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26 May 2013

INTERNATIONAL RENEWABLE ENERGY AGENCY

Fifth meeting of the Council

Abu Dhabi, 24 – 25 June 2013

Proposed revisions to the

Interim Financial Regulations of IRENA

I. Introduction

1. In its decision A/3/DC/12 on IRENA Programmatic and Budgetary Cycle, the

Assembly approved the biennial work programme and budgetary cycle, effective

2014-2015 as the first biennium. It further requested the Director-General to submit

amended Interim Financial Regulations to the Assembly for its consideration and

adoption at its fourth session.

2. The present report contains proposed revisions to the Interim Financial Regulations of

IRENA, to address the changes resulting from the change of the programmatic and

budgetary cycle. Furthermore, the Director-General proposes additional amendments

to the Interim Financial Regulations to align them with international best practices

and enhance compliance with the International Public Sector Accounting Standards

(IPSAS). Additional changes are also proposed to reflect the Assembly decisions

made on specific issues since the Interim Financial Regulations were promulgated,

and to make editorial corrections.

3. The proposed revisions to the Interim Financial Regulations, contained in Annex I,

are submitted to the Council for its consideration and recommendation to the

Assembly. For ease of reference, they are presented alongside the current Financial

Regulations, and include explanations on the proposed revisions.

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II. Categories of proposed revisions to the Interim Financial Regulations

4. The amendments proposed to the Interim Financial Regulations fall into three

categories: biennium, IPSAS, and other changes. The category into which each

proposed change falls is also captured in the “explanation” column of Annex I.

1. Biennium budgetary cycle related changes

5. Financial and budget period. Current Financial Regulations define budget as “the

annual budget adopted by the Assembly indicating estimated resources and

expenditures for a financial period”, and Regulation 2.1 defines this financial period

to be one calendar year. The biennium budgetary cycle consists of two calendar years;

however, IPSAS requires annual financial statements and therefore necessitates a

distinction between a “financial period” a “budget period”. Accordingly, the proposed

revisions include amendments to all references to a financial period to refer to either

budget period or financial period, depending on the context. Further, in addition to the

current definition of a “financial period” in Regulation 2.1, a separate definition of a

“budget period” is proposed in new Regulation 2.2.

6. Assessments and cash surplus. While the work programme and budget would be

approved for a biennium, the contributions of Members will continue to be assessed

annually, in accordance with assessed contributions modalities defined in current

Financial Regulations 6.1, 6.2 and 6.3. In the biennial budgetary cycle, annual

assessments will approximate half of the biennium appropriations approved by the

Assembly, taking into consideration the timing of multi-year project implementation.

Furthermore, the cash surplus of the biennium will be reflected in the audited

Financial Statements for the second year of the biennium and will be apportioned

among Members consistent with Financial Regulation 4.5. Accordingly, appropriate

changes are being proposed under Regulation 4.5 as well as to regulations under

Article 6. The introduction of a biennial cycle will not impact financial reporting

requirements under IPSAS, since the Director-General will remain responsible for

submitting the annual financial statements of each financial period to the External

Auditors for annual audit as per Financial Regulation 12.1.

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2. IPSAS related changes

7. The present Financial Regulations were largely based on financial regulations used by

international organizations under the United Nations common system. These

regulations were based on cash/modified accrual basis of accounting practiced by

most international organizations at the time of IRENA’s establishment. However,

most of the international organizations have now moved to full compliance with

IPSAS, which are accrual basis accounting standards. IPSAS are a set of accounting

standards issued by the IPSAS Board for use by public sector entities around the

world in the preparation of financial statements. While IRENA has consistently

applied IPSAS since its establishment, revisions to some of the current Financial

Regulations are necessary to bring them in line with international best practices as

explained below:

8. IPSAS revenue. Under cash/modified accrual basis accounting standards, income is

generally recognized when cash is received, except for contributions. Under IPSAS,

“revenue” refers to the inflow of any economic benefit or service potential that results

in an increase in net assets, and is recognized in the financial statements of the period

in which the transaction occurs and not when cash or its equivalent is received. As

IPSAS does not affect the basis of budgeting, the proposed revisions retains the term

“income” for budgeting purposes, while “revenue” replaces “income” for financial

statement purposes.

9. IPSAS expense. Under cash/modified accrual basis accounting standards, the term

“expenditure” is used to refer to the sum of disbursements and unliquidated

obligations. Under IPSAS, “expense” refers to a decrease in economic benefit or

service potential that results in a decrease in net assets. Further, “expense” is

recognized when goods or services are received and not when cash or its equivalent is

paid. It thus includes not only the disbursements for goods and services received but

also “accrued” expenses; that is, expenses legally payable since goods and services

have already been received, even if disbursements have not happened. Further, under

IPSAS, expenses also include the use or consumption of assets (for example,

depreciation) or the incurring of liabilities (for example, employee benefits) that result

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in a decrease in net assets. Accordingly, in the proposed revision to the Interim

Financial Regulations the term “expenditure” is retained for budgeting purposes,

while the term “expense” replaces “expenditure” for financial statement purposes.

10. IPSAS commitment. The term “obligation” refers to amounts of orders placed,

contracts awarded, services received and other transactions that involve a charge

against the resources of the current financial period and would require payment during

the same or a future financial period. However, under IPSAS the term “obligation”

applies to legal and constructive obligations, therefore the terms “obligation” and

“unliquidated obligation” are replaced with the term “commitment”. The current use

of the term “commitment” does not require revision and is therefore retained.

11. IPSAS property, plant and equipment, inventory and intangible assets. Under

cash/modified accrual basis accounting standards, the term “non-expendable

property” is used to refer to assets purchased but treated as expenditure in the

financial statements. Under IPSAS, the Organization must account differently for

many types of capital expenses and also present information about the assets acquired

through such expenses in the financial statements. For example, assets have to be

classified and presented under several categories, such as “property, plant and

equipment”, “investment property”, “intangible assets” and “inventories”. Accounting

for assets also includes depreciation/amortisation and impairment (reduction in

value/service/potential). Accordingly, changes are proposed to the existing Interim

Financial Regulations to replace the current terminology with IPSAS terminology in

Regulation 13.7.

12. IPSAS financial statements. Financial statements based on the cash/modified accrual

basis accounting standards include a statement of income, expenditures and changes

in reserves and fund balances; a statement of assets, liabilities, reserves and fund

balances; a statement of cash flows; a number of schedules which include additional

detailed information; and notes to the financial statements. However, IPSAS

prescribes that financial statements include a statement of financial position; a

statement of financial performance; a statement of changes in net assets/equity; a

statement of cash flows; a statement of comparison of budget and actual amounts on

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the basis of the budget; and notes to the financial statements, comprising a summary

of significant accounting policies and other explanatory notes. Revisions are therefore

proposed to reflect the new names of the financial statements that are required under

IPSAS. References to “accounts” are replaced by “financial statements” when

collectively referring to the statements above, however the term “accounts” is retained

for all references in the budgetary context.

