Chapter

Other Administered Accounts

Author(s):
International Monetary Fund
Published Date:
September 2012
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Independent Auditors’ Report

Deloitte.

Deloitte & Touche LLP

Suite 500

555 12th Street N.W.

Washington, DC 20004-1207

USA

Tel: +1 202 879 5600

Fax: +1 202 879 5309

www.deloitte.com

To the Board of Governors of the

International Monetary Fund

Washington, DC

We have audited the accompanying statements of financial position as of April 30, 2012 and 2011, and the related statements of comprehensive income and changes in resources and of cash flows for the years then ended of the following Other Administered Accounts (the “Accounts”) of the International Monetary Fund:

  • Administered Account – Japan

  • Administered Account for Selected Fund Activities – Japan

  • Framework Administered Account for Technical Assistance Activities

  • Framework Administered Account for Selected Fund Activities

  • Administered Account for Interim Holdings of Voluntary Contributions for Fund Activities

  • Supplementary Financing Facility Subsidy Account

  • The Post-Conflict and Natural Disaster Emergency Assistance Subsidy Account

  • Administered Account – Indonesia

  • Post-SCA-2 Administered Account

  • Administered Account for Liberia

  • SCA-1/Deferred Charges Administered Account

These financial statements are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with International Standards on Auditing and auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Accounts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the financial position of the Accounts of the International Monetary Fund at April 30, 2012 and 2011, and the results of their operations and their cash flows for the years then ended in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed on page 76 are presented for the purpose of additional analysis and are not a required part of the basic financial statements. These schedules are the responsibility of the Account’s management. Such schedules have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

June 21, 2012

Member of

Deloitte Touche Tohmatsu

Statements of financial position at April 30, 2012, and 2011

Administered Account—JapanAdministered Account for Selected Fund Activities—JapanFramework Administered Account for Technical Assistance ActivitiesFramework Administered Account for Selected Fund ActivitiesAdministered Account for Interim Holdings of Voluntary Contributions for Fund Activities
2012201120122011201220112012201120122011
(In thousands of U.S. dollars)
Assets
Cash and cash equivalents131,114131,0302,5558,66915,14419,430244,962135,0842,03211,245
Investments (Note 5)
Interest/other receivables
Total assets131,114131,0302,5558,66915,14419,430244,962135,0842,03211,245
Liabilities
Deposits (Note 6)
Interest payable and other liabilities4320,31312,201
Total liabilities4320,31312,201
Resources131,114131,0302,5558,66915,14419,387224,649122,8832,03211,245
Total liabilities and resources131,114131,0302,5558,66915,14419,430244,962135,0842,03211,245
The accompanying notes are an integral part of these financial statements.These financial statements were approved by the Managing Director and the Director of Flnance on June 21, 2012.
The accompanying notes are an integral part of these financial statements.These financial statements were approved by the Managing Director and the Director of Flnance on June 21, 2012.
/s/ Andrew Tweedie/s/ Christine Lagarde
Director, Finance DepartmentManaging Director
Statements of financial position at April 30, 2012, and 2011
Supplementary Financing Facility Subsidy AccountThe Post-Conflict and Natural Disaster Emergency Assistance Subsidy AccountAdministered Account—IndonesiaPost-SCA-2 Administered AccountAdministered Account for Liberia1SCA-1/Deferred Charges Administered Account
201220112012201120122011201220112012201120122011
(In thousands of SDRs)
Assets
Cash and cash equivalents9028989,8865,01625,00025,00040,86047,10434,85174,699
Investments (Note 5)6,500
Interest/other receivables11415531383
Total assets9028999,88711,52025,00025,00040,87547,15734,86474,782
Liabilities
Deposits (Note 6)25,00025,000
Interest payable and other liabilities
Total liabilities25,00025,000
Resources9028999,88711,52040,87547,15734,86474,782
Total liabilities and resources9028999,88711,52025,00025,00040,87547,15734,86474,782
The accompanying notes are an integral part of these financial statements.

This account was closed during the financial year ended April 30, 2011 and residual balances have been transferred out.

The accompanying notes are an integral part of these financial statements.

This account was closed during the financial year ended April 30, 2011 and residual balances have been transferred out.

