CONSTITUTION

Continued

Paragraphs 2 and 3 of Rule XXVI are to be renumbered 6 and 7 and a new sub-paragraph (c) is to be added to paragraph 7 as follows:

O (c) during any session, the Council may, by a vote concurred in by at least two thirds of the membership of the Council, add to the agenda any item proposed by a member of the Council.

Paragraphs 4 to 8 of Rule XXVI are to be renumbered 8 to 12 and a new paragraph 13 is to be added as follows:

O 13. The Director-General or his representative shall attend all meetings of the Council. Add a new Rule XXVII (Program Committee) as follows:

O 1. The Program Committee provided for in paragraph 6 of Article V of the Constitution shall be composed of a Chairman, six other members and a first and second alternate, all selected by the Council in a personal capacity from among qualified individuals who have shown a deep interest in the objectives of the Organization and who have participated in Conference and Council sessions and in other technical activities of the Organization. The Chairman, other members and alternates shall be elected for a period of two years, at the session of the Council immediately following the regular session of the Conference. The Chairman and each other member and alternate of the Committee shall be a national of a different Member Nation. They shall be eligible for reappointment.

OE 2. The names of the persons to be considered for appointment as the Chair man, members and alternates of the Pro gram Committee as well as information on their qualifications and experience shall be circulated by the Secretary-General in writing to the Members of the Council before the Council meeting at which the appointments will be made. Before any appointment is made an assurance shall be obtained by the Secretary-General that the individual concerned is willing to serve on the Committee if he is appointed.

OE 3. The provisions on voting arrangements of Rule XII of these Rules shall apply mutatis mutandis to the election of members of the Committee.

O 4. An alternate member shall attend a Committee session only when a member expects to be absent for the whole of that particular session. An alternate substituting for a member of the Committee shall have the same rights and privileges as a member.

O 5. The Chairman of the Program Committee may attend sessions of the Conference or Council when the report of the Program Committee is considered.

O 6. The Chairman of the Council may attend all meetings of the Program Committee.

O 7. The Program Committee shall have the following functions:

(a) to review:

(i) the current activities of the Organization;

(ii) the draft Program of Work and Budget of the Organization for the ensuing biennium, particularly with respect to:

- content and balance of the pro gram, having regard to the extent to which it is proposed that existing activities be expanded, reduced in scope or discontinued;

- the extent of co-ordination of work between the different technical divisions of the Organization and between the Organization and other international organizations;

- the priorities to be given to existing activities, extension of such activities and to new activities;

(iii) the program aspects of the Expanded Program of Technical Assistance with which the Organization is concerned. (b) to consider the matters listed in Rule XXIX of these Rules; (c) to advise the Council on the long-term program objectives of the Organization; (a!) to adopt and amend its own rules of procedure which shall be consistent with the Constitution and the Rules adopted by the Conference:

(e) to consider any other matter submitted to it by the Council or the Director-General;

(f) to report to the Council or tender advice to the Director-General, as appropriate, on matters considered by the Committee.

O 8. The Program Committee shall hold sessions on the call of its Chairman or of the Director-General. It shall, in any event, hold one session annually.

O 9. Members of the Program Committee shall be reimbursed for the cost of their travel expenses and shall also be paid a subsistence allowance while attending sessions of the Committee, in accordance with the travel regulations of the Organization.

Add a new Rule XXVIII (Finance Committee) as follows:

O 1. The Finance Committee provided for in paragraph 6 of Article V of the Constitution shall be composed of a Chairman, four other members and a first and second alternate, all selected by the Council in a personal capacity from among individuals in the government service of Member Nations, for their special competence in finance and administration. The Chairman, other members and alternates shall be elected for a period of two years, at the session of the Council immediately following the regular session of the Conference. The Chairman and each other member and alternate of the Committee shall be a national of a different Member Nation. They shall be eligible for reappointment.

