FC 109/8

Finance Committee

I. BACKGROUND

1. At its 120th Session in June 2001, upon the recommendation of the Finance Committee, the Council appointed the Comptroller and Auditor General of India as External Auditor of the Organization for a period of four years commencing with the year 2002.

2. During its 107^th Session in May 2004, the Finance Committee considered a paper it had requested regarding the advantages and disadvantages of limiting the term of office of the External Auditor (FC 107/11). In this session the Committee confirmed the appropriateness of the External Auditor being appointed for a period of four years (two biennia) with possible extension for a further two year period (one biennium), following which the contract for external audit must be re-tendered.

II. POSSIBLE ACTION BY THE COMMITTEE

3. The original appointment of the incumbent External Auditor for four years, commencing with the year 2002, expires at the end of the current biennium. In line with the policy confirmed during its 107^th Session, the Committee is now invited to consider whether the appointment of the Comptroller and Auditor General of India as External Auditor of the Organization should be extended for a further two year period, commencing with the year 2006.

4. In the case in which the Committee decides to recommend an extension of the appointment, it may wish to propose the following resolution to the Council.

Draft Resolution for the Council

EXTENSION OF THE APPOINTMENT OF THE EXTERNAL AUDITOR

The Council

Noting that the current appointment of the External Auditor expires at the end of 2005 and that the Finance Committee recommends the extension of the appointment of the Comptroller and Auditor General of India as External Auditor of the Organization for a further two years;

Decides to appoint the Comptroller and Auditor General of India as External Auditor of the Organization for a further period of two years commencing with the year 2006.