Statements of comprehensive income and changes in resources for the years ended April 30, 2012, and 2011

Administered Account—JapanAdministered Account for Selected Fund Activities—JapanFramework Administered Account for Technical Assistance ActivitiesFramework Administered Account for Selected Fund ActivitiesAdministered Account for Interim Holdings of Voluntary Contributions for Fund Activities
20122011201220112012201120122011201220111
(In thousands of U.S. dollars)
Resources, beginning of year131,030130,8188,66913,07419,38730,571122,88357,88611,245
Interest and investment income84212110326337222
Contributions received2,6745,900201,530116,7491,60111,243
Interest expense on deposits
Payments to and on behalf of beneficiaries(1,607)(4,415)(5,772)(17,110)(99,797)(51,824)
Operational income/(loss)84212(1,606)(4,405)(3,095)(11,184)101,76664,9971,60311,245
Transfers (Note 8)(4,508)(1,148)(10,816)
Other comprehensive income
Net comprehensive income (loss)/changes in resources84212(6,114)(4,405)(4,243)(11,184)101,76664,997(9,213)11,245
Resources, end of year131,114131,0302,5558,66915,14419,387224,649122,8832,03211,245
The accompanying notes are an integral part of these financial statements.

From inception to April 30, 2011.

The accompanying notes are an integral part of these financial statements.

From inception to April 30, 2011.

Statements of comprehensive income and changes in resources for the years ended April 30, 2012, and 2011
Supplementary Financing Facility Subsidy AccountThe Post-Conflict and Natural Disaster Emergency Assistance Subsidy AccountAdministered Account—IndonesiaPost-SCA-2 Administered AccountAdministered Account for LiberiaSCA-1/Deferred Charges Administered Account
201220112012201120122011201220112012201120122011
(In thousands of SDRs)
Resources, beginning of year8991,02311,52013,20347,15746,991419,09974,78279,504
Interest and investment income3329346766126166149122269
Contributions received836,405
Interest expense on deposits
Payments to and on behalf of beneficiaries(1,662)(1,800)(116,204)
Operational income/(loss)33(1,633)(1,683)6766126166(109,650)122269
Transfers (Note 8)(127)(67)(66)(6,408)(309,449)(40,040)(4,991)
Other comprehensive income
Net comprehensive (loss) income/changes in resources3(124)(1,633)(1,683)(6,282)166(419,099)(39,918)(4,722)
Resources, end of year9028999,88711,52040,87547,15734,86474,782
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Statements of cash flows for the years ended April 30, 2012, and 2011

Administered Account-JapanAdministered Account for Selected Fund Activities—JapanFramework Administered Account for Technical Assistance ActivitiesFramework Administered Account for Selected Fund ActivitiesAdministered Account for Interim Holdings of Voluntary Contributions for Fund Activities
20122011201220112012201120122011201220111
(In thousands of U.S. dollars)
Cash flows from operating activities
Net comprehensive income/(loss)84212(6,114)(4,405)(4,243)(11,184)101,76664,997(9,213)11,245
Adjustments to reconcile net comprehensive income/(loss) to cash generated by operations
Interest income(84)(212)(1)(10)(3)(26)(33)(72)(2)(2)
Interest expense
(6,115)(4,415)(4,246)(11,210)101,73364,925(9,215)11,243
Changes in other assets1,018
Changes in other liabilities(43)(16)8,1127,259
(6,115)(4,415)(4,289)(11,226)109,84573,202(9,215)11,243
Interest received84212110326337222
Interest paid
Net cash provided by/(used in) operating activities84212(6,114)(4,405)(4,286)(11,200)109,87873,274(9,213)11,245
Cash flows from investment activities
Acquisition of investments
Net cash used in investment activities
Cash flows from financing activities
Repayment of deposits
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents84212(6,114)(4,405)(4,286)(11,200)109,87873,274(9,213)11,245
Cash and cash equivalents, beginning of year131,030130,8188,66913,07419,43030,630135,08461,81011,245
Cash and cash equivalents, end of year131,114131,0302,5558,66915,14419,430244,962135,0842,03211,245
The accompanying notes are an integral part of these financial statements.

From inception to April 30, 2011.

The accompanying notes are an integral part of these financial statements.

From inception to April 30, 2011.

