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Preparatory Commission for the Organisation for the Prohibition of Chemical Weapons |
PC-VII/A/WP.4 21 June 1994 Original: ENGLISH |
(27 June - 1 July 1994)
EXPERT GROUP ON PROGRAMME OF WORK AND BUDGET
SIXTH REPORT
1. In accordance with the Illustrative Weekly Schedule of Meetings attached to the Report of the Sixth Session of the Commission (PC-VI/22), the Expert Group on Programme of Work and Budget met in The Hague from 6-17 June 1994 to consider: (a) the first draft of the 1995 Programme of Work and Budget for the Commission; (b) the first draft of the Programme of Work and Budget for the first year of the OPCW; and (c) the Report of the Finance Group.
2. Ambassador Jorge Morales Pedraza of Cuba continued as the Chairman of the Expert Group.
3. The following documents were distributed during the meeting:
(a) Programme of Activities, dated 3 June 1994
(b) Fourth Report: Expert Group on Programme of Work and Budget (PC-VI/A/WP.11)
(c) Fifth Report: Expert Group on Programme of Work and Budget (PC-VII/A/WP.2)
(d) Plan of Activities of Expert Groups under Working Group A (PC-VI/A/5, pp. 10-11)
(e) First Draft of the 1995 Programme of Work and Budget for the Commission
(f) Finance Group: Report of the First Meeting
(g) Finance Group: Report of the Second Meeting (30 May and 1 June 1994)
(h) Note by the Executive Secretary: Proposed Adjustments to Phase I Staffing Requirements 1994 (PC-VII/2)
(i) A Set of Financial Statements, dated 29 May 1994
(j) Informal Discussion Paper by the Executive Secretary on a Possible Reward System for Meritorious Services, dated 30 May 1994
(k) Note by the Executive Secretary: Further Comments on Current Market Rates of Pay and Local Employment Conditions for General Service and Manual Worker Categories, dated 30 May 1994
(l) Considerations for OPCW Linguistic Support Policy, dated 14 June 1994
(m) The Role of the Security Officer within the PTS/TS of the OPCW, dated 14 June 1994.
Copies of the above documents are available from the Secretariat.
4. In the absence of complete documentation, the Group decided to consider the Programme of Work and Budget of the first year of the OPCW at a later stage.
Report of the Finance Group
5. In the absence of Mr. K. Lal, Chairman of the Finance Group, Messrs. Chakravarti of India and Noble of the United Kingdom of Great Britain and Northern Ireland presented the Second Report of the Finance Group. Mr. Ardron of the United Kingdom of Great Britain and Northern Ireland, who had served as Acting Chairman of the Finance Group during its second meeting, was invited to participate in the debate. Discussions on the Second Report of the Finance Group centred on the first draft of the Commission Budget for 1995, a reward system for meritorious services, salary scales for GS category staff, and formats for financial statements.
6. The Group took note of the questions raised by the Finance Group on the need for the Commission to have a cash-based award system.
7. The Group endorsed the decision contained in the Second Report of the Finance Group to postpone the review of GS salary scales until its next meeting in August 1994, at which time it is hoped that the United Nations will have conducted its own survey; and more salary data and detailed knowledge will thus be available.
8. Further to the recommendation contained in paragraph 5.1 of its Fifth Report, the Group considered the remaining proposals for post adjustments presented by the Executive Secretary in documents (h) and (m) referred to in paragraph 3 of this Report. The Group drew the attention of Working Group A to this issue.
9. Recalling the nature and mandate of the Finance Group, the Group expressed the desire to see a widening of participation in the Finance Group.
The 1995 Programme of Work and Budget
10. Discussions on the first draft of the 1995 Programme of Work and Budget of the Commission focused on the following issues:
(a) Introduction;
(b) General Setting;
(c) Programme of Work;
(d) Personnel Appropriations;
(e) Other Appropriations.
11. Part I and Part II of the 1995 Programme of Work and Budget of the Commission were reviewed separately. In each case, a general overview was followed by a detailed discussion of the programmes identified in the sections of this Report entitled "Specific recommendations Part I of the 1995 Budget" and "Specific recommendations on Part II of the 1995 Budget" respectively.
