| (Approved by Council on April 18, 2006)
Applicability
These Regulations shall govern the financial administration
of the North Pacific Marine Science Organization (PICES), hereinafter
referred to as the “Organization”.
Financial Year
Regulation 1
The financial year of the Organization shall be from January
1 to December 31.
Terms
Regulation 2
| (i) |
The term “host State” means the State in
which the Secretariat of the Organization is located; |
| (ii) |
the term “currency” and all related terms used in these
Regulations or in any decision of the Council, such as budget, funds,
contributions, and accounts, shall mean the currency of the host State,
unless specified otherwise by the Council. |
Budget
Regulation 3
| (i) |
The Executive Secretary shall prepare and submit to
the annual meeting of the Council a draft budget and justification,
comprising estimates of income and expenditures of the Organization
for the ensuing financial year. At the same time the Executive Secretary
shall prepare a forecast budget and justification for the subsequent
financial year, and shall transmit the draft budget and forecast budget
estimates to all Contracting Parties at least 60 days before the opening
of the annual meeting; |
| (ii) |
the draft and forecast budgets shall be divided into sections (e.g.,
office expenses, travel, meeting costs, publications), and shall be
accompanied by such information as may be required by a Contracting
Party or deemed necessary or desirable by the Executive Secretary; |
| (iii) |
the draft budget shall include a statement of the financial implications
for subsequent financial years; |
| (iv) |
the Council shall consider the observations and conclusions of
the Finance and Administration Committee prior to adoption of the
budget; |
| (v) |
at each annual meeting, the Council shall consider and adopt its
budget for the ensuing financial year. The forecast budget for the
subsequent financial year shall be considered by the Council, but
not adopted. |
Appropriations
Regulation 4
| (i) |
The appropriations adopted by the Council shall constitute
an authorization for the Executive Secretary to incur obligations
and make payments for the purposes and up to amounts for which the
appropriations were adopted; |
| (ii) |
appropriations shall remain available for one year following the
end of the financial year to which they relate to the extent that
they are required to discharge obligations incurred during that financial
year. At the end of this period, any unliquidated prior year obligation
shall be canceled, or, where the obligation remains a valid charge,
transferred as an obligation against current appropriations, unless
the Council decides otherwise; |
| (iii) |
the Executive Secretary may make transfers of up to 10% of appropriations
between sections (e.g., office expenses, travel, meeting costs, publications).
The Chairman of the Council may authorize the Executive Secretary
to make transfers of not more than 20% between sections. All transfers
shall be reported by the Executive Secretary to the next annual meeting
of the Council; |
| (iv) |
the Chairman of the Council, after consultations with a Delegate
from each of the Contracting Parties, may authorize expenditures from
the Working Capital Fund for unforeseen and extraordinary expenses
necessary to the good conduct of the business of the Organization. |
Provision of Funds
Regulation 5
| (i) |
Each Contracting Party shall make contributions to the
annual budget calculated in accordance with a scheme to be adopted
by the Council; |
| (ii) |
following approval of the budget for a financial year, the Executive
Secretary shall send a copy thereof to each Contracting Party notifying
them of the required contributions. Contributions shall be considered
due as of the first day of the financial year to which they relate; |
| (iii) |
a Contracting Party will be considered to have met its financial
obligations for a financial year when its annual contribution for
that year has been paid in full; |
| (iv) |
the contribution to the Organization of a Party becoming a Contracting
Party by accession during the course of a financial year shall for
that financial year be a part of the annual contribution proportional
to the number of complete months remaining in the financial year from
the date it became a Contracting Party. Such contributions shall be
considered due within thirty days of becoming a Party. |
Funds
Regulation 6
| (i) |
For the purposes of accounting for the income and expenditures
of the Organization, a General Fund and a Working Capital Fund shall
be established. The Organization may also establish other funds to
further its interests; |
| (ii) |
contributions paid by Contracting Parties to cover
regular expenses of the Organization shall be credited to the General
Fund; |
| (iii) |
the Council shall determine the required level of the
Working Capital Fund, and revise it as appropriate. The Working Capital
