THE CONFERENCE
Recalling the desire of the Ad Hoc Committee of Experts established to examine the finances of the UN and the Specialized Agencies to standardize the financial regulations of the organizations,
Noting the report of the Sixty-First Council Session,
Noting that the introduction of programme budgeting in the Organization had necessitated amendments to the financial regulations covering budgetary transfers,
Noting furthermore that the adoption of the amendments to the financial regulations recommended by the Council required certain consequential amendments to the General Rules of the Organization (GRO),
Having considered also the amendment to the General Rules of the Organization regarding the Finance Committee's responsibilities under Rule XXVII-7(o)GRO in the review of the Organization's Audited Accounts, as proposed by the Council at its Fifty-Ninth Session,
Decides to adopt amendments to Financial Regulations IV, VIII, IX, X, XI and XIV and to Rule XXVII GRO as set out below.
A. Proposed Common Financial Regulations on Custody of Funds, Investment of Funds and Delegation of Authority 1
REGULATION VIII
Custody of Funds
8.1 The Director-General shall designate the bank or banks in which [the] funds in the custody of the Organization shall be kept [and report all such depositories to the Finance Committee].
REGULATION IX
Investment of Funds
9.1 The Director-General may [make short-term investments of] invest moneys not needed for immediate requirements [.], seeking, wherever practicable, the advice of the United Nations Investments Committee. The investment of moneys standing to the credit of any trust fund, reserve or special account shall be subject to any directives of the appropriate authority. [The Director-General may make long-term investments of moneys standing to the credit of Trust, Reserve or Special Funds as may be provided by the Conference or the Council in respect of each fund. The Director-General shall report to the Finance Committee periodically on any such investments.]
[9.2 The Director-General may, wherever practicable, seek the advice of the United Nations Investments Committee on such investments.]
9.2 At least once a year the Director-General shall include in the financial statements submitted to the Finance Committee a statement of the investments currently held.
9.3 Income from investments shall be credited to the fund or account from which the invested moneys derive unless otherwise provided in the regulations, rules or resolutions relating to that fund or account.
REGULATION XIV
Delegation of Authority
14.1 The Director-General may delegate to other officers of the Organization such 7/17/03authority [of his powers] as he considers necessary for the effective implementation of these Regulations.
1 Deletions in square brackets [ ] additions underlined.
B. Proposed Common Financial Regulations on Internal Control and The Accounts
REGULATION X
Internal Control
10.1 The Director-General shall:
(a) [in consultation with the Finance Committee] Establish detailed financial rules and procedures in order to ensure:
effective financial administration and the exercise of economy [;], and
effective custody of the physical assets of the Organization;
(b) Except where advance or progress payments are specifically provided for in the contract, as may be required by normal commercial practice and the interests of the Organization, [cause] ensure that all payments [to be] are made on the basis of supporting vouchers and other documents which [ensure] show that [the] services or goods have been received [and that payment has] and have not previously been [made] paid for;
(c) Designate the officers who may receive moneys, incur commitments or obligations, and make payments on behalf of the Organization;
(d) Maintain an internal financial control and internal audit which shall provide [for] an effective current examination and/or review of financial transactions in order to ensure:
the regularity of the receipt, custody, and [disposal] disbursement of all funds and [financial] other resources of the Organization;
the conformity of commitments or obligations and expenditures with the appropriations or other financial provisions voted by the Conference, or with the purposes, [and] rules and provisions relating to [Trust and other Special Funds]; the fund concerned, and
the economical use of the resources of the Organization.
10.2 [No] Commitments or obligations shall not be incurred and payments shall not be made [until allotments or other] unless an appropriate authorization[s] [have] has been made in writing under the authority of the Director-General.
10.3 The Director-General may [,under exceptional circumstances,] make such ex gratia 1 payments as he deems to be necessary [in the interest [s] of the Organization, provided that]. A statement of such payments shall be submitted with the [annual] final and interim accounts.
