B - Unaudited financial report and accounts for the biennium 1976-1977
372. In considering the agenda item 10 (b), the committee had before it the financial report and accounts of the Fund of the United Nations Environment Programme from the biennium 1976 – 1977 ended 31 December 1977 (UNEP/GC.6/L.3).
373. In introducing the agenda item, the Assistant Executive Director said that the un audited financial report and accounts before the Committee were the first to be prepared on the biennial basis, following the new Financial Regulations of the United Nations and the adoption by the Organization of a biennial cycle for budgeting as well as accounting purposes. The financial report and accounts had been approved and certified correct by the Executive Director and submitted to the chairman of the United Nations Board of Auditors and the chairman of the Advisory Committee on Administrative and Budgetary Questions. They would be submitted, together with the comments of those bodies, for approval by the General Assembly at its thirty-third session and subsequent transmittal to the governing Council at its seventh session.
374. The second part of the document, prepared in response to Governing Council decision 97 A (V), showed, item by item, the actions taken by the Executive Director to complete implementation of the recommendations of the Board of auditors and the advisory committee regarding the financial report and accounts for 1975.
375. one delegation felt that the terminology used in the financial report was inconsistent with that used in other documents before the committee, and mentioned that there were apparent discrepancies between different sets of figures. The secretariat replied that the apparent discrepancies were due to a change of accounting procedures which had been introduced in compliance with a recommendation of the Board of auditors. The delegation felt that in any event, the reason for such discrepancies should be expressly indicated.
376. One delegation asked weather it was united nations standard practice that investeds be made in New York. The secretariat explainded that in accordance with financial rule 206. I, the secretary-general, as the custodian of UNEP funds, was responsible for the placement of UNEP investments; however, the investments themselves were not necessarily made in New York.
377. Another delegation pointed out that the total investments of $20,121,438 as at 31 December 1977 seemed high, and asked whether it would be possible for UNEP to retrieve money at short notice in case of liquidity problems. The secretariat replied that while there would not normally be a need to withdraw money, as cash flow requirements were projected prior to the placement of investments, the investment were phased so as to allow for withdrawal on call or at 24 hours notice if the need arose.
378. At the conclusion of its discussion of item 10 (b), the committee agreed to recommend to the governing council that it take note of the un audited financial report and accounts of the fund of the United Nations environment programme for the biennium ended 31 December 1977, as well as of the action taken by the executive director to complete the implementation of the recommendations of the Board of Auditors and the Advisory committee on administrative and budgetary Question regarding the financial report and accounts for 1975.
Action by the Governing council
379. at the 14th plenary meeting of the session, on 24 May 1978, the Governing Council accepted by consensus the recommendation by sessional committee II, the substance of which is reflected in decision 6/13 C. 73/