13. Reclassification of miscellaneous income. Under cash/modified accrual basis

accounting standards, there are several categories of income that are classified as

miscellaneous income and are used to offset Members’ assessments. IPSAS has

stricter requirements about classification of miscellaneous income, especially when

such amounts are important to the understanding of the financial statements.

Therefore, amounts that are classified as miscellaneous income under cash/modified

accrual basis accounting standards are reclassified into different revenue categories

under IPSAS. Revisions proposed under new regulation 6.3 reflect these categories in

order to clarify the revenue returned as credits to Members under the new categories

of other revenue to include: (a) revenue-producing activities; (b) investment revenue;

(c) services rendered; (d) contributions from new Members in accordance with

regulation 6.4; (e) other/miscellaneous revenue; and (f) any other revenue attributable

to Members. Furthermore, it is proposed to delete the current regulation 8.1 which has

an obsolete definition of miscellaneous income.

3. Other changes

14. Removal of “Interim” from the title of the Interim Financial Regulations. At the

time of promulgation of the current Financial Regulations, the Members were still in

the process of deciding on the selection of external auditor for the Agency. In order

to ensure that the Agency had the regulatory framework for its financial management,

the Members decided to promulgate the Financial Regulations on an interim basis

until such time the audit deliberations have been completed. As the necessary

arrangements are now in place, it is proposed that the Financial Regulations are no

longer considered “interim”, and that the reference be removed from the title.

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15. Working Capital Fund (WCF). The current Financial Regulations refer to

Members’ commitments in respect of their annual contributions, but omits

commitments related to advances to WCF. It is proposed to include such references in

Regulation 6.6.

16. Other changes. A few editorial changes are made for consistency and clarity as well

as numbering of regulations due to proposed changes.

III. Implementation of the revised Financial Regulations and Procedures

17. Once the proposed revision to the Interim Financial Regulations are reviewed by the

Council and based on its recommendations, the Director-General will amend the

Financial Procedures and report on them to the Council at its sixth session.

18. The Council might wish to recommend to the Assembly to approve the proposed

revised Financial Regulations of IRENA with effect from 1 January 2014 as set out in

the present report.

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ANNEX

Proposed financial regulation Existing financial regulation Explanation

FINANCIAL REGULATIONS FOR THE INTERIM FINANCIAL REGULATIONS FOR THE

Other Changes: Removed “Interim”



No change.

Article 1 Article 1 No change.

SCOPE AND DEFINITIONS SCOPE AND DEFINITIONS No change.

Regulation 1.1 Regulation 1.1 No change.

Scope Scope No change.

These regulations shall govern the financial administration of the International Renewable Energy Agency.

These regulations shall govern the financial administration of the International Renewable Energy Agency.

No change.


Definitions Definitions No change.

For the purpose of these regulations the following definitions shall apply:

For the purpose of these regulations the following definitions shall apply:

No change.

1. “Statute” means the Statute of the International Renewable Energy Agency;

1. “Statute” means the Statute of the International Renewable Energy Agency;

No change.

2. “Agency” means the International Renewable Energy Agency;

2. “Agency” means the International Renewable Energy Agency;

No change.

3. “Assembly” means the supreme organ of the Agency as set out in Article IX of the Statute;

3. “Assembly” means the supreme organ of the Agency as set out in Article IX of the Statute;

No change.

4. “Council” means the Council of the Agency as set out in Article X of the Statute;

4. “Council” means the Council of the Agency as set out in Article X of the Statute;

No change.

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5. “Secretariat” means the Secretariat of the Agency as set out in Article XI of the Statute;

5. “Secretariat” means the Secretariat of the Agency as set out in Article XI of the Statute;

No change.

6. “Member” means any Member of the Agency according to Article VI of the Statute;

6. “Member” means any Member of the Agency according to Article VI of the Statute;

No change.

7. “Appropriations” mean the aggregate of the expenditure authorisations approved by the Assembly for the regular budget of the Agency for a financial period against which expenditures may be incurred for purposes approved by the Assembly;

7. “Appropriations” mean the aggregate of the expenditure authorisations approved by the Assembly for the regular budget of the Agency for a financial period against which expenditures may be incurred for purposes approved by the Assembly;

No change.

8. “Budget” shall mean the biennial budget adopted by the Assembly indicating estimated resources and expenditures for two consecutive financial periods;

8. “Budget” shall mean the annual budget adopted by the Assembly indicating estimated resources and expenditures for a financial period;

Biennium: Defined biennial budget instead of annual budget.

9. “Contribution” shall mean a donation made in accordance with the procedures set out in these regulations and in the Financial Procedures;

9. “Contribution” shall mean a donation made in accordance with the procedures set out in these regulations and in the Financial Procedures;

No change.

10. “Ex gratia payment” shall mean a payment where there is no legal liability but where payment is justifiable in light of the circumstances;

10. “Ex gratia payment” shall mean a payment where there is no legal liability but where payment is justifiable in light of the circumstances;

No change.

11. “Financial Regulations” means the Financial Rules referred to in Article IX paragraph G (3) of the Statute;

11. “Financial Regulations” means the Financial Rules referred to in Article IX paragraph G (3) of the Statute;

No change.

12. “Commitment” means a written commitment of monies against an allotment for which expenditure authority has been granted;

12. “Obligation” means a written commitment of monies resulting in a liability against an allotment for which expenditure authority has been granted;

IPSAS: Defined term “Commitment” instead of “Obligation”.

13. “Programmes” means a major sub-division of the appropriations;

13. “Programmes” means a major sub-division of the appropriations;

No change.

14. “Short-term investments” are investments for 14. “Short-term investments” are investments for No change.

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a period not exceeding twelve months; a period not exceeding twelve months;

15. “Open commitment” means a commitment, or that portion of a commitment, for which goods or services are not yet delivered;

15. “Unliquidated obligation” means an obligation, or that portion of an obligation, which is not yet paid;

IPSAS: Defined term Revised to conform with replacement of “obligation” with “commitment”

16. “Working Capital Fund” means the fund established to ensure continuity of operations in the event of a cash shortfall.

16. “Working Capital Fund” means the fund established to ensure continuity of operations in the event of a budgetary shortfall.

No change.


FINANCIAL AND BUDGET PERIODS FINANCIAL PERIOD Biennium: Extended title to include budget period.


The financial period shall be one calendar year. The financial period shall be one calendar year. No change.

Regulation 2.2 Biennium: Added title.

The budget period for the proposed programme of work shall consist of two consecutive calendar years the first of which shall be an even year.

Biennium: Defined “budget period”.


BUDGET BUDGET No change.


Preparation and submission Preparation and submission No change.

The Director-General, in the second year of the budget period, shall prepare a draft programme of work and a draft budget for the following budget period. The draft programme of work and the draft budget shall be made available to the Council at least 30 calendar days prior to the opening date of the Council meeting at which the budget is to be considered. The Council shall either forward the draft budget to the Assembly

For each financial period, the Director-General shall prepare a draft programme of work and a draft budget. The draft programme of work and the draft budget shall be made available to the Council at least 30 calendar days prior to the opening date of the Council meeting at which the budget is to be considered. The Council shall either forward the draft budget to the Assembly with a recommendation for approval or return it

Biennium: Adaptation to the biennial budget cycle and replacing financial period with budget period.

