UNITED NATIONS CHILDREN'S FUND FINANCIAL REGULATIONS AND RULES OF THE UNITED NATIONS CHILDREN'S FUND UNITED NATIONS New York, 1988FINANCIAL REGULATIONS AND RULES OF THE UNITED NATIONS CHILDREN'S FUND EXECUTIVE DIRECTOR'S TRANSMITTAL NOTE 1. The Executive Board of the United Nations Children's Fund (UNICEF), by its decision 1987/13 taken at its 1987 regular session, adopted the UNICEF Financial Regulations in accordance with Economic and Social Council decision 1986/181 of 23 July 1986, as approved by the General Assembly in its decision 41/461 of 11 December 1986. 2. The Executive Director established the UNICEF Financial Rules, which came into effect on 1 January 1988, 60 days following their circulation to members of the Executive Board in accordance with UNICEF Financial Regulation 12.1 (a). The Financial Regulations and Rules were then published as document B/ICEF/1988/AB/L.3 of 19 January 1988. 3. At the 1988 session the Executive Board, by its resolution 1988/11, section F, determined that: Financial rule 108.4 should be withdrawn and financial regulation 8.3 should be revised as follows to reflect Executive Board policy in this are: Regulation 8.3: ‘Programme recommendations shall be approved by the Board on the basis of estimated future resources as projected in the medium-term plan and may be financed from general resources, supplementary funds or both. Programme activities which are approved subject to the availability of supplementary funds may be implemented only as and when such funds are received or pledged in writing. Where a project approved by the Board subject to the availability of supplementary funds has an important reinforcing role for programme activities financed from general resources, the Executive Director may, if necessary between Board sessions and under the conditions and limits set by the Executive Board, implement such project by using general resources and report to the Board at its next following session’ ." 4. The present edition of the UNICEF Financial Regulations and Rules embodies all the amendments and decisions adopted by the Executive Board up to and including its 1988 regular session. James P. Grant Executive Director UNICEFArticle tion I, DEFINITIONS . 11 II. APPLICABILITY ., 2.1-2.6 TIT, ACCOUNTABILITY . cana saese dh IV. FINANCIAL RESOURCES .. V. SPECIAL ACCOUNTS .......eses00e 5.15.3 VI. FINANCIAL PERIODS ......es0seee0e 6.1-6.4 VII, MEDIUM-TERM PLAN ..seseceeeeeeesecseeee | Te147.6 VIII. PROGRAMME ACTIVITIES .........5 8.1-8.13 IX, BIENNIAL BUDGET . + 9.19.15 X. ‘THE UNICEF ACCOUNT seeeeeees 10,21-20.4 XI. MANAGEMENT OF FUNDS . see Wana X01, INTERNAL CONTROL . seecen WARE XIII, ACCOUNTS ......045 cee 19,1-13,4 XIV. EXTERNAL AUDIT ....., seeeeeees -Mel-14.2 Information annex UNITED NATIONS FINANCIAL REGULATIONS: ARTICLE XII, conrenrs SUBJECT INDEX Rule 101.1-101.2 102.1-102.4 103.1-103.2 104.1~104.5 105.1-105.10 107.1-107.2 108.1-108.12 109.1-109.8 aa0.1-110.3 an1.1-111.14 3a2.2-212.42 113,1-113.10 EXTERNAL AUDITFINANCIAL REGULATIONS AND RULES OF THE UNITED NATIONS CHILDREN'S FUND PREFACE 1, _On 11 December 1946, the General Assembly of the United Nations edopted resolution 57 (I) establishing the United Nations International Children's cy Fund (UNICEF) and defining its terms of reference, financial basis and zational form. On 1 December 1950, the General Assembly extended the period of the UNICEF mandate for three years, shifting its emphasis to programmes of long-range benefit to children of developing countries (resolution 417 (V)). On 6 October 1953, the General Assembly adopted resolution 802 (VIII), reaffirming the provisions of its resolutions 57 (I) and 417 (V), with the exception of any reference to time-limits contained in those resolutions. Resolution 802 (VIII) changed the name of the organization to the United Nations Children's Fund, retaining the acronym UNICEF. 2. The General Assembly resolutions provide that UNICEF shall be: (a) Authorized to receive funds, contributions or other assistance from Governments, voluntary agencies, individual or other sources; to make expenditures and to finance or arrange for the provision of supplies, material, services and technical assistance for the furtherance of its purposes; to facilitate and co-ordinate activities relating thereto; and, generally, to acquire, hold or transfer property and to take any other legal action necessary or useful in the performance of its objects and purposes (resolution 57 (I), para. 2 (a)); (b) Governed by an Executive Board composed of representatives of Governments designated by the Economic and Social Council from States Members of the United Nations or members of the specialized agencies with due regard to geographical distribution and to the representation of the major contributing and recipient countries, which, with due regard to the urgency of the needs and available resources, formulates the policies, determines the programmes and allocates the resources of the Fund for the purpose of meeting, through the provision of supplies, training and advice, emergency and long-range needs of children and their continuing noeds, particularly in underdeveloped countries, with « view to strengthening, wherever appropriate, the permanent child health and child welfare programmes of the countries receiving assistance (resolution 417 (V), paras. 6 (a) and (b)); (c) Administered by an Executive Director appointed by the Secretary-General in consultation with the Executive Board, under policies, including the determination of progranmes and allocation of funds, established by the Executive Board in accordance with such principles as may be laid down by the Economic and Social Council and its Social Commission (resolution 57 (I), paras. 