Statements of cash flows for the years ended April 30, 2012, and 2011
Supplementary Financing Facility Subsidy AccountThe Post-Conflict and Natural Disaster Emergency Assistance Subsidy AccountAdministered Account—IndonesiaPost-SCA-2 Administered AccountAdministered Account for LiberiaSCA-1/Deferred Charges Administered Account
201220112012201120122011201220112012201120122011
(In thousands of SDRs)
Cash flows from operating activities
Net comprehensive income/(loss)3(124)(1,633)(1,683)(6,282)166(419,099)(39,918)(4,722)
Adjustments to reconcile net comprehensive (loss)/income to cash generated by operations
Interest income(3)(3)(29)(34)(67)(66)(126)(166)(149)(122)(269)
Interest expense
(127)(1,662)(1,717)(67)(66)(6,408)(419,248)(40,040)(4,991)
Changes in other assets
Changes in other liabilities
(127)(1,662)(1,717)(67)(66)(6,408)(419,248)(40,040)(4,991)
Interest received4232326766164141320192234
Interest paid
Net cash provided by/(used in) operating activities4(125)(1,630)(1,685)(6,244)141(418,928)(39,848)(4,757)
Cash flows from investment activities
Net disposal/(acquisition)of investments6,500(6,500)
Net cash provided by/(used in) investment activities6,500(6,500)
Cash flows from financing activities
Repayment of deposits
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents4(125)4,870(8,185)(6,244)141(418,928)(39,848)(4,757)
Cash and cash equivalents, beginning of year8981,0235,01613,20125,00025,00047,10446,963418,92874,69979,456
Cash and cash equivalents, end of year9028989,8865,01625,00025,00040,86047,10434,85174,699
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the financial statements for the years ended April 30, 2012, and 2011

1. Nature of operations

At the request of members, the IMF has established special-purpose accounts (the Other Administered Accounts) to administer contributed resources provided to fund financial and technical services consistent with the purposes of the IMF. The assets of each account and each subaccount are separate from the assets of all other accounts of, or administered by, the IMF and are not to be used to discharge liabilities or to meet losses incurred in the administration of other accounts, unless the terms of an account would authorize transfers of assets to another account.

Administered Account—Japan

The account was established in March 1989, to administer resources made available by Japan—and, under a subsequent amendment, by other countries with Japan’s concurrence—that are to be used to assist certain members with overdue obligations to the IMF. The resources of the account are to be disbursed in amounts specified by Japan and to members designated by Japan. Effective March 5, 2008, the Instrument governing the account was amended to allow the provision of assistance to these members in the context of an internationally agreed comprehensive package that integrates arrears clearance and subsequent debt relief.

Administered Account for Selected Fund Activities—Japan

The account was established in March 1990, to administer resources contributed by Japan to finance technical assistance to member countries and to support the IMF’s Regional Office for Asia and the Pacific (OAP). The resources of the account designated for technical assistance activities are used with the approval of Japan and include the provision of scholarships. The resources designated for the OAP are used as agreed between Japan and the IMF for certain activities of the IMF with respect to Asia and the Pacific through the OAP. Disbursements can also be made from the account to the General Resources Account (GRA) to reimburse the IMF for qualifying technical assistance projects and OAP expenses. In April 2010, the IMF and Japan agreed to terminate the account when ongoing projects are completed, and any residual amounts will be deposited by the IMF into the Japan subaccount under the new Framework Administered Account for Selected Fund Activities.

Framework Administered Account for Technical Assistance Activities

The Framework Administered Account for Technical Assistance Activities (the Framework Account) was established by the IMF in April 1995, to receive and administer contributed resources that are to be used to finance technical assistance of the IMF to member countries and to international organizations. Technical assistance is provided on macroeconomic, fiscal, monetary, financial, and related statistical fields, including training programs and projects that strengthen the legal and administrative framework in these core areas. The financing of technical assistance activities is implemented through the establishment and operation of subaccounts within the Framework Account. Resources are to be used in accordance with the written understandings between the contributor and the IMF. Disbursements can also be made from the Framework Account to the GRA to reimburse the IMF for costs incurred on behalf of technical assistance activities financed by resources from the Framework Account. Since March 2009, upon approval of the Framework Administered Account for Selected Fund Activities, no new subaccounts have been established under this Framework Administered Account.

Framework Administered Account for Selected Fund Activities

The Framework Administered Account for Selected Fund Activities (the SFA Framework Account) was established in March 2009, to administer externally contributed resources that are to be used to finance selected IMF activities, including the full range of IMF technical assistance activities and activities in support of technical assistance provided directly to recipients.

The financing of selected Fund activities is implemented through the establishment and operation of subaccounts within the SFA Framework Account. There were four new subaccounts established this financial year bringing the total to 33 at April 30, 2012 (18 new subaccounts in the year ended April 30, 2011). Resources are to be used in accordance with terms and conditions established by the IMF, with the concurrence of contributors. Resources in SFA subaccounts may be transferred to other SFA subaccounts if the terms and conditions of the subaccounts so provide. Disbursements can also be made from the SFA Framework Account to the GRA to reimburse the IMF for the costs incurred in connection with activities financed by resources from the SFA Framework Account.

Administered Account for Interim Holdings of Voluntary Contributions for Fund Activities

The account was established in April 2010, to receive and hold externally contributed resources for an interim period until such time as they can be transferred to other Trusts or accounts administered by the Fund.

