REVISED FINANCIAL RULES
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1 UNUÍD NATIONS (NATIONS UNIES WORLD H E A L T H O R G A N I Z A T I O N / EXECUTIVE BOAPJ) Ninth Session ORGANISATION MONDIALE DE LA SANTÉ EB9/40 ^ 21 Decenber 1951 ORIGINàLt ENGLISH REVISED FINANCIAL RULES The Director-General believes that it is desirable to amend and expand the present Provisional Financial Rules of the Organization to take into account the adoption of the Uniform Financial Regulations by the Fourth World Health 1 Assembly, to provide in the Financial Rules for any changes resulting from the experience of the Organization to date, and to fornalize by the adoption of appropriate rules certain financial practices of the Organization^ Revised Financial Rules as proposed by the Director-General are annexed. These Rules are generally the same as the present provisional Financial Rules The anendments and the new Rules are as followst Rule 103*2 is required in order to provide for the disposition of the unused balances which the Health Assembly resolutions provide shall be transferred to the Assembly Suspense Account; Rules 103«3 and 103Л clarify the treatment of the retained appropriations at the end of the twelve-month period provided for in Rule 103«2j Rules and 103^6 are included in order to formalize the practice of the Organization in connexion with the treatment of the assessments of new bfembersi Rule 104о3 formalizes the present practice of the Organization; Rule 105о6 merely complements the preceding rules and fornalizes the practice already in operation; 1 Off, Rec. World Hlth Org. WHA4.50
2 EB9/4Q., page 2 Rule 106 о 2 merely confirms what is a comon commercial practice j Rule 106о5 formalizes the present practices of the Organization;. Rule 108о2 now appears in the Staff Rules and is inserted here in order that Article VIII náy contain provision for all types of advancesj Rule 109^6 formalizes the present practices of the Organization^ Rule 110 Л is one which is already- in use by certain other United. Nations Organizationsj * «..., ".... Rule 11IU1 is a minor revision of the present rule which has been expanded to bring in all of the records -which comprise the General Accounts j Rule 112»! is a,combination of the present Rules 721 and 722; Rule 114 al is the sanie as the present Rule 741 iidth s one minor revisions concerning the order of the' items and the insertion of item (c) (iii)) Article Xo This section has been exjpanded in order to provide the basic rules front which the Director-General has from time to time established detailed procedures for the handling of property; Article XI, This section has been expanded in order to provide the basic, rules from which the Director-General' has from tine to time established detailed procedures for procurementj Rule II80I is a new rule which formalizes the present practice of the Organization; Rule US о 4 is a new rule for the purpose of fixing the responsibility for the preparation of information to be presented: to the Executive Board and the Health Assemblyо
3 EB9/40 page 3 ANNEX FINANCIAL RULES ARTICLE 工 AUTHORITY AND APPLICABILITY 101<Д These Rules are established in accordance with the provisions of Fjaancial Regulation lo^l(a)^ 101 e2 The Financial Hales are applicable to all offices and; irrespective of the source of funds^ to all financial transactions of the Organization» 101»3 The Financial Rules become effective as from the date of issue. Amendments made by the Director-General become effective as from the date of issue^ 101*4 In case of doubt as to the meaning of any of the financial rules, the.director General will rule thereon*» 101c. 5 The Bijr e с tor- -Gene ral» by virtue of the authority vested in him as the chief technical and administrative officer of the Organization, is responsible to the Health Assembly for the implementation of the 101e6, Financial Rules The Dire tor General may delegate, together with authorization for re-delegation, such of his powers as he deems necessary to secure effective administration of these Rule s i, ARTICLE II - BUDGET Appropriate officials shall submit annual programmes of work and necessary estiniates to Administration and Finance in such manner and at such tines 'as may be requested^ Such programies of work and estimates submitted, by Directors of Regional Offices of the Organization will be accompanied by recommendations of the Regional Committees where applicable^ 102^3 102^4 Administration and Finance will consolidate into a single presentation the programes of work and necessary estimates as required by Article I 工工 of the Financial Regulations^ Appropriate officials will submit supplementary estimates together with explanatory statements to Administration and Finance 罐 Such supplementary estimates will be presented as far as possible in the same manner as the budgeto