Recommendations
12. The Group recommended that, in preparing the revised draft of the Part I and Part II of the 1995 Budget, the Executive Secretary should ensure that:
(a) the aggregate resources for Part I and Part II of the 1995 Budget should not exceed those approved for the 1994 Budget;
(b) the total suggested staffing should take into account the comments and observations presented during the debates, the capacity of the building and the possible need for additional OPCW staff; and
(c) the time frame of 15 July 1994 for submitting the revised draft to the Finance Group and the Expert Group should be respected.
13. The Group also requested that the proposals concerning verification-related equipment contained in the draft 1995 Budget be reviewed by the Secretariat, taking into account the guidelines set out in this document, and that the outcome of this review be considered by the Expert Group on Inspection Procedures at its next meeting, in particular the proposed quantities of items to be purchased, any proposed new types of equipment, and the proposed timing of procurement.
General recommendations on Part I of the 1995 Budget, based on the various sections of the Second Report of the Finance Group
The Introduction
14. The Expert Group recommended that the Executive Secretary:
(a) limit the reference in 1.2 of the introduction to the Report of the Commission (PC-VI/22);
(b) prioritise supplementary requests in the general introduction, taking into account the actual workload required to implement the programme of work and a possible delay in the entry into force of the Convention;
(c) indicate the overall total of the budget in the introductory section and also indicate the proposed variations compared with the respective programmes in the approved budget for 1994. This statement should be cross-referenced to the summary tables of resource requirements; and
(d) include a general comment on the consultancy provision with an explanation of the relationship between the new posts, the resources required for consultancy and general temporary assistance.
The General Setting
15. The Group recommended that:
(a) the general presentation of the Budget and the presentation for each unit of the Secretariat should follow the structure, and make use of the tables contained in Annex 1 of this Report in the analysis of resource requirements;
(b) the full list of objectives should be included in the general setting; and
(c) the assumptions on the number of dependants and grade steps be reviewed in the light of actual statistics from the 1993 budgetary out-turns.
The Programme of Work
16. The Group recommended that:
(a) the Programme of Work should clearly differentiate between objectives and activities:
(i) already mandated objectives and new objectives for which mandates are requested;
(ii) ongoing activities and new activities; and
(iii) routine tasks and projects;
(b) the Programme of Work should clearly show where various units of the Secretariat play leading roles and supporting roles in the execution of programmes; and
(c) the Programme of Work should be revised to ensure that Phase I activities are clearly distinguished from Phase II activities in the presentation.
Personnel Appropriations
17. The Group recommended that:
(a) the staffing requirements for the Secretariat and for the various units of the Secretariat should be summarised in corresponding organisational charts; and
(b) requests for the bringing forward of Phase II positions to Phase I should be limited to the minimum considering the uncertainties regarding the exact date of EIF.
Other Appropriations
18. Considering actual expenditures and the general feeling expressed in the debates, the Group recommended that the level of Part I of the 1995 Budget be kept well below that of the 1994 Budget.
19. The Group also recommended that:
(a) the Common Staff Costs of the Budget be reviewed;
(b) the costing criteria be reviewed and recurrent costs separated from non-recurrent costs;
(c) travel requirements be reviewed with a view to reducing total costs by reducing the number of trips and creating linkages in the objectives of the trips. The Secretariat's travel strategy should emphasise multi-purpose trips. Advantage should be taken of regional seminars to make other contacts both at the seminar and within the regions where they are organised;
(d) Part I of the Budget should contain only the Phase I official travel allocations and, as much as possible, resources should be allocated to their respective programmes rather than being combined;
(e) in every case, a detailed breakdown of resource requirements should be shown;
(f) the Secretariat should limit recourse to consultants and rely more on in-house capabilities which have increased and are expected further to increase in 1994;
(g) the difference between consultancy and general temporary assistance should be reviewed and properly defined;
(h) major expenditures regarded as previously overlooked should be explicitly identified;
(i) items possibly covered by the Host Country Bid should be separately designated; and
(j) a more precise rationale should be given for recurrent and operating costs based on the 1994 experience.
Specific recommendations on Part I of the 1995 Budget
Office of the Executive Secretary
20. The Group endorsed the recommendation of the Finance Group (paragraph 5.1.3 (d)) that the current part-time internal audit function be placed in the Office of the Executive Secretary.
21. The Group also recommended that the budgetary allocation for official travel should include the cost of travel only of members of the Office of the Executive Secretary.
Verification Division
22. The Group endorsed the recommendation of the Secretariat to down-grade the position of the Head of the Laboratory from P-5 to P-4.
