G. Amendments to the financial regulations

G. Amendments to the financial regulations

New wording underlined Deletions brackets

Financial Regulation 3.3

The annual budget estimates shall be divided by function into [parts,] chapters, and where necessary into sub-chapters; chapter and subchapters shall be divided by object of expenditure into articles [items] and where necessary into sub-articles, [and] The budget estimates shall include annual programs of work, such information annexes and explanatory statements as may be requested on behalf of the Conference and the Council, and such further annexes or statements as the Director-General may deem [necessary and useful] appropriate.

Financial Regulation 3.4

The Director-General shall submit to the regular session of the Conference a detailed budget estimate for the ensuing first financial year and a budget estimate for the ensuing second financial year with as much detail as practicable. The estimates shall be dispatched to all Member Nations and Associate Members not less than 60 days before the date fixed for the opening of the session.

Financial Regulation 3.6

The Council shall prepare a report to the Conference on the estimates submitted by the Director-General. This report shall be transmitted to all Member Nations and

Associate Members at the same time as the estimates.

Financial Regulation 3.8

Supplementary estimates to cover [unforeseen and extraordinary expenses] emergency expenditure in accordance with Regulation 6.3 may be submitted by the Director-General when and as he may deem necessary.

Financial Regulation 4.1

(a) The appropriations voted by the Conference for the ensuing first financial year shall constitute an authorization to the Director-General to incur obligations and make payments for the purposes for which the appropriations were voted, and up to the amounts so voted. [but limited to the foreseeable receipts in that financial year].

(b) The appropriations voted by the Conference for the ensuing second financial year shall be reviewed by the Council at a session before the beginning of the second financial year in the light of all necessary details to be furnished by the Director-General and any recommendations he might desire to make. The appropriations thus examined, with any readjustments made on the basis of the Council's recommendations, shall constitute an authorization to the Director-General to incur obligations and make payments for the purposes for which the appropriations were voted by the Conference, and up to the adjusted amounts. [but limited to the foreseeable receipts in that financial year]

Financial Regulation 4.2

Appropriations shall be available for obligation during the financial year to which they relate. Unobligated appropriations at the close of the financial year shall be [surrended] cancelled.

Financial Regulation 4.3

[Such portion of appropriations as is required to meet the outstanding legal obligations as at 31 December of that year shall remain available for 12 months following the end of that year.]

Financial Regulation 4.4

[At the end of the 12-month period provided in Regulation 4.3 above, the then remaining balance of any appropriations retained shall be surrendered. Any unliquidated prior year obligation shall at that time be cancelled or, where an obligation remains a valid charge, transferred against current appropriations.]

Financial Regulation 4.3
(includes present 4.3 and 4.4)

Such portion of appropriations as may be required to meet the outstanding legal obligations as at 31 December of that year shall remain available for a period of twelve months, at the end of which period any remaining balances shall be credited to Miscellaneous Income of the current year. Any obligations remaining a valid claim at that time shall be charged against the next succeeding year's appropriation.

Financial Regulation 4.[5] 4

Notwithstanding the provisions of Regulation 4.2, the Conference may authorize the carry-over of credits in appropriations voted for sessions [meetings] of the Conference.

Financial Regulation 4.[6] 5

(a) Transfers [from one article to another] within the same chapter of the budget and the expenditure of any sum (or part thereof) which may have been voted in the budget to cover unforeseen contingencies, may be effected by the Director-General [on his own authority provided that the reasons for such transfer of expenditure are promptly reported in detail to the Council.]

(b) Transfers from one chapter of the budget to another may be effected by the Director-General after obtaining the approval of either the Council or, in the absence. of a Council session of the Committee on Financial Control. [authorized by the Council on the recommendation of the Director-General. Should emergencies arise, transfers between chapters may be authorized by the Committee on Financial Control on the recommendation of the Director-General, provided that the reasons for such transfers are promptly reported in detail to the Council].

(c) All transfers between chapters, subchapters and articles shall be reported to the next session of the Council with a statement of the reasons therefor.

[(c)] (d) Any savings which accrue during the operations of a financial year may be transferred by the Director-General to the [Contingency Reserve Fund] Contingencies Chapter. The transfer of such savings from [the Contingency Reserve Fund] Contingencies shall, however, be subject to the provisions of Regulation 4.5 (b).

