Framework Convention on Climate Change

Transcription

1 United Nations Framework Convention on Climate Change FCCC/SBI/2011/INF.3 Distr.: General 2 May 2011 English only Subsidiary Body for Implementation Thirty-fourth session Bonn, 6 16 June 2011 Item X of the provisional agenda Interim financial statements for the biennium as at 31 December 2010 Note by the Executive Secretary Summary This document contains the interim financial statements for the biennium , as at 31 December 2010, which have not been audited by the United Nations Board of Auditors. The interim financial statements are attached as an annex to this document and reproduced as received, without formal editing. The Subsidiary Body for Implementation may wish to take note of the report and propose appropriate recommendations to be included in draft decisions on administrative and financial matters to be adopted by the Conference of the Parties at its seventeenth session and the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol at its seventh session. GE

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3 Annex Interim Financial Statements for the biennium as at 31 December

4 CONTENTS I. Certification of the Financial Statements II. Narrative financial report A. Introduction B. Financial highlights III. Interim Financial Statements for the Biennium Statement I - Income and expenditure and changes in reserves and fund balances Statement II - Assets, liabilities, reserves and fund balances Statement III - Cash flow Statement IV Statement of appropriations of the core budget Schedule 1.1 Outstanding indicative to the UNFCCC convention Schedule 1.2 Outstanding indicative to the Kyoto Protocol Schedule 2.1 Voluntary Schedule 2.2 Clean Development Mechanism and Joint Implementation Schedule 2.3 Contributions to the International Transaction Log IV. Notes to the financial statements V. Annexes Aging analysis of outstanding indicative Annex 1 To the UNFCCC convention Annex 2 To the Kyoto Protocol 4

5 UNITED NATIONS NATIONS UNIES FRAMEWORK CONVENTION ON CLIMATE CHANGE - Secretariat CONVENTION - CADRE SUR LES CHANGEMENTS CLIMATIQUES - Secrétariat I. Certification of the Interim Financial Statements 1. The interim financial statements of the United Nations Framework Convention on Climate Change (UNFCCC) for the biennium , as at 31 December 2010, have been prepared in accordance with financial rule They include all trust funds and special accounts operated by the UNFCCC. 2. A summary of significant accounting policies applied in the preparation of these statements is included as notes to the financial statements. The notes provide additional information and clarification of the financial activities undertaken by the UNFCCC during the period covered by the statements for which the Executive Secretary has administrative responsibility. 3. I certify that the appended interim financial statements of the United Nations Framework Convention on Climate Change for the biennium , as at 31 December 2010, are correct. (Signed) Christiana Figueres Executive Secretary 21 March

6 II. Narrative financial report A. Introduction 4. The United Nations Framework Convention on Climate Change (UNFCCC) submits herewith the interim financial statements for the biennium as at 31 December The report is presented in accordance with the financial procedures 1 of the Conference of the Parties (COP), its subsidiary bodies and its secretariat as well as the United Nations System Accounting Standards The objective of the financial statements is to provide information about the financial position and performance of the organization, changes in its financial position and compliance with legislative and other authorities. The attached financial statements include: Financial highlights in summary; Statement of income and expenditure, changes in reserves and fund balances (Statement I); Statement of assets, liabilities and reserves and fund balances (Statement II); Statement of cash flow (Statement III); Statement or schedule of appropriations by programme (Statement IV); Notes to the financial statements; Detailed schedule on status of outstanding indicative ; Annexes to the financial statements. 1 Decision 15/CP.1 of 7 April United Nations System Accounting Standards Revision IX of February

7 B. Financial highlights 1. Overall financial results and trends 6. The following section provides an overview of the performance of UNFCCC. The overall results and trends are expressed in millions of United States dollars and the individual Trust Funds are expressed in thousands of United States dollars. Table 1: UNFCCC consolidated total income Increase/ (decrease) / % Voluntary (13%) CDM share of proceeds and fees (11%) Other income (29%) Total income (5%) Figure 1: UNFCCC consolidated total income Millions of United States dollars CDM share of proceeds and fees Voluntary Other income 7. There was an increase in the level of income from indicative to the core budget owing to the increase in the approved core budget for the year. The level of income from voluntary to all trust funds and the fees and share of proceeds from the Clean Development Mechanism projects both decreased during 2010 compared to the previous two years. Overall, the total income decreased by USD 5.7 million compared to the first year of the previous biennium. 7

