Laws of the Fund, I have the honor to submit for the consideration of the Board of Governors a balance sheet and statement of income and expenditure of the Fund for the year ended April 30, 1951, together with the Auditors’ Certificate, as well as audited financial statements of the Staff Retirement Fund.

In conformity with the By-Laws, the external audit of the Fund has been performed by an Audit Committee consisting of auditors nominated by three member countries. At the Fund’s request, Belgium, Brazil and India nominated auditors to serve on this Committee. They respectively nominated Mr. Charles Vercruysse, Inspector General of the National Bank of Belgium and Chief of the Accounting Department; Mr. Joao Candido Andrade Dantas, Deputy Manager of the Exchange Department of the Bank of Brazil; and Mr. G. S. Rau, Director of Audit and Accounts, Office of the Comptroller and Auditor General of India. The auditors thus nominated were confirmed by the Executive Directors.

It will be noted that, in the period under review, expenditure exceeded income by $1,913,189.39, and that the total excess of expenditure over income from inception to April 30, 1951, is thus increased to $5,722,892.44.

The detailed report of the Audit Committee is being submitted separately to the Board of Governors.

Yours sincerely,

/s/

A. N.Overby

Acting Chairman of the Executive Board

Chairman of the Board of Governors

International Monetary Fund

APPENDIX VII (ii) AUDITORS’ CERTIFICATE

“We have made an independent examination of the Balance Sheet of the International Monetary Fund as at April 30, 1951, of the Statement of Income and Expenditure for the fiscal year ended that date, and of the schedules related to such financial statements. Our examination was made in accordance with generally accepted auditing standards and included all procedures which we considered necessary in the circumstances. In that connection we have examined or tested, to the extent deemed appropriate, the accounting records of the Fund and other supporting evidence of its financial transactions; we have ascertained generally and to the extent practicable that financial transactions have been conducted in compliance with the Fund’s requirements; and we have obtained from the officers and staff of the Fund such information and representations as we have required in connection with the foregoing. We have also made a general review of the accounting methods and system of internal control.

“In our opinion, based on our examination, such Balance Sheet and related Statement of Income and Expenditure, together with the notes appearing thereon, present fairly the financial position of the International Monetary Fund as at April 30, 1951, and the results of its operations for the year ended that date, and were prepared in conformity with generally accepted accounting principles applied on a basis consistent with that of the previous fiscal period from May 1, 1949 to April 30, 1950.”

/s/ Ch. Vercruysse (Belgium)

/s/ J. C. A. Dantas (Brazil)

/s/ G. S. Rau (India)

APPENDIX VII (iii) BALANCE SHEET

April 30, 1951

Values expressed in United States dollars on the basis of established parities

ASSETS
Gold with Depositories$1,495,042,780.46
(Fine ounces 42,715,508.013 at $35.00 per ounce)
Currency and Securities with Depositories
Currency$ 714,679,738.45
(In members’ currency)
Securities4,914,122,949.495,628,802,687.94
(Non-negotiable, non-interest bearing, demand obligations payable at face value by members in their currencies)
Subscriptions to Capital—Receivable
Balances due$ 9,999,000.00
(Members whose par values have been established)
Balances not due896,545,481.77906,544,481.77
(Members whose par values have not yet been established)
Other Assets680,816.98
(Other cash, receivables, etc.)
TOTAL ASSETS$8,031,070,767.15
(sgd.) FREDERICK W. GRAY, Treasurer
(sgd.) CHARLES M. POWELL, Comptroller and Asst. Treasurer

See Notes on page 120, which are an integral part of this Statement.

CAPITAL, RESERVES, AND LIABILITIES
Capital
Authorized Subscriptions of Members:
Subscriptions at April 30, 1950.$7,921,500,000.00
Subscriptions of two new members115,000,000.00
$8,036,500,000.00
Deduct: Excess of Expenditure Over Income
From inception to April 30, 1950.$ 3,809,703.05
For Year ended April 30, 1951.1,913,189.395,722,892.44
$8,030,777,107.56
Reserves
Reserve for potential cost of turning certain gold into new bars.$ 66,360.70
Reserve for potential cost of converting purchased gold into currency.21,438.9187,799.61
Liabilities
(Accounts payable, deferred income, etc.)205,859.98
TOTAL CAPITAL, RESERVES, AND LIABILITIES$8,031,070,767.15
(sgd.) A. N. Overby, Acting Managing Director
NOTES TO BALANCE SHEET

The established parities for members’ currencies represent par values in relation to the United States dollar as agreed to by the Fund and the members concerned, with the following exceptions: (a) As from August 16, 1950, the French franc has been computed for bookkeeping purposes at a provisional rate of 349.600 French francs per U. S. dollar in place of the previous provisional rate of 340.000. (b) In November 1949 Peru introduced a new exchange system under which no exchange transactions in the member’s territory are based on the par value established with the Fund. The Peruviansol is provisionally computed for bookkeeping purposes at 15 soles per U. S. dollar, (c) In September 1950 Canada introduced a new exchange system under which Canada will not ensure that exchange transactions within its territories will be based on the par value established with the Fund. The Canadian dollar is still computed at the established par value of 1.10000 Canadian dollars per U. S. dollar. Appropriate adjustments of the Fund’s holdings of French francs and Peruvian soles have been made to sustain the values thereof at the new provisional rates.