Financial Regulation 5.1

The appropriations, subject to [the] related adjustments effected in accordance with Regulation 5.2, shall be financed by contributions from Member Nations, and Associate Members [according to the scale of contributions, the appropriations may be financed from the Working Capital Fund.] Contributions from Member Nations shall be assessed in accordance with the scale of contributions determined by the Conference, which scale shall not include contributions from Associate Members. Contributions from Associate Members shall as far as feasible be calculated on the same basis as contributions from Member Nations, the amount thus obtained being reduced by four tenths to take account of the difference of status between Member Nations and Associate Members, and shall be credited to Miscellaneous Income. Pending receipt of contributions, appropriations may be financed from the Working Capital Fund.

Financial Regulation 5.2

In the assessment of the contributions of Member Nations and Associate Members for each financial year adjustments shall be made [to the amount of the appropriations approved by the Conference for the following financial year] in respect of:

[b] (a) estimated Miscellaneous Income for the year in respect of which the assessment of contributions is being made;

[(a) debits or credits in the Working Capital Fund resulting from the application of Financial Regulation 6.5 (a) or (b) ;]

(b) credits accruing to Member Nations as a result of the application of Financial Regulation 6.1 (b);

(c) supplementary appropriations for which contributions have not previously been assessed on the Member Nations and Associate Members.

Financial Regulation 5.1

[As soon as possible after the Conference has voted the appropriations and determined the amount of the Working Capital Fund,] At the beginning of each financial year the Director-General shall:

[(a) transmit the relevant documents to Member Nations;]

[(b) inform Member Nations of their commitments in respect of annual contributions to the budget and advances to the Working Capital Fund;]

[(c) request them to remit all contributions and advances due to the Organization.]

(a) inform Member Nations and Associate Members of their obligations in respect of annual contributions to the budget;

(b) inform Member Nations of their obligations in respect of advances to the Working Capital Fund;

Financial Regulation 5.5

Annual contributions to the budget shall be assessed in United States dollars. To the extent that the Conference, after ascertaining in what currencies Member Nations and Associate Members propose to make their contributions in the ensuing two years, finds that anticipated United States dollar income will be inadequate to meet estimated United States dollar expenditures of the Organization as determined by the Conference the Conference will determine the proportionate share of contribution that all Member Nations and Associate Members who do not pay their contributions in full in United States dollars shall pay in that currency. Each Member Nation and Associate Member shall pay the remainder of its contribution in fire, or in its own currency which for the purposes of its FAO contributions must be freely convertible into fire, the convertibility being the responsibility of the contributing government. The applicable rate shall be the official rate of the fire to the dollar on the first business day in January of the year for which the contribution is assessed or the rate in effect on the day the payment is made, whichever is the higher.

Financial Regulation 5.6

[ Advances to the Working Capital Fund shall be assessed in United States dollars and shall be payable in United States dollars.]

[5.7] 5.6 Obligations of Member Nations and Associate Members, including arrears of contribution, shall remain payable in the currency of contribution of the year in which they were due.

Financial Regulation [5.8] 5.7

Any nation admitted to membership [in the Organization] or any territory or group of territories admitted to associate membership shall pay a contribution to the budget for the financial year in which the membership or associate membership becomes effective. Such contribution shall be in an amount determined by the Conference, and shall begin with the quarter in which the application was approved. All new Member Nations shall be required to make advances to the Working Capital Fund in accordance with Regulation 6.2 (b) (ii).

Financial Regulation [5.9] 5.8

[The Director-General shall submit to the Council at the expiration of each quarter a statement of all contributions received and outstanding.] The Council at any of its sessions may advise the Director-General as to any steps that ought to be taken in order to expedite the payment of contributions. The Council may submit to the Conference such recommendations in this regard as it may consider appropriate.

Financial Regulation 6.1

(a) There shall be established a General Fund [for the purpose of accounting for the expenditures of the Organization. The contributions paid by Member Nations under Regulation 5.1.] to which shall be credited receipts from contributions of Member Nations, whether current or arrears, Miscellaneous Income and [any] advances made from the Working Capital Fund; [to finance general expenditures shall be credited to the General Fund] and from which shall be made all general expenditures, and reimbursements to the Working Capital Fund under Financial Regulation 6.5 (a).

(b) Any cash surplus in the General Fund at the close of any financial year shall be allocated among Member Nations in accordance with that year's Scale of Contributions and, as at 1 January following the year in which the audit is completed, shall be released and applied to liquidate, in whole or in part; first any advance due to the Working Capital Fund; secondly, any arrears of contributions; and, thirdly, contributions for the year following the year in which the audit is completed.

Financial Regulation 6.2

(a) (ii) advancing monies to the General Fund to finance [unforeseen or extraordinary] emergency expenditures not provided for in the current budget.