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with a recommendation for approval or return it to the Secretariat for review and re-submission to the Council, in which case the 30-day requirement referred to above shall not apply. The Council should transmit its comments and recommendations on the draft programme of work and the draft budget to the Assembly at least 30 days prior to the opening of the Assembly session.

to the Secretariat for review and re-submission to the Council, in which case the 30-day requirement referred to above shall not apply. The Council should transmit its comments and recommendations on the draft programme of work and the draft budget to the Assembly at least 30 days prior to the opening of the annual Assembly session.


Form of the Budget Form of the Budget No change.

(a) The draft budget shall cover income and expenditures for the budget period to which it relates.

(a) The draft budget shall cover income and expenditures for the financial period to which it relates.

Biennium: “Financial period” replaced with “budget period”.

(b) The draft budget shall be divided into programmes and sub-programmes. Sub-programme narratives shall set out objectives and expected accomplishments.

(b) The draft budget shall be divided into programmes and sub-programmes. Sub-programme narratives shall set out objectives and expected accomplishments.

No change.

(c) The draft budget shall give an overview of past and planned activities of the Secretariat and indicate priorities. It shall be accompanied by such information, annexes and explanatory statements as may be requested by the Assembly or Council or as the Director-General may deem necessary, including details on the changes from the previous budget period.

(c) The draft budget shall give an overview of past and planned activities of the Secretariat and indicate priorities. It shall be accompanied by such information, annexes and explanatory statements as may be requested by the Assembly or Council or as the Director-General may deem necessary, including details on the changes from the budget of the previous financial period.

Biennium: “Financial period” replaced with “budget period”.


Currency Currency No change.

The budget shall be presented in United States The budget shall be presented in United States No change.

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dollars. dollars.


Adoption Adoption No change.

The budget shall be adopted by consensus in accordance with Article IX, paragraph G (2) of the Statute.

The budget shall be adopted by consensus in accordance with Article IX, paragraph G (2) of the Statute.

No change.


Supplementary budget Supplementary budget No change.

The Assembly may adopt a supplementary budget for the budget period. The Director-General shall submit a supplementary budget whenever requested by the Council or where the Director-General determines, after careful examination of available resources for their possible reallocation (and taking into account regulation 4.6 concerning the transfer of funds) that there is an urgent and unforeseen need for supplementary resources to support activities that could not have been envisaged at the time the initial budget was proposed or in respect to decisions taken by the Assembly. Such supplementary budgets shall be prepared and acted upon in a form and manner consistent with the regular budget for the budget period except that they need not to be considered and adopted at a regular session of the Assembly.

The Assembly may adopt a supplementary budget for the financial period. The Director-General shall submit a supplementary budget whenever requested by the Council or where the Director-General determines, after careful examination of available resources for their possible reallocation (and taking into account regulation 4.6 concerning the transfer of funds) that there is an urgent and unforeseen need for supplementary resources to support activities that could not have been envisaged at the time the initial budget was proposed or in respect to decisions taken by the Assembly. Such supplementary budgets shall be prepared and acted upon in a form and manner consistent with the regular budget for the financial period except that they need not to be considered and adopted at a regular session of the Assembly.

Biennium: Financial period replaced with budget period.


Reporting of unforeseen and extraordinary Reporting of unforeseen and extraordinary No change.

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expenditures expenditures

The Director-General shall report within 45 days to the Council on unforeseen and extraordinary expenses necessitating a transfer under regulation 4.6.

The Director-General shall report within 45 days to the Council on unforeseen and extraordinary expenses necessitating a transfer under regulation 4.6.

No change.


APPROPRIATIONS APPROPRIATIONS No change.


Authorisation to incur expenditures Authorisation to incur expenditures No change.

The appropriations adopted by the Assembly shall constitute an authorisation to the Director-General to incur commitments and expend funds for the purposes for which the appropriations were approved and up to the amounts so approved.

The appropriations adopted by the Assembly shall constitute an authorisation to the Director-General to incur obligations and make payments for the purposes for which the appropriations were approved and up to the amounts so approved.

IPSAS: Replaced “incur obligations and make payments” with “incur commitments and expend funds”.


Availability Availability No change.

Appropriations shall be available for entering into commitments during the budget period to which they relate. Appropriations shall remain available for twelve months following the end of the budget period to which they relate to the extent that they are required to discharge any open commitments of the budget period for which they were appropriated.

Appropriations shall be available for entering into obligations during the financial period to which they relate. Appropriations shall remain available for twelve months following the end of the financial period to which they relate to the extent that they are required to liquidate outstanding legal obligations of the financial period for which they were appropriated.

Biennium: Financial period replaced with budget period. IPSAS: Obligations changed to commitments.


Uncommitted balances Unobligated balances IPSAS: unobligated changed to uncommitted.

The balance of the appropriations remaining The balance of the appropriations remaining Biennium: Financial period replaced with budget

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uncommitted at the close of the budget period shall be treated as cash surplus under regulation 4.5.

unobligated at the close of the financial period, after deduction of any unpaid mandatory contributions for that financial period, shall be treated as cash surplus under regulation 4.5.

period. IPSAS: unobligated changed to uncommitted. Editorial change: to remove “…after deduction of any unpaid mandatory contributions for that financial period” as it is not applicable in determining cash surplus


Open Commitments Unliquidated obligations IPSAS: Obligations changed to commitments.

At the end of the twelve-month period provided for in regulation 4.2, any open commitments of the budget period in question shall at that time be cancelled or, where the commitment remains a valid charge, is transferred as a commitment against current appropriations. The then remaining balance of appropriations retained shall form part of any cash surplus of the budget and shall be treated in accordance with regulation 4.5.

At the end of the twelve-month period provided for in regulation 4.2, any unliquidated obligations of the financial period in question shall at that time be cancelled or, where the obligation remains a valid charge, transferred as an obligation against current appropriations. The then remaining balance of appropriations retained shall form part of any cash surplus of the budget and shall be treated in accordance with regulation 4.5.

Biennium: Financial period replaced with budget period IPSAS: Obligations changed to commitments.


Cash surplus Cash surplus No change.

(a) Any cash surplus for the budget period at the close of the second financial period of the biennium shall be apportioned among Members in proportion to their mandatory contributions for the budget period to which the surplus relates.

(a) Any cash surplus in the budget at the close of any financial period shall be apportioned among Members in proportion to their mandatory contributions for the financial year to which the surplus relates.

Biennium: Financial period replaced with budget period and clarification of when cash surplus apportionment is finalized.

(b) As of 1 January following the year in which the audit of the accounts of the second financial period of the biennium is completed, the cash

(b) As of 1 January following the year in which the audit of the accounts of the financial year is completed, the cash surplus apportioned to each

Biennium: Adopted to the biennial budget cycle and clarify when cash surplus is distributed.

