26. As concerns the combined cash position, it is now projected that the end of 1998 will see a further increase in the percentage of peacekeeping cash that must be cross borrowed by the regular budget to offset the cash deficit in that account.

10. On the subject of the combined cash forecast for 1997 and the extent of the cross borrowing between the regular budget and the peacekeeping cash funds, the amount of combined cash in each of the most recent years had been less than that in the preceding year.

Twenty five per cent of peacekeeping cash will need to be cross borrowed to cover the deficit in regular budget cash, the largest percentage in four years.

A significant portion of peacekeeping cash may need to be used, or cross borrowed, by year end to offset the regular budget cash deficit.

It has become increasingly necessary for the regular budget to borrow substantial amounts from peacekeeping missions with available cash.

22. On this basis, by the end of December, it would be necessary to cross borrow approximately 32 per cent of peacekeeping cash to cover the deficit in cash available for the regular budget.

3. Combined cash and cross borrowing

Regular budget cash flow projection

Cash Flow Status

7 day Cash Flow Forecast

Cash inflows from timely payments of 1998 assessments permitted the repayment of amounts borrowed from peacekeeping funds and eliminated the regular budget cash deficit by the end of January 1998.

This projection reflects a projected negative cash position of 247 million for the regular budget and positive balances of 775 million for peacekeeping.

As a result, he predicted a cash deficit of approximately 30 million, which could be made up only by drawing on the balances in the accounts of closed missions.

While the level of cash available for regular budget activities at the end of 2004 was higher than that projected in October, the United Nations was forced to cross borrow from other accounts in November and was still using reserves at the end of the year.

It is further divided into cash and in kind portions. The cash budget is funded through cash contributions recorded as income to the General Fund (GF).

20. Since cross borrowing has been used extensively in recent years to compensate for the chronic deficit in regular budget cash, the continuing decrease in peacekeeping cash will have a profound effect on the Organization s financial stability.

A continuing stream of regular budget receipts enabled the Organization to stay in a positive cash position until August, when it became necessary once again to borrow from peacekeeping funds.

The payment in September by Japan of the balance of its regular budget contribution, however, permitted the repayment of borrowed peacekeeping funds and September ended with a slightly positive cash position.

11. In short, the financial situation of the Organization was characterized by continuing arrears in assessment collections, continuing deficits in regular budget cash, extensive cross borrowing of peacekeeping cash, and levels of debt to Member States that could not be liquidated.

Based on current trends, a positive cash flow position is anticipated until the final quarter, with borrowing expected for the International Criminal Tribunal for Rwanda from October and for the International Criminal Tribunal for the Former Yugoslavia from November.

1. Regular budget cash

Yesterday, the amended norms of cash loans were released, with prominent issues from cash loan such as over loans, repeated credit, improper collection,

Do you borrow or lend money?

While a healthier cash flow during most 2005 is expected, a negative cash position is anticipated for the regular budget and the tribunals during the final quarter, as is the need for borrowing from the Working Capital Fund, the United Nations Special Account and closed peacekeeping missions for the regular budget, the tribunals and some active missions during the year.

Amount borrowed

Amount lent

These reports should take into consideration cash contributions, as well as in kind contributions and secondment of personnel.

The Section is also responsible for the production of daily cash projections to aid the investment officers in the proper management of cash.

(b) Adjustments that arise subsequent to the closing of an extra budgetary account (i.e., a trust fund, special account, project, etc.) shall be debited or credited against miscellaneous income in the same account.

5. As a result of this payment, the need to cross borrow from peacekeeping cash to fund regular budget needs during the last quarter of 1998 will be reduced.

The deficit in regular budget cash had multiplied tenfold.

I am lending money

UNHCR, through a fully fledged treasury information systems to be developed during the course of 2006 2007, will be able to automate the main treasury cash management functions and to integrate global cash inflows and outflows, treasury risk management, investments and foreign exchange applications.

Where there is a very small gap between the predicted future cash flow of a short term account receivable item and the current value thereof, the predicted future cash flow is not required to be capitalized when determining the relevant impairment related losses.

The scope for cross borrowing is limited, as reserves are often depleted and cross borrowing is restricted to the unobligated cash available in the accounts of closed peacekeeping missions.

As at the end of June 1998, cash expenditure in the regular programme in 1998 was expected to be 253 million, compared with expected cash income in 1998 of some 252 million.

The projected budgets for 2005 2009 showed that more funding was sorely needed to meet the objectives.

Status of the general trust fund for the operational budget (RO)

The process of projecting is much more volatile than is the case with regular budget cash.

(d) The level of regular budget cash resources (including the Working Capital Fund) was 50.6 million.

39. The Director noted that the increase from initial approved budget to the current revised budget was due to the borrowing at the beginning of the year of 3 million for Angola from the Voluntary Repatriation Fund which is reflected in 1998 revised budget but not in the initially approved budget.

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Planned cash expenditure for 2005 in the regular programme was 386 million, against an expected cash income of 359 million.

c Includes voluntary contributions in cash of 327,600 from Switzerland for which no budgetary provision was made.

At 30 June 1998, expected 1998 cash expenditure in the regular programme was 253 million, as compared to expected 1998 cash income of 252 million.