93/29.  United Nations Population Fund:  Financial Regulations

The Governing Council

Having considered the report of the Executive Director on the proposed revisions to the Financial Regulations of UNFPA (DP/1993/63);

            Approves the following Financial Regulations:

Article V - TRUST FUNDS

Regulation 5.4:  Funds received by UNFPA under Regulation 14.6 for procurement of supplies, equipment and services on behalf and at the request of Governments, specialized agencies or other inter-governmental or non-governmental organizations shall be treated as trust funds.

Article XIV - INTERNAL CONTROL

Regulation 14.6:  Supplies, equipment and services may be provided by UNFPA under procurement arrangements on behalf and at the request of Governments, specialized agencies or other inter-governmental or non-governmental organizations, where such supplies, equipment and services are required for purposes related to UNFPA activities and are consistent with the aims and policies of UNFPA, on the basis of full payment in advance of the procurement activities, to cover all costs, including insurance and service fees, connected with the procurement of such supplies, equipment and services.

Article II - DEFINITIONS

Regulation 2.2 C (vi):  "Cost sharing" shall mean an arrangement by which the costs of projects that are normally charged to UNFPA regular resources, including the reimbursement of the related administrative and operational service costs paid to executing agencies, are covered in full or in part by a contribution or contributions from the recipient Government, or from one or more Governments other than the recipient Government, or firm an organization or organizations of the United Nations system, or from inter-governmental institutions or agencies not part of the United Nations system.  Such arrangement may be made on the following basis:

-  Project cost sharing whereby the contribution relates to a specific project;

-  Programme cost sharing whereby the contribution relates not to a specific project but to all or several projects in a recipient country or region; and

-  Third party cost sharing, which can be either project or programme cost sharing, whereby the contribution is paid by one or more entities other than the recipient Government.

Article IV - UNFPA FUNDS

Regulation 4.12:  The Executive Director is authorized to enter into project, programme and/or third-party cost-sharing agreements, provided that such cost-sharing arrangements have been accepted by the recipient country or countries, subject to such principles as the Governing Council may establish.

Regulation 4.13:  Cost-sharing agreements and contributions thereunder shall be subject to the following conditions:

(a)  Contributions would be denominated for accounting purposes in United States dollars; however, UNFPA would accept payment in the local currency of a recipient Government to the extent that such currency could be used to meet project expenditure requirements;

(b)  Contributions would be paid pursuant to a written agreement made between the contributor and UNFPA.  Such agreement would specify that the contributions should be paid in advance of the implementation of planned activities.  All third-party contributions would be accepted subject to the agreement of the recipient Government.

(c)  In case of default in making the payments required under sub-paragraph (b) above, UNFPA would be under no obligation to provide funds from its regular programmable resources for any of the activities planned under the cost-sharing agreement.

29th meeting

18 June 1993