Report of the Audit & Control Committee

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    This document has been made available in electronic format
         by the International Co-operative Alliance ICA 
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                         February 1996

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            Report of the Audit & Control Committee 
                    to the General Assembly
                       for the year 1994
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1.   Members of the Committee

Dr M. Schelker (Chairman)
Dr P. Bartus
Mr W Kaltenborn (substitute for Mr F. Dahrendorf)
Mr I. Hansen
Mr J. Moreau

2.   Meetings

Two meetings have been held:
- 28 October 1994 in Prague
- 15 May 1995 in Geneva.

3.   Organisation
The Organisation Chart for the Secretariat in Geneva for the year
1994 remained the same as for the year 1993. It describes
properly the division of functions and is one of the effective
and necessary management tools.

The staff changes during 1994 were the following: The
Receptionist/Administrative Assistant and the part-time Assistant
to the Communications Department left ICA in the middle of the
year. These were replaced by an Administrative Assistant, shared
between the European Programme and the Communications Department,
and a part-time Administrative Assistant to the Development
Programme. This meant that the position of Receptionist was not
replaced and this task was shared between other staff members.

The current organisation has been both proper and functional.
Given the current amount of tasks, the Secretariat staff cannot
be smaller than it is now.

In keeping with the practice over the last four years, each
individual Section is producing detailed annual Workplans, which
are directly linked to and reconciled with the Budget for the
year. Reports on progress in relation to the Workplans are
produced by each member of staff on a quarterly basis. These
reports are reviewed together with corresponding budget reports
in joint staff meetings.

4.   Financial Situation
4.1  Routine Control
A financial report for the head office is compiled monthly,
giving information on revenue and expenses compared to the Budget
for the current month. The accumulation from the start of the
year is compared to both the accumulated Budget and the
corresponding period in the previous year. The report also
includes a regularly updated projection for the full year.

As is the current practice, there have been several meetings and
discussions between the Secretariat, the auditors and the
Chairman of the Committee during the year. On these occasions
organisational and control issues have been dealt with.

4.2   Membership Subscriptions
In accordance with the scale for gradual increase of the minimum
subscription, the 1994 minimum amount was CHF 3,000. For 1995
this minimum is CHF 3,500.

For the year 1994 the total membership subscription reached CHF
2,002,916, which was an increase compared to 1993 by CHF 35,601
while remaining CHF 47,084 below the budget for 1994.

The major variances were:

-    Increases from new members (KFCCC of Korea and UCS of
Tatarstan).

-    Increases from existing members - CCU of Bulgaria, ACFSMC of
China, CNCM of France, NACF of Korea, Centrosoyus of Russia, SNCF
of Singapore and NCBA of USA.

-    Decreases from Konsumverband of Austria, UCS of Belarus,
BVK/VDK of Germany, all Norwegian members, Koopvneshtorg of
Russia, Folksam/KF/Riksbyggen of Sweden and UCS of Uzbekistan.
Decreases from Norway and Sweden were due to devaluations of the
respective currencies. Austrian and German decreases were the
result of reduced business. The reductions from Belarus, Russia
and Uzbekistan were decided upon by the respective organisations
and not directly related to the subscription formula.

A total of twelve organisations were admitted as new members and
twenty-one were deleted for non-payment of subscriptions or due
to voluntary departure in 1994.

The receipt of subscription had been unusually slow during the
beginning of 1994. Through the combined efforts of the Board,
Secretariat, Regional Offices and this Committee, payment
discipline was reinforced leading to the total subscription
higher than in prior years and relatively close to the budget.
There is however still need for improvements with regard to the
submission of proper subscription documentation from many member
organisations.