23. The Group recommended that:
(a) the Secretariat justify the case for a consultancy provision of Dfl. 148,000 outlined in paragraph 3.2.6 of the draft taking into account the resources already appropriated in 1994 for some of the tasks;
(b) the costs relating to the selection and medical clearance for inspectors/inspection assistants should be transferred to the Personnel Branch in the Administration Division; and
(c) the Secretariat review the allocation of resources for task (p) in the light of national offers of assistance. The Group encouraged Member States in a position to do so to offer such assistance.
Legal Division
24. The Group recommended that item (f) of the Programme of Work of the Division (dealing with the OPCW Arbitration Tribunal) be kept out at this stage.
Administration Division
25. The Group recommended that:
(a) the Programme of Work of the Personnel Branch be revised to include the leading role in the selection of inspector/inspection trainees;
(b) the appropriate resource allocation for the selection of the trainees and the associated medical clearance be included under Administration/Personnel;
(c) the selection of regional centres for interviewing candidates for inspector/inspection assistant trainee positions be based on the pattern of applications and cost implications;
(d) the costing criteria for interviews be reviewed;
(e) the proposals concerning the Information Systems Branch in the draft 1995 Budget be reviewed by the Secretariat, taking into account the guidelines set out in this document, and that the outcome of this review be considered by the Expert Group on Data Systems at its next meeting, in particular with regard to any proposed quantities of items to be procured, the proposed new types of equipment, and the proposed timing of procurement; and
(f) task (f) of the Programme of Work of the Information Systems Branch be deleted.
26. The Group endorsed the recommendation of the Committee on Relations with the Host Country that a P-3 Building Officer be recruited to provide day-to-day oversight of the Commission's interests. The Group also recommended that the Secretariat prepare a document presenting different alternatives for financing this post and present it for consideration at the next meeting of the Group. The position should be limited to the planning and construction phases of the OPCW Building.
Common Services not Distributed to Programmes
27. The Group took note of the Secretariat's intention to correct the figures for contractual services by subtracting the sum of Dfl. 853,000.
General Recommendations on Part II of the 1995 Budget
28. The Group endorsed the recommendation of the Finance Group that the question of separation benefits, i.e. benefits for Secretariat staff who voluntarily choose not to seek employment with the OPCW, who will not be required by the OPCW, or who will not be eligible for employment by the OPCW because they are nationals of signatory States that have not ratified the Convention, be reviewed at a later date when the Secretariat has determined the staffing patterns for the OPCW and has identified those staff members. This could provide a sounder and more accurate basis for the determination of the separation benefits. The revised draft budget should, however, contain an allocation for separation benefits based on the best current estimates.
29. The Group recommended that:
(a) the presentation of Part II of the 1995 Budget of the Commission should include the basic assumptions that correspond to this part of the Budget;
(b) the request for additional staff should take office accommodation into consideration and the number of positions at EIF, including inspector positions, should not exceed 400;
(c) recurrent and non-recurrent cost items be dealt with separately subject to overall aggregate limits; and
(d) for new positions and for major new expenditures, the budget proposals should specify the effect on operations if the requests are not approved.
30. In presenting the 1995 Budget, the Executive Secretary should present his assessment of the needs of Conference Services for the First Session of the Conference of the States Parties and any associated meetings of the Executive Council, including any budgetary implications, and taking into account the need for cost effectiveness of all, immediate and long-term expenditures.
Specific recommendations on Part II of the 1995 Budget
Verification Division
31. The Group recommended that:
(a) in the Programme of Work, task (l) concerning the Scientific Advisory Board and task (u) concerning the EIF structure of the Verification Division should be deleted;
(b) based on the assessment of the Secretariat, the posts of Analytical Assistant (P-2) and Laboratory Technician (GS-OL) already approved in the 1994 Budget be eliminated;
(c) in the revised costs for Part II, the overall impact of the requested 26 inspector posts should be separated from the impact of changes in the duration of the inspector training programme;
(d) the resource requirement for official travel relating to the training programme be deducted from the Dfl. 324,000 allocated for the Division in Part II, as provision for that is already included in the allocation for the training of Inspectors;
(e) training costs should be closely based on actual national offers where detailed costs are available and the number of trainees in each training course should be clearly specified; and
(f) the number of patient monitors be revised.
