27th Meeting of the Ramsar Standing Committee --

Audited accounts for FY 2001 and status of the Reserve Fund

Audited accounts for FY 2001

The attached report of the auditors does not raise any particular issues concerning the accounts for Fiscal Year 2001. The fiscal year was closed with a small deficit, mainly due to the exchange loss, as explained in Note 4 of the auditors' report. The provision for bad debt also contributed to this deficit as some Contracting Parties did not pay their 2001 contribution during the year.

The Reserve Fund

As shown in the annex, at the closure of Fiscal Year 2001, the reserve limit established by the COP is SFR 264,000. This amount is now kept in a special sub-account and the reserve funds are placed in a long-term deposit. There is CHF 116,696 in excess of the reserve limit. Given the big fluctuations of the US Dollar vis-à-vis the Swiss Franc during the year 2002, it would be wise to keep this amount as a provision for an eventual exchange loss.

FIDUCIAIRE SOFIGER S.A.
RUE DU JURA 6 - C.P. 30 - CH-l196 GLAND
TÉLEPHONE 022 364 13 17. FAX 022 364 1781
E-mail: sofiger@bluewin.ch

Report of the statutory auditors to the
Contracting Parties of the Convention
on Wetlands of International Importance
Especially as Waterfowl Habitat (Ramsar, 1971)
Gland

As auditors of the Convention appointed under the "Terms of Reference for the Financial Administration of the Convention, Kushiro Conference", we have audited the accounting records and the financial statements for the year ended December 31, 2001

The financial statements are the responsibility of the Secretary General. Our responsibility is to express an opinion on these financial statements based on our audit. We confirm that we meet the legal requirements concerning professional qualification and independence.

Our audit was conducted in accordance with auditing standards promulgated by the profession, which require that an audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in the financial statements. We have also assessed the accounting principles used, significant estimates made and the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the accounting records and the financial statements comply with the requirements of the Convention.

We recommend that the Standing Committee approve the financial statements submitted.

Fiduciaire Sofiger S.A.

G. Bovet
(Auditor in charge)

Gland, September 9, 2002

Enclosures: Financial statements
(Balance sheet, statement of income and expenditure and notes to the financial statements)

BUREAU OF THE CONVENTION ON WETLANDS OF INTERNATIONAL IMPORTANCE ESPECIALLY AS WATERFOWL HABITAT (RAMSAR, 1971) (NOTE 1)

BALANCE SHEET AT DECEMBER 31, 2001 (NOTE 2)
(in Swiss Francs)

30.08.02

BUREAU OF THE CONVENTION ON WETLANDS OF INTERNATIONAL IMPORTANCE ESPECIALLY AS WATERFOWL HABITAT (RAMSAR, 1971) (NOTE 1)

STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED DECEMBER 31, 2001
(in Swiss francs)

Bureau of the Convention on Wetlands of International Importance especially as Waterfowl Habitat (Ramsar, 1971)

Notes to the financial statements 2001

Note 1 - Activity

The "Convention on Wetlands of International Importance especially as Waterfowl Habitat (Ramsar, 1971)" (the Convention) is an intergovernmental treaty for the conservation and wise use of wetlands. Under the treaty the Contracting Parties agree, inter alia, to:

• promote the conservation and wise use of wetlands through international co-operation
• implement the conservation and wise use of wetlands within their territory
• encourage research and exchange of data regarding wetlands
• endeavor to establish and manage reserves for wetlands and to increase waterfowl populations on wetlands
• promote training of competent personnel in the field of wetlands research, management and wardening.

The Convention's Bureau (secretariat), which is not a separate legal entity, is constituted under Article 8 of the convention and administered as an independent unit by and from the offices of IUCN (The World Conservation Union), Gland, Switzerland. The Bureau's functions include the provision of administrative, technical and scientific support to the Contracting Parties, maintaining a List of Wetlands of International Importance and notifying Contracting Parties of additions to that List.

Note 2 - Summary of significant accounting principles

Contributions from Contracting Parties
These contributions are accounted for on an accrual basis.

Voluntary contributions and other income
Voluntary contributions and other income are accounted for on a cash basis.

Expenditure
The Bureau accounts for expenditure on an accrual basis.

Unrestricted Funds
Unrestricted funds are funds that are not subject to any externally imposed restrictions upon their use. The Secretary General is empowered by the Standing Committee of the Convention to designate certain of these funds for project purposes.

Restricted use Funds
Restricted use funds are donated funds subject to externally imposed restrictions as to their use.

Currency transaction
The Bureau's accounting records are maintained in Swiss Francs. Assets and liabilities in other currencies are translated at exchange rates ruling at the year-end. Items of income and expenditure in other currencies are included in the financial statements at the exchange rate prevailing at the transaction date.

Membership Receivables - Bad Debts Calculation
The method of calculating the provision for bad debts was unchanged in comparison with last year; "probable" debtors were calculated at 50%, "possible" debtors were calculated at 25% and all other unpaid contributions were calculated at 5%. Two debtors (Armenia and Yugoslavia) were calculated at 90%.

Fixed assets
Fixed assets, comprising office furniture and computer equipment, are depreciated over their estimated useful lives, as follows:

• Office furniture 7 years
• Office equipment 4 years
• Computer hardware/software 3 years.

Reserve fund
In accordance with the decision of the 6th meeting of the Conference of the Parties establishing the reserve fund, the entirety of the core funds balance is attributed to the reserve fund. Contributions relating to periods prior to 1994 are accounted for through the reserve fund.

Note 3 - Project Expenditure

Note 4 - Exchange gain/(loss)

There was no exchange gain this year, but a net loss of CHF 37,888.00. Exchange gains/losses directly attributable to projects are dealt with under project expenditure.

Note 5 - Accrued Leave

In the year 2000 CHF 67,147 was accrued for this purpose and we feel that it reasonably covers this potential liability.

Note 6 - Recovered Expenditures and Other Income

Before July 2000 IUCN and Ramsar had their own umployment scheme to cover the eventual unemployment benefit for an employee who leaves the Bureau and who does not find another employment. After one year of countribution to the Swiss Unemployment scheme, all employees are now fully covered by the Swiss scheme. Therefore the Bureau has recovered its Unemployment Provision. The bureau also recovered some expenditure provisions as well reimbursements of some expenses.

Reserve Fund

STATEMENT OF ACCOUNT AT 31.12.2001
(in Swiss Francs)

(1) Includes exchange gains of CHF 355,155.00

(2) COP6 established a reserve limit 1/12 of the current year approved budget