8 Table 2: UNFCCC consolidated total expenditure Increase/ Total expenditure (decrease) (USD millions) /2010 Staff and other personnel costs % Other direct expenditure % Total direct expenditure % Programme support costs % Figure 2: UNFCCC consolidated total expenditure Millions of United States dollars Staff and other personnel costs Programme support costs Other direct expenditure 8. Total expenditure reflected the overall level of activity of the secretariat which increased significantly during 2010 compared to the first year of the previous biennium. 8

9 Table 3: UNFCCC consolidated total assets, liabilities and fund balances Increase/ (decrease) /2010 Cash and term deposits % Accounts receivable and other assets % Unliquidated obligations (8.7) (15.9) (13.5) 55.2% Other liabilities (analysed below) (26.1) (25.6) (27.7) 6.1% Operating and working capital reserves (52.6) (55.3) (56.0) 6.5% Overall cumulative surplus % Analysis of other liabilities: End of service and post retirement % Inter-fund balances payable (100.0%) Contributions received in advance % Other accounts payable % Total other liabilities % Figure 3: UNFCCC consolidated total assets, liabilities and fund balances Millions of United States dollars Cash and term deposits Unliquidated obligations Operating and working capital reserves Accounts receivable and other assets Other liabilities (analysed below) Overall cumulative surplus 9. There was a general increase in the total assets and total reserves and fund balances during 2010, in particular, cash and short term deposits increased by more than USD 34 million as at 31 December 2010 compared to the balances as at 31 December This reflects a healthy operating cash balance for the secretariat and manageable levels of outstanding liabilities. 9

10 2. Trust Fund for the Core Budget of the UNFCCC 10. Objective of the Fund: The Trust Fund for the Core Budget of the UNFCCC supports the core functions of the secretariat. The main source of income are indicative by all Parties based on the United Nations scale of assessment. Table 4: Summary accounts for the Trust Fund for the core budget Increase/ (decrease) Summary financial position /2010 Income and expenditure Total income % Total direct expenditure (21 527) (24 366) (24 718) 14.8% Programme support costs (2 796) (3 171) (2 893) 3.5% Excess of income over expenditure (1 095) % Assets, liabilities and fund balances Cash and short-term deposits % Other assets % Unliquidated obligations (1 401) (3 302) (1 734) 23.8% Other liabilities (1 724) (4 277) (3 502) 103.1% Working capital reserve (2 241) (2 241) (2 406) 7.4% Cumulative surplus % 11. Commentary: This fund achieved an excess of income over expenditure of USD 3.94 million during 2010, which together with the savings on prior period obligations of USD 0.28 million not shown on the above table resulted into the increase in the cumulative surplus. 3. Trust Fund for Participation in the UNFCCC Process 12. Objective of the Fund : The Trust Fund for Participation in the UNFCCC Process supports participation of representatives from eligible developing country Parties and Parties with economies in transition in the sessions of the COP and its subsidiary bodies, using voluntary. Table 5: Summary accounts for the Trust Fund for the participation in the UNFCCC process Increase/ (decrease) Summary financial position /2010 Income and expenditure Total income (0.3%) Total direct expenditure (3 967) (10 214) (7 219) 82.0% Programme support costs ( 492) (1 317) ( 891) 81.1% Excess of income over expenditure (3 212) ( 137) (103.9%) Assets, liabilities and fund balances Cash and short-term deposits % 10