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surplus apportioned to each Member shall be treated as follows:

Member shall be treated as follows:

(i) When a Member has paid in full its mandatory contribution for prior financial periods, the cash surplus shall be applied against any mandatory contribution for the current financial period that may remain unpaid. Any remaining balance of the cash surplus shall be returned to the Member;

(i) When a Member has paid in full its mandatory contribution for prior financial years, the cash surplus shall be applied against any mandatory contribution for the current financial year that may remain unpaid. Any remaining balance of the cash surplus shall be returned to the Member;

Biennium: - replaced “financial years” with “financial periods”.

(ii) When a Member is in arrears on its mandatory contribution for prior financial periods, the cash surplus shall first be applied to liquidate such arrears and then against the mandatory contribution for the current financial period. Any remaining balance shall be returned to the Member.

(ii) When a Member is in arrears on its mandatory contribution for prior financial years, the cash surplus shall first be applied to liquidate such arrears and then against the mandatory contribution for the current financial year. Any remaining balance shall be returned to the Member.

Biennium: - replaced “financial years” with “financial periods”.


Transfers between appropriation programmes Transfers between appropriation programmes No change.

The Director-General may make transfers between appropriation programmes with prior approval of the Council or up to such limits as the Assembly may set.

The Director-General may make transfers between appropriation programmes with prior approval of the Council or up to such limits as the Assembly may set.

No change.


Commitments for future financial periods Commitments for future financial periods No change.

The Director-General may enter into commitments for future budget periods provided that such commitments are:

The Director-General may enter into commitments for future financial periods provided that such commitments are:

Biennium: - replaced “financial periods” with “budget periods”.

(a) For activities which have been approved by the Assembly and are expected to continue

(a) For activities which have been approved by the Assembly and are expected to continue

Biennium: - replaced “financial period” with “budget period”.

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beyond the end of the current budget period; or beyond the end of the current financial period; or

(b) Authorised by a specific decision of the Assembly.

(b) Authorised by a specific decision of the Assembly.

No change.


The Director-General shall prudently manage the appropriations approved for the budget period so as to ensure that expenditures can be met from funds available, keeping in view the actual contributions received and the availability of cash balances.

The Director-General shall prudently manage the appropriations approved for the financial year so as to ensure that expenditures can be met from funds available, keeping in view the actual contributions received and the availability of cash balances.

Biennium: - replaced “financial period” with “budget period”.


CONTRIBUTIONS CONTRIBUTIONS No change.

Regulation 5 Regulation 5 No change.

The resources of the Agency shall comprise: The resources of the Agency shall comprise: No change.

(a) mandatory contributions, hereinafter referred to as assessed contributions, made by Members on the basis of the IRENA scale of contributions, determined pursuant to Article XII, paragraph A (1) of the Statute;

(a) mandatory contributions, hereinafter referred to as assessed contributions, made by Members on the basis of the IRENA scale of contributions, determined pursuant to Article XII, paragraph A (1) of the Statute;

No change.

(b) voluntary contributions made by Members, by states and regional intergovernmental economic integration organisations not yet Members, and by other sources; and

(b) voluntary contributions made by Members, by states and regional intergovernmental economic integration organisations not yet Members, and by other sources; and

No change.

(c) other revenue. (c) miscellaneous income. IPSAS: “miscellaneous income” replaced by “other revenue”.


ASSESSED CONTRIBUTIONS AND PAYMENT ASSESSED CONTRIBUTIONS AND PAYMENT No change.

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MODALITIES MODALITIES


Scope and scale of contributions Scope and scale of contributions No change.

Appropriations shall be financed by Members in accordance with the IRENA scale of contributions which will be determined by the Assembly based on the United Nations scale of assessments, adjusted to take into account differences in membership between the Agency and the United Nations. Pending the receipt of such contributions, appropriations may be financed from the Working Capital Fund.

Appropriations shall be financed by Members in accordance with the IRENA scale of contributions which will be determined by the Assembly based on the United Nations scale of assessments, adjusted to take into account differences in membership between the Agency and the United Nations. Pending the receipt of such contributions, appropriations may be financed from the Working Capital Fund.

No change.


Adjustments Adjustments No change.

The assessed contributions of Members shall be established for each financial period of the biennium which will approximate half of the appropriations approved for the budget period by the Assembly, taking into account adjustments, if any, for:

The assessed contributions of Members shall be established for each financial period, taking into account adjustments, if any, for:

Biennium: Clarify level of assessment for each year of the budget period and adjustments to be made.

(a) Supplementary appropriations authorized as per financial regulation 3.5 for which contributions have not been assessed on Members;

Addition to reflect impact of Regulation 3.5.

(b) Estimated other revenue as defined in Regulation 6.3 for the financial period with respect to which the assessment of contributions is being made;

(a) Estimated miscellaneous income for the financial period with respect to which the assessment of contributions is being made;

IPSAS: “miscellaneous income” replaced by “other revenue” and as further explained in proposed new Regulation 6.3 below.

(c) Contributions resulting from the assessment of new Members under regulation 6.4;

(b) Contributions resulting from the assessment of new Members under regulation 6.3;

No change.

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(d) Net adjustments made under regulation 4.5. (c) Net adjustments made under regulation 4.5. No change.

Regulation 6.3 IPSAS: Proposed new Regulation to reflect reclassification of miscellaneous income. Under cash/modified accrual basis accounting principles these revenue items are classified as miscellaneous income and offset against Members’ assessments. Under IPSAS a number of these items are no longer classified as miscellaneous income. This new regulation is being proposed to ensure that Members continue to receive the offsets from these categories of revenue as applicable. The proposed new regulation also replaces current regulation 8.1, which only defines miscellaneous income, a terminology which is not in accord with IPSAS.

Other revenue available for offset

Members’ assessments shall be offset in accordance with regulation 6.2 by net revenue from the following revenue categories:

(a) Revenue-producing activities;

(b) Investment revenue;

(c) Services rendered;

(d) Contributions from new Members in accordance with regulation 6.4;

(e) Other/miscellaneous revenue;

(f) Any other revenue attributable to Members.

Regulation 6.4 Regulation 6.3 Change in numbering.

Contributions of new Members Contributions of new Members No change.

(a) States and regional intergovernmental economic integration organisations that become a Member after the beginning of a new financial period shall be assessed for this financial period based on the IRENA scale of contributions adjusted to account for their membership.

(a) States and regional intergovernmental economic integration organisations that become a Member after the beginning of a new financial period shall be assessed for this financial period based on the IRENA scale of contributions adjusted to account for their membership.

No change.

(b) Such contributions shall accrue from the beginning of the month following the month in which they become a Member. Payments by new Members will be made upon determination of the scale by the Assembly and the Agency will

(b) Such contributions shall accrue from the beginning of the month following the month in which they become a Member. Actual payments by new Members will be made upon determination of the scale by the Assembly and

Biennium: - replaced “financial period” with “budget period”. Clarified by adding reference to related regulation. IPSAS: “income” replaced by “revenue”; and

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apply the new Members’ contributions to other revenue. Existing Members included in the scale of contributions approved by the Assembly will receive a credit in accordance with regulation 4.5 toward the following year’s contribution according to the revised assessment proportions if the receipt of contributions from new Members or unanticipated other revenue causes total revenue to exceed the level of expense for the budget period, resulting in a surplus.

the Agency will apply the new members’ contributions to miscellaneous income. Existing Members will receive a credit toward the following year’s contribution according to the revised assessment proportions if the receipt of contributions from new members or unanticipated miscellaneous income causes revenue to exceed the level of expenditures for the financial period, resulting in a surplus.