Gold with the United States depository of the Fund includes 7,926 bars, .995 fine or higher, which are not U. S. Assay Office unmutilated bars. A reserve is provided to meet the potential cost of turning certain of these bars into U. S. Assay Office bars. The amount of gold shown in this balance sheet does not include 2,072.971 fine ounces with the United States depository which are earmarked by the Fund for some members in respect of certain excess payments made by them.

Repurchases actually effected during the financial year are shown on page 133. In addition, two members have yet to discharge repurchase obligations already determined, and determinations will be necessary for one or more of the last three financial years in respect of six members.

The By-Laws of the Fund provide that Governors, Directors, Alternates, and staff shall, in addition to basic salaries and allowances, be compensated for national income taxation thereon. Provision has been made at April 30, 1951, for all known claims. While some liability is considered to exist for unascertained claims it is not practicable to estimate the amount for balance sheet purposes. In addition, the Fund has a substantial contingent liability with respect to prospective claimants whose claims will not arise until they are required to make their tax payments under existing laws.

NOTES TO BALANCE SHEET

The established parities for members’ currencies represent par values in relation to the United States dollar as agreed to by the Fund and the members concerned, with the following exceptions: (a) As from August 16, 1950, the French franc has been computed for bookkeeping purposes at a provisional rate of 349.600 French francs per U. S. dollar in place of the previous provisional rate of 340.000. (b) In November 1949 Peru introduced a new exchange system under which no exchange transactions in the member’s territory are based on the par value established with the Fund. The Peruviansol is provisionally computed for bookkeeping purposes at 15 soles per U. S. dollar, (c) In September 1950 Canada introduced a new exchange system under which Canada will not ensure that exchange transactions within its territories will be based on the par value established with the Fund. The Canadian dollar is still computed at the established par value of 1.10000 Canadian dollars per U. S. dollar. Appropriate adjustments of the Fund’s holdings of French francs and Peruvian soles have been made to sustain the values thereof at the new provisional rates.

Gold with the United States depository of the Fund includes 7,926 bars, .995 fine or higher, which are not U. S. Assay Office unmutilated bars. A reserve is provided to meet the potential cost of turning certain of these bars into U. S. Assay Office bars. The amount of gold shown in this balance sheet does not include 2,072.971 fine ounces with the United States depository which are earmarked by the Fund for some members in respect of certain excess payments made by them.

Repurchases actually effected during the financial year are shown on page 133. In addition, two members have yet to discharge repurchase obligations already determined, and determinations will be necessary for one or more of the last three financial years in respect of six members.

The By-Laws of the Fund provide that Governors, Directors, Alternates, and staff shall, in addition to basic salaries and allowances, be compensated for national income taxation thereon. Provision has been made at April 30, 1951, for all known claims. While some liability is considered to exist for unascertained claims it is not practicable to estimate the amount for balance sheet purposes. In addition, the Fund has a substantial contingent liability with respect to prospective claimants whose claims will not arise until they are required to make their tax payments under existing laws.

APPENDIX VII (iv) STATEMENT OF INCOME AND EXPENDITURE

Year ended April 30, 1951

Values expressed in United States dollars on basis of established parities

INCOME
Income from Operations
Service charges on exchange transactions$ 210,000.00
Charges on Fund’s holdings of members’ currencies and securities in excess of quotas2,448,714.22$2,658,714.22
Other Income
Sale of Fund’s publications$ 12,922.28
Miscellaneous income235.9813,158.26
TOTAL INCOME$2,671,872.48
EXPENDITURE
Current Administration
Personnel Outlays:
Salaries and wages$2,584,383.21
Compensation for national income taxation232,261.12
$2,816,644.33
Expense allowance for Managing Director10,000.00
Installation allowances14,972.00
(for establishment of residence by staff personnel)
Emergency Service Differential1,396.93
Fund’s contributions for staff benefits:
Staff Retirement Fund353,400.99
Health and hospitalization12,797.35
Other contributions1,048.41$3,210,260.01

See Notes on page 124, which are an integral part of this Statement.

TOTAL INCOME (brought forward)$2,671,872.48
CURRENT ADMINISTRATION CONTINUED
(brought forward)$3,210,260.01
Travel:
Travel for Fund’s business$ 191,956.94
Appointment travel59,807.32
(bringing personnel to seat of Fund on appointment)
Repatriation travel54,477.63
(returning personnel to homeland on separation)
Home leave travel34,358.12340,600.01
Communications:
Telegraph and cable services$ 24,764.04
Telephone services43,863.77
Postal services37,097.37105,725.18
Office Occupancy Expense:
Space rentals and maintenance services$ 375,086.06
Building alterations6,227.41381,313.47
Books, newspapers and periodicals25,010.94
Printing, by contract108,765.01
Equipment and supplies:
(including rentals, repairs, and maintenance)
Equipment$ 32,565.58
Consumable supplies42,464.7075,030.28
Carried forward$4,246,704.90

See Notes on page 124, which are an integral part of this Statement.

