Chapter

Appendix V. Financial Statements of International Monetary Fund and Staff Retirement Fund

Author(s):
International Monetary Fund
Published Date:
September 1966
Share
  • ShareShare
Show Summary Details

Letter of Transmittal

July 11, 1966

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 the audited financial statements of the International Monetary Fund, and the Staff Retirement Fund, for the year ended April 30, 1966, together with two memoranda from the Audit Committee, which include the audit certificates.

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, Nigeria, the Philippines, and the United Kingdom nominated auditors to serve on this Committee. They respectively nominated Mr. G. M. Okufi, Senior Auditor, Federal Audit Department, Nigeria; Mr. J. D. Mercado, Executive Assistant to the Deputy Governor, Central Bank of the Philippines; and Mr. R. W. Tizard, Deputy Director of Audit, Exchequer and Audit Department, United Kingdom. The Auditors thus nominated were confirmed by the Executive Directors.

It will be noted that, in the period under review, ordinary income amounted to $81,316,600 and expenditure amounted to $36,771,118, resulting in a net income of $44,545,482, which has been transferred provisionally to General Reserve pending Board of Governors’ action. In addition, income of $33,907,383 from the Fund’s investment program has been transferred to the Special Reserve.

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

Yours sincerely,

/s/

P.-P. Schweitzer

Chairman of the Executive Board

Chairman of the Board of Governors

International Monetary Fund

Memorandum by the Audit Committee

June 21, 1966

To the Managing Director and the Executive Directors

International Monetary Fund

The report of the Audit Committee, dated June 21, 1966, submitted through you to the Board of Governors, on the audit of the financial records and transactions of the Fund for the fiscal year ended April 30, 1966, includes the following paragraphs relating to the scope of the audit conducted, and the audit certificate given:

Scope of the Audit

The Audit Committee, in the conduct of its audit, took cognizance of the requirements of Section 20(b) of the By-Laws that the audit be comprehensive with respect to the examination of the financial records of the Fund; that it extend, insofar as practicable, to the ascertainment that financial transactions consummated during the period under review were supported by the necessary authority; and that it determine that there was adequate and faithful accounting for the assets of the Fund. In determining the authority for financial transactions, reference was made to the Articles of Agreement, the By-Laws and Rules and Regulations of the Fund, the resolutions of the Board of Governors, the minutes of the Executive Board and the General Administrative Orders of the Fund. The Committee applied such tests to the accounting and other financial records as it considered necessary to provide a thorough review of the adequacy of the system of accounting and internal control operated by the Fund. In determining its program of test examination, due regard was paid to the work performed by the Internal Auditor, as reported by him to the Committee, and to the standard of his work performance as surveyed by the Committee.

Audit Certificate

We have made an independent examination of the Balance Sheet of the International Monetary Fund as at April 30, 1966, of the Statements of Income and Expenditure and of Reserves for the fiscal year then ended and of the schedules related to such financial statements. We have obtained from the officers and staff of the Fund all such information and representations as we have required in the conduct of our audit.

As the result of our examination, we report that, in our opinion, 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, 1966, and the results of its operations for the fiscal year then ended, and have been prepared in conformity with generally accepted accounting principles applied on a basis consistent with that of previous fiscal years.

Audit Committee:

/s/ R. W. Tizard, Chairman (United Kingdom)

/s/ G. M. Okufi (Nigeria)

/s/ J. D. Mercado (Philippines)