“expenditures” replaced by “expense”.


Reporting Reporting No change.

The Director-General shall periodically report to Members on the contributions and of advances to the Working Capital Fund.

The Director-General shall periodically report to Members on the contributions and advances to the Working Capital Fund.

No change.


Information by the Director-General Information by the Director-General No change.

After the Assembly has adopted the biennium budget and determined the amount of the Working Capital Fund and the IRENA scale of contributions, the Director-General shall:

After the Assembly has adopted the budget and determined the amount of the Working Capital Fund, the Director-General shall:

Biennium: Clarify that budget is for the biennium and the fact that the IRENA scale of contributions is set annually by the Assembly.

(a) Submit the relevant documents to Members and to the Signatories of the Statute;

(a) Submit the relevant documents to Members and to the Signatories of the Statute;

No change.

(b) Inform Members of their commitments in respect of annual contributions and advances to the Working Capital Fund; and

(b) Inform Members of their assessed contributions; and

Other Changes - WCF: Recognized the fact that the advances to the Working Capital Fund should also be collected.

(c) Request Members to remit such contributions and advances.

(c) Request Members to remit their contributions.

WCF: Recognized the fact that the advances to the Working Capital Fund should also be paid.

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Date of payment Date of payment No change.

(a) Assessed contributions to the budget shall be considered due and payable in full no later than thirty days following the receipt of the communication from the Director-General in accordance with regulation 6.5, or as of 1 January of the calendar year to which they relate, whichever is later. As of 1 January of the following calendar year, the unpaid balance of such contributions shall be considered to be one year in arrears.

(a) Assessed contributions to the budget shall be considered due and payable in full no later than thirty days following the receipt of the communication from the Director-General in accordance with regulation 6.5, or as of 1 January of the calendar year to which they relate, whichever is later. As of 1 January of the following calendar year, the unpaid balance of such contributions shall be considered to be one year in arrears.

No change.

(b) Payments made by a Member shall be credited first to the Working Capital Fund and then to the contributions due, in the order in which the Member was assessed.

(b) Payments made by a Member shall be credited first to the Working Capital Fund and then to the contributions due, in the order in which the Member was assessed.

No change.


Currency of payments Currency of payments No change.

Assessed contributions shall be paid in United States dollars.

Assessed contributions shall be paid in United States dollars.

No change.


VOLUNTARY CONTRIBUTIONS VOLUNTARY CONTRIBUTIONS No change.


Acceptance Acceptance No change.

Voluntary contributions, gifts, bequests and subventions to the Agency, whether or not in cash, may be accepted by the Director-General on behalf of the Agency for a purpose agreed between the Director- General and the

Voluntary contributions, gifts, bequests and subventions to the Agency, whether or not in cash, may be accepted by the Director-General on behalf of the Agency for a purpose agreed between the Director- General and the

No change.

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contributor, provided that the purposes for which the contributions are made are consistent with the policies, aims and activities of the Agency and provided that the acceptance of such contributions which directly or indirectly involve additional financial liability for the Organisation is authorised by the Assembly. Funding accepted for purposes specified by the donor shall be credited to the appropriate account under regulation 12.5.

contributor, provided that the purposes for which the contributions are made are consistent with the policies, aims and activities of the Agency and provided that the acceptance of such contributions which directly or indirectly involve additional financial liability for the Organisation is authorised by the Assembly. Funding accepted for purposes specified by the donor shall be credited to the appropriate account under regulation 13.5.


Report on voluntary contributions Report on voluntary contributions No change.

The Director-General shall report annually to the Assembly, all the voluntary contributions, gifts, bequests and subventions promised and accepted by the Secretariat on behalf of the Agency. Such report shall include, at a minimum, the donor, the amount of the contribution, and all terms associated with the contribution relevant to the determination that the contribution satisfies the requirements of regulation.

The Director-General shall report annually to the Assembly, all the voluntary contributions, gifts, bequests and subventions promised and accepted by the Secretariat on behalf of the Agency. Such report shall include, at a minimum, the donor, the amount of the contribution, and all terms associated with the contribution relevant to the determination that the contribution satisfies the requirements of regulation.

No change.

Article 8

IPSAS: Article 8 and Regulation 8.1 proposed to be deleted as it relates to a now-obsolete definition of miscellaneous income. The categories of revenue that can be offset against assessment is now defined in new regulation 6.3.

MISCELLANEOUS INCOME

Regulation 8.1

Definition

All other income except:

(a) assessed contributions; (b) voluntary contributions; and

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(c) refunds of expenditures shall be classed as miscellaneous income, for credit to the General Fund.

Article 8 Article 9 Change in numbering.

CUSTODY OF FUNDS CUSTODY OF FUNDS No change.

A. Internal Accounts A. Internal Accounts No change.


General Fund General Fund No change.

There shall be established a General Fund for the purpose of accounting for the Agency’s administrative costs and its core activities as referred to in Article XII of the Statute.

There shall be established a General Fund for the purpose of accounting for the Agency’s administrative costs and its core activities as referred to in Article XII of the Statute.

No change.


Contributions credited to the General Fund Contributions credited to the General Fund No change.

All contributions – whether current or arrears – of Members not specified to contribute to other funds according to regulation 8.4, miscellaneous revenue and transfers made from the Working Capital Fund shall be credited to the General Fund. All expenses regarding core activities as referred to in Article XII of the Statute and reimbursements to the Working Capital Fund, shall be made from the General Fund.

All contributions – whether current or arrears – of Members not specified to contribute to other funds according to regulation 9.4, miscellaneous income and transfers made from the Working Capital Fund shall be credited to the General Fund. From the General Fund shall be made all expenditures regarding core activities as referred to in Article XII of the Statute and reimbursements to the Working Capital Fund.

IPSAS: “income” replaced by “revenue” and “expenditures” replaced with expenses” Change in reference number and editorial change.


Voluntary contributions Voluntary contributions No change.

Voluntary contributions referred to in regulation 5 (b) shall be credited to the General Fund if they are not restricted by the contributor with respect

Voluntary contributions referred to in regulation 5 (b) shall be credited to the General Fund if they are not restricted by the contributor with respect

IPSAS: “miscellaneous income” replaced by “miscellaneous revenue”.

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to use. Contributions in respect of which no purpose is specified shall be treated as miscellaneous revenue and reported as gifts in the accounts of the financial period.

to use. Contributions in respect of which no purpose is specified shall be treated as miscellaneous income and reported as gifts in the accounts of the financial period.


Dedicated trust funds and accounts Dedicated trust funds and accounts No change.