OE 2. The names of the persons to be considered for appointment as Chair man, members and alternates of the Finance Committee as well as information on their qualifications and experience shall be circulated by the Secretary-General in writing to the Members of the Council before the Council meeting at which the appointments will be made. Before any appointment is made an assurance shall be obtained by the Secretary-General that the individual concerned is willing to serve on the Committee if he is appointed.

OE 3. The provisions on voting arrangements of Rule XII of these Rules shall apply mutatis mutandis to the election of members of the Committee.

O 5. The Chairman of the Finance Committee may attend sessions of the Council or Conference when the report of the Finance Committee is considered.

O 6. The Chairman of the Council may attend all meetings of the Finance Committee.

O 7. The Finance Committee shall assist the Council in exercising control over the financial administration of the Organization and shall have in particular the following functions;

(a) to review the financial implications of the Director-General's budgetary proposals, including proposals for supplementary estimates, and to make recommendations thereon to the Council regarding important matters;

(b) to examine the Director-General's proposals with regard to the acceptance of voluntary contributions which involve additional financial obligations for Member Nations or Associate Members, and to submit recommendations thereon to the Council;

(d) to approve budgetary transfers proposed by the Director-General under the terms of Financial Regulation 4.4 (b) (i); and to review proposals of the Director-General regarding budgetary transfers under the terms of Financial Regulation 4.4 (b) (ii), making recommendations thereon to the Council:

(e) to inform the Program Committee of any budgetary transfers that may have significant program implications:

(f) to review the Director-General's proposals to make withdrawals from the Working Capital Fund for emergency expenditure or reimbursable loans and to make recommendations thereon to the Council;

(g) to consider, and make recommendations to the Council on the establishment of reserve funds;

(h) to review the reports of the Director-General on the establishment of Trust and Special Funds, and to make recommendations to the Council regarding such Funds as involve additional financial obligations for Member Nations and Associate Members;

(i) to consult with the Director-General and review his reports on the short and long-term investments referred to in Financial Regulation 9.1;

(j) to keep under review the scale of contributions and to submit recommendations to the Council regarding any modification of such scale;

(k) to consider the reports of the Director-General on ex gratia payments;

(l) to examine on behalf of the Council the audited accounts of the Organization, review reports submitted by the Director-General in accordance with Financial Regulation 11.4, consult with him on the financial position of the Organization, and report annually to the Council on these matters;

(m) to recommend to the Council the appointment of the external auditor;

(n) to determine, after consultation with the external auditor, the scope of the audit;

(o) to examine and approve the report of the external auditor and to report to the Council on matters involving policy issues;

(p) to consider and/or recommend proposals for the amendment of the Financial Regulations of the Organization and to submit recommendations to the Council for transmission to the Conference;

(q) to consult with the Director-General on, and to keep under review, the detailed financial rules and procedures referred to in Financial Regulation 10.1 (a);

(r) to consider proposals of the Director-General on the scale of salaries and the conditions of employment of the staff and on the general structure of the administrative and technical services of the Organization;

(s) to adopt and amend its own Rules of Procedure which shall be consistent with the Constitution and the Rules adopted by the Conference;

(t) to perform such other functions relating to financial or administrative matters of the Organization as may be provided for in these Rules and the Financial Regulations, and to perform such other duties as may be referred to it by the Council;

(u) to consider the matters listed in Rule XXIX of these Rules.

O 8. The Finance Committee shall hold sessions as often as necessary, either:

(a) on the call of its Chairman acting on his own initiative or in pursuance of a decision of the Committee or of a request submitted in writing to the Chairman by three members of the Committee; or

(b) on the call of the Director-General acting on his own initiative or in pursuance of a request submitted in writing to him by five or more Member Nations.

The Finance Committee shall in any event hold one session annually. Additional sessions may be held to provide consultation on financial matters with the appropriate commissions of the Conference.

O 9. Members of the Finance Committee shall be reimbursed for the cost of their travel expenses and shall also be paid a subsistence allowance while attending sessions of the Committee in accordance with the travel regulations of the Organization.

