Following examination of the financial reports by the Sub-Committee on Financial Matters, the Executive Committee decided:
(a) To require the implementing agencies to indicate disbursements against Executive Committee approvals and to indicate savings or deficits for all completed work programme and investment project approvals;
(b) To offset savings and interest reported against approvals given at the present Meeting;
(c) That cost savings resulting from investment project implementation should not be permitted to be offset against cost overruns, except for work programme activities where:
(i) No contingency fees are included;
(ii) The amounts involved total no more than 5 per cent of the value of the project;
(iii) The amounts to be offset fall within the overall financial envelope of the implementing agency;
(iv) The work programme concerned was approved by the Executive Committee before 1 January 1995;
(d) To allow UNDP to offset US $153,773 of deficits against project savings that had been realized during UNDP project implementation;
(e) To request the Secretariat, together with the implementing agencies, to adopt the mandatory format found in Annex II to the present report for reporting progress and financial information to the Executive Committee. This uniform format had been accepted to provide for greater ease of cross-referencing; consistency and use of standard reporting periods; clarification of terms; greater ease of tracking the funds through the various stages of project implementation; information on percentage of funds disbursed; and reduced duplication between implementing agencies’ progress reports and financial reports.