Dedicated trust funds and accounts may be established by the Director-General as may be necessary to ensure transparent implementation of the Agency’s activities, such as to enable appropriate accounting of work programme activities of the Agency which are not part of the core activities (supplementary programme activities) and which are financed by dedicated voluntary contributions. The Director-General shall establish such a trust fund at the request of a donor in order to facilitate its contribution. The purpose and limits of each trust fund or account shall be clearly defined by the Director-General and shall be reported to the Assembly. Unless otherwise authorized by the Assembly, these funds and accounts shall be administered in accordance with the applicable Agency Financial Regulations and Procedures.

Dedicated trust funds and accounts may be established by the Director-General as may be necessary to ensure transparent implementation of the Agency’s activities, such as to enable appropriate accounting of work programme activities of the Agency which are not part of the core activities (supplementary programme activities) and which are financed by dedicated voluntary contributions. The Director-General shall establish such a trust fund at the request of a donor in order to facilitate its contribution. The purpose and limits of each trust fund or account shall be clearly defined by the Director-General and shall be reported to the Assembly. Unless otherwise authorized by the Assembly, these funds and accounts shall be administered in accordance with the applicable Agency Financial Regulations and Procedures.

No change.


Working Capital Fund Working Capital Fund No change.

There shall be established a Working Capital Fund to ensure continuity of operations in the event of short-term liquidity problems pending

There shall be established a Working Capital Fund to ensure continuity of operations in the event of short-term liquidity problems pending

No change

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receipt of assessed contributions. The level of the Working Capital Fund shall be determined by the Assembly based on a projection of financing requirements, taking into consideration projected income and expenditure. The source of monies of the Working Capital Fund shall be advances from Members, and those advances, made in accordance with the scale of assessments as determined by the Assembly for the apportionment of the expenses of the Agency, shall be carried to the credit of Members that have made such advances.

receipt of assessed contributions. The level of the Working Capital Fund shall be determined by the Assembly based on a projection of financing requirements, taking into consideration projected income and expenditure. The source of monies of the Working Capital Fund shall be advances from Members, and those advances, made in accordance with the scale of assessments as determined by the Assembly for the apportionment of the expenses of the Agency, shall be carried to the credit of Members that have made such advances.


Advances from the Working Capital Fund Advances from the Working Capital Fund No change.

Advances from the Working Capital Fund may be made only to finance activities already initiated and liabilities already incurred and for the purposes and within the terms and conditions prescribed by the Assembly and only with the written approval of the Director-General.

Advances from the Working Capital Fund may be made only to finance activities already initiated and liabilities already incurred and for the purposes and within the terms and conditions prescribed by the Assembly and only with the written approval of the Director-General.

No change.


Reimbursement to the Working Capital Fund Reimbursement to the Working Capital Fund No change.

Advances made from the Working Capital Fund shall be reimbursed to the Working Capital Fund as soon as possible and to the extent that revenue is available for that purpose.

Advances made from the Working Capital Fund shall be reimbursed to the Working Capital Fund as soon as possible and to the extent that income is available for that purpose.

IPSAS: “income” replaced by “revenue”.

B. Banking B. Banking No change.


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The Director-General shall designate the bank or banks in which the funds of the Agency shall be kept.

The Director-General shall designate the bank or banks in which the funds of the Agency shall be kept.

No change.

C. Investments C. Investments No change.


Investments Investments No change.

The Director-General may make short-term investments of monies not needed for immediate requirements only in accordance with investment criteria approved by the Assembly and shall periodically report to the Assembly on any such investments. Prior to any initial investment, the Secretariat must submit and secure approval of investment standards from the Assembly. In making investments, the Director-General shall place primary emphasis on minimizing the risk to principal funds while ensuring the liquidity necessary to meet the Agency’s cash-flow requirements.

The Director-General may make short-term investments of monies not needed for immediate requirements only in accordance with investment criteria approved by the Assembly and shall periodically report to the Assembly on any such investments. Prior to any initial investment, the Secretariat must submit and secure approval of investment standards from the Assembly. In making investments, the Director-General shall place primary emphasis on minimizing the risk to principal funds while ensuring the liquidity necessary to meet the Agency’s cash-flow requirements.

No change.


Crediting of revenue derived from investments Crediting of income derived from investments IPSAS: “income” replaced by “revenue”.

Revenue derived from investments shall be credited to the respective fund or account, and treated in accordance with regulation 6.3

Income derived from investments shall be credited to the respective fund or account, as specified in regulation 8.1.

IPSAS: “income” replaced by “revenue” and reference changed to proposed new regulation 6.3


PROCUREMENT PROCUREMENT No change.


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General principles General principles No change.

Procurement functions include all actions necessary for the acquisition, by purchase, lease or any other appropriate means, of property, including products and real property, and for the acquisition of services, including building works. For the purposes of the present regulations, procurement shall not be deemed to refer to the acquisition of services provided under employment contracts. The following general principles shall be given due consideration for all procurement transactions:

Procurement functions include all actions necessary for the acquisition, by purchase, lease or any other appropriate means, of property, including products and real property, and for the acquisition of services, including building works. For the purposes of the present regulations, procurement shall not be deemed to refer to the acquisition of services provided under employment contracts. The following general principles shall be given due consideration for all procurement transactions:

No change.

(a) fairness, integrity and transparency of the procurement process;

(a) fairness, integrity and transparency of the procurement process;

No change.

(b) best value for money; (b) best value for money; No change.

(c) effective competition; (c) effective competition; No change.

(d) the best interests of the Agency. (d) the best interests of the Agency. No change.


Tendering process Tendering process No change.

Tenders for equipment, supplies and other requirements shall be conducted in accordance with the terms of the financial procedures.

Tenders for equipment, supplies and other requirements shall, subject to the provisions of regulation 14.1, be conducted in accordance with the terms of the draft provisional financial procedures circulated for the first session of the Assembly.

Other Changes: Editorial change to drop reference to regulation 14.1 which is no longer applicable as financial procedures have already been established after the first session of the Assembly.


INTERNAL CONTROL INTERNAL CONTROL No change.


Administration of appropriations Administration of appropriations No change.

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The Director-General shall: The Director-General shall: No change.

(a) Establish detailed financial procedures in order to ensure effective financial administration and the exercise of utmost economy;

(a) Establish detailed financial procedures in order to ensure effective financial administration and the exercise of utmost economy;

No change.

(b) Maintain accounting records; (b) Maintain accounting records; No change.

(c) Maintain separate accounts for all dedicated trust funds and accounts;

(c) Maintain separate accounts for all dedicated trust funds and accounts;

No change.

(d) Cause all payments to be made on the basis of supporting vouchers and other documents which ensure that the services or goods have been received, and that payment has not previously been made;

(d) Cause all payments to be made on the basis of supporting vouchers and other documents which ensure that the services or goods have been received, and that payment has not previously been made;

No change.

(e) Designate a strictly limited number of officers who may receive monies, incur obligations and make payments on behalf of the Agency;

(e) Designate a strictly limited number of officers who may receive monies, incur obligations and make payments on behalf of the Agency;

No change.

(f) Maintain an internal financial control which shall provide for an effective current examination and/or review of financial transactions in order to ensure:

(f) Maintain an internal financial control which shall provide for an effective current examination and/or review of financial transactions in order to ensure:

No change.