Add a new Rule XXIX (Concurrent Sessions and Joint Meetings of the Pro gram and Finance Committees) as follows:

O 1. In the second year of the biennium, the Program Committee and the Finance Committee shall hold concurrent sessions. At these sessions the two Commit tees shall, inter alia, review separately the draft Program of Work and Budget submitted by the Director-General for the following biennium. The Program Committee shall consider the program and relevant financial aspects of the draft Program of Work, while the Finance Committee shall consider the financial aspects of the draft Program of Work and Budget without concerning itself with the merits of the Program

O 2. Towards the end of the concurrent sessions mentioned above, the two Committees shall hold joint meetings to consider:

(a) the financial implications of the technical aspects of the draft Program of Work;

(b) the implications of the draft Pro gram of Work in so far as the level of the budget is concerned;

(c) the financial implications with respect to future years of the activities provided for in the draft Program of Work and Budget;

(d) the format to be adopted for the presentation of the draft Program of Work and Budget in order to facilitate the review thereof;

(e) any other matter of joint interest to the two committees which fall within their terms of reference.

O 3. The Program and Finance Commit tees shall submit to the Council a consolidated report on such aspects of the draft Program of Work and Budget as are of joint interest setting out the main features thereof and emphasizing policy issues for consideration by the Council or the Conference.

Add a new Rule XXX (Committee on Commodity Problems! as follows:

O 1. The Committee on Commodity Problems provided for in paragraph 6 of Article V of the Constitution shall be composed of twenty-four Member Nations elected by the Council for a period of two years at the session of the Council immediately following the regular session of the Conference. In selecting the members of the Committee, the Council shall give due consideration to the desirability of ensuring a balanced representation of importing and exporting countries and continuity of experience in matters dealt with by the Committee. The members of the Committee shall be eligible for reelection. The Committee shall elect its own Chairman from amongst its members.

OE 2. Nomination of any candidate for election to the Committee shall be submitted in writing by one or more Member Nations to the Secretary-General by a deadline to be determined by the Chairman of the Council in time to be circulated on the morning preceding the day set for the election. A Member Nation may nominate itself. Member Nations nominated shall signify their willingness to serve on the Committee if elected.

OE 3. The provisions on voting arrangements of Rule XII of these Rules shall apply mutatis mutandis to the election of members of the Committee.

O 4. The Committee shall determine the date and place of its sessions. Normally the Committee shall hold three sessions during each biennium, to be convened by the Director-General in consultation with the Chairman of the Committee. One of these sessions shall be convened sufficiently in advance of the session of the Council held approximately midway between the regular sessions of the Conference in order that the report of the Committee may be circulated to the Members of the Council in accordance with the provisions of Rule XXVI-7 (a) of these Rules.

O 5. If required the Committee may hold additional sessions on the call of its Chairman or the Director-General or on request submitted in writing to the Director-General by a majority of the members of the Committee.

O 6. The Committee shall:

(a) keep under review commodity problems of an international character affecting production, trade, distribution, consumption and related economic matters;

(b) prepare a factual and interpretative survey of the world commodity situation, which may be made available directly to Member Nations;

(c) report and submit suggestions to the Council on policy issues arising out of its deliberations. The reports of the Committee and its subsidiary bodies shall be made available to Member Nations for their information.

O 7. The Director-General or his representative shall participate in all meetings of the Committee and may be accompanied by such officers of the staff of the Organization as he may designate.

O 8. The Committee may adopt and amend its own rules of procedure which shall be consistent with the Constitution and the Rules adopted by the Conference.

O 9. The Committee may when necessary establish sub-committees, subsidiary working parties or commodity study groups, subject to the necessary funds being available in the relevant chapter of the approved budget of the Organization, and may include in the membership of such sub-committees or subsidiary working parties Member Nations that are not members of the Committee and Associate Members. The membership of commodity study groups established by the Committee may include nations which, while not Member Nations or Associate Members of the Organization, are members of the United Nations.

