May 2022 India Statement Agenda 2 Rep Ext Auditor PBC2022
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IAEA Board of Governors
Programme and Budget Committee (May 9, 2022)
Agenda Item No. 2
The Agency’s Financial Statements for 2021, including the Report of the External Auditor
Statement by Ambassador Jaideep Mazumdar
Mr. Chairperson,
Good Morning.
We support the observations made by the distinguished Ambassador of Morocco on behalf of G-77 and China under this Agenda item and would like to add the following remarks in our national capacity.
The informal Workshop on Financial and Administrative Matters organized by the Secretariat on 08th April 2021 helped in clarifying many of the technical issues in items under discussion today and I would like to thank the Secretariat for that.
We commend the Audit Board of the Republic of Indonesia for their professionalism in the conduct of the audit of the Agency’s activities and note with satisfaction the “unqualified opinion” on the Agency’s financial statements.
The comparative analysis provided of financial statements of 2021 and 2020assists in arriving at a good appreciation of variances taking place under various parameters. On the positive side, we note with satisfaction that the Regular Budget Fund (RBF) experienced a high utilization rate of 99.7% during 2021, while the overall utilization rate of the operational portion of the Regular Budget was also 99.7%, highlighting the consistency in the utilization of available resources even during a difficult pandemic year.
On the negative side, although the Agency has been making efforts to collect assessed contributions, we note the necessity for augmenting these efforts, considering that receivables have now increased to 81.2 million Euro representing as much as 21.4 % of the 2021 Regular Budget assessment. We urge all Member States, to pay their assessed contribution to the regular budget, in full and on time.
We also note with concern the overall increase in Agency’s employee benefit liabilities from the After Service Health Insurance which remains fully unfunded and sensitive to changes in actuarial assumptions. The very significant growth in these liabilities that has resulted in a highly adverse net assets position of the Regular Budget Fund is a matter of concern. We urge the Secretariat to focus on addressing this serious issue and consult regularly with Member States about possible measures to be taken.
The External Auditor has made a number of observations and recommendations for improving the Agency’s financial practices. Our delegation would like to stress the importance of these recommendations and encourage the Secretariat to give these careful consideration as well as to those recommendations pending from previous years. We expect the Agency to take appropriate measures for their timely implementation while keeping Member States informed.
Mr. Chairperson,
With these comments, we take note of the documents under this agenda item and endorse the decision to transmit them to the General Conference.
I thank you.