TOTAL INCOME (brought forward)$2,671,872.48
CURRENT ADMINISTRATION CONTINUED
(brought forward)$4,246,704.90
Miscellaneous expenses:
Insurance$ 11,681.40
External Audit8,216.41
Actuarial expense regarding
Staff Retirement Fund2,491.57
Other miscellaneous expense102,980.86125,370.24
TOTAL EXPENDITURE FOR CURRENT ADMINISTRATION$4,372,075.14
Meeting of Board of Governors:
Fifth Annual Meeting225,877.14
(Sept. 6 to Sept. 14, 1950)
TOTAL ADMINISTRATIVE EXPENSE$4,597,952.28
Other Expenses:
Handling charges of depository in connection with gold of Fund1.76
TOTAL EXPENDITURE$4,597,954.04
EXCESS OF EXPENDITURE OVER INCOME FOR PERIOD$1,926,081.56
INCOME, EXPENDITURES AND ADJUSTMENTS NOT RELATED TO THE PERIOD
Settlement with Poland$ 12,500.00
Adjustments pertaining to the Fourth Annual
Meeting of the Board of Governors696.32
$ 13,196.32
Net Exchange Adjustments304.15$ 12,892.17
DECREASE OF NET CAPITAL FOR YEAR ENDED APRIL 30, 1951$1,913,189.39
(carried to Balance Sheet)
See Notes on page 124, which are an integral part of this Statement.NOTES TO STATEMENT OF INCOME AND EXPENDITURE

The established parities for members’ currencies represent par values in relation to the United States dollar as agreed by the Fund and the members concerned. See also Note to Balance Sheet regarding provisional rates for currencies of certain members established for bookkeeping purposes.

Income from operations represents charges levied against members. Such charges are payable in gold except under certain conditions specified in Article V, Section 8(f), of the Fund Agreement.

Travel in connection with meetings of the Board of Governors is included in the expense of such meetings.

It continues to be the policy of the Fund to write off the cost value of all furniture, office equipment, and automobiles by establishing full depreciation reserves against the assets and to charge the cost value of consumable supplies to expense of the fiscal year in which purchased.

“Settlement with Poland” consists of an amount paid on account of subscription, which was retained as the settlement of accounts agreed upon under Article XV, Section 3, on the withdrawal of Poland from membership.

The net debit for exchange adjustments is the result of bookkeeping entries due to expression of United States dollar values of transactions in gold and members’ currencies.

See Notes on page 124, which are an integral part of this Statement.NOTES TO STATEMENT OF INCOME AND EXPENDITURE

The established parities for members’ currencies represent par values in relation to the United States dollar as agreed by the Fund and the members concerned. See also Note to Balance Sheet regarding provisional rates for currencies of certain members established for bookkeeping purposes.

Income from operations represents charges levied against members. Such charges are payable in gold except under certain conditions specified in Article V, Section 8(f), of the Fund Agreement.

Travel in connection with meetings of the Board of Governors is included in the expense of such meetings.

It continues to be the policy of the Fund to write off the cost value of all furniture, office equipment, and automobiles by establishing full depreciation reserves against the assets and to charge the cost value of consumable supplies to expense of the fiscal year in which purchased.

“Settlement with Poland” consists of an amount paid on account of subscription, which was retained as the settlement of accounts agreed upon under Article XV, Section 3, on the withdrawal of Poland from membership.

The net debit for exchange adjustments is the result of bookkeeping entries due to expression of United States dollar values of transactions in gold and members’ currencies.

APPENDIX VII (v) GOLD

April 30, 1951

Ounces

(.995 fine or higher)
Equivalent Value

in U. S. Dollars
Total Gold with Depositories Valued at U. S. $35.00 per fine ounce42,715,508.0131,495,042,780.46

GOLD EARMARKED FOR MEMBERS

The total shown above does not include gold which is earmarked by the Fund for the following members:

Australia0.002
Brazil1.161
Chile29.385
Czechoslovakia262.518
Denmark208.034
Egypt20.282
Ethiopia0.005
France150.024
India332.936
Mexico234.435
Netherlands83.699
Nicaragua8.026
Norway369.864
Turkey109.388
Yugoslavia263.212
Total2,072.971

APPENDIX VII (vi) CURRENCIES AND SECURITIES WITH DEPOSITORIES—April 30, 1951

Equivalent values in United States dollars are based on exchange rates for established par values

DepositoriesNational CurrenciesAmounts of Currency and Securities

(In Units of National Currencies)
Exchange Rates (See Note 2)Equivalent

Values in U. S.