O 10. The subsidiary bodies referred to in the preceding paragraph may adapt and amend their own rules of procedure which shall be approved by the Committee on Commodity Problems and shall be consistent with the Rules of the Committee.

Add a new Rule XXXI (Committee on Constitutional and Legal Matters) as follows:

O 1. The Council, at its session immediately following the regular session of the Conference shall, in accordance with the provisions of paragraph 6 of Article V of the Constitution, appoint a Committee on Constitutional and Legal Matters composed of not more than seven Member Nations. The term of office of the Committee shall expire at the end of the following session of the Council but may be extended for a further period by a decision of the Council.

O 2. Nomination of any candidate for election to the Committee shall be submitted in writing by one or more Member Nations to the Secretary-General by a deadline to be determined by the Chair man of the Council in time to be circulated on the morning preceding the day set for the election. A Member Nation may nominate itself. Member Nations nominated shall signify their willingness to serve on the Committee if elected. The provisions on voting arrangements of Rule XII of these Rules shall apply mutatis mutandis to the election of Members of the Committee.

O 3. The Committee shall hold sessions, in accordance with decisions of the Council, to consider specific items referred to it by the Council which may arise out of:

(a) the application or interpretation of the Constitution, Rules adopted by the Conference and Financial Regulations or amendments thereto;

(b) the formulation, adoption, entry into force and interpretation of multi lateral conventions and agreements concluded under Article XIV of the Constitution;

(c) the formulation, adoption, entry into force and interpretation of agreements to which the Organization is a party under Articles XIII and XV of the Constitution;

(d) any other problems relating to conventions and agreements concluded under the aegis of the Organization or to which the Organization is a party;

(e) the establishment of commissions and committees under Article VI of the Constitution including their membership, terms of reference, reporting procedures and rules of procedure;

(f) matters relating to membership in the Organization and its relations with nations;

(g) the desirability of requesting advisory opinions from the International Court of Justice in accordance with paragraph 2 of Article XVII of the Constitution or with the Statute of the Administrative Tribunal of the Inter national Labour Organization;

(h) the policy regarding privileges and immunities to be sought from host governments for regional offices, conferences and meetings;

(i) problems relating to elections and procedure for nominations;

(j) standards for credentials and full powers;

(k) reports on the status of conventions and agreements provided for in Rule XXI paragraph 5 of these Rules;

(l) policy aspects of relations with international governmental or non-governmental organizations, national institutions, or private persons.

When the Committee is in session, the Director-General, after consultation with the Chairman of the Committee, may seek the Committee's advice on matters of a constitutional or legal character.

O 4. The Committee shall at each of its sessions elect a Chairman and a Vice-Chairman from among its members.

O 5. The meetings of the Committee shall be held in private unless otherwise deter mined by the Committee.

O 6. The Committee may adopt and amend its own rules of procedure which shall be consistent with the Constitution and the Rules adopted by the Conference.

Rules XXVII to XXXIV are to be renumbered XXXII to XXXIX.

In Rule XXXII (Commissions, Committees and Working Parties), the reference appearing in paragraph 2 is to be changed from " Rule XXVI, paragraph 1 (d) " to " Rule XXV, paragraph I (e) (v) of these Rules". ".

In Rule XXXIII, paragraph 1, replace sub-paragraph (a) by the following text:

E (a) Whenever the office of the Director General is vacant, or notice is received of a pending vacancy, the appointment of a new Director-General shall be placed on the agenda of the next Session of the Conference which opens not less than ninety days from the occurrence or notice of the pending vacancy. Nominations validly made in accordance with Rule XII-5 of these Rules shall be communicated to the Secretary-General by the date set by the Council. The Secretary-General shall circulate these nominations to all Member Governments and Associate Members by the date likewise set by the Council. As soon as possible after the opening of the Conference Session, the General Committee shall determine and announce the date of the election.

