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| Updated: 19-Oct-2002 | NATO Publications |
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Although the Head of the respective NATO body is ultimately responsible for the correct preparation and execution of the budget, the administrative support for this task is largely entrusted to his Financial Controller. The appointment of this official is the prerogative of the North Atlantic Council, although the latter may delegate this task to the relevant finance committee. Each Financial Controller has final recourse to the finance committee in the case of persistent disagreement with the Head of the respective NATO body regarding an intended transaction. The Financial Controller is charged with ensuring that all aspects of execution of the budget conform to expenditure authorisations, to any special controls imposed by the finance committee and to the Financial Regulations and their associated implementing rules and procedures. He may also, in response to internal auditing, install such additional controls and procedures as he deems necessary for maintaining accountability. A major task of the Financial Controller is to ensure that the funds required to finance execution of the budget are periodically called up from contributing member countries in accordance with their agreed cost shares and in amounts calculated to avoid the accumulation of excessive cash holdings in the international treasury. The outcome of all these activities is reflected in annual financial statements prepared and presented for verification to the International Board of Auditors. The International Board of Auditors is composed of representatives of national audit institutions. It operates under a Charter guaranteeing its independence, granted by the North Atlantic Council to which it reports directly. It has powers to audit the accounts of all NATO bodies, including the Production and Logistics Organisations, and the NATO Security Investment Programme. Its mandate includes not only financial but also performance audits. Its role is thus not confined to safeguarding accountability but extends to a review of management practices in general. The figures given in Table 3 represent payments actually made or to be made during the course of the fiscal year. They are based on the definition of defence expenditures used by NATO. In view of the differences between this and national definitions, the figures shown may diverge considerably from those which are quoted by national authorities or given in national budgets. For countries providing military assistance, this is included in the expenditures figures. For countries receiving assistance, figures do not include the value of items received. Expenditures for research and development are included in equipment expenditures and pensions paid to retirees in personnel expenditures. France is a member of the Alliance without belonging to the integrated military structure and does not participate in collective force planning. The defence data relating to France are indicative only. Iceland has no armed forces. The Czech Republic, Hungary and Poland joined the Alliance in 1999.
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