Dollars
CurrencySecuritiesTotal
Commonwealth Bank of AustraliaPounds17,880,549.1.476,575,000.0.094,455,549.1.4224.000*211,580,429.90
Banque Nationale de BelgiqueFrancs112,456,058.468,324,889,561.248,437,345,619.7050.0000168,746,912.39
Superintendencia da Moeda e do
Credito (Brazil)Cruzeiros3,292,981,328.703,292,981,328.7018.5000177,998,990.74
Bank of CanadaDollars4,090,246.10243,400,000.00247,490,246.101.10000224,991,132.81
Banco Central de ChilePesos1,549,358,556.751,549,358,556.7531.000049,979,308.28
Banco de la Republica de ColombiaPesos73,119,916.0073,119,916.001.9499837,497,777.41
Banco Central de Costa RicaColones21,045,506.9021,045,506.905.615003,748,086.71
Banco Nacional de CubaPesos37,488,562.7937,488,562.791.0000037,488,562.79
Czechoslovak State BankKorunas881,143,972.205,552,378,996.006,433,522,968.2050.0000128,670,459.37
Danmarks NationalbankKroner19,795,054.80479,623,010.92499,418,065.726.9071472,304,610.27
Banco Central de la Republica
DominicanaPesos501,865.333,248,000.003,749,865.331.000003,749,865.33
Banco Central del EcuadorSucres56,243,116.8156,243,116.8115.00003,749,541.12
The Treasury of EgyptPounds209,430.59015,460,170.37515,669,600.965287.156*44,996,199.35
Banco Central de Reserva de El
SalvadorColones4,684,902.174,684,902.172.500001,873,960.87
State Bank of EthiopiaDollars1,368,937.5713,377,375.3014,746,312.8740.2500*5,935,390.93
Banque de FranceFrancs1,854,020,875.00187,550,000,000.00189,404,020,875.00See Note 1541,773,515.08
Banco de GuatemalaQuetzales3,747,136.923,747,136.921.000003,747,136.92
Banco Central de HondurasLempiras102,000.00647,881.60749,881.602.00000374,940.80
National Bank of IcelandKronur12,204,649.8612,204,649.8616.2857749,408.98
Reserve Bank of IndiaRupees463,044,452.4.21,786,600,000.0.02,249,644,452.4.221.0000*472,425,334.97
Bank Melli IranRials11,312,844.50834,690,069.30846,002,913.8032.250026,232,648.49
Rafidain Bank (Iraq)Dinars287,715.2332,569,125.0002,856,840.233280.000*7,999,152.66
Banque de Syrie et du Liban
(Lebanon)Pounds9,270,306.459,270,306.452.191484,230,157.90
Caisse d’Epargne de l’Etat (Luxembourg)Francs5,057,594.09470,886,334.80475,943,928.8950.00009,518,878.57
Banco de MexicoPesos778,482,828.53778,482,828.538.6500089,998,014.85
De Nederlandsche BankGuilders11,206,200.601,059,000,000.001,070,206,200.603.80000281,633,210.68
Departamento de Emision—Banco
Nacional de NicaraguaCordobas7,498,501.197,498,501.195.000001,499,700.23
Norges BankKroner42,299,730.08293,848,315.10336,148,045.1814.0000*47,060,726.32
State Bank of PakistanRupees3,313,520.0.0315,956,652.0.0319,270,172.0.03.3085296,499,393.08
Banco Nacional de PanamaBalboas5,896.55369,000.00374,896.551.00000374,896.55
Banco del ParaguayGuaranies15,738,634.0215,738,634.026.000002,623,105.67
Banco Central de Reserva del PeruSoles3,755,795.94323,953,685.00327,709,480.94See Note 121,847,298.73
Central Bank of the PhilippinesPesos496,489.3322,000,000.0022,496,489.332.0000011,248,244.66
Banque de Syrie et du Liban
(Syria)Pounds1,423,212.6012,447,000.0013,870,212.602.191486,329,153.17
Banque Centrale de la Republique
de TurquieLiras26,043,641.4278,250,000.00104,293,641.422.8000037,247,729.07
South African Reserve BankPounds380,140.5.626,405,574.8.726,785,714.14.1280.000*75,000,001.17
Bank of EnglandPounds4,663,153.16.0470,800,000.0.0475,463,153.16.0280.000*1,331,296,830.64
Federal Reserve Bank of New YorkDollars30,325,737.411,283,000,000.001,313,325,737.411,313,325,737.41
Riggs National Bank (See Note 3)Dollars40,451.4040,451.4040,451.40
Banco Central de VenezuelaBolivares5,019,464.0532,659,359.4237,678,823.473.3500011,247,409.99
Banque Nationale de la Republique Federative Populaire de
YougoslavieDinars3,058,419,083.753,058,419,083.7550.000061,168,381.68
TOTAL5,628,802,687.94

SUMMARY

Currency and Securities with Depositories, per

Balance Sheet, at Equivalent Value in U. S. dollars
Currency$ 714,679,738.45
Securities4,914,122,949.49
Total, as above$5,628,802,687.94

NOTES:

Par values for members currencies are established in relation to the U. S. dollar as agreed to by the Fund and the members concerned with the exception of the French franc and the Peruvian sol which for bookkeeping purposes are computed at provisional rates of 349.600 French francs, and 15.0000 soles per U. S. dollar, respectively. (See also Note 1 to Balance Sheet)

Exchange rates represent number of units of national currencies to the U. S. dollar except for items carrying asterisk (*) which represent number of U. S. cents to the related unit of national currency.

A checking account is maintained with Riggs National Bank in Washington, D. C. for the purpose of making local payments for administrative expenditure.

SUMMARY

Currency and Securities with Depositories, per

Balance Sheet, at Equivalent Value in U. S. dollars
Currency$ 714,679,738.45
Securities4,914,122,949.49
Total, as above$5,628,802,687.94

NOTES:

Par values for members currencies are established in relation to the U. S. dollar as agreed to by the Fund and the members concerned with the exception of the French franc and the Peruvian sol which for bookkeeping purposes are computed at provisional rates of 349.600 French francs, and 15.0000 soles per U. S. dollar, respectively. (See also Note 1 to Balance Sheet)

Exchange rates represent number of units of national currencies to the U. S. dollar except for items carrying asterisk (*) which represent number of U. S. cents to the related unit of national currency.

A checking account is maintained with Riggs National Bank in Washington, D. C. for the purpose of making local payments for administrative expenditure.

