XI.3 The Deputy Comptroller of UNESCO then introduced the financial statements of the World Heritage Fund for 1996 as well as the provisional accounts for 1997 as of 31August 1997 of which the Committee took note.
One delegate drew the attention of the Committee to the fact that the cash at bank of the Fund was in excess of US$ 5 million and considered that this balance was unnecessarily blocked. He was informed that this balance should be reduced over time through the implementation ofthe increased budget. The Delegate of Italy stated that he considered the staff costs should not be included in the budget of the World Heritage Fund.
Several delegates raised the subject of the low implementation rate, particularly for preparatory assistance. The Director informed the Committee that the latest figures provided by the Administration Unit of the World Heritage Centre showed an improved implementation rate (almost 81.5% for one budget line in Chapter III).
XI.4 Whilst noting that the overall presentation of the work plan and budget was clearly improved, the delegates recalled that the external auditor reported little progress had been made in the implementation of the recommendations of the financial audit. The reply by the Deputy Director of the Centre on the rigidity of procedures as well as on the follow up of operations were satisfactory: to date US$ 300,000 of old obligations had been liquidated and a further amount of US$ 200,000 would be liquidated or spent before 31 December 1997. A detailed chart of accounts and a database for monitoring of financial operations of the World Heritage Fund had been elaborated. Finally, the Centre is continuing with the implementation of the other recommendations of the External Auditor.
XI.5 Several interventions concerned improving methods to increase the number of assistance requests that would better correspond to the needs of States Parties. Better communication, greater use of preparatory assistance, as well as co-operation with the States Parties in programme development were suggested. Delegates agreed that greater flexibility was required in the use of the allocated amounts for preparatory assistance.
In the same way, delegates raised the matter of Member States of UNESCO who had not ratified the Convention. Various solutions were made to yet encourage them to ratify to the Convention, including participation in regional and sub-regional meetings, creation of networks, etc. It was decided that all these questions should be discussed by the Consultative Body.
XI.6 With regard to the budget ceiling, delegates requested that earmarked and nonearmarked funds should be included. After discussions on the amount of funds available, the amount of non-earmarked funds and the capacity of implementation by the World Heritage Centre, a revised budget ceiling amounting to US$ 4, 137,083 was approved by the Committee for the budget of the World Heritage Fund for 1998. This new budget ceiling was based upon that proposed by the World Heritage Centre, to which were added US$ 226,333 relating to earmarked activities and US$ 200,000 relating to non-earmarked activities, as well as US$ 350,000 for the meeting on Global Strategy in Western Africa, originally foreseen for 1999.