PRESS RELEASE : Report of the External Auditor, Audit Committee and Financial Report – UK statement to the OSCE [July 2024]

The press release issued by the Foreign Office on 18 July 2024.

Ambassador Holland thanks Austria’s Court of Audit for their professional work as External Auditor, and underlines the importance of the urgent adoption of the 2024 Unified Budget.

Thank you, Madam Chair.

The United Kingdom thanks the Secretary General, and representatives of the Austrian Court of Audit and the Audit Committee for their presentations today and their comprehensive reports.

The External Auditor and Audit Committee reports provide an important overview of the OSCE’s financial health, and a useful oversight of the organisation’s administration and internal controls. We recognise that the audit assessments have been made in the context of significant ongoing challenges, including the impact of Russia’s illegal and unjustified war of aggression against Ukraine, the continued non-agreement of the OSCE Unified Budget, and the gap prior to the appointment of the current External Auditor.

The UK welcomes the unqualified opinion of the External Auditor that the OSCE’s financial statements for 2023 presented fairly the financial position of the organisation. We appreciate the professional work of the Austrian Court of Audit in this role, particularly having taken this on at such short notice. We hope you will be able to consider an extension beyond September.

Madam Chair, the Reports and presentations this morning further underline that approval of the Unified Budget remains one of the most pressing issues facing this organisation. As, the Financial Report states, the lack of budget approval is continuing to damage the reputation of the OSCE, and the lack of an updated and approved Post Table hampers the organisation’s ability to deliver its mandate.

The United Kingdom deeply regrets that successive years of non-agreement of budgets have left the OSCE’s finances in such a parlous state – constrained by monthly allotments and uncertainty, amid high levels of inflation and rising costs. It is now almost three years since the agreement of the 2021 Unified Budget – which was itself agreed 8 months late. Such unacceptable delays are primarily due to political will, and the use of the budget as a political tool by some participating States.

The UK again urges the swift adoption of the 2024 Unified Budget, and for participating States to engage constructively, pay their arrears, and ensure the OSCE is able to carry out its work effectively in line with the OSCE principles we have all signed up to.

We commend the OSCE executive structures for your ongoing work to adapt to the financial challenges facing the organisation, and for helping to maintain continuity of business. We also appreciate the leadership and tireless efforts of successive Chairs-in-Office – North Macedonia and Malta – towards reaching agreement.

Thank you again to the Austrian Court of Audit and the Audit Committee for the comprehensive reports. As always, the UK looks forward to engaging constructively on the report recommendations.

Thank you, Madam Chair.