11 Other assets (73.6%) Unliquidated obligations ( 401) ( 346) (2 276) 467.6% Other liabilities ( 35) ( 614) ( 3) (91.4%) Operating reserve ( 437) (1 155) ( 814) 86.3% Cumulative surplus (34.5%) 13. Commentary: This fund received a boost during the year following a transfer of USD 1.28 million from the CDM reserves in lieu of the CDM prompt start, leading to an increase in the cumulative surplus even though the total income for the year was almost equal to the expenditure. There were also some modest savings on prior year obligations of 0.24 million. 4. Trust Fund for Supplementary Activities 14. Objective of the Fund: The Trust Fund for Supplementary Activities supports mandated activities for which provisions are not made under the core budget. Funds are contributed voluntarily by Parties. Table 6: Summary accounts for the Trust Fund for supplementary activities Increase/ (decrease) Summary financial position /2010 Income and expenditure Total income (28.9%) Total direct expenditure (14 481) (24 840) (15 925) 10.0% Programme support costs (1 808) (3 228) (1 794) (0.8%) Excess of income over expenditure (4 709) (80.8%) Assets, liabilities and fund balances Cash and short-term deposits % Other assets (53.1%) Unliquidated obligations (2 380) (7 603) (2 512) 5.5% Other liabilities ( 35) ( 150) ( 279) 697.1% Operating reserve (2 694) (4 001) (2 654) (1.5%) Cumulative surplus % 15. Commentary: This fund is used to account for Joint Implementation Supervisory Committee, which received a boost of USD 2.22 million from CDM reserves in lieu of CDM prompt start. Together with savings on prior year obligations of USD 2.8 million, the fund ended up with a net increase the total cumulative surplus as at the end of Trust Fund for the Clean Development Mechanism 16. Objective of the Fund: The Trust Fund for the Clean Development Mechanism supports the administration of the clean development mechanism. It enables Annex I Parties to meet their emission limitation and reduction commitments by using certified emission reductions (CERs) generated from CDM projects. It receives shares of proceeds from CDM projects and fees related to the management of CDM activities. 11

12 Table 7: Summary accounts for the Trust Fund for clean development mechanism Increase/ (decrease) Summary financial position /2010 Income and expenditure Total income (8.9%) Total direct expenditure (15 587) (18 349) (27 732) 77.9% Programme support costs (1 975) (2 381) (3 300) 67.1% Excess of income over expenditure (76.9%) Assets, liabilities and fund balances Cash and short-term deposits % Other assets % Unliquidated obligations (1 619) (1 892) (3 285) 102.9% Other liabilities (1 793) ( 394) ( 355) (80.2%) Operating reserve (45 000) (45 000) (45 000) 0.0% Cumulative surplus % 17. Commentary: Although this fund had an excess of income of USD 5.1 million during 2010, a total of USD 3.5 million in lieu of the CDM prompt start was transferred to the trust fund for the participation in the UNFCCC process and to the Joint Implementation Supervisory Committee under the trust fund for supplementary activities. 6. Trust Fund for the International Transaction Log 18. Objective of the Fund: The Conference of the Parties serving as the meeting of the parties to the Kyoto Protocol (CMP), by its decision 13/CMP.1 in 2005, requested the secretariat to establish and maintain the ITL to verify the validity of transactions undertaken by national registries of Annex B Parties and CDM registry. The ITL takes a central role between registries and is an essential component of the settlement infrastructure for emissions trading under the Kyoto Protocol. The Trust Fund for the International Transaction Log covers the resource requirements for activities assigned to the ITL administrator. The income is drawn from indicative based on a scale of assessment. Table 8: Summary accounts for the Trust Fund for the international transaction log Increase/ (decrease) Summary financial position /2010 Income and expenditure Total income (19.4%) Total direct expenditure (2 182) (4 549) (3 507) 60.7% Programme support costs ( 284) ( 591) ( 377) 32.7% Excess of income over expenditure (82.0%) Savings on prior period obligations 330 Assets, liabilities and fund balances Cash and short-term deposits % Other assets (90.3%) Unliquidated obligations (1 903) ( 700) ( 636) (66.6%) Other liabilities (1 382) ( 952) (1 463) 5.9% 12