In Rule XXXIV (Functions of the Director-General), replace paragraph 2 by the following text:

O 2. In particular, the Director-General shall, in accordance with these Rules and the Financial Regulations and provided that he reports to the Council or Conference as appropriate on all matters involving policy issues:

(a) be responsible for the internal administration of the Organization and for the appointment and discipline of the staff;

(b) convene the sessions of the Conference and Council;

(c) publish annually and communicate to Member Nations and Associate Members a detailed world survey of the state of food and agriculture;

(d) present a report on the work of the Organization at each regular session of the Conference;

(e) carry out the duties with regard to conventions and agreements laid down in these Rules;

(f) receive applications for admission to the Organization;

(g) prepare, in the light of guidance given by the Conference at previous sessions, by commissions or committees of the Conference and by the Council. regional or other technical conferences. the draft Program of Work and Budget of the Organization and submit them to the Conference after having consulted the appropriate organs of the Organization;

(h) prepare and submit the accounts of the Organization;

(i) prepare a report on the state of food and agriculture for submission to the regular session of the Conference as provided in Rule II-2 (c) (i);

(j) request and receive payments of contributions of Member Nations and Associate Members and report thereon;

(k) conduct the relations of the Organization with other international organizations, and provide liaison with inter governmental commodity bodies and with United Nations agencies;

(l) perform such other duties as are provided for in these Rules and the Financial Regulations, or any other rules and regulations from time to time in force.

At the cad of Rule XXXIV, add a new paragraph 4 as follows:

O 4. When determining the site of a session of bodies established under Articles VI or XIV of the Constitution, the Director-General should be satisfied that the host-government is willing to grant to all delegates, representatives, experts, observers and members of the Secretariat of the Organization, attending such a session, the immunities that are necessary for the in dependent exercise of their functions in connection with the session.

O In paragraph 2 of Rule XXXVI (Pro visions relating to Staff), replace the word " Council " by words " Finance Commit tee " in the first sentence, and in paragraph 4 add the words "of this Rule " after the words " paragraph 1".

FINANCIAL REGULATIONS

B Regulation II (The Financial Period) is to be replaced by the following text:

2.1 The financial period shall be two calendar years in accordance with Article XVIII.4 of the Constitution.

B Regulation III (The Budget) is to be replaced by the following text:

3.1 The budget estimates shall be prepared by the Director-General.

3.2 The estimates shall cover income and expenditures for the financial period to which they relate, and shall be presented in U.S. dollars.

3.3 The budget estimates shall be divided by function into chapters, and where necessary into sub-chapters; chapters and sub-chapters shall be divided by object of expenditure into articles and where necessary into sub-articles. The budget estimates shall include the Program of Work for the financial period, such information' annexes and explanatory statements as may be requested on behalf of the Conference or the Council, and such further annexes or statements as the Director-General may deem appropriate.

3.4 The Director-General shall submit to the regular session of the Conference detailed budget estimates for the ensuing financial period. The estimates shall be despatched to all Member Nations and Associate Members not less than 60 days before the date fixed for the opening of the session.

3.5 The Director-General shall arrange for the draft budget to be considered by the Council not less than 90 days before the date fixed for the opening of the regular session of the Conference.

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.

3.7 The budget for the ensuing financial period shall be adopted by the Conference at its regular session, after due consideration of the estimates.

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

3.9 The Director-General shall prepare supplementary estimates in a form consistent with the estimates for the financial period and shall submit such estimates to the Conference and to the Council. The Council shall review such estimates and report thereon to the Conference.

B In paragraph 4.1 of Regulation IV (Appropriations) the words " for the ensuing first financial year " appearing in the first sub-paragraph shall be replaced by the words " for the ensuing financial period " and the second sub-paragraph shall be deleted.

In the first sentence of paragraph 4.2 of Regulation IV, replace the word " year ' by, the word " period ".

Paragraphs 4.3 to 4.5 are to be replaced by the following texts:

B 4.3 Such portion of appropriations as may be required to meet the outstanding legal obligations as at the last day of the financial period shall remain available for twelve months, at the end of which period any remaining balances shall be credited to Miscellaneous Income of the current financial period. Any obligations remaining a valid claim at that time shall be charged against the appropriations of the current financial period.

