RULES AND PROCEDURES FOR THE ADMINISTRATION BY UNCTAD OF TECHNICAL COOPERATION TRUST FUNDS

1. The Donor(s) shall place at the disposal of UNCTAD the amount specified in the project document and UNCTAD shall use such funds in accordance with the provision of the project document;

2. The Donor(s) shall deposit the aforementioned funds in convertible currencies of unrestricted use to an account designated by UNCTAD;

3. UNCTAD shall establish a trust fund under Financial Regulations and Rules of the United Nations for the receipt and administration of the aforesaid funds;

4. The trust fund and the activities financed therefrom shall be administered by UNCTAD in accordance with the applicable United Nations regulations, rules and directives. Accordingly, personnel shall be engaged and administered; equipment, supplies and services purchased; and contracts entered into in accordance with the provisions of such regulations, rules and directives;

5. All financial accounts and statements shall be expressed in United States dollars;

6. The trust fund shall be charged with expenditures incurred by UNCTAD in the performance of activities under the project;

7. The trust fund will also be charged with thirteen (13%) per cent of all expenditures from the trust fund, which percentage shall be charged for programme support services provided by UNCTAD in the implementation of the project(s) financed under the trust fund;

8. The trust fund will also be charged with an amount equivalent to one (1%) per cent of the remuneration or net salary of persons engaged by UNCTAD, and whose engagement is financed by the trust fund, to provide a reserve for coverage or any claim for service-incurred death, injury or illness, under the applicable United Nations regulations and rules or contracts, which reserve cannot be refunded to the donor;

9. UNCTAD shall commence and continue to conduct operations on the receipt of contributions in accordance with the provisions set out in the project document;

10. UNCTAD will not make any commitments above the amounts specified for expenditures in the project document;

11. If unforeseen expenditures arise, UNCTAD will submit a supplementary budget to the donor(s) showing the further financing that will be necessary. If no such further financing is available, the assistance provided to the project(s) may be reduced or, if necessary, terminated. In no event will UNCTAD assume any liability in excess of the funds provided in the trust fund.

12. Ownership of equipment, supplies and other property financed from this trust fund shall vest in the United Nations. On the termination or expiration of the project, the matter of ownership shall be determined in accordance with the provisions of the project document or, should the project document not contain any such provisions, then disposal of equipment shall be decided through consultations between the donor(s) and the UNCTAD;

13. Review of the activities financed from this trust fund, including joint evaluation by UNCTAD, donor(s) and recipient(s) shall be undertaken as provided for in the project document;

14. This trust fund shall be subject exclusively to the internal and external auditing procedures laid down in the Financial Regulations, Rules and directives of the United Nations;

15. UNCTAD shall provide the donor(s) with the following statements and reports prepared in accordance with the United Nations accounting and reporting procedures;

• An annual financial statement showing income, expenditures, assets and liabilities as of 31 December each year with respect to the funds provided by the donor(s);
• A final report and a final financial statement within six months after the date of expiration or termination of the project.

16. UNCTAD shall notify the donor(s) when, in its opinion, the purposes for which the trust fund was established have been realized. The date of such notification shall be deemed to be the date of expiration of project activities, subject to the continuance in force of paragraph 18 for the purposes there stated;

17. The project may be terminated by either party on 30 days' written notice to the other party, subject to the continuance in force of paragraph 16 for the purposes stated therein;

18. On termination or expiration of this project under paragraphs 16 and 17, the funds will continue to be held by UNCTAD until all expenditures including obligations incurred have been met from such funds. Thereafter, any surplus remaining in the trust fund shall be refunded to the donor(s) unless applied by them to other activities following consultations between the donor(s) and UNCTAD.