ADMINISTRATIVE MEMORANDUM NO. 40
SUBJECT: Subsistence Payments to OAS Fellows

February 20, 1974

 At its meeting of September 13, 1973, the Secretary General's Advisory Board examined various matters relating to subsistence payments to OAS fellows, with special regard to the use of local currencies in the countries of study. The Board adopted the following decision:

 "3.          An attempt shall be made to establish a procedure for payments to fellows which would permit them to obtain the required funds without any infractions of exchange regulations.  In this connection, United Nations practices and the policy established for paying local employees of the Offices of the General Secretariat in the Member States shall be taken into account."

 Consequently, the following measures are hereby adopted:

 1.          Payment of subsistence allowances to fellows shall be made in the local currency of every country in which experience indicates that there are or might in the future be variations in exchange rates, and of every other country in which the Organization holds substantial amounts of the local currency.

 2.          The Department of Program-Budget and Financial Services, the Office of Coordination of Activities in Member States, and the Office of Fellowships and Training shall jointly determine those countries in which the payment of subsistence should be made in local currency. Such determination shall be submitted to the Secretary General for approval.[1]

 3.          Payments shall be made by the Offices of the General Secretariat in Member States by check in local currency, in accordance with the procedure established in Financial and Accounting Field Procedure No. 11.  When issuing drafts to transfer funds to a local bank, the name of the bank to which funds are being transferred shall be placed in the section of the form corresponding to the beneficiary, and the pink copy of the draft shall have as attachments the deposit voucher and the liquidation of funds.

 The account number will not be changed; 01-71-91 shall he utilized.

 If the government's contributions are paid in local currency, the Office shall deposit the funds in the local bank and immediately notify the Cashier Unit at headquarters.  These deposits shall he shown on Form 313, Annex No. 1 "Estado de Fondos Disponibles y Conciliaci�n Bancaria," indicating the origin and the purpose of the deposit. Insofar as possible, these funds shall be used to meet expenses in local currency.

 4.          So that the fellowship holder may have the means to return to his country of origin, it shall be the general policy to make the last monthly subsistence payment in United States dollars.

 5.          Payment of subsistence in local currencies shall be periodically reviewed by the Department of Program‑Budget and Financial Services, in coordination with the Office of Fellowships and Training and the Office of Coordination of Activities in Member States; any change adopted shall be submitted to the Secretary General for approval.

 6.          Fellowship announcements and the financial requirements form (OAS Form 111) shall clearly indicate in all instances that the Organization reserves the right to make disbursements in local currency at the exchange rate effective on the date of payment.