Fund may be increased by miscellaneous income, pursuant to Regulation
6(vi) and any cash surplus in the General Fund at the close of the
financial year following the annual meeting, to the extent that any
such surplus is not required to meet outstanding commitments in terms
of Regulation 4(ii). The amount of the Working Capital Fund shall
be reviewed by the Council at each annual meeting and may be revised
effective on the first day of the ensuing financial year; |
| (iv) |
funds available in the Working Capital Fund may be used: |
| |
(a) |
temporarily to the extent necessary to finance appropriations
pending receipt of annual contributions by Contracting Parties; |
| |
(b) |
to cover unforeseen and extraordinary expenses as provided by Regulation
4(iv); |
| |
(c) |
for special expenses approved by the Council that will contribute
significantly to the program of the Organization. |
| (v) |
the Council may designate some portion of an excess
in the Working Capital Fund as income in the budget of the ensuing
year and use such amounts to reduce contributions of Contracting Parties
in the ensuing financial year; however, if the actual excess at the
close of the financial year is less than the amount estimated, then
the Executive Secretary shall reduce the said appropriation or transfer
to the extent necessary to prevent the Fund from falling below the
amount established pursuant to Regulation 6(iii), and shall adjust
said annual contributions to compensate for the reduced appropriation
or transfer. The Executive Secretary shall promptly inform the Council
of such actions; |
| (vi) |
where contributions are received from new Contracting
Parties after the commencement of the financial year and such funds
have not been taken into account in formulating the budget, such contributions
shall be credited to the Working Capital Fund; |
| (vii) |
the Relocation and Home Leave Fund shall be used, to
the extent appropriated by the Council as part of the budget decision,
to pay relocation expenses of appropriate new employees and their
dependents to the seat of the Secretariat and for removal after the
period of employment has ended, and for home leave for internationally
recruited staff and their dependents, in accordance with established
rules and practices. The Council shall determine the required level
of the Relocation and Home Leave Fund, and revise it as appropriate.
The Relocation and Home Leave Fund is to be financed first from the
levy in lieu of taxes from Secretariat staff, then tax refunds and
then annual appropriations if necessary. The amount of the Relocation
and Home Leave Fund shall be reviewed by the Council at each annual
meeting and may be revised effective on the first day of the ensuing
financial year; |
| (viii) |
the Trust Fund is established to facilitate the participation
of a broad spectrum of scientists in activities of the Organization.
Contracting Parties and other donors may make voluntary contributions
to the Trust Fund consistent with Regulation 7, upon concurrence of
the Executive Secretary. The Trust Fund is administered by the Executive
Secretary, subject to guidelines established by Council. The Executive
Secretary shall report at each annual meeting on the condition of
the Trust Fund, including the contributions and applications received
and their disposition; |
| (ix) |
any advance payment made by a Contracting Party to the
Organization or any Contracting Party credit shall be carried as a
credit for the respective Contracting Party or Parties in the Working
Capital Fund until such Contracting Party or Parties informs the Executive
Secretary of any disposition it desires of any such credit or credits. |
Fund-raising
Regulation 7
All fund-raising activities and voluntary contributions shall be consistent
with the policies, aims, and activities of the Organization, as established
by the Council.
Miscellaneous Income
Regulation 8
| (i) |
All income, other than contributions to the budget under
Regulation 5, advances referred to in Regulation 6(ix), voluntary
contributions referred to in Regulation 8(ii), and interest on the
amounts held temporarily in interest-bearing deposits, shall be classified
as miscellaneous income and credited to the appropriate fund; |
| (ii) |
voluntary contributions in excess of annual contributions by Contracting
Parties and voluntary contributions offered by other than Contracting
Parties may be accepted by the Executive Secretary, subject to Regulation
7, and credited to the appropriate fund. |
Custody of Funds
Regulation 9
| (i) |
The Executive Secretary shall designate a bank(s) or
financial institution(s) insured by the host State’s Deposit
Insurance Corporation in which the funds of the Organization shall
be kept. The Executive Secretary shall inform the Council of the name
and branch of the bank(s) or financial institutions; |
| (ii) |
(a) |
The Executive Secretary may make short-term investments
of funds not needed for the immediate requirements of the Organization.