Supplementary Financing Facility Subsidy Account

The account was established in December 1980, to assist low-income member countries to meet the costs of using resources made available through the IMF’s Supplementary Financing Facility and under the policy on exceptional access. All repurchases due under these policies were scheduled for completion by January 31, 1991, and the final subsidy payments were approved in July 1991. However, one member (Sudan), overdue in the payment of charges at April 30, 2012, remains eligible to receive previously approved subsidy payments of SDR 0.9 million at April 30, 2012, and 2011 when its overdue charges are settled. Accordingly, the account remains in operation and has retained amounts for payment to Sudan after the overdue charges are paid.

The Post-Conflict and Natural Disaster Emergency Assistance Subsidy Account

The account was established in May 2001, to administer resources contributed by members for the purpose of providing assistance to Poverty Reduction and Growth Trust (PRGT) eligible members in support of the subsidization of emergency assistance for post-conflict and, since January 2005, natural disasters. Earmarked funds contributed for either or both types of emergency assistance are administered through three subaccounts; a subaccount for post-conflict assistance, a subaccount for natural disaster assistance, and a third subaccount for either type of assistance. As part of the IMF’s response to the global economic crisis, the Executive Board reformed the concessional financing framework for low-income member countries and made changes to the account. Effective January 7, 2010, the account only subsidizes purchases by eligible members made before January 7, 2010. Through January 31, 2013, the subsidy to each eligible member effectively reduces the interest rate on IMF financial support to zero percent. Thereafter, the account will finance the subsidy for each eligible member to an interest rate of ¼ of 1 percent but the subsidy will be prorated if resources are insufficient to reduce the interest rate to such an extent.

Administered Account—Indonesia

The account was established on June 30, 1994, for the administration of resources deposited by Bank Indonesia for the benefit of the PRG-HIPC Trust.

Post-SCA-2 Administered Account

The account was established in December 1999, for the temporary administration of resources transferred by members following the termination of the second Special Contingent Account (SCA-2) in the General Department of the IMF, pending the final disposition of those resources in accordance with members’ instructions.

Administered Account for Liberia

The account was established in March 2008, to facilitate fund-raising for, and delivery of, debt relief to Liberia in respect of obligations owed to the IMF. As Liberia reached completion point under the enhanced HIPC Initiative in June 2010, this account was closed during the financial year ended April 30, 2011 following the transfer of its resources for the intended purpose.

SCA-1/Deferred Charges Administered Account

The account was established in March 2008, as an interim vehicle to hold and administer members’ refunds resulting from the distribution of certain SCA-1 balances and from the payment of deferred charges adjustments that had been made in respect of overdue charges attributed to Liberia. Following Liberia’s arrears clearance, members were given the option to temporarily deposit their refunds into this account pending their decisions as to the final disposition of those resources.

2. Basis of preparation and measurement

The financial statements of the Other Administered Accounts are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The financial statements have been prepared under the historical cost convention. Specific accounting principles and disclosure practices, as set out below, are in accordance with and comply with IFRS and have been applied consistently for all periods presented.

New and Revised International Financial Reporting Standards and Interpretations

The following new standards and amendments to existing standards have been issued by the IASB but are not yet effective and have not yet been implemented by the Other Administered Accounts.

IFRS 9, “Financial Instruments” was issued in November 2009 as the first step in replacing IAS 39, “Financial Instruments: Recognition and Measurement.” Under IFRS 9, financial assets currently within the scope of IAS 39 will be divided into two categories: those measured at amortized cost and those measured at fair value. The effective date for adoption of IFRS 9 is for annual periods beginning on or after January 1, 2015, but early adoption is permitted. As the Other Administered Accounts already measures financial assets at amortized cost, the implementation of IFRS 9 is not expected to have an impact on the accounts’ financial position or results of operations.

IFRS 13, “Fair Value Measurement” was issued in May 2011 and defines fair value, sets out a framework for measuring fair value, and requires extensive disclosures about fair value. The effective date is for annual periods beginning on or after January 1, 2013. The implementation of IFRS 13 is not expected to have a significant impact on the disclosures, recognition, or measurement of assets and liabilities.

The amendments to IAS 1, “Presentation of Items of Other Comprehensive Income” (effective for annual periods beginning on or after July 1, 2012) are not expected to have significant impact on the Other Administered Accounts financial statements.

Unit of account

Administered Account—Japan, Administered Account for Selected Fund Activities—Japan, Framework Administered Account for Technical Assistance Activities, Framework Administered Account for Selected Fund Activities, and Administered Account for Interim Holdings of Voluntary Contributions for Fund Activities

The functional and presentation currency of these accounts is the U.S. dollar. All transactions and operations of these accounts, including the transfers to and from these accounts, are denominated in U.S. dollars. Contributions denominated in other currencies are converted into U.S. dollars upon receipt of the funds.