13 Operating reserve ( 357) ( 430) ( 350) (2.0%) Cumulative surplus % 19. Commentary: This fund had an excess of income over expenditure of USD 0.54 million during the year which together with the savings on prior period obligations of USD 0.33 million and the decrease in the operating reserve resulted into a net increase in the total cumulative surplus balance as at the end of the year. 7. Trust Fund for Special Annual Contribution from the Government of Germany 20. Objective of the Fund: The Trust Fund for the Special Annual Contribution from the Government of Germany (the Bonn Fund) is used to finance the logistical arrangements of events taking place in Germany, including workshops and the sessions of the subsidiary bodies. Table 9: Summary accounts for the Trust Fund for special annual contribution from the Government of Germany Increase/ (decrease) Summary financial position /2010 Income and expenditure Total income (13.0%) Total direct expenditure (2 116) (2 364) (2 322) 9.7% Programme support costs ( 274) ( 306) ( 307) 12.0% Excess of income over expenditure 392 ( 290) ( 208) (153.1%) Assets, liabilities and fund balances Cash and short-term deposits (48.2%) Other assets (70.2%) Unliquidated obligations ( 62) ( 60) ( 41) (33.9%) Other liabilities ( 3) ( 1) ( 111) % Operating reserve ( 300) ( 300) ( 300) 0.0% Cumulative surplus ( 95) (124.1%) 21. Commentary: The fund is relatively stable as expected. Since the contribution is a fixed amount paid in euro, changes from one period to the next are caused only by conversion to the US dollar or any savings from prior period obligations. Any excess balances at the end of a biennium are normally refunded back to the German Government during the subsequent biennium. The Government however, exceptionally allowed the secretariat to retain the savings at the end of the biennium of USD 104,000, which was utilised in The account for Programme Support Costs 22. Objective of the Account: This account is used to manage the overhead charges payable on all trust funds of the UNFCCC to cover costs relating to administrative services. Table 11: Summary accounts for programme support costs account Increase/ (decrease) Summary financial position /2010 Income and expenditure Total income % Total direct expenditure (6 454) (7 743) (8 959) 38.8% 13

14 Excess of income over expenditure (45.7%) Assets, liabilities and fund balances Cash and short-term deposits % Other assets % Unliquidated obligations ( 274) ( 418) ( 398) 45.3% Other liabilities ( 39) ( 49) ( 11) (71.8%) Operating reserve (1 526) (2 199) (4 481) 193.6% Cumulative surplus % 23. Commentary: As part of strengthening of the secretariat s administrative capacity, the expenditure during 2010 increased significantly compared to the previous two years. The level of income from overheads (programme support costs) increased in 2010 compared to 2008 in line with the overall trends of the level of activity within the secretariat. 9. The account for Conferences and Other Recoverable Costs 24. Objective of the Account: Income and expenditure under this special account is principally in respect to costs associated with the hosting of Conferences of the Parties under the host country agreement. Balances on this account after closure of the events and finalisation of the accounts are refunded to the host country in line with the host country agreements. An administrative charge of 5 per cent of the total expenditure per activity is applied to cover administrative overheads and is transferred upon the closure of the respective activities. 25. The special account is also used to account for the support provided by the Government of Germany associated with office moves under the host country agreement. Table 12: Summary accounts for conference and other recoverable costs account Increase/ (decrease) Summary financial position /2010 Income and expenditure Total income % Total direct expenditure (1 810) (4 576) (4 940) 172.9% Excess of income over expenditure (63.1%) Assets, liabilities and fund balances Cash and short-term deposits % Other assets % Unliquidated obligations ( 662) (1 556) (2 595) 292.0% Other liabilities ( 10) ( 532) ( 279) % Cumulative surplus (33.5%) 26. Commentary: During the year, the secretariat was split between two locations, Haus Castenjen on 8 Martin Luther King Strasse and Lange Eugen on 10 Hermann-Ehlers-Strasse, both in Bonn, Germany. The associated costs and the funding due from the German Government are included in the above table. The reduction in the cumulative surplus balance is due to the refunds made to the host countries on the accounts that were closed during the year. 14