[(6) The amount of the Working Capital Fund thus determined shall be provided by Member Nations in United States dollars. Member Nations' advances to the Fund shall be in the same ratio as the Scale of Contributions to the budget and shall be subject to modification upon a revision or change in such scale, or upon Conference determination changing the total amount of the Fund.]

(b) The amount of the Working Capital Fund thus determined shall be contributed by Member Nations in United States dollars in accordance with the following provisions:

(i) Member Nations shall be assessed as at 1 January 1956 in accordance with the Scale of Contributions for 1956. Any amounts standing to their credit in the Fund on 31 December 1955 shall be applied against this assessment.

(ii) A new Member Nation shall be assessed in an amount determined by the Conference. Unless the Conference decides otherwise, the amount of the new Member Nation's assessment shall be considered as an increase to the level of the Working Capital Fund.

(iii) The assessment of Member Nations in the Working Capital Fund, effected under paragraph (i) above, shall not be changed by modifications in the Scale of Contributions or in the membership of the Organization unless the Conference decides otherwise.

(iv) If the Conference decides to change the level of the Working Capital Fund there shall be a reassessment.

(v) Any reassessment shall be made in the year next following the Conference determination and calculated in accordance with the Scale of Contributions of that year.

(vi) On reassessment, any excess of credits due to Member Nations shall be released immediately from the Working Capital Fund and applied (after any General Fund surplus has been released and applied in accordance with the provisions of Financial Regulation 6.1 (b)): first to contributions in arrears; secondly, to current contributions; thirdly, refunded or applied against future contributions at the option of Member Nations.

Financial Regulation 6.3

[(a) Withdrawals from the Working Capital Fund for financing budgetary expenditures under Regulation 6.2 (a) (i) shall not exceed an amount equivalent to foreseeable receipts in that financial year in accordance with Regulation 4.1.]

[(b)] Withdrawals from the Working Capital Fund for financing [extraordinary or unforeseen expenditures shall be limited to extreme emergencies and] emergency expenditures shall be approved in advance by the Council.

[6.3 (c) Payments of arrears of contributions for a past year received during the current year shall be carried to the credit of Member Nations in the Working Capital Fund in accordance with the Scale of Contributions applicable to the financial year in which the contributions were due.

(d) Any cash surplus in the General Fund at the close of any financial year shall accrue to the Working Capital Fund.]

Financial Regulation 6.4

[(a)] Monies provided by...

[(b) If the balance of the Working Capital Fund at the close of any financial year falls short of the total of the advances paid by Member Nations under Regulation 6.2 (b) the net amount of withdrawals shall be carried as a charge in the Fund to all Member Nations in accordance with the Scale of Contributions applicable to the financial year in which the amount was withdrawn.]

[(c) If the balance of the Working Capital Fund at the close of any financial year exceeds the total of the advances paid by Member Nations under Regulation 2.6 (b), the excess shall be carried as a credit in the Fund to all Member Nations in accordance with the Scale of Contributions applicable to the financial year in which the surplus accrued.]

Financial Regulation 6.5

(a) [The Conference shall determine the method of reimbursement of any net withdrawal from the Working Capital Fund, at the close of any financial year. If the Conference determines that such net withdrawal is to be reimbursed by additional assessment on Member Nations, payment made on such additional assessment by each Member Nation shall be carried to its credit in the Working Capital Fund.]

Advances made from the Working Capital Fund to finance budgetary expenditure under Financial Regulation 6.2 (a) (i) shall be reimbursed from the General Fund as soon as feasible, but in any case within the next two ensuing financial years, by program adjustments if necessary.

(b) [Unless the Conference decides otherwise any excess of monies over the established amount of the Working Capital Fund at the close of any financial year, as shown in the audited accounts, shall be released. Any funds so released shall be applied in the case of each Member Nation to its contribution in arrears, or, in the absence of such arrears, shall, at the option of the Member Nation, be applied either to current and future contributions or as a cash refund. Such a refund shall be made in the currencies in which that Nation's advances and/or contributions were paid, and shall be made as soon as the current contribution of that Nation is paid. Funds released shall be charged to the equities of Member Nations in proportion to their respective excess credits in the Working Capital Fund.]

Advances made from the Working Capital Fund to finance emergency expenditure under Financial Regulation 6.2 (a) (ii) shall be reimbursed by such method as the Conference determines.

Financial Regulation 6.6

(b) If a Nation withdraws its membership in the Organization, any credit it may have in the Working Capital Fund shall be used toward liquidation of any financial obligation such Nation may have to the Organization. Any residual balance shall be refunded to the withdrawing Nation under such terms and conditions as the Conference may determine. [after adoption of the audited accounts for the financial year in which such membership is terminated.]