O 4.4

(a) Transfers within the same chapter of the budget may be effected by the Director-General who shall report thereon to the Finance Committee.

(b)

(i) Transfers from one chapter of the budget to another relating to expenditures which would not involve additional financial obligations for Member Nations and Associate Members, either current or future, may be effected by the Director-General after having obtained the approval of the Finance Committee or by the Council between sessions of the Finance Committee.

(ii) Transfers from one chapter of the budget to another other than those for which the Finance Committee has authority may be effected by the Director-General after having obtained the approval of the Council.

(c)

(i) 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.

(ii) Any savings which accrue during the operations of a financial period may be transferred by the Director-General to the Contingencies Chapter. The transfer of such savings from Contingencies shall be subject to the approval of the Finance Committee or of the Council as set out in Regulation 4.4 (b).

B 4.5

(a) The Director-General shall so apportion and manage appropriations made for the financial period as to ensure that adequate funds will be available to meet expenditures during the entire financial period, and that the obligations and expenditures follow, in general, the financial plans contemplated by the Program of Work and Budget approved by the Conference. There shall be no concentration of obligations or expenditure in any one calendar year, except as approved by the Conference, and under no circumstance shall any balance accruing during the financial period be used for any purpose which may involve additional obligations for Member Nations and Associate Members in future financial periods for the continuation of such projects or activities.

(b) The Finance Committee shall review annually the Director-General's fund allotment and apportionment controls to determine that they meet adequately the objectives of this regulation.

Regulation V (Provision of Funds) shall be replaced by the following text:

B 5.1 The appropriations for a financial period, subject to related adjustments effected in accordance with Regulation 5.2, shall be financed by annual contributions from Member Nations and Associate Members. 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.

B 5.2 In the assessment of the contributions of Member Nations and Associate Members for each financial period adjustments shall be made in respect of:

(a) estimated Miscellaneous Income of the financial period in respect of which the assessment of contributions is being made;

(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.

B 5.3 For determining the annual contribution of each Member Nation and Associate Member, the assessment of each such Member Nation and Associate Member for the financial period shall be divided into two equal instalments, one of which shall be payable in the first calendar year and the other in the second calendar year of the financial period.

B 5.4 At the beginning of each calendar year the Director-General shall:

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

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

B 5.5 Contributions and advances shall be due and payable in full within 30 days of the receipt of the communication of the Director-General referred to in Regulation 5.4 above, or as of the first day of the calendar year to which they relate, which ever is the later. As of 1 January of the following calendar year, the unpaid balance of such contributions and advances shall be considered to be one year in arrears.

B 5.6 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 financial period, 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 contributions to the Organization 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 calendar year in which the contribution is due or the rate in effect on the day the payment is made, whichever is the higher.

B 5.7 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.

B 5.8 Any nation admitted to membership or any territory or group of territories admitted to associate membership shall pay a contribution to the budget for the financial period in which the membership or associate membership becomes effective. Such contributions shall be 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).

B 5.9 The Council at any of its session may advise the Director-General as to any steps that ought to be taken in order to expedite the payments of contributions. The Council may submit to the Conference such recommendations in this regard as it may consider appropriate.

In paragraph 1 of Regulation VI (Funds), sub-paragraph (b) shall be replaced by the following text:

B (b) Any cash surplus in the General Fund at the close of any financial period shall be allocated among Member Nations in accordance with the Scale of Contributions applicable to that period and, as at 1 January following the year in which the audit of the final accounts of the financial period 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 calendar year following the year in which the audit is completed.

In paragraph 6.2 of Regulation VI, in sub-paragraph (iii) the words " paragraph (i) " to be changed to " sub-paragraph (i)"; sub-paragraph (b) (v) shall be replaced by the following text:

B (v) Any reassessment shall be applied as from the first day of the financial period following the Conference determination and calculated in accordance with the Scale of Contributions of that financial period.

B In paragraph 6.5 (a) of Regulation VI, replace the words " within the next two ensuing financial years " by the words " within the next financial period ".