15 III. Interim Financial Statements of the Biennium A. Statement I Interim statement of income and expenditure and changes in reserves and fund balances for the year ended 31 December 2010 (Thousands of United States dollars) Trust Fund for the Trust Fund for Core Budget of the Participation in the UNFCCC UNFCCC process Trust Fund for Supplementary Activities Trust Fund for the Clean Development Mechanism Trust Fund for the International Transaction Log Trust Fund for the Special Annual Contribution from the Government of Germany INCOME: (Note 4) a Voluntary Programme support cost income Other income CDM and JI fees Interest income Other/miscellaneous income TOTAL INCOME EXPENDITURE: (Note 5) a Staff and other personnel costs Consultants Experts Travel Contractual services Operating expenses Acquisitions Fellowships grants Exchange revaluation differences ( 34) Total direct expenditure Programme support costs TOTAL EXPENDITURE NET EXCESS (SHORTFALL) OF INCOME OVER EXPENDITURE ( 137) ( 208) RESERVES AND FUND BALANCES As at 1 January Refunds to donors or project fees refunds ( 257) ( 536) CDM Prompt start reserves adjustments (3 503) Savings on prior period obligations Net excess (shortfall) of income over expenditure ( 137) ( 208) RESERVES & FUND BALANCES AS AT 31 DECEMBER a The accompanying notes are an integral part of the financial statements. 15

16 Statement I continued Special account for UNFCCC programme support costs Special account for conferences and other recoverable costs End-of-service and post retirement benefits INCOME: (Note 4) Voluntary Programme support cost income b 12 b Other income CDM and JI fees Interest income Other/miscellaneous income TOTAL INCOME EXPENDITURE: (Note 5) Staff and other personnel costs Consultants Experts Travel Contractual services Operating expenses Acquisitions Fellowships grants Exchange revaluation differences Total direct expenditure b b Programme support costs 12 TOTAL EXPENDITURE NET EXCESS (SHORTFALL) OF INCOME OVER EXPENDITURE (3 201) Total 2010 Notes a Total 2008 RESERVES AND FUND BALANCES As at 1 January (18 468) Refunds to donors or project fees refunds (1 311) (2 104) 7 ( 46) CDM Prompt start reserves adjustments ( 1) Savings on prior period obligations Net excess (shortfall) of income over expenditure (3 201) RESERVES & FUND BALANCES AS AT 31 DECEMBER (21 669) a The accompanying notes are an integral part of the financial statements. b Programme Support Costs income under the totals column have been netted off with the equivalent expenditure. It totalled USD 9.56 million in 2010 compared to USD 7.63 million in These internal cross charges are not shown under the overall totals column in order to reflect only external income and expenditure. 16

17 B. Statement II Interim statement of assets, liabilities, reserves and fund balances for the biennium as at 31 December 2010 (Thousands of United States dollars) Trust Fund for the Core Budget of the UNFCCC Trust Fund for Participation in the UNFCCC process Trust Fund for Supplementary Activities Trust Fund for the Clean Development Mechanism Trust Fund for the International Transaction Log Trust Fund for the Special Annual Contribution from the Government of Germany ASSETS Cash and term deposits Accounts receivable receivable Inter-fund balances receivable Service clearing account - UNDP 145 Other accounts receivable Deferred charges TOTAL ASSETS LIABILITIES Contributions/payments received in advance Unliquidated obligations Accounts payable Inter-fund balances payable 2 Service clearing account - UNDP Other accounts payable End-of-service and post retirement liabilities TOTAL LIABILITIES RESERVES AND FUND BALANCES Operating reserve Working capital reserve Reserve for allocations Cumulative surplus ( 95) End of service and post retirement benefits TOTAL RESERVES AND FUND BALANCES TOTAL LIABILITIES, RESERVES AND FUND BALANCES

18 Statement II continued Special account for UNFCCC programme support costs Special account for conferences and other recoverable costs End-of-service and post retirement benefits Total 2010 Notes a Total 2008 ASSETS Cash and term deposits Accounts receivable receivable Inter-fund balances receivable Service clearing account - UNDP Other accounts receivable Deferred charges TOTAL ASSETS LIABILITIES Contributions/payments received in advance Unliquidated obligations Accounts payable Inter-fund balances payable Service clearing account - UNDP Other accounts payable End-of-service and post retirement liabilities TOTAL LIABILITIES RESERVES AND FUND BALANCES Operating reserve Working capital reserve Reserve for allocations 28 Cumulative surplus End of service and post retirement benefits (21 669) (21 669) 14 (21 078) TOTAL RESERVES AND FUND BALANCES (21 669) TOTAL LIABILITIES, RESERVES AND FUND BALANCES a The accompanying notes are an integral part of the financial statements. 18