Legal Division
32. The Group recommended that:
(a) the staffing requirements foreseen in Part II of the 1995 Budget should be based on the assumption that bilateral and other agreements designed to implement the Convention will be concluded in authentic texts only from among the languages of the OPCW; and
(b) the budgetary allocation for official travel of Phase II should be included in the table containing the analysis of requirements and be explained.
Administration Division
33. The Group recommended that:
(a) the reasons for reductions in the resource requirements of the Budget and Finance Branch be included in the document;
(b) there should be no additional allocation of resources to the Conference Services Branch for the prolongation of the final Session of the Preparatory Commission since these are already provided for in the approved Part II Budget; and
(c) the proposals concerning the Information Systems Branch in the draft 1995 Budget be reviewed by the Secretariat, taking into account the guidelines set out in this document, and that the outcome of this review be considered by the Expert Group on Data Systems at its next meeting, in particular with regard to any proposed quantities of items to be procured, the proposed new types of equipment, and the proposed timing of procurement;
Other recommendations
34. The Group endorsed:
(a) the recommendation of the Finance Group that the Commission should adopt as its core accounting standards the Common Accounting Standards of the United Nations system as approved by the United Nations General Assembly at its 48th Session in November 1993 (Document A/48/530) and other comments and proposals contained in Annex 2 of this Report;
(b) the recommendation contained in paragraph 7.1 of the Second Report of the Finance Group that the Executive Secretary at a later stage provide the Expert Group on Programme of Work and Budget with a fuller substantiation of the case for a cash-award system so that the Expert Group can appropriately advise the Commission. This substantiation should also outline the practices of bodies in the UN system and other international organisations in developing an incentive system.
35. The Group also recommended that the question of the survey of GS salary scales be taken up during the August 1994 meeting of the Expert Group on Programme of Work and Budget following the current survey by the United Nations and a review of the results of the survey by the Finance Group.
36. The Group recommended that the revised draft 1995 Budget should explicitly state that expenditures of funds allocated for the appointment of new professional personnel under the 1995 Programme of Work and Budget will be incurred, continuing to take into account the current situation in the Secretariat and the views expressed at sessions of the Commission with respect to personnel policy, in the light of the recommendation in paragraph 7 of the Report on Staff Regulations (PC-IV/A/WP.5) that due regard be paid to the importance of properly applying Staff Regulation 4.2 concerning the requirement to recruit the staff on as wide a geographical basis as possible.
ANNEX 1
MODEL STRUCTURE FOR BUDGET PRESENTATION
1. Overview Section
(a) What is this Division responsible for?
(b) What are its key objectives and priorities for the period?
(i) Responsibilities (3-4 lines maximum)
cross-reference text to the Convention/Paris Resolution, as appropriate (with organogramme)
(ii) Objectives
(c) What must the Division do to fulfil its responsibilities under the statutory activities - Convention/Paris Resolution, decisions of the Commission (e.g. reference to WP.3). Highlight:
(i) essential objectives (mandated under PC-V/A/WP.3)
(ii) new objectives (for which mandate is now requested)
2. Programme of Work
(a) Specific tasks that will be performed to meet the above objectives.
Identify:
(i) recurrent (ongoing) activities (baseline work; or deferred from 1994)
(ii) new activities
3. Tables and Explanations
(a) Tables
(i) post requirements
(ii) financial resource requirements
(b) Explanations
(i) for each object of expenditure provide a note to justify the line item
(ii) identify new activities and relate the resource bids to the tasks/objectives statement.
Table ......................... Division
Analysis of Resource Requirements
(in thousands of Dutch Guilders)
1994 Increase/(Decrease)1
Main Object of Approved Adjusted Recosting Inflation Sub-total Real Total %2 1995
Expenditure 1994 Growth Estimates
1 2 3 4 5 6 (4+5) 7 8 (6+7) 9 10 (2/3 +
8)
Salaries Common
staff costs
Official travel
Grants: seminars
Consultants
Miscellaneous
TOTAL
1Decrease will be shown in brackets
2Related to column 2 or 3, whichever applies.
Table ....................... Division
Break-down of 1995 Estimates in recurrent and non-recurrent costs
(in thousands of Dutch Guilders)
Main Object of 1995 ESTIMATES
Expenditure
Recurrent Costs Non-recurrent Total
costs
1 2 3 (1+2)
Salaries
Common Staff costs
Official travel
Grants: seminars
Consultants
Miscellaneous
TOTAL
Explanation of table : Analysis of Resource Requirements
Column 1: Shows the main types of expenditure by Programme or branch (for Administration Division) under which resources are requested and allocated.