3 (a) and (b)). 3. General Assembly resolution 57 (I) also provides that UNICEF: (a) Shall not engage in activity in any country except in consultation with, and with the consent of, the Government concerned (para. 2 (c)); -vii-(») In agreement with the Governments concerned, shall take such measures as are deemed appropriate to ensure the proper utilization and distribution of supplies or other assistance which it provides (para. 2 (b)). In conformity with those provisions, UNICEF normally concludes with each Government @ standard basic agreement establishing the general conditions for mutual co-operation in the country. 4. The work of UNICEF is reviewed annually by the Economic and Social Council on the basis of the report of the Executive Board on its annual session (resolution 57 (I), para. 7). 5. Since its establishment, UNICEF has operated under the Financial Regulations and Rules of the United Nations. By its decision 1987/13, taken at its 1987 regular session, the Executive Board adopted the UNICEF Financial Regulations in accordance with Economic and Social Council decision 1986/181 of 23 July 1986, as approved by the General Assenbly in its decision 41/461 of 11 December 1986. 6. The Regulations, together with the Rules made thereunder in accordance with regulation 12.1 (a), are hereby promulgated and shall come into effect on 1 January 1988 as provided in regulation 2.4. James P. Grant Executive Director UNICEFArticle I. DEFINITIONS Regulation 1.1: For the purpose of these regulations the following definitions shell apply: (a) “Advisory Committee" shell mean the Advisory Committee on Administrative and Budgetary Questions of the United Nations; (b) “Appropriations” shall mean the total amount epproved by the Executive Board for specified purposes for the current biennial budget against which obligations may be incurred for those purposes up to the amounts so approved te) bdivision of the appropriations for which specific amount is shown in the appropriations resolution; (d)_ “Board of Auditors" shall mean the United Nations Board of Auditors; (e) "Capital assets" shall mean assets intended for ong-continued use or possession, e.g., lend, buildings end non-expendable equipment; (f) "Contributions" shall mean voluntery contributions from Governments as well as funds, contributions, donations and other assistance from intergovernnentel organization non-governmental organizations, voluntery agencies, individual and other source (g)_ "Executive Board" or "Board" shell mean the Executive (h) “Executive Director" shall mean the Executive Director of UNICEF or the officials to whom the Executive Director has delegated authority and responsibility for the matter in qu (i) “General Asst the United Nations; bly" shall mean the General Assembly of (J) "Greeting Card Operation" shall mean the organizational entity established within UNICEF to generate public support and funds for UNICEF, meinly through the production and marketing of greeting cerds end other products: (k) "National Committees for UNICEF" shall mean netionel organizations which have concluded a relationship agreement with UNICEF for the purpose of promoting the eims end objectives of UNICEF;(1) "Programme activities" shall mean activities associated directly with the planning, programming, implementation, monitoring snd evaluation of UNICEF co-operation in country, regional, interregional and globel progranmes, as distinguished from activities of @ programme support or administrative nature; (m)_ "Programme expenditures" shall mean the costs incurred for progranme supplies and equipment, project personnel, consultants and other locel costs provided by UNICEF for training, project-related workshops, studies, advisory services and the logistical aspects of supply distributio {n) “Programme support and administrative services " shall mean the costs incurred for the provision of UNICEF menagement, technical, administrative and financial support services for programe activities; (0) “Secretary-General" shell mean the Seci of the United Nations or the officials to whom the Secretary-General has delegeted authority and responsibility for the matter in question; ary-General (p) "UNICEF" shell mean the United Nations Children's Fund. Definition Bule 101.1: For the purposes of these Rules the definitions provided in UNICEF financial regulation 1.1 shall apply. Under these Rules, the following additionel definitions (a) “Head of the office(s)" shall mean the official in charge of the entity defined in paragraph (c) below; (b) “Host country" shall mean the country where a UNICEF office is located or which receives programme support from a UNICEF office located elsewhere; (c) “Office(s)" shall mean any organizational unit at headquarters or any UNICEF office away from headquarter: (a) “Official (s)" shall mean UNICEF staff member(s) employed under the Staff Regulations and Rules of the United Nations; (e) “Regulations” shall mean the UNICEF Financial RegulationsArticle II. APPLICABILITY Regulation 2.1: These Regulations shall govern the finenciel management and operation of UNICEF and shell epply to ell financial resources administered by UNICEF. Regulation 2.2: Amendments to these regulations may be made only by the Executive Board, after due consultations with the Advisory Committe Regulation 2.3: The Executive Director shell sdminister the: regulations consistently with the applicable resolutions and decisions of the General Assembly, the Economic and