FINANCIAL AND BUDGETARY MATTERS (Agenda Item 8)^[64]

111. The Secretariat presented the report of the expenditures in the 2002-2003 biennium and the update information on the budget for the current, 2004-2005 biennium. The Secretariat indicated that for the present biennium the financial situation had improved since the 53^rd Session of the Executive Committee due to an increase in the budget allocated by the parent organizations, thus allowing Codex to retain the initial programme of work, including the schedule of Codex sessions. However, several cost saving measures still had to be applied to absorb the reductions foreseen in the 2004 allotments.

112. The Representative of FAO informed the Commission that in accordance with the guidance by its governing bodies FAO granted a high priority to Codex in finalising the budget and had significantly increased the funds allocated to Codex and Codex-related activities. He recognised that the host governments of Codex subsidiary bodies were also making valuable contribution to the work of Codex.

113. The Representative of WHO indicated that the World Health Assembly Resolution WHA56.23 on Codex, adopted in 2003, called for a more active role of WHO in Codex process and other related activities. He stressed that Codex should give a higher priority to matters related to public health and that interaction between health and agriculture sectors be strengthened at the national level.

114. The Commission noted that the format for the budget presentation was slightly modified from the 2002-2003 to the 2004-2005 biennium, reflecting the change made in the accounting system of FAO, through which the Codex budget was managed. The Commission also noted that expenditures for interpretation, document translation and printing were included in “FAO Services (Chargeback)” and that “Other Human Resources” comprised consultants and contracts.

115. Several delegations stated that the budgetary and financial report should be accompanied by the indication of corresponding programme activities in order to facilitate understanding and analysis. The Secretariat clarified that the current report was prepared in compliance with Rule XII.1 of the Commission’s Rules of Procedure and that the Commission would consider at its 28^th session the programme of work for the next biennium together with an estimate of expenditure. The Commission agreed that the Secretariat would examine means to improve the presentation of budgetary information in consultation with the relevant units of FAO.

116. The Representative of FAO, referring to the discussion at the 54^th session of the Executive Committee^[65], indicated that information would be provided, in the future, regarding the FAO and WHO budget allocated to Codex-related activities, especially scientific advice requested by Codex as well as that requested by member countries.

117. Several delegations stated that timely distribution of documents in the languages of the Commission was essential for effective participation in Codex. These delegations supported a wider use of electronic distribution of working documents and sections of the Procedural Manual, not only to accelerate document despatch but also to save printing and mailing costs.

118. The Commission agreed that the Secretariat would continue to explore possibilities of further cost savings, taking account of the comments made, and would soon issue a Circular Letter to all Codex Contact Points with a view to promoting the use of electronic distribution of documents in contrast to distribution of hard copies.

119. Taking note of the financial report for the biennium 2002-2003 and the updated budgetary information for the biennium 2004-2005, the Commission expressed its appreciation to FAO and WHO for their effort to maintain the adequate budgetary level for Codex and requested the parent organizations to continue to assign a high priority to the Joint FAO/WHO Food Standards Programme.