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Decision XVIII/5: Financial matters: financial reports and budgets

Recalling decision XVII/42 on financial matters,

Noting the financial report on the Trust Fund for the Montreal Protocol on Substances that Deplete the Ozone Layer for the biennium 2004–2005 ended 31 December 2005;

Recognizing that voluntary contributions are an essential complement for the effective implementation of the Protocol;

Welcoming the continued efficient management demonstrated by the Secretariat of the finances of the Trust Fund;

  1. To approve the 2007 budget for the Trust Fund in the amount of $4,671,933 and to take note of the proposed 2008 budget of $4,542,563, as set out in annex I to the report of the Eighteenth Meeting of the Parties;
  2. To authorize the Secretariat to draw down $395,000 in 2007;
  3. To approve, as a consequence of the draw-down referred to in paragraph 2 above, total contributions to be paid by the Parties at $4,276,933 for 2007 and note the contribution of $4,542,563 for 2008, as set out in annex I to the report of the Eighteenth Meeting of the Parties to the Montreal Protocol;
  4. Also to approve that the contributions of individual Parties shall be listed in annex II to the report of the Eighteenth Meeting of the Parties;
  5. To authorize the Secretariat to maintain a constant operating cash reserve of the estimated annual planned expenditures that will be used to meet the final expenditures under the trust fund. In 2006, the Parties agree to maintain the approved budget for the operating cash reserve for 2007 at 8.3 per cent and contribute 3 per cent of the budget for the cash operating reserve in 2008, after which time the Parties will strive to achieve and maintain an operating cash reserve of 15 per cent;
  6. To express its concern over delays in payment of the agreed contributions by Parties, contrary to the provisions of the terms of reference for the administration of the Trust Fund for the Montreal Protocol on Substances that Deplete the Ozone Layer, as contained in paragraphs 3 and 4 of those terms of reference;
  7. To urge all Parties to pay their contributions promptly and in full and further to urge Parties that have not done so to pay their contributions for prior years as soon as possible;
  8. To encourage Parties, non-Parties, and other stakeholders to contribute financially and with other means to assist members in the three assessment panels and their subsidiary bodies for their continued participation in the assessment activities under the Protocol;
  9. To invite Parties to notify the Secretariat of the Montreal Protocol of all contributions made to the Montreal Protocol Trust Fund at the time such payments are made;
  10. In accordance with rule 14 of the rules of procedure, to request the Executive Secretary to provide Parties with an indication of the financial implications of draft decisions which cannot be met from existing resources within the budget of the Montreal Protocol Trust Fund;
  11. To request that the Secretariat of the Montreal Protocol ensure its implementation of secretariat-related decisions adopted by the Meeting of the Parties as approved, within the budgets and the availability of financial resources in the Trust Fund;
  12. In recognition of the likely increased expenses during 2007 related to activities surrounding the celebration of the twentieth anniversary of the Montreal Protocol, to allow the Secretariat to have full flexibility, in 2007 only, to make transfers between budget lines that it believes are necessary to fund celebration-related activities, including lines 5200 (reporting), 5304 (International Ozone Day, twentieth anniversary activities) 5401 (hospitality) and 3300 (support for participation). After 2007, the normal allowance to transfer funds of up to 20 per cent from one main appropriation line of the approved budget to other main appropriation lines will apply. In addition, the Secretariat is authorized to fund the above-noted lines with any unspent participation funds which have accrued or may accrue as a result of travel cancellations by participants;
  13. To request the Secretariat to inform the Open-ended Working Group on all sources of income received, including the reserve and fund balance and interest, as well as actual and projected expenditures and commitments and to request the Executive Secretary to provide an indicative report on all expenditures against budget lines;
  14. Also to request the Open-ended Working Group to keep under review the financial information provided by the Secretariat, including the timeliness and transparency of that information.