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Administrative and financial matters

At its first session (see decision 15/CP.1), the COP established the financial procedures of the Convention as well as four trust funds, namely:
  • The Special Trust Fund for the Core Administrative Budget of the UNFCCC (the "core budget";
  • The Special Trust Fund for Facilitating Participation of Parties in the UNFCCC Process (the "participation fund");
  • The Special Trust Fund for the Voluntary Supplementary Financing of the approved activities under the UNFCCC (the  "trust fund for supplementary activities");
  • The Special Trust Fund for the Host Country Contribution to the UNFCCC (the "Bonn Fund").

The core budget is funded by indicative contributions from all Parties, based on the United Nations scale of assessment. The financial procedures also call for Parties to make voluntary contributions to the core budget, the participation fund, and the fund for supplementary activities.

Every two years, the Executive Secretary proposes a programme budget to the SBI, setting out proposed activities of the secretariat for the coming biennium and the funds needed to cover these. The SBI considers the proposal, and forwards a recommended programme budget to the COP for its approval. The financial procedures also require the Executive Secretary to provide interim and final reports on the allocation of funds and on their use.

Latest developments

For the current biennium 2000-2001, COP 5 approved an expenditure of US$ 14,365,900 for 2000 and US$ 13,522,200 for 2001, out of which US$ 22,564,400 is expected to come from indicative contributions, and the rest to be drawn from carry-overs from previous financial periods.

At SBI 13 part I (Lyon, Sept), Parties considered an initial draft decision, prepared at SBI 12, on possible options for responding to the late payment of financial contributions. However, they decided to defer recommending a decision on this matter until SBI 13 part II in The Hague in November.

Parties also considered the audited financial statements for the biennium 1998-1999 and the report of the United Nations Board of Auditors on those statements, along with an interim report by the Executive Secretary on income and budget performance for the biennium 2000-2001, as of 30 June 2000. Agreement was reached to recommend a draft decision on these issues for adoption at COP 6 (see FCCC/CP/2000/1/Add.1). In addition to taking note of the above-mentioned reports, the draft decision invites the SBI to start discussions on the programme budget for 2002-2003. The aim is for SBI 14 (May/June 2001) to recommend a programme budget to be adopted at COP 7 (Oct/Nov 2001)

Next steps

Parties will continue their discussions on how to respond to the late payment of contributions at SBI 13 part II, with the aim of forwarding a draft decision to COP 6.

Parties will also launch discussions at SBI 13 part II on the programme budget for the biennium 2002-2003.
COP 6 is expected to formally adopt the draft decision agreed at SBI 13 part I on the audited financial statements, income and budget performance and other financial and administrative matters.

Documents prepared for the upcoming session
COP 6 provisional agenda and annotations. Addendum (contains text of draft decision)
Relevant COP decisions and key SBI conclusions
Decision 20/CP.5 Programme budget for the biennium 2000-2001
Decision 21/CP.5 Income and budget performance in the biennium 1998-1999 and arrangements for administrative support to the Convention
Decision 15/CP.3 Programme budget for the biennium 1998-1999
Decision 17/CP.1 Adoption of the Convention budget for the biennium 1996-1997
Decision 15/CP.1 Financial procedures of the Convention
SBI 12 report paras. 47 and 51 and Annex I (containing a draft decision on the late payment of contributions)
Key documents prepared for earlier sessions
SBI 13, part I
FCCC/SBI/2000/8 Financial performance, 1998-1999 and interim report for 2000. Note by the Executive Secretary
FCCC/SBI/2000/9 Audited financial statement for the biennium 1998-1999 and report of the Board of Auditors. Note by the Executive Secretary
Status of contributions
SBI 12
FCCC/SBI/2000/2 Late payment of contributions: response options. Note by the Executive Secretary
This agenda item is supported by the Financial Management and Administration Sub-Programme


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