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Secretariat Financial Regulations: Details of Investment Transactions and Income Derived to be Reported

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The Secretariat has introduced new financial regulations to ensure transparency and accountability in its financial transactions. According to Regulation 8, the details of investment transactions and income derived shall be reported in documents supporting the budget.

Long-Term Investments Authorized for Trust Funds

Regulation 8(b) allows for long-term investments to be authorized by the Administrative Technical Consultative Meeting (ATCM) for trust funds that do not require use within at least 12 months. These investments must be restricted to:

  • Securities issued by institutions or government bodies with current ratings approved by the Secretariat’s auditor
  • Other investments issued by institutions or government bodies with current ratings approved by the Secretariat’s auditor

Income from Investments to be Credited to the Fund

Regulation 8(c) states that income derived from investments shall be credited to the fund from which the investment was made.

Internal Control

The Executive Secretary is responsible for implementing internal control measures, as outlined in Regulation 9. These measures include:

  • Ensuring all financial transactions are properly authorized and recorded
  • Conducting regular audits to detect and prevent fraud

Auditing Protocol

Regulation 11 outlines the auditing protocol for the Secretariat’s financial statements. The ATCM shall appoint an external auditor who shall conduct a full audit of the Secretariat’s financial statements in accordance with generally accepted auditing standards. The auditor shall report on all relevant matters, including:

  • Whether the financial statements are based on proper accounts and records

Acceptance of Annual Financial Statements

Regulation 12 states that the ATCM shall signify its acceptance of the audited annual financial statements or take such other action as it may consider appropriate.

Insurance

Regulation 13 requires the Secretariat to take out suitable insurances with one or more reputable financial institution against normal risks to its assets.

Amendments to Regulations

Regulation 14 outlines the process for amending these regulations, which may be done by a decision of the ATCM.