APPENDIX VII (vii) STATUS OF SUBSCRIPTIONS TO CAPITAL

April 30, 1951

Values expressed in U. S. Dollars on basis of established parities (See Note 1)

MembersQuotas (in millions of U. S. Dollars)Payments on Subscriptions to CapitalSubscriptions to Capital Receivable
1/100 of 1% Paid in U. S. Dollars2Paid in GoldPaid in Member’s CurrencyBalances Due (Par Values Established)Balances not

Due (Par Values not Established)
Australia2008,404,843.20191,595,156.80
Austria5050,000,000.00
Belgium22522,500.0056,227,500.00168,750,000.00
Bolivia101,000.009,999,000.00
Brazil15015,000.0037,485,030.14112,499,969.86
Canada30030,000.0074,970,000.00225,000,000.00
Ceylon158751,010.0914,248,989.91
Chile505,000.008,813,013.9341,181,986.07
China55055,000.00549,945,000.00
Colombia505,000.0012,495,150.6137,499,849.39
Costa Rica5500.00373,700.094,625,799.91
Cuba505,000.0012,495,386.3637,499,613.64
Czechoslovakia12512,500.002,361,151.14122,626,348.86
Denmark686,800.005,934,983.3262,058,216.68
Dominican Republic5500.001,249,512.673,749,987.33
Ecuador5500.001,249,612.813,749,887.19
Egypt604,500.009,484,075.6950,511,424.31
El Salvador2.5250.00624,787.801,874,962.20
Ethiopia6600.0061,752.225,937,647.78
Finland3838,000,000.00
France52552,500.00108,056,306.15416,891,193.85
Greece404,000.0039,996,000.00
Guatemala5500.001,249,559.813,749,940.19
Honduras.5250.00124,809.20374,940.80
Iceland1100.00249,900.28749,999.72
India40040,000.0027,486,453.61372,473,546.39
Iran352,500.008,764,707.1426,232,792.86
Iraq8800.007,999,200.005
Italy18018,000.00179,982,000.00
Lebanon4.5450.00267,415.1244,232,134.88
Luxembourg101,000.00479,995.969,519,004.04
Mexico909,000.0022,491,205.1467,499,794.86
Netherlands27527,500.0068,722,500.00206,250,000.00
Nicaragua2200.00499,975.661,499,824.34
Norway505,000.0012,495,054.9037,499,945.10
Pakistan10033,500,607.2296,499,392.78
Panama.550.00124,950.25374,999.75
Paraguay3.5200.00875,496.472,624,303.53
Peru252,500.003,149,921.0021,847,579.00
Philippine Republic151,500.003,748,548.7911,249,951.21
Syria6.5650.00169,187.17*6,330,162.83
Thailand12.53,125,008.149,374,991.86
Turkey434,300.0010,745,912.2332,249,787.77
5 Union of South Africa10010,000.0024,994,519.2074,995,480.80
United Kingdom1,300130,000.00236,135,323.701,063,734,676.30
United States2,750275,000.00687,500,000.112,062,224,999.89
Uruguay151,500.0014,998,500.00
Venezuela151,500.003,748,541.9611,249,958.04
Yugoslavia606,000.007,878,546.20452,115,453.80
TOTAL8,036.5759,650.001,469,565,955.485,659,629,912.759,999,000.00896,545,481.77

SUMMARY OF SUBSCRIPTIONS TO

CAPITAL RECEIVABLE

(Per Balance Sheet)
Balance due$ 9,999,000.00
Balance not due896,545,481.77
Total Subscriptions to
Capital Receivable$906,544,481.77

NOTES:

The established parities for members’ currencies represent par values in relation to the United States dollar as agreed by the Fund and the members concerned for the payment of their subscriptions at the time such payments were made. See also Note to Balance Sheet regarding provisional rates for currencies of certain members established for bookkeeping purposes.

As per Article XX, Sec. 2(d) of the Articles of Agreement.

New Members.

Fund has provisionally accepted member’s payment in gold, which is less than 25% of the member’s quota.

Member’s payment exclusively in national currency is considered by the Fund as final.

SUMMARY OF SUBSCRIPTIONS TO

CAPITAL RECEIVABLE

(Per Balance Sheet)
Balance due$ 9,999,000.00
Balance not due896,545,481.77
Total Subscriptions to
Capital Receivable$906,544,481.77

NOTES:

The established parities for members’ currencies represent par values in relation to the United States dollar as agreed by the Fund and the members concerned for the payment of their subscriptions at the time such payments were made. See also Note to Balance Sheet regarding provisional rates for currencies of certain members established for bookkeeping purposes.

As per Article XX, Sec. 2(d) of the Articles of Agreement.

New Members.

Fund has provisionally accepted member’s payment in gold, which is less than 25% of the member’s quota.

Member’s payment exclusively in national currency is considered by the Fund as final.

APPENDIX VII (viii) OTHER ASSETS April 30, 1951

Values expressed in United States dollars (See Note 1)

CASH
Imprest funds$ 2,123.35
(petty cash and postage)
With technical representative overseas$2,012.20
(See Note 2)
In transit to technical representative overseas1,337.753,349.95$ 5,473.30
ACCOUNTS RECEIVABLE (including accruals)
Members’ accounts$589,525.87
(accrued charges against members)
Commercial accounts26,833.38
Travel and Staff advances46,325.81662,685.06
DEFERRED CHARGES (unexpired insurance, etc.)12,658.62
EQUIPMENT
(represents furniture, office equipment, and automobiles at cost value of $452,537.74 against which full reserves for depreciation are carried)
LIBRARY INVESTMENT
(represents law library at cost value of $19,611.73 and investment at cost value of $25,727.60 in library owned jointly with International Bank for Reconstruction and Development, against which full depreciation reserves are carried)
TOTAL OTHER ASSETS, PER BALANCE SHEET$680,816.98
NOTES:

The rates used for the expression of other currencies in U. S. dollars are explained in Note 1 to the Balance Sheet.

