Welcoming Remarks at the Advisory Body on Administrative and Financial Matters (ABAF) 60th Session

Dear Chairperson,

Distinguished Members of the ABAF,

I would like to extend to all of you a very warm welcome to the Sixtieth Session of the ABAF.

I also wish to thank all the members for your important service to the OPCW and to welcome Mr Jason Loeffler as a new member of the ABAF.

Congratulations on your appointment by the Executive Council at its 111th Session in March this year.

Among the important items on your agenda this week are a review of the 2025 Financial Statements for the OPCW and for the OPCW Provident Fund, a presentation by the External Auditor, the 2025 Programme Performance Report, the status of the OPCW's 2026 financial performance to date, and the work of the Office of Internal Oversight.

Given the balance of work between the ABAF sessions in June and in July, the update on Human Resources matters will be taken up at the July session.

This will include the results of a staff engagement survey on the Secretariat's handling of the transfer to the United Nations Joint Staff Pension Fund and the transition of the Provident Fund to in-house management.

Turning to substantive matters:

As of the end of May 2026, the overall rate of cash inflows is 3% lower compared to the previous year-to-date position and is at its lowest level in seven years.

To avoid the need to draw from the Working Capital Fund, as was last required in October 2025, it is vital that States Parties pay their assessed contributions for the year in a timely manner to ensure that the OPCW can meet its obligations and deliver the Organisation's Programmes.

Given the current level of receipts, a drawdown on the Working Capital Fund may be required during July 2026.

Although the Working Capital Fund is currently at its fully funded level of 8.3 million euros, if needed, it can only sustain the operational requirements of the OPCW for around six weeks.

I am pleased to report that the audit of the OPCW's 2025 Financial Statements was completed during April and May this year by the Comptroller and Auditor General of India, and the auditors provided their opinion - free of qualifications - on 31 May, the deadline defined by the Financial Rules and Regulations.

The auditors will join this meeting tomorrow to provide a presentation on their work.

As was previously the case, the presentation is made in advance of the finalisation of the long-form report, which is expected to be completed in the coming weeks.

The ABAF's review of the long-form report will therefore again be scheduled for the July session. The Technical Secretariat appreciates the auditors' efforts to provide their opinions on the financial statements on time.

At the current session, the ABAF will review past budget and financial performance. The budget implementation rate for 2025, the last year of the previous biennium, was 97%, with Chapter One at 93% and Chapter Two at 100%.

The overall budget implementation rate for the combined years of the previous biennium, for 2024 and 2025, was 94%, with Chapter One at 90% and Chapter Two at 97%.

In preparing the budget for the current biennium, and in order to maintain assessed contributions at the same levels as those in 2025, the cost base was not adjusted to reflect inflation.

As the Secretariat must of course operate within its approved budget, it is important to emphasise the impact of travel cost inflation caused by increased fuel prices, and the implications of any changes to the distribution of industry inspections that the Secretariat may be asked to accommodate into and through 2027.

We appreciate the continuing strong financial support of States Parties, despite global fiscal challenges, especially through assessed contributions, but also via substantial voluntary contributions.

The Programme and Budget for the 2026-2027 biennium was approved by the Conference of States Parties in November 2025 by consensus.

This was a very positive signal for the OPCW and its vital mandates. It is also an encouragement for the Secretariat to continue its efforts to deliver its programmes with maximum efficiency.

As usual, we shall return to budgetary matters at the July Session of the ABAF, when we shall present proposals for the Revised 2027 Budget.

We anticipate that the main consideration will be to ensure continued resourcing to finalise the outstanding matters relating to the OPCW's mandates in the Syrian Arab Republic, as well as to provision for recapitalization of depreciated assets and the 6^th Review Conference.

We look forward to supporting ABAF in your important deliberations, as you prepare your advice on these and other key topics.

Once again, welcome back to The Hague - both in person and virtually for this ABAF meeting.

Before I turn the floor back to you, Chairperson, I wish to take this moment to thank you and all the members once again for your hard work, professionalism and dedication.

As you may be aware, this will be my last ABAF meeting as my tenure at the Organisation is coming to an end in July.

It has been a pleasure and honour to have the opportunity to engage with you at ABAF meetings, and to witness the important contributions you make to the work of the Organisation.

I wish you all a fruitful session, and I am confident that Chris, Adam, and the whole Administration team will give you all the support you may need.

Thank you for your kind attention.