(i) the regularity of the receipt, custody and disposal of all funds and other financial resources of the Agency;

(i) the regularity of the receipt, custody and disposal of all funds and other financial resources of the Agency;

No change.

(ii) the conformity of commitments and expenses with the appropriations or other financial provision voted by the Agency or with the purposes and procedures relating to dedicated trust funds and accounts; and

(ii) the conformity of obligations and expenditures with the appropriations or other financial provision voted by the Agency or with the purposes and procedures relating to dedicated trust funds and accounts; and

IPSAS: Replaced “obligations” with ”commitments” and “expenditures” with “expenses”

(iii) the economic use of the resources of the Agency.

(iii) the economic use of the resources of the Agency.

No change.


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Authority and responsibility Authority and responsibility No change.

No obligations shall be incurred until appropriate authorisations have been made in writing under the authority of the Director-General.

No obligations shall be incurred until appropriate authorisations have been made in writing under the authority of the Director-General.

No change.


Ex gratia payments Ex gratia payments No change.

The Director-General may make such ex gratia payments as he or she deems necessary in the interest of the Agency, up to such limits as may be determined by the Council and as may be approved by the Assembly. A statement of such payments shall be submitted to the External Auditor with the financial statements.

The Director-General may make such ex gratia payments as he or she deems necessary in the interest of the Agency, up to such limits as may be determined by the Council and as may be approved by the Assembly. A statement of such payments shall be submitted to the External Auditor with the accounts.

IPSAS: Replaced “accounts” with “financial statements”.


INTERNAL OVERSIGHT INTERNAL OVERSIGHT No change.


Purpose Purpose No change.

The Director-General shall establish an internal oversight mechanism which covers internal audit, evaluation, investigation and other management support to strengthen the functioning of the organization. The internal oversight mechanism shall exercise operational independence in the conduct of its duties under the authority of the Director-General, and will be responsible for:

The Director-General shall establish an internal oversight mechanism which covers internal audit, evaluation, investigation and other management support to strengthen the functioning of the organization. The internal oversight mechanism shall exercise operational independence in the conduct of its duties under the authority of the Director-General, and will be responsible for:

No change.

(a) providing assurance that programmes and plans are delivered effectively, that strategic management information is reliable and timely, and that continuous improvements are fostered

(a) providing assurance that programmes and plans are delivered effectively, that strategic management information is reliable and timely, and that continuous improvements are fostered

No change.

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in methods and procedures so as to enhance the quality of the Agency’s operations; and

in methods and procedures so as to enhance the quality of the Agency’s operations; and

(b) identifying major risks for the Agency and to propose remedial action to minimize such risks. The Director-General may remove the internal auditor only for cause, and with the prior approval of the Council.

(b) identifying major risks for the Agency and to propose remedial action to minimize such risks. The Director-General may remove the internal auditor only for cause, and with the prior approval of the Council.

No change.


Role and functions Role and functions No change.

Within the internal oversight mechanism, independent internal audits shall be conducted in accordance with regulations and in conformity with generally accepted auditing standards. Internal auditors shall review, evaluate and report on the use of financial resources and on the effectiveness, adequacy and application of internal financial control systems, procedures and other relevant internal controls. Internal audits shall also include the following elements:

Within the internal oversight mechanism, independent internal audits shall be conducted in accordance with regulations and in conformity with generally accepted auditing standards. Internal auditors shall review, evaluate and report on the use of financial resources and on the effectiveness, adequacy and application of internal financial control systems, procedures and other relevant internal controls. Internal audits shall also include the following elements:

No change.

(a) Compliance of financial transactions with Assembly decisions, resolutions, approved programmes and other legislative mandates, with regulations, procedures and related administrative directives and with the approved recommendations of external oversight bodies;

(a) Compliance of financial transactions with Assembly decisions, resolutions, approved programmes and other legislative mandates, with regulations, procedures and related administrative directives and with the approved recommendations of external oversight bodies;

No change.

(b) Economy, efficiency and effectiveness of financial, physical and human resources management and utilisation, and of programme delivery, including by examining the structure of the Agency and its responsiveness to the

(b) Economy, efficiency and effectiveness of financial, physical and human resources management and utilisation, and of programme delivery, including by examining the structure of the Agency and its responsiveness to the

No change.

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requirements of programmes and legislative mandates and by conducting management audits.

requirements of programmes and legislative mandates and by conducting management audits.


Scope Scope No change.

The Director-General shall: The Director-General shall: No change.

(a) ensure that the internal auditor has the operational independence, objectivity and authority to conduct internal audits, inspections, evaluations, investigations and monitoring;

(a) ensure that the internal auditor has the operational independence, objectivity and authority to conduct internal audits, inspections, evaluations, investigations and monitoring;

No change.

(b) ensure that the internal auditor has access to all records and officials of the Agency relevant to the purposes listed in regulation 11.2 above;

(b) ensure that the internal auditor has access to all records and officials of the Agency relevant to the purposes listed in regulation 12.2 above;

Change in numbering of reference number.

(c) instruct programme managers to provide such information or assistance to the internal auditor as is reasonably required to conduct its work;

(c) instruct programme managers to provide such information or assistance to the internal auditor as is reasonably required to conduct its work;

No change.

(d) ensure that procedures are in place that provide for: direct confidential access of staff members to the internal oversight mechanism, including for the purposes of suggesting improvements for programme delivery or for reporting perceived cases of misconduct, ensure that staff enjoy protection against repercussions, due process for all parties concerned, and fairness during any investigation; and

(d) ensure that procedures are in place that provide for: direct confidential access of staff members to the internal oversight mechanism, including for the purposes of suggesting improvements for programme delivery or for reporting perceived cases of misconduct, ensure that staff enjoy protection against repercussions, due process for all parties concerned, and fairness during any investigation; and

No change.

(e) ensure procedures for a prompt, effective follow-through on recommendations in, or derived from, reports of the internal auditor.

(e) ensure procedures for a prompt, effective follow-through on recommendations in, or derived from, reports of the internal auditor.

No change.


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Reporting Reporting No change.

(a) Reports on each separate audit, inspection, evaluation, investigation and monitoring activity shall be submitted to the Director-General. For each report the relevant programme managers shall be afforded adequate opportunity to consider and comment upon the observations and draft recommendations. Copies of all reports and accompanying comments by the Director-General shall be provided to the External Auditor.

(a) Reports on each separate audit, inspection, evaluation, investigation and monitoring activity shall be submitted to the Director-General. For each report the relevant programme managers shall be afforded adequate opportunity to consider and comment upon the observations and draft recommendations. Copies of all reports and accompanying comments by the Director-General shall be provided to the External Auditor.

No change.

(b) The Director-General shall report to the Council at each session on internal audit recommendations and actions taken.

(b) The Director-General shall report to the Council at each session on internal audit recommendations and actions taken.

No change.

(c) The internal auditor shall submit a comprehensive, independent annual report to the external auditor of recommendations made and actions taken, which shall be considered by the external auditor.

(c) The internal auditor shall submit a comprehensive, independent annual report to the external auditor of recommendations made and actions taken, which shall be considered by the external auditor.

No change.

