Provisional Financial Regulations of the United Nations

I. RESOLUTIONS ADOPTED ON THE REPORTS OF THE FIFTH COMMITTEE
80. Provisional Financial Regulations of the United Nations

The General Assembly resolves, That the following provisional financial regulations be adopted and that the Secretary-General be instructed to submit draft financial regulations to the Advisory Committee on Administrative and Budgetary Questions for consideration and final adoption by the General Assembly at its regular annual session in 1947. Fifty-fifth plenary meeting,
11 December 1946

Annex Provisional Financial Regulations

These provisional financial regulations are to cover the period from the date of their approval by the General Assembly to the end of the year 1947.

THE FINANCIAL YEAR

Regulation 1

The financial year shall be the calendar year, 1 January to 31 December.

THE BUMGET

Regulation 2

The Secretary-General shall submit to the regular annual session of the General Assembly a budget for the following financial year.

Regulation 3

The budget shall be examined, before presentation to the General Assembly, by the Advisory Committee on Administrative and Budgetary Questions, which shall submit a report on the budget to all Members at least four weeks prior to the opening of the regular annual session of the General Assembly.

Regulation 4

The budget shall be divided into parts, sections and chapters, and shall be accompanied by:

(a) A detailed statement of the estimated expenditure provided for under each chapter;

(b) A statement showing the amount to be contributed by each Member in accordance with the approved scale of contributions;

(c) A statement of the estimated additional income under appropriate headings.

Regulation 5

The budget and the report of the Advisory Committee shall be submitted to the General Assembly and referred to the competent Committee for consideration and report to the Assembly. The General Assembly shall vote the budget by the majority required under the provisions of Article 18, paragraph 2, of the Charter of the United Nations.

PROVISION OF FUNDS

Regulation 6

The budgetary requirements shall be financed from contributions from Members, in amounts to be determined by the General Assembly. Pending the receipt of such contributions the budget may be financed from the working capital fund.

Regulation 7

The General Assembly shall determine the amount of the working capital fund and any sub-divisions thereof.

Regulation 8

After the General Assembly has adopted the budget, and determined the amount of the working capital fund and its sub-divisions, the Secretary-General shall:

(a) Transmit all relevant documents to Members;

(b) Inform Members of their commitments in respect of annual contributions and of advances to the working capital fund;

(c) Request them to remit their contributions and any advances to the working capital fund.

Regulation 9

Annual contributions and advances to the working capital fund shall be assessed and paid in the currency of the State in which the United Nations has its headquarters.

APPROPRIATION OF FUNDS

Regulation 10

The adoption of the budget by the General Assembly shall constitute an authorization to the Secretary-General to incur obligations and expenditures for the purposes, and during the period, for which credits have been voted and up to the amounts so voted. The Secretary-General shall cause an allotment in writing to be made from the appropriations approved by the General Assembly to the various headings of expenditures prior to the incurring of obligations, commitments or expenditures therefor. He shall cause a record to be kept of such allotments and all obligations incurred, showing at all times the amount available under each heading.

INTERNAL CONTROL

Regulation 11

The Secretary-General shall:

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

(b) Cause an accurate record to be kept of all capital acquisitions and all supplies purchased and used;

(c) Render to the Auditors with the accounts a statement as at 31 December of the financial year concerned, showing the supplies in hand and the assets and liabilities of the Organization;

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

(e) Designate the officials who may incur obligations and make payments on behalf of the Organization;

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

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

(ii) To ensure the conformity of all expenditures with the estimates voted by the General Assembly;

(iii) To obviate any uneconomic use of the resources of the Organization.

Regulation 12

Tenders for equipment, supplies and other requirements shall be invited by advertisement, except where the Secretary-General deems that, in the interest of the United Nations, a departure from the rule is desirable.

THE ACCOUNTS

Regulation 13

The accounts of the Organization shall be kept in the currency of the State in which the United Nations has its headquarters.

Regulation 14

There shall be established one cash control record in which shall be recorded all cash receipts accruing to the benefit of the Organization. The cash control record shall be divided into such subsidiary receipts classifications as may be deemed necessary.

Regulation 15

Cash shall be deposited in one or more bank accounts as required; branch accounts, or special funds which involve a separation of cash assets, shall be established as charges to the cash control record under appropriate regulations as to objects, purposes and limitations of such accounts and funds.

Regulation 16

The accounts shall consist of:

(a) Budget accounts showing within the appropriations:

(i) The original allotments;

(ii) The allotments after modification by any transfers, carried out in accordance with the provisions of regulation 19;

(iii) The obligations incurred;

(iv) The unobligated balances of allotments;

(b) A cash account showing all cash receipts and actual disbursements made;

(c) Separate accounts for the working capital fund and any other fund which may be established;

(d) Property records showing:

(i) Capital acquisitions;

(ii) Equipment and supplies purchased, used, and on hand;

(e) Such records as will provide for a statement of assets and liabilities at 31 December of each financial year.

APPOINTMENT OF EXTERNAL AUDITORS

Regulation 17

Auditors, who shall be persons not in the service of the United Nations, shall be appointed in a manner to be determined by the General Assembly.[1] The Auditors shall be appointed for periods to be determined by the General Assembly.

CUSTODY OF FUNDS

Regulation 18

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

TRANSFERS UNDER THE BUDGET DURING THE FINANCIAL YEAR

Regulation 19

Transfers by the Secretary-General within the budget may be made only to the extent permitted by the terms of the budget resolution adopted by the General Assembly.

AVAILABILITY OF APPROPRIATIONS

Regulation 20

The balance of appropriations remaining unobligated at 31 December of the financial year to which they relate shall be surrendered by consequential adjustment made in the budget next presented.

Regulation 21

Payments for outstanding obligations as at 31 December shall be made between 1 January and the last day of February and charged to the accounts of the previous financial year. At 1 March the unliquidated balance of such obligations shall be carried forward to the accounts of the then current financial year.

Regulation 22

Appropriations shall remain available, to the extent that obligations are incurred under them, for a period not exceeding three years from the first day of the financial year to which they relate. Any part of the appropriation remaining unexpended shall be surrendered, by adjustment in the budget next presented.

TRUST AND OTHER SPECIAL FUNDS

Regulation 23

Appropriate separate accounts shall be maintained for trust or other special funds for the purpose of accounting for unclaimed monies, monies received and held in suspense and for projects where the transactions involve a cycle of operations. The purpose and limits of each trust or other special fund established shall be clearly defined by the appropriate authority.

INVESTMENTS

Regulation 24

The Secretary-General may make short-term investments of monies which are not needed for immediate requirements and will inform the Advisory Committee periodically of the investments which he has made.

COUNCIL RESOLUTIONS INVOLVING UNITED NATIONS EXPENDITURES

Regulation 25

No resolution involving expenditure from United Nations funds shall be approved by a Council unless the Council has before it a report from the Secretary-General on the financial implications of the proposals, together with an estimate of the costs involved in the specific proposal.

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[1] See resolution adopted by the General Assembly at its fiftieth plenary meeting held on 7 December 1946 (page 135).