Social Council and the Executive Board. regulations shell come into effect on Regulation 2.4: Thi 1 be promulgated by the Executii 1 January 1988 end Director. Regulation 2.5: In regard to any matter not specifically covered by these regulations, the appropriate provisions of Financial Regulations of the United Nations shall, mutatis mutandis, apply. Regulation 2.6: The administration of funds obtained from or through UNICEF by other organizations or entities designated by the Executive Director for the execution of activities epproved by UNICEF may be carried out under their respective financial regulations, rules, practices and procedures subject to such agreements as may be concluded between UNICEF and such organizations or entities. Authority and applicability Rule 102.1: These Rules shall epply to all the financial activities of UNICEF except as may otherwise be provided by the Executive Board or specifically exempted therefrom by the Executive Director. Rule 102.2: Except where otherwise provided under these Rules, the relevant Financial Rules of the United Nations shall apply in any application of Regulation 2.5 Rule 102.3: The Comptroller shall, on behalf of the Executive Director, administer these Rules and shall determine the proper application of rule 102.2 above. The Comptroller may by written instructions delegate authority under this rule to other officials. Rule 102.4: These Rules may be amplified by the Comptroller through appropriate administrative issuances establishing procedures and instructions for the proper administration of these Rules.Article III. ACCOUNTABILITY Regulation 3.1: The Executive Director is fully responsible and accountable to the Executive Board for all phases and aspects of UNICEF activities. Accountability Rule 103.1: All officials shall be accountable to the Executive Director for the regularity of actions taken by them in the course of their official duties. Any officiel who takes action contrary to the regulations, rules or administrative issuances may be held personally responsible and financially liable for the consequences of such action. Rule 103.2: Any steff member may be required to reimburse UNICEF either pertially or in full for any financial loss suffered by UNICEF es & result of the staff member's negligence or of his or her having violated any regulation, rule or directive. Article IV. FINANCIAL RESOURCES Reguletion 4.1: The financiel resources of UNICEF shell consist of: (a) Income of UNICEF t forth in regulation 4. (b) The funds rece! in article V. d for special accounts as set forth Regulation 4.2: The income of UNICEF shall consist of: (a) Contributions; (b) Net income from the UNICEF Greeting Card Operation and from other income-producing activitie: (c) Miscellaneous incone. Reguletion 4.3: Contributions to UNICEF mey be paid or pledged on an annual basis or for number of years. They may be pledged to UNICEF at special pledging conferences or in respon: to a specific request or appeel by the Executive Director or the Secretary-Generel. They also may be received by UNICEF, unsolicited. or es-a result of fund-raising activities, through. the National Committees for UNICEF and otherwi Record of pledges Rule 104.1: A pledge shall be recorded as income in accordance with regulation 4.9; a record of pledges shell also be maintained, in the currency pledged. In case pledge is not collectible, the Comptrollermay, after consultations with the donor concerned, authorize the outstanding amount to be recorded in a separate account as an offset to UNICEF income. (See also rule 104.5, Recording of income.) Regulation 4.4: Contributions to UNICEF to finance programmes or projects approved by the Executive Board subject to supplementary funding shall be accepted in accordance with such Principles as the Executive Board may establish, provided that such contributions: (a) Will be acceptable to the recipient country or countri. (b) Include amounts sufficient to defray the separately identifiable expenses related to their administration. Supplementary funds Rule 104.2: Supplementary funds are to be accepted on the basis of an agreement with the donor, or some other appropriate document, specifying the purpose and terms of the contribution. Roguletion 4.5: Contributions to UNICEF may be accepted: (a) In cash, in currencies which are usable or convertible by UNICEF; (>) In kind, in @ form that can be utilized for the purposes of UNICEF. Contributions towards local costs Rule 104.3: Contributions by Governments towards the local costs of « UNICEF office in the host country may be made in local currency. Such contributions shall be treated es UNICEF income. Regulation 4.6: Contributions accepted in kind shell be considered income only when specifically requested by UNICEF and received in accordance with its specifications. Contributions in kind other than those considered income shall be accepted in accordance with regulation 5.1. Their monetery value shall be determined by the Executive Director. Roguletion 4.7: All income received by UNICEF shall be credited to the UNICEF Account, referred to in erticle X, and shell be ified according to the purposes for which such income is received, as follows: (a) Contributions for UNICEF programme activities, Programme support and administrative services, the net income from the UNICEF Greeting Card Operation end other Ancome-producing activities shall be credited es general resources;(>) Contributions for programmes or projects approved by the Executive Board subject to supplementary funding shall be credited as supplementary funds; (c) Contributions