Paragraph 6.7 shall be replaced by the following text:

O 6.7 Voluntary contributions, whether or not in cash, may be accepted by the Director-General and trust and special funds may be established by him to cover monies made available to the Organization for special purposes, provided that the purposes of such contributions and monies are consistent with the policies, aims and activities of the Organization. The purposes and limits of any trust and special funds shall be clearly defined. The acceptance of any such contributions and monies which directly or indirectly involves additional financial obligations for Member Nations and Associate Members shall require the consent of the Conference. Trust and special funds and voluntary contributions shall be administered in accordance with the Financial Regulations of the Organization, unless otherwise provided for by the Conference, Trust and Special Funds shall b. reported to the Finance Committee.

Paragraph 6.9 shall be replaced by the following text:

B 6.9 There shall be established a Publications Revolving Fund to which shall be credited all proceeds of sales of publications and films. The Fund shall be used only for the following purpose: (it to meet the cost of reprinting those publications and re-issuing those films of the Organization for the sale of which there is a demand; (ii) to promote within a maximum amount determined by the Conference, the sale of publications and lilies of the Organization. Any balance at the end of each financial period in excess of $ 20,000, as shown in the audited accounts of the Fund, shall be transferred to Miscellaneous Income of the financial period during which the audit is completed.

B In sub-paragraph 7.1 (b) of Regulation VII (Other Income), the word " year " shall be replaced by the word " period " and sub-paragraph (c) shall be replaced by the following text:

(c) Advances by Member Nations to the Working Capital Fund or deposits to Trust and Special Funds and other receipts directly related to those funds; and

O Paragraph 7.2 is to be deleted. Paragraphs 7.3 an 7.4 are to be renumbered 7.2 and 7.3.

B Paragraph 7.5 is to be replaced by the following text:

7.4 Miscellaneous Income shall be estimated for each financial period. If the actual Miscellaneous Income for such period either exceeds or is less than the estimate, such excess or suck shortfall shall form a part of the surplus or deficit of that financial period.

O In paragraph 1 of Regulation VIII (Custody of Funds), replace the word " Council '' at the end of the paragraph by the words " Finance Committee ".

Paragraph 9.1 of Regulation IX (Investment of Funds) is to be replaced by the following text:

O 9.1 The Director-General may make short-term investments of mantes not needed for immediate requirements. The Director-General may make long-term investments of monies standing to the credit of trust, reserve or special funds as may be provided by the Conference of the Council in respect of each fund. The Director-General shall report to the Finance Committee periodically on any such investments.

Paragraph 9.2 of Regulation IX is to be deleted and paragraph 9.3 is to be renumbered 9.2.

O In paragraph 10.1 (a) of Regulation X (Internal Control), the words " the Committee on Financial Control " are to be replaced by the words " Finance Committee ".

Paragraph 10.3 of Regulation X is to be replaced by the following text:

O 10.3 The Director-General may, under exceptional circumstances, make such ex gratia payments as he deems necessary in the interests of the Organization and shall report thereon to the following session of the Finance Committee.

Paragraph 10.5 of Regulation X is to be replaced by the following text:

B 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, provided that a statement of all such amounts written off shall be submitted to the auditors with the interim or final accounts.

The first part of paragraph 11.1 of Regulation XI (The Accounts) is to be replaced by the following text:

B 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 financial period. Both the interim and final accounts shall show:

Paragraph 11.2 of Regulation XI is to be replaced by the following text:

B 11.2 The accounts of the Organization shall be presented in U.S. dollars. 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 interim or final accounts information on currency collection and utilization.

O In the first sentence of paragraph 11.4 of Regulation XI, replace the words " the Committee on Financial Control " by the words " the Finance Committee ".

Paragraph 11.5 of Regulation X1 shall be replaced by the following text:

B 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 that calendar year.

B 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.