4 EB9/40 page 4 ARTICLE III - APPROPRIATIONS 103о 1 The appropriations voted, by the World Health Assembly constitute an authority to incur obligations and паке payments for the purposes for which the appropriations were voted and up to the amounts so voted, but no obligations nay be incurred or payments made until allotments. have been issued in writing by tho Director-General, 103^2 Appropriations shall remain available for twelve months following the end of the financial year to which they relate to the extent that they are required to discharge obligations in respect of goods supplied and services rendered in the financial year and to liquidate any other outstanding legal obligations of the year^ The balances of the appropriations shall be transferred to the Assembly Suspense Account; The status of this account shall be reported to each Health Assembly* 103#3 At the end of the twelve-nonth period provided in paragraph 103#2 above, the- then remaining balance of any appropriations retained will be surrenderedo Any unliquidated prior year obligations shall at that time be cancelled or, vitiere the obligation remains a valid charge^ transferred as an obligation against current appropriations 103«4 The balances of the appropriations surrendered in accordance with paragraph 103«3 above shall be taken into the accounts as miscellaneous income to be used iri accordance with Article 5^2(b) of the Financial Regulations^ 103o5 The assessments on Members, required to meet the appropriations voted by the Health Assembly, will be computed on the basis of the membership of the Organization as at the last day of the current Health Assembly» 103^6 Assessments of Members joining the Organization during the current year but after the close of the Health Assembly will be dealt with in accordance with Financial Regulations 5o2(c) and ARTICLE IV - ALLOTMENTS Requests for allotments for specific purposes will be submitted in, writing to Administration and Finance Allotments will be issued in writing by Administration and Finance«104^3 Allotments will be issued for any expenditure to be incurred by the Organization irrespective of tha source of funds, including any expenditures to be made on a reimbursable basis* 104о4 Administration and Finance will ensure that allotments are issued in accordance with the appropriation resolution and the policies of the Health Assembly and the Ebcecutive Board»
5 EB9/40 page Officials to #ion allotments are issued axe responsible to the Director-General for the correct use of such allotn nts» ARTICLE V - OBLIGATIONS Only those officials designated in writing by the Director-General ara. ж authorized to incur obligations against allo-bnents, Obligations may be incurred only for the purpose indicated on the allotment and may not exceed the amount of the allotment* 105t3 No obligation shall be incurred without prior certification by Administration and Finance.that funds are available in the appropriate allotment to be charged,, Proposals to incur obligations must be made in writing and be fully documented* They must specify the purpose of the proposed expenditure and the allotment to be charged. 105 Administration and Financé will be responsible for examining the proposed obligations to ensure thati (a) funds are available; (b) the Rules and Regulations and procedures of the Organization are being observed; (c) the financial situation of the Organization will not be prejudiced; (d) the purpose of the proposed expenditure is in.the interests of the, work of the Organization» J.05«6 Administration and Finance will reject any proposal for obligation or ; expenditure not complying with the provisions of paragraph 105«5«105#7 Revisions to an obligation shall require the same treatment as the, original obligation, 105*8 The award of a fellowship shall be considered to be a legal obligation and the amount of the obligation shall be the full estimated cost çf each Individual award Notwithstanding the provisions of Financial Regulation 4 赛 3,these obligations' shall remain available for expenditure until the fellowship is completed.,,article VI - CONTROL OF EXPENDITURE 106*1 Except "where normal commercial practice so requires, no contract or purchase order shall be made on behalf of the Organisation "which requires payment in advance of the delivery of goods or performance of services 106#2 The Director'-General may, when he deems it in the interests of the Organization to do so, authorize progress payments»
6 EB9/40 page 6 10б#3 Payinènts will not be made unless supporting documents the appropriate officials confirning thati * ; * ' * ' i 106#4 Should Administration and Finance feel there Is any reason why payment of any claim should be withheld, such claimc will be refêrred to the. Dire с tor-general.... are certified by (a) services have been rendered or delivery has been oon^leted in accordance yrith the terms of the contract j.. : (b) the amount is correct and in accordance with the terns of the contracts Claims submitted by staff meitibers which are more than one year old will not normally be considered*. This provision does not ap^ly to claims for reimbursement of income tax or natters in cciinexion with settlement of insurance or pension claims^. 107Imprest ', ARTICLE VII 一 IMPREST CASH, cash advances of an amount to be fixed in each case will be made., (,-where necessary to officials designated by the Director45eneraX t 107»2 Officials to "whora an Imprest Cash advance is issued' are responsible for the advance and must at all times be in a position-to account for lt«article VIII _ ADVANCES,. X08.X,, # Travel advances may be made upon request to officials to "wfeom offieial travel authorizations have been issued». Such advances are to be used in accordance with the provisions of the travel rules and. muat be accounted for when the travel is completed» Salary advances may be given to staff members "who will be on annual leave or home leave at the regular pay day* Advances other than those authorized in Rule 100^2 above may be made to staff members in exceptional circumstances, subject to the approval of the Director-General* io9a ARTICLE IX, MANAGEMENT OF FUNDS.. i. *.,.. Administration ajid Finance is responsible for the managementj receipt ând disbursement of all funds of the Organization, Funds of the Organization will be deposited only in Banks or' Institutions designated Ъу the Director-Generali,