Column 2: Shows the budget amounts by type of expenditure as approved by the Commission.
Column 3: Shows the adjusted budget amounts after transfers have been made from the approved budget within the main objects of expenditure of the same Programme or between Programmes.
Column 4: Reflects a part of the cost increase or decrease attributable to the recosting of the approved or adjusted budget of the prior year as a result of a change in the basis for costing (as applied in the prior year).
Column 5: Shows a part of the cost increase or decrease attributable to price increases.
Column 6: Shows the sum of columns 4 and 5.
Column 7: Shows a part of the cost increase or decrease attributable to actual quantitative positive or negative growth.
Column 8: Shows the total increase or decrease in Dutch guilders in relation to the approved or adjusted budget of the prior year.
Column 9: Shows the total increase or decrease in percent of the approved or adjusted budget of the prior year.
Column 10: Shows the 1995 estimate as the sum of column 2 or 3, (whichever applies), and column 8.
EXTERNAL RELATIONS DIVISION
Programme Budget 1995 - Part I
ANNEX 2
IDENTIFICATION OF A SET OF FINANCIAL STATEMENTS
General comments
1. As a basic premise, the Group considered that the format and presentation of the Commission's financial statements should be based on, and consistent with, generally accepted accounting practices applicable to international inter-governmental organisations. As a first step, the Group suggested that the Preparatory Commission should adopt, as its core accounting standards, the Common Accounting Standards of the United Nations system as approved by the United Nations General Assembly at its 48th Session in November 1993 (Document A/48/530).
2. The Group considered that these standards should provide the Commission with a reasonable framework from which to develop the format for the financial statements. In particular, the Group noted that the UN Common Accounting Standards were designed to provide, among other things:
(a) a consistent and transparent disclosure of financial transactions;
(b) a review of an organisation's financial position and its evolution over time;
(c) an understanding of the derivation of income sources, and how this income is used to apply to expenditure; and
(d) a review of an organisation's financial performance against the approved budget.
3. The Group believed that these objectives are consistent with the Commission's expectations of what it may learn from a set of financial statements. Accordingly, the Group recommended that the reporting provisions of the Common Accounting Standards be applied by the Commission, to the extent that they are relevant to its operations.
Core content of the financial statements
4. The Group noted that the Common Accounting Standards require a complete set of financial statements to include:
(a) A Statement for the Status of Appropriations
(b) A Statement of Assets and Liabilities
(c) An Income and Expenditure Account
(d) A Statement of Changes in Financial Position (or Cash Flow Statement)
(e) A Statement of Significant Accounting Policies
(f) Such Notes, Other Statements and Schedules as are required to provide a fair presentation of the financial statements.
5. The Group considered that these requirements could be supplemented by guidance to assist the Secretariat in preparing the audited financial statements for 1993 and future years. The Group suggested the addition of the following:
(a) a Statement of the Executive Secretary's Responsibilities and Approval of the Financial Statements: the purpose of this Statement (an illustrative example is attached as Annex C) is to set out the Executive Secretary's responsibility under the Financial Regulations for the stewardship of the Commission's funds. The Statement should be signed by the Executive Secretary and the Director of Administration to indicate that the financial statements as presented to the governing bodies are those which were submitted for audit and are therefore the approved financial statements for the year;
(b) supporting schedules: the Group agreed that the Income and Expenditure Accounts for the General Fund and for the Capital Advance should each be supported by schedules showing the assessed contributions from Member States. The schedules would indicate, for each Member State:
(i) contributions assessed for the current financial year, the amounts received by the Commission, and the amounts outstanding;
(ii) assessments outstanding from prior years, brought forward at 1 January, the amounts received during the year, and the residual amounts outstanding (if any) at 31 December;
(iii) assessed contributions received in advance; and
(iv) for future years (i.e. beyond the 1993 financial statements), the Group considered that additional supporting schedules could be developed to provide more informative analysis of material or significant items. For example, if income from Voluntary Contributions becomes of major importance, then the Commission might prepare a schedule of the contributions received and analysed by donor, providing greater transparency of income from this source.