for emergency operations shall be credited as emergency relief and rehabilitation. Contributions for emergency operations Rule 104.4: In the event that funds ere needed for emergency relief operations, the Executive Director may appeal for contributions in accordance with regulation 4.3. Such contributions shall be credited as income to the UNICEF Account and disbursed for the purposes for which they are received in accordance with the Regulations and Rules. (See also rule 110.3 for emergency reserve.) Regulation 4.8: All other ixcome received by UNICEF shall be classified as miscellaneous income and shall be credited as general resources, however, the folloving should not be considered as income to UNICEF: (a) Direct refunds of expenditures made for programme activities or in respect of the biennial budget which shall be credited to the accounts originally charged if received in the same financial period during which the charge was recorded, but refunds of expenditures of prior financial periods shall be credited to miscellaneous income; () Revenue derived from the etafé 201 monty (ce) Deposits to special accounts established under article V. Regulation 4.9: All income shall be recorded in the UNICEF Account in United States dollars. The United Nations operational rates of exchange shall be used to convert into United States dollars all income received in other currencies, based on the United Nations cperational rates of exchange in effect on the date of the pledge or, if paid, on the date of payment. Recording of income Rule 104.5: The Comptroller shall determine: (a) The date on which a pledge shall be recorded as income; (>) The periods, taking into account any specification by the donor, to which the income shall relate for purposes of incurring expenditures.Regulation 4.10: Differences resulting from the payment of contributions pledged in currencies other than United States dollars shall be recorded: (a) Against these contributions if the payment of the pledge is made within the year for which the pledge is intended; (b) Against UNICEF miscellaneous income, as gains or losses on exchange, if the payment of the pledge is made subsequent to the year for which the pledge is intended. Article V. SPECIAL ACCOUNTS Regulation 5.1: Special accounts may be established by the Executive Board or by the Executive Director for special purposes consistent with the policies, sims and activities of UNICEF. The purpose and limits of each special account shall be defined by the authority which established it at the time the account is esteblished. Establishment of special accounts Rule 10: Each special account shall be established on the basis of a resolution or decision of the Executive Board, or a written agreement signed by the Executive Director and the donor, or express terms of reference issued by the Executive Director for the special account concerned, or as provided under rule 105.6 Rule 105.2: An agreement signed with a donor under rule 105.1 shall ‘specify the amount and purpose of the funds to be received, the activities to be financed and their duration and shell include such other Provisions as the Executive Director shall consider necessary to give effect to the policies, aims and regulations of UNICEF. Rule 105.3: UNICEF may enter into commitments for the activities under al accounts after adoption, signature or issuance of the basic document required for the establishment of the special account: (a) Upon receipt of the necessary funds from the donor; or (b) Where UNICEF and the donor agree on a specific payment schedule Rule 105.4: Unless otherwise provided by the Executive Board, special counts and the activities financed therefrom shall be administered in cordance with the applicable regulations, rules and administrative issuances. The Comptroller shall institute procedures consistent with these rules for the management of special accountsRegulation 5.2: Within the policies and guidelines approved by the Board, the Executive Director may establish special accounts for funds received by UNICEF to procure supplies, equipment and services at the request and on behalf of Governments, agencies or other organizations. A written agreement should be concluded between UNICEF and the requesting Government, agency or organization, specifying the nature and cost of the services to be furnished by UNICEF and providing for full financing of all actual and incidental expenses connected with procurement. Purchasing activities by special agreenent Rule_105.5: UNICEF may enter into special arrangements with Governments, other organizations in the United Nations system, governnentel and non-governmental organizations, to undertake activities on their behalf for the purchase of supplies, equipment and services, where such materials and services are required for purposes related to UNICEF activities and consistent with the aims and policies of UNICEF. Such arrangements shall be on the basis of written agreements which shall include provisions for UNICEF to receive payment in advance to cover all costs of the purchasing activities to be undertaken by UNICEF, except where a payment schedule acceptable to UNICEF has been agreed upon covering such costs or where reciprocal arrangements already exist or have been concluded with the recipient, with the approval of the Comptroller. Rule 105.6: Special accounts shall be established to which all funds received by UNICEF for the purchasing activities under rule 105.5 shall be credited and expenditures charged. Any unexpended balance or accrued interest on such special accounts shall be disposed of in