(d) Matters that, in the judgment of the internal auditor, present a material risk to the Agency, and which are not addressed through (b), shall be immediately forwarded to the Chair of the Council, accompanied by relevant documentation, including any correspondence with the Director-General.

(d) Matters that, in the judgment of the internal auditor, present a material risk to the Agency, and which are not addressed through (b), shall be immediately forwarded to the Chair of the Council, accompanied by relevant documentation, including any correspondence with the Director-General.

No change.


FINANCIAL STATEMENTS AND ACCOUNTS FINANCIAL STATEMENTS AND ACCOUNTS No change.


Preparation of financial statements Preparation of financial statements No change.

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The financial statements for the financial period shall be submitted annually by the Director-General to the External Auditor not later than 31 March following the end of the financial year. The financial statements for the financial period shall show:

The financial statements for the financial year shall be submitted annually by the Director-General to the External Auditor not later than 31 March following the end of the financial year. The accounts for the financial period shall show:

Other Changes: Replaced “accounts” with” financial statements”.

(a) Statement of financial position; (b) Statement of financial performance; (c) Statement of changes in net assets; (d) Statement of cash flow; (e) Statement of comparison of budget and actual amounts; and (f) Notes to the financial statements.

(a) The income and expenditure of all funds; (b) The status of appropriations, including: (i) the original appropriations and supplementary appropriations, if any; (ii) the appropriations after modification by any transfers; (iii) credits, if any, other than appropriations approved by the Assembly; (iv) the expenditures charged against those appropriations and/or other credits; (v) the unused balances of appropriations and of other credits; (c) The assets and liabilities of the Agency; and (d) Such other information as may be appropriate to indicate the current financial position of the Agency.

IPSAS: To comply with the IPSAS prescriptions as to the form and substance of annual financial statements.


Submission of financial statements Submission of financial statements and accounts Other Changes: Removed “accounts”.

The Director-General shall submit to the Assembly financial statements for the past financial period at least 45 days before the opening of the regular session.

The Director-General shall submit to the Assembly financial statements and accounts for the past financial period at least 45 days before the opening of the regular session.

Other Changes: Removed “accounts”.


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Financial statements for special purposes Financial statements for special purposes No change.

Financial statements shall also be prepared at such other intervals as may be prescribed by the Director- General or requested by the Assembly. Financial statements for special periods or parts of the Budget shall be prepared and submitted consistent with the stipulations of these Regulations.

Financial statements shall also be prepared at such other intervals as may be prescribed by the Director- General or requested by the Assembly. Financial statements for special periods or parts of the Budget shall be prepared and submitted consistent with the stipulations of these Regulations.

No change.


Maintenance and protection of accounting records

Maintenance and protection of accounting records

No change.

The Director-General shall maintain and safeguard against damage, destruction, unauthorized access and removal such accounting records as are necessary for financial reporting and for management purposes.

The Director-General shall maintain and safeguard against damage, destruction, unauthorized access and removal such accounting records as are necessary for financial reporting and for management purposes.

No change.


Separate accounts Separate accounts No change.

Appropriate separate accounts shall be maintained for all trust funds and accounts. Unless otherwise authorized by the Assembly, these funds and accounts shall be administered in accordance with the applicable Agency regulations and procedures.

Appropriate separate accounts shall be maintained for all trust funds and accounts. Unless otherwise authorized by the Assembly, these funds and accounts shall be administered in accordance with the applicable Agency regulations and procedures.

No change.


Currency of accounting records Currency of accounting records No change.

The financial statements of the Agency shall be presented in United States dollars. Accounting

The accounts of the Agency shall be presented in United States dollars. Accounting records may,

Other Changes: Replaced “accounts” with “financial statements”.

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records may, however, be kept in such currency or currencies as the Director-General may deem necessary.

however, be kept in such currency or currencies as the Director-General may deem necessary.


Writing-off of cash, receivables and property Writing-off of cash, receivables and property No change.

The Director-General may, after full investigation, authorize the writing off of losses of assets, including cash, inventories and property, plant and equipment, provided that a statement of all such amounts written off shall be submitted to the External Auditor with the financial statements.

The Director-General may, after full investigation, authorize the writing off of losses of cash, stores and other assets, provided that a statement of all such amounts written off shall be submitted to the External Auditor with the accounts.

Other Changes: Replaced “accounts” with “financial statements”. IPSAS: Changed to include cash, inventories and property, plant and equipment as write-offs. Editorial change to replace accounts with financial statements.


External audit External audit No change.

The accounts and financial management of all funds governed by these Regulations shall be subject to an annual audit as provided for in Article IX(G)(3) of the Statute, and the arrangements for such audit shall take into account the international nature of the Agency and ensure an open and competitive process for the selection of the External Auditor.

The accounts and financial management of all funds governed by these Regulations shall be subject to an annual audit as provided for in Article IX(G)(3) of the Statute, and the arrangements for such audit shall take into account the international nature of the Agency and ensure an open and competitive process for the selection of the External Auditor.

No change.


GENERAL PROVISIONS GENERAL PROVISIONS No change.

Regulations 13.1 Regulations 14.1 Change in numbering.

Financial procedures Financial procedures No change.

(a) The Director-General shall develop Financial Procedures for the Agency as may be appropriate

(a) The Director-General shall develop Financial Procedures for the Agency as may be appropriate

No change.

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for the implementation of these Regulations and shall report thereon to the Assembly.

for the implementation of these Regulations and shall report thereon to the Assembly.

(b) New and/or amended Financial Procedures shall be provisional until the requirements of the present regulation have been met.

(b) New and/or amended Financial Procedures shall be provisional until the requirements of the present regulation have been met.

No change.

(c) The Director-General shall report to the Assembly the full text of provisional new and/or amended Financial Procedures. Should the Assembly find that a provisional procedure or amendment is inconsistent with the intent and purpose of the Financial Regulations, it may direct that the procedure or amendment be withdrawn or modified.

(c) The Director-General shall report to the Assembly the full text of provisional new and/or amended Financial Procedures. Should the Assembly find that a provisional procedure or amendment is inconsistent with the intent and purpose of the Financial Regulations, it may direct that the procedure or amendment be withdrawn or modified.

No change.

(d) The provisional procedure and amendments reported by the Director-General, taking into account such modifications and/or deletions as may be directed by the Assembly, shall enter into full force and effect no later than thirty days after the end of the Assembly session having considered the provisional procedures or amendments, unless the Assembly decides on a different date.

(d) The provisional procedure and amendments reported by the Director-General, taking into account such modifications and/or deletions as may be directed by the Assembly, shall enter into full force and effect no later than thirty days after the end of the Assembly session having considered the provisional procedures or amendments, unless the Assembly decides on a different date.

No change.


Relation of provisions Relation of provisions No change.

In the event of any conflict between any provisions of these Regulations and the Statute, the Statute shall prevail. In the event of any conflict between these Regulations and the Financial Procedures, these Regulations shall prevail.

In the event of any conflict between any provisions of these Regulations and the Statute, the Statute shall prevail. In the event of any conflict between these Regulations and the Financial Procedures, these Regulations shall prevail.

No change.