7 EB9/40 page 7 109*3 Administration and Finance will administer all banking accounts operated by the Organization including those opened for trust and other special purposes^ maintaining a proper cash account in which all receipts and payments shall be recorded in chronological order A separate cash account áiall be kept for each bank account, as well as for sums deposited with other institutions 109»4 Panels of signatories shall be designated by the Director-General and all cheques drawn on the Organization 1 s accounts will be signed by two officials of the appropriate panels j provided that the Diré ctor--gene ral шу 9 where he deems that adequate safe guards of the funds of the Organization are provided, or in exceptional circumstances, authorize the signature of cheques by one official only Q 109,5 No interest will be payable on sums deposited with or retained by the Organization^ Should any interest accrue on investments made on behalf of a third party, the anount of such interest will be paid only if so requested in advance and. upon such conditions as may be agreed with the _ Director-General 109*6 All securities shall be deposited either in the custody of duly- appointed bankers or in safe deposit vaults maintained by a recognized financial institution designated by the Dire сtor-gene ralp ARTICIE X - THE ACCOUNTS - 110*1 Administration and Finance is responsible' for establishing and maintaining, all official accounts of the Organizatioru Obligations will be recorded in the accounts of the financial year in, which they are incurred 110#3 Receipts will be credited to the account of the financial year in which. the remittance is received 110»4 Expenditures will be recorded in the accounts of the financial year in which they are nado<, 110*5 The accounts will comprise the general accounts,, budget accounts and treasury accounts from which the periodic financial statements will be preparedо 110*6 All accounts shall be supported by documentation to be retained as integral parts of the official accounts of the Organization» 110*7 The accounting and other financial records and all supporting documents shall be retained for such-period or periods as may be agreed by the External Auditor after which, on the authority of the Director General, such records a ad documents may be destroyed*»
8 EB9/43 Add.l page 8 ARTICLE XI - GENERAL ACCOUNTS The General Accounts "will record classified income and expenditure 9 cash at banks, investments, receivables and other assets, payables and other liabilities; the Working Capital Fund, its sub-funds, and such other trust funds or special accounts as may be established^ ARTICLE XII - BUDGET ACCOUNTS 112a The Budget Accounts will show: (i) Original appropriations voted by the Health Assembly; (ii) Appropriations after modification by any transfers; (iii) Credits, if any, other than appropriations made available by the Health Assembly; (iv) Allotments made;. (V).Obligations incurred, liquidated and outstanding^ (vi) Expendituresj (vii) Unobligated balances of allotments 112,2 Obligations and expenditures will be recorded in the accounts in accordance with a uniform system of classification established by the Director-General* ARTICLE m i - TREASURY ACCOUNTS U3«l Treasury Accounts will compriset (a) Cash accounts^ showing all receipts and disbursement of the Organization; '(b) Trust and other special cash accounts, the management of i/rfiich is subject to special treatmentj (c) Members 1 contribution records showing the amounts assessed, received and 'uncollected; (d) Investments ledger giving full details of each investment made by the Organization ARTICLE XIV - FINANCIAL STATEMENTS 1I4«1 Administration and Finance will furnish! (a) Periodic statements of cash on hand; (b) Periodic statements of budgetary status shovdngi (i) Allotments madej. (ii) Obligations incurred and liquidated; (iii) Expenditures; (iv) Unobligated balances
9 ibv/4ü pege 9 (с) Periodic special statenients showingi 4(d) Outstanding contributions 多 Status of advances to the Working Capital Pundj Ihe operations and financial position of the Working Capital Fund; The position of other special funds. As early as possible each year a detailod balance sheet as at the 31st December immediately preceding. In addition to this balance sheet there shall be produced: (i) (ii) summarized statement of income and expense; budget state.nent showing appropriations voted, allotments. approved and expenditure made; (iii). statement of obligations as at 31 December for which reserves vjdll.be established, such reserves to remain available for a further tv/elvg months these obligations will include orders for goods or services which have been accepted in vjriting for shipment or delivery by 31 Decembor or for which there exists written evidence that shipment has been effected prior to and including 31 December. (iv) (V) (vi) (vii) (viii) iyrl)/ rv\i.1\)/ii/!