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Discussion of this issue was scheduled for the second week, but Kjell�n said that in response to inquiries by various delegations on the voluntary funds, Diallo would present the document during the first week. Substantive discussion was held during the second week.

In his introduction of document A/AC.241/52, Diallo said the report reflects contributions received by 30 November 1995, while document A/AC.241/52/Add.1 indicates the countries that have received support to attend INCD-8 and the size of the budget. Some organizations had preferred co-financing activities with the Interim Secretariat, but their contributions are not reflected in the document. Austria, Canada, Denmark, Germany, Malaysia, Norway and Switzerland contributed to the special voluntary fund after the November deadline. The Netherlands pledged approximately US$600,000. Voluntary funds were used to support participation of 67 delegations to INCD-8. Due to UN budget cuts for the biennium 1996-97, the INCD Secretariat is required to save approximately US$232,600. As a result, recruitment for a vacant position must be frozen and US$160,000 reduced from activities.

Canada urged the Interim Secretariat to include details in its financial reporting, including listing the various functions and Secretariat staff along with budget requirements. The Executive Secretary said most funding must be channeled through the UN system and activities are usually co-financed with other donors.

The INCD Chair's conclusions summarize the review of the situation as regards extrabudgetary funds in document A/AC.241/CRP.18. The document notes discussions on extrabudgetary funds at INCD-8, describes a US$600,000 pledge to the fund from the Netherlands and progress on transfer of a German pledge, recalls Canada's request for improved reporting and invites delegations to contact the Secretariat for details. The document also thanks INCD members for their generosity and stresses the importance of contributions.

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