Supplementary Financing Facility Subsidy Account, The Post-Conflict and Natural Disaster Emergency Assistance Subsidy Account, Administered Account—Indonesia, Post-SCA-2 Administered Account, Administered Account for Liberia, and SCA-1/Deferred Charges Administered Account

The financial statements for the above accounts are presented in Special Drawing Rights (SDRs), which is the IMF’s functional unit of account. The U.S. dollar equivalent of the SDR is determined daily by the IMF by summing specific amounts of the four basket currencies (see below) in U.S. dollar equivalents on the basis of market exchange rates. The IMF reviews the SDR valuation basket at five-year intervals. The last review was completed in November 2010. No changes were made to the basket currencies, but the weights of the four currencies in the basket were changed and became effective on January 1, 2011.

The currencies in the basket at April 30, 2012, and 2011, and their specific amounts, relative to one SDR, were as follows:

CurrencyAmount
Euro0.423
Japanese yen12.1
Pound sterling0.111
U.S. dollar0.660

At April 30, 2012, one SDR was equal to US$1.55055 (US$1.62096 at April 30, 2011).

Transactions and operations of the above accounts are denominated in SDRs. Contributions denominated in other currencies are converted into the component currencies in the SDR basket upon receipt of the funds.

Use of estimates and judgment

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The determination of estimates requires the exercise of judgment based on various assumptions and other factors, such as historical experience and current and expected economic conditions. Actual results could differ from those estimates.

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Information about significant areas of estimation, uncertainty, and critical judgments in applying accounting policies that have the most significant effect on the amount recognized in the financial statements are described in Note 3.

3. Summary of significant accounting and related policies

The accounting policies set out below comply with IFRS and have been applied consistently for all periods presented.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, and other highly liquid short-term investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Investments

A three-level fair value hierarchy under which financial instruments are categorized based on the priority of the inputs to the valuation technique is used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1), the next highest priority to observable market-based inputs or inputs that are corroborated by market data (Level 2), and the lowest priority to unobservable inputs that are not corroborated by market data (Level 3). When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement of the instrument in its entirety. Thus, a Level 3 fair value measurement may include inputs that are both observable and unobservable.

Recognition

Investments are recognized on the trade date at which the Other Administered Accounts become a party to the contractual provisions of the instrument.

Derecognition

Investments are derecognized when the contractual rights to the cash flows from the asset expire, or in transactions where substantially all the risks and rewards of ownership of the investment are transferred.

Contributions

Bilateral contributions are reflected as increases in resources after the achievement of specified conditions and are subject to bilateral agreements stipulating how the resources are to be used.

Payments to and on behalf of beneficiaries

Payments to and on behalf of beneficiaries are recognized when the specified conditions in the respective agreements are achieved.

Foreign currency translation

Transactions in currencies other than the reporting currency are recorded at the rate of exchange on the date of the transaction. Exchange differences arising from the settlement of transactions at rates different from those on the date of the transactions are included in the determination of net comprehensive income.

Administrative expenses

The expenses of conducting the activities of the Other Administered Accounts are paid by the IMF from the GRA and partial reimbursements were made by several accounts. For the Administered Account for Selected Fund Activities—Japan, the reimbursements were US$0.2 million and US$0.5 million for the financial years ended April 30, 2012, and 2011, respectively; for the Framework Administered Account for Technical Assistance Activities, the reimbursements were US$0.7 million and US$2.0 million for the financial years ended April 30, 2012, and 2011, respectively; and for the Framework Administered Account for Selected Fund Activities, the reimbursements were US$6.5 million and US$3.4 million for the financial years ended April 30, 2012, and 2011, respectively. These reimbursements are included in payments to and on behalf of beneficiaries in the statements of comprehensive income and changes in resources.

4. Risk management

In administering contributed resources and funding financial and technical services, the Other Administered Accounts have minimal exposure to credit, liquidity, and market risks. The assets and liabilities of each account are held separately, and operations primarily comprise receipt of cash contributions and payment of these resources for the designated purposes of each account.

This note provides further information on the above risks.

Credit risk

Credit risk is the risk that a counterparty to a financial instrument will cause a financial loss to an entity by failing to discharge obligations when due. Credit risk is minimized by holding resources at the Bank for International Settlements, an international financial organization that provides financial services to central banks and international organizations.

Liquidity risk

Liquidity risk is the risk of nonavailability of resources to meet financing needs and obligations. Liquidity risk is limited by maintaining sufficient resources to meet anticipated liquidity needs. The accounts’ resources comprise cash and short-term fixed deposits.