accordance with rules 105.9 and 105.10. Rule 105.7: All financial and other transactions for the purchasing activities under rule 105.5 shall be ccnducted in conformity with the relevant regulations, rules, instructicns and directives. Rule 105,8: UNICEF shall take out and maintain such insurance as is necessary against risks of claims associated with the purchasing activities under rule 105.5, covering, anong others, the procurement, shipment, provision or use of any materials or services, conducted on behalf of Governments, agencies or other organizations. The costs of such insurance shall be borne by the requesting Government or organization. Regulation 5.3: Funds placed in special accounts shall not form part of the income of UNICEF. Unless otherwise provided by the Executive Board, such funds: (a) Shall not involve any direct or indirect additional financial liability for UNICEF: (b) Shai include amounts sufficient to defray expenses related to their administration as shall be determined by theUnexpended balances on special accounts Rule 105.9: Any unexpended balance on special accounts shall be disposed of by UNICEF in consultation with the donor. Interest on special accounts Rule 105.10: In conformity with regulation 11.4, any interest accrued on special accounts shall be credited to the UNICEF Account as miscellaneous income. Article VI. FINANCIAL PERIODS Regulation 6.1: UNICEF shall have a medium-term plan as provided for in article VII covering « planning period consisting of four consecutive calender years. Rogulation 6.2: To provide for continuity in the progranming and implementation of UNICEF co-operation in programmes, the financial period for the purpose of the proposed utilization of resources and of the entering into commitments in respect of programme activities shall be the duration of each progranme as provided for in article VIII. Regulation 6.3: The financial period for the purpose of accounting for expenditures incurred in respect of programme tivities as provided for in article VIII shall consist of a single calendar year. Regulation 6.4: For the purpose of accounting for expenditures incurred in respect of the biennial budget, as provided for in article IX, the financial period shall consist of two consecutive calender years, the first of which shall be an even year. Article VII. MEDIUM-TERM PLAN Regulation 7.1: The Executive Director shall, in conformity with criteria and conditions approved by the Executive Board, Propose « medium-term plan to the Executive Board for its approval, recommending the apportionment and utilizetion of the existing and anticipated resources of UNICEF over the plan period. The medium-term plan shall describe in deteil general objectives, fund-raising, financial and progranme strategies and priorities and overall capacity in terms of personnel, progranme support and administrative services, to implement the activities proposed in the plan. It shall contain a financial plen, expressed in United States dollers.The medium-term plan shall cover a planning period of four calendar years consisting of the current year and the three following ones. The plan shall be updated and revised annually with the oldest year dropped and a new year added. Duration of progranmes Rule 107.2: UNICEF co-operation in programmes shall normally be prepared within the framework of national plans and priorities taking into account Past programme experience and the programme objectives and priorities, as provided in the medium-term plan. The duration of each programme shall be for a period of three to five years. However, because of the cycle of national plans or because of special situations specific to « country, the duration of a programme may be for a shorter period of one or two years. Regulation 7.2: The proposed financial plan shall provide, in deteil, the financial projections of: (a) Estimated future resources for each year of the plen period; (b) Estimated yearly leve: activities in programme co-operation, a Programme support services and acquisition of capital assets which estimated future resources would make possibl (c) Working capital levels required for the liquidity of UNICEF. Regulation 7.3: The estimate of future resources shall take into account contributions paid or pledged for the period of the plen or s part thereof and any additional resources expected within the plan period. Except for pledged contributions timated future resources shall not imply « commitment on the part of individual donors and shall not prejudge the legislative processes and budgetary practices of donor Regulation 7.4: The proposed medium-term plan shall be transmitted to all members of the Executive Board in accordance with the Board's rules of procedure Regulation 7.5: The Executive Board shall, upon review of the proposed medium-term plen: (a) Endorse the programe objectives described therein; (b) Approve the finaneiel plan conteined in the medium-term plan as s framework of projections; 1e-1 of programme recommendations to be rector for submission to the Board Regulation 7.6: The medium-term plan shell be revised annually and submitted to the Executive Board for approval. Article VIII. PROGRAMME ACTIVITIES Regulation 8.1: Within the framework of the medium-term plen, the Executive Director shall submit to the Boerd for review end approval multi-year country progranme recommendations for the activities to be undertaken by UNICEF in the countries with which UNICEF co-operates. In addition, the Executive Director mey propose recommendations for regional, interregionel and global progranmes for review end approval