Exhibit A

Balance Sheet

as at April 30, 1966

Values expressed in U.S. dollars on the basis of established parities (See Note 1)
Assets
Gold Account
Gold with depositories (See Note 2)
(73,987,683.778 fine ounces at $35 per ounce)
Bars$2,368,869,727
General deposits220,699,205$2,589,568,932
Investments (See Note 3)
$826,712,000 U.S. Government
securities maturing within 12
months, at cost$799,979,933
Funds awaiting investment11,578799,991,511$ 3,389,560,443
Currencies and Securities
With depositories
Currencies$ 3,118,219,548
Securities13,233,508,51516,351,728,063
(nonnegotiable, noninterest-bearing demand obligations, payable at face value by members in their currencies)
Subscriptions to Capital—Receivable
Balances not due875,721,807
Subscriptions Due from Members in Respect of Autihorized Increases
in Quotas (Contra)12,680,000
Withdrawing Members’ Currencies (See Note 4)
Cuba$ 7,499,896
Indonesia63,446,06770,945,963
Other Assets (See Note 5)33,883,281
(receivables, accruals, prepayments, and sundry cash)
Total Assets$20,734,519,557
Notes:

With the exception of the following currencies which, for bookkeeping purposes, are computed at the following provisional rates per U.S. dollar:

Algerian dinar4.93706
Argentine peso188.000
Bolivian peso11.8750
Brazilian cruzeiro2,200.00
Chad, CFA franc246.853
Chilean escudo3.46000
Colombian peso9.00000
Guinean franc247.000
Ivory Coast, CFA franc246.853
Kenya, EA shilling7.14286
Korean won255.000
Malagasy franc246.853
Mali tranc246.853
Mauritania, CFA franc246.853
Nepalese rupee7.61900
Paraguayan guarani122.000
Peruvian sol26.8150
Tanzania, EA shilling7.14286
Uganda, EA shilling7.14286
Upper Volta, CFA franc246.853
Vietnamese piastre35.0000

Excludes 68,940.512 fine ounces earmarked for members and a former member.

Made with the proceeds of the sale of 22,856,900.312 fine ounces of gold. Upon termination of the investment, the same quantity of gold can be reacquired.

Redeemable in gold, or convertible currencies acceptable to the Fund, in installments not later than July 1, 1968 in respect of Cuba, and not later than August 17, 1970 in respect of Indonesia.

The assets and liabilities of the Staff Retirement Fund are not included in this Balance Sheet.

A stand-by charge has, under certain circumstances, to be credited against the service charge for a drawing under the stand-by arrangement; the maximum amount on April 30, 1966 is $928,845. A portion of the stand-by charge is refundable to a member if the arrangement is canceled; the maximum amount on April 30, 1966 is $634,458.

Capital, Reserves, and Liabilities
Capital
Authorized subscriptions of members$19,411,266,667
Reserves (Exhibit C)
Special reserve$182,181,830
General reserve186,356,950368,538,780
Subscription Payments in Respect of Increases in Quotas
Consented to but Not Yet Effective
Partial payments made$ 6,620,000
Payments due (Contra)12,680,00019,300,000
Indebtedness to Participants Under General Arrangements to Borrow.930,000,000
Provision for Potential Refunds of Stand-By Charges (See Note 6)928,845
Other Liabilities (See Note 5)4,485,265
(accruals, payables, and deferred credits)
Total Capital, Reserves, and Liabilities$20,734,519,557
Notes:

With the exception of the following currencies which, for bookkeeping purposes, are computed at the following provisional rates per U.S. dollar:

Algerian dinar4.93706
Argentine peso188.000
Bolivian peso11.8750
Brazilian cruzeiro2,200.00
Chad, CFA franc246.853
Chilean escudo3.46000
Colombian peso9.00000
Guinean franc247.000
Ivory Coast, CFA franc246.853
Kenya, EA shilling7.14286
Korean won255.000
Malagasy franc246.853
Mali tranc246.853
Mauritania, CFA franc246.853
Nepalese rupee7.61900
Paraguayan guarani122.000
Peruvian sol26.8150
Tanzania, EA shilling7.14286
Uganda, EA shilling7.14286
Upper Volta, CFA franc246.853
Vietnamese piastre35.0000

Excludes 68,940.512 fine ounces earmarked for members and a former member.

Made with the proceeds of the sale of 22,856,900.312 fine ounces of gold. Upon termination of the investment, the same quantity of gold can be reacquired.

Redeemable in gold, or convertible currencies acceptable to the Fund, in installments not later than July 1, 1968 in respect of Cuba, and not later than August 17, 1970 in respect of Indonesia.