\l/i/f\\i\)/vstatement of outstanding legal obligations as at 31 December which will be a charge to the appropriations of the succeeding year; statement of trust and other special funds; statement of the Working Gapital Fund and its sub-funds showing the establishment and composition thereof, advancea made therefrom and the cash available; statement of both stores and cash losses which have occurred during the year indicating how these have been dealt with in the accounts; statement of ex gratia payments. ARTICLE XV - PROPERTY T h e cost of all property acquired other than real property will be immediately charged as an expense. 115*2 Property records will be maintained of all real property, non-expendable and expendable supplies and equipment^ however acquired and from whatever source^ containing full details An annual physical inventory will be taken as at 31 December of each year of all assets, supplies and materials in hand» A copy of this inventory will be furnished to the External Auditor 115#4 The Directors-General may declare property to be surplus if it is of no further use to the Organization
10 EB9/40 рзи^е «5 Surplus property shall be sold for the bust possible return to the Organization except: (a) (b) when the exchange of surplus property in partial payment for new articles will afford an advantage to the Organization over the sale of surplus property arid separate purchase of new articles; when the destruction of Ше surplus or unserviceable material will be more economical, is required by law, or when the confidential nature of the material so warrants; (c) when the best interests of the Organization will be served by disposal by gift or at nominal prices to a non-profit organization» 115«6 Ihe proceeds from the sale of property shall be taken into account as miscellaneous income } except that where an article is traded in as part payment for a new article, the trade in value will serve to reduce the charge to expense incurred under Rule 115ti» 115*7 Goods and services may be provided to Governments, specialized agencies, and other international organizations on a reimbursable or reciprocal basis on such terms and conditions as may be prescribed by the Director- Generals ARTICLE ХУ1 PROCURELENT Contracts for the purchase of services, supplies,eq.uipment or other requirements shall Ъе entered into for. and on behalf of the Organization only by du37 authorized officials All purchases and contracts of over $1,000 shall be made by-advertizing, except when otherwise authorized by the Director4}eneral«116.3 Invitations for tenders shall be advertized in such fashion as to permit full and free competition. 116*4 All bids shall be publicly opened at the time and place specified in the invitation to bid. U6e5 Contracts shall be awarded to the lowest bidder except that where conditions attaching to the lowest bid make its acceptance undesirable^ the Director-General may authorize the acceptance of a bid other than the lowest*, "Where the interests of the Organization so require } the Directors-General may authorize the rejection of all bids#
11 EB9/43 Add.l page 11 ARTICLE XVII INTERNAL CONTROL Administration and Finance is responsible for establishing and maintaining an adequate internal control of the financial transactions and such other operations of the Organization as may be determined by the Direсtor-General ARTICLE XVIII - VJORKING CAPITAL FUND The Financial Rules also govern credits made available from the Working Capital Fund for unforeseen and extraordinary e^enses^ t The term "Unforeseen Expenses" means expenses arising from, or incidental to, the carrying out of a programme in accord with the World Health Assembly approved policies, vdiich expenses were not foreseen when the estimates were made The term "Extraordinary Expenses" means expenses for items or objects outside the scope of the budget estimates^ that is to say, outside the programme on which the estimates were based» 118«4 Administration and Finance shall be responsible for the preparation of information on the status of all commitments under the resolutions relating to unforeseen and extraordinary expenses to be submitted to the Executive Board and shall prepare the supplementary estimates required in connexion theremth for submission to the Health Assembly
12 UNITED NATIONS NATIONS UNIES WORLD HEALTH ORGANIZATION EXECUTIVE BOARD Ninth Session ORGANISATION MONDIALE DE LA SANTÉ EB9/40 Corr.l 21 January 1952 ENGLISH ONLY REVISED FINANGIAI; RULES Tho following corrections should be made in the to document EB9/4ÛI Rule 116,4 should be amended to reçid as follows? "All tenders shall be publicly opened at the time and place specified in the invitation to bid," Rule 116 «5 should be amended to read as follows j "Contracts shall be awarded to thf lowest tender except that vàiere conditions attaching to the lowest tender make its acceptance undesirable^ the Director-General may authorize the acceptance of a tender other than the lowest IThere the interests of the Organization so require л the Direct or-gene ral nay authorize the rejection of all tenders
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