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FIFTH ITEM ON THE AGENDA

Appointment of External Auditor

1. The appointment of the External Auditor and the Deputy External Auditor for the Organization is governed by article 35 of the Financial Regulations, which reads as follows:

1. An external auditor, who shall be the Auditor-General (or officer holding the equivalent title) of a member State or another person of high competence, shall be appointed in the manner and for the period decided by the Governing Body.

2. The external auditor shall not be removed during his tenure of office except by the Governing Body.

3. The Governing Body may, if necessary, appoint a deputy external auditor to assist and replace the external auditor in case of need.

2. At its 262nd Session (March-April 1995), the Governing Body appointed the holder of the office of Comptroller and Auditor-General of the United Kingdom as External Auditor and the holder of the office of Deputy Comptroller and Auditor-General of the United Kingdom as Deputy External Auditor for a period of four years from 1 April 1996.

3. The Director-General believes that it would be appropriate to reappoint both the External Auditor and the Deputy External Auditor for a further period of four years as from 1 April 2000, thus providing for the audit of the accounts for two further complete two-year financial periods. Both holders of the offices of Comptroller and Auditor-General and Deputy Comptroller and Auditor-General have indicated their willingness to serve as External Auditor and Deputy External Auditor respectively, if appointed.

4. The Committee may wish to recommend to the Governing Body that the holder of the office of Comptroller and Auditor-General of the United Kingdom and the holder of the office of Deputy Comptroller and Auditor-General of the United Kingdom be appointed as External Auditor and Deputy External Auditor respectively for a period of four years from 1 April 2000.

Geneva, 10 February 1999.

Point for decision: Paragraph 4.