O In the first sentence of paragraph 12.1 of Regulation XII (External Audit) replace the word ''Conference " by the word " Council " and the word " Council " in sub-paragraphs (a) and (b) by the words " Finance Committee " and delete sub-paragraph (c) as well as the last two sentences of paragraph 12.1.

The first sentence of paragraph 12.2 of Regulation XII shall be replaced by the following text:

O 12.2 After consultation with the Finance Committee relative to the scope of the audit, the external auditor shall perform such an audit as he deems necessary to certify:

O Throughout Regulation XII, all phrases relating to the " Auditor " shall be put in the singular.

O In paragraph 12.3 of Regulation XII, the word " Conference " shall be replaced by the words " Finance Committee ".

O Paragraph 12.4 of Regulation XII shall be replaced by the following text:

12.4 The auditor may affirm by test the reliability of the internal audit and may make such reports with respect thereto as he may deem necessary, to the Finance Committee, the Council, the Conference or to the Director-General.

Paragraph 12.8 of Regulation XII shall be replaced by the following text:

OB 12.8 The auditor shall prepare a report on the interim and on the final accounts certified and on any matters on which the Finance Committee, the Council or the Conference may from time to time give specific instructions.

Paragraph 12.9 of Regulation XII shall be replaced by the following text:

OB 12.9 The auditor shall submit his report on the interim accounts to the Finance Committee not later than 1 May following the end of the calendar year to which the accounts relate. The Finance Committee shall examine the accounts and the auditor's report thereon and if deemed advisable by the Committee shall forward them to the Council with their comments.

OB 12.10 The auditor shall submit hi, report on the final accounts to the Conference to be made available to the Finance Committee not later than 1 May following the end of the financial period to which the accounts relate. The Finance Committee shall consider and approve the final report. except for matters involving policy issues, which it shall refer to the Council.

OB 12.11 If deemed advisable the auditor may be present when his report is considered.

O In paragraph 1 of Regulation XI: (General Provisions), replace the words " financial year " into " financial period "; in paragraph 2 of the same Regulation replace the words " Rules of Procedure of the Organization (see Rule XXXIV) " by the words "Rules adopted by the Conference (see Rule XXXIX".

O Regulation XVI (Special Provision), shall foe deleted.

SUGGESTED AMENDMENTS TO RULES OF PROCEDURE FOR THE COUNCIL OF FAO

O In paragraph 2 of Rule I (Officers of the Council), replace the words " Rules of Procedure of the Organization " by the words " Rules adopted by the Conference ".

O In paragraph 1 of Rule 11 (Sessions), replace the words " Rule XXV, paragraph 1 " by the words " Rule XXVI of the Rules adopted by the Conference ".

O In the footnote (1), replace the words " Rules of Procedure " where they appear for the first time by the words " Rules adopted by the Conference ".

E Replace paragraph 1 of Rule IV (Voting) by the following text:

1. Voting in the Council shall he conducted in accordance with Rule XII of the Rules adopted by the Conference.

E Delete paragraphs 3, 4 and 5 of Rule IV.

O Delete paragraph 2 of Rule V.

O In paragraph 1 of Rule VI, change "meetings to the Council" to "meetings of the Council ".

O In paragraph 2 of Rule VI, change " resolutions, recommendations, conventions or agreements, regulations or supplementary agreements and other formal decisions " into " resolutions, recommendations, agreements, supplementary conventions or agreements, and of other formal decisions ".

O In paragraph 1 of Rule VII (Expenses), replace the words "Committee on Financial Control " by the words " Finance Committee ".

O Delete Rule VIII (Functions of the Committee on Financial Control).

O Renumber Rule IX (Amendment of Rule) as Rule VIII and in paragraph 1 replace the words "Rules of Procedure of the Organization " by the words "Rules adopted by the Conference ".

--
O :see Resolution 37/57 on the Organizational Structure of FAO.

E :see Resolution 38/57 on Method of Election.

C :see Resolution 46/57 on Conventions and Agreements, Constituent Rules of Commissions and Committees.

B :see Resolution 57/57 on Biennial Budgeting.

Contents -