The assets and liabilities of the Staff Retirement Fund are not included in this Balance Sheet.

A stand-by charge has, under certain circumstances, to be credited against the service charge for a drawing under the stand-by arrangement; the maximum amount on April 30, 1966 is $928,845. A portion of the stand-by charge is refundable to a member if the arrangement is canceled; the maximum amount on April 30, 1966 is $634,458.

Notes:

With the exception of the following currencies which, for bookkeeping purposes, are computed at the following provisional rates per U.S. dollar:

Algerian dinar4.93706
Argentine peso188.000
Bolivian peso11.8750
Brazilian cruzeiro2,200.00
Chad, CFA franc246.853
Chilean escudo3.46000
Colombian peso9.00000
Guinean franc247.000
Ivory Coast, CFA franc246.853
Kenya, EA shilling7.14286
Korean won255.000
Malagasy franc246.853
Mali tranc246.853
Mauritania, CFA franc246.853
Nepalese rupee7.61900
Paraguayan guarani122.000
Peruvian sol26.8150
Tanzania, EA shilling7.14286
Uganda, EA shilling7.14286
Upper Volta, CFA franc246.853
Vietnamese piastre35.0000

Excludes 68,940.512 fine ounces earmarked for members and a former member.

Made with the proceeds of the sale of 22,856,900.312 fine ounces of gold. Upon termination of the investment, the same quantity of gold can be reacquired.

Redeemable in gold, or convertible currencies acceptable to the Fund, in installments not later than July 1, 1968 in respect of Cuba, and not later than August 17, 1970 in respect of Indonesia.

The assets and liabilities of the Staff Retirement Fund are not included in this Balance Sheet.

A stand-by charge has, under certain circumstances, to be credited against the service charge for a drawing under the stand-by arrangement; the maximum amount on April 30, 1966 is $928,845. A portion of the stand-by charge is refundable to a member if the arrangement is canceled; the maximum amount on April 30, 1966 is $634,458.

/s/ Oscar L. Altman/s/ P.-P. Schweitzer
TreasurerManaging Director

Exhibit B

Statement of Income and Expenditure for the year ended April 30, 1966

Income
Operational charges$15,564,009
Charges on balances in excess of quotas65,741,687
Other income10,904
Total Income (See Note 1)$81,316,600
Expenditure
Administrative expenditure
Board of Governors$ 473,432
Office of Executive Directors
Salaries$1,047,582
Other compensations and benefits231,314
Travel239,5701,518,466
Staff
Salaries$6,628,564
Other compensations and benefits2,203,858
Travel1,566,80810,399,230
Special services to member countries682,281
Other administrative expenses
Communications$376,910
Office occupancy expenses554,748
Books and printing (See Note 2)312,694
Supplies and equipment410,872
Miscellaneous (See Note 3)306,9541,962,178
Total administrative expenditure$15,035,587
Operational expenditure
Transfer charges on amounts borrowed under
General Arrangements to Borrow$ 2,625,000
Interest on indebtedness under General
Arrangements to Borrow13,446,875
Gold handling costs2,847
Exchange adjustments349 cr.
Total operational expenditure16,074,373
Fixed property expenditure5,661,158
Total Expenditure36,771,118
Net Income$44,545,482
(Transferred provisionally to General Reserve pending -
Board of Governors’ action) (Exhibit C)
Notes:

Excludes income from investments amounting to $33,907,383, transferred to Special Reserve (Exhibit C).

After deduction of $62,326 for sales of Fund’s publications.

After deduction of $135,545 for food service sales.

Notes:

Excludes income from investments amounting to $33,907,383, transferred to Special Reserve (Exhibit C).

After deduction of $62,326 for sales of Fund’s publications.

After deduction of $135,545 for food service sales.

