This document should be read in conjunction with the draft report of the United Nations Board of Auditors (FCCC/SBI/2006/14) and the financial statements for the biennium 2004–2005 (FCCC/SBI/2006/14/Add.2). It has been prepared to provide the Subsidiary Body for Implementation with comments by the secretariat on the recommendations made by the Board and an account of the initial actions taken to implement the recommendations. Some of the recommendations had already been implemented by the time this report was prepared, whereas others will require the establishment of processes for the preparation of future financial statements and reports which should be maintained in conjunction with the United Nations Headquarters.