Cash with technical representative overseas was French francs 703,466.

NOTES:

The rates used for the expression of other currencies in U. S. dollars are explained in Note 1 to the Balance Sheet.

Cash with technical representative overseas was French francs 703,466.

APPENDIX VII (ix) LIABILITIES

April 30, 1951

Values expressed in United States dollars (See Note)

ACCOUNTS PAYABLE
Members’ Accounts$ 366.50
(excess payment made under Article IV, Section 8(b), reimbursable in member’s currency)
Commercial Accounts and Accruals88,363.44
Governors, Executive Directors, Alternates, Staff, and Staff benefits112,176.20
(amounts due or accrued for salaries and wages, Staff Retirement Fund, travel, etc.)
TOTAL ACCOUNTS PAYABLE AND ACCRUALS$200,906.14
UNEARNED INCOME
Subscriptions to Fund’s publications4,953.84
TOTAL LIABILITIES, PER BALANCE SHEET$205,859.98
NOTE: The rates used for the expression of other currencies in U. S. dollars are explained in Note 1 to the Balance Sheet.
NOTE: The rates used for the expression of other currencies in U. S. dollars are explained in Note 1 to the Balance Sheet.

APPENDIX VII (x) SUMMARY OF TRANSACTIONS

for the year ended April 30, 1951

Exchange TransactionsAmount in

Currency
U. S. Dollar

Equivalent
Currency Sold by Fund
Pounds Sterling10,000,000.0028,000,000.00
Currency Purchased by Fund
Brazilian Cruzeiros518,000,000.0028,000,000.00
Repurchases of their Currency by Members
Currency Repurchased from Fund
Egyptian Pounds2,962,824.9698,507,929.67
Ethiopian Dollars1,490,683.22600,000.00
South African Pounds3,566,183.16.49,985,314.69
19,093,244.36
Currency and Gold Paid to Fund
U. S. Dollars18,263,478.3318,263,478.33
Gold (in fine ounces)23,707.601829,766.03
19,093,244.36
NOTE: The summary excludes US $1,323.93 refunded to Nicaragua in exchange for 6,619.65 cordobas. This transaction was necessitated by the finalization of the voluntary repurchase made by the member during the fiscal year 1949-50 on a provisional basis.
NOTE: The summary excludes US $1,323.93 refunded to Nicaragua in exchange for 6,619.65 cordobas. This transaction was necessitated by the finalization of the voluntary repurchase made by the member during the fiscal year 1949-50 on a provisional basis.

APPENDIX VII (xi) STAFF RETIREMENT FUND

AUDITORS’ CERTIFICATE

“We have made an independent examination of the accounts of the Staff Retirement Fund of the International Monetary Fund for the year ended April 30, 1951. Our examination was made in accordance with generally accepted auditing standards and included all procedures which we considered necessary in the circumstances. In that connection, consideration was given to the authority and other requirements governing transactions of the Staff Retirement Fund.

“The examination did not include a verification of the individual participants’ accounts as at April 30, 1951, except for inquiry into certain of such accounts as a consequence of the application of auditing procedures to the other accounts of the Staff Retirement Fund. We ascertained, however, that the Internal Auditor of the International Monetary Fund had made a detailed audit of all participants’ individual accounts as at April 30, 1951, and we satisfied ourselves that application of the auditing procedures adopted by him would be adequate to insure the correctness of such individual accounts with regard for eligibility, contributions, and interest allowed.

“In our opinion, the Balance Sheet and related statements of the Participants’ Account, Accumulation Account, and Application of Funds, together with the notes appearing thereon, present fairly the financial position of the Staff Retirement Fund of the International Monetary Fund as at April 30, 1951, and the results of operations for the year ended that date, and were prepared in conformity with generally accepted accounting principles applied on a basis consistent with that of the previous fiscal period from May 1, 1949 to April 30, 1950.”

/s/ Ch. Vercruysse (Belgium)

/s/ J. C. A. Dantas (Brazil)

/s/ G. S. Rau (India)

APPENDIX VII (xii) STAFF RETIREMENT FUND

BALANCE SHEET

April 30, 1951

ASSETS
CASH IN BANK
Riggs National Bank, Washington, D. C$ 6,062.59
Chase National Bank, New York, N. Y1,214.76$ 7,277.35
INVESTMENTS (Book value)
(See Page 139)—See Note 4
Bonds:
United States Savings—
Series G (non-marketable)$515,000.00
United States Treasury—
Series B (non-transferable)102,072.98
United States Treasury Bills4,980.95$622,053.93
International Bank for Reconstruction and Development 3% (market value $322,393.75)321,050.09
Commercial (market value $389,397.50)408,203.191,351,307.21
Corporate Stocks:
Common (market value $75,975.00)73,492.751,424,799.96
ACCRUED INTEREST ON INVESTMENTS6,624.56
ACCRUED CONTRIBUTIONS RECEIVABLE FROM INTERNATIONAL MONETARY FUND—See Note 212,935.32
TOTAL ASSETS$1,451,637.19
LIABILITIES AND RESERVES
ACCOUNTS PAYABLE$ 530.19
PARTICIPANTS’ ACCOUNT
Balance April 30, 1950$ 262,455.86
Add: Excess of Income over Outgo (See Page 136)113,853.44
Balance April 30, 1951376,309.30
ACCUMULATION ACCOUNT
Balance April 30, 1950$ 670,604.13
Add: Excess of Income over Outgo (See Page 137)361,487.31
Balance April 30, 19511,032,091.44
RETIREMENT RESERVE
Balance April 30, 1950$ 22,205.44
Add: Income (See Page 138)20,500.82
Balance April 30, 195142,706.26
TOTAL LIABILITIES AND RESERVES$1,451,637.19