by the Board. Programme recommendations Rule 108.1: The UNICEF representative in the host country shall, in consultation with the responsible national authorities, prepare programme reconmendations containing the programme activities in which UNICEF shall co-operate at the country level. In addition, UNICEF officials designated by the Executive Director may make programme recommendations for programme activities at the regional, interregional or global level. All programme recommendations shall be submitted as required to the Executive Director. Rule 10 Programme recommendations shall normally contain: (a) An analysis of situations and identification of problems end needs to be addressed; (b) Evaluation of earlier phases of co-operation; (c) Criteria for selecting Government and UNICEF priorities; (4) Overall strategy of intervention and major objectives to be achieved; (e) Areas of intervention and main components of the programme activities; (f) The estimated cost of the supplies, equipment and cash support to be provided by UNICEF; (g) Plans of operations or country programme documents as provided in regulation 8.12; a master plan of operation may be prepared for the overall country programme with sub-plans or plans of action for the sectoral components of the programme or for development areas; “ii-(h) The Executive Director shall prescribe such additional requirements as necessary or as the Board may otherwise require. Rule 108.3: Programme recommendations may include activities to be financed from general resources and supplementary funds, provided that budget estimates for each source of funding shall be indicated separately in the plans of operations or programme documents. Regulation 8.2: Each of the country programme recommendations shall provide, in sufficient detail, a description of the activities proposed for the duration of the programme (usually three to five years), together with such other information and explanatory statements as may be requested by the Board and as the Executive Director may deem necessary and shall be accompanied by a budget of the estimated expenditures and their source of funding. Similar information shall be prepared for regional, interregional and global programmes. Regulation 8.3: Programme recomendations shall be approved by the Board on the basis of estimated future resources as projected in the medium-term plan and may be financed from general resources, supplementary funds or both. Programe activities which are approved subject to the availability of supplementary funds may be implemented only as and when such funds are received or pledged in writing. Where a project. approved by the Board subject to the availability of supplementary funds has an important reinforcing role for programme activities financed from general resources, the Executive Director may, if necessary between Hoard sessions and under the conditions and limits set by the Executive Board, implement such project by using general resources and report to the Board at its next following session. Regulation 8.4: The approval by the Board of a programe recoumendation or of a revision thereof shall constitute the authorization for the Executive Director to implement the Programme consistent with the approved purposes and to incur expenditures and obligations within the approved budget of that programe, subject to availability of resources and in accordance with the actual progress and requirements of the programme. Rule 108.4: Programme recommendations for the revision of the budget approved with each programme recommendetion shall be prepared and submitted to the Executive Director in accordance with rule 108.1, as necessary, during the course of the pregramme. Regulation 8.5: The Executive Director shall, on the basis of the budget approved with each programme recommendation, draw up for each approved programme annual estimates of expenditures which, in the aggregate, shall be within the levels of expenditures projected in the medium-term plan. For thispurpose and to allocate funds as they ere necessary, the Executive Director shall prepare a summary of estimated progranne expenditures. Regulation 8.6: The summary of estimated programme expenditures shall be submitted to the Board on an annual besis. It shall indicate, under appropriate headings and by source of funding, the annual estimated programme expenditures in respect of current and proposed programme recommendations. Programme expenditures Rule 108.5: The Executive Director shall authorize the UNICEF representative, or such other officials as he may designate for the purpose, to incur expenditures for approved programme activities according to each year's requirements and the actual progress of the programme Regulation 8.7: Within the limit of the totel annuel estimated programme expenditures, the Executive Director shell authorized to incur expenditures above or below the individue annual estimates made for each progranme in accordance with the actual progress and requirements of such progranme. Rule 108.6: The summary of estimated programme expenditures may be revised by the Executive Director to reflect actual and projected Programme expenditures. Where, as a result of such revision, the difference between the actual and previously estimated programme expenditures for any one year exceeds the limit established by the Board, a report thereof shall be submitted to the Board. Regulation 8.8: Within the limit established by the Executive Board, the Executive Director shall be authorized to make funds available between Board sessions when necessary because of