VII. FINANCIAL STATUS OF THE CHAMBER

The financial situation of the Human Rights Chamber in 1999 improved in comparison with its financial situation in 1998. Due to a lack of funds at the end of 1998, the Chamber suspended the payments of salaries and travel expenses of the members of the Chamber. In contrast, by the end of 1999, the Chamber was able to meet all its financial obligations during the year as well as cover those expenses which had been incurred towards the end of 1998, but not paid.

Nevertheless, the financial situation of the Chamber remained vulnerable. In March 1999 the Chamber was placed in the position of having to request a temporary loan from the OSCE in the amount of DM 200,000 to cover basic costs. The Chamber had been promised financial contributions from international donors to cover its costs in 1999, but there were substantial delays in the actual payment of these funds resulting in a serious cash flow problem.

In 1999 the Chamber received donations totalling DM 3,189,714. This amount represented 77% of the Chamber's planned budget for that year. This constituted an 11% increase over the previous year in which the Chamber received only 66% of its planned budget. The Chamber was able to function adequately with the funds it received in 1999 but only after limiting some planned activities such as employing additional staff, staff training and purchasing certain equipment. A summary of the Chamber's expenses for 1999 is attached to this Report as Annex I.

The government of Bosnia and Herzegovina allocated DM 200,000 to the Human Rights Chamber from its 1999 State budget. This amount accounted for just 5% of the Chamber's planned budget. As of 31 December 1999 the Chamber had received only half that amount. Despite its obligation under the Dayton Peace Agreement, the State still has not demonstrated a serious commitment to providing adequate funding for the Human Rights Chamber. As in previous years, it was only through the voluntary contributions of international donors that the Chamber was able to function throughout 1999. A list of the governments and organisations that made financial contributions to the Chamber in 1999 is attached to this Report as Annex H.

The Chamber's finances were audited in July 1999 by an auditor assigned by the French Government. The audit revealed that the financial transactions of the Chamber for the period December 1998 through July 1999 were conducted without any substantial errors and that they sincerely displayed the financial situation of the Chamber as of 20 July 1999.