See Notes on page 143, which are an integral part of this Statement.

APPENDIX VII (xiii) STAFF RETIREMENT FUND STATEMENT

OF PARTICIPANTS’ ACCOUNT

for the year ended April 30, 1951

INCOME
CONTRIBUTIONS OF
EMPLOYEES
Prior service$ 10,270.04
Participating service134,679.19
Additional voluntary contributions3,293.50$148,242.73
TRANSFERS FROM ACCUMULATION ACCOUNT
(See Page 137)
Interest credited to participants in respect of:
Prior service$ 717.93
Participating service7,229.02
Additional voluntary contributions131.648,078.59
TOTAL INCOME$156,321.32
OUTGO
REFUNDS (Contributions and interest):
To former participants who have
withdrawn$ 28,412.81
To continuing participants upon
withdrawal of optional additional contributions2,322.93$ 30,735.74
TRANSFERS
To Retirement Reserve (See Page 138)$ 10,783.11
To Retirement Fund of International Bank for Reconstruction and Development949.0311,732.14
TOTAL OUTGO42,467.88
EXCESS OF INCOME OVER OUTGO (See Page 135)$113,853.44

See Notes on page 143, which are an integral part of this Statement.

APPENDIX VII (xiv) STAFF RETIREMENT FUND

STATEMENT OF ACCUMULATION ACCOUNT

for the year ended April 30, 1951

INCOME
CONTRIBUTIONS OF
EMPLOYER
Employees’ prior service—See
Note 2$ 90,606.50
Employees’ participating service265,737.07$356,343.57
INCOME ON INVESTMENTS
Interest earned—See Note 329,921.84
Dividends received120.0030,041.84
OTHER INCOME
Interest on unpaid prior service contributions of participants309.01
TOTAL INCOME$386,694.42
OUTGO
BENEFITS
To former participants who have withdrawn$ 5,341.46
TRANSFERS
Interest credited to participants’
accounts (See Page 136)$ 8,078.59
To Retirement Reserve Account
(includes interest of $693.08)
(See Page 138)9,717.71
To Retirement Fund of International Bank for Reconstruction and Development1,034.7118,831.01
OTHER OUTGO
Loss on sale of investments1,034.64
TOTAL OUTGO25,207.11
EXCESS OF INCOME OVER OUTGO (See Page 135)$361,487.31

See Notes on page 143, which are an integral part of this Statement.

APPENDIX VII (xv) STAFF RETIREMENT FUND

STATEMENT OF RETIREMENT RESERVE ACCOUNT

for the year ended April 30, 1951

INCOME
TRANSFERS
From Participants’ Account (See Page 136)$10,783.11
From Accumulation Account (includes interest of $693.08) (See
Page 137)9,717.71
TOTAL INCOME (See Page 135)$20,500.82

See Notes on page 143, which are an integral part of this Statement.

APPENDIX VII (xvi) STAFF RETIREMENT FUND

SCHEDULE OF INVESTMENTS

April 30, 1951

Interest Rate—%MaturityFace

Value
Book

Value
United States Savings
Bonds:
Series G—See Note 31960$250,000.00$250,000.00
Series G—See Note 31961100,000.00100,000.00
Series G—See Note 31962100,000.00100,000.00
Series G—See Note 3196365,000.0065,000.00$515,000.00
United States Treasury
Bonds:
Investment Series B-1975-801980103,000.00102,072.98
United States Treasury
Bills19515,000.004,980.95
International Bank for
Reconstruction and Development Bonds31972276,000.00271,050.09
International Bank for
Reconstruction and Development Bonds3197650,000.0050,000.00321,050.09
Commercial Bonds:
American Telephone &
Telegraph Co.—Debentures198038,000.0038,107.50
Connecticut Light &
Power Co.—1st &
Refunding “L”198412,000.0012,267.34
Consolidated Edison
Co. of New York, Inc.—1st & Refunding “E”3197938,000.0039,802.30
Duke Power Co.—1st & Refunding Mortgage2⅞197913,000.0013,647.50
Illinois Bell Telephone
Co.—1st Mortgage
“A”198125,000.0025,390.27
New York Telephone
Co.—Refunding
Mortgage “D”198237,000.0037,597.72
Pacific Gas & Electric Co.—1st & Refunding “S”3198345,000.0047,076.92
Commercial Bonds (Continued):
Pennsylvania Power & Light Co.—1st Mortgage3197538,000.0039,741.59
Philadelphia Electric Co.—1st & Refunding Mortgage197424,000.0024,323.74
Potomac Electric Power Co.—1st Mortgage198544,000.0044,332.60
Public Service Electric & Gas Co.—1st & Refunding2⅞197940,000.0041,628.01
Standard Oil Co. of New Jersey—Debentures197430,000.0030,139.46
United Gas Corp.—1st Mortgage & Collateral Trust197014,000.0014,148.24408,203.19
No. of Shares
Corporate Stock (Common):
American Can Co.100$ 10,036.00
American Natural Gas Company2005,798.76
Dow Chemical Co.1008,684.65
International Harvester Company2007,004.76
Montgomery Ward Co., Inc.1007,220.69
Pittsburgh Plate Glass Company2008,185.12
Socony Vacuum Oil Co., Inc.40011,057.32
Westinghouse Electric Corp.30011,025.00
F. W. Woolworth Co.1004,480.4573,492.75
TOTAL INVESTMENTS (See Page 135)$1,424,799.96