unforeseen circumstances, to ensure the continued operation of progranmes. Regulation 8.9: Following completion of the activities specified in @ programme recommendation and satisfaction of ell outstanding obligations, any balance of the amounts approved by the Board in the budget contained in each progranme recommendation shall revert to the UNICEF Account referred to in article X. Refunds of programme expenditures Rule 108.7: Refunds received in respect of programmes operationally completed or terminated, and for which all financiel transactions have boon recorded, shall be credited to the UNICEF Account as miscellaneous income. Refunds of programme expenditures received during the duration of the programme shall be credited to the programme account originally charged. -13-Regulation 8.10: Within limits established by the Executive Board and consistent with the need to ensure efficient and economic execution of operations and activities, the Executive Director shell be authorized to purchase and stockpile, in advance of requirements, suppl: and equipment such are generally used in UNICEF programmes. The inventory value of the stockpiled supplies and equipment shall be shown in the accounts as an asset. Rogulation 8.11: In cases of an emergency, the Executive Director may, in agreement with the Government concerned, divert funds from approved activities and supplies already in the country for emergency relief and rehabilitation operations. Such operations shall be reported to the Board at its next session following commencement of such operations. Diversion of supplies and reallocation of funds Rule 108.8:° The Executive Director may, at the request of or with the agreement of the Government, authorize the UNICEF representative to divert supplies already in the country for immediate emergency relief operations within limits established by the Board. Funds for approved programme activities in the country may be reallocated for emergency relief by the UNICEF representative only in the amounts authorized by the Board. Regulation 8.12: UNICEF co-operation in programmes shall be carried out on the basis of: (a) A basic agreement concluded between UNICEF and the Government concerned, establishing the general terms and conditions for mutual co-operation in the country, th respective commitments of UNICEF and the Government and the administrative and technical errangements for the implementation of UNICEF-supported progremmes, including provisions for the Government to finance local costs associated with such Progranmes; (b) Plans of operation or country programme document: concluded betwoen UNICEF, the Government concerned and, when appropriate, other organizations participating in the programme, jetting out, consistently with the basic agreement: (4) The objectives of the programme, the undertakings of UNICEF, the Government and the perticipating organizations, with « target tin carrying the programme through its (ii) The estimated financial resources required to cerry out specifically identified programme activitie developed on the basis of actual progranme requirements.Basic nt Rule 108.9: The Executive Director may, by written instrument, delegate to the UNICEF representative in the country or to ancther official, the authority to sign, on behalf of UNICEF, the basic agreement provided for under regulation 8.12 (a). Plans of Rule 108.10: The plans of operations or country programme documents shall be prepared and revised, as necessary, by the competent UNICEF representatives in accordance with regulation 8.12 (b) and submitted to the Executive Director with the programme recommendations. They shall be implemented only upon approval of the programme recommendations by the Board. Regulation 8.13: Ownership of supplies, equipment, materials and other property financed by UNICEF for programme activities shall be transferred to the recipient Government or other entity nominated by it, in accordance with the basic agreement. Until transferred, ownership shall remain with UNICEF. Transfer of ownership Rule 108.11: The UNICEF representative shall be responsible for ensuring that the transfer of ownership of programme supplies, equipment and materials financed by UNICEF is made consistently with the provisions of regulation 8,13 and that such transfer is made against valid legal documents or other appropriate documentation. Article Ix: BIENNIAL BUDGET Regulation 9.1: The proposed biennial budget shall cover Programe support and administrative services. It shall be Prepared by the Executive Director within the framework of the mediua-term plan. Budget proposals Rule 109.1: The proposed biennial budget shall be divided into parts and sections by categories and object of expenditures. For purposes of comparison, the estimates already approved for the current financial period shall be indicated alongside the estimates proposed for the ensuing financial period. ule 109.2: In addition to the information required by regulation 9.8, the proposed biennial budget shall contain: (a) Narratives in such form as the Board or the Executive Director may require: -15-(b) Statements of the estimated expenditures provided for under each of the parts and sections by categories and object of expenditures; (c) Tables showing the estimated expenditures for each office; (4) Tables showing proposed budget posts; (e) Tables showing estimated income under appropriate headings; (f) Explanatory statements with regard to proposed expenditure levels; (g) The amounts of administrative costs estimated to be recoverable in respect of programmes or projects financed from supplementary