Such investments shall be restricted to securities and other investments
issued under Government guarantee or interest bearing accounts operated
by a bank where the Organization holds an account. The details of
the investment transactions and income derived shall be reported in
the documents supporting the budget; |
| |
(b) |
with regards to funds for which use is not required for at least
12 months, longer-term investments may be authorized by the Council
provided that such action is consistent with the terms under which
the funds were lodged with the Organization. |
Internal Control
Regulation 10
| (i) |
The Executive Secretary shall: |
| |
(a) |
cause all payments to be made on the basis of supporting
vouchers and other documents which ensure that the goods or services
have been received and that payment has not previously been made; |
| |
(b) |
designate staff members who may receive funds, incur
obligations, and make payments on behalf of the Organization; |
| |
(c) |
maintain and be responsible for internal financial control
to insure: |
| |
|
- |
the regularity of the receipt, custody, and disposal
of all income and other financial resources of the Organization; |
| |
|
- |
the conformity of the obligations and expenditures with the appropriations
adopted by the Council; |
| |
|
- |
the economic use of the resources of the Organization. |
| |
(d) |
obtain appropriate bonding for staff members designated
under sub-paragraph (c) as well as for the Executive Secretary. |
| (ii) |
no obligation shall be incurred until allotments or
other appropriate authorizations have been made in writing under the
authority of the Executive Secretary; |
| (iii) |
the Executive Secretary, after full investigation, may
propose to the Council the writing off of assets, provided that the
external auditor (referred to in Regulation 13) so recommends. A statement
of such assets shall be included in the annual accounts; |
| (iv) |
(a) |
For all purchases and contracts for equipment and office
supplies exceeding an amount set by the Council, the Executive Secretary
shall solicit written proposals by advertisement or direct request
for equipment, supplies, and other requirements from at least three
persons or firms able to supply the equipment, supplies, or other
requirements, except where the Executive Secretary has certified that
only a single supplier exists; |
| |
(b) |
the lowest bidder shall be awarded the contract, except
where the Executive Secretary, following consultation with the Chairman,
has certified that this procedure would not be in the best interests
of the Organization. |
Accounts
Regulation 11
| (i) |
The Executive Secretary shall ensure that appropriate
records and accounts are kept of the transactions and affairs of the
Organization and shall do all things necessary to ensure that all
payments out of the Organization’s resources are correctly made
and properly authorized and that adequate control is maintained over
the assets of, or in the custody of, the Organization and over the
incurring of liabilities by the Organization; |
| (ii) |
the Executive Secretary shall submit to the external
auditor (referred to in Regulation 13), not later than ninety days
immediately following the end of the fiscal year, statements for that
fiscal year showing: |
| |
(a) |
the income and expenditures; |
| |
(b) |
the status of appropriations, including: |
| |
|
- |
the original budget provisions; |
| |
|
- |
the appropriations as modified by transfers; |
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|
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any other income; |
| |
|
- |
the amounts charged against these provisions and other income. |
| |
(c) |
the financial assets and liabilities of the Organization; |
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(d) |
details of investments; |
| |
(e) |
proposals for writing off of assets under Regulation
9(iii). |
| |
These financial statements shall be prepared in a form
approved by the Council after consultation with the external auditor;
|
| (iii) |
Appropriate separate accounts shall be kept for all
established funds. |
Salaries and Expenses
Regulation 12
| (i) |
The Council shall adopt a salary scale and benefits
for the Executive Secretary and the staff based, to the extent possible,
on the salary scale, position classification system, and benefits
of the public service of the host State. The Council shall review
annually, and adjust when deemed appropriate, salaries and benefits
of staff members in the light of performance and changes in the cost
of living; |
| (ii) |
moving expenses of new and departing permanent staff members shall
be paid by the Organization, generally in accordance with practices
of the host State; |
| (iii) |
travel expenses incurred by the Secretariat staff while on Organization
business shall be paid by the Organization to the extent possible,
in accordance with practices of the host State regarding travel expenses
of its public service; |
| (iv) |
travel and other expenses incurred by the Chairman and the Chairman
of the Science Board, while on Organization business, shall be paid
by the Organization. Other representatives of the Organization shall
be paid, for travel and other expenses, while on official business
approved by Council; |
| (v) |
salaries and wages of employees shall be assessed amounts estimated
to be equal to liability for income taxes of the host State for any
employee exempt from income taxes by reason of employment by the Organization.