See Notes on page 143, which are an integral part of this Statement.

APPENDIX VII (xvii) STAFF RETIREMENT FUND

STATEMENT OF APPLICATION OF FUNDS

for the year ended April 30, 1951

FUNDS PROVIDED
Contributions of employees:
Prior service$ 10,270.04
Participating service134,679.19
Additional voluntary contributions3,293.50$148,242.73
Contributions of employer:
For employees’ prior service$ 90,606.50
For employees’ participating service265,737.07356,343.57
Sale of investments:
Book Value$153,974.95
Less Loss on Sale1,034.64152,940.31
Income on investments—See Note 330,041.84
Interest on unpaid prior service contributions of participants309.01
Amortization of premium or accumulation of discount on investments (net)115.88
TOTAL FUNDS PROVIDED$687,993.34
FUNDS APPLIED
Purchase of investments:
Gross amount paid$642,243.62
Less interest accrued to date of purchase1,491.80$640,751.82
Refunds to former participants with interest30,735.74
Benefits to former participants who have withdrawn5,341.46
Transfers to Retirement Fund of International
Bank for Reconstruction and Development:
From Participants’ Account$ 949.031,983.74
From Accumulation Account1,034.71
Increase in working capital (See Page 142)9,180.58
TOTAL FUNDS APPLIED$687,993.34

See Notes on page 143, which are an integral part of this Statement.

STATEMENT OF CHANGES IN WORKING CAPITAL

for the year ended April 30, 1951
April 30,

1951
April 30,

1950
Increase

(Decrease)
CURRENT ASSETS
Cash$ 7,277.35$ 2,806.24$ 4,471.11
Accrued interest on investments6,624.564,735.601,888.96
Accrued contributions receivable
from International Monetary
Fund12,935.3210,017.632,917.69
$ 26,837.23$ 17,559.47$ 9,277.76
CURRENT LIABILITIES
Accounts payable530.19433.0197.18
WORKING CAPITAL$ 26,307.04$ 17,126.46$ 9,180.58
NOTES TO FINANCIAL STATEMENTS OF STAFF RETIREMENT FUND OF THE INTERNATIONAL MONETARY FUND

During the fiscal year the Executive Board of the International Monetary Fund amended the Staff Retirement Plan so as to enable the Executive Directors, Alternates, and certain Staff members on part-time appointment to elect to join the Plan. At the same time such members of the Staff as were permanent on the effective date of the amendment were also given the benefit of their prior temporary service in their total eligible service under the Plan.

The closing balance in the Accumulation Account does not include an amount due from the International Monetary Fund on account of prior service of a few of the participants who came into the Plan as a result of the aforementioned amendment since at the close of the fiscal year, the exact amount had still not been determined.

Income on investments includes interest on United States Savings Bonds, Series G, currently paid at the rate of 2½ percent per annum on the condition that the bonds will be held to maturity which is 12 years after issue. If such bonds should be redeemed, at the option of the owner prior to maturity, the interest previously received at the rate of 2½ percent is subject to adjustment (or refund), resulting in a lower yield on the investment at a rate depending on the length of time the investment is held.

During the fiscal year the Pension Committee decided to invest part of the Staff Retirement Fund, not exceeding 15 percent of the portfolio, in selected corporate stock substantially common.

NOTES TO FINANCIAL STATEMENTS OF STAFF RETIREMENT FUND OF THE INTERNATIONAL MONETARY FUND

During the fiscal year the Executive Board of the International Monetary Fund amended the Staff Retirement Plan so as to enable the Executive Directors, Alternates, and certain Staff members on part-time appointment to elect to join the Plan. At the same time such members of the Staff as were permanent on the effective date of the amendment were also given the benefit of their prior temporary service in their total eligible service under the Plan.

The closing balance in the Accumulation Account does not include an amount due from the International Monetary Fund on account of prior service of a few of the participants who came into the Plan as a result of the aforementioned amendment since at the close of the fiscal year, the exact amount had still not been determined.

Income on investments includes interest on United States Savings Bonds, Series G, currently paid at the rate of 2½ percent per annum on the condition that the bonds will be held to maturity which is 12 years after issue. If such bonds should be redeemed, at the option of the owner prior to maturity, the interest previously received at the rate of 2½ percent is subject to adjustment (or refund), resulting in a lower yield on the investment at a rate depending on the length of time the investment is held.

During the fiscal year the Pension Committee decided to invest part of the Staff Retirement Fund, not exceeding 15 percent of the portfolio, in selected corporate stock substantially common.

See Notes on page 143, which are an integral part of this Statement.

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