Financial Regulation 6.9

There shall be established a Publications Revolving Fund to which shall be credited all proceeds [from the sale of publications and films. The use of the Fund shall be limited to the cost of reprinting those FAO publications and films for the sale of which there is a demand.] of sales of publications and films. The Fund shall be used only for the following purposes: (i) to meet the cost of reprinting those FAO publications and reissuing those films for the sale of which there is a demand; (ii) to promote, within a maximum amount determined by the Conference, the sale of FAO publications and films. Any balance at the end of each year in excess of $ 20,000, as shown in the audited accounts of the Fund, shall be transferred to Miscellaneous Income of the year during which the audit is completed.

Financial Regulation 7.1

Contributions from Associate Members and all Receipts other than:

(a) contributions from Member Nations to the budget;

(b) direct refunds of expenditures made during the financial year;

(c) advances to the Working Capital Fund or deposits to Trust and Special Funds and other receipts directly related to those funds, and

(d) proceeds of sales of publications and films,

shall be classed as Miscellaneous Income, for credit to the General Fund. Interest or other income derived from any Trust or Special Fund accepted by the Organization shall be credited to the fund to which it relates, unless provided for otherwise by the terms of the applicable trust or special fund agreement.

Financial Regulation 7.5

[(a)] Miscellaneous Income shall be estimated [at the beginning of] for each financial year. [in connection with the formulation of the budget, and such estimated income shall be applied as an adjustment to the appropriation before the application of the Scale of Contributions for determination of Member Nations' assessment.]

[(b)] If the actual Miscellaneous Income for the year either exceeds or is less than the estimate, [Miscellaneous Income estimated for the adjustment above described] such excess or such shortfall shall [be treated as] form a part of the [operating] surplus or deficit of that financial year. [and shall be handled in accordance with Regulation 6.3 (b) and (d)]

Financial Regulation 10.1

The Director-General shall

(a) in consultation with the Committee on Financial Control establish [and communicate to the Council] detailed financial rules and procedures in order to ensure effective financial administration and the exercise of economy.

Financial Regulation 10.5

The Director-General may, after full investigation, authorize the writing off of losses of cash, stores, and assets other than arrears of contributions [due from Member Nations] provided that a statement of all such amounts written off shall be submitted to the auditors with the annual accounts.

Financial Regulation 10.6

[Tenders for] 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. [shall be invited by advertisement, except where the Director-General deems that, in the interests of the Organization, a departure from the rule is desirable.]

Financial Regulation 11.2

The statement of accounts of the Organization shall be presented in U.S. dollars. [provided, however, that the Director-General shall include in the annual accounts a statement showing the currencies in which contributions were received from Member Nations and such other information on other currencies as the Director-General may deem necessary.] The books of account may be kept in such currency or currencies as the Director-General may deem necessary. The Director-General shall include in the annual financial statements information on currency collection and utilization.

Financial Regulation 11.4

[The Director-General shall forward to the Council quarterly reports on all receipts and expenditures of the Organization.]

The Director-General shall provide the Committee on Financial Control and Council, as at 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 Committee on Financial Control and Council statements showing the current financial position.

Financial Regulation 12.3

Subject to the directions of the Conference, the auditor(s) shall be the sole judge as to the acceptance in whole or in part of the certifications by the [secretariat] officials of the Organization and may proceed to such detailed examination and verifications as tit chooses] they chose of all financial records, including those relating to supplies and equipment. The auditor(s) may engage commercial auditors of international repute.

Financial Regulation 12.5

The auditor(s) and their staff shall have free access at all convenient times to all books of account and records which are in the opinion of the auditor(s), necessary for the performance of the audit. Information classified in the records of the [secretariat] Organization as confidential, and which is required for the purpose of the audit, shall be made available on application to the Director of Administration.

Financial Regulation 12.6

The auditor(s), in addition to certifying the accounts, may make such observations as they deem necessary with respect to the efficiency of the financial procedures, the accounting system, the internal financial control, and in general, the financial consequences of administrative practices. In no case, however, shall the auditor(s) include criticism in their audit report without first affording the [secretariat] officials of the Organization an opportunity of explanation to the auditor(s) of the matter under observation. Audit objections to any item in the accounts shall be immediately communicated to the Director of Administration.

Financial Regulation 16.4

The Council shall, on request of the Committee on Financial Control, transmit any reports of the Committee to Member [Governments] Nations and Associate Members and to the next regular session of the Conference, together with any comments the Council may wish to make.

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