19 C. Statement III Interim statement of cash flow for the biennium for the year ended 31 December 2010 (Thousands of United States dollars) Trust Fund for the Special Annual Trust Fund for Trust Fund for Trust Fund for Trust Fund for the Clean Trust Fund for Contribution from the the Core Budget Participation in the Supplementary Development the International Government of of the UNFCCC UNFCCC process Activities Mechanism Transaction Log Germany CASH FLOWS FROM OPERATING ACTIVITIES: Net excess (shortfall) of income over expenditures ( 137) ( 208) ( Increase ) decrease in receivable (2 315) (Increase)/decrease in other accounts receivable (2 607) 59 ( 15) 5 (Increase)/decrease in other assets ( 39) 249 ( 18) ( 16) Increase/(decrease) in received in advance (1 086) 723 Increase/(decrease) in accounts payable 344 ( 602) ( 206) 109 Increase/(decrease) in unliquidated obligations (1 568) (5 091) ( 64) ( 19) Increase/(decrease) in end-of-service and post retirement liabilities Less: Interest income received ( 263) ( 77) ( 313) (1 303) ( 78) ( 11) NET CASH FROM OPERATING ACTIVITIES ( 140) CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES: (Increase)/decrease in inter-fund balances receivable ( 11) ( 3) ( 21) ( 64) Increase/(decrease) in inter-fund balances payable ( 33) ( 9) ( 182) ( 51) ( 6) 1 Plus: Interest income received NET CASH FROM INVESTING AND FINANCING ACTIVITIES CASH FLOWS FROM OTHER SOURCES: Savings on prior periods' obligations Refunds to donors ( 257) ( 536) CDM Prompt start reserves adjustments (3 503) NET CASH FROM OTHER SOURCES (3 401) NET INCREASE (DECREASE) IN CASH AND TERM DEPOSITS ( 118) CASH AND TERM DEPOSITS AT BEGINNING OF PERIOD CASH AND TERM DEPOSITS AT END OF PERIOD

20 Statement III continued Special account Special account for conferences for UNFCCC and other programme recoverable support costs costs End-of-service and post retirement benefits Total 2010 Notes a Total 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Net excess (shortfall) of income over expenditures (3 201) ( Increase ) decrease in receivable (Increase)/decrease in other accounts receivable 21 ( 784) (1 974) (4 691) (Increase)/decrease in other assets ( 2) 174 ( 154) Increase/(decrease) in received in advance ( 363) ( 34) Increase/(decrease) in accounts payable ( 14) ( 245) ( 473) (1 243) Increase/(decrease) in unliquidated obligations ( 20) (2 400) Increase/(decrease) in end-of-service and post retirement liabilities Less: Interest income received ( 181) ( 41) (2 267) (3 368) NET CASH FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES: (Increase)/decrease in inter-fund balances receivable ( 10) ( 2) ( 111) (1 409) Increase/(decrease) in inter-fund balances payable ( 24) ( 8) ( 312) Plus: Interest income received NET CASH FROM INVESTING AND FINANCING ACTIVITIES CASH FLOWS FROM OTHER SOURCES: Savings on prior periods' obligations Refunds to donors (1 312) (2 105) ( 46) CDM Prompt start reserves adjustments ( 1) NET CASH FROM OTHER SOURCES 85 (1 211) NET INCREASE (DECREASE) IN CASH AND TERM DEPOSITS 910 (1 060) CASH AND TERM DEPOSITS AT BEGINNING OF PERIOD CASH AND TERM DEPOSITS AT END OF PERIOD a The accompanying notes are an integral part of the financial statements. 20

21 D. Statement IV The Core budget: Interim statement of appropriations of the biennium for the year ended 31 December 2010 (Thousands of euros unless otherwise indicated) Expenditure Programmes and secretariat wide cost 2010 Disbursements obligations expenditure on budget of Unliquidated Total Balance Percentage Equivalent Approved of the total expenditure budget expenditure EUR EUR EUR EUR EUR over budget USD Programme appropriations: Executive Direction and Management 1,975 1, , % 2,523 Reporting, Data and Analysis 4,148 3, , % 4,635 Financial and Technical Support 2,588 2, , % 3,190 Adaptation, Technology and Science 2,209 2, , % 2,804 Sustainable Development Mechanisms % 468 Legal Affairs 1,558 1, , % 1,494 Conference Affairs Services 1,446 1, , % 1,850 Information Services 3,725 2, , % 4,058 Secretariat-wide Costs 1, , % 1,510 Total 19,525 15,738 1,319 17,057 2, % 22, The total expenditure of USD million shown above excludes the unrealised exchange revaluation differences of USD 2.19 million shown under the trust fund for the core budget as these are not attributable to any specific programme appropriation. These differences have arisen owing to the revaluation of assets and liabilities held in currencies other than the United States dollar as at 31 December 2010 compared to the respective balances as at 1 January

