CONSIDERING,

   That Article 75 of the General Standards provides that the fifteen percent fee for technical supervision and administrative support paid by The Multilateral Fund for Integral Development ("FEMCIDI") to the Regular Fund is based on the net amount of programs financed in the budget cycle.

   That because the Inter-American Agency for Cooperation and Development ("IACD") programs the full amount of the contributions received for each budget cycle, the net amount of programs financed for each budget cycle equals the entire amount contributed for that budget cycle; additional programs funded by FEMCIDI for that budget cycle that are funded by funds deobligated from prior programming cycles are not included in the net amount of programs for computation of the fifteen percent fee.

   That on November 23 1998, the Assistant Secretary for Management issued Administrative Memorandum No. 89 to establish procedures for payment of the fifteen percent fee for technical supervision and administrative support from FEMCIDI to the Regular Fund under Article 75 of the General Standards (then Article 74).

   That believing that technical amendments to Article 75 adopted in November 1999 no longer made those procedures necessary, the Assistant Secretary for Management issued Administrative Memorandum No. 94 revoking Administrative Memorandum No. 89 on October 23, 2000.

   That the External Auditors have recommended the rescission of Administrative Memorandum No. 94 and the restoration of Administrative Memorandum No. 89 so as to provide necessary clarity to the process of computing the fifteen percent fee.

THE DECISION:

   Administrative Memorandum No. 94 is hereby revoked and rescinded nunc pro tunc to October 23, 2000, and Administrative Memorandum No. 89 is hereby restored, nunc pro tunc, to that same date.

James R. Harding

Assistant Secretary for Management

March 12, 2001