1.1 These regulations shall govern the financial administration of the Food and Agriculture Organization of the United Nations.

2.1 The financial year shall be the calendar year.

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

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

3.3 The annual budget estimates shall be divided into parts, chapters, and articles (items) and 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.

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 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 annual budgets 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, which may contain alternative estimates, shall be transmitted to all Member Nations at the same time as the estimates.

3.7 The budgets for the ensuing two years shall be adopted by the Conference at its regular session, after due consideration of the estimates.

3.8 Supplementary estimates to cover unforeseen and extraordinary expenses in accordance with regulation 6.3 (b) 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 annual estimates and shall submit such estimates to the Conference and to the Council The Council shall review such estimates and report thereon to the Conference

4.1

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 surrendered.

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 twelve months following the end of that year.

4.4 At the end of the twelve-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.

4.5 Notwithstanding the provisions of Regulation 4.2, the Conference may authorize the carry-over of credits in appropriations voted for meetings of the Conference

4.6

5.1 The appropriations, subject to the adjustments affected in accordance with Regulation 5 2, shall be financed by contributions from Member Nations, according to the scale of contributions determined by the Conference Pending the receipt of such contributions, the appropriations may be financed from the Working Capital Fund.

5.2 In the assessment of the contributions of Member Nations, adjustments shall be made to the amount of the appropriations approved by the Conference for the following financial year in respect of sup. Elementary appropriations for which contributions have not previously been assessed on the Member Nations.

5.3 As soon as possible after the Conference has voted the appropriations and determined the amount of the Working Capital Fund, the Director-General shall:

5.4 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 5.3 above, or as of the first day of the financial year to which they relate, whichever is the later. As of 1 January of the following Financial year, the unpaid balance of such contributions and advances shall be considered to be one year in arrears.

5.5 Annual contributions to the budget shall be assessed in U.S. dollars. In 1951, contributions shall be payable in U.S. dollars.

5.6 Advances the Working Capital Fund shall be payable in U.S. dollars.

5.7 Obligations of Member Nations, including arrears of contribution, shall remain payable in the currency of contribution of the year in which they were due.

5.8 Any nation admitted to membership in the Organization shall pay a contribution to the budget for the financial year in which the membership becomes effective. Such contribution shall be in an amount equivalent to the remaining portions of its assessment for the year, prorated on a quarterly basis, beginning with the quarter in which the instrument of acceptance was deposited, and computed on its percentage share of the scale of contributions. All new Member Nations shall be required to make advances to the Working Capital Fund in accordance with Regulation 6.2 (b).

5.9 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.

6.1 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, Miscellaneous Income, and any advances made from the Working Capital Fund to finance general expenditures shall be credited to the General Fund.

6.2

6.3

6.4

6.5

6.6

6.7 Subject to later approval by the Council and the Conference Trust and Special Funds may be estate fished by the Director-General to cover monies made available to the Organization for special purposes.

6.8 Reserve funds may be established by tin, Conference.

7.1 All receipts other than:

7.2 Voluntary contributions, whether or not in cash, may be accepted by the Director-General provided that the purposes for which the contribution its made are consistent with the policies, aims, and activities of the Organization, and provided that the acceptance of any such contributions which directly or indirectly involves additional financial liability for the Organization shall require the consent of the Conference or, between sessions of the Conference of the Council.

7.3 Monies accepted for purposes specified by the donor shall be treated as Trust or Special funds under Regulation 6.7.

7.4 Monies accepted in respect of which no purpose is specified shall be treated as Miscellaneous Income and reported as " Gifts " in the accounts of the General Fund.

8.1 The Director-General shall designate the bank or banks in which the funds of the Organization shall be kept and report all such depositories to the Council.

9.1 The Director-General may make short-term invest meets of monies not needed for immediate requirements and shall inform the Council periodically of any such investments which he has made.

9.2 The Director-General may make long-term invest meets of monies standing to the credit of Trust, Reserve, or Special Funds, as may be provided by the Conference or the Council in respect of each Fund.

9.3 The Director-General may, wherever practicable, seek the advice of the United Nations Investments committee on such investments.

10.1 The Director-General shall

10.2 No obligations shall be incurred until allotments or other appropriate authorizations have been made in writing under the authority of the Director-General.

10.3 The Director-General may, under exceptional circumstances, make such ex gratia payments as he deems necessary in the interests of the Organization, provided that a statement of such payments shall be submitted to the Conference with the annual accounts.

10.4 The Director-General shall make suitable arrangements under which the Organization will be protected against loss on account of the conduct of officials who may be entrusted by him with the custody and disbursement of funds of the Organization.

10.5 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.

10.6 Tenders for 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.

11.1 The Director-General shall maintain such accounts as are necessary and shall prepare annual recounts, showing for the financial year to which they relate,

He shall also give such other information as may be appropriate to indicate the current financial position of the Organization.

11.2 The statement of accounts of the Organization shall bepresented in U. El. dollars, provided how ever 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 boors of account may be kept in such currency or currencies as the Director-General may deem necessary.

11.3 Appropriate separate accounts shall be m maintained for all Trust, Reserve, and other Special Funds.

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

11.5 The annual accounts shall be submitted by the Director-General to the external auditor(s) by 31 March following the end of the financial year.