Market risk

Interest rate risk

Interest rate risk is the risk that future cash flows will fluctuate because of changes in market interest rates. Interest rate risk is managed by limiting the investments to short-term fixed deposits and investing resources with the objective of earning sufficient interest income to cover interest expense and to meet disbursement obligations.

Exchange rate risk

Exchange rate risk is the exposure to the effects of fluctuations in prevailing foreign currency exchange rates on an entity’s financial position and cash flows. Exchange rate risk is managed, to the extent possible, by holding all financial assets and liabilities in the reporting currency designated for each of the accounts.

5. Investments

The investments in the Post-Conflict and Natural Disaster Emergency Assistance Subsidy Account at April 30, 2011 (none at April 30, 2012) consisted of fixed-term deposits with maturities of less than one year, and their carrying amount approximates the fair value. Under IFRS 7 these financial assets are in the Level 2 category.

6. Deposits

Administered Account—Indonesia

The deposit of SDR 25 million, made by Bank Indonesia on June 30, 1994, was to be repaid in one installment 10 years after the date the deposit was made. The interest payable on the deposit is equivalent to that obtained from the investment of the deposit less 2 percent a year. Upon maturity in June 2004, the deposit was reinvested for another 10 years and investment income of 2 percent per annum (or any lesser amount if investment returns are below 2 percent) is transferred to the PRG-HIPC Trust.

7. Cumulative contributions and disbursements

The cumulative contributions to and disbursements from the Other Administered Accounts are as follows:

April 30, 20121April 30, 20111
AccountCumulative contributions2Cumulative disbursements3Cumulative contributions2Cumulative disbursements3
(In millions of U.S. dollars)
Administered Account—Japan135.282.4135.282.4
Administered Account for Selected Fund Activities—Japan329.2337.9333.7336.3
Technical assistance284.4292.0288.9290.4
Scholarships28.929.628.929.6
Office of Asia and the Pacific15.916.315.916.3
Framework Administered Account for Technical Assistance Activities212.1202.9210.6197.2
Japan Advanced Scholarship Program Subaccount19.320.019.320.0
Rwanda—Macroeconomic Management Capacity Subaccount1.51.61.51.6
Australia—IMF Scholarship Program for Asia Subaccount5.85.65.85.6
Switzerland Technical Assistance Subaccount18.618.818.618.6
French Technical Assistance Subaccount1.20.71.20.7
Denmark Technical Assistance Subaccount6.46.76.46.6
Australia Technical Assistance Subaccount5.94.43.83.5
The Netherlands Technical Assistance Subaccount14.915.015.015.0
The United Kingdom DFID Technical Assistance Subaccount15.916.017.216.0
Italy Technical Assistance Subaccount3.73.83.73.7
Pacific Financial Technical Assistance Centre Subaccount13.513.213.512.5
Africa Regional Technical Assistance Centers Subaccount37.438.237.738.2
Sweden Technical Assistance Subaccount1.71.61.71.6
China Technical Assistance Subaccount0.40.40.40.4
Technical Assistance Subaccount for Iraq6.06.26.06.2
Canadian Technical Assistance Subaccount8.76.88.26.0
Middle East Regional Technical Assistance Center Subaccount11.311.111.311.1
Technical Assistance Subaccount to Support Macroeconomic and Financial Policy Formulation and Management4.13.64.63.6
Spain Technical Assistance Subaccount0.81.01.21.0
European Commission Technical Assistance Subaccount for METAC1.11.21.11.2
European Investment Bank Technical Assistance Subaccount1.40.91.40.9
Central Africa Regional Technical Assistance Center Subaccount15.515.515.315.4
Islamic Development Bank Technical Assistance Subaccount0.60.30.60.3
FIRST Technical Assistance Subaccount11.85.810.43.7
Belgium Technical Assistance Subaccount4.54.24.53.8
Framework Administered Account for Selected Fund Activities5387.4162.8185.863.0
Subaccount for the Administration of Selected Smaller-Scale Capacity Building Activities2.82.02.40.5
African Development Bank (AfDB) Subaccount for Selected Fund Activities6
Africa Regional Technical Assistance Center South (AFRITAC South) Subaccount28.13.47.3
Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Subaccount20.817.516.710.7
Belgium Subaccount for Selected Fund Activities4.40.81.34
Caribbean Regional Technical Assistance Center (CARTAC) Subaccount29.97.513.41.1
Central African Regional Technical Assistance Center (AFRITAC Central) Subaccount12.74.02.4
Central America, Panama, and the Dominican Republic Technical Assistance Center (CAPTAC-DR) Subaccount24.414.420.16.9
Denmark Subaccount for Selected Fund Activities0.50.3
East Africa Regional Technical Assistance Center (AFRITAC East) Subaccount27.513.611.77.0
European Commission Subaccount for Selected Fund Activities13.63.93.90.5
European Investment Bank Subaccount for Selected Fund Activities0.3
Germany Subaccount for Selected Fund Activities4.1
Government of Canada Subaccount621.2
IMF-Middle East Center for Economics and Finance Subaccount for Selected Fund Activities13.38.17.50.7
International Forum Sovereign Wealth Funds Subaccount60.3
Japan Subaccount for Selected Fund Activities83.741.948.718.3
Kingdom of the Netherlands – Netherlands Subaccount for Selected Fund Activities2.70.92.50.6
Kuwait Subaccount for Selected Fund Activities1.70.41.10.1
Liberia Macro-Fiscal Subaccount3.20.73.00.1
Managing Natural Resource Wealth Topical Trust Fund Subaccount14.42.11.6
Middle East Regional Technical Assistance Center (METAC) Subaccount7.25.23.72.8
Norway Subaccount for Selected Fund Activities3.61.91.30.7
Pacific Financial Technical Assistance Center (PFTAC) Subaccount7.02.6
The Socialist People’s Libyan Arab Jamahiriya Subaccount for Selected Fund Activities2.51.22.50.9
Switzerland Subaccount for Selected Fund Activities13.46.98.42.3
(In millions of U.S. dollars)
Tax Policy and Administration Topical Trust Fund Subaccount12.12.31.8
United Kingdom Department for International Development Subaccount for Selected Fund Activities13.67.87.73.1
United States Subaccount for Selected Fund Activities3.81.22.40.3
West Africa Regional Technical Assistance Center (AFRITAC West) Subaccount16.810.810.26.2
World Bank Subaccount for Selected Fund Activities2.01.2
(In millions of SDRs)
The Post-Conflict and Natural Disaster Emergency Assistance Subsidy Account39.532.639.530.9