1 Words ex gratia to be in italics.
[10.4 The Director-General shall make suitable arrangements under which the Organization will be protected against loss on account of the conduct of officials who may be entrusted by him with the custody and disbursement of funds of the Organization.]
10.4 [10.5] The Director-General may, after full investigation, authorize the writing-off of losses of cash, [stores, and] supplies, equipment and other assets, other than arrears of contributions [provided that a statement of all such amounts written off shall be submitted to the auditors with the interim or final accounts.]. A statement of all such losses written off during the financial period shall be submitted to the External Auditor with the final and interim accounts.
10.5 [10.6] The Director-General shall establish [detailed] rules [governing tenders to be invited by advertisements or other methods and procedures] for the procurement of equipment, supplies and other requirements[.], including rules governing the invitation of tenders.
REGULATION XI
The Accounts
11.1 The Director-General shall maintain such accounts as are necessary and shall prepare [interim accounts at the end of the first calendar year of the financial period and] final accounts [at the end of the] for each financial period [.] showing: [Both the interim and final accounts shall show:]
The income and expenditure of all funds;
The status of appropriations, including:
the original budget appropriations;
any supplementary appropriations;
[ii] the apropriations as modified by any transfers
[iii] credits, if any, other than the appropriations voted by the Conference, and [;]
[iv] the amounts charged against [those] the appropriations and [] or] against any other credits [;].
[the assets and liabilities of the Organization.] Statements of assets and liabilities at the close of the financial period.
He shall also give such other information as may be [appropriate] necessary to indicate the current financial position of the Organization.
[11.2] The accounts of the Organization shall be presented in United States dollars. The account books may be kept in such currency or currencies as the Director-General may deem necessary. The Director-General shall include in the interim or financial accounts information on currency collection and utilization.]
11.2 Besides the final accounts for the financial period, the Director-General shall prepare interim accounts at the end of each of the intervening years.
11.3 Appropriate separate accounts shall be maintained [for] in respect of all [Trust, Reserve, and other special funds.] trust funds, reserves and special accounts.
[11.4 The Director-General shall provide the Finance Committee and Council, as of 31 March and 30 September, with statements showing the financial position of the Organization. In addition, the Director-General shall present at each session of the Finance Committee and Council statements showing the current financial position.]
11.4 The final and interim accounts of the organization shall be presented in United States dollars. The accounting records may, however, be kept in such currency or currencies as the Director-General may deem necessary.
[11.5 The interim accounts for the first calendar year of the financial period shall be submitted by the Director-General to the external auditor by 31 March following the end of the calendar year.]
11.5 The final and interim accounts shall be submitted to the External Auditor not later than 31 March following the end of the period to which they relate.
[11.6 The final accounts for the financial period shall be submitted by the Director-General to the external auditor by 31 March following the end of that financial period.]
C. Proposed Deletion
REGULATION IV
Appropriations
4.4(b) (iii) [“Notwithstanding the provisions of Financial Regulation 4.4(b) (i) and (ii) above, the Director-General may effect on his own authority between-chapter transfers of Allowances articles”]
D. Proposed Amendments to Rule XXVII-7 of the General Rules of the Organization
"7. The Finance Committee ...................................................... shall have, in particular, the following functions:
(i) [to consult with the Director-General and review his reports on the short- and longterm investments referred to in Financial Regulation 9.1] to consider reports on investments submitted by the Director-General in accordance with Financial Regulation 9.2, and to keep the Organization's investment policy under review;
“(1) to examine, on behalf of the Council, the audited accounts of the Organization, to review, in consultation with the Director-General reports [submitted by the Director-General, in accordance with Financial Regulation 11.4, consult with him] on the current financial position of the Organization submitted by the Director-General, and to report [annually] to the Council on these matters.”
“(o) to examine [and approve] the report of the external auditor and to report to the Council on matters involving policy issues.”
“(q) [to consult with the Director-General on, and] to keep under review, and consider any amendments to, the detailed financial rules and procedures referred to in Financial Regulation 10.1(a).”