Exhibit C

Statement of Reserves for the year ended 30, 1966

Special Reserve (See Note)
Balance, April 30, 1965$148,274,447
Add
Income from investments in U.S. Government
securities for year33,907,383
Balance, April 30, 1966$182,181,830
General Reserve
Balance, April 30, 1965$141,811,468
Add
Net income for year (Exhibit B), transferred
provisionally pending Board of Governors’ action44,545,482
Balance, April 30, 1966186,356,950
Total Reserves (per Balance Sheet)$368,538,780
Note:Represents income from investments in U.S. Government securities from November 1, 1957.
Note:Represents income from investments in U.S. Government securities from November 1, 1957.

Staff Retirement Fund

Memorandum by the Audit Committee

June 21, 1966

To the Managing Director and the Executive Directors

International Monetary Fund

The report of the Audit Committee, dated June 21, 1966, submitted through you to the Board of Governors, on the audit of the financial records and transactions of the International Monetary Fund for the fiscal year ended April 30, 1966, includes the following paragraphs relating to the scope of the audit conducted, the audit certificate given and the investments held with respect to the Staff Retirement Fund:

Scope of the Audit

The Audit Committee has examined the separate accounts and financial statements relating to the Staff Retirement Fund for the fiscal year ended April 30, 1966. In the course of the examination, the Committee referred to the Articles of the Staff Retirement Plan and to the decisions of the Pension, Administration and Investment Committees created under the Plan. The Audit Committee made what it considered an adequate test check of the various classes of transactions, taking into account the audit coverage made by the Internal Auditor, as reported by him to the Committee. The report of the Internal Auditor, among other audit activities conducted by his staff, showed that a detailed examination had been made of the Participants’ Accounts.

Audit Certificate

As the result of our examination, we report that in our opinion the accompanying Balance Sheet, Statement of Source and Application of Funds, and the related Schedules of Participants’ Account, Accumulation Account, Retirement Reserve Account, and Reserve Against Investments present fairly the financial position of the Staff Retirement Fund as at April 30, 1966 and the results of its operations for the fiscal year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of previous fiscal years.

Investments

The Pension Committee made no changes in the General Rules on Investment during the fiscal year 1966. The Audit Committee received confirmation directly from the depository of the investments that it held, as at April 30, 1966, as custodian for the Staff Retirement Fund of the International Monetary Fund. The Audit Committee also confirmed that the holdings of the various classes of investment were within the limiting percentages stated in original investment values prescribed by the Pension Committee, as follows:

PercentagePercentage
AuthorizedHeld
Bonds
U.S. GovernmentMinimum 3034.52
International Bank for Reconstruction and Development and
Inter-American Development BankMaximum 2014.40
Corporate (other than convertible)Maximum 2516.83
Corporate (convertible)Maximum 5
Total bonds65.75
Corporate stocksMaximum 4034.25
Total portfolio100.00

Audit Committee:

/s/ R. W. Tizard, Chairman (United Kingdom)

/s/ G. M. Okufi (Nigeria)

/s/ J. D. Mercado (Philippines)

Exhibit I

Staff Retirement Fund

Balance Sheet as at April 30, 1966
Assets
Cash at Banks$ 84,631
Investments
Bonds, at amortized value
United States Government (market value,
$5,301,000$5,710,321
International Bank for Reconstruction and
Development (market value, $2,262,880)2,397,072
Corporate (market value, $2,502,970)2,866,864$10,974,257
Corporate stocks (common), at cost (market
value, $9,873,582)6,977,67517,951,932
Accrued Interest on Bonds124,119
Accrued Contributions from Participants and Employer11,576
Total Assets$18,172,258
Liabilities and Reserves
Accounts Payable$ 4,673
Participants’ Account3,777,564
Accumulation Account11,164,815
Retirement Reserve Account2,465,408
Reserve Against Investments759,798
Total Liabilities and Reserves$18,172,258

/ s / Oscar L. Altman/s/ P.-P. Schweitzer
TreasurerManaging Director

/ s / Oscar L. Altman/s/ P.-P. Schweitzer
TreasurerManaging Director

    Other Resources Citing This Publication