(c) supporting notes: in addition to the explanatory notes supporting individual balances disclosed in each of the financial statements, the Group suggested that the following notes would be of value:
(i) a statement on inventory assets (furniture, equipment, vehicles etc.), indicating the value of assets required in the financial period, and the total value of the inventory;
(ii) a statement of commitments entered into at 31 December for the purchase of material capital assets (e.g. furniture, equipment, IT systems, buildings), for which the liability to obligate funds will arise in a future financial year(s);
(iii) a statement of contingent liabilities (including a positive assertion that there were no material contingent liabilities at the date of the assets and liabilities statement, where this is in fact the case);
(iv) a statement of obligations entered into at 31 December relating to activities for the following financial year;
(v) a statement of pension funding arrangements, with a cross-reference to the financial statements of the Provident Fund;
(vi) a statement of losses (including those arising from fraud or presumptive fraud), administrative waivers, ex gratia payments etc. (including a positive statement that there were none, if this is in fact the case);
(vii) a statement indicating the trust or special funds established by the Executive Secretary in the financial year (if none, then a statement to this effect);
(viii) a statement indicating the breakdown of the budgetary surplus, indicating the actual cash surplus. In addition, this note should also indicate whether the surplus has been apportioned to Member States (Financial Regulation 6.1(b)); and
(ix) a statement on investments, for the General Fund and the Capital Advance.
Review of the 1993 unaudited financial statements
6. To provide the Secretariat with further guidance on how to present the Commission's financial statements, the Group carried out a preliminary review of the unaudited financial statements for 1993. The Group agreed that it would review the substance of these statements more fully when the External Auditor presented his Report to the Group at its next Meeting on 1-5 August 1994.
7. The Group had the following observations to make on the unaudited statements:
(a) Statement I (for future years): to show the impact of budgetary transfer on the Commission's revised budget, the "Appropriations" column of this statement should be expanded as follows:
Original Budget Revised Budget Budget Adjusted
Approved by Approved by Transfers Budget after
Commission Commission Budget
Transfers
For the 1993 audited financial statements, the Group suggested two additional refinements:
the column entitled "Unencumbered balance of appropriations" should be re-titled "Unobligated Appropriations," to reflect the text of Financial Regulation 4.3;
the statement should be supported by an explanatory note indicating that the provision of Financial Regulation 4.5 which allows budgetary transfers was not applicable for the 1993 financial year;
(b) Statement II (for future years): the Group suggested that under income (first line), "Assessed Contributions - Member States", should show the amounts received relating to current and prior years respectively. In addition, the Group suggested that this statement should indicate the cash surplus available for distribution to Member States;
(c) Notes to the financial statements: the Group considered that individual balances in each of the statements (Income and Expenditure Account, Assets and Liabilities Statement for both the General Fund and Capital Advance) should be cross-referenced to the supporting notes where an explanation was required. In addition, the Group suggested the following minor amendments:
(i) Note 2 (d): the basis of accounting is "modified accrual" rather than accrual basis (the former is consistent with the Regulations and Rules on unliquidated obligations);
(ii) Note 2 (g): the term "pledges" should be replaced by "Voluntary Contributions" to reflect the exact nature of the income, i.e. received in accordance with Financial Regulation 7.3;
(iii) Note 2 (h): expand to indicate that miscellaneous income includes interest earned in both the General Fund and Capital Advance cash balances;
(iv) Note 2 (k): expand the text to reflect that unliquidated obligations relate to purchase orders etc. "for which goods and services were delivered in part, or in full, before the end of the financial period" (Financial Rule 4.1.01); and
(v) Note 3 (b): this note deals with assessed contributions and, as such, would be better disclosed as part of an explanation of income, rather than the Status of Appropriations.
Other financial information
8. As a general principle the Group considered that the audited financial statements should form part of the Executive Secretary's Financial Report on Activities for the Past Year. The Group noted that, within the United Nations system, it is common practice for the Director-General or Secretary-General to submit to Member States a document which comprises three elements:
(a) the Director-General's commentary on financial performance for the year;
(b) the audited financial statements; and
(c) other financial information as may be requested by Member States (normally informational annexes on trust funds, etc.).
9. The Group suggested that the Executive Secretary should adopt this format as the basis for his Financial Report to the Commission.
10. Among other things, the commentary should provide:
(a) the Executive Secretary's comments on the overall financial position and performance during the year;
(b) reasons for any budgetary transfers made in the period; and
(c) explanations on significant over- or under-expenditure within Programme or object of expenditure.
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