1.ThereportoftheBoardofAuditors isreproduced insection IIabove. The observations oftheExecutive Director onthepointsraised bytheAuditors are givenbelow. Forconvenience ofreference, theparagraph numbers ofthereportof theBoardofAuditors areshownalongside theheadings oftheExecutive Director's observations. Budgetary control (audit, para.5andparas.11-23) 2.Ascorrectly indicated bytheAuditors (paras. 14-15), theorganization asa wholehasnotincurred anybUdgetover-expenditure. Actually, atthe1985session oftheUNICEFExecutive Board,thesecretariat inpresenting therevised budget estimates forthebiennium 1984-1985 didnotrequest anysupplementary allocation offunds,whichimplies thatexpenditure forthebiennium isprojected tobewithin theoriginal estimates asapproved bytheExecutive Boardin1983. 3.Thecontinuing concern oftheUNICEFAdministration forstrictbudgetary control hasresulted overtheyearsinaconsiderable levelofeffectiveness inthe existing systemofmonitoring, reporting andevaluating budgetary performances. In fact,inthelast23yearsUNICEFhasneverexceeded thetotalbudgetallocations approved byitsExecutive Board. Duringthisperiodthebudgetperformance has maintained anaverage of90-95percentofthetotalapproved budget. 4.TheAuditors' comments refertothecontrol ofindividual budgetlines(or objects ofexpenditure) incertain offices atacertain periodoftime.Inthis respect, theAdministration hadalready pointed outin19811/thattheprocedure reauiring priorapproval byheadquarters fortheadministration ofindividual budgetlineswasnolongerconsidered costeffective andthatstreamlining of procedures wouldhaveincreased efficiency, effectiveness andreduced costs. 5.Atpresent, allotment advices areissuedtovarious offices andservices with instructions thatthetotalallotted cannot beexceeded. Withinthetotal, sums areallotted bymajorcategories ofexpenditure asapproved byUNICEF's Board. Also,theindividual category totalscannot beexceeded without headauarters' authorization. Withincategories individual budgetlinescanbeadministered locally without priorauthorization byheadquarters, theguiding concept beingthat anyexcessinaspecific budgetlineshould beoffset bycorresponding savings in another linewithinthesamemajorcategory. Iftherearesignificant changes (over5percentoforiginal estimates), headquarters should benotified for general managerial guidelines. 1/Official Records oftheGeneral Assembly, Thirty-seventh Session, Supplement 5B(A/37/5/Add.2). -16-6. fu ex re 7. fo au is in 8. Au ce th we Ad te in in esl pUJ ne( Si po th be su of th in wi wh th of Ad6.Budgetallotments arerevised onlytoreflect majorauthorized changes tothe fundsallotted toaspecific. officeorservice (forexample, largevariation in exchange rates,changes inlocalsalaryscales, reduction ofpriorallotted sumto realize compulsory savings, etc.). 7.Theseallotments alsoinclude forinformation purposes theestimated amount forinternational staffcostsrelated tothatoffice andservice, although the authority andresponsibility toadminister allcostsrelated tointernational staff iscentrally controlled byheadquarters, whererecruitment andappointment of international staffiscentralized. 8.Inthiscontext andwithreference tothespecific pointsraised bythe Auditors, thefollowing comments aremade: (a)Expenditure forinternational staffcosts(audit, paras.16-18) Asmentioned above,allcostsrelated tointernational professional staffare centrally controlled byheadquarters. Thereistherefore noallotment offundsfor thesepurposes toanyofficeorservice through UNICEF. Attheendof1984there wereconsiderable savings inthiscategory ofpostsandtherefore the Administration considers thattheapproved budgethasbeenfullyrespected bothin
**Analysis**
The text appears to be discussing the financial management and budgetary control of an international organization, specifically the United Nations Children's Fund (UNICEF). The language used is formal and technical, indicating that the text is likely a report or document related to the organization's financial operations. The content focuses on the administration of funds, budgetary control, and the management of international staff costs, suggesting that the category should be related to financial management or international development.

**Category**
Health, International humanitarian aid and relief