funds. Rule 1 The Comptroller shall, consistently with these rules, establish guidelines for submission of budget proposals to the Executive Director, by the heads of offices concerned, for incorporation in the Proposed biennial budget. The budget proposals shall be reviewed and submitted with the recommendation of the Comptroller in such form and et such times as the Executive Director shell prescribe Regulation 9.2: The biennial budget shell cover proposed expenditures and anticipated income related to the biennium and shall be presented in United States dolls: Regulation 9.3: Expenditures for programme support and administrative services shall be financed from UNICEF general resoure Regulation 9.4: The Executive Director shall, in the second year of a biennium, submit his proposed biennial budget for the following biennium to the Executive Board. This proposed biennial budget shall be transmitted to all mombers of the Board in accordance with the Board's rules of procedure. Regulation 9.5: The Executive Director shall also transmit the Proposed biennial budget to the Advisory Committee for examination and reporting to the Executive Board, Regulation 9.6: The Advisory Committee is requested to prepare & report to the Executive Board on the proposed biennial budget. ‘This report shall be transmitted to ell members of the Board as soon as it is available. Regulation 9.7: The Executive Board shall, in the second year of a biennium, adopt the biennial budget for the following biennium. Regulation 9.8: The proposed biennial budget shall show Separately, under appropr: i(a) The total estimated expenditures for the biennium divided into categories and objects of expenditures and shall be accompanied by such information annexes and explanatory statements as may be requested by the Executive Board or es the Executive Director may deem nec (b) The proposed means and the estimated expenditures for the acquisition of capital asi (c) The level and limits of the proposed contingency provisions; (d) The budget estimates, as revised, for the current biennium. Unforeseen and extraordinary expenses Rule 109.4: Authorizations to enter into conmitments against funds reserved for unforeseen and extraordinary expenses shall be subject to any limits established by the Board and mey be issued only by the Comptroller or by such other official as may be specifically designated by the Executive Director. Regulation 9.9: Supplementary proposals to amend the biennial budget may be submitted by the Executive Director whenever necessary. Supplementary budget proposals Rule 109.5: Supplementary budget proposals shall be prepared end submitted in the same form as the biennial budget. Regulation 9.10: The Executive Director shall prepare supplementary proposals to amend the biennial budget in form consistent with the approved biennial budget and shell submit auch proposels to the Executive Board. The Executive Director shall elso transmit the supplementary proposels to the Advisory Committee for examination and reporting to the Executive Board. Reguletion 9.11: Appropriations for the biennial budget proved by the Executive Board shall constitute en authorization to the Executive Director to incur obligations and to make payments for the purposes for which the appropriations were approved and up to the amounts so approved. Regulation 9.12: The Executive Director shall be authorized to e transfer: for the biennium (a) Between the appropriation lin xy specifically budget to such limits as the Executive Board decid -17-(b) Within each appropriation line for the biennium without prior approval by the Boerd. Administration of biennial budget appropriations Rule 109.6: After the proposed biennial budget has been approved by the Executive Board, authorizations by the Comptroller to expend biennial budget appropriati: hall be issued annually to each office concerned. These authorizations may take the form of: (a) Post authorization tables indicating the number and level of posts for each office; (b) Allotment advices for the objects of expenditures under the control of each office; (c) Any other authorization to commit funds for a specific period or a specific purpose. Rule 109.7: The head of each office to which an authorization has been issued according to rule 109.6 shall be responsible for ensuring that expenditures remain within the relevant authorizations and are incurred for the purposes for which they were authorized. Any unforeseen or extraordinary expenditures above category levels shall require prior authorization in accordance with rule 109.4. Rule 109.8: Refunds of expenditures financed from a given biennial budget shall be credited to the accounts originally charged, if received in the same financial period or, if subsequently received, to miscellaneous income. Regulation 9.13: Appropriations for the biennial budget shell be available for obligations during the biennium to which they relati Regulation 9.14: Appropriations shall remain available for 12 months following the end of the biennium to which they relate, to the extent that they are required to discharge any outstanding legal obligation of the biennium. The balance of the appropriations shall revert to the UNICEF Account. Regulation 9.15: At the ond of the 12-month period provided for in regulation 9.14, the then remaining balance of any eppropriations retained shall revert to the UNICEF Account. Any unliquidated obligations of the biennium in question shall at thet time be cancelled or, where the obligation remains a valid charge, transferred as an obligation against current appropriation 16.