The ending balances include rounding differences.

Net of refunds of contributions to donors owing to termination of projects financed by resources in the Administered Account and transfers between subaccounts within the Framework Administered Account for Selected Fund Activities.

Disbursements had been made from contributed resources as well as from interest earned on these resources, and include reimbursements in some cases, for payments made previously.

Less than US$50,000.

The following subaccounts were yet to receive any funds as of April 30, 2012: Republic of South Sudan Macroeconomic Capacity Building Subaccount and the Sweden Subaccount for Selected Fund Activities.

New subaccounts established during the financial year ended April 30, 2012, in addition to the Republic of South Sudan Macroeconomic Capacity Building Subaccount.

The ending balances include rounding differences.

Net of refunds of contributions to donors owing to termination of projects financed by resources in the Administered Account and transfers between subaccounts within the Framework Administered Account for Selected Fund Activities.

Disbursements had been made from contributed resources as well as from interest earned on these resources, and include reimbursements in some cases, for payments made previously.

Less than US$50,000.

The following subaccounts were yet to receive any funds as of April 30, 2012: Republic of South Sudan Macroeconomic Capacity Building Subaccount and the Sweden Subaccount for Selected Fund Activities.

New subaccounts established during the financial year ended April 30, 2012, in addition to the Republic of South Sudan Macroeconomic Capacity Building Subaccount.

8. Transfer of resources

Administered Account for Selected Fund Activities—Japan (AAJ), Framework Administered Account for Technical Assistance Activities (FAA), and Administered Account for Interim Holdings of Voluntary Contributions for Fund Activities (AIH)

For the financial year ended April 30, 2012, transfers to the Framework Administered Account for Selected Fund Activities from the AAJ, FAA, and AIH amounted to US$4.5 million, US$1.1 million, and US$10.8 million, respectively (none during the financial year ended April 30, 2011).

Supplementary Financing Facility Subsidy Account

Resources of the Supplementary Financing Facility Subsidy Account in excess of the remaining subsidy payments are to be transferred to the Special Disbursement Account. During the financial year ended April 30, 2012, no transfers were made to the Special Disbursement Account (SDR 0.13 million during the financial year ended April 30, 2011).

Administered Account—Indonesia

For each of the financial years ended April 30, 2012, and 2011, net investment income transferred from the Administered Account—Indonesia to the PRG-HIPC Trust amounted to SDR 0.07 million.

Post-SCA-2 Administered Account

For the financial year ended April 30, 2012, transfers to the PRG-HIPC Trust amounted to SDR 6.4 million (none during the financial year ended April 30, 2011).