22 E. Schedule 1.1 Status of indicative to the Convention for the biennium as at 31 December 2010 (in Euros unless otherwise indicated) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittances received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Afghanistan Albania Algeria Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bhutan Bolivia Bosnia & Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Central African Republic Chad Chile China Colombia Comoros Congo

23 Schedule 1.1 (continued) receivable for 2010 Contributions received in advance as at Remittances received received in receivable as at 01 Jan 2010 in 2010 advance for Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Cook Islands Costa Rica Cote d'ívoire Croatia Cuba Cyprus Czech Republic Democratic People's Rep. of Korea (North) Democratic Rep.of Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia European Union Fiji Finland France Gabon Gambia Georgia Germany Ghana Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Honduras Hungary Iceland India Indonesia

24 Schedule 1.1 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittances received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C Iran, Islamic Republic of Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Lao People's Democratic Republic Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Madagascar outstanding from prior periods (in USD) Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia, (Federated States of) Monaco Mongolia Montenegro Morocco Mozambique Myanmar

25 Schedule 1.1 (continued) receivable for 2010 Contributions received in advance as at Remittances received received in receivable as at 01 Jan 2010 in 2010 advance for Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Namibia Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria Niue Norway Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Qatar Republic of Korea (South) Republic of Moldova Romania Russian Federation Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia

26 Schedule 1.1 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittances received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Solomon Islands Somalia South Africa Spain Sri Lanka Sudan Suriname Swaziland Sweden Switzerland Syrian Arab Republic Tajikistan Thailand The Former Yugoslav Rep.of Macedonia Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom United Republic of Tanzania United States of America Uruguay Uzbekistan Vanuatu Venezuela Viet Nam Yemen Zambia Zimbabwe Total

27 F. Schedule 1.2 Status of indicative to the Kyoto Protocol for the biennium as at 31 December 2010 (Euros unless otherwise indicated) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C Afghanistan Albania Algeria Angola outstanding from prior periods (in USD) Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bhutan Bolivia Bosnia & Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Central African Republic Chad Chile China Colombia Comoros Congo

28 Schedule 1.2 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Cook Islands Costa Rica Cote d'ívoire Croatia Cuba Cyprus Czech Republic Democratic People's Rep. of Korea (North) Democratic Rep.of Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia European Union Fiji Finland France Gabon Gambia Georgia Germany Ghana Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Honduras Hungary Iceland India Indonesia

29 Schedule 1.2 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Iran, Islamic Republic of Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Kuwait Kyrgyzstan Lao People's Democratic Republic Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia, (Federated States of) Monaco Mongolia Montenegro Morocco Mozambique Myanmar

30 Schedule 1.2 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Namibia Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria Niue Norway Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Qatar Republic of Korea (South) Republic of Moldova Romania Russian Federation Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia

31 Schedule 1.2 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka Sudan Suriname Swaziland Sweden Switzerland Syrian Arab Republic Tajikistan Thailand The Former Yugoslav Rep.of Macedonia Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom United Republic of Tanzania United States of America Uruguay Uzbekistan Vanuatu Venezuela Viet Nam Yemen Zambia Zimbabwe Total

32 Countries/Trust Funds G. Schedule 2.1 Status of voluntary for the biennium as at 31 December 2010 (United States dollars) I. Trust Fund for the core budget of the UNFCCC Voluntary received in Germany Total Trust Fund for the Core Budget of the UNFCCC II. Trust Fund for participation in the UNFCCC process Australia Belgium Canada Denmark European Union Finland Germany Ireland Japan New Zealand Norway Sweden Switzerland United States of America Total Trust Fund for the participation in the UNFCCC process III. Trust Fund for supplementary activities Australia Belgium Canada Climate Technology Initiative Denmark European Union Finland Global Environment Facility Germany Ireland Japan Luxembourg New Zealand Norway