12.1 Having regard to the Joint System for External Audit of the United Nations and Specialized Agencies, the Conference

The Council, may appoint or fill vacancies as required where auditor(s) appointed by the Conference are unable to act, and may employ auditors without authority from the Conference for any special task of an urgent nature. Auditor(s) appointed under the authority of the Conference may be removed only by the Conference

12.2 After consultation with the Council, relative to the scope of the audit, the external auditor(s) shall perform such an audit as they deem necessary to certify

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 and may proceed to such detailed examination and verifications as it chooses of all financial records, including those relating to supplies and equipment. The auditor(s) may engage commercial auditors of international repute.

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

12.5 The 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 as confidential, and which is required for the purpose of the audit, shall be made available on application to the Director, Administrative Division.

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 controls, and in general, the financial con sequences of administrative practices. In no ease however, shall the auditor(s) include criticism in their audit report without first affording the secretariat an opportunity of explanation to the auditor(s) of the matter under observation. Audit objections to ally item in the accounts shall be immediately communicated to the Director, Administrative Division.

12.7 The auditor(s) shall have no power to disallow items in the accounts, but shall draw to the attention of the Director-General for appropriate action any transaction concerning which they entertain doubt as to legality or propriety.

12.8 The auditor(s) shall prepare a report on the accounts certified and on any matters on which the Conference may from time to time give specific instructions.

12.9 The auditor(s) shall submit their report to the Conference, to be made available to the Council not later than 1 May following the end of the financial year to which the accounts relate. The Council, shall forward to the Conference its comments, if any, on the audit report. If deemed advisable by the Council, the auditor(s) shall be present when the audit report is considered by the Conference.

13.1 Before taking any decision involving expenditures, the Council, or any commission or committee appointed by the Council or the Conference shall have before it a report from the Director-General on the administrative and financial implication of the proposals.

14.1 The Director-General may delegate to other officers of the Organization such of his powers as he considers necessary for the effective implementation of these Regulations.

15.1 These Regulations shall beeffective from the begin fling of the financial year following their approval by the Conference.

15.2 These Regulations may be amended by the Conference in the same manner as provided for amendments of the Rules of Procedure of the Organization (see Rule XXXIV ).

16.1 To assist the Council, in performing its duties of financial control, as provided for in Rule XXVI, paragraph 1 (e) (iii), the Council, shall establish at its last meeting prior to the close of each financial year a Committee on Financial Control, consisting of not more than five members, to serve for a term not exceeding the next financial year under such conditions as may be established in the Rules of the Council, The Committee shall be composed of a chairman selected from among the persons indicated to represent their governments on the Council, and four persons in the government service of Member Nations selected for their special competence in financial administration. Any vacancy occurring during the term of office of a member shall, if possible, be filled by another person in the government service of the same Nation. No two members of this Committee shall beof the same nationality. Members of the Committee on Financial Control shall be eligible for reappointment, provided that at least one new member shall be elected each year when the Committee is established. The Committee on Financial Control shall adopt its own Rules of Procedure.

16.2 The Council may delegate to the Committee on Financial Control such specific financial and related functions as it may determine. The delegation of quell functions shall be incorporated in the Rules of Procedure of the Council.

16.3 In performing its duties of financial control, the Council shall consult with and obtain reports from the Committee on Financial Control.

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

1. The external auditor shall be appointed by the Assembly of each Organization and may not be removed except by the Assembly.

2. The external auditor shall report to the Assembly, and shall be present when his report is being considered by the Assembly.

3. The external auditor shall perform such an audit as to certify

4. The external auditor shall not be restricted in any way in carrying out the audit.

5. The external auditor shall be free to see any of the books and records of the Organization necessary for the performance of his audit. Confidential information required by him for the purposes of his audit shall be made available to him on application to the official designated by the administrative head of the Organization. He shall use discretion in his treatment of confidential information.

6. In the performance of the audit, the external auditor shall be the sole judge as to the acceptance in whole or in part of certifications by the administration and may proceed to such detailed examination and verification as he chooses, including the physical verification of stocks.

7. The external auditor may affirm by test the reliability of the internal audit, and he may report to the administrative head of the Organization and the Assembly on the efficiency of the internal audit.

8. Notwithstanding that the accounts as such may be correct, the external auditor shall be entitled to report on the efficiency and economy of operations of the Organization, but not including general policy matters. He may comment upon financial procedure, the accounting system, internal financial control, and the financial consequences of administrative procedure.

9. In no ease, however, shall the auditor include criticism in 0a audit report without first affording the administration an opportunity of explaining to him the matter under observation. Audit objections to any item arising during the examination of the accounts shall be immediately communicated to the administration.

1. In principle there should be a panel of external auditors of the United Nations and the specialized agencies composed of persons having the rank of auditor-general (or its equivalent in the various Member States).

2. Such a panel should consist of the auditors appointed by the United Nations and the specialized agencies chosen by common consent for a period of three years in such a manner that the members of the panel would not exceed six in number, and bearing in mind the location of the specialized agencies, the ability of the governmental audit staffs to undertake the total audit load within the appropriate time limits, and the desirability of securing continuity of audit.

3. Each Organization should select one or more members of the panel to perform its audit. Payments of salaries, fees, or honoraria should be a matter for settlement between the parties directly concerned.

4. Each auditor (or the auditors) performing an audit should sign his (or their own) report or reports.

5. Members of the panel selected to perform the audit should he requested to take appropriate steps, in particular by meeting together annually, to co-ordinate their audits and to exchange information on methods and findings. The panel of auditors should be invited to submit from time to time any observations or recommendations which it might wish to make on the co-ordination and standardization of the accounts and financial procedures of the United Nations and the specialized agencies.

6. Cost of the annual meetings of active members of the panel should be borne by the participating Organization.