The amount which accrues from such assessments shall be credited first
to the Relocation and Home Leave Fund and then to the Working Capital
Fund to defray expenses of the Organization; |
| (vi) |
salaries and wages of employees who are citizens or permanent residents
of the host State shall be assessed a levy based on the Host State’s
graduated federal income tax rates and calculated on the lesser of
the salaries and wages paid to such employees and the taxable income
computed under the Host State’s tax laws. The amount which accrues
from such assessments shall be credited to the Working Capital Fund
to defray expenses of the Organization. |
External Audit
Regulation 13
| (i) |
The Council shall appoint an external auditor from a
reputable auditing firm. The auditor may be consulted on the introduction
or amendment of any financial regulations and procedures and on detailed
accounting methods, on all matters affecting auditing procedures and
methods, and on any other financial matter affecting the Organization; |
| (ii) |
the external auditor, or persons authorized by the auditor,
shall be entitled at all reasonable times to full and free access
to all accounts and records of the Organization relating directly
or indirectly to the receipt or payment of money by the Organization,
or to the acquisition, receipt, custody, or disposal of assets by
the Organization. The external auditor, or persons authorized by the
auditor, may make copies of or take extracts from any such accounts
or records; |
| (iii) |
the external auditor shall examine the financial statements
submitted by the Executive Secretary under Regulation 11(ii) and conclude
this examination within six weeks of their receipt. The external auditor
shall conduct this examination in conformity with generally accepted
auditing standards and shall report to the Council on all relevant
matters including: |
| |
(a) |
whether, in the auditor’s opinion, the statements
are based on proper accounts and records; |
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(b) |
whether the statements are in agreement with the accounts and records; |
| |
(c) |
whether, in the auditor’s opinion, the receipt, expenditure,
and investment money and the acquisition and disposal of assets by
the Organization during the year have been in accordance with these
Regulations; |
| |
(d) |
observations with respect to the efficiency and economy of the financial
procedures and the conduct of business, the accounting system, internal
financial controls, and the administration and management of the Organization. |
| (iv) |
the Executive Secretary shall provide the external
auditor with the facilities required for the performance of the audit; |
| (v) |
the Executive Secretary shall provide to the Contracting
Parties a copy of the audit report and the audited financial statements
within 15 days of their receipt; |
| (vi) |
the Council shall, if necessary, invite the external
auditor to attend discussions on any item under scrutiny and consider
recommendations arising from the auditor’s findings; |
| (vii) |
the Council shall, following consideration of the audited
annual financial statements and audit report submitted to the Contracting
Parties under Regulation 13(v), signify its acceptance of the audited
annual financial statements or take such other action as it may consider
appropriate. |
General Provisions
Regulation 14
| (i) |
In considering matters which have financial or administrative
implications, the Council shall have before it an evaluation of those
implications from the Executive Secretary; |
| (ii) |
the Executive Secretary is empowered to delegate to other Secretarial
staff members such powers concerning financial matters as may be deemed
desirable; |
| (iii) |
the Organization may take out suitable insurance with a reputable
financial institution against normal risks to its assets; |
| (iv) |
these Regulations shall be effective as of the date of their approval
by the Council and may be amended by the Council from time to time
in accordance with the Rules of Procedure; |
| (v) |
in case of doubt as to the interpretation and application of any
of the foregoing Regulations, the Executive Secretary is authorized
to rule thereon after consultation with the Chairman of the Council. |
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