Decision XVI/44: Financial matters: Financial reports and budgets

The Sixteenth Meeting of the Parties decided in Dec. XVI/44:

Recalling decision XV/52 on financial matters,

Noting the financial report on the Trust Fund for the Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer for the biennium 2002-2003,

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

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

Noting that the presence of a surplus and agreement by the Sixteenth Meeting of the Parties to draw down further from the fund balance has permitted the Secretariat to present a balanced budget for the year 2004;

Determined that, in the future, the budgets and the terms of reference for the administration of the Trust Fund for the Montreal Protocol on Substance that Deplete the Ozone Layer should be fully respected;

1. To approve the revised 2004 budget in the amount of ,424,913 and the proposed 2005 budget for the Trust Fund in the amount of ,514,917 and to take note of the proposed budget of ,580,403 for 2006, as set out in annex III to the report of the Sixteenth Meeting of the Parties;
2. To authorize the Secretariat to use the additional amount not exceeding 39,560 in the year 2004 from the fund balance of the Montreal Protocol Trust Fund to cover costs arising from additional activities in 2004 as decided by the extraordinary Meeting of the Parties in March 2004;
3. Also to authorize the Secretariat to use an amount not exceeding ,017,263 in the year 2005 from the fund balance of the Montreal Protocol Trust Fund;
4. To approve, as a consequence of the draw-downs referred to in paragraphs 2 and 3 above, total contributions to be paid by the Parties at ,279,351 for 2004 and ,497,654 for 2005, as set out in annex IV to the report of the Sixteenth Meeting of the Parties;
5. Also to approve that the contributions of individual Parties shall be listed in annex IV to the report of the Sixteenth Meeting of the Parties;
6. 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 2005, Parties shall be asked to contribute 7.5 per cent of the approved budget for 2005 and, in 2006, the operating cash reserve will increase to 15 per cent;
7. 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;
8. 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;
9. 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;
10. Also to encourage Parties, non-Parties, and other stakeholders to contribute financially and with other means to assist in the provision of financial assistance to the Methyl Bromide Technical Options Committee;
11. 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;
12. 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;
13. To request that the Secretariat of the Montreal Protocol ensure the implementation of the decisions adopted by the Meeting of the Parties as approved, within the budgets and the availability of financial resources in the Trust Fund;
14. Further 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 the agreed budget lines;
15. 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.