33 Schedule 2.1 continued Countries/Trust Funds Voluntary received in III. Trust Fund for supplementary activities (continued) Romania Spain Sweden Switzerland United Kingdom United States of America Total Income received in Less: Contributions received in 2009 reallocated in 2010* ( ) Total Trust Fund for supplementary activities IV. Trust Fund for the Clean Development Mechanism Norway Total Trust Fund for the Clean Development Mechanism V. Trust Fund for special annual contribution from Germany Germany Total Trust Fund for special annual contribution from Germany TOTAL VOLUNTARY CONTRIBUTION * USD contributed by the Government of Spain was partly reallocated from the Trust Fund for Supplementary Activities to the Trust Fund for Participation in the UNFCCC Process and also applied against outstanding indicative to the International Transaction Log. USD contributed by the Governments of Norway, the Netherlands, United Kingdom of Great Britain and Northern Ireland and Germany towards the CDM prompt start was reallocated to Joint Implementation Supervisory Committee under the Trust Fund for Supplementary Activities. These balances are shown as adjustments to the reserves under statement I. USD contributed by the Government of Norway towards the CDM prompt start was reallocated to the Trust Fund for Participation in the UNFCCC Process. These balances are shown as adjustments to the reserves under statement I. 33

34 H. Schedule 2.2 Status of fees for Clean Development Mechanism (CDM) and Joint Implementation (JI) for the biennium for the year ended 31 December 2010 (United States dollars) Type of income Received in 2010 CDM accreditation process related fees CDM accreditation fees CDM methodologies fees CDM project registration fees CDM share of proceeds Total CDM fees Joint Implementation determination fees Joint Implementation verification fees Total Joint Implementation

35 I. Schedule 2.3 Status of for the International Transaction Log (ITL) of the biennium for the year ended 31 December 2010 Contributions for 2010 Fees received in advance as at Contributions outstanding from prior periods Remittances in 2010 Fees received in advance for 2011 Fees receivable as at EUR EUR EUR EUR EUR EUR Australia Austria Belgium Bulgaria Canada Croatia Czech Republic Denmark Estonia European Community Finland France Germany Greece Hungary Iceland Ireland Italy Japan Latvia Liechtenstein Lithuania Luxembourg Monaco Netherlands New Zealand Norway Poland Portugal Romania Russian Federation Slovakia Slovenia Spain Sweden Switzerland Ukraine United Kingdom Total

36 IV. Notes to the financial statements Note 1: The United Nations Framework Convention on Climate Change and its activities The permanent secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) was established in January 1996 for the following purposes: (a) (b) (c) (d) (e) (f) (g) (h) To make arrangements for sessions of the Conference of the Parties and its subsidiary bodies established under the Convention and the Kyoto Protocol and to provide them with services as required; To compile and transmit reports submitted to it; To facilitate assistance to the Parties particularly developing country Parties on request in the compilation and communication of information required in accordance with the provisions of the Convention and the Kyoto Protocol; To prepare reports on its activities and present them to the Conference of the Parties; To ensure the necessary coordination with the secretariats of other relevant international bodies; To enter under the overall guidance of the Conference of the Parties into such administrative and contractual arrangements as may be required for the effective discharge of its functions; To perform other secretariat functions specified in the Convention and in any of its protocols and To undertake any other functions as may be determined by the Conference of the Parties. Note 2: Summary of significant accounting and financial reporting policies The following are the main accounting policies of the UNFCCC: (a) Rules and procedures The financial administration of the secretariat of the United Nations Framework Convention on Climate Change is governed by the financial procedures adopted by the COP under decision 15/CP.1 in In so far as not specifically provided under these procedures the Financial Regulations and Rules of the United Nations and the United Nations System Accounting Standards Revision VIII apply. (b) Currency All amounts are expressed in thousands of United States dollars (USD) unless otherwise indicated. (c) Accounting convention The accounts are prepared under the historical cost convention modified to the extent that the cost of all fixed assets and property acquired is charged to income and expenditure statement as an expense in the year of purchase. 36