Administered Account for Liberia

For the financial year ended April 30, 2012, no transfers were made to the PRG-HIPC Trust (SDR 309.4 million during the financial year ended April 30, 2011).

SCA-1/Deferred Charges Administered Account

For the financial year ended April 30, 2012, transfers to the PRG-HIPC Trust and the Poverty Reduction and Growth (PRG) Trust amounted to SDR 5.3 million and SDR 3.9 million, respectively (SDR 5.0 million to the PRG-HIPC Trust and no transfers to the PRG Trust for the financial year ended April 30, 2011).

9. Accounts termination

No accounts were closed during the financial year ended April 30, 2012. During the financial year ended April 30, 2011, the Administered Account Austria-II, the Japan Administered Account for Liberia, and the Administered Account for Liberia were closed.

Administered Account—Japan

The account can be terminated by the IMF or by Japan at any time. Any remaining resources in the account at termination are to be returned to Japan.

Administered Account for Selected Fund Activities—Japan

The account can be terminated by the IMF or by Japan at any time. In April 2010, Japan informed the IMF of its intent to terminate the account upon completion of on-going projects and to transfer remaining residual amounts to the Japan subaccount under the new Framework Administered Account for Selected Fund Activities.

Framework Administered Account for Technical Assistance Activities and Framework Administered Account for Selected Fund Activities

The Framework Accounts or any subaccount thereof may be terminated by the IMF at any time. The termination of a Framework Account shall terminate each subaccount thereof. A subaccount may also be terminated by the contributor of the resources to the subaccount or, in the case of a subaccount comprising resources from more than one contributor, by all the contributors participating in the subaccount at the time of termination, provided that a contributor to such a subaccount may cease its own participation in the subaccount at any time without termination of the subaccount. Termination shall be effective on the date that the IMF or the contributor, as the case may be, receives notice of termination. The disposition of any balances, net of continuing liabilities and commitments under the activities financed, is governed by the conditions agreed between the IMF and the contributor, or contributors in the case of a subaccount with more than one contributor. Absent such agreement, the balances are returned to the contributor(s).

Administered Account for Interim Holdings of Voluntary Contributions for Fund Activities

The account may be terminated by the IMF at any time. Any uncommitted resources in the account at the time of termination shall be returned to the contributors.

The Post-Conflict and Natural Disaster Emergency Assistance Subsidy Account

The account can be terminated by the IMF at any time, or shall be terminated when the Fund no longer holds any member’s currency as a result of emergency assistance purchases made by eligible recipients. Any balances remaining in the account after discharge of all obligations of the account upon its termination are to be transferred to each contributor in the proportion its respective contribution bears to the total contributions. In the case of earmarked contributions that have been fully used, no such transfer shall be made. A contributor may also designate its share or a specified portion for such other purposes as may be mutually agreed between the contributor and the IMF.

Administered Account—Indonesia

The account shall be terminated upon completion of its operation. Once the obligation to repay all deposits has been discharged and the final payment of interest has been made, any surplus remaining shall be transferred to the PRG-HIPC Trust.

Post-SCA-2 Administered Account

Upon termination of the account, resources received from a member’s cumulative SCA-2 contributions, together with the member’s pro rata share of investment returns, shall be transferred to the PRG-HIPC Trust or to the member, in accordance with the member’s instructions.

SCA-1/Deferred Charges Administered Account

The account was to be terminated on March 13, 2011, three years from the effective date of the decision establishing the account, and each member with resources remaining in the account was to be paid its respective balance in full. In March 2011, and subsequently in March 2012, the termination date was extended by the IMF Executive Board at the request of the remaining bilateral contributors. The current termination date is now March 13, 2014. The account may also be terminated as promptly as practicable following the receipt of instructions from every member regarding the distribution of its resources in the account.

Schedule 1: Post-SCA-2 Administered Account Holdings, interest, and transfers for the year ended April 30, 2012

(In thousands of SDRs)

MemberBeginning balanceInterest earnedTransfers to PRG-HIPC TrustEnding balance
Argentina6,40626,408
Dominican Republic1,18641,190
Jordan1,34641,350
Trinidad and Tobago2,89292,901
Vanuatu57157
Venezuela, República Bolivariana de35,27010735,377
47,1571266,40840,875

Less than SDR 500.

Less than SDR 500.

Schedule 2 SCA-1/Deferred Charges Administered Account Holdings, interest, and transfers for the year ended April 30, 2012

(In thousands of SDRs)

MemberBeginning balanceInterest earnedTransfersEnding balance
Argentina40,0231740,040
Brazil34,75910534,864
74,78212240,04034,864

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