Chapter

VIII Fund Administration in 1957-58

Author(s):
International Monetary Fund
Published Date:
September 1958
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Training Program

MANY Fund members continue to find it advantageous to grant leave to members of the staffs of their central banks or government departments to enable them to participate in the Fund’s training program. In view of this continued interest, the program for 1957-58 was reorganized to permit the number of participants to be increased. The total number of participants since the inception of the program in 1951 is 143 from 54 member countries.

The primary objective of the training program is to provide qualified personnel from member countries with an opportunity for technical training of a kind that will be useful when, after they return to their countries, they engage in work in which the member and the Fund have a common interest. The scope of the program is interpreted broadly, and the contacts which the Fund has subsequently had with those who have participated in earlier years indicate that Fund training has helped to raise the standards of competence of those who are selected for the program.

Investment of Fund Assets

The Fund’s program of investing not more than $200 million of its gold in U.S. Treasury bills has been continued during the past year. The program, which was described in the 1956 Annual Report (pages 128-29), was undertaken in order to supplement the Fund’s income when it was less than its operating expenses. By November 1957 this supplementary income and the charges paid by members in the last two fiscal years as a consequence of the large demands made by them upon the Fund’s resources had wiped out the deficit accumulated in previous years. Bearing in mind that the Fund may again in the future have an excess of expenditure over income and that the greater part of the Fund’s administrative expenditures will continue to be in U.S. dollars, the Executive Board decided that it would be appropriate to raise income and provide a reserve toward meeting possible future deficits by continuing the investment of a portion of the Fund’s gold. Any administrative deficit in any fiscal year of the Fund is written off first against this reserve. As before, the Fund is enabled to reacquire the same amount of gold as is sold for investment, and the gold value of the investment is maintained.

Investment income from May 1, 1957 to October 31, 1957 amounted to $3,334,657.78; such income from November 1, 1957 to April 30, 1958, amounting to $2,830,560.24, was placed in the Special Reserve Account.

Information

The Fund’s program of publications in 1957-58 was similar to that of earlier years. The list includes the Annual Report of the Executive Directors for the Fiscal year Ended April 30, 1957 (Twelfth Annual Report); the Eighth Annual Report on Exchange Restrictions; two volumes of the Balance of Payments Yearbook, a base book (Volume 8) covering 1950-54 data and a current monthly publication (Volume 9) covering data for 1955-56; Volume VI, Numbers 1 and 2, of Staff Papers; the monthly International Financial Statistics; and the weekly International Financial News Survey. The monthly Direction of International Trade is published jointly with the International Bank for Reconstruction and Development and the Statistical Office of the United Nations.

Administration

At the end of the fiscal year, the Fund staff numbered 433, including 11 temporary employees and 4 on extended leave. Thus during the year there was a net increase of 6. The Fund has continued its policy of recruiting staff on as wide a geographical basis as possible. During the year, 46 new staff members from 17 member countries were recruited. The total number of nationalities on the staff increased to 50, from 47 in the preceding year.

The Fund’s new headquarters building was completed early in 1958 and was dedicated on April 22, 1958. Mr. Hubert Ansiaux of Belgium, Chairman of the Board of Governors, and Mr. Robert W. Anderson, Governor for the host country, the United States, participated in the Dedication Ceremony.

For the past fiscal year the Fund’s income of US$23,585,309.54 exceeded its total expenditure, including the costs of the new building, by $12,287,430.50. As of April 30, 1958, the excess of net income over expenditure, after meeting the accumulated deficit from previous years, was $5,991,691.89. This amount was transferred provisionally to a General Reserve. In addition, $2,830,560.24 of the income received from the Fund’s investment program was transferred to a Special Reserve. The administrative budget approved by the Executive Directors for the period May 1, 1958 to April 30, 1959 is presented in Appendix VI. A tabulation comparing the budget with actual expenditures for the fiscal years 1957 and 1958 and a comparative statement of income are also presented there.

The Executive Board requested the Governments of Canada, China, and Iran to nominate members of the Audit Committee. The following nominations were made and confirmed: Mr. Ian Stevenson, Assistant Auditor General of Canada, Ottawa; Mr. Felix S. Y. Chang, Manager, Foreign Department, Bank of Taiwan, Taipei; and Mr. Ziaoullah Shahidi, Assistant Manager, Foreign Department, Bank Melli Iran, Teheran. The report of the Committee is submitted separately. Appendix VII gives the Auditors’ Certificate together with the audited Balance Sheet as of April 30, 1958, the audited Statement of Income and Expenditure, with supporting schedules, and audited financial statements of the Staff Retirement Fund.

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