(a) Report on budgetary matters for the financial period 2023

Madam/Mister President,

The European Union and its Member States would like to thank the Registrar of the International Tribunal for the Law of the Sea for the report on budgetary matters for the financial period 2023.

We note that the total expenditure for the financial period of 2023 amounts to 100.6% of the approved amount, including a provision under part C of the Budget (Case-related costs) used to enable the Tribunal to cover the costs of three cases.

One matter of concern would be the over-expenditure at the end of the 2023-2024 budget period, which obviously could not be anticipated at the time of the adoption of the budget. In this regard we endorse the Tribunal’s endeavor in exploring options for avoiding or minimizing these costs and achieving savings.

We also note that a proposed solution is to use 2021-2022 cash surplus to finance the projected over-expenditure. The remaining cash surplus would be surrendered to the States parties in proportion to their contribution as determined for the budget period 2021-2022, provided that their contribution has been paid in full.

In conclusion the EU and its Members States would like to reiterate their support to the Registrar and their appreciation for the thorough management of the Tribunal’s budget in light of the various price increases.

Thank you, Madam/Mister President.

(b) Report of the external auditor for the financial period 2023

Madam/Mister President,

In relation to the Report of the external auditor for the financial period 2023, the European Union and its Members States note the opinion of the external Auditor that:

“[O]n the basis of the knowledge obtained in the audit, the accompanying financial statements give a true and fair view of the Tribunal’s assets, liabilities and financial position as at 31 December 2023 and of its financial performance for the period from 1 January to 31 December 2023 in accordance with the IPSAS.

In accordance with the first sentence of paragraph 322(3) of the German Commercial Code, we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements”.

Thank you, Madam/Mister President

(c) Appointment of an auditor for the financial years 2025-2028

Madam/Mister President,

Regarding agenda item 11(c), the appointment of an auditor for the financial years 2025-2028, pursuant to regulation 12.1 of the Financial Regulations of the Tribunal, the European Union and its Member States would like to point out that:

Taking into consideration that all three quotations have been found to meet the requirements for performing the audit of the accounts of the Tribunal, that the firm BDO has made the lowest of the three offers and that the Tribunal has not reported any bad experience in past collaborations with BDO, we propose that the 34th Meeting of States Parties appoint BDO as the auditor for the next four years.

Alternatively, we can also agree with the appointment of the Audit Board of Indonesia as the new auditor for the years 2025-2028, considering that they made the second lowest offer.

Thank you, Madam/Mister President

(d) Draft budget proposals of the International Tribunal for the Law of the Sea for the budget period 2025–2026

Madam/Mister President

The EU and its Member States would like to thank the Registrar for the draft budget proposals of the Tribunal for the 2025-2026 biennium. In this respect the EU and its member States would once again like to stress that the point of departure in budget discussions should be zero nominal growth and in light of this endorse the Tribunal’s approach in following this approach in its proposals.

However, the EU and its Member States note an increase of the proposed budget for 2025-2026 of approximately 3.280.000 Euros, which will lead to an increase in the assessed contributions of States Parties for the next two years. Nevertheless, we recognize that some lines of expenses, such as the judicial workload, salaries and allowances, and the development of exchange rates, are beyond the control of the Tribunal.

We continue to encourage the Registrar, in implementing the budget, to continue to make savings where possible and to ensure the optimal use of resources. These savings are to be made on the understanding that the Tribunal would continue to operate under normal circumstances.

Thank you, Madam/Mister President.